LECTURE_3_STRATEGIC_PLANNING_IN_EDUCATIO.pptx

STRATEGIC PLANNING
IN EDUCATION (2015/2016)
Joel B. Babalola
Department of Educational Management,
University of Ibadan, Nigeria

CONTENTS
• Chapter one: understanding strategy – planning
for change, counting the benefits, leading your
competitors, looking to the future, shaping your
strategy
• Chapter two: Linking strategy to the market -
looking ahead (aiming), analyzing your
environment, looking at major forces (armies),
assessing the market, choosing your approach
such as: contextualizing through fitting to or
stretching the market, choosing your customers,
avoiding competition, three generic strategies
06/11/2022 (copywrite) Joel Babalola (2014) 2

CONTENTS
• Chapter three: Creating a good strategy– setting
the priorities, evaluating your options, reading
the future, involving stakeholders, linking strategy
to structure, knowing when to change, working
with others
• Chapter four: Implementing your strategy -
demonstrating leadership, achieving cultural tit,
preparing others for change, overcoming
resistance, guiding your team, monitoring
progress, managing knowledge, staying on top.

WELCOME TO STRATEGIC PLANNING
1. What is a strategy?
2. What is a strategic plan?
3. What is strategic in a strategic plan?
4. What is the difference between an operational
plan and a strategic plan?
5. Is a strategic plan different from a long-term
plan?
6. What is the difference between strategic
planning and strategic management?
7. Why the recent emphasis on strategic thinking
and planning especially in higher educational
institutions in Nigeria?
8. How do we go about the process of thinking and
planning strategically?
9. What are the managerial implications of
thinking and planning strategically?
10. What are the roles of university administrators?

A ROADMAP FOR EDUCATION
Isa 40:4-5
We devise strategies to confront with CHALLENGES facing us in performing our
tasks and reaching our goals effectively: “Every valley shall be exalted, and every
mountain and hill shall be made low: and the crooked shall be made straight, and
the rough places plain:5 And the glory of the LORD shall be revealed [Isaiah 40:4] ,
ROADMAP
Where are you?
Where are you going?
What must I do to get there?
DECISION
CRITERIA
Fasted Road?
Smoothest ?
Safest Road?
Cheapest?

What is a Strategy?
• Strategy generally involves setting goals, determining actions
to achieve the goals, and mobilizing resources to execute the
actions.
• A strategy describes how the ends (goals) will be achieved by
the means (resources).
• The senior leadership of an organization is generally tasked
with determining strategy.
• Strategy can be planned (intended) or can be observed as a
pattern of activity (emergent) as the organization adapts to its
environment or competes.
• Strategic planning is the process of defining organization’s
strategy or direction, making decisions on allocating
organization’s resources to pursue this strategy and
identifying the control mechanisms for guiding the
implementation of the strategy. Strategic planning helps to
coordinate the two processes of strategy formulation and
strategy implementation.

Features of a Strategy
• Transportation-like: They are developed to move an
organization or destination from its current competitive
position to a more desirable future competitive situation
• Timeframe process: They adopt a medium to longer term
time frame or process that evolves over a period of time
• Telescopic view: Their achievement involves vision,
objectives, direction and commitment involving all
elements of the organization or destination
• Template driven: Successful strategic decisions to match
the organization's activities with its resources. In other
words, strategies must be based on the current reality.
• Team based: They are very complex and involve many
stakeholders

A strategy is made up of decisions, directions and destinations
• No two destinations (or organizations) are the same
and, therefore, the decisions (or choices) made and
the directions (or paths) taken will vary from
destination to destination.
• Determining the best direction or path to take
involves understanding the unique situation facing
each destination, its competitive situation, strengths
and weaknesses, opportunities and threats (SWOT).
• These in turn will influence the establishment of
goals, whose achievement will be affected by the
ability to find or develop the necessary skills
required.

Shaping Strategy in Education Depends On The Type Of Sector
Criteria Private Sector Public Sector Voluntary
Who is the
customer?
Organizations in the
market
The public and
political leaders
Donors,
recipients and
volunteers
What are the
competitive
forces like?
Usually strong Usually weak Usually strong
What is the
comparative
advantage?
Competitive
advantage & “lead
time” consciousness
Public approval;
competition for
resources
Competitive
advantage &
stakeholders
management
What is the
currency of
strategy?
Profit & gaining
market share
Surplus and
service
Surplus and
social good or
charity
Source: Williams, K. [2009:15]

PLAN AND PLANNING
• A plan is the product of a planning process in which a
direction to a desired destination is set and then the
ways of and means for following that direction from
the origin to the destination are specified.
• A plan is a:
– Roadmap or an agreed reference of action designed by all
stakeholders
– Remediable indicator designed for adjustment in light of
new development during implementation
– Robust managerial tool comprising both the formulation
and implementation frameworks such as the hierarch of
objectives (philosophical, policy, programme, project and
procurement/expenditure), key actions and institutional
arrangements for implementation, monitoring and
evaluation

What is Strategic Planning?
• Strategic planning is a methodical and meticulous
method to produce fundamental decisions and
actions that shape and guide what an
organization is, who it serves, what it does, and
why it does it, with a focus on the future.
• Strategic planning determines where an
organization is going over the next year or more,
how it's going to get there and how to know
when one arrives at the destination.
• Effective strategic planning articulates where an
organization is going (destination and directions
or goals and objectives), the actions needed to
make progress (drivers) and how it will know if it
is successful (determinants).

