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Keys to Organizational Success: Strategic Thinking, Planning ... Keys to Organizational Success: Strategic Thinking, Planning ... Document Transcript

  • Keys to Organizational Success: Strategic Thinking, Planning, and Management Jerri Killian, Ph.D. January 14, 2003
  • A Few Definitions Strategic Planning is: the process that influences significantly how fundamental organizational issues are framed and addressed Strategic Issues are: fundamental challenges affecting an organization's - mandates, mission, and values; - product or service level and mix; - customers, users, or payers; - costs, financing, structure, or management Framing Strategic Issues is: the process that affects significantly one's understanding of the nature of the issues under examination, and informs decisions that ultimately define what the organization is, what it does, and why it does it Identifying Strategic Issues is: an emotional, conflict-filled process rooted in differing values and perspectives concerning - what will be done - why it will be done - how it will be done - when it will be done - where it will be done - who will do it - who will be advantaged or disadvantaged by it Organizational Culture is: the values, beliefs, and accepted norms within the organization that affect significantly which strategic issues get on the agenda and how they are framed
  • Strategic Planning A Definition: A process designed to produce fundamental decisions and actions that shape and guide what an organization is, what it does, and why it does it Purpose: To promote strategic thought and action to benefit the organization and its stakeholders Strategic Planning is NOT: - Appropriate for all organizational situations - The answer to all organizational problems - A substitute for strategic thinking and action - A substitute for leadership - A purely rational process - A passing fad
  • Successful Strategic Planning IS: - An iterative and flexible process - A documented record of an organization's intended direction and actions - Seeking to produce the best fit between an organization and its environment - Designed to advance the organizational mission - Rooted in shared goals and expectations - Planning for development of organizational capacity to meet present and future challenges - Communicating to stakeholders intended direction and actions - Providing a basis for improved internal and external relationships - Facilitating movement from vision to action Benefits of Successful Strategic Planning: - Consideration of various perspectives, interests, and values through effective information gathering - Reasoned and informed decision making through analysis of alternatives - Increased organizational performance through analysis of implications - Enhanced organizational learning through participation and teamwork
  • Essential Requirements for Successful Strategic Planning - Committed leadership - Process champions - Understanding of what strategic planning is and is not - A reasonable structured process - Process oversight by a decision-making body - Productive teamwork - Clearly identified critical issues - Realistically achievable strategies - Outside expertise (when needed) - Emphasis on strategic thinking and action --- not the process itself
  • The Strategy Change Cycle 1) Initiate and Agree on a Strategic Planning Process (Planning to Plan) - Obtain support and commitment from key stakeholders 2) Identify Organizational Mandates (the Must Do’s) - Understand precisely what the organization is required (and expected) to do 3) Clarify the Organization’s Mission and Values - Develop a meaningful and relevant mission statement - Identify key stakeholders - Address concerns of key stakeholders 4) Assess the Internal and External Environments - Analyze Strengths, Weaknesses, Opportunities, and Threats (SWOT) - Identify and address critical success factors
  • 5) Identify Strategic Issues - The fundamental and critical challenges facing the organization - That which affects organizational survival, effectiveness, or prosperity 6) Formulate Strategies and Plans to Manage the Issues - Develop effective strategies that are * Technically feasible * Politically acceptable * A good fit with organization’s philosophy and values * Ethical, moral, and legal; * Addressing the issue(s) for which they are designed 7) Review and Adopt the Plan and Strategies - Obtain formal approval before implementation 8) Establish an Effective Organizational Vision - Describe the organization after implementation (the vision of success)
  • 9) Develop an Effective Implementation Process - Develop realistic and implementable action plans - Action plans require inherent flexibility to take advantage of unforeseen opportunities and address unforeseen problems 10) Reassess the Process and Strategies - Maintain, revise, or replace existing processes and strategies to achieve the organizational mission
  • Initiating the Strategic Planning Process (Planning to Plan) Identify and Gather Key Actors: Form a Coalition A) Who should be involved B) Timing of key decision points Develop a Sound Process: Initial Agreements A) Clearly articulate the purpose and value of the strategic planning effort B) Identify who should be involved and in what ways C) Identify and abide by specific process steps to be followed D) Identify and abide by specified formats and timing of reports E) Identify and abide by a defined scope for the strategic planning effort Caution: Three Potential Pitfalls A) Strategic planning is deliberately disruptive B) Strategic planning is almost never a smooth process C) Strategic planning inherently challenges accepted norms
