Strategic Planning
Upcoming SlideShare
Loading in...5
×
 

Strategic Planning

on

  • 5,959 views

 

Statistics

Views

Total Views
5,959
Views on SlideShare
5,958
Embed Views
1

Actions

Likes
4
Downloads
704
Comments
0

1 Embed 1

http://www.lmodules.com 1

Accessibility

Categories

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

Strategic Planning Strategic Planning Document Transcript

  • STRATEGIC PLANNING Managing Strategically
  • STRATEGIC PLANNING Managing Strategically Prepared by the Texas Workforce Commission Training and Development Department Louis LeDoux, Department Director Richard Guilbeau, Training Manager Training and Development Department Curriculum Writer Saundra Kirk Training and Development Department Editor Nancy Baker
  • STRATEGIC PLANNING Managing Strategically Table of Contents TRAINING PURPOSE AND OBJECTIVES 1 SECTION ONE - INTRODUCTION 2 Managing Strategically……………………………………………….. 2 Compliance……………………………………………………………. 3 Texas Strategic Planning Process……………………………………... 3 Purposes of the Strategic Planning And Budgeting System (SPB) …... 5 SECTION TWO - OVERVIEW 6 What is Strategic Planning?…………………………………………… 6 Benefits of Planning…………………………………………………… 7 Limitations of Strategic Planning……………………………………... 8 SECTION THREE - STRATEGIC PLANNING MODELS 9 Basic Strategic Planning………………………………………………. 9 Scenario Planning……………………………………………………... 10 Alignment Planning…………………………………………………… 10 Issue Based Planning……………………………………….…………. 11 Self-Organizing Planning……………………………………………... 11 Hybrid Planning……………………………………………………….. 12 Balanced ScoreCard…………………………………………………… 13 Advantages of the BSC……………………………………………….. 14 BSC Process…………………………………………………………… 14 May 2005 Page ii
  • SECTION FOUR - STRATEGIC PLANNING PROCESSES 15 Planning Guidelines...…………………………………………………. 15 Strategic Phases……………………………………………………….. 15 Strategic Planning Questions………………………………………….. 16 Phase One: Analyze…………………………………………………… 17 Process Steps for the Analytical Phase……………………………….. 17 Questions for the Analytical Phase……………………………………. 19 Phase Two: Plan………………………………………………………. 20 Process Steps for the Planning Phase…………………………………. 21 Questions for the Planning Phase……………………………………... 22 SECTION FIVE – IMPLEMENTATION PROCESSES 23 Implementation Guidelines……………………………………………. 24 Phase Three: Implement………………………………………………. 25 Process Steps for the Implementation Phase………………………….. 25 Questions for the Implementation Phase……………………………… 27 Action Planning……………………………………………………….. 28 Action Planning Process Steps………………………………………... 28 Performance Management…………………………………………….. 29 Performance Management Process Steps……………………………... 29 Performance Management Questions…………………………………. 30 Phase Four: Measure………………………………………………….. 31 Assessment Tools……………………………………………………... 31 Process Steps for the Measurement Phase…………………………….. 31 Questions for the Measurement Phase………………………………… 32 May 2005 Page iii
  • SECTION SIX – APPENDIX A-1 Glossary of Terms- Strategic Planning Elements…………………… A-2 A-5 Texas Workforce Commission Vision, Mission, and Philosophy…... A-6 Web-site Resources…………………………………………………. A-7 Analytical Phase Worksheet – Record of Analysis………………….. A-8 A-9 Planning Phase Worksheet – Long Range Goals……………………. A-10 Balanced ScoreCard Worksheet……………………………………... A-11 Implementation Phase: Operational Plan /Sample Form……………………. A-12 Implementation Phase: Action Plan /Sample Form)………………………….. A-13 Implementation Phase: Performance (Project) Plan /Sample Form……… A-14 May 2005 Page iv
  • Strategic Planning Training and Development STRATEGIC PLANNING Managing Strategically The purpose of this training is to describe the main steps required to develop and begin implementing an effective strategic plan. The criteria, terminology, and definitions in this guide are compatible with that provided by the Governor’s Office of Budget and Planning, the Legislative Budget Board, and the State Auditor’s Office. Strategic planning methods are useful in two major Texas Workforce Network (TWN) applications for: 1. managing - establishing direction and aligning resources to efficiently manage operations that support your mission or core function 2. complying - defining standards and measuring program effectiveness. Training Objectives This training will enable you to: • understand the purposes and benefits of strategic planning • select a constructive strategic planning method for your work environment • identify and apply the main components of strategic and operational planning processes. May 2005 Page 1
  • Strategic Planning Training and Development Section One: Introduction As a leader in the Texas Workforce Network (TWN), you are responsible for some level of planning and oversight in at least one functional area. In the chain of TWN professionals who provide benefits and services related to the employment and training needs of Texans, you are accountable for results rather than just efforts. Whether you are a leader with a local board, a contractor, or the Texas Workforce Commission (TWC), producing effective results requires careful planning. Managing Strategically A major competency of effective leaders is the skill to see the broad perspective and to transform their long-range view into reality. One of the best ways to develop this skill is through ongoing experience in strategic planning. However, management surveys indicate that 85 percent of executives spend less than one hour per month on strategy. Many Texas Workforce Network leaders have visions and insights about what it would take to make long-term improvements in their organization’s performance, processes, or systems. But when the activities of a typical day involve spending a great deal of valuable time “fighting fires” and reacting to problems, crisis management can become a habitual replacement to strategic management. A “vicious cycle” is then set in place that is difficult to escape. Strategic Planning is an intervention to crisis management. “Leaders in workforce development must create a culture of performance. That has never been more critical than it is now. We must focus on results – a supply of skilled workers and a world-class knowledge supply chain. “We need to be in touch with the local employer’s needs and prepare or equip workers to meet those demands. The stakes are high. The result is global competitiveness, a strong economy, and high quality living for our citizens…” Dr. David A. Sampson Assistant Secretary of the U.S. Department of Commerce May 2005 Page 2
