STRATEGIC PLANNING

. . . defines clearly what the

organization wants,what it is all
about, who it wishes to serve,
what it intends to get out of its
efforts, and how specifically it
should move over time.
THE STRATEGIC PLANNING PROCESS
1. From the TOP where the strategist draws a clear
picture of where it wants to go (a vision) and
establishes a purpose for being of the
organization (the mission statement).

2. From the BOTTOM where the strategist grounds

the organization according to the realities of the
environment it operates in.

a. External environment – industry or sector

b. Internal environment – resources, manpower,
capabilities, and
constraints
 VISION, MISSION, OBJECTIVES, KRAs, and
PERFORMANCE INDICATORS

VISION – an ideal state or condition which an

organization wants to attain
MISSION – general thrust of the organization that is
anchored in its vision
– broad enough to inspire its organization
but narrow enough to focus its efforts
GOALS – measurable end results that derive their
impetus from the mission statement
KEY RESULT AREA (KRA) – functional areas where
results should be generated
PERFORMANCE INDICATOR – measure of standards
based on KRA
 FACTORS IN
ENVIRONMENTAL
ANALYSIS
 SOCIAL
 POLITICAL
 ECONOMIC

ECOLOGICAL
 INTERNAL ASSESSMENT
1. Determine its performance vis-a-vis its given or
adopted mandate (vision, mission, objectives)
2. Gauge the capabilities of the people in the
organization to carry out the chosen strategies
3. See whether the proper amount of resources
are being put behind the strategies to realize
organizational objectives
4. Evaluate the systems, processes, and
procedures instituted by the organization to
implement its strategies and attain its
5. objectives
Assess the different operational functions of the
organization, its various programs and projects
and the support services supplied to back up
the strategies and objectives desired
6. Examine individual managers and teams of people as
to their management styles, value systems,
relationships, ethics, client orientation, and
performance accdg. to result-based criteria
7. The organization’s facilities and environment must
be studied to see whether they are responsive to
organizational needs and conducive to good
performance
8. The organization’s external linkages and networks as
well as its detractors/competitors must be scanned
as to their role in the organization’s effectiveness

9. Top managers and leaders must be evaluated as to

their ability to elicit support, and

10. Assess over-all consistency or fit among the

strategies adopted, and the people of the
organization in relation to the adopted vision,
mission, and objectives.
 STRATEGIES, ORGANIZATION, AND PEOPLE
INTERRELATIONSHIPS

STRATEGIES ORGANIZATIO

• Programs • Planning • Structures

• Decision-making
• Activities • Systems
• Implementing
• Tasks • Resources

VISION
MISSION
OBJECTIVES • Leading
• Motivating • Relating
• Evaluating • Staffing
and
Supportin
g
• Capabilities
• Attitudes

PEOPLE
 SWOT ANALYSIS
1. Strengths-Opportunities (S-O) strategies
Ask the question: How can strengths be employed to take
advantage of development opportunities?
2. Strengths-Threats (S-T) strategies
Ask the question: How can strengths be used to counteract
threats that tend to hinder achievement of objectives an
dpursuit of opportunities?

3. Weaknesses-Opportunities (W-O) strategies

Ask the question: How can weaknesses be overcome to take
advantage of or implement development opportunities?

4. Weaknesses-Threats (W-T) strategies

Ask the question: How can weaknesses be overcome to
counteract threats that tend to hinder achievement of
objectives and pursuit of opportunities?
 SWOT ANALYSIS
Internal
Environment STRENGTHS WEAKNESSES
Assessment

External
Environment
Assessment

OPPORTUNITIES (S-O) (W-O)

THREATS (S-T) (W-T)

 BASIC STEPS IN STRATEGIC
PLANNING
 Analysis of the situation, both internal and
external
 Diagnosis, or identification of the key issues
facing the organization

 Definition of the organization’s fundamental

mission
 Articulation of the organization’s basic goals

 Creation of a vision: what success looks like

 Development of a strategy to realize the vision

and goals
 Development of a timetable for that strategy

 Measurement and evaluation of results

 BASIC STEPS IN STRATEGIC PLANNING
(Bryson Model)
 Initiating and agreeing on a strategic planning
process
 Identifying organization mandates
 Clarifying organization mission and values

 Assessing the external environment

(opportunities and threats)
 Assessing the internal environment (strengths
and weaknesses)

 Identifying the strategic issues facing an

organization
 Formulating strategies to manage the issues
 Establishing an effective organization vision for
 Sample Sequence
A sample sequence of the strategic planning proce
may go like this:

1. Review of existing vision, mission, and objective

and of existing strategies.

2. Take stock of existing environment according to

relevance, magnitude, importance and urgency.
• Study events unfolding and resources of the
environment
• Evaluate trends, directions, movements in
the environments
 • Identify opportunities for development by
the organization

• Identify obstacles or threats to development

by the the organization

3. Asses internal environment using the ten tasks

(processes) outlined in this paper (refer to sectio
on Internal Assessment). Gauge strengths and
weaknesses of the organization.

