ToTCOOP+i O3 o4 unit-5_final version_en
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Training for Board of directors in the agri-food cooperatives: Unit 5 - Strategic Planning
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ToTCOOP+i O3 o4 unit-5_final version_en
- 1. ToTCOOP+i PROJECT Unit 5 : Strategic Planning STRATEGIC PARTNERSHIP FOR INNOVATING THE TRAINING OF TRAINERS OF THE EUROPEAN AGRI-FOOD COOPERATIVES
- 2. Index 1. Basics of Strategizing. Benefits of strategic planning. 2. How to plan? 3. SWOT – tool for planning 4. Setting up Vision / Mission 5. Setting up targets & draft of Strategic plan 6. Videos, case studies
- 3. BASICS OF STRATEGIZING BENEFITS OF STRATEGIC PLANNING Learning Module 1:
- 4. AGRI-FOOD secor Definitions & resources: ◦ Agriculture is the cultivation and breeding of animals, plants and fungi for food, fiber, biofuel, medicinal plants and other products used to sustain and enhance human life. ◦ AGRI-FOOD: The business of producing food agriculturally ◦ Agroprocessing industry refers to the subset of manufacturing that processes raw materials and intermediate products derived from the agricultural sector. Agroprocessing industry thus means transforming products originating from agriculture, forestry and fisheries.
- 5. Smart Specialisation Platform – cooperation at EU level S3P - The Smart Specialisation Platform for Agri-Food (S3P Agri-Food) established at EU level aims to accelerate the development of joint investment projects in the EU by encouraging and supporting interregional cooperation in thematic areas (http://s3platform.jrc.ec.europa.eu/agri- food)
- 6. Definitions Strategic planning Strategic plan Strategic management https://www.balancedscorecard.org/Resources/Strategic-Planning-Basics
- 7. Strategic planning Strategic planning is an organizational management activity aiming to set priorities, focus energy and resources, strengthen operations, ensure that employees and other stakeholders are working toward common goals, establish agreement around intended outcomes/results, and assess and adjust the organization's direction in response to a changing environment. It is a disciplined effort that produces fundamental decisions and actions that shape and guide what an organization is, who it serves, what it does, and why it does it, with a focus on the future.
- 8. Strategic PLAN document used to communicate with the organization the organizations goals, the actions needed to achieve those goals and all of the other critical elements developed during the planning exercise
- 9. Strategic MANAGEMENT comprehensive collection of ongoing activities and processes that organizations use to systematically coordinate and align resources and actions with mission, vision and strategy throughout an organization. Strategic management activities transform the static plan into a system that provides strategic performance feedback to decision making and enables the plan to evolve and grow as requirements and other circumstances change
- 10. Let’s make it more complicated…
- 11. HOW TO PLAN? Learning Module 2:
- 12. Activity2: How to plan? Mission & vision / statements directions for strategic planning Identifying GOALS – most important part of strategic plan (plan for achieving goals and solve challenges that are identified) Plan development for business units (specific according to the field of work)
- 13. How to plan? In-depth analysis of the business environment (SWOT and analysis of current situation in details OR The Logical Framework) ACTION PLANS – programs that are necessary to be implemented (channelling etc.) Regular feedback on progress Advisory of management of cooperative in order not to get involved in action plans but to support strategic plan by advice & review
- 14. Strategic planning MODELS Every organization is different Every model should be customized 6 basic models [Carter McNamara, MBA, PhD, Authenticity Consulting, LLC]
- 15. 1st Conventional Strategic Planning 1. Mission / vision 2. Take a wide look around the outside and a good look inside the organization, and perhaps update the statements as a result. 3. As a result of this examination, select the multi- year strategies and/or goals to achieve the vision. 4. Then develop action plans that specify who is going to do what and by when to achieve each goal. 5. Identify associated plans, for example, staffing, facilities, marketing and financial plans. 6. Organize items 1-3 into a Strategic Plan and items 4-6 into a separate one-year Operational Plan.
- 16. 2nd Issues-Based Strategic Planning 1. Identify 5-7 of the most important current issues facing the organization now. 2. Suggest action plans to address each issue over the next 6-12 months. 3. Include that information in a Strategic Plan.