  • Strategic Planning Training and Development Strategic solutions for statutory compliance Strategic planning as a response to the requirements of the Texas Legislature is the shared responsibility of the Texas Workforce Commission, its network of 28 Local Workforce Development Area Boards, and Contractors. As a state agency, The Texas Workforce Commission has the responsibility for developing a system of performance accountability for its local boards based on performance measures determined by the U.S. Department of Labor and the state Legislative Budget Board. Local boards set priorities and standards, and monitor the performance of their service contractors. And contractors must plan processes and systems that allow them to meet their performance objectives. Background: The State of Texas Strategic Planning Process State of Texas House Bill 2009 inaugurated the requirements and House Bill 2009, time frames for a state wide strategic planning Regular Session, process. Senate Bill 1332, 73rd Legislature, Regular 1991 Session, 1993 amended the statute to consolidate requirements and change the minimum required planning range from a six year to a five year cycle. Strategic Planning The 1991 legislation established the SPB system and Budgeting which bases funding and other decisions on an System (SPB) organization’s accomplishments rather than on its activities. The system promotes a mission/goal- driven management approach that connects funding to results. Legislative Budget The LBB is a legislative committee that has Board (LBB) responsibility to continuously review state spending. It conducts comprehensive evaluations and reports to the Legislature on results of state agency programs, and identifies probable costs for implementing legislation. All state agencies submit their budget requests to the LBB. May 2005 Page 3
  • Strategic Planning Training and Development State agency performance measures that accomplish the mission of state government must represent the interests of both the Legislature and the Governor. On this behalf, the Legislative Budget Board (LBB) and the Governor’s Office of Budget and Planning (GOBP) collaborate to: • issue instructions for preparing and submitting agency strategic plans • issue statewide vision, mission, philosophy, functional goals, and benchmarks • negotiate performance criteria with state agencies • assess reported performance data. The State Auditor’s Office (SAO) acts as staffing agent for LBB and GOBP oversight of the performance-based budgeting system by: • collecting agency documentation of key measures • performing audits to certify performance results • giving feedback to agencies and the LBB. May 2005 Page 4
  • Strategic Planning Training and Development Purposes of the Strategic Planning and Budgeting System (SPB) The purpose of the Texas Strategic Planning and Budgeting System is to: • establish statewide direction in key policy or functional areas to move away from crisis-driven decision-making • provide a basis for aligning resources in a rational manner to address the critical issues facing the state now and in the future • make state government more responsive to the needs of Texans by placing greater emphasis on benefits and results rather than just service efforts and workload • bring focused issues to policy-makers for review and debate • provide a context to link the budget process and other legislative processes with priority issues, and to improve accountability for the use of state resources • establish a means of coordinating the policy concerns of public officials with agency efforts • build interagency, intergovernmental, and public/private/nonprofit partnerships • provide a forum for communication between service providers and the constituents they serve. Governor’s Center for Management Development “Strategic Planning and Performance Measures” May 2005 Page 5
  • Strategic Planning Training and Development Section Two: Overview What is strategic Successful strategic plans are working planning? documents that explain where you are going and promote the constructive change that will get you there. Planning is setting the direction for something. Usually, we start with preferred results and work backward to identify what will produce those results. Strategies are methods to achieve goals and objectives. Strategic planning allows organizations to make fundamental decisions that guide them to a developed vision of the future. The result of this effort, the strategic plan, serves as the basis for action that directs all resources toward that future. The plan, which must be practical and flexible, guides daily decisions. May 2005 Page 6
  • Strategic Planning Training and Development Benefits of The benefits of strategic planning are that it: planning • provides orderly growth and competitive survival • stimulates the organization to be more responsive to the needs of customers • focuses on results and benefits rather than service efforts and workload • simulates the future • forces the setting of goals and objectives • increases efficiency • applies a systems approach to reviewing projections and consequences • creates a basis for performance measures and accountability • provides effective personnel management because the process establishes relevant and practical performance benchmarks • provides a decision making framework • mitigates crisis management and crisis-driven decision making • anticipates effects of change and influences of external forces • improves employee morale because of clarity of focus, direction, communication, and inclusion • builds a communication network. May 2005 Page 7
