Strategic planning in TQM.pptx

GROUP MEMBERS
NAME ROLL NUMBER
ZEESHAN SALEEM MAFE-21-20
MIRAJ MUREED MAFE-21-10
FAIZAN KHALID MAFE-21-43
ZEENAT ZAHID MAFE-21-28
ZEESHAN SHAUKAT MAFE-21-48

CONTENTS
 INTRODUCTION
 STRATEGIC PLANNING
 BUSINESS PLAN
 SWOT ANALYSIS
 SITUATIONAL ANALYSIS
 STRATEGIC PLANNING ELEMENT
 EFFECTIVENESS OF STRATEGIC PLANNING
 FOUR PERSPECTIVES FOR TRANSLATING STRATEGY
 MISSION ND VISSION
 CONCLUSION
 CASE STUDY

INTRODUCTION
The modern concept of corporate strategic planning
grew out of budget exercises carried out
in the 1950s in the United States.
By the mid-1960s and throughout the 1970s,
strategic planning was occurring in most large
corporations.

STRATEGIC PLANNING
Strategic planning is a process in which
an organization's leaders define their vision
for the future and identify their organization's
goals and objectives.
The process includes establishing the sequence
in which those goals should be realized
so that the organization can reach its stated vision.

LEVEL OF STRATEGIC PLANNING
1- CORPORATE STRATEGY:
A corporate-centric plan defines how the company works. It focuses on organizing and aligning the structure
of the business, its policies and processes and its senior leadership to meet desired goals. For example, the
management of a research and development skunkworks might be structured to function dynamically and on
an ad hoc basis. It would look different from the management team in finance or HR.
2- BUSINESS STRATEGY:
A business-centric strategic plan focuses on the competitive aspects of the organization -- creating
competitive advantages and opportunities for growth. These plans adopt a mission evaluating the external
business environment, setting goals, and allocating financial, human and technological resources to meet
those goals. This is the typical strategic plan and the main focus of this article.
3- FUNCTIONAL STATEGY:
Function-centric strategic plans fit within corporate-level strategies and provide a granular examination of
specific departments or segments such as marketing, HR, finance and development. Functional plans focus on
policy and process -- such as security and compliance -- while setting budgets and resource allocations.

WHY IS STRATEGIC PLANNING IMPORTANTS
• Businesses need direction and organizational goals to work toward. Strategic planning offers that type
of guidance. Essentially, a strategic plan is a roadmap to get to business goals. Without such guidance,
there is no way to tell whether a business is on track to reach its goals.
 The Mission
Strategic planning starts with a mission that offers a company a sense of purpose and direction. The
organization's mission statement describes who it is, what it does and where it wants to go. Missions are
typically broad but actionable.
The Goals
Strategic planning involves selecting goals. Most planning uses SMART goals -- specific, measurable,
achievable, realistic and time-bound -- or other objectively measurable goals. Measurable goals are
important because they enable business leaders to determine how well the business is performing
against goals and the overall mission

WHY IS STRATEGIC PLANNING IMPORTANT
 Alignment with short-term goals
Strategic planning relates directly to short-term, tactical business planning and can help business
leaders with everyday decision-making that better aligns with business strategy. For the fictitious
educational business, leaders might choose to make strategic investments in communication and
collaboration technologies, such as virtual classroom software and services but decline opportunities to
establish physical classroom facilities.
 Evaluation and revision
Strategic planning helps business leaders periodically evaluate progress against the plan and make
changes or adjustments in response to changing conditions. For example, a business may seek a global
presence, but legal and regulatory restrictions could emerge that affect its ability to operate in certain
geographic regions. As result, business leaders might have to revise the strategic plan to redefine
objectives or change progress metrics

BUSINESS PLAN
A business plan is an important
document aimed at a company's
external and internal audiences.
For instance, a business plan is
used to attract investment before
a company has established a proven
track record.
It can also help to secure lending
from financial institutions.