- 17. 3rd Organic Strategic Planning 1. With as many people as can be gathered, for example, from the community or generation, articulate the long-term vision and perhaps values to work toward the vision. 2. Each person leaves that visioning, having selected at least one realistic action that he or she will take toward the vision before the group meets again, for example, in a month or two. 3. People meet regularly to report the actions that they took and what they learned from them. The vision might be further clarified during these meetings. 4. Occasionally, the vision and the lists of accomplished and intended actions are included in
- 18. 4th Real-Time Strategic Planning 1. Articulate the mission, and perhaps the vision and/or values. 2. Assign planners to research the external environment and, as a result, to suggest a list of opportunities and of threats facing the organization. 3. Present the lists to the Board and other members of the organization for strategic thinking and discussions. 4. Soon after (perhaps during the next month) assign planners to evaluate the internal workings of the organization and, as a result, to suggest a list of strengths and of weaknesses in the organization. 5. Present these lists to the Board and other members of the organization for strategic thinking and discussions, perhaps using a SWOT analysis to analyze all four lists. 6. Repeat steps 2-5 regularly, for example, every six months or year and document the results in a Strategic Plan.
- 19. 5th Alignment Model of Strategic Planning 1. Establish the overall goal for the alignment. 2. Analyze which internal operations are most directly aligned with achieving that goal, and which are not. 3. Establish goals to more effectively align operations to achieving the overall goal. Methods to achieving the goals might include organizational performance management models, for example, Business Process Re-engineering or models of quality management, such as the TQM or ISO models. 4. Include that information in the Strategic Plan.
- 20. 6th Inspirational Model of Strategic Planning 1. Attempt to gather Board members and key employees together for planning. 2. Begin by fantasizing a highly inspirational vision for the organization -- or by giving extended attention to wording in the mission statement, especially to include powerful and poignant wording. 3. Then brainstorm exciting, far-reaching goals to even more effectively serve customers and clients. 4. Then include the vision and goals the Strategic Plan.
- 21. Contents of strategic plan for cooperatives Management message / introduction Cooperative information & background Mission & values Analysis of the current situation (SWOT) Goals, objectives and strategies Indicators for assessment
- 22. The Four Cornerstones (I) Vision is the articulation of the hopes and dreams of the founding group and will be refined as the group moves through the stages of development. ◦ Core values ◦ Recognize multiple stakeholders
- 23. The Four Cornerstones (II) Talent includes the people who are invested in the success of the emerging co-op: ◦ Leader of the project (champion) ◦ People involved with passion ◦ Commitment to build a work group ◦ Leadership and accountability to the emerging development process
- 24. The Four Cornerstones (III) Capital is the financial resources necessary to sustain the cooperative in all stages of development: ◦ Monetary & In-kind ◦ Internal & External ◦ Capital – needed to sustain CO-OP
- 25. The Four Cornerstones (IV) Systems are organized, integrated, and interdependent methods that are ongoing with a commitment to continuous improvement. Systems become more complex as the organization proceeds through the development stages: ◦ Legal, governing, planning & assessment ◦ Communication, marketing ◦ Finance, accounting ◦ Operations
- 26. Three stages of development (I) Organizing commences when one or more people start with an idea to organize a retail food cooperative that will solve a problem or meet a need for a larger group. ◦ The organizing stage includes convening a core group, assessing common interest and needs, designating leadership, building a shared vision, committing time and money, coordinating initial market research, and preparing for incorporation
- 27. Three stages of development (II) Feasibility and Planning begins when the organizing stage reflects positive assessments of market potential and internal readiness, including incorporation and a seated board of directors. Feasibility takes into account in-depth assessments of market potential, financial projections, and organizational commitment
- 28. Three stages of development (III) Implementation is set off when there is sufficient capacity in all the cornerstones – vision, talent, capital, and systems – to launch the business operation. Components: ◦ Pre-construction ◦ Construction and renovation ◦ Preparation for opening ◦ Sustaining operations (first year..)
- 29. SWOT – TOOL FOR PLANNING Learning Module 3:
- 31. Setting objectives and operational goals Two analytical tools: “Logical Framework Analysis” (Log- Frame), which is normally used for project development, can help in turning problems into objectives, and “SWOT” analysis which helps analyse strengths and weaknesses within an organisation and identify opportunities and threats. This can therefore help translate a vision into a feasible operational plan.
