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Strategic-Planning-Concepts

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					Some Concepts to Help the Development of a Strategic Planning
April 2008 Mário Luís Tavares Ferreira

Strategic Planning
Goals / Objectives

SWOT Analysis

Strategy

Implementation

Measurement and Evaluation

SWOT
Internal Environment Strengths Weaknesses World class product Technical support Financial resources Internal processes Know-how Channels network External Environment Opportunities Threats Water & Energy crises Competitors market share Environment awareness Euro X Dollar Productivity improvement Technology development

TOWS matrix
Strengths Opportunitie S-O strategies s Threats S-T strategies Weaknesses W-O strategies W-T strategies

S-O strategies pursue opportunities that are a good fit to the companies strengths. W-O strategies overcome weaknesses to pursue opportunities. S-T strategies identify ways that the firm can use its strengths to reduce its vulnerability to external threats. W-T strategies establish a defensive plan to prevent the firm's weaknesses from making it highly susceptible to external threats.

PEST analysis
A

scan of the external macro-environment in which the company wants to operate (or operates) and can be expressed in terms of the following factors:
   

Political Economic Social Technological

Ninety ways to measure demand (6 x 5 x 3) Geographical Level
World Region Country Territory Client Total sales Sector sales

Product Level

Company’s sales Product lines Product config Product items Short term Medium term Long term

Timing Level

Porter 5 Forces

Value Chain
Innovation Process Identification of client’s necessities Operation Process Post Sales Process Satisfaction of Client’s necessities

Market products / Delivery identification products products / services and services creation services definition

Services to the clients

Life cycle
Sales & profit Sales

Profit Invest & expenses

i Product n
development

tro

du

growth

maturity

de

cli n

ct

e

io

n

Boston matrix – Product life cycle

Directional policy matrix or GE-McKinsey matrix

The diameter of each pie is proportional to the Volume or Revenue accruing to each Segment, and the solid slice of each ‘pie’ represents the share of the market enjoyed by the Company.

S curve

Management

 Management,

control and evaluation

Keys of Success - Facts of Failure
Deployment - Plan Completing Success Failure
>Assign roles and responsibilities >Establish priorities >No accountability for deployment >Too many goals, strategies, or objectives - no apparent priority >Plan in a vacuum-functional focus

>Involve mid-level management as active participants >Think it through - decide how to manage implementation >Charge mid-level management with aligning lower-level plans >Make careful choices about the contents of the plan and form it will take

>No overall strategy to implement

>Make no attempt to link with day-to-day operations >Not being thorough-glossing over the details

Keys of Success - Facts of Failure
Deployment - Communicating Success
Assign roles and responsibilities Communicate the plan constantly and consistently Recognize the change process Help people through the change process

Failure
No accountability Never talk about the plan

Ignore the emotional impact of change Focus only on task accomplishment

Keys of Success - Facts of Failure
Implementing - I Success
Assign roles and responsibilities Involve senior leaders Define an infrastructure Link goal groups

Failure
No accountability Disengagement from process Unmanaged activity Fragmented accomplishment of objectives leads to sub-optimization Force people to choose between implementation and daily work; too many teams No alignment of strategies

Phase integration of implementation actions with workload Involve everyone within the organization

Keys of Success - Facts of Failure
Implementing - II Success
Allocate resources for implementation

Failure
Focus only on short term need for resources Ignore or avoid change No measurement system Hide mistakes/lay blame; limited/no communication

Manage the change process Evaluate results Share lessons learned; acknowledge successes through open and frequent communication

Keys of Success - Facts of Failure
Strategic Measurement - I Success Failure
Assign roles and responsibilities Use measurement to understand the organization Use measurement to provide a consistent viewpoint from which to gauge performance Use measurement to provide an integrated, focused view of the future No accountability Sub-optimization: focus only on efficiencies Use measures that provide no real information on performance; use too many measures Use measurement to focus on the bottom-line only

Keys of Success - Facts of Failure
Strategic Measurement - II Success
Use measurement to communicate policy (new strategic direction) Update the measurement system Use measurement to provide quality feedback to the strategic management process

Failure
Use measurement to control

Never review measures Fail to use measurement to make strategic, fact-based decisions; use only for control

Keys of Success - Facts of Failure
Evaluation Success
Assign roles and responsibilities Recognize when to update the plan

Failure
No accountability Poor timing and not recognizing external forces Rigid application of strategic planning process; ignore lessons learned from previous efforts Ignore impact of new leaders

Modify strategic planning process to accommodate the more mature organization

Incorporate new leaders into the strategic planning process Integrate measurement with strategic planning Use experienced strategic planning facilitators

Don't use measurement information Shortcut the process

Measurement and evaluation – BSC

Measurement and evaluation – BSC

Measurement and evaluation – BSC

Measurement and evaluation BSC

Five disciplines – Peter Senge


Personal Mastery:




Aspiration involves formulating a coherent picture of the results people most desire to gain as individuals, alongside a realistic assessment of the current state of their lives today. Learning to cultivate the tension between vision and reality can expand people's capacity to make better choices, and to achieve more of the results that they have chosen. Reflection and inquiry skills is focused around developing awareness of the attitudes and perceptions that influence thought and interaction. By continually reflecting upon, talking about, and reconsidering these internal pictures of the world, people can gain more capability in governing their actions and decisions.



Mental Models:




Five disciplines – Peter Senge
 Shared
 

Vision:

Establishes a focus on mutual purpose. People learn to nourish a sense of commitment in a group or organization by developing shared images of the future they seek to create, and the principles and guiding practices by which they hope to get there.

 Team
 

Learning:

Group interaction. Through techniques like dialogue and skillful discussion, teams transform their collective thinking, learning to mobilize their energies and actions to achieve common goals, and drawing forth an intelligence and ability greater than the sum of individual members' talents.

Five disciplines – Peter Senge


Systems Thinking:






People learn to better understand interdependency and change, and thereby to deal more effectively with the forces that shape the consequences of our actions. Systems thinking is based upon a growing body of theory about the behavior of feedback and complexity - the innate tendencies of a system that lead to growth or stability over time. To help people see how to change systems more effectively and how to act more in tune with the larger processes of the natural and economic world.

Project management processes

Project management – a process

Project management – process chain

Project management – risk analysis


				
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