Strategic Planning and the Planning Process Planning in

Strategic Planning and the Planning Process Planning in the Academy

Strategy and Planning – History and Definitions Ø Of military origin, applied to a business setting. Ø In Chinese – “Heiho” Ø “Method of the soldier” Ø Resources, goals, capabilities, dominance Ø Strategy in the business setting has matured and grown from these beginnings

James Bryan Quinn Ø A strategy is a pattern or plan that integrates an organization’s major goals, polices, and action sequences into a cohesive whole. A wellformulated strategy helps to marshal and allocate an organization’s resources into a unique and viable posture based on its relative internal competences and shortcomings, anticipated changes in the environment and contingent moves by intelligent opponents.

Henry Mintzberg Ø “A pattern in a stream of decisions” Ø “Position, perspective, pattern, plan” Ø Intended (The play book) Ø Deliberate (Following the play book) Ø Emergent (Fumble!) Ø Unrealized (Punt on 4 th down) Ø Realized (The outcome of the game)

Two more definitions Ø Porter: ØDecisions that lead to a unique position ØWhat you do and don’t do ØA fit between firm actions and the environment. Ø Robert ØA “picture” of the products, customers, industry segments and geography you will compete in. A future vision of the firm.

Strategy and Planning - the educational context Ø Blau, Boyer, Astin, Bloom, Birnbaum Ø Clark Kerr – Berkeley and the California System Ø “The status quo is the only solution that cannot be vetoed. ” Ø "When `the borders of the campus are the boundaries of our state, ' the lines dividing what is internal from what is external become quite blurred; taking the campus to the state brings the state to the campus. " (1960) Ø Richard Cyert – Carnegie Mellon Ø Cohen and March’s “Garbage Can Model” Ø William Massey – Stanford Ø Convenience institutions, mass providers and “Brand Name” Universities

Strategy in Academia Ø Association and Affiliations Ø ACE Ø AAU Ø CIC Ø NASULGIC Ø ASHE Ø AAHE Ø Society of College and University Planners Ø Foundation Initiatives Ø Ford Foundation Ø Pew Charitable Trusts Ø Carnegie Foundation for the Advancement of Teaching Ø Journals Ø New Directions in Higher Education Ø Higher Education

Michael Robert Strategy: Pure and Simple 1993 Ø Distinctive Characteristics ØA very “corporate” view ØA focus on driving forces and communication issues ØRobert says while many driving forces are active in every organization, only one can be the most important – and in turn the organizational “driving force”.

Roberts’ strategic areas: • • Product/service concept Market type, user/customer class Production capacity/capability Technology/know-how Sales/marketing method Distribution method Natural resources Size/growth or Return/profit

Robert’s 7 Rules of Competition The following are a set of rules that will produce better results against your competition. Rule 1: Control the “Sandbox” Rule 2: Identify Which Competitors Your Strategy Will Attract Rule 3: Anticipate Each Potential Competitor’s Future Strategy Rule 4: Draw Competitive Profiles Rule 5: Manage the Competitor’s Strategy Rule 6: Neutralize the Competitor’s Areas of Excellence Rule 7: Choose Your Competitors; Do Not Let Your Competitors Choose You.

George Keller Academic Strategy - 1983 Traditions, Values, and Aspirations Strengths and Weaknesses: Academic and Financial Leadership: Abilities and Priorities ACADEMIC STRATEGY Environmental Trends: Threats and Opportunities Market Preferences, Perceptions, and Directions The Competitive Situation: Threats and Opportunities

John Bryson Strategic Planning for Public and Nonprofit Organizations - 1988 Ø Distinctive Characteristic ØRecognizes the unique stakeholder issues of the not for profit enterprise ØCitizens ØVolunteers ØThe difficulty to reach goal congruence

Stakeholder Map for a Government Governing Body Political Parties Citizens Financial Community Other Governments Future Generations Suppliers Interest Groups GOVERNMENT Competitors Taxpayers Service Recipients Media Employees Unions

Strategic Planning Process Forces-Trends Customers Competitors - Collaborators 4 External Environment 2 Opportunities Threats Mandates 1 Initial Agreement Mission/ Values 3 6 Strategic Issues 7 Strategies 8 Vision of Success Strengths Weaknesses A c t i o n 5 Internal Environment Resources Present Strategy Performance Strategy Formulation Implementation Results

Bryson’s templates Ø Stakeholder Analysis Ø Mission Statement Ø SWOT Analysis Ø (Strength Weakness Opportunity Threat) Ø Strategic issue identification worksheets Ø Solution generation worksheets Ø Dreams and Visions Ø Barriers Ø Actions Ø Proposals, actions and action steps

Stakeholders Analysis Worksheet Stakeholder Criteria used by stakeholder to asses our performance 1. 2. 3. Our judgment of our performance according to these criteria

George Morrisey on Planning - 1996 Ø Distinctive characteristics ØDemonstrates the stages of planning ØStrategic thinking ØLong Range Planning ØTactical Planning ØA focus on linking tactics to strategy ØDriving implementation issues ØAn Excellent source of templates

Strategic Thinking Key Strategic Areas Long-Range Planning Plan Review Plan Implementation and Results Tactical Planning Action Plans Objectives Key Perf. Indicators Critical Issue Analysis Key Results Areas Strategic Action Plan Long-Term Objectives Critical Issue Analysis Strategy Vision Mission Values The Planning Process

Critical Issue Analysis and Plan Potential/Perceived Issue: Date/Information: Possible Reasons: Conclusion(s): Alternative Ways to Address the Issue: Champion: Long-Term Objective(s): Assumptions: Major Actions:

Action Plan Format Objective: Action Steps Accountability Primary Others Schedule Start Complete Resources Money Time Feedback Mechanism

Other Morrisey Templates Ø Performance Measures Ø Planning Assessment Checklist Ø“Planning to Plan” ØTraining, buy in, etc.