  • Assessing the Environment: SWOT Analysis Analyze Strengths, Weaknesses, Opportunities, and Threats A) A process that connects environmental contexts to actions to enhance performance B) Evaluates organizational strengths and weaknesses in relation to opportunities and threats faced by the organization C) Promotes proactive organizational response before crises emerge D) Facilitates building on strengths and minimizing weaknesses to take advantage of opportunities and minimize threats E) Establish a simple, relatively informal environmental scanning operation F) Develop an effective information management system (MIS)
  • Benefits of the SWOT Analysis A) Availability of needed and relevant information B) Ability to view the organization as a whole system, rather than component parts, in relation to its environment C) Promotes reasoned optimism D) Facilitates management of tensions between good/bad, present/future E) Develops boundary-spanning skills and promotes creative, integrative thinking and dialogue F) Allows timely, informed actions to overcome weaknesses and minimize threats G) Prepares the organization to focus on identifying strategic issues
  • Process Guidelines for the SWOT Analysis A) Simpler is usually better B) Consider performing the external analysis prior to the internal analysis C) Look for patterns and future implications of identified strategic issues D) Act on items for which there is enough information to demonstrate progress E) Consider institutionalizing periodic SWOT analyses F) Consider establishing a permanent environmental scanning process G) Above all, keep the lines of communication open for meaningful discussion
  • The Mission Statement A brief and inspiring statement that describes key aspects of the organization Answers 6 questions: 1. Who are we? 2. What are the basic product or service needs we must address or meet? 3. What do we do to recognize, anticipate, and respond to these needs? 4. What are our organizational philosophy, values, and culture? 5. How should we interact with and respond to our key stakeholders? 6. What makes us distinctive or unique?
  • Formulating Strategies: Questions to Ask and Answer A) What are the practical alternatives to address strategic issues? B) What are the barriers to realizing these alternatives? C) What options should be pursued to achieve the goals or overcome barriers? D) What major actions must be taken in the next 1-3 years to implement these options? E) What specific steps must be taken within the next 6months-1year to implement these options? Who is responsible?
  • Criteria for Formulating and Adopting Strategies and Plans A) Acceptability (decision makers, stakeholders, consumers) B) Customer or user impact C) Relevance D) Consistency with mission, values, philosophy, culture E) Integration/coordination with other strategies, programs, and activities F) Technical feasibility G) Cost feasibility H) Cost effectiveness I) Long-term impact J) Risk assessment K) Staff requirements L) Flexibility or adaptability M) Timing N) Facility requirements O) Training requirements
  • Strategy Review and Reassessment A) Maintains internal capacity to respond successfully to SWOTS B) Maintains internal capacity to respond successfully to new issues created during sustained implementation C) Maintains internal capacity to successfully revise and reform existing strategies D) Maintains internal capacity to successfully terminate obsolete policies and processes E) Provides the opportunity to utilize regular events to periodically review and reassess strategic issues and plans 1. annual budget review meetings 2. changes in leadership 3. quarterly staff meetings 4. shifts in the marketplace or competition
  • Helpful Reminders about Strategic Planning - The simpler the process, the better your chances for success - There is no "right" way to plan; a planning process customized for your organization will likely be the most productive - Scaling down, rather than increasing, the size and/or scope of the organization and its services may be an appropriate plan for your organization - Planning often produces tension, frustration, conflict, and anxiety -- be prepared to deal with it! - It is important to listen to participants' various views with an open mind; however, it is not necessary to reach consensus or incorporate all opinions and preferences into the plan - The planning process must have strong support from senior staff and other influential individuals in the organization - The planning process requires commitment and enthusiasm from all participants to succeed
  • YOU ARE HERE (in five years) Review and Reassess Review and Reassess Strategies and Plans Strategies and Plans Outline 5-Year Develop 1-Year Implementation Implementation Plans Plans ID Key Personnel for ID Key Personnel for Non-Critical Objectives Critical Objectives Identify Non- Identify Critical Critical Objectives Objectives Determine Planning Identify Planning Objectives Priorities External Assessment SWOT Analysis Internal Assessment Start