  • Strategic Planning Training and Development Limitations of Strategic planning can be difficult to accomplish Strategic Planning because: • planning requires the commitment and sponsorship of an executive leader • planning requires an appropriation of time, people, and resources • planning can be perceived as an inflexible process • the organization may experience internal resistance to the process or strategy • the process can become too focused on measurements and compliance • people who do the work may not be included in the planning process • unexpected events or current crises preempt planning time and resources. May 2005 Page 8
  • Strategic Planning Training and Development Section Three: Strategic Planning Models There is no one perfect strategic planning model for every organization. Each organization selects, modifies, or integrates a model to develop a process that compliments its needs and outlook. The Balanced Scorecard model is highlighted because of its popularity as a performance improvement tool and because the Texas Legislature has mandated pilots in several state agencies. Among those agencies that established organization-wide scorecards, there is enthusiastic approval of the processes and outcomes of this model. The following models demonstrate a range of alternatives. With the exception of the fifth model, the traditional strategic planning models presented below are generally considered “linear”. They are general-to- specific or cause-and-effect in nature. The processes often begin by conducting some form of assessment of the external and internal environments, performing strategic analysis, prioritizing issues, and then developing strategies to address specific issues. 1. Basic Strategic Use the following straightforward process steps for Planning small, busy organizations: • Identify your purpose. • Select goals. • Identify specific implementation strategies. • Identify action plans to implement each strategy. • Monitor and update the plan. May 2005 Page 9
  • Strategic Planning Training and Development 2. Scenario You may use this approach in conjunction with Planning other models to ensure that you apply strategic thinking to critical issues and goals. • Identify several important external forces and project the influences they might have on the organization. • Discuss three different future scenarios for each change from an external force, and review the worst case scenarios. • Suggest potential strategies to respond to the changes of each scenario. • Detect common considerations in strategies. • Select the most likely external changes and identify the most responsive strategies. 3. Alignment You may use this model for organizations that Planning need to fine tune their strategies or that experience issues around internal efficiencies. The purpose is to align the organization’s Mission and its resources for more effective operations. Planning groups must accomplish several tasks: • Outline the mission, programs, resources, and needed support. • Identify what is working well and what needs adjustment. • Identify how to make adjustments. • Include the adjustments in the strategic plan. May 2005 Page 10
  • Strategic Planning Training and Development 4. Issue Based Larger, more experienced organizations use this Planning comprehensive and effective planning model. Processes include: • conducting an external/internal assessment • designing major strategies to address issues and goals • developing or updating vision, mission, values • establishing action plans • recording assessment issues, goals, and strategies, mission, vision, and action plans in a Strategic Plan document • developing a yearly operating plan document • developing and authorizing a year-one budget • conducting the year-one operations • monitoring/reviewing/evaluating/updating the Strategic Plan document. 5. Self-Organizing Rather than the linear processes of the other Planning models, self-organizing planning evolves through a more natural unfolding process. It requires continual reference to common values, and shared reflection around the system’s current processes. This process uses dialogues, exploratory, and storyboarding techniques. General steps include: • clarifying and articulating the organization’s cultural values • articulating the group’s vision • holding quarterly dialogues about what the organization requires to arrive at the vision and decide what the group is going to do • focusing on learning rather than on linear methods • cultivating patience for these ongoing processes • deciding how to portray the strategic plan to stakeholders. May 2005 Page 11
  • Strategic Planning Training and Development 6. “Hybrid” Combining processes from two or more models Integrated produces a hybrid effect. One example is the Planning Balanced Score Card model, which integrates elements of issues-based and alignment planning processes. May 2005 Page 12