What is Strategic Planning?
• Strategic planning is the contemporary
term used by planners to replace the
traditional term known as long-range
planning.
• This new phrase is meant to capture the
strategic nature of this type of planning
– Comprehensive
– Thoughtful (analytical and synthesizing)
– Well-placed nature

Why Planning Strategically?
• A strategic plan is a document used to communicate the
organizations goals, the actions needed to achieve those
goals and all of the other critical elements developed
during the planning exercise.
• Planners increasingly think and plan strategically because
of the increasing realization that
– Planning and people activities do not always means
achievement of goals; so it is important to plan strategically to
ensure that people activities are relevant to goal achievement
– Ploughing more resources do not always lead to more results;
there is need to plan strategically to ensure both efficiency
and effectiveness in the use of resources
– Planning all we want to does not always lead to doing all we
plan; it is better to plan strategically to prioritize impact areas
by weighing their benefits in terms of sustainability and
impacts to students and their household, institutions, society

What and Why is a Strategic Plan?
• A strategic plan is used to:
– Communicate the priorities of an organization,
– focus energy and resources,
– strengthen operations,
– ensure that employees and stakeholders work
toward common goals, mission, vision and
strategies
– establish agreement around intended
outcomes/results, and
– assess and adjust the organization's direction in
response to a changing environment.

OPERATIONAL AND STRATEGIC PLANNING PROCESSES
Indicator Operational Planning Strategic Planning
Problem
solving
Relies on past experience
to forecast assuming
constancy
Finds new ways/alternatives
approaches/scenario assuming
that changes are likely
Purpose Best use of resources Best courses of action
Rewards Efficiency, stability Effectiveness, impact
Information Present situation Prospective opportunities
Organization Bureaucratic and stable Entrepreneurial and dynamic
Risks Low High
Emphasis Routine activities Achieving goals
Source: Chang, G-C (2006): Strategic Planning in Education: Concepts and Steps, Paris: UNESCO
Note that operational planning is the same as the old long-range planning which means the
development of a plan aimed at achieving a policy or set of policies over a period of several years, the
assumption that the projection of (or extrapolation from) the past and current situation is sufficient
to ensure the implementation of future activities based on the assumption that the “environment is
stable.” Is the environment stable really?

What is Strategic Management?
What is Strategy Execution?
• Strategic management is the comprehensive collection
of on-going activities and processes that organizations
use to systematically coordinate and align resources
and actions with mission, vision and strategy
throughout an organization.
• Strategic management activities transform the static
plan into a system that provides strategic performance
feedback to decision making and enables the plan to
evolve and grow as requirements and other
circumstances change.
• Strategy execution is basically synonymous with
Strategy Management and amounts to the systematic
implementation of a strategy.

THE STRATEGIC MANAGEMENT CYCLE
Analysis
Appraisal
Planning
(& Policy)
Operational
definitions
Implementation
Monitoring
& Review
Evaluation
CHANG’S
“A-P-I-E”
MODEL

STRATEGIC MANAGEMENT FRAMEWORK
SHARED PURPOSE, PHILOSOPHY AND VALUES
FORMULATION IMPLEMENTATION
SITUATION
ANALYSIS
STRATEGIC
POLICY
FORMULATION
SETTING
STRATEGIC
GOALS
STRUCTURE,
STAFF, SKILLS
AND STYLE
SYSTEMS OF
CONTROL AND
FEEDBACK
Remote
external
environment
Diagnosis:
Opportunities;
Risk (Threat)
management;
Scenario planning
Guiding
policies;
Operational
Structure (Staff
& skills) and
Leadership style
Budgets and
Financial plans
Industry
environment
Strategic
decisions:
Competitive
advantage and
Generic strategy
Objectives:
Corporate;
Business;
Functional
Initiatives
(policies);
programmes and
investment
projects
Incentives
Internal
Assessment
Value Chain;
Core
competences
Measures
and Score
Cards
Mergers;
acquisitions and
divestures
Review and
Evaluation
Source: http://www.bing.com/images/search?q=strategic+framework+pictures (02/08/2015)

(1) Concerns about weaknesses and strengths
(2) Challenges of `threats and opportunities
(3) Construct remedial actions
(4) Choice of strategic goals (desired results), design
policy options and policy strategies
(5) Translate options and strategies into executable,
measurable and accountable actions (objectives, outputs,
strategies, responsibilities and time)
STRATEGIC MANAGEMENT (THE 5S MODEL)
Use the
Logical
Framework
Operationalization
Strategic
management
Formulation
Situation
analysis
SWOT (context,
inputs, process,
products and
benefits)
Strategic
policy
directions
Goals and
Strategies
Strategic
action
planning/cost
Objectives,outputs,
strategies,
responsibilities&time
What, what for,
how, who and
when6-10;3-5;1-2?
Execution
Strategic
execution
(reforms)
Strategic
evaluation

EDUCATION-SECTOR SITUATION
ANALYSIS (ESA)
• External environment
– Macroeconomic and socio-demographic
• Internal environment by sub sector (pre-primary,
primary, secondary, technical and vocational,
higher, nonformal education)
– Access/participation in education
– Quality of education
– External efficiency
– Costs and financing
– Managerial and institutional

STRATEGIC POLICY
AND PLAN
FORMULATION
+GOALS
+OBJECTIVES &
+TARGETS
• Dimensions of Policy (Goals
and Objectives)
1. Access
1. access,
2. participation,
3. equity,
4. inclusiveness
2. Quality
1. quality,
2. internal efficiency,
3. relevance, and
4. external effectiveness
3. Management
1. governance,
2. decentralization,
3. resource management
• These dimensions are addressed
with target indicators by time-
range (medium or long-term)
and with a few quantitative
indicators
• Particular emphasis should be
placed on formulating quantified
objectives such as enrolment,
admission, flow rates,
pupil/teacher ratios, supervision
rate, space utilization rate, share
of education in the national
budget

STRATEGIC ACTION PLANNING (PROGRAMMING)
• An action plan goes beyond policy statements (options and
strategies) and list of activities to further define and prioritize
actions, activities and required resources
• Programming in preparation for implementation by
translating the policy directions to operational terms
(providing meanings and measures)
• In this section, efforts are made to programme the activities
required to implement each policy direction by establishing
the timing, indicating the needed resources, distributing
responsibilities, preparing the budgets, etc
• Task of planners is to identify and order the concepts to be
used such as objectives, results, actions, activities,
measurements, resources, etc
• Tools used include the LogFrame and Simulation modelling

