Creating a Strategic Plan for your firm

Creating a Strategic Planfor Your Firm

Prepared by:

kc chia & noor, chartered accountants 2

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Learning Objectives:

At the end of the session, you should be able to:understand the steps in strategic planning;create a strategic plan;implement a strategic plan; andcommunicate some of the strategic planning ideas with the management.


Basic Questions to Answer •What is a strategic plan?What

•Why it is important?Why

•Who are involved?Who

•When will be the timelines?When

•Where are we now? / Where do we want to go?Where

•How to go there?How


(1874 - 1965)


Strategic Planning Planning is to look into future.Planning ensures alignment of• Focus • Consensus• Accountability• ResourcesPlanning forms the basis and framework of other actions for an organization.

setting goals and

expectations

Achieving goals and organizational

objectives


Planning assists you toidentify opportunities, analyze problems, answer challenges,establish priorities and needs, allocate, strategize and align resources andestablish: • policies and procedures,• objectives and standards of performance,• forecasts and budgets, • programs and schedules.


Strategic Planning: BackgroundThe key driver for all other plans (example: Evaluation Plan, Sustainability Plan, Marketing Plan etc.,) • by articulating basic concepts of vision, mission, goals, objectives and activities. Strategic planning determines • where an organization is going (vision);• how it's going to get there (direction) and • how it'll know whether if it got there or not

(evaluation).


Organizational Values and Culture: An Example

Core values comprise professional competence, commitment, integrity, respect, dedication, delivery and teamwork.

We believe that by putting all these core values into practice, they should yield long term benefits for our clients, partners, employees and business associates alike.

Teamwork Delivery

Dedication

Respect

Integrity

ProfessionalCompetence

Commitment

Core Values

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Organizational Structure: An Example

Partner

Partner

Partner Partner ManagerPartner

MANAGEMENT COMMITTEE

AUDIT

M. PARTNER

ADVISORYTAX

Manager ManagerManager

Manager

Manager

Manager Supervisor

Assist.

SupervisorSupervisor Supervisor

Assistant

Assistant

Assistant

Assistant Assistant

Assistant

Assist.

Assist.

Assist.

Assist.

Assist. Assist.

Assist.

Assist.

Assist.

Assist.

Assist.

Assist.

Secretary.

Secretary.


Strategic Planning: Background

Other factors to consider:The specific process (the abnormal);Planning period (timelines); andSpecific stakeholders participation (consensus).


Strategic Planning


Strategic Planning Five Basic Questions:

Where are we now? (The Situation)How did we get there? (Our Momentum)Where are we going? (The Direction)Where should we be going? (Desired Direction)How will we get there? (The Strategic Plan)

John N. Bailey. "Strategic Planning: Lead Your Association With a Plan for Tomorrow“. Leadership magazine, Spring 1981, pp. 26-29


Strategic PlanStrategic planning• envisioning a desired future; and• translating this vision into goals or objectives.

A strategic plan• detailing a sequence of steps to achieve them.• providing the necessary information and guidance

(road map) that enabling the company - to run with greater efficiency and - to reach a new height with greater potential.


Steps in Crafting a Strategic Plan

Basic Components:Vision and mission;SWOT analysis;Timelines and goals;Resources and capabilities (Marketing, Production, HR, Technology, R & D, Finance) and other Needs assessment;Objectives, strategies and bottom liners; andEvaluation.


Elements of Strategic PlanDifferences and Definitions:

VISION – the utopian outcome - focus on the OUTCOME, not the action that will bring you there.

For Example:• becoming a leading firm in the region;• outperforming competitors, • enhancing core values • promoting entrepreneurship and industrial linkage; and • providing a conducive and dynamic working environment.


MISSION: focuses on the ACTIONS that you will take to attain your vision.

For Example:• rendering quality service• creating and adding values to services rendered. • providing quality staff training and HR development• targeting high end advisory assignments

Elements of Strategic Plan


SWOT Analysis:S – Internal strengths (Aspects that an organization can bring success) - the dedicated work force; - technical expertise and competence; and - good brand or reputation,W – Internal weaknesses (Characteristics that need to be strengthen)

- high staff attrition rate; - escalating costs; - too many ‘rush’ jobs under tight schedules; and

- quality compliance problems.


SWOT Analysis: (cont’d)

O – External opportunities (Events, relationships etc., that we can take advantage of) - tighter regulations, more compliance;- foreign direct investments;- “Halal”(Muslim) listing counters and products;- PRC’s “One belt, one road” initiative; and- cross border referrals

• via GGI global alliance;• outsourcing to other countries with lower costs


SWOT Analysis: (cont’d)T – External threats (Possible roadblocks)- many new regulatory requirements;- intensive competition, fee under-cutting;- talent acquisition and retention;- political instability and economic downturn; - changes in social values of younger generation; and- rapid changes in technology.

** Strategic maneuver – the science or art, skill and ability of an organization to turn weaknesses and threats into strength and opportunities for its advantages!!

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What CAs/ CPAs think about the future


GOALS: are outcome based which support your mission and vision.

OBJECTIVES: are the strategies help to achieve the goals – there may be many objectives in support of each goal.

• Goals should be SMART = Specific, Measurable, Achievable, Realistic, Time-bound.

• There may be many objectives for each goal.• Every objective should have a bottom-liner and a

timeline!


• SPECIFICClear, Concise, Tangible- Your statement should answer where, when, who, what, which and why

• MEASURABLEDollar, Time, Volume, Experiences - How much or how many?

• ACHIEVABLEGoals should be challenging, but not impossible

• REALISTICGoals must be challenging but realistic- Something YOU are willing and able to work towards

• TIME-BOUNDGoals should have a time limit - By when YOU want to achieve your results?