  • Strategic Planning Training and Development Balanced Scorecard Performance Management Model Robert Kaplan of the Harvard Business School, and business consultant, David Norton, developed the Balanced Scorecard strategic planning model in 1992. More than half of the Fortune 500 corporations in the US and a growing number of governmental agencies at all levels use this model. During the 77th Legislative Session of 2001, a Rider to the General Appropriations Act required Texas Education Agency (TEA), Department of Public Safety (DPS), and Parks and Wildlife (TPWD) to develop Balanced Scorecards (BSC) and report results during the 2003 session. Each of these state agencies implemented a pilot. Other agencies, including the State Auditor’s Office voluntarily implemented agency-wide BSC strategic planning and management systems. Kaplan and Norton assert that, “What you measure is what you get”. Because the public sector does not generate profits, these organizations must apply strategic principles to a different bottom line. That bottom line for most government organizations relates to achieving their mission within the context of the satisfaction of their customers, stakeholders, and employees. The Balanced Scorecard model directs the organization’s strategic focus to “perspectives” that frame its critical success factors. Strategic management translates performance measures and targets into action initiatives. The BSC model facilitates developing performance improvement objectives, measures, and targets through a framework of five perspectives: 1. Mission 2. Customer focus 3. Internal processes 4. Learning and knowledge 5. Financial. May 2005 Page 13
  • Strategic Planning Training and Development Advantages of the Implementing a BSC yields numerous BSC advantages. It: • emphasizes those processes that are most crucial for obtaining high performance • drives organizational change by focusing on things that will have the biggest impact • links the improvement of internal business processes to specific external customer needs • aligns the performance objectives of all people in the organization • organizes the allocation of resources • focuses on performance measures that turn strategy into action • allows management to clarify priorities • produces a clear path to the future vision. BSC Process Process steps for the BSC are: • define the mission or core function • conduct an environmental scan • conduct an internal/external assessment • create a vision • identify long-range goals • identify objectives • identify performance measures • identify performance targets • develop action plans • implement • assess • modify • report. May 2005 Page 14
  • Strategic Planning Training and Development Section Four: Strategic Planning Processes A Strategic Plan is a detailed scheme or method worked out as preparation for the accomplishment of important business goals or objectives. Planning To lay the foundation for a successful strategic Guidelines planning process: • Establish a planning team. • Discuss the constructive purposes of the planning model you will adapt. • Make sure everyone understands the process and expected outcomes. • Allow sufficient time to go through the process. • Discuss the agency Mission and your contribution to it. • Build a foundation of information to lead to specific outcomes and outputs. The strategic planning process consists of a series of formative steps that begin with the contrast between present reality and a vision of the future. Its practicality and applicability determine the effectiveness of a Strategic Plan. Strategic phases Strategic steps from vision to outcomes are: • Phase One: Analyze • Phase Two: Plan • Phase Three: Implement • Phase Four: Measure May 2005 Page 15
  • Strategic Planning Training and Development Strategic Planning Questions Planning An effective strategic process provokes answers to the following questions: Questions • What is our purpose for existing? • Who are our customers and stakeholders? • What are our strengths and weaknesses? • What trends affect our work environment? • What factors are critical to our success? • What fundamental policy decisions must we make? • What values and principles must guide our decisions? • What actions are required to implement our decisions? • What are our priorities; what resources will we need? • What will be the impact on our target groups or customers? • How will we know that it is worthwhile? • How will we analyze and explain that we are on or off track? • How will we make necessary corrections during implementation? May 2005 Page 16
  • Strategic Planning Training and Development PHASE ONE: ANALYZE The first phase analytical activities ground your plan in the realities of the current situation so you can apply practical criteria to the goals and objectives of the Strategic Plan. Think in terms of what it takes to do the work. Process steps for the Analytical Phase 1. Define the core Your statement of core function is a succinct functions expression of the reason your unit exists. Link your core function to your organizational mission. This statement will: • identify your customers and their expectations • clarify your responsibility for providing meaningful products or services. 2. Conduct an Ground the plan by examining your current environmental environment. Consider economic, political, scan and SWOT social, and technological trends that influence Analysis your work. Identify Strengths and Weaknesses/ Opportunities and Threats. • Strengths and Opportunities are positive factors that suggest competitive advantages, support current strategies and improved performance. • Weaknesses and Threats impede performance and suggest risks in the current strategies. • Strengths and Weaknesses indicate internal conditions. • Opportunities and Threats indicate external conditions. May 2005 Page 17
  • Strategic Planning Training and Development 3. Create a A realistic vision should accomplish improvements realistic vision in efficiency or effectiveness to support your (organizational) mission or (unit) core function. The vision is: • an inspiring view of your desired future state • the basis for your goals and objectives. 4. Develop a This description of the vision you want to vision achieve is a concise statement of what the statement organization wants to be at the end of the planning cycle. The vision statement: • becomes your benchmark or blueprint for the future • extends the range of your performance potential to improve or be efficient • advances the mission with goals emerging from the vision. May 2005 Page 18