STRATEGIC EXECUTION OR IMPLEMENTATION AND
MONITORING MECHANISMS
Steps in planning for implementation are:
1. listing of activities that make up the programme
2. thinking through each of these activities
3. establishing inter-relationships between these
activities
4. establishing a network
5. setting activity duration
6. determining material, equipment and human
resource needs
7. deciding about time duration for the programme
implementation of each activity

STRATEGIC EXECUTION OR IMPLEMENTATION AND
MONITORING MECHANISMS
Other steps in planning for implementation are:
8. identifying identical activities of the programme which can not
be overlooked without affecting the duration of the
programme implementation and resources invested in it
9. thinking about organizational arrangements for carrying out
programme activities.
10.constructing implementation schedules by converting a plan
into an operating time table which establishes start and
completion time of all the activities of the programme/plan
using Programme Evaluation and Review Technique (PERT) and
Critical Path Method (CPM).
Note: A failure in the achievement of plan targets in the public sector is
generally attributed to the lack of detailed implementation plan

Target Setting Involves
1. Knowing government’s dreams or
intentions (or policy directions or
points on government’s agenda) for
the next few years
2. Translating each of the strategic
policies into specific, measurable
and achievable targets specifying the
deadline to achieve each of the
policies (specifying the period of the
plan stating the take-off time and
the destination time for each goal).
3. Setting targets for all intervening
years within the planning period.

30
50
75
100
Setting targets for all
intervening years helps to
• monitor the progress on
yearly basis
• review the
implementation
strategies and
• revise the targets for the
coming years.
15
Note: targets are not evenly distributed over
the intervening years for motivational purpose.
The goal is to increase the initial GER of 15% to
100% in four years. Slashing the goal to yearly
targets, the target for1st year is set at 30% or
increase of 15%. Then 2nd year target = 50%
with an increase of 20%, 3rd year is set at 75%
or increase of 25%, etc

• A strategy is made up of
activities and their tasks that
must be done to achieve each
target, say for example “to
improve access”.
1. Strategy for improving access
can be ‘opening new
schools’/expanding old schools
2. Activities for opening a new
school might include
‘construction of school
buildings’,
3. Tasks involve in construction of
a building might in turn be
specified (see the next slide)
Intervention
Strategies
-Policy,
-Strategy,
1 Activity
2 Tasks
Isaiah 40:31
but they that wait for
Jehovah (the Planner)
shall renew their
strength; they shall
mount up with wings
as eagles; they shall
run, and not be weary;
they shall walk, and
not faint.

• Tasks involved in the construction of a
building (project) might include:
1. identification of habitations without
schools
2. identification of habitations qualifying for
opening of schools
3. listing and prioritization of habitations
4. deciding about the number of schools to
be opened
5. identification of habitations where schools
are to be opened
6. deciding the location or the site of the
school
7. acquiring site or transfer of land
8. identification of agency for construction
and supervision
9. actual construction work
10. monitoring and supervision of
construction work
11. finishing and furnishing of school building.
Intervention
Strategies
-Policy
-Strategy
-Activity (Project)
-Tasks (Procedure)

• An effective strategy is expressed in
a:
1. Continuous actions (indicating
activities with their tasks) indicating
what should be done on every step
of the way until a particular target
(say improving access) is reached.
2. Consistent small changes on yearly
basis (sequencing and phasing out
the activities and their tasks)
indicating that an action is broken
down into graduated
accomplishable steps that will
cumulate in the expected major
changes at the end of the plan
3. Continuous assessment mechanisms
to measure the progress of each
programme or project every step of
the way (see Slide 26)
Intervention
Strategies
-Policy,
-Strategy,
-Activity
-Tasks

Costing and Budgeting
• Translating all the activities and tasks which have
financial implication into financial requirements is
essential for funding purpose.
• Various steps that are involved in estimation of
financial requirements are:
1. listing of all the activities to be undertaken
2. classifying all these activities into those with and
without cost implications
3. classifying the activities which have cost implications
into
a) recurrent (salaries, training, maintenance of building,
equipment, furniture, infrastructure, travel costs; stationary
and consumables, contingencies, rents etc.) and
b) capital (construction of school building, additional classrooms,
toilets, fencing wall, equipment, furniture; infrastructure;
vehicle etc.)

Costing and Budgeting
4. working out the average cost of recurring activities and
unit cost for non-recurring activities
5. estimation of costs separately under the recurring and
non-recurring heads.
6. In costing the plan, it is important to take into
consideration the financial parameters fixed by the
higher level decision making bodies and adhere to the
ceilings on various items and other financial parameters
prescribed by the approving body which may be the
federal or the state government.
• For budgeting purposes, activities should be
classified according to the year of beginning and
completion of the activities and the budget should
correspond to the activities indicated to be
completed in that particular year

M&E: IDENTIFICATION OF INDICATORS OF PERFORMANCE
Direct Indicators Indirect (proxy) Indicators
Used for objectives that are
relate to a directly observable
change resulting from
activities and outputs
Used if the achievement of objectives (1) is
not directly observable like the quality of
life, organizational development, or
institutional capacity; (2) is directly
measurable only at unjustifiably high cost;
(3) is measurable only after the life span of
the project
If the expected result is to
train over two years 250
inspectors in educational
planning and management,
then the direct statistical
indicator would be simply a
count by semester or by year
of the number of those
actually trained in this field
If the expected result is greater awareness
among the general public and policy
makers about the major challenges of
HIV/AIDS in education, then the indicator
might be to collect data on the number of
times public figures spoke of these
challenges and/or the number of times the
mass media reported on these challenges
(every six months

Qualitative and Quantitative (QQT) Indicators of Progress
Quantitative Indicators Qualitative (narrative) Indicators
• The frequency of meetings
• The number of people
• Growth rate
• The intakes of inputs like
grants, buildings, teachers
• Adoption and
implementation of outputs
• Level of participation of stakeholder
• Stakeholder opinions and satisfaction
• Aesthetic judgments (taste, texture,
colour, size, shape, etc)
• Decision-making ability
• Attitudinal and behavioural changes
• Evidence of consensus
The quantity-quality-time
approach to indicator
construction is a good one but
efforts should be made to
balance indicators with some
focusing on quantitative and
others on qualitative aspects
If the expected result is to enhance
capacities for organization and
management of nonformal education, then
the indicator might be through a follow up
questionnaire to be circulated among
those individuals who participated in
training activities to ask them what they
did as a result of participation. Once a year
for several times

