Strategic Planning Theory Framework Agenda Demystify Strategic Planning

Strategic Planning Theory & Framework

Agenda • Demystify Strategic Planning • Generic Strategic Planning Framework • Translating strategy to operations and action • Other frameworks • Road. Tek Strategic Plan 2005 – 2008 • Workshop

Definition “Strategy is the direction and scope of an organisation over the long term. . . ” (Johnson G, & Scholes K) • Serves as a framework for decision making & for seeking support / approval • Provides a basis for more detailed planning • Is a communication device to our stakeholders > shareholder, customers, staff • Serves as a reference point for performance monitoring • Stimulates change

Why Stimulate Change? The problem is never how to get, new innovative thoughts into your mind, but how to get the old ones out. Dee Hock, creator of Visa

Some Essential Points • Over the horizon 2 to 5 years • Focus on matters of strategic importance • Realistic, detached & critical approach by senior management • Distinguish between cause & effect

Pre-requisite Environmental analysis to: • Place the organisation in a current state business environment as a launching point to the future state • Produce SWOT analysis • Produce Risk analysis

Courtesy BIS Shrapnel

Key Elements of a Strategic Plan • Vision • Mission statement • Values • Objectives • Strategies • Measures Road. Tek Positioning Statement

Tips to the Process (1) • The framework is a logical linear process but it will be iterative • Use hindsight when strategic planning • Assess the current position of your vision • How have the mission and objectives changed? • How have we performed • How has the business environment changed?

Tips to the Process (2) • Drill down on your business e. g. • Review financial performance • Review project performance • Employ cause and effect technique • The SWOT is the key to developing business strategy • Keep the strategic plan short & simple

Translating Strategy to Operations Government Priorities Portfolio Priorities Roads Connecting Queenslanders Department of Main Roads Strategic Plan Integrated Regional Transport Plan Queensland Transport Strategic Plan Road. Tek Strategic Plan Business Plans Achievement Plans Individual Performance Management Plans

Operational (Business) Plan • Short term document flowing on from Strat Plan • Is tactical, focused, implementable & measurable • Is made up of various sub-plans • Very detailed, prescriptive information & activities showing accountabilities and completion dates

Other Strategic Frameworks • Balanced Scorecard • Logical Framework • Diagnostic Flowchart

Logical Framework Process Top Down Logic GOAL PURPOSE In order to Then OUTPUTS ACTIVITIES If In order to If GOAL PURPOSE OUTPUTS Then If ACTIVITIES Bottom Up Logic

Logical Framework Example Goal – Sustainable Business Purpose – Grow external sales Output Purpose is the causal effect of the outputs 1. No. of external customers is increased 2. Proportion of external revenue to total revenue grows Activities 1. Engage business development officers 2. GM negotiate SLAs with other agency GMs

Workshop • 5 x 5 Groups • Doing SWOT analysis • If time - develop strategies

Elements of a SWOT Strengths Build on Strengths Weaknesses Resolve Weaknesses Opportunities Exploit Opportunities Threats Avoid Threats

Workshop Projects • Duplication of Gateway + assc. 8 laning (DCM) • Brisbane City Tunnels (BOOT) • Any Road. Tek projects?