  • Strategic Planning Training and Development Questions for the Analytical Phase Analytical Answers to these questions support the creation of a Questions: vision. • What is our purpose for existing? • Who are our customers and stakeholders? • What are our positive factors? • What are our negative factors? • What trends affect our work environment? • What factors are critical to our success? • How would we look and be at our best? May 2005 Page 19
  • Strategic Planning Training and Development PHASE TWO: PLAN The strategic plan presents the opportunity to focus on solving problems, increasing productivity, efficiency, and effectiveness in daily operations. A strategic plan is your essential scheme. Develop the Strategic Progress through an orderly sequence that Plan allows the team to: • clarify • document • communicate • implement priorities. Determine who will facilitate the process. The TWC Training and Development Department offers consulting and facilitation services. However, anyone on the local team who understands the concepts and processes can also lead the process. It is important to have roundtable discussions for getting input and consensus about critical issues and possible improvements. May 2004 Page 20
  • Strategic Planning Training and Development Process Steps for the Planning Phase 1. Identify motivating To reflect priorities established in your vision: long-range goals • Test goals against the reality of your business environment. • Determine whether it is possible to achieve your goals within a reasonable timeframe. • Decide whether they are worth pursuing and whether they give you what you really want. 2. Identify Objectives are: performance (tactical) • specific steps to the achievement of your objectives long-range goals • intentions that convert to performance activities. 3. Identify Performance measures and targets are tools to: performance measures and • benchmark your progress toward your targets for each goals objective • assess the effectiveness of performance. May 2005 Page 21
  • Strategic Planning Training and Development Questions for the Planning Phase Plan Development • What fundamental policy decisions must Questions we make? • What values and principles must guide our decisions? • What actions are required to implement them? • What are our priorities; what resources will we need? • What will be the impact on our target groups or customers? • How will we know that it is worthwhile? May 2005 Page 22
  • Strategic Planning Training and Development Section Five: Implementation Processes Implementation gives credibility to planning because this phase is the crosswalk of strategic plans into daily operations. A successful implementation mitigates crisis management by unifying daily operations with strategic processes. Strategy implementation promotes efficiency. Leaders cultivate a broader perspective and become more experienced by setting and managing the long-range view through action planning. Leaders who direct implementation must create or adapt processes and tools that support their efforts to set standards and expectations for performance, and manage and track progress. Implementation involves three essential components: 1. developing an operational plan (executive management tool) 2. developing performance action plans (management tool) 3. managing performance (supervision and project leadership tool). May 2005 Page 23
  • Strategic Planning Training and Development Implementation During the implementation phase: Guidelines • Communicate planning results. • Determine who needs to be involved. • Make specific assignments. • Convert objectives into performance activities. • Formulate a comprehensive operational plan to coordinate all performance activities. • Define the scope of individual projects. • Use project management tracking tools to detail activities of all critical projects. • Conduct regular project reviews and evaluate progress. • Integrate significant project tasks into management tools such as the Individual Development Plan (IDP) and the Performance Planning and Review (PPR). • Make changes and corrections necessary to achieve targets. • Extend and revise action plans for the next phase. May 2005 Page 24
  • Strategic Planning Training and Development PHASE THREE: IMPLEMENT Operational planning sets the implementation phase of the strategic plan in motion. This is the process through which we strategically manage the gap between the present and the vision of the future. Process Steps for the Implementation Phase 1. Develop an The Operational Plan coordinates the overall Operational Plan scope of the implementation. It is the executive management plan for translating performance measures and targets from the strategic plan into performance initiatives. It is also the approved charter for authorizing initiatives and appropriating resources. Use operational planning tools to coordinate all activities emerging from the Strategic Plan including: • operations (ongoing efforts or activities that are built into the daily routine to generate repetitive products or services) • projects (temporary and unique initiatives with definite perimeters) • programs (service delivery systems). May 2005 Page 25
  • Strategic Planning Training and Development 2. Create Performance (action) plans define and clarify performance details that link strategic plan objectives, action plans performance measures, and targets to specific tasks and performance milestones. Action plans formulate: • implementation activities into performance projects, ongoing operations, and programs • assignments and responsibilities • communication tools and methods • resources • expected deliverables, timelines, and completion deadlines. 3. Manage Effective communication systems are essential performance to implementation. To maximize progress toward achieving goals, communicate standards, expectations, and guidelines for performance. Monitor and document progress. Prove results and ensure continuous progress by: • demonstrating supportive management behaviors • conducting ongoing appraisals of movement toward projected goals and outcomes • emphasizing feedback • making necessary modifications in direction • creating reports. May 2005 Page 26