STRATEGIC VS BUSINESS PLANNING
STRATEGIC PLANNING
• A strategic plan is for a 3-5
year period and sets out the
tasks, the milestones and the
steps needed to drive your
business forward. Find out how
to develop a strategic plan
BUSINESS PLANNING
• A business plan focuses on a
shorter term, usually no more
than a year, and serves a
specific goal – e.g starting a
business, getting funding, or
directing operations. See how
to prepare a business plan for
growth

SWOT ANALYSIS
STRENGTHS WEAKNESS OPPORTUNITIES THREATS
Strengths are the things that your
company does particularly well, or
resources and assets that it owns
that distinguish it from your
competitors. You need to know
your company's strengths; they're
what make it thrive
EXAMPLES OF STRENGTH
⚫ solid financing
⚫ a positive reputation
⚫ valuable intellectual property
⚫ an innovative mindset
⚫ low production costs
⚫ product variety
⚫ a healthy company culture
Weaknesses are internal attributes
and resources that your company
lacks. You need to know your
weaknesses because they make
your business vulnerable. To
identify the underlying cause of
your company's weaknesses (or its
strengths), Fader suggests.
EXAMPLES OF WEAKNESS
⚫ high levels of debt
⚫ low customer satisfaction
⚫ long delivery times
⚫ outdated equipment and/or
machinery
⚫ gaps in expertise
⚫ poor employee engagement and
retention
⚫ products slow to get to market
Opportunities are a set of
external circumstances that,
with the right decisions, can
grow your company or put you
in a favorable strategic
position.
EXAMPLES OF OPPORTUNITY
⚫ new trade agreement-export
possibilities
⚫ new environmental, social and
corporate governance (ESG)
reporting requirements-can
showcase your track record
⚫ buy-local trend-favours your
locally made products
⚫ work-from-home trend-can
Threats are external forces that
constitute a risk to your business.
Your company should be on the
lookout for external obstacles; it
will have to overcome them if it is
to flourish. To analyze the threats
(and opportunities) facing your
business, Fader suggests one of the
tools be a PESTLE analysis, which
takes in the political, economic,
sociological, technological, legal
and environmental factors that
influence an organization.
EXAMPLES OF THREATS
⚫ new trade agreement-which can
bring increased competition
⚫new ESG reporting requirements-
with possible heavier paperwork
⚫ supply-chain problems

SITUATIONAL ANALYSIS
When developing strategies, analysis of the organization and its environment as it is at the moment and
how it may develop in the future, is important. The analysis has to be executed at an internal level as
well as an external level to identify all opportunities and threats of the external environment, as well as
the strengths and weaknesses of the organizations.
There are several factors to be assessed during the external situation analysis.
1. Markets Analysis.
2. Competitive Analysis.
3. Technology Analysis.
4. Supplier markets.
5. Labor markets.
6. Economic Analysis.
7. The regulatory environment.

1. Markets Analysis
A market analysis studies the attractiveness and the dynamic
of a special market with in a special industry.
2. Competitive Analysis
Competitive analysis in marketing and strategic
management is an assessment of the strengths
and weakness current and potential competitors.

3.Technology Analysis
IT strategic planning assesses what investments and
technologies will achieve business goals while also considering
the impact of funding them. No one should go into the
planning process with the goal of coming out of it with a
perfect annual plan.
4. Supplier market
Supplier market analysis is a technical used to identify
market characteristics for specific goods and services.

5. Labor Market Analysis
Labor market analysis is the process of identifying the appropriate
labor market for various types of positions.
Surveying the market to determine the
salaries that are being paid for like positions.
6. Economic Analysis
Economic analysis assesses financial and other costs
and benefits for operating a program, project or business
venture. It is used to determine if resources are being used
appropriately and effectively.
Costs and benefits of a course
of action or a program are evaluated, and the best course
of action is selected.

7. The Regulatory Environment
A regulated environment is basically any
controlled environment. Rules state which conditions
must be met by a company to produce valid results or
goods of a guaranteed level of quality.

STRATEGIC PLANNING ELEMENTS
Business value.
Market to be Served.
Customer needs.
Customer Positioning.
Product diversification.
Alignment.
Gap analysis.
Budget.
Implementation.

STRATEGIC PLANNING ELEMENT
Business value
Business value is core term throughout Brop
(Business value oriented project management)
teaching and all Project, Product, and people
management. Principle rely on The idea of delivering
business value` in all organizational activities.
Market to be Served
Across The Country and around the world, companies in
The A/E/C the industry are looking for ways to improve
their products and services, and delivery of those
products and Services. Although we're a technology-centric
Company, we're rooted in The belief that The kinds of products
and services that we offer can only be delivered,
locally face to face by
our full time salaried professionals.