Classification of Evaluation by Evaluator
Type Characteristics
Internal When the evaluation concerns a programme
implemented entirely within an institution, is
carried out by the persons belonging to the same
institution as those managing the programme,
sometimes in cooperation with the assistance of
external evaluator
Self-
evaluation
Internal evaluation done by those who
implement the programme
External When the evaluation concerns a programme
whose implementation involves persons from
outside the institution, often carried out by
evaluators independent of the institution

Classification of Evaluation by Time of Evaluation
Type Characteristics
Formative Sometimes called mid-term evaluation because it
is done while the programme is on-going and the
main goal is to correct the course taken by a
programme and its results are usually intended for
those implementing it.
summative Sometimes called end-of programme evaluation
and it leads to conclusions about the value of the
programme so that lessons can be learnt for the
future
Ex-post This is another form of formative evaluation which
is conductive some time after the completion of
the programme in order to draw conclusions on
the impact and sustainability of the programme

Monitoring (Regularly & Continuously)
• Monitoring is a process in which the progress of
activities is repeatedly observed and analysed on a
continuous basis to ensure that the expected result is
achieved.
• In doing this the implementers, who focuses on the
system efficiency, examines financial accounts, mission
reports, monthly/quarterly reports, training records,
minutes of meetings to assess:
1. Whether and how (efficiently and effectively) INPUTS are
being used
2. Whether and how planned activities are being carried
out in the PROCESS of implementation
3. Whether OUTPUTS are being produced as planned (back
to Slide 23)

Review (Done once in a while-annually)
• Otherwise known as a mid-term review, the results of a
review are meant to serve the implementers as well as
the providers of funds to adjust, improve or correct the
course of programme activities.
• While monitoring focuses on efficiency, review
emphasises effectiveness and relevance and it depends
on annual status reports, survey reports, national
statistics (e.g. statistical yearbooks), and consultants’
reports to assesses:
1. Whether the activities have delivered the expected
outputs
2. Whether the expected outputs are producing the
expected outcomes or whether there is an indication
that the outputs are contributing to the purpose of the
project or programme

Objects of Monitoring and Evaluation
• Objects of monitoring and evaluation are:
1. Inputs (human, material, physical and financial).
2. Outputs (tangible results, products and services
in form of graduates and knowledge acquired)
3. Outcomes (effects of utilizing the outputs,
graduates and their knowledge, such as increase
in earnings to graduates, productivity increase to
employers, social benefits to the families of
graduates and socioeconomic benefits to the
society)
4. System’s relevance, efficiency, effectiveness,
impacts and sustainability

System Analysis (Needs-OR-OUTs) in Monitoring & Evaluation
Systems (comprising parts and relationships between parts) are often
analyzed in terms of relevance, effectiveness, efficiency, impacts and
sustainability (SIEER)of policies, programmes and projects
Outputs & Outcomes
Needs Objectives Resources
Hypothetical
Relevance
Efficiency
Effectiveness
Real Relevance
impacts
sustainability

In summary: what are the steps (frameworks) in
strategic planning & management?
1. Situation analysis or assessment, where an
understanding of the current internal and external
environments is developed,
2. Strategy formulation, where high level strategy is
developed and a basic organization level strategic
plan is documented
3. Strategy execution, where the high level plan is
translated into more operational planning and action
items, and
4. System evaluation or sustainment of the
management phase, where on-going refinement and
evaluation of performance, culture, communications,
data reporting, and other strategic management
issues occur.

What is strategic planning process?
Strategic planning is a collective,
institution or organization-wide process
for developing creative initiatives that
channel resources to fulfil the
institution's mission and take maximum
advantage of trends in the external and
internal environment.
It often focuses on a major part of the
organization such as a division,
department or other major function such
as teaching and doing research.

Strategic planning process is made up of:
1. Premising through environmental scanning,
2. Purpose setting: envisioning and missioning
3. Policy formulation
4. Priority setting and phasing
5. Practical reforms
1. structure, staff, styles, systems
6. Projection of costs
7. Procedure for monitoring and assessment

A Strategic Formulation (The ADA Framework)
Strategic
Analysis
Strategic
Direction
Setting
Strategic
Action
Planning

1. Strategic Analysis
• This activity can include conducting some sort
of scan, or review, of the organization's
environment (for example, of the political,
social, economic and technical environment).
– Planners carefully consider various driving forces
in the environment, for example, increasing
competition, changing demographics, etc.
– Planners also look at the various strengths,
weaknesses, opportunities and threats (an
acronym for this activity is SWOT) regarding the
organization.

2. Setting Strategic Direction
• Planners carefully come to conclusions about what the
organization must do as a result of the situation analysis.
• Goals should be designed and worded as much as possible
to be specific, measurable, acceptable to those working to
achieve the goals, realistic, timely, extending the
capabilities of those working to achieve the goals, and
rewarding to them, as well. (An acronym for these criteria
is "SMARTER".)
• Strategic "philosophy". This includes identifying or
updating the mission, vision and/or values statements.
1. Mission statements are brief written descriptions of the
purpose of the organization.
1. An overall mission statement.
2. A specific purpose statement

2. Setting Strategic Direction
2. Vision statements are usually a compelling description
of how the organization will or should operate at some
point in the future and of how customers or clients (for
example students and employers of labour) are
benefiting from the organization's products and services.
3. Values statements list the overall priorities in how the
organization will operate. Some people focus the values
statement on moral values.
– Moral values are values that suggest overall priorities in how
people ought to act in the world, for example, topmost,
foremost, best among bests, integrity, honesty, respect, etc.
– Operational values which suggest overall priorities for the
organization, for example, to expand market or student share,
increase efficiency, etc.