  • Strategic Planning Training and Development Questions for the Implementation Phase Implementation • What is the overall scope of the work that we Questions need to accomplish? • What are our priorities? • We will achieve our objectives as the result of what actions? • What is the starting point and sequence for our actions? • What projects, operations, or programs must we design? • What activities and processes must we integrate into the daily operations? • What resources will we need? • What will be the impact of these actions on our customers or target group? • What will be the impact of these actions on our internal organization? • Who are the sponsors and stakeholders whose interests are affected? May 2005 Page 27
  • Strategic Planning Training and Development Action planning Many performance action plans can flow out of the operational plan. These plans advance the levels of detail and specific steps that are required to implement the strategic plan. Action plans: • Link operational initiatives to performance activities such as projects or ongoing operations. • Preplan each unique activity. • Focus on what work it will take to accomplish that performance activity. • Organize the work into a series of progressive steps or tasks that are logically related. • Define completion dates for the delivery of tangible outcomes, estimate time requirements and material resources, and identify necessary team members. • Organize tasks into performance plans that link the objective with individual or group responsibilities for outcomes. Action planning To create an action plan: process steps 1. Break initiatives into manageable parts. 2. Sequence interdependent activities. 3. Coordinate human and material resources. 4. Create schedules for completion for periods of up to a year. May 2005 Page 28
  • Strategic Planning Training and Development Performance Communicate performance requirements to all Management staff who do the work. Create reporting processes and systems. When necessary provide coaching, training, or performance feedback to support effective individual and group efforts. Use project management tools. To manage performance, track and manage all performance activities including: • temporary projects, ongoing operations, or programs that create specific outcomes or outputs • specific related tasks • staff assignments and responsibilities • resources • expected deliverables • timelines and completion deadlines. Performance To manage performance: management process steps 1. Lay out specific initiatives to implement objectives. 2. Sequence activities for periods of up to a year. 3. Coordinate details such as tasks, staff assignments, and material resources. 4. Create schedules for completion 5. Support performance efforts with necessary material resources and skills training. May 2005 Page 29
  • Strategic Planning Training and Development Performance Management Questions Performance • What will be new or different as a result of Management the initiative? Questions • What tangible, measurable, verifiable outcome will be delivered? • Are there project phases of related activities? • Are there milestones or significant events or completions within the project? • Who are the sponsors and stakeholders whose interests are affected by it? • Which individuals will be actively involved? • Which equipment and materials are needed to execute the project? • What are the specific timeframes and completion end dates? May 2005 Page 30
  • Strategic Planning Training and Development PHASE FOUR: MEASURE Measuring results is essential to the achievement of long-range goals. Your assessment data will reflect the direct effects of each strategy on your organization and on your customers. Continuous assessment of the impact of actions and strategic operations is critical to the success of plans because monitoring keeps plans on track. The process requires systems to measure results, monitor progress, and compile management information. Assessment Tools A variety of assessment tools and software may track: • processes related to performance of services or products • internal and external customer satisfaction and feedback • employee performance • employee satisfaction • quality matrixes for error rates, efficiency, and effectiveness. Process Steps for the Measurement Phase Process steps To measure results: 1. Decide which aspects of your projects would benefit from comparative or benchmark information and data. 2. Determine the appropriate quantity and type of data to collect. 3. Select methods to assess and report progress. May 2005 Page 31
  • Strategic Planning Training and Development Questions for the Measurement Phase Project Assessment • How will we measure results against our Questions: targets? • How will we monitor and document progress? • What will the impact be on our target groups or customers? • How will we know that it is worthwhile? • How will we analyze and explain that we are on or off track? • How will we make necessary corrections during implementation? May 2005 Page 32
  • Section Six: Appendix
