STRATEGIC PLANNING

STRATEGIC PLANNING

Smith, Bucklin & Associates, Inc.

For the

BOARD FOR CERTIFICATION INPEDORTHICS

March 5 - 6, 1998

March 59:00 - 10:00 Review of survey results

10:30 - 11:00 Review strategic planning process

11:00 - 12:00 Internal - external “SWOT” analysis; identification of “strategic issues”

12:00 - 1:00 Working lunch “visioning the organization”

1:00 - 2:00 Developing a “mission statement”

2:00 - 2:45 What are the “principles” of the organization

2:45 - 3:45 Identification and definition of “goals”

3:45 - 5:00 Outline of strategic objectives

Two Day Strategic Planning Meeting for BCP Board


March 69:00 - 12:00 Tactics -- Essential components of a business plan

(prioritization & cost analysis)

12:00 - 1:00 Working lunch -- What would need to be done to implement such a plan (returning to SWOT analysis)

1:00 - 4:00 Scenario One -- Adapt current structure

Scenario Two -- Create new entity

Scenario Three -- Merge with another organization

Scenario Four -- Strategic alliance with another organization

What would be required; strengths and weaknesses

4:00 - 5:00 Developing a game plan

- What are priority action ideas

- “What if” scenarios

Two Day Strategic Planning Meeting for BCP Board


Formulation of Strategy is Done

• Not only by looking inward at what one desires

but also by

• Looking outside to see what others are doing which affects your future


Through a Strategic Plan, an Organization says to the World:

• This is who we are and

• This is what we want to be and

• Here is how we plan to fulfill our dream - our mission


Analysis of the Environment (S.W.O.T.)

• S trengths

• W eaknesses

• O pportunities

• T hreats


“Strategic” Issues


Those issues which will have

• Long-term implications for the association

and

• Are most central to the organization’s mission

External Environmental FactorsThreats and/or Opportunities?


• Technological / Scientific• Legislative / Regulatory• Economic• Sociologic• Professional / Educational• Other

Internal Environmental FactorsStrengths and/or Weaknesses?


• Organizational Structure• Organizational Culture• Organizational Resources

(Human & Fiscal)• Staff and Management Philosophies

Strategic Objectives


Strategic objectives identify the “visions” of the organization or the major

accomplishments that the organization seeks to achieve over a period of time

(e.g., five years).

Visioning


• Requires letting go of preconceived notions about the organization

• Allows creative and strategic thinking about what the future could be like for the organization

• Exercise: Describe the newspaper headlines which would appear about the association five, ten, or twenty years into the future

A Strategic Plan (1)


When completed, a Strategic Plan should contain:

• Mission Statement: A succinct statement which sets fourth the organization’s purpose & philosophy. Although brief, the mission statement will specify the fundamental reason(s) for the organization’s existence; establish the scope of the organization, and identify its unique characteristics.

• Goals: A limited number of statements which translate the association’s mission into major policy directions.

• Principles: Statements which identify the philosophical guidelines for all of the organization’s activities.

A Strategic Plan (2)


• Strategic Objectives: Statements which identify the “visions” of the organization or the major accomplishments that the organization seeks to achieve over a specified period of time.

In addition, the Strategic Plan should be accompanied by a business or operational plan which should specify how the Strategic Plan will be accomplished, identifying time lines, resource requirements, anticipated results, responsible parties, and evaluation measures.

Critical Components of Strategic Planning


• Environmental Analysis - External: Analysis of Trends - Internal: Organizational Structure / Culture - Constituents: Stakeholders, Challengers /

Competitors / Allies - S.W.O.T.Analysis (Strengths, Weaknesses,

Opportunities, Threats)

• Think Strategically - Go beyond the boundaries

• Involvement, Support and Commitment of Leadership Staff Other Stakeholders

Mission Statement


The Concept of a Mission:• Specifies the fundamental reason(s) for the

organization’s existence• Identifies the organization’s unique

characteristics• Provides overall direction for the organization

acts as foundation for the development of general and specific objectives as well as program ideas

Key Dimensions of a Mission Statement


• General versus specific• Reflective of distinctive competencies and

characteristics• Establishes the proper scope for

- Constituents- Other “publics”

• Three Key Inputs:- External inputs- Constituent need analysis inputs- Internal inputs

Mission Statement


A Mission Statement Should be Succinct and Set Forth the Organization’s Purpose

and Philosophy.

Principles


Principles Identify the Philosophical Guidelines for the Organization’s

Activities.