Customer needs
The first step is to discover The future needs of
The Customers, who They are?
what do they want?
How Should The organization meet and exceed
Their expectations?
This step further explained in a later chap

 Customer Positioning
Positioning refers to the development of strategy
that helps to influence how a particular market segment
perceives a brand, good, or service in comparison
to the competition. Positioning is all about defining
a space in the mind of the customer.
Product diversification
Product diversification is The Practice of
expanding The original market for a product.
This strategy is used to increase.
The Sale associated with an existing product line,
whichis especially useful for a Business
that has been experiencing
stagnant or declining sales

Alignment
Alignment of the plans with the vision, Mission and the
Concepts of the organization.
Gap analysis
To identify The that gaps exist b/w The present
and future state of the organization.

Budget
Strategic budgeting is the process of creating long-range budget.
That spans a period of a more Then one year.
The intent behind This type of budgeting is to develop a Plan.
That supports a long- range vision for the future position of an entity.
Implementation
Resources must be allocated to collecting the data
designing to the changes and monitoring the progress
being made.

EFFECTIVENESS OF THE STRATEGIC
PLANNING

EFFECTIVENESS OF THE STRATEGIC
PLANNING
Strategic effectiveness is an organization's ability to set the right goals and consistently achieve them.
Organizations with high strategic effectiveness.
Strategic planning is an essential element of organizational management, but will be significant only if
implemented effectively. The biggest failure of strategic planning is not in identifying what is to be done, but
in wrongly executing the same. Michael Porter in his article in the Harvard Business Review supplemented this
view by noting that strategy and effectiveness are both essential for superior performance.
As Larry Cassidy noted,
“When companies fail to deliver their promises, the most
frequent explanation given is that the CEO’s strategy was wrong. But in fact, the strategy and its planning
may not be the real cause. It is in the ineffective execution that the strategies most often fail and things
that are supposed to happen do not happen.”
Edwin Bliss observed that,
“Success does not mean the absence of failures; it means the attainment of ultimate objectives. It means
winning the war, not every battle.”
Shiv Khera, too, observed that “most people fail not because of lack of ability and
intelligence, but because of lack of desire, direction, dedication, and discipline.”

FOUR PERSPECTIVES FOR TRANSLATING STRATEGY
 Financial Perspective.
 Customer Perspective.
 Internal Perspective.
 Innovation and learning Perspective.

Financial Perspective
Strategic financial management is about creating
profits for the business over the run.
It Seeks to maximize return investment for Stakeholders.
Customer Perspective
The Customer perspective monitors how the entity is
providing value to its Customers and determine the
value or level of customer satisfaction with the company
products and Services high level of customers satisfaction
can dramatically impact your company strategic success.

Internal Perspective
Internal perspective means an inspection of your
company cost position its competency and competitive
viability internal perspective often incorporate metrics
that give you actionable about your company
Strengths, weakness, opportunity and threats.
Innovation and learning Perspective
Strategic innovation is an organization process of reinventing
or redesigning its corporate strategy to derive business growth,
generated value and its customers and create a Competitive and
advantages This type of innovation is essential for organizations
to adopt Speed of technology change.

MISSION ND VISSION
The vision statement defines how you want your business to be
seen by the outside world, including the investors, clients, suppliers,
the market, and even competitors. It would answer the question
"What do we want become in the future?" and provide inspiration
for setting future goals. It should be as short as possible, preferably
in one sentence. It describes what the company believes are the
ideal conditions for the community.
The following characteristics of vision statements:
⚫ Understood and shared by members of the community
⚫ Broad enough to include a diverse variety of local perspectives
⚫ Inspiring and uplifting to everyone involved in your effort
⚫ Easy to communicate

CONCLUSION
As cited in the definitions, strategic planning is an
organization's process of defining its strategy or
direction, and making decisions on allocating its
resources to pursue the company's vision and mission.
It is a top-down approach concerned with the:
⚫long-term mission and objectives of an organization,
⚫the resources used in achieving those objectives,
⚫the policies and guidelines that govern the acquisition,
⚫usage and disposition of those resources.
Hence, it forms the very foundation for the success
of an organization. We can finally conclude with
Sir Brian Pitman's observation that,
"there is always a better strategy than the one you have. You just haven't thought of it yet."

