Introduction to strategic planning


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Introduction to strategic planning
Dr. Salim Hajje conference about Strategic Planning, he helped many private companies & government organizations to formulate and implement their: Vision, Mission, KRA, Goals, Objectives, Tasks, Strategies &Tactics-

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  • After you have collected sufficient data, assess its present and future impact on your business. For example, slow housing starts, weak automobile sales, reduction in real disposable personal income and increasing levels of unemployment signal reduced future demand for goods and services.
  • Introduction to strategic planning

    1. 1.
    2. 2. Introduction to Strategic Planning<br />Vision, Mission, KRA, Goals, Objectives, Tasks, Strategies &Tactics<br />Dr. Salim Hajje Ph.D.<br />
    3. 3. WHAT IS STRATEGIC PLANNING?<br />Ask ten people for a definition of strategic planning and you will probably receive ten different answers. Most agree that it is a way to identify long-term goals and to direct your company toward fulfilling those goals.<br />Strategic planning involves:<br /><ul><li>Assessing the current business environment.
    4. 4. Defining your company's purpose mission.
    5. 5. Deciding what you want the business to look like in three to five years.
    6. 6. Recognizing your company's
    7. 7. Strengths
    8. 8. Weaknesses
    9. 9. Opportunities
    10. 10. Threats
    11. 11. Mapping out a course to take the company from its current to its desired position.</li></li></ul><li>IS STRATEGIC PLANNING NECESSARY?<br />"My business is very small. Do I really need to develop a plan like this?"<br />"Only if you want to stay in business and prosper." <br />Consider the following reasons for strategic planning.<br /><ul><li>Foresee and react quickly to market changes and opportunities.
    12. 12. Competition is becoming tougher.
    13. 13. Long-term Financial goals
    14. 14. To involve employees to have a shared vision.
    15. 15. Communicate with Bankers & Key Stakeholders
    16. 16. Dealing with your suppliers, advertisers, attorney, accountant, auditor, investors and business consultants.</li></li></ul><li>Let's take a closer look at the process.<br />ANALYZE THE BUSINESS ENVIRONMENT<br /><ul><li>Begin with an assessment of the current economic situation.
    17. 17. Focus on the national, local or regional, &industry economic forecasts</li></ul>Use the following common sources for information:<br /><ul><li>Local & Regional Economical News
    18. 18. Economical Magazines / News Papers
    19. 19. Industry Analysis
    20. 20. Industry Associations
    21. 21. Chambers of Commerce
    22. 22. Major Banks Economical Publication
    23. 23. Central Banks
    24. 24. Ministry of Economy
    25. 25. Public/University Libraries </li></li></ul><li>THE PLANNING SESSION<br />After preparing a concise written assessment of the economic environment, you are ready to meet with key people in your organization for a marathon planning session. Make sure that all key departments (e.g., sales, service, finance, processing, manufacturing, etc.) are represented to ensure that a realistic plan with a common goal is developed.<br /> <br />The meeting will be most effective in a comfortable place that is free of interruptions and distractions. Often it is best to get away from the business premises. For many businesses the process takes two full days, so you may want to accomplish it over a weekend.<br />
    26. 26. THE PLANNING SESSION<br />The sessions will function best if they are structured. The following is a proven technique:<br /> <br /><ul><li>Appoint someone to be the facilitator of the group.
    27. 27. Agree in advance that creativity is desirable.
    28. 28. Write down the essence of what the group discusses and decides.
    29. 29. Equip the room with a LCD projector, flip chart, felt tip markers, etc.
    30. 30. Follow an agenda. See Appendix A.</li></ul> <br />After the opening comments, a review of the session's procedures and a report on the economic environment, you are ready to begin the most important part of the process.<br />
    31. 31. Analysis of Strengths, Weaknesses, <br />Opportunities & Threats (SWOT)<br />
    32. 32. SWOT – Examples<br />Examples of Strengths, Weaknesses, Opportunities &Threats that might be suggested by participants during the<br />SWOT analysis: <br />
    33. 33. SWOT – Mind Map<br />
    34. 34. Vision<br />Mission<br />Mission Statement<br />The mission and vision serve as the two end points for the path of the strategic plan.<br />
    35. 35. MY JOB<br />Purpose<br />Mission<br />Mission Statement<br />The mission must have a higher-order purpose, and it must help you & your employees understand why you come to work each day<br />
    36. 36. Mission Statement<br />An organization's mission statement (usually no more than one or two sentences) describes the purpose of the organization. It enables all members of the organization to share the same view of the company's goals, philosophy and future direction. It should include the<br /><ul><li>Reason the organization exists (management's mission) .
