2. Outline
â˘Introduction
â˘Definition of terms
â˘Strategic planning â˘Strategies
â˘Value â˘Goals
â˘Vision ⢠Mission
â˘Levels of planning.
â˘Levels of strategic planning.
â˘Importance of strategic planning
â˘Phases of Strategic planning process.
â˘Nursing leader ship role in Strategic planning
â˘Barriers of strategic planning
â˘Strategic marketing planning process
â˘References
3. Educational Objectives:
By the end of this lecture we will be able to:
â˘Define key terms related to strategic planning
â˘Differentiate between strategic planning levels.
â˘Describe the importance of environmental assessment.
â˘Explain the strategic planning and strategic thinking
process.
â˘Outline the purpose of mission statement, goals, and
objectives.
â˘Describe goal setting and strategic planning.
Discuss the strategic planning and thinking models
4. Introduction
Strategic planning comprises the
procedures of defining objectives and
creating strategies to attain those
objectives. A strategy is a long term plan of
action designed to achieve a particular goal,
as differentiated from tactics or immediate
actions with resourses
5. Definition of terms
Strategic planning:
It is the process by which top management
determines overall organizational purposes
and objectives and how they are to be
achieved
6. Planing versus strategic planing
Planing is define as the process of determining
in advance what should be accomplish and how it
should be realized
Stratigic planing is a type of planing .but unlike
tactical,operational ,or short term planing.stratigic
planing is planing that is long term ,wide
ranging,and critical to organizational success in
terms of the costs of the resource it affects and of
the outcome it envisions
7. Strategies
A pattern of purposes, polices, programs,
actions, decisions, or resource allocations that defines
what an organization is, what it dose, and why it does it
(Bryson 1990).
Values
Statement of what the organization stand for that
are shared by all of the organizations stakeholders
.values are principles or standard that reflect what the
organization cares about.
8. Goals
Broad statements that the organization plans to achieve.
Ex:
Organization's goal to "promote research" the nursing
organization goal may be "to create a nursing culture supportive of
the conduct and application of nursing research"
Vision
Describes the goal to which an organization aspires.
The vision statement is designed to inspire and motivate
employees to achieve a desired state of affairs'( R2140)
Ex
Example of a vision statement for a health care system "Our
vision is to be a regional integrated healthcare delivery system
providing premier healthcare services, professional and
community education, and healthcare research
9. Mission
The mission of an organization is a broad,
general statement of organization's reason for existence
.developing the mission is the necessary first step to
designing a strategic planning.
Ex
"Our mission is to improve the health of people and
communities we serve"
Philosophy
Is a written statement that reflects the organization
values, vision, and mission.
10. Importance of Strategic planning
â˘Describe the importance of environmental
assessment.
â˘Explain the planning process.
â˘Outline the purpose of mission statement, a
philosophy, goals, and objectives.
â˘Describe goal setting and strategic planning.
â˘Necessary for the ongoing change and
restructuring of the healthcare system.
â˘Help to success in the achievement of goals and
objectives.
11. â˘Give meaning to work life, and provides
direction for operational activities of the
organization.
â˘Growth and profitability
â˘Job security and self esteem of employee
â˘Welfare of communities
â˘Financial security of investors
â˘Allows manager in changing environment
to carefully chart their courses
â˘Essential for success in the global market
â˘Direction of activities
12. Strategies of management
Mintzberig (1973) identified 3 strategies of
management:
1- Planning model
Characterized by goal setting with systemic and
detailed plans for achievement; reliance on rationality
and scientific techniques, anticipatory decision making.
2- Adaptive model
Characterized by reactive and remedial decisions
aimed at reducing conflict; ongoing negotiation and
adjustment to the environment incremental decision
making.
13. 3- Entrepreneurial model
Characterized by active search for new
opportunities proactive leaps forward in
face of uncertainty dominated by high
risk, high-gain mentality.
ď MBO epitomized the planning model
ď Strategic planning can be seen as
modification of adaptive model. Planning a
head is still the aim but what gets planned
depend on the situation.
14. Strategic Planning
Strategic planning is based on strategy . It is normally for
three to five years or more.
Tacticalplanning
is intermediate-range (one to three years) that is designed
to develop relatively concrete and specific means to
implement the strategic plan. Middle-level managers often
engage in tactical planning.
Operational Planning:
Operational planning generally assumes the existence of
organization-wide or subunit goals and objectives and
specifies ways to achieve them. Operational planning is
short-range (less than a year) planning that is designed to
develop specific action steps that support the strategic and
tactical plans.
Types of Planning
15. â˘Levels of strategic planning:
1-Corporate level strategic planning:
â˘The process of defining the overall character and
purpose of organization,
â˘The businesses it will enter and leave,
â˘How resources will be distributed among those
business,
â˘Addresses the action the organization will take
and
â˘determines the roles of each business in the
organizationâs grand strategy.