  • Strategic Planning Training and Development Glossary of Terms Strategic Planning Elements Action Plans The Action Plan is a management tool for structuring the sustained efforts necessary to implement goals and objectives. They organize the actions that result in the transformation of vision into outcomes and outputs. Core Functions The core function is a unit’s reason for existence similar to how a mission defines the organization’s purpose. Core functions align divisions, departments, and units with the mission. Critical Success Factors CSF describe organizational capabilities or competencies that must be in place for the organization to achieve (be in) the vision. Deliverable A deliverable is any measurable, tangible, verifiable outcome, result, or item the organization must produce to complete a project or part of a project. Deliverables are usually subject to approval by the project sponsor or customer. Environmental Scan An environmental scan permits us to examine external and internal trends and important factors that influence our work. Relevant factors include economic, political, social, and technological trends. Analysis of trends and management issues reveal important priorities affecting the direction of strategic improvements. Goals Goals are high-level general results toward which the organization directs its efforts and resources. Goals signify the scope and boundaries of each key area. They define intentions relative to the primary issues represented in the vision and mission. May 2005 Page A-2
  • Strategic Planning Training and Development Mission The mission is a succinct, comprehensive statement of the organization’s purpose for existing, or a statement of its enabling legal statue. Mission statements identify customers and stakeholders and reinforce the organization’s responsibility. Objectives Objectives are concrete steps toward achieving goals. Objectives are milestones that drive the organization toward the vision. They may represent improvements in performing the core functions. They are measurable results of actions that answer the question: “We will base our success on….” Objectives identify what you can do to define your success that will be faster, better, or cheaper. Objectives identify priority initiatives that mobilize the strategy. A well-worded objective is Specific, Measurable, Attainable/Achievable, Realistic, and Time bound (SMART). Tactical Objectives Tactical Objectives are action-oriented objectives. Operational Plan An operational plan is the formal document that coordinates the overall scope for implementing the strategic plan. It is the tool of executive management. It translates performance and target measures into performance activities for daily operations. The operational plan serves as a charter for authorizing initiatives and appropriating resources. Performance Measures Performance measures, or indicators, are measurable characteristics of products, services, processes, and operations that can be used to track and improve performance. These indicators represent the most significant factors for achieving high levels of performance. Measuring performance ensures progress toward goals. If you do not measure results, you cannot distinguish success from failure. Performance measures answer the question: “What must we measure to demonstrate our success?” Efficiency Measures are indicators of cost or productivity associated with an action. Efficiency measures generally justify unit costs or time. May 2005 Page A-3
  • Strategic Planning Training and Development Explanatory Measures place factors in context by explaining their relevance, reliability, or practicality in relation to other contributing factors. Outcome Measures are results that indicate the actual impact of planned actions. They are tools to assess the effectiveness of performance and the benefit derived from it. Outcome measures typically quantify a percentage, rate, or ratio of effect upon a condition or problem. Output Measures are indicators that count workload and work products or services. Output measures quantify the actual numbers of people receiving services, or the amount of goods produced. Performance Plans The performance plan is the tool of the project team leader. It is a formal document used to guide both the execution and control of projects, ongoing operations, or programs. This tool organizes the day to day implementation tasks. It tracks progress on specific deliverables. The performance plan is a type of action plan. Scope The scope defines what is within the boundaries of a project and what is outside those boundaries. The purpose of defining scope is to clearly describe and gain agreement on the logical boundaries of the implementation. Strategic Plan The strategic plan is the written documentation of the planning process, its methods, and results. This record of the long-range plan contains performance measures and targets that identify projected achievements that unfold from three to five years. It captures the comprehensiveness, validity, and relevance of planned objectives. We implement the strategy to reach the objective. Strategic Planning Process Strategic planning is a long-term, future-oriented process of assessment, goal setting, and decision-making that maps a path between the present and a vision of the future. It is a structured effort to produce actions that shape and guide what an organization is, what it does, why and how it does it. The process applies strategies (methods) to achieve goals and objectives. May 2005 Page A-4
  • Strategic Planning Training and Development SWOT Analysis Review of strengths, weaknesses, opportunities, and threats affecting the mission, core function, goals or objectives. SWOT items correlate to the organization’s position in the business environment. Discussion and SWOT analysis yields necessary facts to consider when developing a vision. The positive factors (strengths and opportunities) suggest competitive advantage, support current strategies and improved performance. The negative factors (weaknesses and threats) impede performance and suggest risks in the current strategies. Strengths and weaknesses indicate internal conditions; Opportunities and threats indicate external conditions. Targets Targets are indicators of success as well as specific benchmarks, numbers, or thresholds of accomplishment. They determine effectiveness by measuring tangible and specific performance goals against actual achievements or other standards. Targets drive the action plan. Vision Vision is an inspiring view of the preferred future. It is a forecast of the future based on leader intuition and judgement; it becomes the foundation for a system of strategic changes. May 2005 Page A-5
