Strategic Planning “The Road to Future Gains in Performance” Strategic Planning • What Strategic Planning is not: – Only Performed at the Top of the Organization – The Job of the Planning Department – Trying to Predict the Future – Costs Too Much and – Takes Too Long – More Important to Develop the Budget than the Plan Why Focus on Strategic Planning in this course? Strategic Planning is our roadmap to future gains in performance • Organizations that understand planning translate strategies to actionable performance measures and link performance goals/targets to action plans (Tactical plans) • Action plans are aimed at improving performance • Action plans are linked to Priorities • Priorities support Organizational Strategies Baldrige Criteria Framework: A Systems Perspective Baldrige Criteria for Strategic Planning • Strategy Development (2.1) • Strategy Deployment(2.2) Strategic Planning • Core of Strategic Planning – Timeframe – Baseline Organizational Measures – Targets – Vehicles to attain the targets Customer Satisfaction (65% Top Box) Customer Satisfaction (78% Top Box) Employee Satisfaction (42 % Top Box Technology Employee Satisfaction (46% top Box) Efficiency $12.50 Unit Cost Enhancing Human Resources Efficiency $11.25 Unit cost Timeliness 24 hours Quality 3 Sigma Timeliness 12 hours Methods Changes Quality 4 Sigma Profit 128 M Profit 152 M Market Share 5% Market Share 5.5% 2006 2010 Mission and Vision Statements • What are the values of the organization? • What does it strive to achieve over the Planning cycle? • These are considered antecedents • Important for Organizational Affiliation • Not Important in achieving gains in Performance Improvement Phases of Strategic Planning • Strategy Formulation—Strategic Assessment • Strategy Development—Strategic Plan • Strategy Implementation—Business or Action Planning • Strategy achievement—Business Review Strategy Formulation (Strategic Assessment) • Objective: – Identify Trends Issues and Problems (TIPs) – TIPs will be facing the organization during the planning cycle – Strategies are created to respond to the TIPs – Some organizations utilize a SWOT analysis – Strengths, Weaknesses. Opportunities and Threats – TIPs are considered more Objective Strategy Formulation • TIPs are identified through the creation of: – Environmental Scans – Internal Scans – Competitive Risk Assessments Strategy Formulation • Environmental Scans identify potential TIPs based on: – Changing Customer Demographics – Economic Trends – Political Trends – Governmental trends (Regulations) – Cultural trends Strategy Formulation • Internal Scans identify: – Human Resource Trends (growth in attrition, voluntary retirement, other people issues) – Performance Trends (Improving or declining performance – New Personnel regulations government and internal regulations) Strategy Formulation • Competitive Risk Assessment identifies trends: – Competitor Changes/Improvements – Benchmark Comparisons Strategy Development (Creation of the Strategic Plan) • Development of the Strategic Plan: – Strategies to respond to TIPs – Priorities to identify: • New Technology • Human Resources Improvements and • Methods Changes – Resource Allocation to support the Priorities – Aimed at Improving Organization Performance Strategy Implementation • Creation of Business or Action Plans • Each Priority has an Top management owner and an Action Plan with milestone dates • Measures and Targets developed at the Process level to support organizational measures and targets Business Review Process • Monthly review of Priority Milestones • Monthly/regular review of performance changes—target achievement • Annual review/alteration of performance targets • Executive oversight to make course corrections Strategic Planning Cycle Summary • Annual review of Strategy Achievement • Annual review of Organizational Trends. Issues and Problems (Update the Scans) • Have the TIPs changes? • Do the Strategies Need to be adjusted • Have we achieved some of our priorities and need to create new ones • 3-5 Major Planning cycle review Strategic Planning “The Road to Future Gains in Performance” Strategic Planning • What Strategic Planning is not: – Only Performed at the Top of the Organization – The Job of the Planning Department – Trying to Predict the Future – Costs Too Much and – Takes Too Long – More Important to Develop the Budget than the Plan Why Focus on Strategic Planning in this course? Strategic Planning is our roadmap to future gains in performance • Organizations that understand planning translate strategies to actionable performance measures and link performance goals/targets to action plans (Tactical plans) • Action plans are aimed at improving performance • Action plans are linked to Priorities • Priorities support Organizational Strategies Baldrige Criteria Framework: A Systems Perspective Baldrige Criteria for Strategic Planning • Strategy Development (2.1) • Strategy Deployment(2.2) Strategic Planning • Core of Strategic Planning – Timeframe – Baseline Organizational Measures – Targets – Vehicles to attain the targets Customer Satisfaction (65% Top Box) Customer Satisfaction (78% Top Box) Employee Satisfaction (42 % Top Box Technology Employee Satisfaction (46% top Box) Efficiency $12.50 Unit Cost Enhancing Human Resources Efficiency $11.25 Unit cost Timeliness 24 hours Quality 3 Sigma Timeliness 12 hours Methods Changes Quality 4 Sigma Profit 128 M