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ToTCOOP+i O3 o4 unit-5_final version_en

Training for Board of directors in the agri-food cooperatives: Unit 5 - Strategic Planning

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ToTCOOP+i O3 o4 unit-5_final version_en

  2. 2. Index 1. Basics of Strategizing. Benefits of strategic planning. 2. How to plan? 3. SWOT – tool for planning 4. Setting up Vision / Mission 5. Setting up targets & draft of Strategic plan 6. Videos, case studies
  4. 4. AGRI-FOOD secor  Definitions & resources: ◦ Agriculture is the cultivation and breeding of animals, plants and fungi for food, fiber, biofuel, medicinal plants and other products used to sustain and enhance human life. ◦ AGRI-FOOD: The business of producing food agriculturally ◦ Agroprocessing industry refers to the subset of manufacturing that processes raw materials and intermediate products derived from the agricultural sector. Agroprocessing industry thus means transforming products originating from agriculture, forestry and fisheries.
  5. 5. Smart Specialisation Platform – cooperation at EU level  S3P - The Smart Specialisation Platform for Agri-Food (S3P Agri-Food) established at EU level aims to accelerate the development of joint investment projects in the EU by encouraging and supporting interregional cooperation in thematic areas ( food)
  6. 6. Definitions  Strategic planning  Strategic plan  Strategic management
  7. 7. Strategic planning Strategic planning is an organizational management activity aiming to set priorities, focus energy and resources, strengthen operations, ensure that employees and other stakeholders are working toward common goals, establish agreement around intended outcomes/results, and assess and adjust the organization's direction in response to a changing environment. It is a disciplined effort that produces 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.
  8. 8. Strategic PLAN  document used to communicate with the organization the organizations goals, the actions needed to achieve those goals and all of the other critical elements developed during the planning exercise
  9. 9. Strategic MANAGEMENT  comprehensive collection of ongoing 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
  10. 10. Let’s make it more complicated…
  11. 11. HOW TO PLAN? Learning Module 2:
  12. 12. Activity2: How to plan? Mission & vision / statements  directions for strategic planning Identifying GOALS – most important part of strategic plan (plan for achieving goals and solve challenges that are identified) Plan development for business units (specific according to the field of work)
  13. 13. How to plan?  In-depth analysis of the business environment (SWOT and analysis of current situation in details OR The Logical Framework)  ACTION PLANS – programs that are necessary to be implemented (channelling etc.)  Regular feedback on progress  Advisory of management of cooperative in order not to get involved in action plans but to support strategic plan by advice & review
  14. 14. Strategic planning MODELS  Every organization is different  Every model should be customized  6 basic models  [Carter McNamara, MBA, PhD, Authenticity Consulting, LLC]
  15. 15. 1st  Conventional Strategic Planning  1. Mission / vision  2. Take a wide look around the outside and a good look inside the organization, and perhaps update the statements as a result.  3. As a result of this examination, select the multi- year strategies and/or goals to achieve the vision.  4. Then develop action plans that specify who is going to do what and by when to achieve each goal.  5. Identify associated plans, for example, staffing, facilities, marketing and financial plans.  6. Organize items 1-3 into a Strategic Plan and items 4-6 into a separate one-year Operational Plan.
  16. 16. 2nd  Issues-Based Strategic Planning  1. Identify 5-7 of the most important current issues facing the organization now.  2. Suggest action plans to address each issue over the next 6-12 months.  3. Include that information in a Strategic Plan.
  17. 17. 3rd  Organic Strategic Planning  1. With as many people as can be gathered, for example, from the community or generation, articulate the long-term vision and perhaps values to work toward the vision.  2. Each person leaves that visioning, having selected at least one realistic action that he or she will take toward the vision before the group meets again, for example, in a month or two.  3. People meet regularly to report the actions that they took and what they learned from them. The vision might be further clarified during these meetings.  4. Occasionally, the vision and the lists of accomplished and intended actions are included in
  18. 18. 4th  Real-Time Strategic Planning  1. Articulate the mission, and perhaps the vision and/or values.  2. Assign planners to research the external environment and, as a result, to suggest a list of opportunities and of threats facing the organization.  3. Present the lists to the Board and other members of the organization for strategic thinking and discussions.  4. Soon after (perhaps during the next month) assign planners to evaluate the internal workings of the organization and, as a result, to suggest a list of strengths and of weaknesses in the organization.  5. Present these lists to the Board and other members of the organization for strategic thinking and discussions, perhaps using a SWOT analysis to analyze all four lists.  6. Repeat steps 2-5 regularly, for example, every six months or year and document the results in a Strategic Plan.
  19. 19. 5th  Alignment Model of Strategic Planning  1. Establish the overall goal for the alignment.  2. Analyze which internal operations are most directly aligned with achieving that goal, and which are not.  3. Establish goals to more effectively align operations to achieving the overall goal. Methods to achieving the goals might include organizational performance management models, for example, Business Process Re-engineering or models of quality management, such as the TQM or ISO models.  4. Include that information in the Strategic Plan.
  20. 20. 6th  Inspirational Model of Strategic Planning  1. Attempt to gather Board members and key employees together for planning.  2. Begin by fantasizing a highly inspirational vision for the organization -- or by giving extended attention to wording in the mission statement, especially to include powerful and poignant wording.  3. Then brainstorm exciting, far-reaching goals to even more effectively serve customers and clients.  4. Then include the vision and goals the Strategic Plan.
