2. What we will do?
Develop a strategic plan that is directly informed
by our own wisdom and experiences
3. What is a Planning?
Planning (also called forethought) is
the process of thinking about and
organizing the activities required to
achieve a desired goal.
Dr. Subhodip Mitra
4. What is strategy?
• How an organization
meets its needs and
objectives
• Strategy helps to:
– Establish priorities
– Choose actions
– Create a plan
– Allocate resources
– Be proactive
5. What is a strategic plan?
• A document that says
why an organization
exists, what it aims to
do, and how it will do it
• It helps to focus the
organization’s vision
and priorities
6. Strategic planning does not…
• Predict the future
• Replace good leadership and judgment
• Follow a smooth, straightforward process
A strategic plan is a living document — you can
adapt it as needed!
15. SWOT
Internal
Strengths
• What do we do well?
• What internal resources do we
have (knowledge, reputation,
skills, things)?
Weaknesses
• What could we do better?
• What do we lack?
• Do we have limited resources?
External
Opportunities
• What opportunities can we take
advantage of?
• Is there a great need for
services we can provide?
Threats
• Do we have any competitors?
• Do we face any challenges that
make it hard for us to do our
work?
16. Questions
SWOT
How do we use
our strengths to
take advantage
of
opportunities?
How do we
overcome our
weaknesses to
take advantage
of
opportunities?
How do we
overcome the
weaknesses
that make us
vulnerable to
threats?
How do we use
our strengths
to make us
less vulnerable
to threats?
20. Goals vs. Objectives
Goal
• A greater purpose
• A long-term outcome
• May not be easy to measure
[Example: Support NWT
residents to make healthy
lifestyle choices that reduce their
risk of cancer.]
Objective
• A specific, short-term action
that will contribute to
achieving a goal
• Must be measurable
[Example: Create a website
with accurate and current
information about cancer risk
factors.]
21. SMART objectives
Specific – Who? What? Where? How?
Measurable – How many? How can this be measured?
Achievable – Is it possible?
Realistic – Is it possible given our time and resources available?
Timebound – When?
Each objective should be written in precise terms that leave no room for
misinterpretation.
[Example: Within 12 months, we will team with the local health centre to
recruit at least 20 men and women for colorectal cancer screening.]
23. • Produce a document
• Develop an action plan and implement
• Monitor and evaluate
• Share progress
• Review and revise
• Share
Your new strategic plan will help to guide you in the difficult
decisions you have to make as a committee—it will help you
to identify the activities that best fit with your vision, mission,
goals, and objectives.
Moving forward
24. Tools for Strategic Planning
I. TOWS Matrix
II. B.C.G. Matrix
III. Porter’s analysis
IV. SERVO analysis
Dr. Subhodip Mitra
25. I. TOWS Matrix
• The TOWS matrix is a conceptual framework
for a systemic analysis that facilitates
matching of the external threats and
opportunities with the internal weakness and
strengths of the organization.
• Introduced for analyzing the competitive
situation of the company or even of a nation
that leads to the development of four distinct
sets of strategic alternatives.
