Copy of Strategic Planning & Problem Solving

What is Strategic Planning ?

Officially… it is a management tool to help an organization continuously make risk-taking decisions systematically.

By focusing on the same goals, an organization can assess and adjust its direction in response to changes in the environment

STRATEGIC PLANNING

!. Organizes the efforts

needed to carry out decisions.

2.Take actions that will systematically guide what an

organization does and why.

3. Measure the results of decisions against expectations through

organized systematic feedback.

4. Focus on the future

Let's take a look at the elements of a strategic plan...

First...

• It is a road map or course of action for achieving desired results;

• Should be laid out before the first steps are taken;

• Is typically developed by committee

• Plays a vital role in all aspects of organizational future development.

Sucessful Strategic Planning Is:

1.Based on information

2.Scheduled

3.Supported by the

person "at the top".

4.Continued persistently

5.Integrated and

• comprehensive.

6.Focused

7.Adapted to the context

Components of a STRATEGIC PLAN:

1. Mission statement — the fundamental purpose

2. Situation analysis — examination of external and internal factors such as strengths, weaknesses, opportunities, and threats (SWOT)

3. Objectives — establishment of broad long-term goals

4. Strategy statement or action plan — a detailed management action plan with operational strategies

5. Tactics or short-term plans — specific tactics for day-to-day activities

6. Controls or measures of progress — assesses how individuals and groups are performing

Strategic Planning Steps

1. Environmental analysis

2. Critical process audit

3. Current resource inventory

4. Values clarification

5. Mission definition

6. Vision building

7. Strategic goal development

8. Strategy-to-action planning

9. Feedback system development

10. Reality check

11. Marketing the plan

12. Implementing, reviewing, and

adjusting the plan

Benefits of

Strategic Planning

Strategic planning serves a variety of purposes in organizations, including to:

1. Clearly define the purpose of the organization and to establish realistic goals and objectives consistent with that mission in a defined time frame within the organization’s capacity for implementation.

2. Communicate those goals and objectives to the organization’s constituents.

3. Develop a sense of ownership of the plan.

4. Ensure the most effective use is made of the organization’s resources by focusing the resources on the key priorities.

5. Provide a base from which progress can be measured and establish a mechanism for informed change when needed.

6. Listen to everyone’s opinions in order to build consensus about where the organization is going.

Other reasons include that strategic planning:

7. Provides clearer focus for the organization, thereby producing more efficiency and effectiveness.

8. Bridges staff/employees and the board of directors (in the case of corporations).

9. Builds strong teams in the board and in the staff/employees (in the case of corporations).

10. Provides the glue that keeps the board members together (in the case of corporations).

11.Produces great satisfaction and meaning among planners, especially around a common vision.

12. Increases productivity from increased efficiency and effectiveness.

13. Solves major problems in the organization.

Strategic Communication:

Strategic Communication is how organizations and individuals use communication to negotiate their role in society.

• Public relations is a central aspect of strategic communication and involves the study of how organizations utilize responsible behavior and two-way communication in order to influence opinions and behavior of key publics (employees, consumers, government, community, media) as well as to respond and adapt to the concerns of those publics.

• Strategic Communication includes the applied and theoretical sides of public relations as well as a broader focus on social influence including marketing, advertising/brand communication, public affairs and more.

Now...let's take a look at Problem Solving...

1. Strategic Analysis

This activity can include conducting some sort of scan, or review, of the organization's environment (for example, of the political, social, economic and technical environment). Planners carefully consider various driving forces in the environment, for example, increasing competition, changing demographics, etc. Planners also look at the various strengths, weaknesses, opportunities and threats (an acronym for this activity is SWOT) regarding the organization.

2. Setting Strategic Direction

Planners carefully come to conclusions about what the organization must do as a result of the major issues and opportunities facing the organization. These conclusions include what overall accomplishments (or strategic goals) the organization should achieve, and the overall methods (or strategies) to achieve the accomplishments. Goals should be designed and worded as much as possible to be specific, measurable, acceptable to those working to achieve the goals, realistic, timely, extending the capabilities of those working to achieve the goals, and rewarding to them, as well. (An acronym for these criteria is "SMARTER".)

At some point in the strategic planning process (sometimes in the activity of setting the strategic direction), planners usually identify or update what might be called the strategic "philosophy". This includes identifying or updating the organization's mission, vision and/or values statements. Mission statements are brief written descriptions of the purpose of the organization. Mission statements vary in nature from very brief to quite comprehensive, and including having a specific purpose statement that is part of the overall mission statement. Many people consider the values statement and vision statement to be part of the mission statement. New businesses (for-profit or nonprofit) often work with a state agency to formally register their new business, for example, as a corporation, association, etc. This registration usually includes declaring a mission statement in their charter (or constitution, articles of incorporation, etc.).

It seems that vision and values statements are increasingly used. Vision statements are usually a compelling description of how the organization will or should operate at some point in the future and of how customers or clients are benefiting from the organization's products and services. Values statements list the overall priorities in how the organization will operate. Some people focus the values statement on moral values. Moral values are values that suggest overall priorities in how people ought to act in the world, for example, integrity, honesty, respect, etc. Other people include operational values which suggest overall priorities for the organization, for example, to expand marketshare, increase efficiency, etc. (Some people would claim that these operational values are really strategic goals. Don't get hung up on wording for now.)

3. Action Planning

Action planning is carefully laying out how the strategic goals will be accomplished. Action planning often includes specifying objectives, or specific results, with each strategic goal. Therefore, reaching a strategic goal typically involves accomplishing a set of objectives along the way -- in that sense, an objective is still a goal, but on a smaller scale.

Often, each objective is associated with a tactic, which is one of the methods needed to reach an objective. Therefore, implementing a strategy typically involves implementing a set of tactics along the way -- in that sense, a tactic is still a strategy, but on a smaller scale.

Action planning also includes specifying responsibilities and timelines with each objective, or who needs to do what and by when. It should also include methods to monitor and evaluate the plan, which includes knowing how the organization will know who has done what and by when.

It's common to develop an annual plan (sometimes called the operational plan or management plan), which includes the strategic goals, strategies, objectives, responsibilities and timelines that should be done in the coming year. Often, organizations will develop plans for each major function, division department, etc., and call these work plans.

Usually, budgets are included in the strategic and annual plan, and with work plans. Budgets specify the money needed for the resources that are necessary to implement the annual plan. Budgets also depict how the money will be spent, for example, for human resources, equipment, materials, etc.