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					                 Strategic Planning


   Why is Strategic Planning so Important?

1. Limited and increasingly expensive resources

2. Real opportunities and threats?

3. Opportunity costs

4. Diversity of competition

5. Increasing Expectations

6. Responsibility and accountability

7. Internal and External Support
              -Ed Mahoney, MSU
                    Strategic Planning


2. Suggest or are linked to accomplishment benefits

3. Suggest or identify publics, customers or partners

4. Specific and measurable: guidance, evaluation

5. Feasible - Financial Technology, Staff,
  Marketing, Management

6. Give rise to alternatives: products, services...

7. Acceptable

8. Understandable



                    Ed Mahoney, MSU
                 Strategic Planning


    Strategy and Strategic Marketing Plans


Strategy = an integrated, feasible and manageable
sequence of internally consistent and externally
relevant resource allocation decisions.

The strategy establishes a framework/direction in
which it pursues its objectives.

A plan is the explicit documentation, description and
communication of vision, mission, and objectives.



                 Ed Mahoney, MSU
                 Strategic Planning


            Strategic Management

The continuous process of managing an organization
and its different functions such that it is consistent
with mission and achieves its objectives.

1. Stewardship of the vision
2. Hierarchy of objectives
3. Alignment of organizational structures, policies
and functional strategies and tactics with mission and
strategic objectives
4. Strategic investment
5. Performance measurement


                  Ed Mahoney, MSU
    Strategic Planning

 Strategic Planning Process

 1. Environmental Scanning

2. Internal Analysis and Audits

         3. S-W-0-T

         4. Mission

        5. Objectives

       6. Strategies

     7. Alignment - FIT

     8. Implementation

9. Performance Monitoring

    Ed Mahoney, MSU
                            Strategic Planning




            Mission                      Strategic
                                        Objectives


                  Example: Image


Portfolio       Marketing                     Service          Relationships

            Pricing          Communication


               Newsletter        Brochure           Display
               Objectives        Objectives       Objectives




                            Ed Mahoney, MSU
                      Strategic Planning




                    Mission & Objectives


                      Board & Director

                                            Portfolio
Financial Mgmt.
                                           • Facilities   Partnerships
Human Resource                             • Services
Mgmt.               Marketing                              Internal
                                           • Events        External
NR/Facility Mgmt.                          • Programs
Visitor Mgmt.                              • Products




                    Evaluation & Control

                          Ed Mahoney, MSU
              Strategic Planning




 External                          Opportunities
                                     Threats
  Envir.
                                     Control
               Strategic           Vulnerability
                Audit
 Internal
                                     Strengths
Assessment
                                    Weaknesses


                                    Objectives &
                                      Strategies

                              Management Marketing

                                   Implementation


             -Ed Mahoney, MSU
  Strategic Planning


       Envir.Scanning

              Opportunities
Internal       Threats
Analysis       Strengths      S.W.O.T
              Weaknesses



             Stewardship

               Mission




                                 Systems
             Objectives



              Strategies
           Marketing, Finance
            Human Resources



            Monitoring
            Performance


     Ed Mahoney, MSU
                        Strategic Planning


         Strategic Planning and Concept of Fit

Fit relates to the extent to which:

•   various organizational objectives
•   facilities, services and products
•   different function: marketing, maintenance, security
•   different activities comprising functions, e.g., marketing mix-
      pricing, service quality, marketing communications

work together to:

•    accomplish mission and strategic objectives
•    create and deliver customer relevant values
•    enhance relationships with priority publics
•    enhance organizational image
•    build future capability
                            Ed Mahoney, MSU
                Strategic Planning




Environment          Strategic           Functional
    Fit                Fit                  Fit


Competency                                 Financial
                        Future
   Fit                                        Fit
                         Fit
                                     Marketing
        Portfolio                     Mix
          Fit                          Fit
                        Market
                         Fit

                    Ed Mahoney, MSU
                  Strategic Planning




                       Concept of
                         Future
                        publics
                         image
                     products-services
                           Financing
                         Fund Raising
Concept of Fit            Partnerships        Concept of Management
                    Product-Service Portfolio
                           Marketing
                        Public Relations
How products                                   How it will
                            Staffing
services, functions                            fund, organize,
activities and                                 evaluate, recruit,
partnerships fit                               motivate...