- 32. External analysis Taking a wide look around the outside of the organization to identify opportunities and threats
- 33. Internal analysis Looking around inside of organization to identify strengths and weaknesses
- 34. Setting Strategic Direction Establishing strategic goals and methods/strategies to achieve them
- 35. Logical Framework The Logical Framework is one of many tools which could help a planning exercise, providing guidance for transforming an idea into a well thought realistic plan. The Logical Framework Method (Log-Frame) is an analytical tool for objectives-oriented planning and management. It is based on the concept that activities, input use and outputs are not the ultimate measures of success, but rather contributions to the realisation of the main and immediate objectives.
- 36. SWOT Analysis: a powerful tool The real work begins after you have created the chart. Share it, as necessary, to get feedback and refine it. Next you want to look at each category for action. Strengths: How can I leverage them? Weaknesses: How can I minimize or eliminate then? Opportunities: How can I capitalize on these while possibly eliminating weaknesses or threats? Threats: Evaluate opportunities that can address the threats.
- 37. SWOT analysis – Group work Strengths What is working well? Weaknessess What needs improvement or change? Opportunities What opportunities are around us? Threats What obstacles do we face?
- 38. SETTING UP VISION & MISSION Learning Module 4:
- 39. Strategic, tactical & operational planning Strategic planning is an organization’s process of defining its strategy, or direction, and making decisions on allocating its resources to pursue this strategy
- 40. Strategic, tactical & operational planning Tactical planning is short range planning emphasizing the current operations of various parts of the organization. Short Range is generally defined as a period of time extending about one year or less in the future. Managers use tactical planning to outline what the various parts of the organization must do for the organization to be successful at some point one year or less into the future.
- 41. Strategic, tactical & operational planning Operational planning is the process of linking strategic goals and objectives to tactical goals and objectives. It describes milestones, conditions for success and explains how, or what portion of, a strategic plan will be put into operation during a given operational period. Questions: ◦ Where are we now? ◦ Where do we want to be? ◦ How do we get there? ◦ How do we measure our progress?
- 42. Let’s make things easy! Current situation Where do we want to be How? (process)
- 43. Mission/ Vision The cooperative’s vision statement is the starting point for business unit planning. The statement is clear and concise. It provides guidance to business units as they each develop individual long-range plans.
- 44. Vision/ Mission Individual work – setting up MISSION of cooperative Activity4:
- 45. SETTING UP TARGETS & DRAFT OF STRATEGIC PLAN Learning Module 5:
- 46. Set the TARGETS Based of SWOT Set the outputs ◦ helps determine which operational outputs could be achieved and with which activities and inputs. The final outcome of this stage is a general selection of operations Decide about activities ◦ To generate each of these outputs requires a series of activities. Cost, time and productivity are the criteria leading the choice of alternative activities.
- 47. Implementing the plan Implementing, monitoring, evaluating and deviating from the plan How do we ensure implementation of our new plan? Monitoring implementation, evaluating implementation and deviating from plan, if necessary Changing the plan as necessary during implementation
Editor's Notes
- Starts with group discussions and main points of importance of strategic planning. Groups of max 6 participants, brainstorming reasons for strategic planning, evaluation of ideas. Make notes of groups idea of strategic planning. In the end you can compare it with theory.
- http://s3platform.jrc.ec.europa.eu/agri-food
- Strategic management is the management of an organization’s resources to achieve its goals and objectives. Strategic management involves setting objectives, analyzing the competitive environment, analyzing the internal organization, evaluating strategies and ensuring that management rolls out the strategies across the organization. At its heart, strategic management involves identifying how the organization stacks up compared to its competitors and recognizing opportunities and threats facing an organization, whether they come from within the organization or from competitors.
- Strategic plannning process in simple way: Where are we now? – compelling need; review mission; what’s happening in the Environment Where do we want to be? – review vision; review programs; review organizational capacity; review capital and revenue needs How will we get there? Discover -> Dream -> Design -> Document -> Deliver
- Strategic planning is an organization's process of defining its strategy, or direction, and making decisions on allocating its resources to pursue this strategy. It may also extend to control mechanisms for guiding the implementation of the strategy. Strategic planning became prominent in corporations during the 1960s and remains an important aspect of strategic management. It is executed by strategic planners or strategists, who involve many parties and research sources in their analysis of the organization and its relationship to the environment in which it competes. In this section the process of strategic planning is reviewed.
