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Bryson. chapter 2. the strategy change cycle. an effective strategic planning approach(1)

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Bryson. chapter 2. the strategy change cycle. an effective strategic planning approach(1)

  1. 1. Bryson. Chapter 2 The Strategy Change Cycle: An Effective Planning Approach
  2. 2.  The Strategy Change Cycle becomes a strategic management process- and not just a strategic planning process- to the extent that it is used to link planning and implementation and to manage an organization in a strategic way on an ongoing basis  The overall purpose of strategic management is to develop a continuing commitment to the mission and vision of the organization ( both internally and in the authorizing environment, nurture a culture that identifies and supports the mission and vision, and maintain a clear focus of the organization’s strategic agenda throughout all its decision processes and activities 2
  3. 3. 1. Initiate and agree on a strategic planning process. 2. Identify organizational mandates. 3. Clarify organizational mission and values. 4. Assess the external and internal environment to identify strengths, weaknesses, opportunities, and threats. 5. Identify the issues facing the organization. 6. Formulate strategies to manage the issues. 3
  4. 4. 7. Review and adopt the strategies or strategic plan. 8. Establish an effective organizational vision. 9. Develop an effective implementation process. 10. Reassess the strategies and the strategic planning process. -In small organizations, well-informed startegic planning teams should be able to complete most of the steps in a two-three day retreat, with an additional one day meeting three to four weeks later to review the resulting strategic plan. -Large organizations are likely to need more time and effort for the process. 4
  5. 5.  Purpose of the first step is to negotiate agreement among key internal decision makers or opinion leaders about the overall planning effort and the key steps.  Obviously, some person or group must initiate the process.  One of the first tasks is to identify exactly who the key decision makers are.  Next task is to identify which persons, groups, units , or organizations should be involved in the effort 5
  6. 6.  The initial agreement should cover: -The purpose of the effort -The preferred steps in the process -The form and timing of the reports -The role, functions, and membership of any group or committee empowered to oversee the effort, such as a strategic planning coordinating committee (SPCC) -The role, function, and membership of the strategic planning team -The commitment of the resources necessary for proceeding with the effort -Any important limitations on or boundaries for the effort 6
  7. 7.  The formal and informal mandates placed on the organization consist of the various “musts’ it confronts.  The various requirements, restrictions, expectations, pressures, and constraints it faces.  Must read , for example, relevant legislation, policies, ordinances, charters, articles, and contracts that outline the organization’s formal mandates.  Must also understand the informal mandates the organization faces. 7
  8. 8.  An organizations mission, in tandem with its mandates, provides the organization’s most important justification for its existence.  Clarifying the mission or purpose of the organization does more than justify the organization’s existence.  Clarifying the mission (purpose) can eliminate a great deal of unnecessary conflict in an organization and can channel discussion and activity productively.  Careful stakeholder analysis work should precede development or modification of an existing mission statement , so that attention to purpose can be informed by thinking about purpose for whom.  The mission statement itself must be very short , perhaps no more than a paragraph. 8
  9. 9.  The planning team should explore the environment outside the organization to identify the opportunities and threats the organizations faces.  It should explore the environment inside the organization to identify strengths and weaknesses.  Outside factors are those not under the organization’s control, and inside factors are those that are.  Opportunities and threats are usually ( but not necessarily) about the future, whereas strengths and weaknesses are usually about the present and not the future.  Members of an organization’s governing body are often better than the organization’s employees at identifying and assessing external opportunities and threats.  A formal external assessment process is suggested so that key considerations will not be overlooked.  To identify internal strengths and weaknesses, the organization might monitor resources(inputs), present strategy ( process), and performance (outputs). 9
  10. 10.  Together, the first four steps of the Strategy Change Cycle lead to the fifth, the identification of strategic issues.  Strategic issues are fundamental policy questions or critical challenges affecting the organizations mandates, mission and values, product or service level and mix, clients, users or payers, cost, financing, structure, process, and management.  Strategic issues, virtually by definition, involve conflict of one sort or another.  The conflicts may involve ends (what), means (how or how much), philosophy (why), location (where), timing (when), and the entities advantaged or disadvantaged by different ways of resolving the issue (who). 10
  11. 11.  A statement of strategic issues should contain three elements: 1. The issue should be described succinctly, preferably in a single paragraph. The issue should be framed as a question the organization can do something about and the question should have more than one answer. 2. The team should list the factors that make the issue a fundamental challenge. 3. The planning team should prepare a statement of the consequences of failure to address the isssue. 11
  12. 12.  A strategy can be defined as a pattern of purposes ,policies, programs, actions, decisions, or resource allocations that define what an organization is, what it does, and why it does it  While there are numerous approaches to strategy development, the author favors either of two approaches -A five-part process -A mapping process when there is a need to articulate relationships among multiple options 12
  13. 13.  Once strategies have been formulated, the planning team may need to obtain an official decision to adopt them and proceed with implementation.  In order to secure passage of any strategy or plan, the planning team must continue to pay attention to the goals, concerns and interests of all key internal and external stakeholders. 13
  14. 14.  The organization’s vision for success is a description of what it should look like once it has successfully implemented its strategies and achieved its full potential.  Few organizations have such a description or vision, yet its importance has long been recognized .  Such descriptions may include the organizations mission, its values and philosophy, its basic strategies, its performance criteria, its important decision rules, and the ethical standards that it expects of all employees. 14
  15. 15.  Action plans should detail the following -Implementation roles and responsibilities -Expected results and specific objectives and milestones -Specific action steps and relevant details -Schedules -Resource requirements and sources -a communication process -Review, monitoring and midcourse correction procedures -Accountability procedures 15
  16. 16.  Once the implementation process has been underway for some time, the organization should review the strategies and the strategic planning process, as a prelide to a new round of strategic planning.  The strategic planning process should be examined- its strengths and weaknesses noted, and modifications suggested to implement the next round of strategic planning( this should happen shortly after the first round of strategic planning is completed while the information is still “fresh”) 16
  17. 17.  Sequencing the Steps  Making Use of Vision, Goals , and Issues  Applying the Process Across Organizational Subunits, Levels and Functions  Applying the Process to Functions That Cross Organizational Boundaries  Roles for Planners, Decision Makers, Implementers, and Citizens 17

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