                    Ed Mahoney, MSU
           Strategic Planning




                Skills


        Strategy      Structure
Staff                             Shared
                                  Values
               Systems

              Style of
             Management



    Seven-S Framework


           Ed Mahoney, MSU
                     Strategic Planning



Economics
                                                      Technology


                        Competition




       Volunteer
                      Organization        Customers
      Contributors




                          Partners
Culture                                           Demographics


                      -Ed Mahoney, MSU
                    Strategic Planning


 S-W-O -T Analysis                  W-O-T- S UP

Strength - An attribute, skill or relationship that enhances an
organization’s ability to achieve mission and enhance its future
position.

Weakness - An attribute, skill or relationship that reduces an
organization’s ability to achieve mission and limits its future
position.

Opportunity - A change in the external environment that an
organization can capitalize on to achieve mission and/or enhance
its future capability.

Threat - A change in external environment that inhibits/lessens an
organizations ability to achieve mission and/or enhance its future
capability.


                -Ed Mahoney, MSU
                        Strategic Planning


                  Environmental Scanning

Analyzing [trends] in relevant environmental factors that will
impact on an organizations ability to accomplish its
purpose/mission, objectives, functional strategies, and position
itself for future success.

The external environment is exogenous to the organization.

A primary purpose of environmental scanning:

1. Information to identify and assess opportunities and threats.

2. Determine organizational vulnerabilities.

3. Positioning strategies.

4. Market[publics and partnerships].

                      -Ed Mahoney, MSU
                   Strategic Planning


                  Strategic Audits

Analysis of performance and whatever seriously affects
it. The aim is to enhance relevance, quality and
efficiency of activities, programs, products, services.

1. Environment Context that have potential impact on
   organizational mission, objectives, capabilities,
   products, relationships.

2. Performance

3. Future contribution, relevance, and feasibility

4. Forum for sharing perspectives and insights.
                  Ed Mahoney, MSU
                            Strategic Planning



                                      Organizational Capabilities

                            High             Medium      Low
Market/Activity Potential




                                 Ed Mahoney, MSU
                                       Strategic Planning

                            Current and Future Performance of
                                        F-P-P-S


                   High
Current Revenues

                   Low




                          Low Future Growth Potential       High

                                   Ed Mahoney, MSU
                                   Strategic Planning


 Strategic
Importance




                                     Programming
     Fund Raising

                    Partnerships




                                                   Marketing
                                     Traditional




                                                               Events
                          Organizational Competencies

                                     Ed Mahoney, MSU
                     Strategic Planning


                                   Public Evaluated
                                                      More
Public Important        Poorer      No Difference     Better
  Maintenance

  Programming

  Visitor Security


  Visitor Services

  Interpretation

  Accessibility


  Marketing


                          Ed Mahoney, MSU
Strategic Planning




OPPORTUNITIES          THREATS


  New generation      No technology
  of folkies          capabilities




                      Finance
  Fundraising
                      Member Services




    Ed Mahoney, MSU
                   Strategic Planning

                 Mission Statement

A statement of purpose and vision.

It should be future oriented, not a description of
current purpose and activities. It should be developed
in the context of the “expected future.”

The mission statement should frame the objectives,
functional strategies and tactics.

The mission statement should present a challenge.

