Strategic Planning

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Strategic Planning

• Barbara Egan, Vice President
• Woodward Academy

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Institutions Evolve

• Strategic planning is a systematic approach to
• directed evolution
• To choose not to plan
• haphazard, unfocused evolution
• extinction

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The Future is About Change

• The significant problems we face cannot be
  solved at the same level of thinking we were at
  when we created them
• Albert Einstein

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Key Planning Components

• Strategic Planning
• Tactical Planning
• Implementation
• Evaluation

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Choosing Directed Evolution

• Common concepts and terms
• goals, objectives, strategies
• Important as a shared vocabulary
• Systematically related
• Powerful when developed in concert
• Essential in shaping institutional futures

avoiding
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The Complex School
Plant
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Why?

• establish long-term competitive advantage
• identify areas of focus
• manage proactively
• communicate about strategic decisions
• establish benchmarks for success

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SP is Different from LRP

• Responsiveness to the environment
• Maximize long-term competitive advantage
• Sensitivity to institutional culture
• Active -- focuses on decisions and action

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Definitions

• STRATEGIC PLANNING
• Determining WHAT is to be done, in a probable
  future
• TACTICAL PLANNING
• Deciding HOW best to do it, using available
  resources
• MANAGEMENT
• DOING it well (Implementation)
• EVALUATION
• of Management, Tactics, and Strategy, as needed
  to achieve the desired GOALS

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Strategic Planning
Tactical Planning
Evaluation
Implementation
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Key Planning Components
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Strategic Elements (What)
Starting with its inter-generational Mission,
and a Vision of the School operating in some
probable Future
Completed by Strategic Plans comprised of
various Programs and Activities designed to
achieve the Strategic Goals
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Pebble in the Pond Effect - Strategic
Vision
Strategic Plan
Strategic Goals
Programs Activities
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Strategic Elements - Mission
WHAT the Institution DOES Describes the intended
role in society Should be clear and
succinct Should be readily available Governing
Boards Faculty, Administration, Staff,
Volunteers Students, Parents, Friends, Partners
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Components of a Mission
To provide A SPECIFIC KIND OF EDUCATION
to A SPECIFIC GROUP OF STUDENTS subject
to A SPECIFIC SCOPE and SPECIFIC CULTURE
recognizing interaction with OTHERS
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Components of the Mission
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Definitions
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Definitions
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Definitions
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Definitions
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Definitions
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Vision

• Future orientation an IDEAL and UNIQUE image of
  the future.
• Rich in descriptive text presenting a composite
  of GOALS for all parts of the school.
• Not possible now.
• There is no implied timetable.
• Requires change and mandates the creation of new
  things.

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Strategic Elements
Internal
External
Now Future
Now Future
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THE STRATEGIC GAP
FUTURE
Future B
Future A
Strategic Gap
NOW
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THE STRATEGIC GAP
Reality
Vision
Now
Future
A STRATEGY is needed to close the gap.
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THE STRATEGIC GAP

• Adding GOALS to the index
• Definition
• is a desired state of attainment on a Strategic
  Index, given the current Vision of the Mission
• is a prediction of a desirable and attainable
  outcome of the collective efforts of the
  organization
• involves plans For the next three to five years
  as an achievable and foreseeable planning horizon

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THE STRATEGIC GAP
Goal
Reality
Vision
Now
Future
Objectives
A STRATEGY is needed to close the gap.
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Definition

• Objectives
• Mileposts along the way that are clear to the
  community
• objectives MUST be measurable
• implemented by projects, programs and activities

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THE STRATEGIC GAP
________ ________ ________
________ ________ ________
Projects, programs and activities will be needed
to implement the strategies.
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Definitions

• Projects, programs and activities
• definite beginning and end points
• designated responsibility
• resources allocated

Strategies

Programs
Projects
Objectives
Goals
That are implemented by various operating units
using the best methods known and available
Strategic Plans
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R E S P O N S I B I L I T Y
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Developing Strategies

• 1. Define Indices Components
• 2. Measure Reality to determine Gaps
• 3. Set realistic Goals
• 4. Develop Strategies to close Gaps
• 5. Expand Strategies into coordinated
• Programs and Projects

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Strategies for Each Component
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CLIENT Indices
1. Define Indices Components
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Next Steps

• 2. Measure Reality to determine Gaps

US pool weak
US pool strong

• 3. Set realistic Goals

Pool will have minimum of 2 qualified applicants
for each opening.
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Next. . .