Dr. Subhodip Mitra
26. What does TOWS stand for?
• T : Threats
• O : Opportunity
• W: Weakness
• S : Strength
Dr. Subhodip Mitra
28. WT Strategy (Min-Min)
• Aims to minimize both weaknesses and threats and
called min-min (minimize-minimize)
• Ex: May require the company to liquidate or it
retrenches
Dr. Subhodip Mitra
29. WO Strategy (Min-Max)
• Minimises the weakness and maximises the
opportunities
• A company with a weakness in a certain area may
develop those areas or acquire needed competencies
to strengthen it
Dr. Subhodip Mitra
30. ST Strategy (Max-Min)
• Organization uses it’s strengths to deal with threats
in the environment
• Use of technological, financial, managerial or
marketing strengths to cope with threat
Dr. Subhodip Mitra
31. SO Strategy (Max-Max)
• Most desirable, capitalizes on company’s strengths to
take advantage of opportunities
• Aim of all enterprises would be to move from other
positions in the matrix to this one
Dr. Subhodip Mitra
32. Disadvantages of TOWS matrix
• Certain combinations like SW or OT are not
considered
• It only gives the possible strategies that can be
implemented, not the best strategy to use
• Does not show interrelationship between the
external and the internal factors
Dr. Subhodip Mitra
33. II. B.C.G. Matrix
• Also called as Boston consultancy group
matrix, growth share matrix or product
portfolio
• Developed in the early 70’s by the Boston
Consultancy Group
• It is the most well known portfolio
management tool
• Based on product life cycle theory
Dr. Subhodip Mitra
34. II. B.C.G. Matrix
• Also called as Boston consultancy group
matrix, growth share matrix or product
portfolio
• Developed in the early 70’s by the Boston
Consultancy Group
• It is the most well known portfolio
management tool
• Based on product life cycle theory
Dr. Subhodip Mitra
35. Relevance of the BCG Matrix
The BCG matrix has two
dimensions:
i. Relative position (market
share)
ii. Business (or market) growth
rate
Dr. Subhodip Mitra
36. What is the basic idea of the BCG
Matrix?
If a product has a bigger
market share or if the
product’s market grows
faster, it is better for the
company
Dr. Subhodip Mitra
39. Contd.....
• SERVO allows for broad, integrative, in-depth
analysis
• Emphasizes the relationships among actions
or decisions.
• Balance between both internal and external
dimensions impacting strategy.
• ‘Fit’ is critical in the application of this model.
Better
• “fit“ leads to better performance
Dr. Subhodip Mitra
40. Disadvantages of BCG matrix
iii.
Dr. Subhodip Mitra
i. Critics contend that it is too simplistic
ii. Growth rate criterion has been considered
insufficient for the evaluation of an
industry’s attractiveness
The market share as a yardstick for
estimating the competitive position may be
inadequate
41. III. Porter’s Analysis
• Introduced by Prof. Michael Porter
• He suggested four “generic” business strategies
that could be followed in order to gain
competitive advantage
• The i)Differentiation leadership and ii)Cost
Leadership strategies seek competitive
advantage in a broad range of market
• iii)Differentiation focus and iv)Cost Focus
strategies are best used in a narrow market or
industry
Dr. Subhodip Mitra
43. i) Cost Leadership
• Lowest-cost producer in the industry
• Production on a large scale which enables the
targets a boarder market
• The firm can compete on the price with every
other industries and earn higher unit profits
• Successful if the firm is the cost leader and is
unchallenged in this position
• Beneficial when customers are price sensitive
Dr. Subhodip Mitra
44. ii) Differentiation Leadership
• The business targets much larger markets and
aims to achieve competitive advantage across
the whole of the industry
• Involves selecting one or more criteria by
buyers and positioning the business uniquely
to meet those criteria
• It is about giving customers clear reasons to
choose their product over others
Dr. Subhodip Mitra
45. Ways to achieve differentiation
leadership?
1. Superior product quality
2. Branding
3. Industry-wide distribution across major
channels
4. Consistent promotional support
Dr. Subhodip Mitra
46. iii) Cost Focus
• Here a firm seeks a lower-cost advantage in
just one or small number of market segments
• These firms often enjoys a high degree of
customer loyalty and this entrenched loyalty
often discourages other firms from competing
directly
• They may charge higher cost to their
customers since close substitute products do
not exist
Dr. Subhodip Mitra
47. iv) Differentiation Focus
• A firm aims to differentiate within just one or
a small number of target market segments
• Market segmentation clearly identifies
customer needs and wants and it meets the
need of the segment
• It provides the highest quality product with
specialist expertise
• It maintains exclusiveness of the product
Dr. Subhodip Mitra
48. IV. SERVO Analysis
• The SERVO
(Strategy, Environment, Resources, Values,
Organization) analysis framework model is a
diagnostic management tool used to build and
test a firm’s strategic decisions and initiatives.