    37. 37. Products and services offered. 
    38. 38. Clientele served.
    39. 39. Nature and location of the business's marketing territory.
    40. 40. Areas of specialization.
    41. 41. Future direction of the company.</li></li></ul><li>Mission Statement - Examples<br />
    42. 42. Mission Statement - Examples<br />
    43. 43. Key Results Areas (KRAs) <br />Most companies have from 8 to 15 key results areas (KRAs), areas in which the organization must achieve success to grow and prosper. <br />The facilitator should lead the group in identifying KRAs for the business. <br />Some examples of KRAs are:<br /><ul><li>Increase revenues.
    44. 44. Improve financial condition.
    45. 45. Keep pace with or outdistance the competition.
    46. 46. Improve efficiency and productivity.
    47. 47. Achieve and maintain superior customer service.
    48. 48. Increase utilization of technology to improve operations.
    49. 49. HR development and training .
    50. 50. Improve internal communications.
    51. 51. Improve distributor and/or supplier relationships.
    52. 52. Improve public relations, advertising, promotions, etc.
    53. 53. Improve or enhance products and services.
    54. 54. Capitalize on the physical facilities.
    55. 55. Capitalize on or improve organizational structure.
    56. 56. Succession Planning.</li></li></ul><li>Strategic Goals<br />Usually there will be five or six strategic goals which are derived from the KRA.<br />It is important to make GOALS as quantifiable as possible.<br />Goals # 1 +<br />Goals # 2 +<br />Goals # 3 +<br />Goals # 4 +<br />Goals # 5 +<br />KRA<br />Vision<br />=<br />+<br />
    57. 57. Vision<br />Strategic Goal<br />Objective<br />Objective<br />Objective<br />Objective<br />Objective<br />Mission<br />Strategic Goals & Objectives<br />Multiple objectives are the intermediate steps toward the strategic goal and ultimately the vision.<br />
    58. 58. Strategic Goals & Objectives<br />Vision<br />Usually there will be five or six objectives derived from each Goal.<br />It is important to make SMART Objectives<br />Strategic Goal #1<br />Management <br />Reengineering <br />Objective # 1<br />HR System Development remuneration<br />Objective # 5<br /> improve internal relationship & communication<br />Objective # 2<br />HR training<br />Objective # 4<br />equipment , tools, physical environment<br />Objective # 3<br />Employ qualified people<br />Mission<br />
    59. 59. Strategic Goals & Objectives<br />Vision<br />Usually there will be five or six objectives derived from each Goal.<br />It is important to make SMART Objectives<br />Strategic Goal #2<br />Increase Sales<br />Objective # 1<br />CRM<br />Objective # 5<br />Build resellers network<br />Objective # 2<br />Members 400<br />Objective # 3<br />Retail $ 1,200,000/year<br />Objective # 4<br />Increase sales / client / year by 20%<br />Mission<br />
    60. 60. Tasks<br />TASKS: HOW TO FOCUS ON WHAT REALLY<br />NEEDS TO BE DONE<br />We still need to achieve a third level of definition of what has to be done. <br />The goals are the first level while the objectives are the second level. <br />The third level is tasks, which are important to bring the vision down to the operational level (see Figure 5-4).<br />The tasks are those things that must be done in the next year to get the company on the path toward goal accomplishment.<br />
    61. 61. Vision<br />Strategic Goal<br />Objective<br />Objective<br />Tasks<br />Tasks<br />Tasks<br />Tasks<br />Mission<br />Tasks<br />Tasks are the many mission-essential things you must do each day. They are the intermediate steps to the objectives.<br />
    62. 62. Strategies<br />HOW TO PUT YOUR GOALS AND OBJECTIVES<br />INTO MOTION<br />How you put the goals and objectives into motion?<br />Goals and objectives make up what you are to do, and the strategies and tactics describe how you plan to do it.<br />Goals & Objectives = WHAT<br />Strategies & Tactics = HOW<br />
    63. 63. Vision<br />Strategies are the big picture “how” you plan to reach your goal.<br />Strategic Goal #1<br />Objective<br />Objective<br />Objective<br />Tasks<br />Tasks<br />Tasks<br />Tasks<br />Strategies<br />Objective<br />Mission<br />Strategies<br />
    64. 64. Vision<br />Strategic Goal #1<br />Objective<br />Objective<br />Objective<br />Tasks<br />Tasks<br />Tasks<br />Objective<br />Tasks<br />Tactics<br />Mission<br />Tactics<br />Tactics are the short-term “HOW” you plan to reach your goal.<br />