An organization’s mission statement must communicate,
and enlist support for its mission and vision.
                   Ed Mahoney, MSU
       Strategic Planning




                            2005
          Mission
       Priority publics
       Beliefs
       Portfolio
       Technologies
       To survive and
        be successful
       Desired Image



1998


       Ed Mahoney, MSU
                  Strategic Planning




        Benefits of Strategic Objectives


1. Defines tangible results - strategic results

2. Enables assessment and marketing of effectiveness

3. Direction and accountability - not just hobbies and
activities

4. Stress potential and recruits expertise.

5. Sets stakeholder expectations

                Ed Mahoney, MSU
                      Strategic Planning


Objective:

1. Increase member awareness of organizational strategies and
recruit their expertise and involvement in activities in support of
those strategies

                            OR?

          2. Develop and distribute a newsletter.



            Compare and contrast two objectives




                   -Ed Mahoney, MSU
           Strategic Planning




            Strategic Audit
                Mission
              Objectives            “Team”
Culture
                                   New
   Re-Design
                 Strategic      Processes &
  Organization                  Approaches
             Management
  Values         Re-Configure
                                 Capabilities
                   Portfolio




           -Ed Mahoney, MSU
                    Strategic Planning



              Organizational Strategy(ies)
1. Creation and satisfactions of customers/members/client

2. Creation of important value(s)

3. Identification of market niches and important purposes

4. Development and application of processes and methods

5. Understand and avoid direct competition

6. Motivation of people and focus of resources toward
   important purposes.

                   -Ed Mahoney, MSU
                           Strategic Planning


                               Strategy
     An approach to acquiring and using resources within
     the context of the environment in order to achieve
     mission and objectives of an organization.

                                 Tactic
       Means to carry out strategy. Any strategy can be viewed
       as a tactic for a higher order strategy.



                           Organizational
Marketing                    Strategy              Fund Raising


 Pricing     Positioning




                             Ed Mahoney, MSU
                      Strategic Planning


     Creating and Sustaining Value Added Advantage
Advantages
Value Added


              Program         Management         Packaging                 Visitors &
 Design        Facility       Law Enforcement      Pricing                  Publics
              Elements        Maintenance        Promotion
                              Interpretation
                                                                           Perceptions




                                                •One price to all
                                                •Price discourages some
                                                  market segments
                                                •Only publicity
 Disadvantages                                  •Not packaged with other
                                                 attractions
 Value Deleting


                          Ed Mahoney, MSU
         Strategic Planning


        Portfolio Strategy
       1998 PORTFOLIO

                       S           F       S
   F
                               P
             F
   P                       F



                               P           P       P
 P S               P                           F
  F P                      F
                                       S           P
P
          2005 Portfolio
             -Ed Mahoney, MSU
                  Strategic Planning

                    Life Cycles
Facilities- Events -Products - Services - Organizations


                                                    Different

                                                  •Customers


                                                  •Management


                                                  •Marketing




                                       Maturity


                                                  TIME
                    Ed Mahoney, MSU
          Strategic Planning

                                                           Future
                                                          Capacity

                                                             &
                                                          Potential




Decline   Maturity Late Growth Early Intro.   Potential
                               Growth


            -Ed Mahoney, MSU
                                    Strategic Planning

                                    Facilities-Services-Events
                         Existing           New- Related   New-Unrelated

         Existing
         New- Related
Market

         New-Unrelated




                                    -Ed Mahoney, MSU
                                 Strategic Planning


                                 Evaluate Potential Strategies
Alternative Strategies/Tactics




                                 Ed Mahoney, MSU
                   Strategic Planning




Positive     Vulnerable                   Strategy


             Tactics
             • Neutralize               Opportunity
             • Minimize


           Low                                          High
                 Organization’s Influence Over Factor




                       -Ed Mahoney, MSU
                                    Strategic Planning




                       High
                               Vulnerable                    Strategy
Strategic Importance
Mission -Objectives



                              •Monitor                   •Monitor
                              •Contingency Plans         •Review of Strategies



                                                            Continuous
                               Non-issues
                                                            Fine -Tuning
                       Low
                              Low                                                High
                                        Organizational Control