  21. 21. Contents of strategic plan for cooperatives  Management message / introduction  Cooperative information & background  Mission & values  Analysis of the current situation (SWOT)  Goals, objectives and strategies  Indicators for assessment
  22. 22. The Four Cornerstones (I)  Vision is the articulation of the hopes and dreams of the founding group and will be refined as the group moves through the stages of development. ◦ Core values ◦ Recognize multiple stakeholders
  23. 23. The Four Cornerstones (II)  Talent includes the people who are invested in the success of the emerging co-op: ◦ Leader of the project (champion) ◦ People involved with passion ◦ Commitment to build a work group ◦ Leadership and accountability to the emerging development process
  24. 24. The Four Cornerstones (III)  Capital is the financial resources necessary to sustain the cooperative in all stages of development: ◦ Monetary & In-kind ◦ Internal & External ◦ Capital – needed to sustain CO-OP
  25. 25. The Four Cornerstones (IV)  Systems are organized, integrated, and interdependent methods that are ongoing with a commitment to continuous improvement. Systems become more complex as the organization proceeds through the development stages: ◦ Legal, governing, planning & assessment ◦ Communication, marketing ◦ Finance, accounting ◦ Operations
  26. 26. Three stages of development (I)  Organizing commences when one or more people start with an idea to organize a retail food cooperative that will solve a problem or meet a need for a larger group. ◦ The organizing stage includes convening a core group, assessing common interest and needs, designating leadership, building a shared vision, committing time and money, coordinating initial market research, and preparing for incorporation
  27. 27. Three stages of development (II)  Feasibility and Planning begins when the organizing stage reflects positive assessments of market potential and internal readiness, including incorporation and a seated board of directors. Feasibility takes into account in-depth assessments of market potential, financial projections, and organizational commitment
  28. 28. Three stages of development (III)  Implementation is set off when there is sufficient capacity in all the cornerstones – vision, talent, capital, and systems – to launch the business operation. Components: ◦ Pre-construction ◦ Construction and renovation ◦ Preparation for opening ◦ Sustaining operations (first year..)
  29. 29. SWOT – TOOL FOR PLANNING Learning Module 3:
  30. 30. Setting objectives and operational goals  Two analytical tools:  “Logical Framework Analysis” (Log- Frame), which is normally used for project development, can help in turning problems into objectives, and  “SWOT” analysis which helps analyse strengths and weaknesses within an organisation and identify opportunities and threats. This can therefore help translate a vision into a feasible operational plan.
  31. 31. External analysis  Taking a wide look around the outside of the organization to identify opportunities and threats
  32. 32. Internal analysis Looking around inside of organization to identify strengths and weaknesses
  33. 33. Setting Strategic Direction  Establishing strategic goals and methods/strategies to achieve them
  34. 34. Logical Framework  The Logical Framework is one of many tools which could help a planning exercise, providing guidance for transforming an idea into a well thought realistic plan.  The Logical Framework Method (Log-Frame) is an analytical tool for objectives-oriented planning and management. It is based on the concept that activities, input use and outputs are not the ultimate measures of success, but rather contributions to the realisation of the main and immediate objectives.
  35. 35. SWOT Analysis: a powerful tool The real work begins after you have created the chart. Share it, as necessary, to get feedback and refine it. Next you want to look at each category for action.  Strengths: How can I leverage them?  Weaknesses: How can I minimize or eliminate then?  Opportunities: How can I capitalize on these while possibly eliminating weaknesses or threats?  Threats: Evaluate opportunities that can address the threats.
  36. 36. SWOT analysis – Group work Strengths What is working well? Weaknessess What needs improvement or change? Opportunities What opportunities are around us? Threats What obstacles do we face?
  37. 37. SETTING UP VISION & MISSION Learning Module 4:
  38. 38. Strategic, tactical & operational planning  Strategic planning is an organization’s process of defining its strategy, or direction, and making decisions on allocating its resources to pursue this strategy
  39. 39. Strategic, tactical & operational planning  Tactical planning is short range planning emphasizing the current operations of various parts of the organization. Short Range is generally defined as a period of time extending about one year or less in the future. Managers use tactical planning to outline what the various parts of the organization must do for the organization to be successful at some point one year or less into the future.
  40. 40. Strategic, tactical & operational planning  Operational planning is the process of linking strategic goals and objectives to tactical goals and objectives. It describes milestones, conditions for success and explains how, or what portion of, a strategic plan will be put into operation during a given operational period. Questions: ◦ Where are we now? ◦ Where do we want to be? ◦ How do we get there? ◦ How do we measure our progress?
  41. 41. Let’s make things easy! Current situation Where do we want to be How? (process)
  42. 42. Mission/ Vision  The cooperative’s vision statement is the starting point for business unit planning. The statement is clear and concise. It provides guidance to business units as they each develop individual long-range plans.
  43. 43. Vision/ Mission  Individual work – setting up MISSION of cooperative Activity4:
  45. 45. Set the TARGETS  Based of SWOT  Set the outputs ◦ helps determine which operational outputs could be achieved and with which activities and inputs. The final outcome of this stage is a general selection of operations  Decide about activities ◦ To generate each of these outputs requires a series of activities. Cost, time and productivity are the criteria leading the choice of alternative activities.
  46. 46. Implementing the plan  Implementing, monitoring, evaluating and deviating from the plan  How do we ensure implementation of our new plan?  Monitoring implementation, evaluating implementation and deviating from plan, if necessary  Changing the plan as necessary during implementation
  47. 47. VIDEOS CASE STUDIES Learning Module 6: