Slide 1: Matt H. Evans, firstname.lastname@example.org Workshop on the
Strategic Planning Model Workshop Overview : Matt H. Evans, email@example.com Workshop Overview Clearly define the complete strategic planning
Explain how to create and execute a strategic
Provide a common model that the entire
organization can follow Introductions : Matt H. Evans, firstname.lastname@example.org Your name
Why are you here? (Expectations) Introductions What is Strategic Planning? : Matt H. Evans, email@example.com What is Strategic Planning? Process to establish priorities on what you will
accomplish in the future
Forces you to make choices on what you will do
and what you will not do
Pulls the entire organization together around a
single game plan for execution
Broad outline on where resources will get allocated Why do Strategic Planning? : Matt H. Evans, firstname.lastname@example.org Why do Strategic Planning? If you fail to plan, then you plan to fail – be
proactive about the future
Strategic planning improves performance
Counter excessive inward and short-term thinking
Solve major issues at a macro level
Communicate to everyone what is most important Fundamental Questions to Ask : Matt H. Evans, email@example.com Fundamental Questions to Ask Where are we now? (Assessment)
Where do we need to be? (Gap / Future End
How will we close the gap (Strategic Plan)
How will we monitor our progress (Balanced
Scorecard) A Good Strategic Plan should . . . : Matt H. Evans, firstname.lastname@example.org A Good Strategic Plan should . . . Address critical performance issues
Create the right balance between what the
organization is capable of doing vs. what the
organization would like to do
Cover a sufficient time period to close the
Visionary – convey a desired future end state
Flexible – allow and accommodate change
Guide decision making at lower levels –
operational, tactical, individual Strategic Planning ModelA B C D E : Matt H. Evans, email@example.com Strategic Planning ModelA B C D E Environmental Scan Assessment Background Information Situational Analysis SWOT – Strength’s, Weaknesses, Opportunities, Threats Situation – Past, Present and Future Significant Issues Align / Fit with Capabilities Mission & Vision Values / Guiding Principles Major Goals Specific Objectives Performance Measurement Targets / Standards of Performance Initiatives and Projects Baseline Components Performance Management Review Progress – Balanced Scorecard Take Corrective Actions Down to Specifics Evaluate Where we are Where we want to be How we will do it How are we doing Gaps Action Plans Feedback upstream – revise plans Pre-Requisites to Planning : Matt H. Evans, firstname.lastname@example.org Pre-Requisites to Planning Senior leadership commitment
Who will do what?
What will each group do?
How will we do it?
When is the best time? Slide 10: Matt H. Evans, email@example.com Assessment Assessment Model:S W O T : Matt H. Evans, firstname.lastname@example.org Assessment Model:S W O T Assessment External Assessment: Marketplace, competitor’s, social trends, technology, regulatory environment, economic cycles . Internal Assessment: Organizational assets, resources, people, culture, systems, partnerships, suppliers, . . . Good Points Possible Pitfalls SWOT SWOT Strength’s : Matt H. Evans, email@example.com Strength’s Assessment Strength’s – Those things that you do well, the
high value or performance points
Strengths can be tangible: Loyal customers,
efficient distribution channels, very high quality
products, excellent financial condition
Strengths can be intangible: Good leadership,
strategic insights, customer intelligence, solid
reputation, high skilled workforce
Often considered “Core Competencies” – Best
leverage points for growth without draining your
resources Weaknesses : Matt H. Evans, firstname.lastname@example.org Weaknesses Assessment Weaknesses – Those things that prevent you from
doing what you really need to do
Since weaknesses are internal, they are within
Weaknesses include: Bad leadership, unskilled
workforce, insufficient resources, poor product
quality, slow distribution and delivery channels,
outdated technologies, lack of planning, . . . Opportunities : Matt H. Evans, email@example.com Opportunities Assessment Opportunities – Potential areas for growth and
External in nature – marketplace, unhappy
customers with competitor’s, better economic
conditions, more open trading policies, . .
Internal opportunities should be classified as
Timing may be important for capitalizing on
opportunities Threats : Matt H. Evans, firstname.lastname@example.org Threats Assessment Threats – Challenges confronting the organization,
external in nature
Threats can take a wide range – bad press
coverage, shifts in consumer behavior, substitute
products, new regulations, . . .
