The Vocabulary of Strategy: Using Planning to formulate Strategy. Kevin Hinde
What is meant by Strategic Planning? • What do you understand by the term ‘Planning’? • Brainstorm your ideas.
Strategic Planning • “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” Bryson (1995, p 4-5)
10 1 The Planning Process Reassess the process Develop an effective implementation process Establish an effectiveorganisational vision Review and adopt the strategic plan or plans Formulate strategies to manage these issues Identify the strategic issues facing the organisation Assess the external and internal environments to identify SWOTs (Strengths, Weaknesses, Opportunities and Threats) Clarify Organisational Mission and Values. Identify Organisational Mandates Initiate and agree upon the strategic planning process.
Stage1: Initiate and agree upon the strategic planning process. • Agreement must be reached as to • the purpose of the effort • the preferred steps in the process. • the form and timing of reports (the planning cycle) • the role, function and membership of groups established to oversee the effort. • the role, functions and membership of any strategic planning committee. • the commitment of resources for the process.
Stage 2: Identify Organisational Mandates • What Must be Done • What must not be Done • What Could be done
Stage 3: Clarify Organisational Mission and Values. • the overriding purpose or intent of the organisation must be established. • an opportunity to establish broad policy goals.
Stage 3: Clarify Organisational Mission and Values.(cont) • Stakeholders • Bryson (1995) suggests identification of key stakeholders is the key means to success in public and non-profit organisations. • But who are the stakeholders?
LEVEL OF INTEREST High Low B A Low Keep informed Minimal effort POWER C D Keep satisfied Key players High
Stage 3: Clarify Organisational Mission and Values.(cont) • Claims for mission • Peeke (1994) • it encourages the development of a clear sense of purpose. • it facilitates decision making in the organisation • the mission process facilitates organisation-wide communication. • it aids evaluation activity. • it clarifies marketing strategy. • it is useful in the management of contraction (at least if the mission has been devised proactively. • Does the notion of mission live up to these claims?
"...even if the mission statement ends up in everyone's wastebasket, there will still be beneficial effects resulting from the thinking and analysis involved in drafting it" (Bowman, 1990)
Guiding principles for Mission • It takes years not months • True consensus is necessary within the top team • Action is a better communicator than words • Top team visibility is essential • Top team continuity helps • Strategy and Values should be formulated together • Management should focus on the link between behaviour and values. • Make the mission inspirational but not unrealistic
Stage 4: Assess the external and internal environments • The subject of future Lectures
Stage 5: Identify the strategic issues facing the organisation • These are fundamental policy questions or critical challenges that affect an organisation’s mandates, mission and values; product or service level and mix; clients, users, or payers; or cost, financing, organisation or management (Bryson, 1995,p.30)
Stage 6: Formulate strategies to manage these issues • “A strategy is defined as a pattern, of purposes, policies, programmes, actions, decisions, or resource allocations that define what an organisation is, what it does, and why it does it. Strategies can vary by level function, and by time frame.” • (Bryson, 1995, p.32)
Stage 7: Reviewing and Adopting the Strategies and Plan • This is important where official approval to proceed is required or where joint commissioning work is being undertaken. • This stage represents the formal seal of approval for the strategies to be adopted.
Stage 8: Establishing an Effective Organisational Vision • ‘animating the dream’. These statements offer aspirations about the future strategic direction of the organisation and are often incorporated in Mission Statements. • In this stage the organisation is developing a view of what it should look like once its strategies are achieved and developed to their full potential.
Stage 9: Developing an Effective Implementation Process • Developing a document is not enough. For Strategies to be realised. • Individuals, teams etc. have know their roles and responsibilities • action plans have to be developed • timescale has to be considered (a planning cycle might develop). • resources have to be committed, particularly to training • communication processes have to be developed (and these have to be effective) • Review and monitoring procedures have to be considered (This may involve, performance indicators, benchmarking) • Accountability procedures must be put in place
Stage 10: Reassessing Strategies and the Planning Process • The process is on going. But remember, new strategies emerge and some old ones are discarded whilst others remain.