3. Strategic Action Planning
• Action planning is carefully laying out how the strategic goals
will be accomplished.
• It often includes specifying objectives, or specific results, with
each strategic goal. Therefore, reaching a strategic goal
typically involves accomplishing a set of objectives along the
way -- in that sense, an objective is still a goal, but on a
smaller scale.
• Often, each objective is associated with a tactic, which is one
of the methods needed to reach an objective. Therefore,
implementing a strategy typically involves implementing a set
of tactics along the way -- in that sense, a tactic is still a
strategy, but on a smaller scale.
• Action planning also includes specifying responsibilities and
timelines with each objective, or who needs to do what and
by when. It should also include methods to monitor and
evaluate the plan, which includes knowing how the
organization will know who has done what and by when.

Strategic Action Planning
Goals
(ends)
Objectives
Strategies
(means)
Tactics
Responsibilities
Timeline

3. Strategic Action Planning
• It's common to develop an annual plan (sometimes called the
operational plan or management plan), which includes the strategic
goals, strategies, objectives, responsibilities and timelines that should
be done in the coming year.
• Often, organizations will develop plans for each major function, division
department, etc., and call these work plans.
• Usually, budgets are included in the strategic and annual plan, and with
work plans. Budgets specify the money needed for the resources that
are necessary to implement the annual plan. Budgets also depict how
the money will be spent, for example, for human resources, equipment,
materials, etc.
• Operating budgets are usually budgets associated with major activities
over the coming year. Project budgets are associated with major
projects, Cash budgets depict where cash will be spent over some near
term, for example, over the next three months (this is very useful in
order to know if you can afford bills that must be paid soon. Capital
budgets are associated with operating some major asset, for example, a
building, automobiles, furniture, computers, etc.

A Strategic Planning as a Process
• Strategic planning is a process and thus has inputs,
activities, and outputs.
• The process may be formal or informal and is typically
iterative, with feedback loops throughout the process.
• Some elements of the process may be continuous and
others may be executed as discrete projects with a
definitive start and end during a period.
• Strategic planning provides inputs for strategic
thinking, which guides the actual strategy formation.
• The end result is the organization's strategy, including a
diagnosis of the environment and competitive
situation, a guiding policy on what the organization
intends to accomplish, and key initiatives or action
plans for achieving the guiding policy.

Strategic Planning Inputs
• Data is gathered from a variety of sources, such as
interviews with key executives, review of publicly available
documents on the competition or market, primary research
(e.g., visiting or observing competitor places of business or
comparing prices), industry studies, etc.
• This may be part of a competitive intelligence programme.
• Inputs are gathered to help support an understanding of
the competitive environment and its opportunities and
risks.
• Other inputs include an understanding of the values (prices)
of key stakeholders, such as the board, students and their
parents, and senior management.
• These values may be captured in an organization's vision
and mission statements.

Strategic Planning Activities
• The essence of formulating school competitive strategy is relating an
institution of learning to its environment.
• Strategic planning activities include meetings and other communication
among the organization's leaders and personnel to develop a common
understanding regarding the competitive environment and what the
organization's response to that environment (its strategy) should be. A
variety of strategic planning tools (described in the section below) may
be completed as part of strategic planning activities.
• The organization's leaders may have a series of questions they want
answered in formulating the strategy and gathering inputs, such as:
1. What is the school's business or interest (Purpose)?
2. What is considered "value" to the customer or constituency (Price)?
3. Which products and services should be included or excluded from the
portfolio of offerings (Product)?
4. What is the geographic scope of the organization (Perimeter)?
5. What differentiates the organization from its competitors in the eyes of
customers and other stakeholder(Peculiarity)?
6. Which skills and resources should be developed within the organization
(People development)?

Strategic Planning Outputs
• The output of strategic planning includes documentation and
communication describing the organization's strategy and how it
should be implemented, sometimes referred to as the strategic plan.
• The strategy may include a:
1. diagnosis of the competitive situation
2. guiding policy for achieving the organization's goals, and specific action
plans to be implemented.
3. strategic plan may cover multiple years and be updated periodically.
• The output may also include a monitoring document. The organization
may use a variety of methods of measuring and monitoring progress
towards the objectives and measures established, such as a balanced
scorecard or strategy map.
• The output may further include a financial document. Organizations
may also plan their financial statements (i.e., balance sheets, income
statements, and cash flows) for several years when developing their
strategic plan, as part of the goal setting activity.
• It may also include an annual budget. The term budget is often used to
describe the expected financial performance of an organization for the
upcoming year.

Analytical Tools and Techniques
1. SWOT analysis, which addresses internal strengths and weaknesses
relative to the external opportunities and threats;
2. PEST analysis, which covers the remote external environment
elements such as political, economic, social and technological;
3. Porter’ s five forces analysis, which addresses industry attractiveness
and rivalry through the bargaining power of buyers and suppliers and
the threat of substitute products and new market entrants;
4. TOWS analysis, which assists an organization to identify the means by
which it can use its strengths and opportunities it has to get what it
needs and combat external threats
5. Scenario planning, which was originally used in the military and
recently used by large corporations to analyze future scenarios;
6. Growth-share matrix, which involves portfolio decisions about which
businesses to retain or divest; and
7. Balanced Scorecards and strategy maps, which creates a systematic
framework for measuring and controlling strategy.
54

FOUR STAGES OF WAR
WITHDRAWAL ADVANCE
DEFENCE
ATTACK
Preparation and planning, approach
and assault reorganization
GAINING
COMPETITIVE
ADVANTAGE

PEST Analysis
1. PEST analysis is used to analyse the remote
external environment elements such as
political, economic, social and technological
2. PESTLE analysis adds legal or regulatory and
ecological or environ mental elements to
PEST analysis.