16. 2-Business level strategic
planning:
The planning process concerned primarily with
how to manage the interest and operations of a
particular business. Is the process of
determining policies, procedures for
relatively narrow areas of activity that is
critical to success of organization practically
every large organization is divided into
functional subdivision usually production,
finance, marketing and personnel.
17. The roles of different levels of management in
strategic plan.
Top level role:
Also known as overall or strategic planning, top level
planning is done by the top management, i.e., board of
directors or governingbody.
It encompasses the long-range objectives and policies
or organization and is concerned with corporate
results rather than sectionalobjectives.
Top level planning is entirely long-range and extricably
linked with long-term objectives. It might be called the
âwhatâof planning.Top level manager who make major
decisions that affect present and future of
organization.They givegeneral direction fororganization
18. â˘Also kown as tactical planning, it is done by middle level
managers or departmental heads. It is concerned with
âhowâ ofplanning.
It deals with development of resources to the best
advantage. It is the link between first and thirdlevel.
Second level
role
19. â˘Also known as operational or activity
planning, it is the concern of departmental
managers and supervisors
It is confined to putting into effect the
tactical or departmentalplans.
Third level role
20. criteria for effective strategic planing:
ValueâWill the strategy contribute to
meeting agreed-upongoals?
AppropriatenessâIs the strategy
consistent with the organization's mission,
values, and operatingprinciples?
FeasibilityâIs the strategy practical, given
personnel and financial resources and
capacity?
AcceptabilityâIs the strategy acceptable to
the Board, key staff, and other stakeholders?
21. Cost-benefit âIs the strategy likely to
lead to sufficient benefits to justify the
costs in time and otherresources?
TimingâCan and should the
organization implement this strategy at
this time, given external factors and
competingdemands
22. Strategic Planning Process:
Assessment of the external & inernal
phase1.environment
External environmental assessment
Looks at opportunities andthreats
The economic, demographic, technological,
social, educational, and political factors are
assessed in term of their impact on
opportunities and threats within the
environmen
23. Labor market projections provide
valuable information for the
environmental scan.
Health care managers can assess the
effect of conditioners on their
environment and thus plan and monitor
their own operations and develop other
creative and visionaryprograms.
24. Internal environment assessment:
Checks for strength andweakness.
It includes a review of the effectiveness
of the structure, size, programs,
financial resources, human resources
information system, and research and
development capabilities of the
organization.
25. Phase2:,tnemetats noissim ,noisiv fo weiveR
sevitcejbo dna ,slaog ,yhposolihp:
-Vision: is a mental image or the power of imagination
to see something that is not actually visible. The vision
sets out the reasons for organizationâs existence and the
âidealâstate that the organization aims to achieve
-Values: is the worth, usefulness, or importance of
something. Plans and actions should be consistent with
these values. Example of such values might be service,
safety, compassion, commitment, inclusiveness, honesty
26. -Mission statement: reflects the purpose
and direction of the health care agency or a
department within it. Also it influences
philosophy and, goals and objectives. The
relationships between the mission,
philosophy, goals, and objectives should be
examined periodically for consistency. the
mission identifies major goals and
performance objectives.
27. -A philosophy statement: it articulates a
vision and provides a statement of beliefs
and values that direct oneâs practice.
provides a direction for the agency andor
department within it. The content usually
specifies beliefs regarding the rights of
individuals' beliefs regarding health and
nursing, expectations of practitioners, and
commitment of the organization to
professionalism, education, evaluation, and
research.
28. Goals and objectives: state actions for
achieving the mission and philosophy. And may
address services rendered. Economics, use of
resources-people, funds, and facilities-
innovations and socialresponsibilities.
Goal setting: is the process of developing,
negotiating, and formalizing the targets or
objective of an organization. Goals are broader
statements than objectives.
29. Objectives:objectives canbe stated in terms of desired
out comes for students.
They can be developed by looking at the institutionâs
various constituencies
-Characteristic of well-written objectives includes:1-
derutcurts ylreporP:
Begins with the word to follow by an actionverb.
Specifies single results to beachieved.
Specifies a target date for itsattainment.
Measurable.
Easily understood by those required to attainit.
30. Conforms to SMART criteria: specific, measurable,
achievable, result- oriented, and timebound.
Policies:
Policies and procedure are means for accomplishing goals
andobjectives.
Policies explain how goals will be achieved and serve as
guides that define the general course and scope of
activities permissible for goal accomplishment.
They serve as a basis for future decisions and actions, help
coordinate plans, control performance, and increase
consistency of action by increasing the probability that
different managers will make similar decisions when
inadequately facing similarsituation.
31. Regulations:
Guidelines for action that apply only to a
departmet.It is developed by middle and first
level position in organization
Procedures:
-Supply a more specific guide to action
than policy does. They help achieve a high
degree of regularity by enumerating the
chronological sequence of steps to
implementpolicy.