Profit 152 M Market Share 5% Market Share 5.5% 2006 2010 Mission and Vision Statements • What are the values of the organization? • What does it strive to achieve over the Planning cycle? • These are considered antecedents • Important for Organizational Affiliation • Not Important in achieving gains in Performance Improvement Phases of Strategic Planning • Strategy Formulation—Strategic Assessment • Strategy Development—Strategic Plan • Strategy Implementation—Business or Action Planning • Strategy achievement—Business Review Strategy Formulation (Strategic Assessment) • Objective: – Identify Trends Issues and Problems (TIPs) – TIPs will be facing the organization during the planning cycle – Strategies are created to respond to the TIPs – Some organizations utilize a SWOT analysis – Strengths, Weaknesses. Opportunities and Threats – TIPs are considered more Objective Strategy Formulation • TIPs are identified through the creation of: – Environmental Scans – Internal Scans – Competitive Risk Assessments Strategy Formulation • Environmental Scans identify potential TIPs based on: – Changing Customer Demographics – Economic Trends – Political Trends – Governmental trends (Regulations) – Cultural trends Strategy Formulation • Internal Scans identify: – Human Resource Trends (growth in attrition, voluntary retirement, other people issues) – Performance Trends (Improving or declining performance – New Personnel regulations government and internal regulations) Strategy Formulation • Competitive Risk Assessment identifies trends: – Competitor Changes/Improvements – Benchmark Comparisons Strategy Development (Creation of the Strategic Plan) • Development of the Strategic Plan: – Strategies to respond to TIPs – Priorities to identify: • New Technology • Human Resources Improvements and • Methods Changes – Resource Allocation to support the Priorities – Aimed at Improving Organization Performance Strategy Implementation • Creation of Business or Action Plans • Each Priority has an Top management owner and an Action Plan with milestone dates • Measures and Targets developed at the Process level to support organizational measures and targets Business Review Process • Monthly review of Priority Milestones • Monthly/regular review of performance changes—target achievement • Annual review/alteration of performance targets • Executive oversight to make course corrections Strategic Planning Cycle Summary • Annual review of Strategy Achievement • Annual review of Organizational Trends. Issues and Problems (Update the Scans) • Have the TIPs changes? • Do the Strategies Need to be adjusted • Have we achieved some of our priorities and need to create new ones • 3-5 Major Planning cycle review Strategic Planning “The Road to Future Gains in Performance” Strategic Planning • What Strategic Planning is not: – Only Performed at the Top of the Organization – The Job of the Planning Department – Trying to Predict the Future – Costs Too Much and – Takes Too Long – More Important to Develop the Budget than the Plan Why Focus on Strategic Planning in this course? Strategic Planning is our roadmap to future gains in performance • Organizations that understand planning translate strategies to actionable performance measures and link performance goals/targets to action plans (Tactical plans) • Action plans are aimed at improving performance • Action plans are linked to Priorities • Priorities support Organizational Strategies Baldrige Criteria Framework: A Systems Perspective Baldrige Criteria for Strategic Planning • Strategy Development (2.1) • Strategy Deployment(2.2) Strategic Planning • Core of Strategic Planning – Timeframe – Baseline Organizational Measures – Targets – Vehicles to attain the targets Customer Satisfaction (65% Top Box) Customer Satisfaction (78% Top Box) Employee Satisfaction (42 % Top Box Technology Employee Satisfaction (46% top Box) Efficiency $12.50 Unit Cost Enhancing Human Resources Efficiency $11.25 Unit cost Timeliness 24 hours Quality 3 Sigma Timeliness 12 hours Methods Changes Quality 4 Sigma Profit 128 M Profit 152 M Market Share 5% Market Share 5.5% 2006 2010 Mission and Vision Statements • What are the values of the organization? • What does it strive to achieve over the Planning cycle? • These are considered antecedents • Important for Organizational Affiliation • Not Important in achieving gains in Performance Improvement Phases of Strategic Planning • Strategy Formulation—Strategic Assessment • Strategy Development—Strategic Plan • Strategy Implementation—Business or Action Planning • Strategy achievement—Business Review Strategy Formulation (Strategic Assessment) • Objective: – Identify Trends Issues and Problems (TIPs) – TIPs will be facing the organization during the planning cycle – Strategies are created to respond to the TIPs – Some organizations utilize a SWOT analysis – Strengths, Weaknesses. Opportunities and Threats – TIPs are considered more Objective Strategy Formulation • TIPs are identified through the creation of: – Environmental Scans – Internal Scans – Competitive Risk Assessments Strategy Formulation • Environmental Scans identify potential TIPs based on: – Changing Customer Demographics – Economic Trends – Political Trends – Governmental trends (Regulations) – Cultural trends Strategy Formulation • Internal Scans identify: – Human Resource Trends (growth in attrition, voluntary retirement, other people issues) – Performance