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AL QURAN
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Dr. Shoaib Ahmed
Ph.D (Pak) Post Doctorate (BCID, UK)
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To appraise participants
about
Understanding Strategic Planning
Need and Importance of Strategic Planning
Process of Strategic Planning Cycle
Key Steps towards Strategic Planning
Understanding S.W.O.T Analysis
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The term strategy refers to the broad approachor approaches to be taken in attaining your longterm objectives.
A sound strategy is one that will enable you toultimately gain a competitive advantage in themarketplace.
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A strategic plan documents your purpose for being,
who you are,
where you want to go and
how you intend to get there over the long term.It articulates the
key philosophies,
concepts,
ideas and directionswhich, when put into effect, profoundly shape thenature of your business.
For this reason, your strategic plan should be
carefully thought through.
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As an organization grows, it becomes
more important that all those involved
are clear about
What that organization is looking to
achieve? and
How it is planning to do it?
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How frequently a Strategic Plan should
be created?
and
How far out should the plan look?
There is no right answer to these
questions
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including
1. The degree of uncertainty within the environment in
which the organization is working,
2. The time it takes to develop new ideas and
3. The amount of resource that the organization is
prepared to put into the process.
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1. Setting Direction
Step 1 Define the StrategicChallenges
Step 2 Define the Objectives
2. Turning Direction into
Plans
Step 3 Formulate the Plan
Step 4 Set the Budget
3. ImplementationStep 5 Carry out the Plan
Step 6 Regular Review of the Plan
Step 7 Review Impact and Lesson Learnt
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oWithin the context of the overall
constitution goal and mission of the
organization,
oWhat are the specific challenges? and
oMeasurable objectives that the
organization wants to achieve?
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Most organizations have a set of statements that
describe the reasons for its existence and the way in
which it operates including
Mission Statement, Statement of Belief, Values,
Operating Principles and 10 year Strategic
Directions.
These documents provide the context for developing
a Strategic Plan, but none of them is, in itself, a plan.
The setting direction phase defines the someth ing.
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This is a list of no more than 10 issues that are vital to the
continuing success and development of the organization.
The list is best developed by the organization's leadership team.
The process of agreeing a list of no more than 10 challenges is,
in itself, a useful process for the leaders of the organization.
Techniques such as brainstorming can be used the first time
that the organization creates its list of strategic challenges.
In subsequent years, it is unlikely that the challenges will
change completely, so it may be more helpful to start from last
years challenges.
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For each of the challenges, the objective should state how achievement of the
challenge will be measured.
There can be more than one objective per challenge, but try not to have more
than three.
Each objective should be SMART
Specific, Measurable, Achievable yet Ambitious, Relevant and Timely.
Where objectives stretch over more than one planning cycle, ensure that there
is a measurable target at the end of the cycle.
It is also important at this stage to decide who (a person or a team) will be
responsible for achieving each objective.
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This phase is mainly about how?
What activities are necessary to enablethe organization to achieve its
objectives?
What, specifically, is the organization
planning to do to achieve its
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These are the methods and activities by which the objectiveswill be achieved, that is, who will do what by when?
There are many useful techniques e.g Gantt charts, Planningtables.
These will not be duplicated here.Important Consideration
Firstly, ensure that each activity plays an identifiable part inachieving one of the objectives, and also that if all activitiesare successfully completed, the objectives will be fully met.
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Secondly, there are two types of activities
projects and actions.
The fundamental difference between the two types is
that an action will generally be part of somebodys
job,
whereas a project is a one-off activity with a
beginning and an end. It is, therefore, an additional
activity, and will require additional resources, both
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The plans will have financial implications. The budgeting process is simply a way of planning what finances will beneeded for the organization to meet its objectives. Each area/department of the organization should prepare a budget based on
meeting the objectives that have been set. In all but the smallest organizations, this process will happen most effectivelyif it is co- ordinated centrally such that each department providesinformation in a similar format. The information can then be consolidated into an overall budget for the
whole organization. In practice, it may take several attempts before the consolidated budget isaffordable to the organization. It will save time, effort and emotion if departments are told as early on in theprocess as possible what their base budget is likely to be.
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o This is the most difficult phase for many
organizations. Yet without it, the Strategic
Planning Process is of limited value.
o Within the implementation phase, the organization
monitors and reviews how well it is doing in
comparison with the plan that was agreed.
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Once the plan has been agreed and approved, its really a case of Just DoIt!.
A plan that is well thought through with clear objectives, actions, timings andresponsibilities will provide the organization with a sound roadmap foraddressing its Strategic Challenges.
However, in the real world, the unexpected will always happen. External events may cause priorities to change and internal assumptions may
turn out not to be valid. That is why it is essential that Step 6 Review is carried out in parallel with
implementation
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Review is a key part of implementation. It should be included as part of the implementation plan. The person responsible for each activity should be carrying out continuous review,
and the leadership team should review at appropriate intervals at least once eachquarter if the planning cycle is annual.
The purpose of review is initially to establish progress, but it doesnt end there. Action should be taken as a result of review to either get the activity back on plan, oramend the plan to reflect the new circumstances. In deciding which course of action is appropriate, ensure that the impact of the activity
on the Strategic Challenges for the organization is well understood.
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The Strategic Planning Process is iterative (involving repetition) At the end of the cycle, the leadership team should review what
has been achieved against the plan?, and what can be learntfrom it?
This information is then fed forward into the Direction Settingphase of the next cycle.
And so the process begins again.
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For most of us, it would be inconceivable to embark
on a journey without having
clearly identified the purpose,
destination and
how we intend to get there.
This holds true for any and every business
organization. Formally developing a plan:
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Forces thinking about the future direction of the organization Provides a road map for all involved to follow Acts as a tool to coordinate everyones efforts Enables the organization to be proactive rather than reactive Provides a framework for evaluating opportunities and threats Provides a sense of a purpose and a future for the organization Empowers everyone involved with enthusiasm Provides a tool for measuring progress Helps convince others to invest their time and money in the company
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SWOT analysis is a Strategic Planning method used
to evaluate
the Strengths,
Weaknesses,
Opportunities, and
Threats
involved in a Project or in a Business venture.
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It involves specifying the objective of the business venture orproject and identifying the internal and external factors that arefavorable and unfavorable to achieve that objective.
A SWOT analysis must first start with defining a desired endstate or objective.
A SWOT analysis may be incorporated into the strategicplanning model. Strategic Planning has been the subject ofmuch research
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Strengths: characteristics of the business or team that give it
an advantage over others in the industry.
Weaknesses: are characteristics that place the firm at adisadvantage relative to others.
Opportunities: externalchances to make greater sales or
profits in the environment.
Threats: externalelements in the environment that could cause
trouble for the business
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