  • Strategic Planning Training and Development Texas Workforce Commission Vision, Mission, and Philosophy Vision Texans will view local workforce development boards, the Texas Workforce Commission and their partners as a quality supplier of workforce solutions. Mission To promote and support a workforce system that offers employers, individuals and communities the opportunity to achieve and sustain economic prosperity. Philosophy Our work is guided by the following core beliefs: We believe that local communities are in the best position to address local workforce needs. We believe that the workforce system of Texas must be employer-driven. We believe that individuals must assume personal responsibility for making decisions about their lives and be accountable for their actions. We believe in collaboration and partnership. We believe in conducting business in accordance with the highest standards of ethics, accountability and efficiency. Our success will be based on the following organizational values: We are committed to excellence in everything we deliver or guide. We are committed to making the Texas Workforce Commission an exemplary employer. We are committed to treating people with respect and dignity and in a fair and equitable manner. We are committed to becoming an entrepreneurial, flexible and learning organization. We are committed to open and honest internal and external communication. May 2005 Page A-6
  • Strategic Planning Training and Development Web-site Resources for Strategic Planning and Performance Measurement Legislative Budget Board (instructions for agency strategic plans and other resources) http:/www.lbb.state.tx.us Governor’s Office http:/www.governor.state.tx.us American Society for Public Administration’s Center for Accountability and Performance http:/www.theroundtable.org American Society for Public Administration, CenTex Chapter http:/www.main.org/aspa Council of State Governments (research reports, benchmarking, awards, etc.) http:/www.csg.org State Auditor’s Office http://www.sao.state.tx.us University of Texas at Austin LBJ School of Public Affairs – Professional Development http://www.utexas.edu/lbj/profdev May 2005 Page A-7
  • Strategic Planning Training and Development Analytical Phase Worksheet - Record of Analysis Core Function ______________________________________________________ ______________________________________________________ ______________________________________________________ ______________________________________________________ Positive Factors Negative Factors Strengths Weaknesses __________________________ __________________________ __________________________ __________________________ __________________________ __________________________ __________________________ __________________________ __________________________ __________________________ __________________________ __________________________ Opportunities Threats __________________________ __________________________ __________________________ __________________________ __________________________ __________________________ __________________________ __________________________ __________________________ __________________________ __________________________ __________________________ Environmental Trends Economic Political Social May 2005 Page A-8
  • Strategic Planning Training and Development Technological Vision ______________________________________________________ ______________________________________________________ ______________________________________________________ ______________________________________________________ ______________________________________________________ May 2005 Page A-9
  • Strategic Planning Training and Development Planning Phase Worksheet – Long Range Goals Motivating Goals ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________ May 2005 Page A-10
  • Strategic Planning Training and Development Balanced ScoreCard Worksheet Planning Phase – Performance Objectives Perspective/ Tactic Objectives Measures Targets Core Function Customer Focus Internal Processes Learning & Knowledge Financial May 2005 Page A-11
  • Strategic Planning Training and DevelopmentMayMay Implementation Phase: Operational Plan Executive Management’s Overall Scope Overall Time Frame: ___________________________ Strategic Objective Major Performance Responsible Manager Resources Deliverables Initiatives Outcomes/Outputs May 2005 Sample Form Page A-12
  • Strategic Planning Training and Development Implementation Phase: Action Plan Manager’s Tool Description of Strategic Objective Measures: _______________________________ 1. ________________________________ _______________________________ ________________________________ _______________________________ ________________________________ 2. ________________________________ _______________________________ ________________________________ ________________________________ 3. ________________________________ ________________________________ ________________________________ Performance Activities Project Leaders Resources Status Timeframe Projects/Operations/ (Start Date/End Date) Programs May 2005 Sample Form Page A-13
  • Strategic Planning Training and DevelopmentMay Implementation Phase: Performance (Project) Plan Project Leaders’ Tool Team Leader _______________________ Overall Time Frame ________________ Due Date _________ Performance Activity Deliverables (Tangible Outcomes or Outputs) Strategic Plan Objective (Link for Impact ) Project/Operations/Program) Tasks Responsible Staff Progress Status Issues Date Finished 1. 2. 3. 4. 5. 6. May 2005 Sample Form Page A-14