Trends (Improving or declining performance – New Personnel regulations government and internal regulations) Strategy Formulation • Competitive Risk Assessment identifies trends: – Competitor Changes/Improvements – Benchmark Comparisons Strategy Development (Creation of the Strategic Plan) • Development of the Strategic Plan: – Strategies to respond to TIPs – Priorities to identify: • New Technology • Human Resources Improvements and • Methods Changes – Resource Allocation to support the Priorities – Aimed at Improving Organization Performance Strategy Implementation • Creation of Business or Action Plans • Each Priority has an Top management owner and an Action Plan with milestone dates • Measures and Targets developed at the Process level to support organizational measures and targets Business Review Process • Monthly review of Priority Milestones • Monthly/regular review of performance changes—target achievement • Annual review/alteration of performance targets • Executive oversight to make course corrections Strategic Planning Cycle Summary • Annual review of Strategy Achievement • Annual review of Organizational Trends. Issues and Problems (Update the Scans) • Have the TIPs changes? • Do the Strategies Need to be adjusted • Have we achieved some of our priorities and need to create new ones • 3-5 Major Planning cycle review Strategic Planning “The Road to Future Gains in Performance” Strategic Planning • What Strategic Planning is not: – Only Performed at the Top of the Organization – The Job of the Planning Department – Trying to Predict the Future – Costs Too Much and – Takes Too Long – More Important to Develop the Budget than the Plan Why Focus on Strategic Planning in this course? Strategic Planning is our roadmap to future gains in performance • Organizations that understand planning translate strategies to actionable performance measures and link performance goals/targets to action plans (Tactical plans) • Action plans are aimed at improving performance • Action plans are linked to Priorities • Priorities support Organizational Strategies Baldrige Criteria Framework: A Systems Perspective Baldrige Criteria for Strategic Planning • Strategy Development (2.1) • Strategy Deployment(2.2) Strategic Planning • Core of Strategic Planning – Timeframe – Baseline Organizational Measures – Targets – Vehicles to attain the targets Customer Satisfaction (65% Top Box) Customer Satisfaction (78% Top Box) Employee Satisfaction (42 % Top Box Technology Employee Satisfaction (46% top Box) Efficiency $12.50 Unit Cost Enhancing Human Resources Efficiency $11.25 Unit cost Timeliness 24 hours Quality 3 Sigma Timeliness 12 hours Methods Changes Quality 4 Sigma Profit 128 M Profit 152 M Market Share 5% Market Share 5.5% 2006 2010 Mission and Vision Statements • What are the values of the organization? • What does it strive to achieve over the Planning cycle? • These are considered antecedents • Important for Organizational Affiliation • Not Important in achieving gains in Performance Improvement Phases of Strategic Planning • Strategy Formulation—Strategic Assessment • Strategy Development—Strategic Plan • Strategy Implementation—Business or Action Planning • Strategy achievement—Business Review Strategy Formulation (Strategic Assessment) • Objective: – Identify Trends Issues and Problems (TIPs) – TIPs will be facing the organization during the planning cycle – Strategies are created to respond to the TIPs – Some organizations utilize a SWOT analysis – Strengths, Weaknesses. Opportunities and Threats – TIPs are considered more Objective Strategy Formulation • TIPs are identified through the creation of: – Environmental Scans – Internal Scans – Competitive Risk Assessments Strategy Formulation • Environmental Scans identify potential TIPs based on: – Changing Customer Demographics – Economic Trends – Political Trends – Governmental trends (Regulations) – Cultural trends Strategy Formulation • Internal Scans identify: – Human Resource Trends (growth in attrition, voluntary retirement, other people issues) – Performance Trends (Improving or declining performance – New Personnel regulations government and internal regulations) Strategy Formulation • Competitive Risk Assessment identifies trends: – Competitor Changes/Improvements – Benchmark Comparisons Strategy Development (Creation of the Strategic Plan) • Development of the Strategic Plan: – Strategies to respond to TIPs – Priorities to identify: • New Technology • Human Resources Improvements and • Methods Changes – Resource Allocation to support the Priorities – Aimed at Improving Organization Performance Strategy Implementation • Creation of Business or Action Plans • Each Priority has an Top management owner and an Action Plan with milestone dates • Measures and Targets developed at the Process level to support organizational measures and targets Business Review Process • Monthly review of Priority Milestones • Monthly/regular review of performance changes—target achievement • Annual review/alteration of performance targets • Executive oversight to make course corrections Strategic Planning Cycle Summary • Annual review of Strategy Achievement • Annual review of Organizational Trends. Issues and Problems (Update the Scans) • Have the TIPs changes? • Do the Strategies Need to be adjusted • Have we achieved some of our priorities and need to create new ones • 3-5 Major Planning cycle review