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Module 6 Environmental Scanning and Identification of  Strategic Issues & Challenges
 

Module 6 Environmental Scanning and Identification of Strategic Issues & Challenges

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ME 217 and DM 214 Strategic Planning

ME 217 and DM 214 Strategic Planning

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    Module 6 Environmental Scanning and Identification of  Strategic Issues & Challenges Module 6 Environmental Scanning and Identification of Strategic Issues & Challenges Presentation Transcript

    • ME 217/DM 214 Strategic Planning
    • Prof. Jo B. Bitonio, DPA Princessita M. Fontanilla Michael John Fontanilla Reporters/Discussants
    • “If I had an hour to solve a problem and my life depended on the solution, I would spend the first 55 minutes determining the proper question to ask, for once I know the proper question, I could solve the problem in less than five minutes.”
    • How to identify Strategic Issues?
    • GETTING STARTED: IDENTIFYING ISSUES FACING THE ORGANIZATION • HOW TO IDENTIFY STRATEGIC ISSUES • KEY ISSUES/CHALENGES IN PANELCO III • POSSIBLE WAYS TO RESOLVE THE STRATEGIC ISSUES
    • IDENTIFYING THE STRATEGIC ISSUES FACING THE ORGANIZATION This step defines and describes the issues at hand succinctly, pinpoints the factors that make a certain issue a fundamental challenge.
    • IDENTIFYING THE STRATEGIC ISSUES FACING THE ORGANIZATION • In Bryson’s Strategic Planning Process, this phase will allow the organization to determine a list of issues they face, divide that list into categories of strategic or operational and finally, arrange these issues in order, such as priority, logical or temporal. (Bryson, 2004)
    • IDENTIFYING THE STRATEGIC ISSUES FACING THE ORGANIZATION • Identifying the strategic issues will help the stakeholders determine what is most important to an organization and will help them formulate strategies to address these issues.
    • WHAT IS THE DIFFERENCE BETWEEN ISSUE AND PROBLEM? Some business managers mistakenly use the term “issue” and “problem” interchangeably; however, doing so may complicate the daily decision making processes by lumping all issues and problems together and possibly make a bad situation worse. Separating issues from problems helps to prevent smaller issues from becoming problems. This business practice is so important that there is an entire management discipline predictably called, “issue management” (IM). http://www.studymode.com/essays/Issues-Vs-Problems-648552.html
    • WHAT IS THE DIFFERENCE BETWEEN ISSUE AND PROBLEM? The Dow Jones says that “successful issue management depends on addressing concerns before they become full blown problems.” 1. Therefore, it is deduced that issues are smaller, less threatening and require minimal effort to find resolution – but left unchecked could expose the organization to greater risk. There is an analogy to help put this concept into proper perspective – “forgetting your lunch is an issue, but losing your job is a problem. 2. Therefore, the difference between an Issue and a problem can be explained this way, “Problems are solved. Issues need to be resolved…. To solve is to explain and to resolve is to separate a thing into its component parts or elements, then determine a course of action.” (Jaques 2007. P 36, 37)
    • HOW TO IDENTIFY STRATEGIC ISSUES 1. Brainstorm Potential Strategic Issues Review vision, company values, opportunities, strengths as well as threats. Frame issues in the form of questions 2. Develop an Understanding Why an Issue is Strategic Discuss each identified issue Determine which issues are critical or strategic Test for strategic quality of an issue.
    •  TEST FOR STRATEGIC QUALITY OF AN ISSUE Does It: • Pose a threat? • Present an opportunity? • Require significant change? • Involve conflict/tension between choices? • Tend to be complex? • Generally project well into the future?
    • 3. Determine the consequences of not addressing an issue: • Each strategic issue will generally fall into the following categories: a) No action is currently required, but the issue should be monitored for future action b) Action can be determined through strategic planning process. c) The issue appears urgent and requires an important response.
    •  Failure to address the identified strategic issues eventually results in the realization of an external threat, lost opportunity, the lingering or worsening of an identified problem and ultimately a failure to achieve the corporate vision.
    • 4. Consolidate overlapping or related issues:  Combine related issues  Determine how are they related  The fewer the issues, the better.
    • 5. Arrange issues into an ordered list:  Three ways: a) Logical order b) Impact order c) Temporal order
    • ABSTRACT: The soul of Strategic Planning is to identify the Strategic Issues Facing the Organization. How? - Brainstorming (Strengths and Weaknesses) - Understanding its importance and relevance (Urgency) - Know its consequences (Pros and Cons) - Consolidate concerns (Arrange in an ordered list) - Address the issue
    • THE REAL SCENARIO