• 4. Develop strategies to close the gap.
• Increase applicant pool by 2x

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And . . .

• 5. Expand strategies into coordinated
• programs and projects.
• Increase applicant pool by 2x
• Participate in 2 additional school fairs
• Make 3 additional trips to northern part of state
• Add one additional open house weekend

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Developing Indices

• Each component needs a series of indices
• Determine whether or not each index is internal,
  external or mixed
• Start to list where you might find data that is
  already compiled
• Describe data that will need to be compiled
• Each committee, task force etc. will be asked to
  develop these for their area of work

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SERVICE Indices
LEARNING OPPORTUNITIES

• Educational Programs
• Depth
• Breadth
• Quality
• Philosophy

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CULTURE Indices
ORGANIZATIONAL VALUES

• Cultural Tone, Beliefs, and Behaviors
• Economic values
• Social values
• Self-enhancement values
• Theoretical values
• Aesthetic values
• Religious values
• Discipline-based values
• Role-based values

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Strategic IndexPARTNERS Indices
RELATED STAKEHOLDERS

• Participants outside the organization
• Family
• Graduates
• Potential applicants
• Different levels of governmental agencies
• Vendors and business relationships
• Competitors and co-operators
• Other non-profit and service organizations
• Neighbors and community

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Strategic IndexSCOPE Indices
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Strategy Flexibility

• As the Vision timeframe lengthens . . .
• Increasing uncertainty . . .
• Increasing stress on existing structures . . .
• Increasing demand for alternative plans . . .
• Increasing demand for flexible thinking . . .
• Increasing reliance on initiative . . .
• Calling for farsighted, resilient Strategies

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Linking to Resources

• The only way to make the strategic plan
  operational is to apply resources.
• Only 2 kinds of resources - people and s.
• Clients, services, culture and partners must be
  linked with scope.

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Linking to Resources

• Reflect institutional priorities in operational
  plan and budget plan
• Establish school goals
• Define objectives to meet those goals
• Design measurable strategies and action plans to
  implement those goals
• Set time lines

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Resource Stewardship Educational
Asset Factors

• Preservation of Educational Assets (Goal Vs..
  Reality)
• Primarily faculty and supporting staff
• Aggregate level of education and knowledge
• Aggregate career experience
• Aggregate experience at this institution
• Instructional training resources
• Program resources per student
• Direct educational budgets
• Supporting facilities
• Supporting services

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Resource Stewardship Capital Plant
Asset Factors

• Preservation of Capital Plant Assets (Goal Vs..
  Reality)
• Primarily Buildings, Equipment, and Land
  Improvements
• Total replacement value of plant assets
• Extent and distribution of accumulated deferred
  maintenance
• Potential extent and current use of debt
  capability
• Annual capital plant renewal (CPR) need
• Annual CPR current funding level, from all
  sources
• Tolerance for shabby gentility, (acceptable
  levels of appearance)
• Governing Board and administrative tolerance for
  risk exposure

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Resource Stewardship Investment Asset Factors

• Preservation of Investment Assets (Goal Vs..
  Reality)
• Primarily Endowment and Planned Gifts Funds
• Total assets invested
• Total rate of return on investments
• Spending rates for various institutional purposes
• Educational Operations
• Capital Plant Management
• Investment Management
• Capital Development and Fundraising
• Net re-investment rate, inflation-adjusted

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Resource Stewardship Capital
Development

• Preservation of Fundraising Assets (Goal Vs..
  Reality)
• Primarily Parent, Alumni/ae, Corporate potential
  donors
• Identification of fundraising potential
• Realization of potential as gifts and pledges
• Gifts consumed directly for Educational
  Operations
• Gifts consumed directly as Fundraising expenses
• Gifts invested in capital plant
• Net gifts and pledges available for endowment
• Net cash available for endowment
• Resultant Fundraising productivity

