Desired Meeting Outcomes

A RigorousStrategic Planning Process- Defining the Strategic Plans for Vietnamese Universities -December 2012 Workshop, VietnamDr. Dan L. Shunk, ProfessorIndustrial Engineering, Arizona State University

Desired Meeting Outcomes • Honor to be with you again • My Hopes for this meeting: • To listen and to prioritize topics • To provide examples of strategic plans • To provide a complete Strategic Planning Framework • To use “active learning” techniques • To leave with a plan that you can accept in supporting the creation of your personalized strategic plans.

It Is Clear… • The Prime Minister has published an aggressive plan for Vietnam 2011-2020. • We enter a new strategic phase in the context of rapid changes and unexpected fluctuations. • New driving forces: • Expanding democracy in the economy • The Enterprise Law • Promoting privately-run economy • Stepping-up the SOE’s • Implementing administrative reforms Source: Vietnam Magazine, “PM highlights development strategy for 2011-2020”

It Is Clear… • Tendencies • Leaping development of science and technology • Formation of the Knowledge-based economy • Environmentally-friendly technologies • Deeper globalization and connectivity Source: Vietnam Magazine, “PM highlights development strategy for 2011-2020”

“Maximizing the human factor, considering the people the key resource and the target of development” “Strongly developing production forces with increasingly high scientific and technological levels” Source: Vietnam Magazine, “PM highlights development strategy for 2011-2020”

General Goals • “Striving to turn our country basically into a modern industrialized country by 2020; with stable, democratic, rule-governed, and consensual politics – society… • Three breakthroughs: • Perfect the socialist-oriented market economy • Rapidly develop human resources • Build a comprehensive infrastructure Source: Vietnam Magazine, “PM highlights development strategy for 2011-2020”

Our Charter • Growth relies on applying new scientific and technological achievements and using skillful human resources and modern management skills. • The draft strategy sets the requirement of basic and comprehensive reform of the national education to increase the human resource’s quality. Source: Vietnam Magazine, “PM highlights development strategy for 2011-2020”

This Requires: Excellence with Relevance!!! Let’s Discuss - What Do YOU Wish to Accomplish with VULII? -

Let’s Prioritize the Strategic Planning Topics What Do You Need?

University VSAT Results

Prioritizing the Topics • What is included in a Strategic Plan - The VSAT Results - Examples of Strat Plans to be conducted - A Draft Strat Plan Outline for your review • The ASU Dashboard as a Strategic Tool - Presentation by ASU guests to highlight importance • How an institution creates a Strategic Plan • How to achieve a “Sustainable Differentiation” 5. How to prioritize strategic resources - An analytical approach 6. How to LEAD this effort / An Innovative Culture 7. How to create a strategic execution plan

Prioritizing the Topics 8. How to measure strategic progress • Presentation on ASU Quality Assessment 9. How to conduct a competitive analysis and SWOT 10. How to identify barriers and develop risk mitigation plans 11. How to formulate a “Center of Excellence” plan 12. How to create a solid PR position – creating Brand Image 13. How to sell a Strategic Plan 14. Establishing a “Go Forward” Plan √ √ √ √ √ √ √ 1 2 3 4 5 6 7 8 9 10 11 12 13 14

1. What Is Included in a Strategic Plan? A look at examples An outline of your plan

In The Spirit of Listening Have created the VULII Strategic Assessment Tool - “VSAT” Calculate (Desired – Current) * Value Results in Pareto of Strategic Gaps Supports a Strategic Focus with: Prioritized Gaps Defined

How Use the Results • Four quadrants of results: High Low Typically Address thru Cont. Improve Of Great Strategic Interest Strategic Value Minimal Strategic Interest Typically Address as a Tactical Project Low High Strategic Gap = ( D – C)

The Results • Four quadrants of results: 3.4 Institutional Priorities Addressed 5.1 Process for Personnel 5.2 Process for Student Enrollment 6.1 All faculty learn modern instruction 3.1 Key drivers for performance defined 1.4 Plans to achieve accreditation High Low Typically Address thru Cont. Improve Strategic Value Minimal Strategic Interest Typically Address as a Tactical Project Low High Strategic Gap = ( D – C)