PESTLE
POLITICAL
Laws, policies,
political goals &
ideologies
ECONOMIC
Inflation, economic
growth, recession,
employment rate
SOCIAL
Impacts of belief,
tastes., fashion,
attitudes and work
ethics
TECHNOLOGY
Emergence and
access to
automation, ICT,
LEGAL
Laws, rules and
regulations,
enactment,
enlightenment,
enforcement
ECOLOGICAL
[Pollution.waste]

Scenario Planning
1. Scenario planning is used to analyse future scenarios, situations or
circumstances in the face of uncertainties.
2. Educational institutions are turning to scenario planning to help them
visualise how their future landscape could change over time.
3. A solid plan depends on a solid vision of the future. Owing to limited
information, future cannot be easily predicted in a changing world.
4. Forecasting and projections are used to project the way things will develop
in the future. Basing plans on forecasts (extrapolations from the present)
may be acceptable if the time horizon is short, but for a strategy meant for
five or ten years from now, this may be unreliable and dangerous.
5. In the event of uncertainties, a scenario planning can be used to imagine
how uncertainties could play out, visualise how different futures could
unfold, envisage alternative future terrains, and craft flexible strategies.
6. Scenario planning is not intended to be a predicting tool (it cannot tell what
will actually happen), but rather for exploring the future and generate
plausible and eye-opening ideas about what could happen in the
environment.

Projection
• Projections paint a picture
of the future as a variant of
the way things already are
today.
• The steps include
– Take the current numbers
about some variables that are
considered most predictive of
the issue at stake,
– tweak those numbers using
projection techniques,
– extrapolate into the future,
and
– create a picture of how the
future will look like in the
next five or ten years from
now.
Forecasting
• Forecasting involves envisaging a
future in an area of endeavour,
identifying some key dimensions
of an issues and the variables that
are predictably associated with
the issue at stake; and projecting
the envisaged future as a variant
of the way the predictive
variables are estimated today.
• By forecasting some of the key
variables that determine the
dimensions of an issue, say,
international recruitment
landscape (variables such as
current enrolment growth from
your key source markets,
availability of financial aid,
population growth, etc.), your
gaze is firmly focused on a set of
essentially marginal details.

• In scenario planning, the belief is that there are all sorts of shifts
in the global marketplace that could affect the institution’s
future, such as:
– Economic shifts or currency exchange rate fluctuations;
– The arrival of new, high-visibility competitors in your market;
– Technological innovations (e.g., broadband Internet access);
– Political upheavals;
– Legislative changes (e.g., immigration rules, government spending);
– Shifting attitudes on the part of foreign students, their parents, or future
employers (e.g., willingness to spend on
• In scenario planning, critical questions are posed, such as:
– What issues would you have to address in each scenario if you want be successful?
– What capabilities would your institution or agency need to master in order to
thrive in each scenario?
– Are there specific strengths you would need to beef up, or weaknesses you would
need to overcome?
– What policies – financial aid, marketing, student services, human resources –
would serve your institution/agency best in each scenario?
– How much would they cost to implement?
– Where should you put your priorities?
– Thinking about the future in terms of alternative landscapes means you can make
more flexible, more thoughtful, and better strategic decisions today. Instead of
putting all your eggs in one basket

Steps in Scenario Planning
1. Identifying the driving forces: These are direct and indirect
factors impacting on the issue on ground. Scenario planners
often “PEST” to focus the list of influential trends on these
four categories:
2. filtering the list of driving forces down to the most “critical
uncertainties” of them all. This is necessary for two reasons:
you just cannot work with large number of variables. And, by
identifying the two forces that could each have the greatest
potential impact on the future, while at the same time being
the most uncertain to know in advance how they will unfold,
you define the parameters of four different scenarios that
realistically have the potential to emerge.
3. combining these two critical uncertainties into a matrix
defining the four different scenarios that can realistically
emerge and make a big difference if they do. For instance,
will the economy be stable or unstable? Will competitor grow
or stall?

Describing each Scenario in the Light
of Challenges and Opportunities
• Scenario 1: Faced with declining interest on the part of Asian students
to leave their home country to study abroad, schools should jump on
the MOOC bandwagon and be prepared to shift their marketing
energies to other areas of the world.
• Scenario 2: Asian students show an increasing interest to leave home,
but the competitive threat of MOOCs has to be overcome. So marketing
should emphasise personal mentoring and networking benefits.
• Scenario 3: Given our assumptions with respect to political instability
(as shown in the graphic above), demand is high and MOOCs are weak.
• Scenario 4: With a decade of Asian stability, and MOOCs having stalled,
excellent Asian schools may have established themselves, and intra-
Asian competition would be a factor to be reckoned with. What to do if
you are a Nigerian, European or American institution? Emphasise the
value of the things these Asian schools would not have built up yet,
such as alumni networks or job placement assistance.

Porter Five Forces Analysis
1. Porter five forces analysis addresses
industry attractiveness and rivalry
through
a) the bargaining power of buyers and
suppliers and
b) the threat of substitute products and
new market entrants

POTENTIAL
STARTING POINT
POTENTIAL
SUBSTITUTES
POWER OF
SUPPLIERS
POWER OF
STAKEHOLDERS
POTENTIAL
STRUGGLES
• How easy or difficult?
• What are required?
• How easy to switch to
other alternative?
• Too much suppliers power bad
• How easy to switch supplier?
•Too much buyer’s power bad
•How easy for customer to drop you?
•Is there growing room for all?
•Is the market contracting ?
PORTER’S
5 FORCES

SWOT Analysis
1.SWOT analysis addresses
– strengths (strong points)
– Weaknesses (weak points)
– opportunities (openings)
– threats (fears)

STRENGTHS TO
CONTINUE
•Good reputation
•Good financial
support
•Efficient process
WEAKNESSES
TO CHANGE
•Problem recruiting
staff in key positions
•Expensive relatively
OPPORTUNITIES
TO TAP
• likely to merge
with us
• We could
strengthen our
roles
THREATS TO
TACKLE
•Work of a related
institution has already
been outsourced
•We have poor relation
with some of our
customers
POSITIVE NEGATIVE
EXTERNAL
Ethnographic
INTERNAL
Demographic
SWOT
ANALYSIS
To
know
what
is
changing
around
and
what
to
change
within

ANALYZE THE STRENTHS BEFORE THE WEAKNESSES
• A strategist was invited into an organization
when they had the insight and the courage to
seek change to improve their missionary
impact.
• But when the strategist arrived, there were
invariably leaders and members who were
nervous about the process.
• They were nervous because change means
loss. What will change? Will it affect me? Will
they change what I like about this
organization?

