Strategic Planning and the Planning Process

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Strategic Planning and the Planning Process

• Planning in the Academy

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Strategy and Planning History and Definitions

• Of military origin, applied to a business
  setting.
• In Chinese Heiho
• Method of the soldier
• Resources, goals, capabilities, dominance
• Strategy in the business setting has matured and
  grown from these beginnings

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James Bryan Quinn

• A strategy is a pattern or plan that integrates
  an organizations major goals, polices, and
  action sequences into a cohesive whole. A
  well-formulated strategy helps to marshal and
  allocate an organizations resources into a
  unique and viable posture based on its relative
  internal competences and shortcomings,
  anticipated changes in the environment and
  contingent moves by intelligent opponents.

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Henry Mintzberg

• A pattern in a stream of decisions
• Position, perspective, pattern, plan
• Intended (The play book)
• Deliberate (Following the play book)
• Emergent (Fumble!)
• Unrealized (Punt on 4th down)
• Realized (The outcome of the game)

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Two more definitions

• Porter
• Decisions that lead to a unique position
• What you do and dont do
• A fit between firm actions and the environment.
• Robert
• A picture of the products, customers, industry
  segments and geography you will compete in. A
  future vision of the firm.

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Strategy and Planning - the educational context

• Blau, Boyer, Astin, Bloom, Birnbaum
• Clark Kerr Berkeley and the California System
• The status quo is the only solution that cannot
  be vetoed.
• "When the borders of the campus are the
  boundaries of our state,' the lines dividing what
  is internal from what is external become quite
  blurred taking the campus to the state brings
  the state to the campus." (1960)
• Richard Cyert Carnegie Mellon
• Cohen and Marchs Garbage Can Model
• William Massey Stanford
• Convenience institutions, mass providers and
  Brand Name Universities

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Strategy in Academia

• Association and Affiliations
• ACE
• AAU
• CIC
• NASULGIC
• ASHE
• AAHE
• Society of College and University Planners
• Foundation Initiatives
• Ford Foundation
• Pew Charitable Trusts
• Carnegie Foundation for the Advancement of
  Teaching
• Journals
• New Directions in Higher Education
• Higher Education

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Michael RobertStrategy Pure and Simple 1993

• Distinctive Characteristics
• A very corporate view
• A focus on driving forces and communication
  issues
• Robert says while many driving forces are active
  in every organization, only one can be the most
  important and in turn the organizational
  driving force.

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Roberts strategic areas
Product/service concept Market type,
user/customer class Production
capacity/capability Technology/know-how
Sales/marketing method Distribution method
Natural resources Size/growth or Return/profit
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Roberts 7 Rules of Competition
The following are a set of rules that will
produce better results against your
competition. Rule 1 Control the
Sandbox Rule 2 Identify Which Competitors
Your Strategy Will Attract Rule 3 Anticipate
Each Potential Competitors Future Strategy Rule
4 Draw Competitive Profiles Rule 5 Manage
the Competitors Strategy Rule 6 Neutralize
the Competitors Areas of Excellence Rule 7
Choose Your Competitors Do Not Let Your
Competitors Choose You.
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George KellerAcademic Strategy - 1983
Traditions, Values, and Aspirations
Strengths and Weaknesses Academic and
Financial
Leadership Abilities and Priorities
ACADEMIC STRATEGY
Environmental Trends Threats and Opportunities
Market Preferences, Perceptions, and Directions
The Competitive Situation Threats and
Opportunities
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John BrysonStrategic Planning for Public and
Nonprofit Organizations - 1988

• Distinctive Characteristic
• Recognizes the unique stakeholder issues of the
  not for profit enterprise
• Citizens
• Volunteers
• The difficulty to reach goal congruence

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Stakeholder Map for a Government
Political Parties
Citizens
Governing Body
Financial Community
Other Governments
Future Generations

Interest Groups
Suppliers
GOVERNMENT
Competitors
Taxpayers
Service Recipients
Media
Unions
Employees
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Strategic Planning Process
Opportunities Threats
Strengths Weaknesses
Implementation
Strategy Formulation
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Brysons templates

• Stakeholder Analysis
• Mission Statement
• SWOT Analysis
• (Strength Weakness Opportunity Threat)
• Strategic issue identification worksheets
• Solution generation worksheets
• Dreams and Visions
• Barriers
• Actions
• Proposals, actions and action steps

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Stakeholders Analysis Worksheet
Stakeholder Criteria used by stakeholder to asses our performance Our judgment of our performance according to these criteria
1.
2.
3.
1.
2.
3.
1.
2.
3.
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George Morrisey Morrisey on Planning - 1996

• Distinctive characteristics
• Demonstrates the stages of planning
• Strategic thinking
• Long Range Planning
• Tactical Planning
• A focus on linking tactics to strategy
• Driving implementation issues
• An Excellent source of templates

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The Planning Process
Values
Key Results Areas
Key Strategic Areas
Mission
Critical Issue Analysis
Critical Issue Analysis
Key Perf. Indicators
Long-Term Objectives
Vision
Objectives
Strategic Action Plan
Action Plans
Strategy
Plan Review
Plan Implementation and Results
Strategic Thinking Long-Range
Planning Tactical Planning
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Critical Issue Analysis and Plan
Potential/Perceived Issue Date/Information Pos
sible Reasons Conclusion(s) Alternative Ways
to Address the Issue Champion Long-Term
Objective(s) Assumptions Major Actions
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Action Plan Format
Objective Objective Objective Objective Objective Objective Objective Objective
Action Steps Accountability Accountability Schedule Schedule Resources Resources Feedback Mechanism
Action Steps Primary Others Start Complete Money Time Feedback Mechanism

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Other Morrisey Templates

• Performance Measures
• Planning Assessment Checklist
• Planning to Plan
• Training, buy in, etc.