Steps to a Strategic PlanStep-by-step Guide for Developing a Strategic Plan

Begin steps here

Specific Actions

1. Vision and Mission Ensuring the planning team members share a common vision of what kind of world it wants to work toward and how it will do so with the organization or stakeholders.

Discussion on social, economic and ecological values. Discussion on individual needs and organization/community/global needs. Agreement on which values are shared, and articulation of a statement that embodies these values in the context of the organization or stakeholders. Agreement on means to pursue this vision .

2. SWOT analysis A review of the organization or project team’s/ Strengths, Weaknesses, Opportunities and Threats

Write down a list for each SWOT element. Consider the lists in the context of what to

be aware of when planning out goals tor the plan.

3. Setting a plan timeline and goals Select the goals you want to pursue along the chosen timeline.

Decide if you are doing a one, two or three year plan (or six months or five year…..).

Brainstorm goals (i.e. accomplishments). Prioritize which goal will go into the plan.

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Steps to a Strategic PlanStep-by-step Guide for Developing a Strategic Plan

4. Marketing, Production, HR, Technology, Finance , R & D and other Needs Assessment Determine what gaps exits in the organization, the company’s capacity both human and material resources.

Assess finance, technological, logistical and resource needs

Assess management / staff competency and training needs

Plan for needed supplies and resources

5. Determine objectives and bottom liners Determine which objectives you need to plan to reach each goal and assign a bottom liner.

Plan out the means you will pursue (objectives) for accomplishing your goals Select one person to ‘bottom line’ following through on each of the objectives Put deadlines on each objective

6. Evaluation Have an evaluation mechanism to ensure the plan is being implemented and can be changed if need be.

Develop evaluation strategies, techniques and criteria

Implement evaluation and integrate results into future planning

Assign a strategic plan ‘whip’ to bottom line these evaluations

[ If not, go back to step No. 1 ] Resource: Strategic Planning Guide , Sierra Youth Coalition’s Sustainable Campuses Project with modifications

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Strategic Planning Outline:OrganizationVISION(Dream, dream, dream……..)

MISSION(What, Who, How?)

S.W.O.T. Strength Weaknesses Opportunities ThreatsS: Aspects that the organization will bring success !!!W: Characteristics that can be strengthenO: Events, relationship etc., that we can take advantage of T: Possible roadblocks

What How Much Who WhenGOALS - SMART(An end, state long/short term)

OBJECTIVES(Means of achieving goals)


Strategic Planning Outline: (cont’d)OrganizationASSESSMENT Time Resources Capabilities Engage

OthersDevelop ResourcesIs it Reasonable?

- MARKETING- PRODUCTION- TECHNOLOGY- HR- FINANCE- R & D- OTHER NEEDSTIMELINES(Period covered)

BOTTOMLINES(What are the targets? Are they Attainable?)

EVALUATION(See what we have done?)

Time Methodology Mechanism Feedback Fine-tuneStrategies

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Timeline/Gantt ChartSample Timetable

Quarter 1 Quarter 2 Quarter 3 Quarter 4 Quarter 5

Goal 1(e.g. Installation of a new computer system)

Formation of an IT tender/

technical committee,and engage

external consultants

Conduct feasibility

study, evaluate software

upgrading and staff training requirements

Call for tender,

approve the tender by the

committee and sending

staff for training

Installation of hardware and networking, trial run for

both hardware and software

and fine-tuning

IT operations begin to run full scale on

the new computer IT

system

Goal 2

Goal 3

Goal 4

Goal 5


Review of Strategic Plan Process

A BUSINESS APPROACH


Final Reviews

Define Strategies

Strategic Matrix

Review Inputs

SWOT Analysis

Gather Inputs

Review of Strategic Plan Process


Review of Strategic Planning Process

Build on StrengthSeek High Leverage OpportunitiesInvolve your whole firmLeverage TechnologyLeverage Relationships (guan-xi)


Important Notes for your teamThinking strategically Understanding the direction and foundation of the firmEngaging in the firm’s future as a whole teamAligning and on the same pageEngaging and participatingFocusing on the future

Leadership to engage and align your firm and to engage and motivate your other partners and personnel in the meaningful work of your firm ; thereby enhancing “buy-in” and discretionary effort s for a thriving and high performing organization.

kc chia & noor, chartered accountants

RecapitulationIn Chinese/Japanese, the word “Crisis” consists of two characters i.e. 危 (‘wei’) means threats or danger and 机 (‘ji’) opportunities.

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Two Scenarios:(i) 危

机If threats or danger are over opportunities, there will be an imbalance, i.e. a crisis ; and

(ii) 危机 If threats or danger and opportunities are in alignment or equilibrium , there will be new opportunities ensuing the crisis.

The Five Tasks of Strategic Planning

1. Purpose: Developing Vision, Mission and Strategies

2. Strategic Analysis: Internal and External Environment

3. Elaborating Strategies, Setting Objectives, Deciding Course of Actions.

4. Implementing and Executing Strategies5. Evaluating Performance, Reviewing the

Situation and Initiating Corrective Actions


Question &

Answer

Thought Leaders - Recommended Reading

Steven R. Covey: The Seven Habits of Highly Effective People

J.Nicholas De Bonis: Value-Based Marketing for Bottom-Line success

Peter Drucker: Managing for Results

Robert Kaplan: Balanced Score Card

John P. Kotter: Leading Change

Philippe Haspelagh: Managing for Value

Michael E. Porter : Competitive Advantage

Jack Welch: King of Shareholder Value

Creating a Strategic Plan for your firm

Business

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