My Interpretation • 3.4 Institutional Priorities Addressed • We need to accomplish the unique strat plans • 5.1 Process for Personnel • I assume this means “educate / attain / retain” • I assume this means workload model • Transitioning from teaching to teaching and research • 5.2 Process for Student Enrollment • I assume this means attracting and educating the best talent • 6.1 All faculty learn modern instruction • Being pursued under HEAPP • 3.1 Key drivers for performance defined • Being pursued under the QA initiative • 1.4 Plans to achieve accreditation • I assume this means ABET-equivalent What do these mean to you?

Exercise #1 Expected Accomplishments for 2012-2013? • Each University will have a customized strategic plan. • Each University and College will have a target set of metrics to judge progress. • Each University and College leader will understand the strategic planning process and a strategic framework model. • Each University and College will have created the means to provide the resources needed for strategic plan success. • An overall approach to creating a strategic Center of Excellence plan is developed and beginning to be implemented. • Each University will have launched the creation of the organization needed for strategic success (if different from their current organization.) • Each University and College will have an appropriate workload model • Each University will have a student attraction / retention plan • Each University will have a plan to pursue accreditation • Each University will have made commitments to implement the plans.

Exercise #1 • ACID TEST #1: • Please be able to say the following: • “If we accomplish each of the line items listed, we will MEET the expectations of Vietnam and MOET / MOLISA!!!”

A Review of Strategic Plan Contents Starting with the End in Mind - What Does Your Final Product Look Like?

KAIST • President Nam Suh outlines his plans with metrics: • Increase number of full time faculty from 429 to 700 • Increase the number of undergrads enrolling to 4000 by 2013. • Establish a Department Centric System / Boundary-less Research System • Establish KAIST Institutes • Change the tenure system • Appoint Distinguished Professors • Lecturing all courses in English • Strengthening Design and Synthesis Education • Introduce Dual Degree Programs with other institutions • Fundraising up to $1 billion in seven years.

University of Sydney – 2011-2015 • Developed 3 Goals and 17 key strategies: • G1: Refine our Governance Structures • Includes 9 strategic initiatives here • G2: Manage more effectively the size and shape of the university • Includes 1 strategic initiative here • G3: Initiate a University-wide Program of Curriculum Renewal • Includes 7 strategic initiatives here

UNC – Charlotte College of Education2010 – 2015 Strategic Plan • Executive Summary – 1 to 2 pages • Environmental Scan – 1 to 2 pages • New Strategic Goals with Action Plans – • 3 Goals highlighted • Each with action plans and metrics

Kellogg Institute for International Studies – University of Notre Dame • An Institute view of a strategic plan • Focusing on 3 Goals: • Promoting research excellence • Providing exceptional educational opportunities • Build linkages to support University strategic goals

University of Malawi Plan2012-2017 • University in Africa ~ very progressive • Foreword written by the Vice Chancellor • Outlined the Strategic Planning Process • Captured the Vision and Mission of the University • Did a formal SWOT for the environmental scan • Created 5 Goals, Objectives, Activities and Targets • Outlined how they would monitor • Attempted to predict the impact

University of Malawi Plan2012-2017 • Strategic Goals (5) • Teaching and Learning • Research, Consultancy and Community • Capacity Building • Governance and Management • Finance and Resource Mobilization

Nanyang Technological InstituteNTU 2015 • Created their “Five Peaks of Excellence” • Building upon current strengths and heritage • Focus is on five areas: • Sustainability • Healthcare • New Media • Best of East and West • Innovation These are really Centers of Excellence

A Draft Outline of YOUR Strategic Plan i. Foreword by Rector • Executive Summary • Appropriate Charge from Government Agency • Current Status and Demographics • Institutional Focus • Curricular Focus • Growth Projections • Matching Industry Segments with Institutional Strengths • Overarching SWOT • Major Goals and Strategies • Overarching Goals & Strategies • Institutional Goals & Strategies • Methods to Evaluate • Overarching Metrics • Institutional Metrics • Programs / Tasks and Timing • The Strategic Plan Roadmap • Resource Requirements • Staffing, Funding, Access, • Strategic Linkages • Expected Outcomes