- Strategy includes processes of formulation and implementation; strategic planning helps coordinate both. However, strategic planning is analytical in nature (i.e., it involves "finding the dots"); strategy formation itself involves synthesis (i.e., "connecting the dots") via strategic thinking. As such, strategic planning occurs around the strategy formation activity.[
- Is one strategic planning model better than the others? Some of these have been around longer than the others, or have been used in various case studies in different ways. Sometimes managers are more comfortable with one than the others, for a number of reasons. You need not only make plan as a document but to execute the plan. It doesn’t do any good to siply have plan that you do not do anything with. There is no one perfect strategic planning process, or model, to use the same way all the time with every organization. Each organization should customize the best approach to suit the culture of its members, the current situation in and around the organization, and the purpose of its planning.
- This is the most common model of strategic planning, although it is not suited for every organization. It is ideal for organizations that have sufficient resources to pursue very ambitious visions and goals, have external environments that are relatively stable, and do not have a large number of current issues to address. The model usually includes the following overall phases: 1. Develop or update the mission and optionally, vision and/or values statements. 2. Take a wide look around the outside and a good look inside the organization, and perhaps update the statements as a result. 3. As a result of this examination, select the multi-year strategies and/or goals to achieve the vision. 4. Then develop action plans that specify who is going to do what and by when to achieve each goal. 5. Identify associated plans, for example, staffing, facilities, marketing and financial plans. 6. Organize items 1-3 into a Strategic Plan and items 4-6 into a separate one-year Operational Plan.
- This model works best for organizations that have very limited resources, several current and major issues to address, little success with achieving ambitious goals, and/or very little buy-in to strategic planning. Using the conventional model of strategic planning for these organizations is a bit like focusing on the vision of running a marathon and on deciding the detailed route and milestones -- while concurrently having heart problems, bad feet and no running clothes. This model might include the following phases: 1. Identify 5-7 of the most important current issues facing the organization now. 2. Suggest action plans to address each issue over the next 6-12 months. 3. Include that information in a Strategic Plan. After an issues-based plan has been implemented and the current, major issues are resolved, then the organization might undertake the more ambitious conventional model. Many people might assert that issues-based planning is really internal development planning, rather than strategic planning. Others would argue that the model is very strategic because it positions the organization for much more successful outward-looking and longer term planning later on.
- The conventional model is considered by some people to be too confining and linear in nature. They believe that approach to planning too often produces a long sequence of orderly activities to do, as if organizations will remain static and predictable while all of those activities are underway. Other people believe that organizations are robust and dynamic systems that are always changing, so a plan produced from conventional planning might quickly become obsolete. That is true, especially if planning is meant to achieve a very long-term vision for many people, for example, for a community or even generations of people. The organic model is based on the premise that the long-term vision is best achieved by everyone working together toward the vision, but with each person regularly doing whatever actions that he or she regularly decides to do toward that vision. The model might include the following phases: 1. With as many people as can be gathered, for example, from the community or generation, articulate the long-term vision and perhaps values to work toward the vision. 2. Each person leaves that visioning, having selected at least one realistic action that he or she will take toward the vision before the group meets again, for example, in a month or two. 3. People meet regularly to report the actions that they took and what they learned from them. The vision might be further clarified during these meetings. 4. Occasionally, the vision and the lists of accomplished and intended actions are included in a Strategic Plan.
- Similar to the organic model of planning, this model is suited especially for people who believe that organizations are often changing much too rapidly for long-term, detailed planning to remain relevant. These experts might assert that planning for an organization should be done continuously, or in "real time." The real-time planning model is best suited, especially to organizations with very rapidly changing environments outside the organization.
- The primary purpose of this model is to ensure strong alignment of the organization’s internal operations with achieving an overall goal, for example, to increase productivity or profitability, or to successfully integrate a new cross-functional system, such as a new computer system. Overall phases in this model might include: 1. Establish the overall goal for the alignment. 2. Analyze which internal operations are most directly aligned with achieving that goal, and which are not. 3. Establish goals to more effectively align operations to achieving the overall goal. Methods to achieving the goals might include organizational performance management models, for example, Business Process Re-engineering or models of quality management, such as the TQM or ISO models. 4. Include that information in the Strategic Plan. Similar to issues-based planning, many people might assert that the alignment model is really internal development planning, rather than strategic planning. Similarly, others would argue that the model is very strategic because it positions the organization for much more successful outward-looking and longer term planning later on.
