Strategic Planning. Dr Stuart Hazell P h D MASM GAICD. Overview. Management Processes Strategic Focus Vision Mission The Strategic Plan Operational Plans Staff Action & Development Plans. 2. 3. What Is Strategic Planning?. Strategic Planning.
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Strategic Planning Dr Stuart Hazell PhD MASM GAICD
Overview • Management Processes • Strategic Focus • Vision • Mission • The Strategic Plan • Operational Plans • Staff Action & Development Plans 2
Strategic Planning • Addresses the question “How does _____ achieve ______?” • Based on research and understanding of the market. • Developed and implemented with intent & discipline. • Owned and understood by everyone in the company. • Dictates the actions and priorities of all the people engaged in the business. • Essential part of a successful business. 5
Strategic Planning Demands Effort • Outward looking with a long horizon • Realistic and grounded in research • On the desktop with total buy-in • Measured and reported on • Reviewed regularly • Linked directly to operational plans (Internal looking)
In Strategic Planningwe start with a Vision and MissionThe Strategic Focus dictates the nature of the Vision and Mission 10
Vision “We shall not flag or fail. We shall go on to the end. We shall fight in France. We shall fight on the seas and oceans. We shall fight with growing strength in the air. We shall defend our island, whatever the cost may be. We shall fight on the beaches. We shall fight on the landing grounds. We shall fight in the fields and in the streets. We shall fight in the hills. We shall never surrender.”
Client Company Vision What is the vision of the Client Company?
Mission "I believe that this nation should commit itself to achieving the goal, before this decade is out, of landing a man on the moon and returning him safely to the Earth." John F Kennedy
Your Mission What is the mission of the Client Company?
What does this mean? • Need to define the Mission
Developing a Strategic Plan • Know your industry and where it is going • Know your business and where it wants to go • SWOT • Commit to looking from the outside in (research) • Don’t reinforce your bias and blind spots • Don’t believe your own PR • Aim to consult at least 2 authoritative sources regarding key internal perceptions • Break the circle (don’t do it the same way every time) • The strongest voice is not always right • Where do you fit • Barriers to entry and cost of entry • Look at the gulf between where you are and where you want to be (Gap Analysis)
$ SWOT Operational Issues Strategic Issues Strength Opportunity Weakness Threat
Developing a Strategic Plan • A Strategic Plan is an Outward Looking Document • Linked to the actionsthose who will determine your success – your Stakeholders • From the Stakeholders you need to select your Strategic Partners Note: Your Strategic Partner may not know you need them to be on your side!
Developing a Strategic Plan • How do you identify Stakeholders? • They have a claim • They can influence your success (positively and negatively)
Developing a Strategic Plan • Customers • Staff • Shareholders • Suppliers • Tax office • Bank • Stakeholders • Government • Distributors • Opinion leaders • Competitors • Potential acquirer • Other funding body
Developing a Strategic Plan • How do you identify the Stakeholders you should address first? • Power • Legitimacy • Urgency • Saliency PLUS
Developing a Strategic Plan Power Urgency Dangerous Stakeholder Demanding Stakeholder Dormant Stakeholder Definitive Stakeholder Dominant Stakeholder Dependent Stakeholder Non-Stakeholder Discretionary Stakeholder Legitimacy Ref: Mitchell et al. Academy of Management Review 1997: 22; 853
Developing a Strategic Plan • Salient Stakeholders • Determine Your Success • Can’t be ignored • Are your Strategic Partners • Have wants andneeds that can and should be addressed • Their wants and needs can be leveraged to address your wants and needs
Reliable supply Exclusivity Trading terms Product training Marketing support Value for customers Profit Price Technical support Profit Price Market intelligence New product ideas Revenue growth Trading terms Improved sales of slow moving lines Forecasts Stock levels Strategic Partner Strategy Distributor You
Strategic Plan Remember, not doing something or stopping an activity can be as an important outcome as planning a new action.
Developing a Strategic Plan • When you have the Strategic Plan • Set: • Targets and timelines • Accountability • KPIs • Review framework
Process So Far • Strategic Plan – Driven by Vision & Mission • Grounded in solid intelligence and real work • Developed by the CEO with support of staff and approved by the Board (months) • Owned by all the people in the company. The Strategic Plan may redefine the Vision and Mission.
When you have a Strategic Plan Push it down
Operational Plans • The operational plan is in essence the actions that will improve the efficiency and performance of the business internally while serving the strategic objectives of the organisation.
Operational Plans • Must be linked to Strategic Plan • Inward looking • Realistic and grounded • Competence based • Short horizon • On the desk top with total buy-in • Measured and reported (weekly / monthly) • Reviewed regularly • Linked to individual goals of team members
Operational Plans Sales and Marketing have carriage of the strategic plan with respect to driving the key goals related to the Strategic Partner - Distributor Elements of a Marketing Operational Plan
Individual Goals and Employee Development • Individual goals linked to Operational Plan • Short horizon • Measure, review & report regularly (6 monthly) • Critically assess competence • Link training needs to company objectives first, but look to personal development and succession planning also • Ensure staff understand linkage to their actions to overall vision and mission
Vision Mission Strategic Plan Unit Operational Plan Unit Operational Plan Individual Performance Goals Individual Performance Goals Performance Linkage
Suggested Reading • Good to Great – Jim Collins (Harper Business) • Strategic Planning – George Steiner (Free Press Paperbacks) • Sure-Fire Steps to Small Business Success – Graham Kenny (President Press)
Conclusion • Once a departmental operational plan has been developed, individuals need to be held accountable. • Everyone needs to know who is going to do what and that all actions are a critical element of the whole. • The Strategic Plan and the Operational Plans form part of one document owned by the company.
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