Principles


Concept of Principles:• Identifies the values held by the constituents in implementing the organization’s activities• Establishes the philosophical guidelines upon which all initiatives of the organization will be based• Provides the basis for assessing the organization’s strategic objectives and operational plans

Key Dimensions in Drafting Principles:• Captures the essence of the organization’s philosophy• Sensitive to constituent needs and expectations

Goals


The Goals Specify How the General Policy Directions of the Organization’s

Mission Will be Carried Out.

Goals


Concept of a Goal:• Translates the organization’s mission into major policy directions• Provides clarification of the mission statement • Provides the best basis for the development of strategic objectives and operational plans• Provides a basis for assessing the major priorities of the organization

Key Dimensions of Goals


• Clarifies the overriding purpose(s) of the organization• Number is limited and focused on the unique characteristics of the organization• Broad statements toward which the organization will direct its activities to fulfill its mission

Strategic Objectives


Concept of a Strategic Objective:• Translates the organization’s goals into specific policy directions• Provides clarification of the organization’s goals• Provides a basis for the development of detailed operational plans• Provides a basis for assessing the accomplishments of the organization

Key Dimensions of Strategic Objectives


• Supports the mission and goals of the organization• Responds to one or more of the planning issues• Realistic with respect to the external environment as it exists today and as it is likely to change over the next five years• Realistic with respect to the internal environment and the resources of the organization• Internally consistent; i.e., no objective is inconsistent with another objective

Business Plan


An organization’s strategic plan should be accompanied by an action or business plan.

Concept of a Business Plan:• Details a plan of action to accomplish the organization’s strategic plan• Defines the roles and responsibilities of Staff Board Members Other Volunteers• Identifies resource requirements• Identifies time lines for actions to be accomplished • Projects results• Provides evaluation measures

Key Dimensions of a Business Plan


• Specific versus general• Key Inputs:

- Leadership / board- Staff- Volunteers- Other constituents

• Responds to each of the strategic objectives• Realistic with respect to current and potential resources (human and fiscal)

Why Do Strategic Plans Fail?


• Devoted to fixing current problems rather than addressing the future of the organization• Lacks the support and commitment of the leadership and/or the constituents• No one responsible for implementation or evaluation• Operational plan is unrealistic, without focus or direction• Does not inspire leadership or constituency to move the organization forward

The Essence of Strategic Planning


Repositioning the Organization for a Better Future.

Repositioning an Organization for a Better Future


Requires decisions on- Major structural changes- Major programmatic changes

All of which are highly linked to- Financial and human resources

Strategic Planning Constantly Asks:


• “What Shall We Do?”

• “How Shall We Decide?”

• “Where Shall We Put Our Resources?”

Strategic Planning


Strategic Planning Takes Into Account the Concept that Effectiveness is More Important than Efficiency:

That is, it is More Important to Do the Right Things than to Do Things Right.

Critical Components of Strategic Planning


• Contains - Clear, succinct mission statement - Limited number of goals - Philosophical guidelines - Strategic objectives - identifies the “vision”

or accomplishments over 3 - 5 years

• Followed by a realistic business or operational plan with responsible parties committed to moving forward

Traditional vs. Strategic Thinking and Planning


TRADITIONAL STRATEGIC-emphasis on stability -dynamic and change oriented-tradition oriented -mission oriented-blueprint for future decisions -vision of future & guides

today’s decisions-reactive -proactive-interaction in face of ambiguity -action oriented even in face

of ambiguity-internal focus -external focus-relies on tried & tested -emphasizes innovation &

creativity-lock step process -continuous, ongoing process-facts and quantitative emphasized -options and qualitative

emphasized-efficiency oriented -effectiveness oriented

Strategic vs. Operational Planning


Strategic Planning Operation PlanningA tool to guide decision Describes a set of steps formaking by management on achieving a particularissues fundamental to the resultorganization - Who will do it

- When- Whit what resources- What are the specific measurable goals to be achieved

STRATEGY = WHAT OPERATION = HOW

Strategic Planning


• Does NOT provide a detailed chronology of action, rather it:

• Broadly maps the activities the organization should pursue to maintain its desired character and identity

Constituents(Threats and/or Opportunities)


• Members• Staff• Other Stakeholders• Competitors• Challengers• Allies

Ultimately Need to Make Choices


• Think and act strategically• Focus the organization• Listen to constituents• Empower staff & committees• Follow your gut

Michael PorterHarvard Business School


“If you try to be flexible and be ready for everything, you could end up raising your

costs and not be good at anything.”

Strategic Planning Retreat Rules


Listen actively Stay focused Solve Problems rather than place blame Contribute only new information to the discussion Hitch-hike on to others’ ideas Respect differences of opinion Say what needs to be said: There are no sacred cows Avoid cheap shots Conduct only one discussion at a time Think strategically

STRATEGIC PLANNING

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