Strategic management

1. Strategic management • Basanta Raj Sigdel • Suwarn Kumar Singh • Pratibha Dhungana

2. Agenda of the Session • Strategy in an organizational context • Strategic thinking • Strategic planning process

3. “If you don’t have a strategy, you will be …. part of somebody - else's strategy. -Alvin Toffler

4. Mind Reading • What comes to your mind while talking about Strategy? Please create a PICTURE within 5 minutes that expresses the term- ‘Strategy’. • Each participant will draw a concept first • Succeeding officers will build on the concept already drawn • You are requested NOT TO communicate while drawing • Circulate your drawing to other groups • Share learning in plenary in 5 minutes

6. Plan Five Ps of Strategy (Mintzberg) Perspective Strategy Ploy Pattern Position

7. Five Ps of Strategy • PLAN • Consciously intended course of action, a set of guidelines to deal with the situation • PLOY • Specific maneuver intended to outwit an opponent or competitor • PATTERN • In a stream of actions…consistency in behavior whether or not intended • POSITION • Means of locating an organization in an environment • PERSPECTIVE • An engrained way of perceiving the world

8. Strategic Thinking

9. Strategic Thinking

10. Strategic Management • … is the application of strategic thinking to the job of leading an organisation. • “Managing strategically”, in other words: • ‘Diagnosing situation strategically’, and • ‘Applying knowledge strategically’ • “… is continuous, iterative process aimed at keeping an organization as a whole appropriately matched to its environment.” • Certo and Peter

11. Strategic Planning Strategic Planning is a disciplined effort to produce fundamental decisions and actions that shape and guide what an organisation is, what it does, and why it does it with a focus on the future (JM Bryson). It focuses on the best ‘fit’ between an organisation and its environment. It is defined as the process of addressing the following questions: The resulting document is Strategic Plan for performance improvement to achieve desired goals. A living document that has ability to create successful future of the organization.

12. Strategic Planning VMO SWOT Strategy The resulting document is Strategic Plan for performance improvement to achieve desired goals. A living document that has ability to create successful future of the organization.

13. Strategic Planning Process It is an ongoing process and involving a series of steps to be followed. • Getting Ready(Agreement) • Environmental Scanning (SWOT Analysis) • Strategy Formulation (Identification of Strategic Issues, Vision,Mission, Objectives, Roles, Strategies) • Strategy Implementation (Strategic Actions (Action Plan): Actions/Activities, By whom, By when, Resources, Indicators, Critical factors) • Evaluation and Control

14. Environmental Analysis • Analysis and diagnosis of an organization, often referred to as an Organization Audit or SWOT analysis. • It is undertaken to assess an organisation’s ability to deal with its environment by identifying strengths, weaknesses, opportunities and threats (SWOT).

15. Internal (Supply Side) Analysis An analysis of internal organizational factors which reviews and investigates the prevailing resources, processes and performance of organization. The analysis identifies major strengths and weaknesses - of all the key functional elements (Structure, Functions, HR, Finance, IT, Rules, Procedures, etc.). What are major internal Strengths and Weaknessesin terms of Structure, Resources, Processes, Performance, Culture, etc. ?

16. External (Demand Side) Analysis The analysis indicates the opportunities and threats faced by the organization from its relationship with external stakeholders. Major categories of external environment: 1. Forces and trends – PEST 2. Clients, customers, or payers 3. Actual or potential competitors or collaborators What major external Opportunities and Threats (Political, Economic, Social, Technology, Legal, Stakeholders, etc.)do the organization face?

17. Considerations • Use precise, verifiable statements ("Cost advantage of Rs……/unit in sourcing resources x", rather than "Good value for money")- be specific. • Reduce long lists of factors, and prioritizethem, so that you spend your time thinking about the most significant factors.

18. Information for SWOT Sources of Information • Primary • Secondary Methods of Information Collection • Interview • Focus group discussion / Workshop • Questionnaire Survey • Observation • Reviewing documents, reports, etc.