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Resource Stewardship Balanced All-in
Budget

• Preservation of All-in Balanced Annual Budgets
• (Goal Vs.. Reality)
• Balanced Educational Services Budgets, inclusive
  of
• A full asset preservation (CPR charges)
• A prudent endowment spending rate
• Minimized funding from direct giving
• Adequate reinvestment in educational program
  training and support

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Resource Stewardship Balanced
Multi-Year Plan

• Preservation of Balanced Multi-year Financial
  Plan
• Future All-in Revenues Balance Future All-in
  Expenses, with reasonable consideration of
• Growth or decrease in rates ( tuition and fees,
  net of financial aid need)
• Real increases in endowment support
• Facility arms race full costs
• Technology arms race full costs
• Local taxation threats
• Classroom (or virtual classroom) methodology
  changes
• While maintaining student and educational
  quality, stakeholder relationships, and
  institutional values

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Multi-year Plans

• Multi-year plans are complex interactions of many
  actions and individuals
• Reliant upon consistent assumptions about
  probable futures
• Or, need to be designed to be alternative
  futures tolerant

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Strategy Development Flexibility

• As the Vision timeframe lengthens . . .
• Increasing uncertainty . . .
• Increasing stress on existing structures . . .
• Increasing demand for alternative plans . . .
• Increasing demand for flexible thinking . . .
• Increasing reliance on initiative . . .
• Calling for farsighted, resilient Strategies

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Strategy Development Steps

• For Each Index Component
• Define Indices Components
• Set realistic Goals
• Measure Reality to determine Gaps
• Develop Strategies to close Gaps
• Expand Strategies into coordinated Programs and
  Projects

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Programs and Projects
Strategies
Programs Projects
1001. Integrated science curriculum 1403. Campus
networking 1782. Required foreign study 4330.
Endowment campaign for endow. 4340. Endowment
campaign for CPR 3428. Dormitory
modernization 3714. Aerobics exercise
facility 3906. Demolish old dormitory block 1987.
Downsize boarding 20 1842. Expanded Admissions
travel 1844. Artistic/athletic scouting 1735.
Womens varsity ice hockey
A.1. ------------------------------ A.2.
----------------------------------- A.3.
------------------------ B.1. --------------------
--------------- B.2. -------------- C.1.
------------------------------------ C.2.
------------------------------- C.3.
--------------------------- D.1.
-------------------------------- D.2.
----------------------------- D.3.
--------------------- D.4. -----------------------
------------- E.1. ------------------------- E.2.
----------------------------
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Using a Time Line

• Programs Projects Objectives on a Timeline
• 1001. Integrated science curriculum --------a----
  -------b-----------------------c--- Goal
• 1403. Campus networking ------a-------b-------c-
  -------------d-----e-- Goal
• 1782. Required foreign study ---------------s----
  --p--------v----i-------Goal
• 4340. Endowment campaign for CPR ----------a----b
  ------c---d-----------e----Goal
• 3714. Aerobics exercise facility --------s----dd-
  -----------cd--------------------gt
• 3906. Demolish old dormitory block ---------e----
  ------d----------sr-----Goal
• 1987. Downsize student body 20 ----------a------
  -----b----------c---------- Goal
• 1842. Expanded Admissions travel ---------s------
  --i-------------------------- Goal
• 1735. Womens varsity ice hockey ---------------s
  ------------i-------r--------- Goal

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Key Planning Components
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Overview

• Each step represents a separate process in the
  determination of HOW the organization is to
  best meet its objectives
• By selecting the best methods currently known
  that convert scarce resources into efficient and
  effective services
• Recognizing often competing and sometimes
  conflicting priorities in the allocation of those
  resources to the various operating units of the
  organization