• The interactions and relationships among
these five elements are examined
• Helps in strategy formulation and
implementation
Dr. Subhodip Mitra
49. Illustration of the ‘fit’ concept
The reality of most organizational situations is
that some inconsistencies will exist between
the elements over time
Resources and
Capabilities
Strategy Environment
Dr. Subhodip Mitra
51. Strategy
• Strategy is the set of competitive decisions and actions made
in response to the firm’s environment.
• Should identify the firm’s goals and objectives, the
product/service and market, the business activities, the value
it will offer to customers, and how it will provide superior
offerings.
• Strategy within the SERVO model is composed of four
elements:
–Goals
–Scope
–Competitive basis/premise
–Business Model
Dr. Subhodip Mitra
52. Environment
– External includes things ‘outside’ the legal boundaries of
the firm.
– Internal environment includes stakeholders, forces and
conditions ‘inside’ the firm.
• Environment can also be segmented into components in
proximity to the business.
–Internal
–Task
–Industry
–Macro-environment
Dr. Subhodip Mitra
53. Resources
• Resources:
–Assets and capabilities used to generate
outputs.
• Includes:
– Financial
– Human
– Physical
– Intangible
Dr. Subhodip Mitra
54. Values
–Analyst must capture the human & social sides of the firm’s
leading decision makers.
–Values are reflected in the posture and managerial style of
the decision maker.
–Shared values represent the collective value system that
drives a firm’s organizational culture.
• Go beyond the firm’s mission statement by encompassing
strategic intent, beliefs, mental mindsets, and future
direction.
• Can be the fundamental building block of an organization
Dr. Subhodip Mitra
55. Organization
–Culture : beliefs, history, modus
operandi, stories, traditions, and values.
–Leadership: actions & behaviours of top
decision makers.
– Staffing :
attraction, development, motivation, retention, a
nd training of individuals.
–Structure : allocation of responsibilities &
reporting relationships within a firm.
–Systems: flow of primary and secondary
activities that are important for daily functioning.
Dr. Subhodip Mitra
56. Strength of fit:
1. Tight (T) – Highest level of performance
2. Loose (L) – Lowest level of performance
3. Medium (M) – Some decisions in elements support each other, some do not
Temporal fit:
1. Early (e) - Firm has a new pattern of it between it’s SERVO elements
2. Delayed (d) – Firm is slow competitor
3. Normal (n) – Changes at the same time as a “typical” firm
Dr. Subhodip Mitra
57. Interpretation
The SERVO model is an analytical framework that
addresses what is important to strategic thinking.
•The analyst will need to consider the key factors
associated with the firm, its strategy, and the
environment in terms of the five elements.
•A strategic problem is present when the fit among
the elements is loose, fragile, or broken.
•The analyst’s objective is to generate
recommendations to decision making clients that
will tighten the fit among the loose relating
elements.
Dr. Subhodip Mitra
58. Advantages
– Balances between internal and external factors.
–Model departs from ‘structure follows strategy’
and broadens scope.
– Recognizes that change requires management
of the relationships among ALL five elements of
strategic fit.
– Inclusive and holistic.
Dr. Subhodip Mitra
59. Disadvantages
• Model is abstract, not precise.
• Can assist with both formulation &
implementation tasks, but does not provide
guidance for either.
• Model is difficult to apply.
– Inter-relationships between elements are
hard to discern.
• Model tends to be static.
Dr. Subhodip Mitra
60. Applicability of Strategic Planning?
Strategic planning appears to
be most effective in panning
for growth and for
diversification
Dr. Subhodip Mitra
61. Growth
Extending the area of service by creating or
adding a new facility
Provide a new service in the hospital which
expands the role of the hospital
Create community awareness by publicizing
special services, hoping it will increase the use
of hospital facilities
Dr. Subhodip Mitra
62. Diversification
iii.