19. SWOT Profile

20. SWOT Profile- an example

21. Exercise: SWOT Analysis

22. Sample organizations for Exercise • Army Command and Staff College • Army Hospital • Welfare Fund • Logistics Management • Disaster Risk Management

23. Strategic Issues • Fundamental policy questions or critical challenges that affect • An organization’s mandates, mission and values • Organization/management • Costs, financing • Services • Consumers, users…. About which something can be done. John M. Bryson, Strategic Planning for Public and Nonprofit Organizations:  A Guide to Strengthening and Sustaining Organizational Achievement, rev. ed. (San Francisco:  Jossey-Bass, 1995), 30

24. Strategic Issues Example • How to optimize technology in enhancing operational efficiency of the organization? Prioritizing Issues • No action is needed at present, but needs monitoring • Can be handled as regular planning • Urgent, must be dealt with • Actionable/feasible, Resources, Stakeholder readiness, Importance

25. Vision, Mission, Objectives, Roles Vision: • …is a mental picture of a possible situation or state of affairs. • …a statement about what your organization wants to become. How the organisation would like the world in which it operates to be? What it should look like? Where it wants to go in future? Example: “Center of Excellence in developing managerial capabilities of public service organizations”

26. Mission The fundamental purpose of an organisation, basically describing why it exists (reasons for existence – purpose) and what it does to achieve its Vision. Why it should be doing what it does? Example: “Develop managerial competencies and organizational capabilities of public sector through training, consulting and research services”

27. Objectives What you are trying to achieve by a particular course of action. Stated in terms of the results it needs/wants to achieve in future. Objectives should relate to the expectations and requirements of all the major stakeholders. They should be SMART. Example: • Ensure training programmes based on real learning need of officers.

28. Roles The position that an organisation has in a particular situation, which determines how much it is involved in the situation or how much responsibility it has. Roles are identified considering strategic strengths and opportunities. Example: • Policy advice • Implementation of policies • Research • HRD

29. Strategy Formulation Strategy is an action oriented plan of operation for achieving desired goals based on situation analysis, and emphasises what an organisation will be doing in future. An effective strategy must meet several criteria: • Technically workable • Politically acceptable to key stakeholders • Accord with the organisation’s philosophy and values. • Ethical, moral and legal, • Deal with issues it was supposed to address

30. Strategic options: TWOS Matrix (Weihrich)

31. Considerations in strategy formulation • Organisational competence and resources to capture opportunities • Environmental threats to its long-term well being • Personal values and aspirations of managers • Societal obligations and ethical considerations • Organisational culture

32. Strategy Example: Foster institutional networking and coordination The Choice of Strategy depends upon organisation’s environment and mission and objectives.

33. Strategic Plan

34. Strategy Implementation • Building an organisation structure to the requirements of the strategy • Allocating resources and energies on accomplishment of the strategic goals • Ensuring organisation-wide commitment • Installing administrative support system • Shaping the organisation culture to fit the strategy • Exerting strategic leadership

35. Evaluation and Control The implementation of the strategy must be monitored and adjustments made as needed. Evaluation and control consists: • Parameters and target values for those parameters • Performing measurements • Comparing measured results to the pre-defined standard • Making necessary changes

36. WHY STRATEGIC INITIATIVES FAIL? When one is STUPID: Sponsorship not forthcoming Team member do not function as agents of change Unclear vision and commitment Poorly planned change programme Inappropriate/Insufficient Communication Don’t take account of culture

37. The SUCCESSPrinciple Shared vision Understand the organization Cultural alignment Communication Experience help where necessary / Executive support Strong leadership Stakeholder buy-in / Systematic planning / Short-term wins

38. Conclusion • Strategic Management originated as a discipline in 1950s and 1960s is “diagnosing situation strategically” and “applying knowledge strategically” to achieve objectives. • It starts with getting ready for planning and moves on to addressing the questions: Where are we today? Where we want to go? How do we get there? • Organisations to achieve their long term objectives successfully have to put strategic management into practice strategically involving key stakeholders in the planning process at some level.

39. The story continues…