4. Re-examine values, ideologies in light of change

in external environment and internal capabilities
Refine vision, mission and objectives accordingly
5. Establish key result areas and specific result-
oriented, measurable performance indicators.

6. Juxtapose opportunities and threats found in

external environment with internal strengths an
weaknesses of the organization. This serves
as the basis for doing a SWOT analysis.

7. Creatively list strategic options. Samples includ

the following strategic options which are
categorized according to Strengths-Opportunitie
(S-O), Strengths-Threats (S-T), Weaknesses-
Opportunities (W-O) and Weaknesses-Threats
(W-T).
 Internal Strengths Weaknesses
Environment
Assessment
External
Environment
Assessment
Opportunities (O)(S-O) (W-O)
1. 2. Expand area/sector/2. Niche
2. industry coverage 3. Form linkages or
3. 2. Intensify existing networks
4. operations 3. Subcontract
3. Integrate backward
or forward
4. Acquire or take over
Threats (T) (S-T) (W-T)
1. 2. Diversify into other 2. Retrench
2. services or products
3. Merge
3. 2. Consolidate 4. Withdraw/
4. 3. Contingency close shop
mechanisms
8. Make a choice according to criteria supportive
of key result areas and performance indicators
that have been established.
9. Gear for implementation

a. Define specific, shorter term goals

b. Set policies, guiding principles
c. Allocate resources: money
people
facilities
managers
time
 d. Organize for tasks

e. Determine who will manage what

f. Service delivery mechanisms, methods,

systems, procedures

g. Sequencing of activities; planning step by

step process; time-framing of whole strategy,
programs, and projects
h. Support systems; alliance building

i. Communication and dissemination

10. Contingency Planning
What can go wrong?
Establish fallback positions

11. Evaluation Process

a.Monitoring of performance according to key

result areas and performance indicators.
b. Evaluating variance from performance and
establishing causes, determining effects.
c. Corrective action
d. Instituting better control mechanism

12. Reformulate strategies

A summary Table of Strategic Planning
Components is attached for reference.
 SUMMARY TABLE OF STRATEGIC PLANNING COMPONENTS:
FROM VISION TO PERFORMANCE

Vision
  Targeted
  Strategies
  Programs,
  Internal
  Internal
  Internal
  External
  External
  External
  Actual
 
Mission Results/ to Ensure Activities, Staff Capabilities
ResourcesAssistance
Organizations
ResourcesPerformanc
Impact-based
Outcomes/and Tasks Requiredand Skills Required Needed to be RequiredIndicators
PerformanceResults Required Accessed
Indicators Impacts

 
1.Objective 1  a.  
Strategy P  
1rogram  
A a.  
a.  
a.  
a.  
a.  
a. a. 
b. - Activities
Key Result - Tasks
Area(s)

  2  c.  
Strategy 2             b.  b. 
. Objective Program B b. b. b. b. b.
d. - Activities
ey Result - Tasks
rea(s)

                     
. Objective 3 e. Strategy Program
3 C c. c. c. c. c. c. c.
f. - Activities
ey Result - Tasks
rea(s)

 
. Objective 4  g.  
Strategy P  
4rogram  
D d.  
d.  
d.  
d.  
d.  
d. d. 
h. - Activities
ey Result - Tasks
rea(s)
Strategic Planning Process

The Issues The The Process

Components

Where are Internal/ • Conduct situation

we now? External inventory and
Assessment experimental scan
• Conduct quality
assessment and
benchmarking

• Define strategic
issues
The Issues The The Process
Components
Where are Mission and • Define the
we now? Principles institution’s
purpose in a broad
comprehensive
statement
• Define core values
and action to
achieve mission
• Employees and
management are
involved
 The The Process
The Issues
Components

Where do Vision • Articulate the

we want to compelling
be? image of desired
future
 The The Process
The Issues
Components
• Establish goals
Where do Goals and and objectives
we want to Objectives based on
be? consideration
revealed in the
internal and
external
assessment
• Indicate specific
and measurable
targets for
accomplishment
The Issues The The Process
Components

How do we Strategies and • Determine

get there? Action Plans strategies used to
accomplish goals
and objectives
• Involve detailed
work plans
• Lead to resource
allocation
The Issues The The Process
Components

How do we Performance • Determine

measure our Measure methods used to
progress? measure results

• Ensure
accountability
 The The Process
The Issues
Components
How do we Monitoring and • Design systems to
measure our Tracking monitor progress
progress?
• Keep plans on
track
Source: State of Arizona’s Strategic Planning and Performance Management
Handbook, Managing for Results

Note:
1. In practice, the process is not linear. Some steps may
be repeated as assumptions change.
2. Each planning result should be communicated to every
level of the institution so that everyone shares it.