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Strategic Planning first entry - that everybody should know

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=> Strategic planning first entry

- The easiest introduction to the Strategic Planning

- The basic knowledge of the strategic planning, that everybody should know.

ABDULLAH ALKHADRAWY

Published in: Business

Strategic Planning first entry - that everybody should know

  1. 1. STRATEGIC PLANNING F I R S T E N T R Y
  2. 2. ABDULLAH ALKHADRAWY, PMP, RMP 2
  3. 3. Prepared by  BSc.Civil Engineering (V. Good HONS) 2006  Graduation Project (Project Management) 2006.(Excellent graded)  Achieved PMI-PMP®April2011  Achieved PMI-RMP®April2016  Certified by Primavera Inc. ® : Advanced user for Primavera P6 (2008).  Certified by Primavera Inc. ® : Advanced user for primavera Contract Manager 12 (2009).  Working as: Sr. Planning Engineer Abdullah Ahmed Al-Khadrawy 3
  4. 4. Strategic Planning •Organization's process of defining its strategy, or direction, and making decisions on allocating its resources to pursue this strategy. It may also extend to control mechanisms for guiding the implementation of the strategy . ABDULLAH ALKHADRAWY, PMP, RMP 4
  5. 5. ABDULLAH ALKHADRAWY, PMP, RMP 5
  6. 6. Strategic Planning 1)VISION 2) MISSION 3) OBJECTIVES 4) STRATEGIES 5) IMPLEMENTATION 6) MONITOR & CONTROL ABDULLAH ALKHADRAWY, PMP, RMP 6
  7. 7. 1) VISION ABDULLAH ALKHADRAWY, PMP, RMP
  8. 8. 1)VISION VISION • Each firm should determine certain core values and purpose to be followed and planned based on them. • The firms core values and purpose constitutes its core ideology and remain relatively constant. • They are independent of industry structure and the project/product lifecycle. ABDULLAH ALKHADRAWY, PMP, RMP 8
  9. 9. 2) MISSION ABDULLAH ALKHADRAWY, PMP, RMP
  10. 10. Mission Statement • Captures the essence of why the organization exists – Who we are, what we do. • Explains the basic needs that you fulfill. • Expresses the core values of the organization. • Should be brief and to the point. • Easy to understand. • If possible, try to convey the unique nature of your organization and the role it plays that differentiates it from others. ABDULLAH ALKHADRAWY, PMP, RMP 10
  11. 11. 2) MISSION COREVALUES VISIONARY GOALS CORE PURPOSE • Communicate the firms core ideology (the vision) and its visionary goals. • Generally be represented by three components: ABDULLAH ALKHADRAWY, PMP, RMP 11
  12. 12. 2) MISSION COREVALUES VISIONARY GOALS CORE PURPOSE  Few values (i.e. around five).  Reflect the deeply assessed values of the organization.  Independent the current industry environment, and the management fads.  Will not change even if the organization changed the applied industry.  Fixed against business/ circumstances / or industry changes.  E.g. excellent customer service, pioneering technology, creativity, integrity, & social responsibility. ABDULLAH ALKHADRAWY, PMP, RMP 12
  13. 13. 2) MISSION COREVALUES VISIONARY GOALS CORE PURPOSE  The organization's fundamental reason for being.  Broad, fundamental and enduring;  A good purpose should serve to guide and inspire the organization for years, perhaps a century or more. ABDULLAH ALKHADRAWY, PMP, RMP 13
  14. 14. 2) MISSION COREVALUES VISIONARY GOALS CORE PURPOSE  The lofty objectives that the company's management decides to pursue.  Describes some milestones that the company will reach in the future and may require a decade or more to achieve.  Longer term and more challenging than strategic or tactical goals.  Challenging enough so that people nearly gasp when they learn of them and realize the effort that will be required to reach them. ABDULLAH ALKHADRAWY, PMP, RMP 14
  15. 15. 2) MISSION COREVALUES VISIONARY GOALS CORE PURPOSE Most visionary goals fall into one of the following categories:  Target - quantitative or qualitative goals such as a sales target or Ford's goal to "democratize the automobile.“  Common enemy - centered on overtaking a specific company such as the 1950's goal of Philip-Morris to displace RJR.  Role model - to become like another company in a different industry or market. For example, a cycling accessories company might strive to become "the Nike of the cycling industry."  Internal transformation - especially appropriate for very large corporations. For example, GE set the goal of becoming number one or number two in every market it serves. ABDULLAH ALKHADRAWY, PMP, RMP 15
  16. 16. 2) MISSION STATEMENT EXAMPLES To Explore the Universe and Search for Life and to Inspire the Next Generation of Explorers To Make People Happy ABDULLAH ALKHADRAWY, PMP, RMP 16
