Strategic Planning Concepts

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 Measurement and Evaluation E valuation

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

Weaknesses

Opportunitie S-O strategies s

W-O strategies

Threats

W-T strategies

S-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 s trengths 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 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

Timing Level

Long term

Porter 5 Forces

Value Chain Innovation Process

Operation Process

Post Sales Process

Identification of client’s necessities

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

Satisfaction of  Client’s necessities

Services to the clients

Life cycle Sales & profit

Sales

Profit Invest & expenses

i    Product n  t  r   growth o  d    development u  c   t  i    o  n  

maturity

d    e  c   l    i    n  e  

os on ma r x – cycle

ro uc

e

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

Failure Deployment - Plan Completing Success

Failure

>Assign roles and responsibilities

>No accountability for deployment

>Establish priorities

>Too many goals, strategies, or objectives - no apparent priority

>Involve mid-level management as active participants

>Plan in a vacuum-functional focus

>Think it through - decide how to manage implementation

>No overall strategy to implement

>Charge mid-level management with aligning lower-level plans

>Make no attempt to link li nk with day-to-day operations

>Make careful choices about the contents of the plan and form it will take

>Not being thorough-glossing over the details

eys o Failure

uccess - ac s o Deployment - Communicating

Success

Failure

Assign roles and responsibilities

No accountability

Communicate the plan constantly

Never talk about the plan

and consistently Recognize the change process

Ignore the emotional impact of change

Help people through the change

Focus only on task accomplishment

process

Failure Implementing - I Success

Failure

Assign roles and responsibilities r esponsibilities

No accountability

Involve senior leaders

Disengagement from process

Define an infrastructure

Unmanaged activity

Link goal groups

Fragmented accomplishment of  objectives leads to sub-optimization

Phase integration of implementation actions with workload Involve everyone within the

Force people to choose between implementation and daily work; too many teams No alignment of strategies

Keys of Success - Facts of  Failure Implementing - II Success

Failure

Allocate resources for implementation

Focus only on short term need for  resources

Manage the change process

Ignore or avoid change

Evaluate results

No measurement system

Share lessons learned; acknowledge

Hide mistakes/lay blame;

successes through open and

limited/no communication

frequent communication

Failure Strategic Measurement - I Success

Failure

Assign roles and responsibilities r esponsibilities

No accountability

Use measurement to understand

Sub-optimization: focus only on

the organization

efficiencies

Use measurement to provide a

Use measures that provide no real

consistent viewpoint from which to

information on performance; use

gauge performance

too many measures

Use measurement to provide an

Use measurement to focus on the

integrated, focused view of the

bottom-line only

future

Keys of Success - Facts of  Failure Strategic Measurement - II Success Use measurement to communicate

Failure Use measurement to control

policy (new strategic direction) Update the measurement system

Never review measures

Use measurement to provide

Fail to use measurement to make

quality feedback to the strategic

strategic, fact-based decisions; use

management process

only for control

Failure Evaluation Success

Failure

Assign roles and responsibilities

No accountability

Recognize when to update the plan

Poor timing and not recognizing external forces

Modify strategic planning process to accommodate the more mature organization

Rigid application of strategic planning process; ignore lessons learned from previous efforts

Incorporate new leaders into the strategic planning process

Ignore impact of new leaders

Integrate measurement with strategic planning

Don't use measurement information

Use experienced strategic planning facilitators

Shortcut the process

easuremen an eva ua on – BSC

– BSC

easuremen an eva ua on – BSC

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. 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.

Mental Models: Models: 

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.

Five disciplines – Peter Senge 



Shared Vision: 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: Learning: 

Group interaction.



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

Five disciplines – Peter Senge 

Systems Thinking: 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 st ability 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