- This model is sometimes used when planners see themselves as having very little time available for planning and/or there is high priority on rather quickly producing a Strategic Plan document. Overall phases in this model might include: 1. Attempt to gather Board members and key employees together for planning. 2. Begin by fantasizing a highly inspirational vision for the organization -- or by giving extended attention to wording in the mission statement, especially to include powerful and poignant wording. 3. Then brainstorm exciting, far-reaching goals to even more effectively serve customers and clients. 4. Then include the vision and goals the Strategic Plan. While this model can be highly energizing, it might produce a Plan that is far too unrealistic (especially for an organization that already struggles to find time for planning) and, as a result, can be less likely to make a strategic impact on the organization and those it serves. Many experts might assert that these planners are confusing the map (the Strategic Plan document) with the journey (the necessary strategic thinking). However, it might be the only approach that would generate some outword focused discussion and also a Plan that, otherwise, would not have been written.
- I. Vision: “The articulation of hopes and dreams of a founding group” - Broad, Long-term, Inspiring and - Specific and Local - Refined as the emerging co-op moves through the development stages - Includes the co-op as a solution to a common problem or need - Core values and purpose - A vision of the process of developing a food coop
- II. Talent: “Those invested in the co-op’s success” - Champion(s) - Steering Committee or Task force - Board of Directors - Developer - Management (Development Project Manager, Facility Project Manager, General Manager)
- III. Capital: “Financial resources necessary for all stages of development” - Organizing - Feasibility - Business Planning - Implementation - Sustaining (recover and reinvest) - Internal resources are used to leverage external resources
- IV. Systems: “Organized, integrated, coordinated, and interdependent methods” - Legal - Governing - Planning & assessment - Communication and Marketing - Finance & Accounting - Operations - Commitment to continuous improvement - Systems become more complex through the stages
- SWOT is an acronym for Strengths, Weaknesses, Opportunities and Threats. The goal is to examine internal (Strengths & Weaknesses) and external (Opportunities and Threats) elements of a business. If there are multiple product lines or lines of business the SWOT Analysis can be defined more or less narrowly as necessary.
- Strategic management involves the formulation and implementation of the major goals and initiatives taken by a company's top management on behalf of owners, based on consideration of resources and an assessment of the internal and external environments in which the organization competes. Formulation Formulation of strategy involves analyzing the environment in which the organization operates, then making a series of strategic decisions about how the organization will compete. Formulation ends with a series of goals or objectives and measures for the organization to pursue. Environmental analysis includes the: Remote external environment, including the political, economic, social, technological, legal and environmental landscape (PESTLE); Industry environment, such as the competitive behavior of rival organizations, the bargaining power of buyers/customers and suppliers, threats from new entrants to the industry, and the ability of buyers to substitute products (Porter's 5 forces); and Internal environment, regarding the strengths and weaknesses of the organization's resources (i.e., its people, processes and IT systems). Strategic decisions are based on insight from the environmental assessment and are responses to strategic questions about how the organization will compete, such as: What is the organization's business? Who is the target customer for the organization's products and services? Where are the customers and how do they buy? What is considered "value" to the customer? Which businesses, products and services should be included or excluded from the portfolio of offerings? What is the geographic scope of the business? What differentiates the company from its competitors in the eyes of customers and other stakeholders? Which skills and capabilities should be developed within the firm? What are the important opportunities and risks for the organization? How can the firm grow, through both its base business and new business? How can the firm generate more values for investors? The answers to these and many other strategic questions result in the organization's strategy and a series of specific short-term and long-term goals or objectives and related measures. Implementation The second major process of strategic management is implementation, which involves decisions regarding how the organization's resources (i.e., people, process and IT systems) will be aligned and mobilized towards the objectives. Implementation results in how the organization's resources are structured (such as by product or service or geography), leadership arrangements, communication, incentives, and monitoring mechanisms to track progress towards objectives, among others. Running the day-to-day operations of the business is often referred to as "operations management" or specific terms for key departments or functions, such as "logistics management" or "marketing management," which take over once strategic management decisions are implemented.