                                      -Ed Mahoney, MSU
                 Strategic Planning


               Strategic Audit

1. Environmental scan

2. Performance analysis/audits including portfolio
of products, services, programs….

3. S-W-O-T

4. Importance and vulnerability analyses

5. Strategic implications



                -Ed Mahoney, MSU
              Strategic Planning




Strength
Opportunity
Threat
Weakness

Statement of Issue



Strategic Implications




              -Ed Mahoney, MSU
   Strategic Plan                 1997              2000
I. Situation Assessment               External

1. Environment                 Demographic
                               Life-styles

2. Audits                      Technology
                          Organization
                               Competition
                               Economic/Fiscal
3. SWOT                        Legal
                               Political




II Mission Statement
1. Market-publics
2. F-P-P-Ss
3. Technologies                           Opportunities   Threats
4. Survival/success
5 Image/identity            Strengths
6. Philosophies                                                     2000

                           Weaknesses
III. Organizational
     Objectives
    Strategic Plan                          Marketing


1V. Functional strategies

                                           Fund Raising
V. Monitoring and                          & Financial
                                           Management
   Evaluation



                                           Board-Staff
                            Organization


                                            Conference
 CURRENT &
                         STRATEGIC
 EXPECTED
                           PLANS
ENVIRONMENT                                                   NEW F-P-Ps                     NEW F-P-P CONCEPTS
                                                             OPPORTUNITIES               •   FIT WITH MISSION
ECONOMIC                 • MISSION                      •   MARKET/NEED CHANGES          •   DESIRED RESULT/OBJECTIVE
DEMOGRAPHICS             • OBJECTIVES                                                    •   MARKETS
                                                        •   CHANGES IN THE
                                                                                         •   MARKET NEEDS/DESIRES        FEASIBILITY OF
LIFE STYLES              • POSITIONING                      ORGANIZATIONS
                                                                                         •   SIMILAR OFFERINGS
TECHNOLOGY                                              •
                                                            OBJECTIVES
                                                            CHANGES IN F-P-P LINES       •   F-P-P ATTRIBUTES           PROPOSED CHANGES
“COMPETITION”                                               OF OTHER ORGANIZATIONS       •   RESOURCES REQUIRED
                                                        •   TECHNOLOGY                   •   IMPACTS ON OTHER F-P-Ps
                                                        •   RECOMMENDATIONS              •   FINANCING

                                                                                                                            • RESOURCE CAPABILITY
                                                                                                                            • MARKET FEASIBILITY
                                                                                                                            • ECONOMIC FEASIBILITY
                                                                                                                            • TECHNICAL
                                                                                                                            FEASIBILITY
                                                                                                                            • POLITICAL FEASIBILITY
                                                                                                                            • LEGAL FEASIBILITY
                                         F-P-P PORTFOLIO ANALYSIS                                                           • PR FEASIBILITY


                                                    ESTABLISH CRITERIA
    F-P-P AND MARKETING
    DESCRIPTION & AUDITS                    •FIT WITH MISSION
                                            •ORGANIZATIONAL OBJECTIVES
                                            •MARKET SIZE & MARKET TRENDS
                                            •EXPECTATIONS/NEEDS
F-P-P DESCRIPTION & AUDIT                   •CUSTOMER/USER SATISFACTION
                                            •CAPABILITIES - RESOURCE, STAFF
                                            •COST-OPERATING AND CAPITAL
•   CUSTOMERS/USERS
                                            •PARTNERSHIP POTENTIAL
•   PERFORMANCE - OBJECTIVES                •SUBSTITUTES/COMPETITION
•   SATISFACTION -”QUALITY”                                                                                             F-P-P LINE & CONSISTENT
•   CURRENT CONDITION                                                                                                   MARKETING STRATEGIES
•   NEEDED IMPROVEMENTS
•   OPERATING COSTS
•   SUBSTITUTES/COMPLEMENTS
                                                                          ASSESS EXISTING                                           F-P-P LINE
•   STAFFING
•
                                                                            F-P-Ps AND
    TECHNOLOGY                                                                                                          •   NEW F-P-Ps
•   REVENUES/CONTRIBUTIONS                                               NEW F-P-P CONCEPTS                             •   F-P-P MODIFICATIONS
                                                                                                                        •   CLOSINGS
                                                                                                                        •   F-P-P PARTNERSHIPS
                                                                                                                        •   PRIVATIZATION