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Various models but a common process

• Appraise the competitive environment
• Political, Economic, Technical, Social
• Forecast environmental trends
• Ascertain critical success factors
• Evaluate the organizations strengths and
  weaknesses
• Identify strategic issues
• Establish and implement an action plan
• Measure results
• Develop feedback loops

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Templates and Examples Bryson
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Mission Statement Worksheet

• Who are we?
• In general, what are the basic social needs we
  exist to fill?
• In general, what do we want to do to recognize or
  anticipate and respond to these needs?
• What should our responses be to our key
  stakeholders?
• What is our philosophy and what are our core
  values?
• What makes us distinctive or unique?

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SWOT Analysis Worksheet

• Internal Strengths
• Internal Weaknesses
• External Opportunities
• External Threats

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Strategic Issue Identification Worksheet

• What is the issue? Be sure to phrase the issue as
  a question about which your organization can take
  some sort of action
• Why is this an issue? What is it about the
  conjunction of mission and mandates, external
  opportunities and threats, or internal strengths
  and weaknesses that makes this an issue?
• What are the consequences of not addressing this
  issue?

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Practical Alternatives, Dreams, or Visions
Worksheet

• What are the practical alternatives, dreams or
  visions we might pursue to address this strategic
  issue?

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Barriers Identification Worksheet

• What are the barriers to the realization of these
  alternatives, dreams, or visions?

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Major Proposal Worksheet

• What are the major proposals we might pursue
  either to achieve the practical alternatives,
  dreams, or visions directly or to overcome the
  barriers to their realizations?

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Major Actions Worksheet

• What major actions with existing staff and within
  existing job descriptions must be taken within
  the next year to implement the strategies or
  proposals?

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Action Steps Worksheet

• What action steps must be taken in the next six
  months to implement the proposals and who is
  responsible for the action step?
• ___ Person Responsible ____________________
• ___ Person Responsible ____________________
• ___ Person Responsible ____________________

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Templates and Examples Morrisey
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Examples of Key Performance Indicators
Examples of Key Performance Indicators Key
Results Areas Key Performance Indicators Return/
profit Return on investment Percentage
of return on sales Net profit before taxes
(dollars) Percentage of gross margin (by
product line) Productivity Dollars of sales
per employee Units per month (by product
line) Output per work-hour Output
per employee Overtime as percentage of
payrool Downtime Turnaround time
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Examples of Key Performance Indicators (2)
Examples of Key Performance Indicators
(continued) Key Results Areas Key Performance
Indicators Employee development Training
investment as percentage of sales Number
of employees on degree plan Cross-training
plan Number of backups per
position Number of employees with
implemented development plan
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Examples of Key Performance Indicators (3)
Examples of Key Performance Indicators
(continued) Key Results Areas Key Performance
Indicators Quality assurance Percentage of
first-time acceptance Yield Cost of
rework, scrap Percentage of error-free
completions (per shift, per
employee) Percentage of recidivism (in law
enforcement) Cross-functional Perce
ntage of on-time completions Integration Numbe
r of unresolved conflicts Average lead
time on support requests Specific joint
project agreements
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Examples of Key Performance Indicators (4)
Examples of Key Performance Indicators
(continued) Key Results Areas Key Performance
Indicators Research and Number of new
product ideas approved for development develop
ment Projected dollar value of approved
product ideas Number of new
applications for current products/servic
es Cost of RD investment ratio to total
budget
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Examples of Key Performance Indicators (5)
Examples of Key Performance Indicators
(continued) Key Results Areas Key Performance
Indicators Organizational Favorable mentions
in media Image Public information
programs Involvement in community In
terorganizational cooperative efforts Legislative
relations Response time to legislators In
quiries handled favorably Funding
approved Major programs approved
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Planning Assessment Checklist
Current Status Current Status Current Status Action Who and When
OK Need N/A
Preplanning Factors
Planning Process Model
Planning Roles Clarified
CEO Senior Management Team
Unit President
Planning Facilitator
Tactical Planning
Key Results Areas
Critical Issue Analysis
Key Performance Indicators
Objectives Action Plans
Plan Review Process
Additional Considerations
Cross-Functional Coordination
Unit Mission Statements Tactical Plans
Training
Plan Documentation Communication
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Referenced texts

• Strategy Pure and Simple, Michel
  Robert, ISBN 0-07-053131-5
• Strategic Planning for Public and NonProfit
  Organizations, John Bryson, ISBN
  1-55542-087-7

• Morrisey on Planning George L. Morrisey ISBN
  0-7879-0170-9 ISBN 0-7879-0169-5 ISBN
  0-7879-0168-7 http//www.morrisey.com