Strategic Planning

A strategy is a pattern or plan that integrates an organizations major goals, policies, and action sequences into a cohesive whole. James Quinn
Strategic planning is a process to provide direction and meaning to day-to-day activities. It examines an organization's values, current status, and environment, and relates those factors to the organization's desired future state, usually expressed in five- to ten-year time periods.

THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM

Why Do It?
In the simplest terms, a strategic plan can help improve performance. Its purpose is to help the institution capitalize on its strengths while minimizing its weaknesses, and to take advantage of opportunities and defend against threats. Long-term planning, which is reactive, and strategic planning, which allows an organization to create its future. In long-range planning, goals and projections are based on the assumption of organizational stability, while in strategic plan ning, the role of the organization is examined within the context of its environment.
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM

Before Implementation
The question of whether or not to develop a strategic plan may be based on answers to the following questions: What purpose will the strategic plan serve? How will it help the organization? Will it be better than the system we use now? Are those in leadership positions committed to strategic planning? How much will it cost in terms of time and personnel effort? Who should be on the planning team? Does anyone have experience with strategic planning? Do we think we can do it? Are we willing to make decisions about our future? Will we actually use the plan? What overriding crises would inhibit our ability to plan?
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM

What Does It Involve?

1.Assessing the external environment. 2. Assessing internal capacity. 3. Developing a vision or mission for the future. 4. Developing goals and objectives to reach that future. 5. Implementing the plan. 6. Measuring progress and revising the plan.
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM

Strategic Planning Process

Reason for existence Future intent Attitudes and policies

Mission

Vision

Guiding Principles

Environmental assessment Strategies

Capabilities and risks

Broad statements of direction

Strategic Objectives
Action Plans

Things to change or improve

Implementation
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM

Step 1. Assessing the external environment.

Define Opportunities and Threats come from external environment. External environmental dimensions General environment Indirect effect on firms Economic, technological, political, legal, social, demographic environment, etc. Industry environment Direct effect on firms Competitors, suppliers, customers, labor union, shareholders, etc. Typical questions posed during an external assessment include:
What is my community like today? Are the demographics changing? How? What are the implications of today's trends for the future of my community? What other agencies currently serve my community? What services do they provide? To whom? What needs exist today? What needs are anticipated for tomorrow?
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM

Step 2. Assessing internal capacity.

Define Strengths and Weaknesses

Reference questions: What purpose do we serve? What do we believe in? What resources are available to us? What internal issues must be addressed? How do we interact with the community? Whom do we serve? What needs do we meet?
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM

Step 3. VISION
What the organization will be like in the future.
Brief and memorable - grab attention Inspiring, exciting and challenging - creates excitement Descriptive of an ideal state - provides guidance Appealing to all stakeholders - employees can identify with

Solectron: Be the best and continuously improve Compaq computer: To be leading supplier of PCs and PC servers in all customer segment. KODAK: To be the worlds best in chemical and electronic imaging.
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM

Vision (continue)
Questions for defining future: How will our organization look in the future? What will our community be like five or ten years from now? What role will we play? What needs will exist? What resources will be available? Who will we serve? How will we serve them?
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM

Step 4. MISSION
Who we are? What we do? Why we exist? What our business is ? What the company is trying to accomplish for its customer?

Mission provides guidelines of how a firm will achieve its strategic vision.

The factors to consider: Customer groups (who is being satisfied) Customer needs (what is being satisfied) Technology or skills ( how customer needs are satisfied)

Olis Elevator: Our mission is to provide any customer a means of moving people and things up, down and sideways over short distances with higher reliability than any similar enterprise in the world.

THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM

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Step 5. GOALS AND OBJECTIVES

Goals give answer the question of WHAT to do for reaching desired MISSION.
Mission: To provide user-friendly, cost effective campus-wide access to statistical data for faculty, staff and student research purposes.

Goals:
Identify and acquire file server to support campuswide access. Identify and acquire software to support campuswide access.

Design menu structure to support system.

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Objectives
Objectives gives answer the question of WHO will be responsible, XYZ team WHEN it will be completed, till 2006 Jan WHERE and, Campus office HOW it will be done. Using required techs.

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Step 5 & 6

Step 5. Implementing the plan. Step 6. Evaluating progress and revising plans.

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Strategic Planning
Strengths
Internal Assisment

SWOT)
Weakness

Strength Weakness Opportunities Threats

MISSION
Culture and Values
Opportunities

VISION
External Assistment (SWOT)

GOALS

OBJECTIVES

Threats

THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM

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