       MARKETING AUDIT
•   TARGET MARKETS?
•   AWARENESS/ PERCEPTIONS                                                           POTENTIAL F-P-P
•   MARKETING OBJECTIVES                                                               CHANGES
•   FEES/CHARGES                                                                • CLOSE
•   COMMUNICATIONS                                                              • DOWN-SCALE                            MARKETING STRATEGIES
                                                                                • IMPROVEMENT
•   PROMOTIONS                                                                  • RE-POSITIONING
•   ACCESSIBILITY                                                                                                       • RE-POSITIONING
                                                                                • NEW F-P-Ps
                                                                                                                        • DE-MARKETING
•   EVALUATION(S)                                                               • PARTNERSHIP
                                                                                • PRIVATIZATION                         • NEW F-P-P MARKETING
•   SERVICE STRATEGY                                                                                                    • COOPERATIVE MARKETING
•   COOPERATIVE MARKETING
               Strategic Planning


  P&R PORTFOLIO MANAGEMENT
1. NEW PROGRAMS, FACITIES, EVENTS, SERVICES,

2. ENHANCEMENT/CHANGE EXISITING
   PROGRAMS, FACILITIES, EVENTS, SERVICES

3. DROP/ABANDON EXISITING
   PROGRAMS, FACILITIES, EVENTS, SERVICES

4. PARTNER TO PROVIDE EXISITING OR
   POTENTIAL PROGRAMS, FACILITIES, EVENTS,
   SERVICES

5. CONTRACT OR SUBCONTRACT EXISITING
   OR POTENTIAL PRODUCTS, EVENTS,
   SERVICES, ACTIVITIES

6. PRIVATIZE

               -Ed Mahoney, MSU
              Strategic Planning

Factors in Managing Portfolio

1. Revenues and cash flow
2. Risk
3. Sustainability and opportunities for growth
4. Synergy
        shared resources
        related knowledge and skill
        shared image
        additional market(s)
        greater perceived market value
5. Contribution vs. cost
6. Desired organizational image



             -Ed Mahoney, MSU
                Strategic Planning



F-P-P-S PORTFOLIO DECISION CRITERIA

1. ORGANIZATIONAL MISSION & OBJECTIVES

2. SYNERGY WITH OTHER PRODUCTS, PROGRAMS, ACTIVITIES

3. CURRENT AND EXPECTED FUTURE CAPACITY TO DEVELOP,
   MANAGE, MARKET….

4. RESOURCE GENERATION CAPACITY

5. SUSTAINABLE MARKET FEASIBILITY

6. CURRENTAND LIKELY FUTURE COMPETITION/SUBSTITUTES

7. “RETURN” ON INVESTMENT


              -Ed Mahoney, MSU
                        Strategic Planning



                         Weights and Evaluations


    Contribution Strategic  Market                 Investment    Revenues
                                     Competition                             Payback
     to Mission Objectives Potential                Required    Amount -Flow

      9            8         7        6 Weights       6            5          4
1      +            +         +          +             -           +           -
2      +            +         +          -             -           +           -
3      +            +         +          +             -           +           +
4      -            -         +          -             -           +           +
5      -            -         -          -             -           -           -
6      -            -         +          -             -           +           +
7      -            -         -          -             -           -           -

                          -Ed Mahoney, MSU

				
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