  17. 17. 2) MISSION STATEMENT EXAMPLES Today, shared values are more essential than ever before-for enterprises, for individuals and for the globally integrating society of the 21st Century. Dedication to every clients success Innovation that matters – for our company and the world Trust and responsibility in all relationships McDonald’s brand mission is to be our customers’ favourite place and way to eat. Our worldwide operations are aligned around a global strategy called the Plan to Win, which center on an exceptional customer experience – People, Products, Place, Price and Promotion.We are committed to continuously improving our operations and enhancing our customers’ experience. ABDULLAH ALKHADRAWY, PMP, RMP 17
  18. 18. 2) MISSION STATEMENT EXAMPLES At Microsoft, our mission and values are to help people and businesses throughout the world realize their full potential Google’s mission is to organize the world’s information and make it universally accessible and useful. ABDULLAH ALKHADRAWY, PMP, RMP 18
  19. 19. 3 ) O B J E C T I V E S ABDULLAH ALKHADRAWY, PMP, RMP
  20. 20. 3 ) O B J E C T I V E S • Guided by the business vision • Measurable financial and strategic objectives. • Financial objectives involve measures such as: sales targets and earnings growth. • Strategic objectives are related to the firm's business position, and may include measures such as market share and reputation. ABDULLAH ALKHADRAWY, PMP, RMP 20
  21. 21. 4) S T R AT E G I E S ABDULLAH ALKHADRAWY, PMP, RMP
  22. 22. 4 ) S T R AT E G I E S • First step to make environmental scan. • Then make studies and analysis till the limit that is necessary for guiding the business strategy. • Making market analysis using the useful tools e.g. SWOT analysis, or Porter’s five forces model. ABDULLAH ALKHADRAWY, PMP, RMP 22
  23. 23. 4 ) S T R AT E G I E S • Four elements in a 2×2 matrix. • Strengths: characteristics of the business that give it an advantage over others • Weaknesses: characteristics that place the business at a disadvantage relative to others • Opportunities: elements that the business could exploit to its advantage • Threats: elements in the environment that could cause trouble for the business ABDULLAH ALKHADRAWY, PMP, RMP 23
  24. 24. 4 ) S T R AT E G I E S • A graphical representation of Porter's five forces • Framework that attempts to analyse the level of competition within an industry and business strategy development. • Draws upon industrial organization (IO) economics to derive five forces that determine the competitive intensity and therefore attractiveness of an Industry. • Attractiveness in this context refers to the overall industry Industry Rivalry Bargaining power of suppliers Threat of substitute products Bargaining power of customers Threat of new entrants ABDULLAH ALKHADRAWY, PMP, RMP 24
  25. 25. 4 ) S T R AT E G I E S • Given the information from the environmental scan, the company should match its strengths to the opportunities that it has identified, while addressing its weaknesses and external threats. • This is accomplished through strategy formulation. • To attain superior profitability, the company seeks to develop a competitive advantage over its rivals. • A competitive advantage can be based on cost or differentiation. • The strategy main target, to build a plan shall lead the firm to the success (achieve the objectives). ABDULLAH ALKHADRAWY, PMP, RMP 25
  26. 26. 5) IMPLEMENTATION ABDULLAH ALKHADRAWY, PMP, RMP
  27. 27. 5) IMPLEMENTATION • The selected strategy is implemented by means of programs, budgets, and procedures. • Implementation involves organization of the company's resources and motivation of the staff to achieve objectives. • The way in which the strategy is implemented can have a significant impact on whether it will be successful. • In a large company, those who implement the strategy likely will be different people from those who formulated it. • For this reason, care must be taken to communicate the strategy and the reasoning behind it. Otherwise, the implementation might not succeed if the strategy is misunderstood or if lower-level managers resist its implementation because they do not understand why the particular strategy was selected. ABDULLAH ALKHADRAWY, PMP, RMP 27
  28. 28. 6) MONITOR & CONTROL ABDULLAH ALKHADRAWY, PMP, RMP
  29. 29. 6) Monitor & Control • Continuous activity being applied as parallel to the business implementation. • The implementation of the strategy must be monitored and adjustments made as needed. • Evaluation and control consists of the following steps: • Define parameters to be measured • Define target values for those parameters • Perform measurements • Compare measured results to the pre-defined standard • Make necessary changes ABDULLAH ALKHADRAWY, PMP, RMP 29
  30. 30. 6) Monitor & Control • Deming Model: • Plan, Do, Check,Act • Repeat. • Record and apply the lessons learned. • Plan ABDULLAH ALKHADRAWY, PMP, RMP 30
  31. 31. ABDULLAH ALKHADRAWY, PMP, RMP 31

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