- A goal is a specific target, an end result or something to be desired. It is a major step in achieving the vision of the organisation. In the strategic planning context a goal is a place where the organisation wants to be, in other words a destination. For example, a goal for a cooperative might be to have 15 active members. Objectives A measure of change in order to bring about the achievement of the goal. The attainment of each goal may require a number of objectives to be reached. There is often much confusion between goals and objectives. Whereas as a goal is a description of a destination, an objective is a measure of the progress that is needed to get to the destination.
- To be able to determine the most appropriate strategies it is essential to identify from the outset the boundaries of the territory in which the company or cooperative has decided to act. Moreover, it is probably also necessary to draw a map identifying the different areas within these boundaries so as to understand their various features, keeping in mind the space-time coordinates. Bear in mind that the original environment will be subject to modifications over time. During the analysis phase you should gather the basic information which is indispensable in making the decisions which follow and which constitutes the basis of future activities. The external factors that the company must deal with are as follows: 1) details of the environment in which the company is operating 2) the sector 3) the competitors 4) the purchasing behaviour of potential customers. Analysis of these external factors enables you, on the one hand to increase your knowledge of the target market and on the other hand to compare the resources of the company with those available in the industrial sector to which it belongs.
- Internal analysis is the process of identifying and evaluating an organization’s specific characteristics, including its: 1) Resources 2) Capabilities 3) Core competencies The following are two basic reasons why conducting an internal analysis is essential: 1) It is the only way to identify an organization’s strengths and weaknesses. 2) It is needed for making good strategic decisions. The outcome of the process yields valuable information about an organization’s specific assets, skills, work routines, and processes. Information that is developed from an internal analysis, coupled with the information that is gathered from the external analysis, provides the basis for developing strategic alternatives.
- · The top issues usually produce the most complex and contentious strategies to deal with the issues and reach each goal. Therefore, meetings to identify strategies may be the most contentious. · To ensure effective communication, revisit what the term “strategic” means to the planners. · While facilitating the meetings, use brainstorming to collect all ideas and process them. Use Post-It notes to organize ideas. · To help refine and clarify ideas, consider asking “Why” five times to each idea. · To further explore a suggestion or an idea, ask the speaker if his or her statement is based on an assumption, solid data, and is it a conclusion? · Each strategy or groups of strategies might be associated with new or current programs. · Each major function should eventually have its own specific strategies, measurable objectives, resource needs, financial need specification and budgets, and plans to evaluate results.
- SWOT is an acronym for Strengths, Weaknesses, Opportunities and Threats. The goal is to examine internal (Strengths & Weaknesses) and external (Opportunities and Threats) elements of a business. If there are multiple product lines or lines of business the SWOT Analysis can be defined more or less narrowly as necessary.
- Group work – make SWOT for your cooperative. Some questions to use during this activity: STRENGTHS: What are your assets? 2) Which asset is strongest? 3) What differentiates you from your competitors? 4) Do you have immensely talented people on your staff? 5) Is your business debt free or have a better debt structure than your competitors? 6) Do you have a broad customer base? 7) What unique resources do you have? 8 Do you have a sustainable competitive advantage? 9) Do you have specific sales or marketing expertise? WEAKNESSES: 1) What areas do you need to improve on? 2) What necessary expertise/manpower do you currently lack? 3) In what areas do your competitors have an edge? 4) Are you relying on one customer too much? 5) Do you have adequate cash flow to sustain you? 6) Do you have adequate profit levels? 7) Do you have a well of new ideas? 8 Are you over leveraged (too much debt)? OPPORTUNITIES: 1) What external changes present interesting opportunities? 2) What trends might impact your industry? 3) Is there talent located elsewhere that you might be able to acquire? 4) Is a competitor failing to adequately service the market? 5) Is there an unmet need/want that you can fulfill? 6) Are there trends emerging that you can profitably service? 7) If you package your product differently, can you extract a higher premium for it? 8 Can you take advantage of the historically low interest rates to refinance your debt? THREATS: 1) Is there a better equipped (funding, talent, mobility, etc) competitor in your market? 2) Is there an entity who may not be a competitor today which could possibly become one tomorrow? 3) Are your key staff satisfied in their work? Could they be poached by a competitor? 4) Is your intellectual property properly secured (trademarks, copyrights, firewalls, data security plans, etc) against theft & loss (both from internal & external sources)? 5) Do you have to rely on third parties for critical steps in your development process that could possibly derail your delivery schedule? 7) What if your supplier runs out of product and you experience an extended stockout or shortage? 8 What if there is a natural disaster? 9) What if your customers go bankrupt? 10) What if your website is hacked? 11) What if you are sued?