32. Phase3:seigetarts fo noitacifitnedI:
This stage involves identifying major issues, and
developing strategies to meet
thegoals.StrategyâIsabroadplanofactionbywhicha
norganizationintends to reach its objectivesâ.
All departmental managers are involved in this
process and are responsible for preparing a
detailed plan of action, which include:
development of short-and long term objectives,
formulation of an annual department objectives,
resource allocation, and preparation of thebudget.
33. Deciding on Key Performance Indicators.
Choosing broad strategies.
Identifying detailed objectives and actions.
Unit planning and plans.
Developing a financial plan.
34. Phase4:noitatnemelpmI:
-In this stage, the specific plans for action are
implemented in order of priority. This entails
open communication with staff in regard to the
priorities for the next year and subsequent
periods, formulation of revised policies and
procedures in regard to the changes, and
formulation of area and individual objectives
related to the plan.
Writing the plan.
Communication of the plan.
35. Phase5:noitaulavE:
At regular intervals the strategic plan is reviewed at all
levels to determine whether the goals, objectives, and
activities are ontarget.
It is important to consider that objectives may change as
a result of legislation, budget cutbacks, and change in
structure or other environmentalfactors.
Evaluation and control consists of the following
steps:
Define parameters to bemeasured
Define target values for thoseparameters
Perform measurements
Compare measured results to the pre-definedstandard
Make necessarychange
36. Tools of Strategic Planning:
PEST analysisrof sdnats sisylana TSEP a ,âPolitical,
Economic, Social, and Technological analysisâ.
Politicalâlocal, national and international
politicaldevelopments.
Economicâeconomic issues and financialresources.
Socialâsocial and cultural trends that may impact
organizationsoperation.
Technologicalâchanging technology can impact on
competitive advantage rapidly.
Scenario planningeht ni desu yllanigiro saw hcihw ,
ot snoitaroproc egral yb desu yltnecer dna yratilim
soiranecs erutuf ezylana
37. Porter five forces Analysis, which addresses industry
attractiveness and rivalry through the bargaining power of
buyers and suppliers and the threat of substitute products
and new market entrants.
SWOT analysis , a SWOT analysis is a strategic planning
method used to evaluate the Strengths, Weaknesses,
Opportunities, and Threats involved in a business plan.
The framework attempts to determine organizational
strengths(i.e, plus or strong aspects) ,weakness (i.e.,
vulnerable aspects) , opportunities(i.e., prospects or
better chances) , and threats(i.e, challenges ,
uncertainties
,risks.)
38.
39. Strengths:
Core competencies in coreareas.
Adequate financial resources.
Well-thought markets.
Access to economy ofscale.
Insulation from competitivepressure.
Better technology and productinnovation.
Rich experience.
Marketing competencies andskills.
Healthy relation withstakeholders.
Employee moral andsatisfaction.
Efficient productionoperations.
41. External opportunities:
Existence of additional customer groups or strong
customerbase.
Attractive new marketsegments.
Diversification into relatedproducts.
Verticalintegration.
Faster market growth.
Positive attitude of government and tradeunion.
Attractive overseas market.
42. External threats:
âş Entry of low- cost foreigncompetitors.
âş Rising sales of substituteproducts.
âş Adverse demographicchanges.
âş Unpredictable government approach
andattitudes.
âş Unfavourable trend of internationaltrade.
âş Slower marketgrowth.
âş Changing market needs andtastes.
43. Benefits of Strategic Planning
Helps build your competitive advantage
âş Communicates your strategy to staff
âş Prioritizes your financial needs
âş Provides focus and direction to move from
plan toaction
âş Helps define the purpose of your organization
âş Helps plan human resources and operational
needs
âş Is critical if youâre seeking funding
âş Assesses organization opportunities
âş Provides structure to ideas
44. ďTips for effective strategic planning
effective:
ďConsider objectives as the base for planning work
and assess its contribution.
ďEnsure suitable steps in the planningprocess.
ďObserve qualities of a good plan (as discussed
earlier) in whole planning process.
ďCreate and maintain a suitable climate for
planning. 5eht fo tnemevlovni evitca na erusnE.
tnemeganamlevel pot.
ďPermit an active participation of all those
concerned and solicit their commitment.
45. ďEstablish an effective two-waycommunication.
ďMaintain a proper integration between long-term
and short-term plans..Adopt an open system
approach and permit reasonableflexibility.
ďSet planning premisesaccurately.
ďEnsure an adequate provision of facilities
andresources
ďMeasure and evaluate efficiency strictly against
timelimit.
46. Make a list of who might be involved in the
process (governing body, staff, partners,
beneficiaries, other agencies, government,etc.
Consider what particular skills and experience
each person can bring to theprocess.
Use the expertise of members of the governing
body to full advantage: their capacity for
strategic thinking is one reason for
selectingthem.
Allocate precise tasks to individuals in a work
plan andtimetable.