THE SOCIAL SECURITY ADMINISTRATION

INTRODUCTION
o This case study has been produced to help others understand how the strategic planning process
at the Social Security Administration (SSA) has evolved over the last 20 years, how our current
process works, and what we will be doing in the near future to refine the process. The case study
is structured to illustrate the iterative nature of SSA's progress in planning, the successes we have
achieved and the pitfalls we have encountered, and how the Agency's strategic planning has led us
to specific decisions at critical points in our history.
o When the Government Performance and Results Act (GPRA) was passed in 1993, our Agency
was gratified that what we had been striving to implement was being mandated throughout
government. The most important lesson we have learned is that understanding the theory of
strategic management, not easy in itself, is a "piece of cake" compared to the doing of the thing.
Creating a strategic plan is a challenge. And the real challenge is creating the environment and
the processes that support a culture of active strategic management.

ABOUT SSA
The mission of SSA is framed this way in our current strategic plan:
’’To administer national Social Security programs as prescribed by legislation, in an equitable,
effective, efficient and caring manner.’’
We administer two major programs: Old Age, Survivors', and Disability Insurance, or what is commonly
called "Social Security"; and Supplemental Security Income (SSI). To do this, SSA issues Social Security
numbers to eligible individuals; maintains lifelong earnings records for individuals working under
employment covered by Social Security; takes claims for benefits; adjudicates appeals on disputed
decisions; and processes millions of actions yearly to keep the beneficiary records current. SSA also
administers aspects of the Medicare, Medicaid, Black Lung and Coal Industry Retiree Health Benefit
programs and serves a key role in ensuring the integrity of other Federally funded needs-based benefit
programs.

THE EVOLUTION OF STRATEGIC PLANS
Strategic planning at SSA has been the overarching tool
that has allowed us over the years to address issues
created by rising workloads, changing customer expectations,
limited resources, and technological innovation.
Strategic planning has helped marshal our forces to accomplish
our mission and attain our vision.
Strategic planning has undergone an evolution at SSA,
and every plan we produce improves upon the prior
one in important ways.

THE PLANNING AND BUDGETING SYSTEM
The PBS actually began before the Framework plan was completed. SSA has always had an annual budget
process to prepare and submit the budget to the President and Congress. With no structured
implementation planning established after the 1988 plan was published, decisions about key Agency
initiatives were largely driven by the process of building the yearly budget and recommending an
appropriate budget to the Commissioner and, ultimately, to the Congress.
So, in FY 1990, an interim process for proposing and selecting key change initiatives (KCIs) was
put in place. Key change proposals were to include the information necessary to make
preliminary decisions about the value of the initiative; such information as the objective(s) to be
achieved; the change to be made; the approach to be used; the costs, benefits, and impacts of the
change; and the schedule for achieving the objective. After the proposals were analyzed by
a high-level group of component planning representatives, the Commissioner used the analysis to
decide what initiatives should be supported in the budget submission.

WHAT DOES PLANNING COST?
We have not specifically calculated the cost of planning at SSA. We rely on research data in the literature that
regularly report how small the cost of proper up-front planning is compared to the rework it saves later in the
development and implementation stages. Still, the costs need to be identified, even if they are offset by benefits,
and some of them constitute the biggest hurdles we have faced in institutionalizing planning at SSA. Just some of
the costs include:
 The cost of staff at the executive level and within components to tend the process. At the most general level,
these costs would include the salaries of the planning staff as well as the cost of time expended by the
component planning reps, tactical plan managers, and budget analysts doing work they would otherwise not be
required to do. At SSA, the size of the "planning staff" in the Commissioner's office has varied from about 4 to
upwards of 20, depending on what the staff were responsible for doing at a particular time.
 The costs of additional executive-staff time devoted to consideration of strategic issues.
 The costs of all staff involved in conceptualizing, writing, reviewing, and publishing plans and plan documents;
and the costs to revise and redo based on new data.
 The cost of identifying, collecting, analyzing and reporting additional performance data,including the cost to
maintain, enhance, or build management-information systems.
 The cost of time that staff devote to implementing the plans, particularly the additional planning, documenting,
and integrating activities required.

CONCLUSION
A major value of the strategic plan has been the cohesive
view it provides to external monitoring authorities about
how the Agency will look into the next decade.
When SSA couples the strategic plan with the business
plan and its associated budget, we make a statement
to the world at large about where we intend to be and
what we intend to be doing with the public's money over time.
As an internal guidance document, the strategic
plan has been an invaluable aid in helping the Agency’s
decision makers choose the right course of action over the years.
Many successful decisions and activities can be attributed
to implementing a strategic planning process that engaged
Agency leaders in clarifying SSA's focus and its operational vision of the future.

Strategic planning in TQM.pptx

Strategic planning in TQM.pptx

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