    65. 65. Strategies - Examples<br />Examples of strategies .<br />Here are a few, some of which you’ll readily recognize:<br />Nike signs celebrity athletes well in advance of their hitting their peak exposures.<br />Pepsi’s use of rock stars to endorse its products was a strategy that caught the competition asleep with respect to the younger market.<br />Apple Computer’s decision to use a closed architecture in its early days (as opposed to the PC’s open approach) influenced the future of the company.<br />
    66. 66. Budgeting and the Strategic Plan<br />The strategies and tactics that you choose will affect revenues and expenses to differing degrees. You need to consider the potential impact of each objective on both revenues and expenses so that you can prioritize them and reflect them in future budgets.<br />
    67. 67. Target Dates<br />Be realistic in setting target dates. It is important that you resist the temptation to set extremely ambitious target dates for your objectives. In most cases, the tactics you have agreed on will be accomplished by people who already have a full day's work. Each employee must be given sufficient time to achieve the specific objectives assigned to him or her, or the plan will quickly be viewed as impossible to accomplish and useless.<br /> <br />When assigning a tactical objective, let the recipient tell the group how long it will take to achieve, and accept that target date, if at all possible. Appendix B displays a suggested format for the strategic plan.<br />
    68. 68. Coordinating and Monitoring the Strategic Plan<br />For maximum sustained results, an overall coordinator for the strategic plan should be appointed. That person is responsible for bringing together the various pieces of the strategic plan into one comprehensive plan and for monitoring the plan.<br /> <br />The form in Appendix C can be used to display the strategic objectives and all the supporting tactical objectives for each key strategy area. It also lists the person responsible and the agreed-upon target date for each objective, with a section for comments. An example of how the completed form might look is shown in Appendix C-1.<br /> <br />Appendix D is an Individual Objective Summary/Status Report, which enables an individual to track the status of each objective for which he or she is responsible and report monthly to the strategic plan coordinator.<br />
    69. 69. Coordinating and Monitoring the Strategic Plan<br />The monitoring process should be made as simple as possible. Each month, the strategic plan coordinator collects the updated individual objective summary/status reports from employees and makes certain that all objectives in the plan have been accounted for. He or she makes note of shortfalls, needs for reforecast or meetings to be called, and documents progress in a brief memorandum to all strategic plan participants. <br />For example:<br /> <br /><ul><li>At the end of April, we are on target or ahead of plan in all but two tactical objectives. The attached individual objective summary/status reports describe the status of every objective.
    70. 70. Where a shortfall exists, I have highlighted the shortfall and noted the actions being taken.
    71. 71. Overall we are well on our way to achieving our major objectives.</li></li></ul><li>COMPLETING AND COMMUNICATING THE PLAN<br />When the above procedures have been discussed with the group, agreement should be reached on when the written strategic plan should be completed and ready for use. The method of communicating the content of the plan to all employees should also be discussed.<br />
    72. 72. WHY STRATEGIC PLANS FAIL<br />No treatment of this subject would be complete without mention of the fact that some strategic plans fail. The major reasons are:<br /> <br /><ul><li>Strategy was defined incorrectly.
    73. 73. The plans lacked detailed implementation steps with tasks, schedules and responsibilities.
    74. 74.  Goals were not stated in clear and quantifiable terms.
    75. 75.  Planning did not involve input of key managers.</li></ul> <br />The process described in this presentation avoids these pitfalls and has proven effective with SMEs.<br />
    76. 76. Thank You<br />Questions?<br />