LOOK AT THE ORGANIZATION’S STRENTHS
BEFORE ITS WEAKNESSES
• One reason to begin with identifying and articulating
what doesn’t change is to assure everyone that
indeed there are many things that will not change. By
beginning any change process with what doesn’t
change, we relieve the tension and anxieties up
front, or at least as much of it as we can.
• By beginning with what doesn’t change, we also lay
the necessary foundation for aligning the change
(the new vision) to the fundamental identity (value)
and purpose (mission) of the institution.
• Without preserving the purpose of an organization,
the strategic change will not be aligned to anything,
and what ends up changing will be based merely on
the loudest voices in the organization.

CONTINUITY PLANNING BEFORE CHANGE PLANNING
• What should remain unchanged so as to lower the
Blood Pressure (BP) of workers while anticipating
a reform?
– Beliefs or the core values of the organization.
• What makes us unique and cannot be compromised?
• What is the non-negotiable philosophies?
– Purpose or the mission of the organization
• What do we do, and what do we not do?
• the organization wants to preserve and protect
these non-negotiable strengths.
• Thus, efforts should be made to retain the
organization’s strengths in the light of its identity,
belief and mission while a reform is being planned.

CHANGE PLANNING AFTER CONTINUITY PLANNING
• Efforts should be made to devise strategies in
the light of the:
• mission:
– Where do we focus?
– What are our distractions?
– Where should we not focus?
• Vision:
– Where are we going? Where is our Terminus?
– How will we know when we’ve arrived? What is our Target?
• initiatives or actions:
– What plan do we have for division of activities?
– What provision shall we make to achieve each activity?
– What plan do we have for supervision and revision of strategies?
– What plan do we have for revision of strategies?

Figure 2: TOWS matrix for strategy development
Mini-Mini
Develop strategies to
minimize internal
weaknesses in order to
minimize some external
threats
Internal
Factors
External
Factors
Maxi-Mini
use of strengths
to cope with or
avoid threats
Maxi-Maxi
utilizing one’s
strengths to take
advantage of
opportunities.
Strengths (S)
strengths in
management, staffing,
finance, research and
skills
Mini-Maxi
development of strategy
to overcome weaknesses
in order to take
advantage of
opportunities.
weaknesses (W)
weaknesses in
management, staffing,
finance, research and
skills
External threats (T)
E.g. power shortage,
competition, and areas
similar to those shown in
the opportunities box
above.
External opportunities (O)
(Consider risks also) e.g.
Current and future
economic conditions;
political and social changes;
new services and
technology

Maxi-Mini
Strategy
• Using what you have to strengthen
one’s areas of weakness as well as
to increase one’s faith to face fears
of uncontrollable adversities.
• Utilizing one’s strengths in
management, staffing, finance,
research and/or skills to cope with
or circumvent present national
power shortage, economic hardship;
corruption; value degradation and
changes in teaching technology
• The University of Ibadan can identify
measures to mobilize its highly
experienced and exposed academic
staff to develop local technologies
to cope with electricity and
advances in teaching technology
use of strengths
to deal with
weaknesses or
avoid threats

MAXI-MAXI
STRATEGY
• Using what you have to get what
you don’t have but are available
somewhere outside.
• Utilizing one’s strengths in
research and/or skills to take
advantage of the present and/or
future economic conditions;
political and social changes; new
services and technology
• The University of Ibadan can
identify measures to mobilize its
highly experienced and exposed
academic staff to attract
international research grants for
graduates and junior academics
Utilizing one’s
strengths to take
advantage of
opportunities

MINI-MAXI
STRATEGY
• Look for ways by which one’s
weaknesses in areas of
research and/or skills can be
strengthened so as to take
advantage of the present and/or
future economic conditions;
political and social changes; new
services and technology
• The University of Ibadan can
identify measures to train and
develop inexperienced and
immature staff to be able to write
grant-winning proposals and
attract international research
grants for graduates and junior
academics
Develop a line of
attack to
overcome
weaknesses in
order to take
advantage of
opportunities.

MINI-MINI
STRATEGY
• Finding ways to eliminate one’s
weaknesses in management,
staffing, finance, research and/or
skills through measures such as
retrenchment, liquidation and so
on to minimize present and/or
future threats posed by changes
in economic conditions; politics
and society; new services and
technology
• For example, one can retrench
some unproductive members of
staff and liquidate some fixed
assets so as to minimize present
and future economic threats.
• However, there might be the need
to cut off threats’ supply routes
such as root causes of
unproductive staff and wastages.
This involves minimizing
or eliminating one’s
weaknesses to minimize
some threats as well as
blocking the supply
routes of weaknesses
and threats

Growth-
share matrix
• Growth-share matrix
or Boston Consulting
Group or BCG matrix
involves portfolio (group)
decisions about which
businesses to retain or
divest
• To use the chart, analysts
plot a scatter graph to
rank the business units
(or products) on the basis
of their relative
1. growth rates, and
2. market shares
• Thus the name “growth-
share” matrix

Growth-
share matrix
• Cash cows- high market share
in a slow-growing industry.
• These units typically generate
cash in excess of the amount
of cash needed to maintain
the business.
• They are regarded as sober
and boring, in a "mature"
market.
• They are to be "milked"
continuously with little
investment since such
investment would be wasted
in an industry with low
growth.

Growth-
share matrix • Dogs, are units with low
market share in a mature,
slow-growing industry.
• These units typically "break
even", generating barely
enough cash to maintain
the business's market
share but such a unit is
worthless, being unable to
generate cash for the
company.
• Consequently, Dogs, it is
thought, should be sold off.

