1

2

Purpose

Discuss “Strategic Planning” in burst mode (less than 20 slides).

Outline “What to do”

Discuss Companies who did not have critical items in their Strategic Plan

Examples:

Aerospace - Fairchild Republic

Semiconductor - Mostek

Automotive – Chrysler

Development Planning Process Model

Studies Planning

Programming

BudgetingImplementation

EvaluationResearches

Situation Analysis

ProjectPreparation

GoalsObjectivesTargets

PoliciesStrategies

Program Project

Identification

Investment Programming

Budgeting

Implementation and Monitoring

Evaluation

and Plan Update

Feedback Loop

3

It has 8 stepsIt has 8 steps1. Situational analysis

2. Goal/ objective/ target setting

3. Policy/ strategy formulation

4. Program/ project identification

5. Investment programming

6. Budgeting

7. Implementation and monitoring

8. Evaluation and plan update

4

Situational AnalysisSituational Analysis

- require the conduct of survey and research studiesrequire the conduct of survey and research studies

- the survey calls for the gathering of socio cultural, demographic, economic, physical and - the survey calls for the gathering of socio cultural, demographic, economic, physical and

natural data and information in the environmentnatural data and information in the environment

- shall also be undertaken indicating root and present performances, programs and - shall also be undertaken indicating root and present performances, programs and

projects, manpower resources, budget and buildings, facilities and equipment projects, manpower resources, budget and buildings, facilities and equipment

- the data are analyzed and projected in order to identify issues and parameters, - the data are analyzed and projected in order to identify issues and parameters,

constraints and problems, and resources and opportunities which are used as inputs in constraints and problems, and resources and opportunities which are used as inputs in

planning.planning.

5

Setting of goals, objectives and targetsSetting of goals, objectives and targets

- a goal is a broad statement of an image of the future

the organization seeks to achieve.

- objectives which emanates from the goal, refers to

medium-range expectation which is pursued to satisfy

the goal

- target is the most specific statement of purpose which

is measurable and achievable.

6

Policies and StrategiesPolicies and Strategies

- framed, more specific policy statements and - framed, more specific policy statements and

strategies formulated for each area of strategies formulated for each area of

concern to as social, economic, physical, concern to as social, economic, physical,

political and developmental administrative political and developmental administrative

aspects for a particular period.aspects for a particular period.

7

Program and Project IdentificationProgram and Project Identification

- in order to effectively channel resources to - in order to effectively channel resources to

development programs and projects development programs and projects

considered strategic in the over all attainment considered strategic in the over all attainment

of goal.of goal.

- prioritization of program and project is done - prioritization of program and project is done

through the conduct of feasibility studies to a through the conduct of feasibility studies to a

listing of priorities viewed as responsive to listing of priorities viewed as responsive to

the development needs of the people.the development needs of the people.8

BudgetingBudgeting

- the costing of identified priority program and projects.- the costing of identified priority program and projects.

ImplementationImplementation

Actual carrying out of funded priority Actual carrying out of funded priority programs and projects by concerned programs and projects by concerned

offices and individuals of the offices and individuals of the organization or the sectoral agency of organization or the sectoral agency of

government government

9

Planning PremisesPlanning Premises

1. Plan to plan

2. Expectations of major outside interest

3. Expectations of major inside interest

4. The data base

5. Evaluation of the environment and the company

10

Planning Premises are divided into two types:Planning Premises are divided into two types:

Plan-to-plan and gathering substantive information needed in the

development. - substantive planning premises consist of 4 sub-steps of data gathering

known as corporate appraisal or credit.1. Collection of expectations of major outside interest groups, namely, society, community, stockholders, customers, suppliers and creditors.2. Generation of expectation of major inside interest group like managers, employees and staff.3. Collection of data about the past performances of the company, its current situation and the future.4. Analysis of strengths and witness of the organization and threats and opportunities in the environment.

11

Implementation of the programsImplementation of the programs

5 - Covers the entire range of managerial activities

such matters as invitation, compensation,

management appraisal and control processes.

12

Formulating PlansFormulating Plans

6. Master and program strategies

7. Medium-range programming and programs

8. Short-range planning and plans

13

Implementation and ReviewImplementation and Review

9. Implementation of plans

10. Review and evaluation of plans

14

Gap AnalysisGap Analysis - identification of gaps between the current

organizational performance and the desired future

- to facilitate allocation of resources and identify possible trouble spots

15

Contingency PlanningContingency Planning

- developed as a response to unanticipated factors in the planning process

- initiation of several tactical and operational plans

16

- information from DM214 Strategic Planning Course

Implementation and Implementation and Continuous Improvement Continuous Improvement

Derive tactical and operational plans

Make / buy / obtain resources

Implement

Continuous improvement / formative evaluation

Determine effective and efficiency. Revise / improve as required

17

18

Examples of Strategic Plan

• See workbook for what was missing in the three sample strategic plans that led to the demise of these companies.

• Questions and Answers Session.

• If you can’t put your plan down on a piece of paper where are you? Nowhere

19

About :

• Strategic Consulting, including business plan strategic plans & sales strategy development for high technology products, acquisitions and partnership.

• Proposal support, critique, evaluation and generation• Failure analysis of thin film and thick film resistors, integrated circuits and board level problems• Electronic Design engineering and software support• Technology review and research for consumer electronics, internet devices, solar energy, MEMS,

nanotechnology, microelectronics, SMT, and health care software products.