Various models but a common process Ø Appraise the competitive environment Ø Political, Economic, Technical, Social Ø Forecast environmental trends Ø Ascertain critical success factors Ø Evaluate the organization’s strengths and weaknesses Ø Identify strategic issues Ø Establish and implement an action plan Ø Measure results Ø Develop feedback loops

Templates and Examples Bryson

Mission Statement Worksheet 1. Who are we? 2. In general, what are the basic social needs we exist to fill? 3. In general, what do we want to do to recognize or anticipate and respond to these needs? 4. What should our responses be to our key stakeholders? 1. 2. 3. 5. What is our philosophy and what are our core values? 6. What makes us distinctive or unique?

SWOT Analysis Worksheet Ø Internal Strengths 1. 2. Ø Internal Weaknesses 1. 2. Ø External Opportunities 1. 2. Ø External Threats 1. 2.

Strategic Issue Identification Worksheet Ø What is the issue? Be sure to phrase the issue as a question about which your organization can take some sort of action Ø Why is this an issue? What is it about the conjunction of mission and mandates, external opportunities and threats, or internal strengths and weaknesses that makes this an issue? Ø What are the consequences of not addressing this issue?

Practical Alternatives, Dreams, or Visions Worksheet Ø What are the practical alternatives, dreams or visions we might pursue to address this strategic issue? 1. 2. 3.

Barriers Identification Worksheet Ø What are the barriers to the realization of these alternatives, dreams, or visions? 1. 2. 3.

Major Proposal Worksheet Ø What are the major proposals we might pursue either to achieve the practical alternatives, dreams, or visions directly or to overcome the barriers to their realizations? 1. 2. 3.

Major Actions Worksheet Ø What major actions with existing staff and within existing job descriptions must be taken within the next year to implement the strategies or proposals? 1. 2. 3.

Action Steps Worksheet Ø What action steps must be taken in the next six months to implement the proposals and who is responsible for the action step? 1. ___ Person Responsible __________ 2. ___ Person Responsible __________ 3. ___ Person Responsible __________

Templates and Examples Morrisey

Examples of Key Performance Indicators Key Results Areas Return/profit Productivity Key Performance Indicators Return on investment Percentage of return on sales Net profit before taxes (dollars) Percentage of gross margin (by product line) Dollars of sales per employee Units per month (by product line) Output per work-hour Output per employee Overtime as percentage of payrool Downtime Turnaround time

Examples of Key Performance Indicators (2) Examples of Key Performance Indicators (continued) Key Results Areas Key Performance Indicators Employee development Training investment as percentage of sales Number of employees on degree plan Cross-training plan Number of backups per position Number of employees with implemented development plan

Examples of Key Performance Indicators (3) Examples of Key Performance Indicators (continued) Key Results Areas Quality assurance Cross-functional Integration Key Performance Indicators Percentage of first-time acceptance Yield Cost of rework, scrap Percentage of error-free completions (per shift, per employee) Percentage of recidivism (in law enforcement) Percentage of on-time completions Number of unresolved conflicts Average lead time on support requests Specific joint project agreements

Examples of Key Performance Indicators (4) Examples of Key Performance Indicators (continued) Key Results Areas Research and development Key Performance Indicators Number of new product ideas approved for development Projected dollar value of approved product ideas Number of new applications for current products/services Cost of R&D investment: ratio to total budget

Examples of Key Performance Indicators (5) Examples of Key Performance Indicators (continued) Key Results Areas Key Performance Indicators Organizational Image Favorable mentions in media Public information programs Involvement in community Interorganizational cooperative efforts Legislative relations Response time to legislators Inquiries handled favorably Funding approved Major programs approved

Planning Assessment Checklist Current Status OK Preplanning Factors Planning Process Model Planning Roles Clarified CEO & Senior Management Team Unit President Planning Facilitator Tactical Planning Key Results Areas Critical Issue Analysis Key Performance Indicators Objectives & Action Plans Plan Review Process Additional Considerations Cross-Functional Coordination Unit Mission Statements & Tactical Plans Training Plan Documentation & Communication Need Action: Who and When N/A

Referenced texts Ø Strategy: Pure and Simple, Michel Robert, ISBN 0 -07 -053131 -5 Ø Strategic Planning for Public and Non. Profit Organizations, John Bryson, ISBN 1 -55542 -087 -7 Ø Morrisey on Planning George L. Morrisey ISBN 0 -7879 -0170 -9 ISBN 0 -7879 -0169 -5 ISBN 0 -7879 -0168 -7 http: //www. morrisey. com