Growth-
share matrix
• Question marks (problem
children) are business operating in
a high market growth, but having a
low market share.
• They are a starting point for most
businesses since they have a
potential to gain market share and
become stars, and eventually cash
cows when market growth slows.
• If question marks do not succeed in
becoming a market leader, then
after perhaps years of cash
consumption, they will degenerate
into dogs when market growth
declines.
• Question marks must be analyzed
carefully in order to determine
whether they are worth the
investment required to grow
market share.

Growth-
share matrix
• Stars are units with a high
market share in a fast-growing
industry. Stars require high
funding to fight competitions
and maintain a growth rate.
• As a particular industry
matures and its growth slows,
all business units become
either cash cows or dogs.
• The natural cycle for most
business units is that they
start as question marks, then
turn into stars, then becomes
a cash cow and at the end of
the cycle the cash cow turns
into a dog.

Balanced Scorecards
and strategy maps
• Balanced Scorecards and
strategy maps, is used to
create a systematic
framework for measuring
and controlling strategy.

Balanced Scorecards
and strategy maps
create a systematic

STRATEGY IS MADE UP OF:
1. DIRECTIONS TO MOVE TO BETTER DESTINATIONS
2. DECISIONS ABOUT RIGHT DIRECTIONS
3. DESTINATIONS BETTER THAN PRESENT POSITIONS

Strategies Answer Six Questions:
1. What products/services do I want to
offer?
2. What products/services do I not want to
offer?
3. Which markets/sectors do I want to
target?
4. Which markets/sectors do I want to
avoid?
5. Who do I choose to compete with?
6. Who do I choose not to compete with?

STRATEGY
INVOLVES
DECISIONS
OR A
CHOICE OF
AN
APPROACH
TO ISSUES
Inside-
out or
outside-
in
Fit
Or
stretch
Same or
different
segment
Let in or
let go
customer
Cost leadership
or
differentiation
[or
specialization
1. Two approaches are not usually
mutually exclusive
2. Good strategies usually involve
a combination [balance] of
more than one approach
3. The essence is to gain
competencies regarding the
ways in which resources are
turned into valuable activities
4. Ask what resources do we
have? Does location give
competitive advantage? Do we
have better access to inputs
more than others? Do we have
method or tech to advantage?

Inside-Out Versus Outside-In
Inside-Out
• Looking at resources and
competencies individuals and/or
the institution have that are of
value to the organization and to
the market
• Remember that resources alone
are useless until they are put into
use
• Playing to one’s strengths
regarding how an individual uses
what he or she is good at and
identifying market for it will
eventually determine one’s
success. Low risk strategy
• Lack of market may render this
approach less attractive or less
viable if no body wants to buy
what an individual is good at
Outside-In
• Identifying what the customers
and the market are going to
need or want in the future, and
then developing your resources
and competencies to satisfy
those needs
• The disadvantage of this
approach is difficulty in aligning
what the market wants with
what one is good at
• If what the market wants is not
what one is good at, or it is
difficult or not affordable to
acquire the relevant resources
and competence, then success
will suffer. High risk strategy
• Striking a balance between the
“inside-out” and “outside-in”
approaches might be needed

Fitting Approach or Stretching Approach
Fitting
The fitting approach involves
responding to market forces and
other macroeconomic forces by
fitting strategies to changes in the
external environment and
effectively standing still in the
storms. Fitting strategy is existing
product into either new or old
market
On the other hand, stretching
approach is introducing a new
product either into the existing or
new market instead of fitting the
exiting product into the change in
the external environment
Stretching
Existing
product
into new
market
New
product
into new
market
Existing
product to
existing
market
New
product
into
existing
market
Existing Product
Exiting
Market
Ansoff matrix
When there are changes in the market
or in the microeconomic environment,
one can be forced to take four main
actions (Matrix) New Product
New
Market

Same Segment Versus Different Segment Approaches
• Choosing a segment to
avoid unnecessary
competition
• A segment is a subgroup
within a market that
specifically defines a
homogeneous group of
customers
• For example within the
school market, segments
include low-income
parents looking for
affordable but standard
private schools for their
children
Standard
School
[$]
Brand
A
Executive
School
[$$]
Brand
B
Luxury
School
[$$$]
Brand
C
Brand
D
Brand
E
Brand
F
Strategic Positioning

Same Segment Versus Different Segment Approaches
• There could be destructive
competition [in which one wins
and the other loses] when two
organizations offering the same
services with the same standard
are in the same location
• The two organization could avoid
destructive competition by
targeting different segments of
the market rather than fighting
over the same ones
• A basic way to look at strategic
positioning within a market is to
position brands on a scale from
low to high quality and price [Fig
3. 3]
Choosing a Segment to avoid Competition
Standard
School
[$]
Brand
A
Executive
School
[$$]
Brand
B
Luxury
School
[$$$]
Brand
C
Brand
D
Brand
E
Brand
F
Strategic Positioning
Lower end of
the price
scale

Add-on Versus Hands-on Approaches
STRATEGY ADVANTAGES DISADVANTAGES
Cost Leadership
Being the lowest-cost
producer in the
education industry
Can be easy to
implement
difficult to sustain. The
organization becomes
vulnerable to being
undercut by competitors
Differentiation
(diversity)
[Add-on]:
Providing extras to
service desired by
customers
Premium pricing can
mean more money is
available for activities
that maintain the
advantage, such as
Research and
Development
The source of
differentiation can become
stale over time and new
“extras” need to be
developed
Market niche (hands on)
Concentration on one
smaller part of market
and becoming expert
and dominant in it
Can give very high
profit margins and
lead to a market
dominating position
Risky market niche may
change or disappear; if the
organization becomes
successful,
Source: Williams [2009: 33]

Let in or a Let go Approaches
customers
Profit adding–
willing to pay
higher than
average, pays
promptly
Reputation
building- by
attracting
new
customers
Ideas
adding- by
attracting
new insight
Structure
building- by
attracting
new
investment
A good strategy identifies
and let in people with most
valuable distinctiveness
while it lets go those with
undesirable characteristics

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