2. The ASU Data Analytics Strategy How Data Analytics can provide the Strategic Visibility needed

3. How Institutions Create a Strategic Plan

Let’s Start with a Short Video Michael Porter on “What is Strategy”

Terminology I Use • To gain consensus: What How Goal Strategy Program Action Required Long Term Near Term

The 5 C’s Context SocialValues Rivals Technology Competitors Entrants Buyers Global FirmCompetencies Customers Substitutes Politics CoreProductAttributes Suppliers Economy Regulation Lifestyles

Definition of the business Who What How How does your combinationof What and How enable thecustomer to win? How Do You Make the Customer Successful?

- The Five Competitive Forces That Determine Industry Competition - Bargaining Power of Buyers Threat of New Entrants Rivalry Among Existing Competitors Threats of Substitute Products or Services Bargaining Power of Suppliers Source : Michael E. Porter, The Competitive Advantage of Nations, The Free Press, 1990.

Again, a short Video This time: Michael Porter on Five Forces

4. How to Achieve a Sustainable Differentiation Key element of “winning the game”

Distinctive Competence • Distinctive Competence is a company strength which is difficult or impossible for competitors to duplicate, imitate or match. • Competencies can be based upon: • Tangible resources • Intangible resources • Capabilities

Critical Success Factors Unlike distinctive competencies, these are skills or resources necessary for survival, or to avoid suboptimal performance. Success factors can be identified by asking: • What does our customer want? • What skills do our competitors possess?

Characteristics of a Strategic Resource or Capability • Has value • Is rare • Is imperfectly imitatable • No substitutes

Who What How Strategic Planning andExecution Process Customer Structure Info & DecisionProcesses Task Rewards People Competencies Sustainable Advantage

1. Stakeholder Success Factors 4. Execute Action Plans 3. Extract Tactical Programs & AR’s 2. ConstructHEEAP 2.0 Goals & Strategies Steps in Planning Process Commitment

Creating Your Strategic Goals Stakeholder Who Are the Stakeholders? * * * * Success Strategic Issue: What will differentiate you from your competition in the 21st Century? Stakeholder Satisfaction (a 1990’s view in every organization I visit)

We Must… • Define the overall GOALS for our institutions • Define the context and the environmental issues facing our institutions • Define the forces affecting our institutions

You Can’t ImproveWhat You Can’t Measure Classic Statement: Dr. Peter Drucker

Creating the Balanced Scorecard Achieving Pro-active B.I. FINANCIAL GOALS MEASURES CUSTOMER INTERNAL GOALS MEASURES GOALS MEASURES INNOVATION & LEARN GOALS MEASURES Source : Kaplan, "Creating a Balanced Scorecard", HBR, Jan-Feb, 1992.

Linking Strategy to Execution The Opportunity: The Strategic Management Process Linked to Organizational Performance STRATEGY 60% of organizations don’t link strategy & budgets 85% of management teams spend less than one hour per month on strategy issues update the strategy test the hypotheses Strategic Learning Loop BALANCED SCORECARD BUDGET 78% of organizations lock budgets to an annual cycle 20% of organizations take more than 16 weeks to prepare a budget reporting funding Management Control Loop 92% of organizations do not report on lead indicators PERFORMANCE Input(Resources) Output(Results) Initiatives & Programs

Lag Indicators Classic, after-the-fact measures Tell what you have done Lead Indicators Novel predictors of performance Allows you to see “ahead” and lead to a plan. Lag and Lead Indicators Time Lag Indicators Respond Look Behind A Process / An Event Lead Indicators Predict Look Ahead

We Must… • Define the overall GOALS for our institutions • Define the context and the environmental issues facing our institutions • Define the forces affecting our institutions • We must define the overall METRICS

5. Prioritizing Scarce Resources You can not do everything!!! You don’t have the resources to do everything!!!

Desired Meeting Outcomes