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Methods Analysis
METHODS ANALYSIS
Resource Management Structure and Design
Responsibility Assignment
Methods Evaluation, Costing, and Selection
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Responsibility Assignment
Tactical Planning
Responsibility Assignment
Methods Analysis
Existing or newly created organizational
structures become individually or collectively
responsible for achieving organizational Goals
and Objectives - through management of parts of
Programs or Projects Each operating unit within
these structures represents a collection of
resources and capabilities that can be designated
to be responsible for achieving a given Strategic
Objective
Modeling Balancing
Tactical Plans
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Methods Analysis Selection
Tactical Planning
Methods Evaluation, Costing, and Selection
Methods Analysis

• The team assigned responsibility for each
  objective should have the expertise to
• be knowledgeable of the best available methods
• cost the application of alternative best methods
  to its assigned objectives
• select the methods that best achieve the
  Objectives, fit the current environment, while
  optimizing available, and minimizing adverse
  consequences

Modeling Balancing
Tactical Plans
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Modeling Balancing
Tactical Planning
MODELING BALANCING
Methods Analysis
Top-down parameter-driven allocations
Bottom-up resource re-allocations
Modeling Balancing
Optimizing strategic attainment with available
resources
Tactical Plans
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Top-down Allocations
Tactical Planning
Top-down parameter-driven allocations

• Assignment of policy-determined available
  resources and responsibilities to the various
  operating units for use in reaching objectives
• Human resources and compensation s
• Materials, services, and equipment s
• Facility capacity and s
• Revenue generation s
• Summary preliminary budgets in a multi-year
  operating plan

Methods Analysis
Modeling Balancing
Tactical Plans
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Bottom-up re-allocations
Tactical Planning
Bottom-up resource re-allocations
Methods Analysis

• Cooperatively determined revisions to the policy
  plan that better meet the objectives while not
  violating the policy limitations
• Reflecting operating unit expertise and knowledge
  of better methods and organizational design than
  contained in the policy plan to be used in
  revising future plan allocations and projections

Modeling Balancing
Tactical Plans
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Optimizing
Tactical Planning
Optimizing strategic attainment with available
resources

• Reallocating resources and responsibilities to
  best meet the Objectives and Tactical Policies
• Recognizing resource opportunities, constraints
  and trade-offs between competing Objectives and
  Policies
• Reflecting current cultural realities and
  pressures
• Making best efforts to communicate and enlist
  support and understanding among the units that
  cannot have their desired allocations fully met

Methods Analysis
Modeling Balancing
Tactical Plans
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Tactical Plans

• IMPLEMENTATION PLANS THAT
• Clearly identify the individuals responsible for
  attainment of each objective
• Implement the methods chosen by each unit -
  Expressed as a mix of staffing, purchased
  services, materials and supplies, equipment, and
  all activity-related revenues and allocations
• Depict the expected timing of actions
• Match expected sources to uses
• Best meet the Tactical Policies
• Best achieve the collective Objectives that make
  up the Strategic Plans

Strategic Plans
Tactical Planning
Methods Analysis
Modeling Balancing
Tactical Plans
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Linking Strategies to Budgets
Strategic Plans
Tactical Planning

• Each group will have
• Salaries Benefits
• Represents PEOPLE allocation
• Supplies Materials
• Represents additional DOLLAR allocation

Methods Analysis
Modeling Balancing
Tactical Plans
Budgets
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Education

• All school
• Salaries benefits
• Materials supplies
• Lower School
• Salaries benefits
• Materials supplies
• Middle School
• Salaries benefits
• Materials supplies

• Upper School
• Salaries benefits
• Materials supplies
• Summer School
• Salaries Benefits
• Materials Supplies
• Administration
• Salaries benefits
• Materials supplies

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Within the Education Unit

• Salaries benefits
• Materials Supplies
• Instructional
• students - inside the formal classroom
• Instructional Support
• students - outside the formal classroom
• Division Administration
• adults - support in and out of classroom

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Relationship of Units

• Education
• THE reason for the institution
• must generate revenue for support not covered by
  other units (tuition)
• Plant
• exists to support the educational program
• program before facilities
• education resources pay for any plant expense not
  covered by plant revenue activities
• Investments
• exist to support program
• contributes to Education unit
• Fund Raising
• exists to support program
• contributes to both Investment and Education