- “What do we do?” “For whom do we do it?” “How do we excel?” For example, the first and third questions are those that motivate an acquisition. Acquisitions are thus strategic choices. Typically strategic choices look at 3 to 5 years, although some extend their vision to 20 years (long term). Because of the time horizon and the nature of the questions dealt, mishaps potentially occurring during the execution of a strategic plan are afflicted by significant uncertainties and may lie very remotely out of the control of management (war, geopolitical shocks, etc.).
- Tactical planning is an extension of strategic planning, and tactical plans are created for all levels of an organization. It establishes the specific steps needed to implement a company's or cooperative’s strategic plan. Tactical plans are typically short-term in nature and describe what a company needs to do, the order of the steps needed to accomplish those tasks and the personnel and tools needed to meet the organization's strategic goals. A firm's tactical plan can include the input of many of its departments. After completing and implementing your company's tactical plan, you should visit the plan on a regular basis to verify that your company is sticking to the outlined steps. Tactical planning takes a company's strategic plan and sets forth specific short-term actions and plans, usually by company department or function. The tactical planning horizon is shorter than the strategic plan horizon. If the strategic plan is for five years, tactical plans might be for a period of one to three years, or even less, depending on what kind of market the business serves and the pace of change. Tactical plans are beneficial to companies because the steps developed in the plan help management find inefficiencies in its operations. Once operational shortcomings are discovered, management can take the necessary steps to make corrections. Tactical plans also allow companies to benefit from the input of its employees. Effective tactical plans must include the input of individuals involved in the day-to-day operations of a firm.
- Operational planning focuses on a cooperative's products and services and develops plans to maximize market share and develop financial projections. Operational planning focuses on the production, equipment, personnel, inventory and processes of a business. An operational plan uses an organization's financial ratios to analyze profitability. For example, the plan may include contribution ratio analysis to determine what processes are required to increase profits. This could include focusing on selling its premium products or reducing variable costs. A benefit of operational planning is that a company is able to analyze the effect of its operations on profit. Operational planning dissects a company's financial position, identifies weaknesses and develops ways to increase profits.
- The statement is developed through an interactive process by the chief executive officer and other senior management. Cooperative defines its vision statement as a description of what the organization is to become. Cooperative A’s vision statements are usually qualitative but also can be expressed in quantitative terms.
- Max 5 participants, setting vision & mission of the cooperative.
- Business Goal: Goals are the broad primary outcomes towards which effort and actions are directed in a business. They are whats, not hows and a business might have multiple goals to achieve. Business Objective: Business objective differs from business goal in the sense that they are measurable and specific. It actually quantifies the thoughts and sets a target so that the strategy can be planned around it. In other words, objectives are measurable steps an organisation takes to achieve its goals. Although business goals and objectives are loosely interchangeable, business objectives are subset of business goals. Business Strategy: Strategy is the organisation's approach to persuade the customers to buy the products or services. Strategy is how, not what. On the other hand, strategy is the organisation's approach to compete with other organisations to absorb more customers in order to achieve the objectives. It implies the marketing and advertising campaigns that are planned to attain the objectives.
- Monitoring and evaluating the planning activities and status of implementation of the plan is -- for many organizations -- as important as identifying strategic issues and goals. One advantage of monitoring and evaluation is to ensure that the organization is following the direction established during strategic planning. That advantage is obvious. However, another major advantage is that the management can learn a great deal about the organization and how to manage it by continuing to monitor and evaluate the planning activities and the status of the implementation of the plan. Note that plans are guidelines. They aren't rules. More: http://managementhelp.org/strategicplanning/implementing-plan.htm
- https://www.youtube.com/watch?v=YE_ETgaFVo8 Strategy Tools for Business Model Innovation: http://www.strategytools.io/ & video https://www.youtube.com/watch?v=rNN2bAV9Qqg&t=1303s