Dr. Subhodip Mitra
• May become necessary for:
i. Generating capital from non-operating
sources of revenue for financing replacement,
expansion or enhancement of technology
ii. Surviving competition
• Improving hospital’s long term ability to
survive
63. Areas of diversification
Related Diversification : Increasing services or
enlarging product line. e.g., Outpatient
surgery unit, birth centres, commercial
lab, emergency centre, ambulance
service, hospice day care, sports
medicine, etc,.
Unrelated diversification : Investment of finds
and capital management of land and property.
Dr. Subhodip Mitra
Editor's Notes
This work can be done over a long period. At minimum, 2 days should be allowed for groups to work through these slides/tasks.
Strategy is the path that takes us from where we are now to where we want to be.
Q: What is a strategic plan?
A strategic plan makes sure that all members of the organization are on the same page.
It answers:
Where are we now?
Where do we need to be?
How will we get there?
It is a written, decision-making tool.
Over time, an organization must monitor changes in the environment and assess whether its assumptions remain essentially valid.
Not a substitute for judgment or leadership: strategic planning can only support the intuition, reasoning, and judgment of the people involved.
Rarely a smooth, predictable, linear process: It is a creative process that requires flexibility as you work through its various phases – do not go in a straight line.
Iterative process—you can go back and forth.
There are different ways to develop and structure a plan—you have to do what is right for you. Typically, these are the components.
Be willing to question: Just because something has always been done that way, doesn’t mean it’s the best.
Produce a document: It is a symbol of accomplishment as well as a guide for your activities
Sometimes it helps to understand what a vision is by thinking about a newspaper headline. If you pick up the newspaper in three years, what do you want it to say?
You ask yourself: What does your committee want to achieve? What is your vision?
For example: Canadian Cancer Society Vision
Creating a world where no Canadian fears cancer.
Begin with the end in mind. The vision presents an image in words of what success will look like if the organization achieves its purpose.
Discuss the organization’s vision. These questions are key to developing your vision.
Define the vision.
The mission describes the overarching purpose of the organization—the reason it exists. Your mission statement answers the questions: Who are you, as an organization? Why do you exist? What do you do? Who do you serve?
Example: CCS Mission
The Canadian Cancer Society is a national, community-based organization of volunteers whose mission is the eradication of cancer and the enhancement of the quality of life of people living with cancer.
Do work in groups and all together to develop the organization’s mission.
Take an objective and critical look at the situation your organization currently finds itself in
The SWOT is a useful brainstorming tool for planning.
The SWOT helps you develop strategy by making sure you’ve considered all organizational strengths and weaknesses, as well as external opportunities and threats.
Strengths and weaknesses are internal (membership, leadership, reputation, structures) – you can change them over time with work
Opportunities and threats are external (other services in the community, territorial policies) – you can’t change them
Group work: Brainstorm and fill in the SWOT quadrants.
General idea behind every plan is:
How can we strengthen our strengths?
How can we overcome our weaknesses?
How can we use our opportunities?
How can we evade the threats?
Discuss and document. These answers become our strategies to achieve our objectives.
Before discussing priority setting, be sure that the group agrees on the right timeframe.
What would be manageable? Set priorities for one year from now? Two years? Five?
Look at external factors – do they affect the timeframe? Internal – do you have capacity to have a shorter or longer focus for now?
Agree on timeframe.
What do we want to achieve in our timeframe?
Exercise:
Individuals could write their priorities on sticky notes (one priority per sticky note).
They are then asked to choose their top three priorities.
Introduce the Impact-Effort Grid, which can be a useful tool when setting priorities. If something is difficult has will have little impact, why bother? If something is easy and will have a high impact, we should do it now!
If the Impact-Effort Grid is up on the wall, individuals can take their three top priorities and place them on the grid where they feel is appropriate.
The group can review and see how it looks.
Do we like what we see? Anything missing?
What does this tell us about our priorities?
**Objectives are usually achieved within the timeframe of the strategic plan – not necessarily the goals.
Based on the work we have done so far, what is our primary goal?
What are our objectives?
Work in groups and all together to develop goal and objectives.