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Relationship of Units
Education
Investments
Plant
Fund Raising
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Key Planning Components
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Overview
Tactical Plans

• EACH REPRESENTS A SEPARATE PROCESS - Involved in
  DOING the Tactical Plan methods well
• Prudent stewardship of Institutional assets
• Intelligent minimization of liabilities
• Creative maximization of revenues
• Responsible expenses
• Agreed upon allocations in or out
• Linked with accurate, timely, and useful
  information

Operational Management
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Activity Management
Operational Management

• The day-to-day conduct of specific tasks and
  actions
• Maintaining and enhancing student characteristics
• Providing learning
• Managing resources
• Communicating and evidencing core values

Activity Management
Flow Management
Position Management
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Flow Management
Operational Management

• Developing and maintaining systems at the
  activity and task level
• Connecting beginning to planned ending positions
  with interrelating activities
• Student attributes enhancement
• Learning networking, curricular systems design
• Resource flows
• Values infusion

Activity Management
Flow Management
Position Management
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Position Management
Operational Management

• Vigilant monitoring of current positions relative
  to both initial positions and desired outcomes,
  and to peers and benchmarks
• Setting the stage for continuous evaluation . . .
  

Activity Management
Flow Management
Position Management
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Key Planning Components
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We Need to be Loopy to be Successful !
Mission
Continuously Evaluating Progress toward Goals
Looking to Improve Operational Management . . .
Strategic Plans
Looking to Improve Tactics . . .
Looking to Improve Strategies . . .
Tactical Plans
In a Continuously Evolving World !
Operational Management
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Operational Management
Operational Management

• Evaluate Current Performance Gaps for
• Improved operational activities and tasking
  performance
• Improved operational process design performance
• Improved positional assessment performance

Activity Management
Flow Management
Position Management
gap
Current Outcomes
GOALS
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Reviewing Implementation

• Ensuring that the selected methods are well
  implemented
• Were employees wisely selected properly oriented
  and trained adequately equipped and supported
• Were capable service providers chosen properly
  oriented, equipped, supported contract terms and
  specifications met the deliverables and
  completed project satisfactory?
• Were program revenues attainable and collectable?

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Reviewing Tactical Planning

• Evaluate Current Performance Gaps for
• Improvement by different and better methods
• Improvement by different and better allocation
  decisions
• Improvement by different and better tactical
  relationships

Tactical Planning
Methods Analysis
Modeling Balancing
Tactical Plans
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Reviewing Tactical Planning

• Finding better ways to reach the desired goals in
  order to fulfill the Institutional Mission
• Were the desired outcomes achieved were there
  any unintended consequences would other methods
  be more efficient or effective?
• Was the costing and modeling accurate and
  complete?
• Did the balancing against competing priorities
  achieve the desired policy outcomes?
• Were budgets communicated and understood were
  the levels of participation fitting can
  appropriate changes be made?

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Reviewing Strategic Planning

• Evaluate Current Performance Gaps for
• Improved strategies and inter-relating plans
• Different or better external references and
  trends
• Revised vision of what is possible or desirable
• Finally, does the mission itself need
  reconsideration?

Strategic Planning
MISSION
VISION
Strategic Plans
gap
Current Outcomes
GOALS
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Reviewing Strategy

• Questioning WHAT the Institution is trying to
  do
• Are different programs more appropriate?
• Are the objectives truly measurable and do they
  actually lead to the goals?
• Are the Strategic Plans complete, connected,
  properly sequenced and timed?
• Does the Institution correctly understand both
  its internal and external environment, resources,
  and constraints?
• Has the sense of future changed, has the proper
  role in the future changed - as society slowly
  (or not so slowly) changes?

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Calendar

• Leadership training
• Community input (charrette)
• Gaps and strategies - committee task force work
• Senior leadership editing
• Board prioritizes
• Leadership begins tactical planning and
  implementation phases.
• Evaluation

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Involvement

• Training
• Community input
• Gaps and strategies
• Editing
• Priorities
• Tactical
• Implementation
• Evaluation

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Barbara Egan

• Vice President
• Woodward Academy
• [phone]
• barb.egan_at_woodward.edu