4 steps of the strategic planning


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A brief presentation on how to develop a strategic marketing plan in 4 steps: identifying, scanning, conceiving and realising

4 steps of the strategic planning

  1. 1. 4 Steps Of The Strategic Planning“You may not be interested in strategy, but strategy is interested in you” Leon TrotskyRita Batalhauk.linkedin/ritabatalha@ritabatalha
  2. 2. Why Do We Need Strategy? • Without a strategy ... time and resources are easily wasted … there‟s no formal structure about mission, objectives and tactics … critical activities are ignore … internal employees perform tasks that don‟t bring any value“Without a strategy the organization is like aship without a rudder, going around incircles.” Ross and Kami (1998)
  3. 3. What Is Strategy?… a consciously developed plan… deliberately choosing a different set of activate to deliver a uniquevalue mix... performing different activities from competitors or performing similaractivities in different ways… the determination of long-term positioning (min. 3years) Porter (1996)
  4. 4. 5 Definitions• Mintzberg„s (1987) five definitions of strategyPlan: strategy needs to be developed in advance and with purposePloy: strategy means of outsmarting the competitionPattern: we learn to appreciate what was successful in the past can leadto success in the futurePositioning: how the organisation relates to its environment, and what itcan do to make its products unique in the marketplacePerspective: a mindset of the organisation have on strategic decision
  5. 5. 4 Steps Of The Strategic Planning Mission 1st year detail plan 4. REALISING Corporate 1. IDENTIFYING(detail tactical plan that & Budget (what the organisationsummarizes the strategic Objectives does and what is trying to activities ) achieve) Marketing Objectives Internal environment 2. SCANNING & Strategies (current environment in External environment3. CONCEIVING terms of services, stakeholders, perf (desired future and Expected Results Performance ormance, challenges etc..) preferred route to achieve objectives – environmentcontingency plan and Contingency plans assumptions for unexpected events)
  6. 6. 4 Steps Of The Strategic PlanningIDENTIFYINGMission: the organisation‟s long-term intentions, describing its purpose anddirectionCorporate objectives: the overall organisation‟s goal(s)Save the Children> Mission: To inspire breakthroughs in the way the world treats children and toachieve immediate and lasting change in their lives> Corporate objectives: Raise US$2 billion to increase children‟s and mothersaccess to healthcare by 2005, through large scale vaccination, nutrition andhealth education programmes
  7. 7. 4 Steps Of The Strategic PlanningSCANNINGExternal: elements that don‟t have immediate impact on the performanceand cannot be controlled by the organisation. E.g., LegislationInternal: key factors and capabilities of an organisation‟s resources –departments, products/services, finance etc. E.g., MarketingPerformance: stakeholders and elements that either have low or highinfluence on an organisation‟s performance. E.g., Supplier PowerTechniques:> External: PESTLE, Opportunities and Threats> Internal: Portfolio analysis (e.g., BCG), financial analysis, marketing audit> Performance: sector analysis (e.g., 5 forces), critical success factors
  8. 8. 4 Steps Of The Strategic PlanningSCANNING Example PESTLE – Save the Children What changes in What economic What social and government policy factors effect Save the cultural aspects affecthave an impact on the Children„s ability to the donors‟ needs?way Save the Children generate income? operates?Politcal Factors Economical Factors Social Factors What changes in the What significant legal What environmental technological changes may affect factors can affect the environment that Save the Children‟s way Save the Children affects donation‟s operations? operates? levels? Legal Factors Environmental FactorsTechnological Factors
  9. 9. 4 Steps Of The Strategic PlanningSCANNING Example PESTLE – Save the Children> Declining statutory > The impact of > Culturalfunding recession diversification> Declining confidence > Low interest rates > Aging populationin the political system > Volatile stock> Increase privatisation marketsand local partnerships Social FactorsPolitcal Factors Economical Factors> New funding > The growth of > Climate change andplatforms and methods privacy and data sustainability> Alteration of Economical Factors protection regulationstechnoly and > Growth of politicalcommunications campaigning amongsphere charities Legal Factors Environmental FactorsTechnological Factors
  10. 10. 4 Steps Of The Strategic PlanningCONCEIVING Objectives Use the SMART approach – Specific, measurable, achievable, realistic and timed. Strategies Say how the objectives will be achieved using CSFs and 4Ps Tactics Say what actions will realise the strategies and deliver the objectives – what, who, when and how much.Save the Children‟s Humanitarian objective> Protect the lives of 29 million children through preparedness rapidresponse and capacity building in vulnerable communities by 2015.
  11. 11. 4 Steps Of The Strategic PlanningCONCEIVINGUse Critical success factors and 4Ps to delineate your strategies. Ideallyyou should have one CSFs model for each donor segment.Example CSFs – Save the Children Description of Tactics to achieve Responsabilit Cost KPI‟s Strategy the Strategy yRaise £Y income Run cold mobile Legacy and £Y £ incomethrough legacy campaigns to marketing % donationmarketing prospect newactivities potential legators
  12. 12. 4 Steps Of The Strategic PlanningCONCEIVINGUse Critical success factors and 4Ps to delineate your strategies. Ideallyyou should have one 4Ps strategy for each donor segment.Example 4Ps – Save the Children P Current Future Product Donations, Gifts, Grants etc. Donations, Gifts, Grants etc + social investment Price Cash donation ask price is Cash donation ask price is 25 15Promotion F2F, direct mail, print, social F2F, direct mail, print, social media and mobile etc. media and mobile etc. + online giving Place ABL and ATL ABL and ATL
  13. 13. 4 Steps Of The Strategic PlanningCONCEIVINGUse the directional policy matrix to estimate expected results for each ofyour customer‟s segment. Draft assumptions and contingency plans tosupport your decision. Relative Business Strenght HIGH LOW HIGH 7 Segment 1 New segment 1 6 - 4% Segment 4 Attactiveness Market 5 New segment 2 + 5% Segment 3 4 + 2% Segment 2 LOW 3 +2 1 0 -1 -2
  14. 14. 4 Steps Of The Strategic PlanningCONCEIVINGIdentify factors that will be critical to the success or failure of themarketing strategy, but which are outside the company‟s direct control.Look at Porter 5-forces analysis and PESTLE analysis to check importantassumption and contingency plans.
  15. 15. 4 Steps Of The Strategic PlanningREALISINGUse Gantt chart to illustrate the summary of your tactical plan.
  16. 16. Considerations> The essence of strategy is choosing to perform activities differently thanrivals do> Strategic positions can be based on customer‟s needs, market‟opportunities or a variety of product and services > Before delineate the 4 steps of strategic planning, organisations shouldhave a clear understanding of customer‟s insight – segments, needsaspirations etc.> The process of strategy development should be consistent and supportyour organisation‟s values and mission
  17. 17. Sources(1) What is strategy - http://goo.gl/PaG4Q(2) Strategic Planning with Critical Success Factors and Future Scenarios: An Integrated Strategic Planning Framework – http://goo.gl/l697l(3) Look - nfpSynergy Have Done My Pest Analysis - http://goo.gl/q9qQA(4) Mintzbergs 5 Ps of Strategy - http://goo.gl/l41Fn(5) Save the Children International annual repport - http://goo.gl/fm4T0(6) The First Billion: A forecast of social investment demand - http://goo.gl/NRdMv
  18. 18. Presentation by Rita Batalha@ritabatalhauk.linkedin/ritabatalha