    • KEY ISSUES/CHALLENGES 1) ISSUES FACING THE COOPERATIVE: • Deregulation of Power Industry • Passage of R.A. 10531, otherwise known as “An Act strengthening the NEA, further amending for the purpose of P.D. 269, as amended” • Rampant pilferage/illegal connection • Increasing Account Receivables • Exposure from local politics • Numerous reportorial requirements by the government agencies
    • KEY ISSUES/CHALLENGES 2) ISSUES FACING THE MANAGEMENT/HEAD OFFICE: • Clamors against the implementation of the Reorganization • Employees Union Advocacies • Subdued Interpersonal relationship among heads and associates • Controversies as to the duties and functions of the BOD’s and the Management • Partial implementation of policies • Technological Advancement is not one of the priorities
    • KEY ISSUES/CHALLENGES 3) ISSUES FACING THE AREA OFFICES/SUB-OFFICES: • Weak customer relations • Diverse interpretation of policies and/or other rules and regulations of the cooperative • Presence of language barrier
    • DISTINGUISH ISSUES & PROBLEMS
    • Environmental Analysis Issues Problem 1. Deregulation of Power Industry 2. Passage of R.A. 10531, otherwise known as “An Act strengthening the NEA, further amending for the purpose of P.D. 269, as amended” 3.Rampant pilferage/illegal connection 4. Increasing Account Receivables 5. Numerous reportorial requirements by the government agencies
    • Environmental Analysis Issues Problems 6. Clamors against the implementation of the Reorganization 7. Employees Union Advocacies 8. Subdued Interpersonal relationship among heads and associates 9. Controversies as to the duties and functions of the BOD’s and the Management 1o. Partial implementation of policies 11. Technological Advancement is not one of the priorities
    • Environmental Analysis Issues Problems 12. Weak customer relations 13. Diverse interpretation of policies and/or other rules and regulations of the cooperative 14. Presence of language barrier 15. System lost too high (14%) 16. Violation of the BOD Term of office 17. Too much Board meetings Note: 15, 16, 17 lifted from CDA Findings during the inspection
    • DISTINGUISH BETWEEN TASK AND SOCIETY ENVIRONMENT
    • Environmental Analysis Task Environment Societal Environment 1. Deregulation of Power Industry 2. Passage of R.A. 10531, otherwise known as “An Act strengthening the NEA, further amending for the purpose of P.D. 269, as amended” 3.Rampant pilferage/illegal connection 4. Increasing Account Receivables 5. Numerous reportorial requirements by the government agencies
    • Environmental Analysis Task Environment Societal Environment 6. Clamors against the implementation of the Reorganization 7. Employees Union Advocacies 8. Subdued Interpersonal relationship among heads and associates 9. Controversies as to the duties and functions of the BOD’s and the Management 1o. Partial implementation of policies 11. Technological Advancement is not one of the priorities
    • Environmental Analysis Task Environment Societal Environment 12. Weak customer relations 13. Diverse interpretation of policies and/or other rules and regulations of the cooperative 14. Presence of language barrier 15. System lost too high (14%) 16. Violation of the BOD Term of office 17. Too much Board meetings Note: 15, 16, 17 lifted from CDA Findings during the inspection
    • PRIORITIZATION
    • Task Environment Ranking 1. Rampant pilferage/illegal connection 2.. Increasing Account Receivables 3. Numerous reportorial requirements by the government agencies 4. Clamors against the implementation of the Reorganization 5. Employees Union Advocacies 6. Subdued Interpersonal relationship among heads and associates 7. Controversies as to the duties and functions of the BOD’s and the Management 8. Partial implementation of policies 9. Technological Advancement is not one of the priorities 10. Weak customer relations
    • Task Environment Ranking 11 . Diverse interpretation of policies and/or other rules and regulations of the cooperative 12. Presence of language barrier 13. System lost too high (14%) 14. Violation of the BOD Term of office 15. Too much Board meetings Rank the order of importance from 1-15 - most important to less important
    • Society Environment Ranking 1. Deregulation of Power Industry 2. Passage of R.A. 10531, otherwise known as “An Act strengthening the NEA, further amending for the purpose of P.D. 269, as amended”
    • HOW TO ADDRESS STRATEGIC ISSUES? Areas to look at: I. Achievements and Failures (Net Profit, Staff Retention, Gained Market/Lost Clients, Low Sales, Low Efficiency) II. Profitable Products and Services III. Financial Ratios (Key Ratios, Benchmarks, Targets) IV. External Forces (PEST) – by Elsa Richards (EL)
    • Profitable Products and Services Illustration Company A Company B Company C Gross Sales 125M 275M 75M Expenses 50M 280M 10M Gross Profit 75M -5M 65M
    • External Factors: P POLITICAL E ECONOMIC S SOCIAL T TECHNOLOGICAL E ENVIRONMENT L LEGAL
    • WHERE DO YOU BELONG? There are 3 kinds of people 1) those who make things happen; 2) those who watch things happen; and 3) those who wonder what happened.
    • Thank you so much! Great Strategizing!
    • References: 1.CDA Strategic Planning Module 2.Florida MAPP Field Guide, Nov. 2008 Update 3.Strategic Planning (Research Foundation Methodology) 4.http://pa5251.wikipaus.com/++5.+ident ify+the+strategic+issue+facing+the+or ganization