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![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.]](https://image.slidesharecdn.com/strategic-planningchp1-221106141801-24d09d07/85/strategic-planning_chp-1-pptx-20-320.jpg)
![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.]](https://image.slidesharecdn.com/strategic-planningchp1-221106141801-24d09d07/85/strategic-planning_chp-1-pptx-21-320.jpg)
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strategic-planning_chp (1).pptx
- 1.
- 2. What we willdo? Develop a strategic plan that is directly informed by our own wisdom and experiences
- 3. What is aPlanning? 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 astrategic 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 doesnot… • 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!
- 7. Steps: Assess organization Develop vision and mission Assess environment Agreeon priorities Write it all down! Implement Monitor and evaluate
- 8. Keys to effectivestrategic planning • Focus only on the most important issues • Be willing to question • Produce a document
- 9. VISION What does successlook like?
- 11. Questions The Vision Where do we want togo? What do we want to achieve? What do we want to be? What community do we dream of?
- 12. MISSION Why do weexist?
- 13. Our reason forbeing • Communicate to the world what we do and why • Different from goals or objectives • Balance the head and the heart—inspire!
- 14. ASSESSING OUR ENVIRONMENT Wheredo we find ourselves?
- 15. SWOT Internal Strengths • What dowe 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 weuse 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?
- 17. SETTING PRIORITIES How canwe be most effective?
- 18. Impact-Effort Grid Difficult to do How? Easy to do Now Wow! Lowimpact High impact
- 19. GOALS & OBJECTIVES Howdoes it all fit together?
- 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.]
- 22.
- 23. • Produce adocument • 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 StrategicPlanning 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 TOWSstand for? • T : Threats • O : Opportunity • W: Weakness • S : Strength Dr. Subhodip Mitra
- 27.
- 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 TOWSmatrix • 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 theBCG Matrix The BCG matrix has two dimensions: i. Relative position (market share) ii. Business (or market) growth rate Dr. Subhodip Mitra
- 36. What is thebasic 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
- 37. BCG Matrix contents? 1)Question Mark 2)Star 3)Cash Cow 4)Dog Dr. Subhodip Mitra
- 38.
- 39. Contd..... • SERVO allowsfor 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 BCGmatrix 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
- 42.
- 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 achievedifferentiation 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
- 50.
- 51. Strategy • Strategy isthe 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 includesthings ‘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 andcapabilities used to generate outputs. • Includes: – Financial – Human – Physical – Intangible Dr. Subhodip Mitra
- 54. Values –Analyst must capturethe 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 modelis 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 betweeninternal 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 isabstract, 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 StrategicPlanning? Strategic planning appears to be most effective in panning for growth and for diversification Dr. Subhodip Mitra
- 61. Growth Extending the areaof 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 RelatedDiversification : 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
- #3 This work can be done over a long period. At minimum, 2 days should be allowed for groups to work through these slides/tasks.
- #5 Strategy is the path that takes us from where we are now to where we want to be. Q: What is a strategic plan?
- #6 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.
- #7 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.
- #8 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.
- #9 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
- #11 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.
- #12 Discuss the organization’s vision. These questions are key to developing your vision. Define the vision.
- #14 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.
- #15 Take an objective and critical look at the situation your organization currently finds itself in
- #16 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.
- #17 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.
- #18 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.
- #19 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?
- #21 **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.
- #22 Review objectives to ensure they are SMART.
- #24 Remember: a strategic plan is a living document!