May be useful to classify or assign probabilities to
The more accurate you are in identifying threats,
the better position you are for dealing with the
“sudden ripples” of change Slide 16: Matt H. Evans, email@example.com Baseline Why create a baseline? : Matt H. Evans, firstname.lastname@example.org Why create a baseline? Baseline Puts everything about the organization into a
single context for comparability and planning
Descriptive about the company as well as the
Include information about relationships –
customers, suppliers, partners, . . .
Preferred format is the Organizational Profile Organizational Profile1. Operating Environment : Matt H. Evans, email@example.com Organizational Profile1. Operating Environment Baseline Products and Services – Suppliers, Delivery
Channels, Contracts, Arrangements, . . .
Organizational Culture – Barriers, Leadership,
Communication, Cohesiveness . . . .
Workforce Productivity – Skill levels, diversity,
contractor’s, aging workforce, . . .
Infrastructure – Systems, technology, facilities, . .
Regulatory – Product / Service Regulation, ISO
Quality Standards, Safety, Environmental, . . . Organizational Profile2. Business Relationships : Matt H. Evans, firstname.lastname@example.org Organizational Profile2. Business Relationships Baseline Organizational Structure – Business Units,
Functions, Board, Management Layers, . . .
Customer Relationships – Requirements,
Satisfaction, Loyalty, Expectations, . . .
Value Chain – Relationship between everyone in
the value chain . . . .
Partner Relationships – Alliances, long-term
suppliers, customer partnerships, . . . Organizational Profile3. Key Performance Categories : Matt H. Evans, email@example.com Organizational Profile3. Key Performance Categories Baseline Customer
Products and Services
External (Regulatory Compliance, Social
Responsibility, . . . ) Gap Analysis : Matt H. Evans, firstname.lastname@example.org Gap Analysis Baseline Baseline / Org Profile Challenges / SWOT Gap = Basis for Long-Term Strategic Plan Slide 22: Matt H. Evans, email@example.com Components Major Components of theStrategic Plan / Down to Action : Matt H. Evans, firstname.lastname@example.org Major Components of theStrategic Plan / Down to Action Components Mission Vision Goals Objectives Measures Why we exist What we want to be Indicators and
Monitors of success Desired level of performance and timelines Planned Actions to
Achieve Objectives O1 O2 AI1 AI2 AI3 M1 M2 M3 T1 T1 T1 Specific outcomes expressed in measurable terms (NOT activities) Targets Initiatives What we must achieve to be successful Mission Statement : Matt H. Evans, email@example.com Mission Statement Components Captures the essence of why the organization
exists – Who we are, what we do
Explains the basic needs that you fulfill
Expresses the core values of the organization
Should be brief and to the point
Easy to understand
If possible, try to convey the unique nature of your
organization and the role it plays that differentiates
it from others Examples – Good and BadMission Statements : Matt H. Evans, firstname.lastname@example.org Examples – Good and BadMission Statements Components To Make People Happy To Explore the Universe and Search for Life and to Inspire the Next Generation of Explorers NASA Walt Disney Does a good job of expressing the core values of the organization. Also conveys unique qualities about the organization. Too vague and and unclear. Need more descriptive information about what makes the organization special. Vision : Matt H. Evans, email@example.com Vision Components How the organization wants to be perceived in the
future – what success looks like
An expression of the desired end state
Challenges everyone to reach for something
significant – inspires a compelling future
Provides a long-term focus for the entire
organization Examples of Vision Descriptors : Matt H. Evans, firstname.lastname@example.org Examples of Vision Descriptors Adept
State of the Art
Simple Components Guiding Principles and Values : Matt H. Evans, email@example.com Guiding Principles and Values Components Every organization should be guided by a set of
values and beliefs
Provides an underlying framework for making
decisions – part of the organization’s culture
Values are often rooted in ethical themes, such as
honesty, trust, integrity, respect, fairness, . . . .
Values should be applicable across the entire
Values may be appropriate for certain best
management practices – best in terms of quality,
exceptional customer service, etc. Examples of Guiding Principles and Values : Matt H. Evans, firstname.lastname@example.org Examples of Guiding Principles and Values Components We obey the law and do not compromise moral or ethical principles – ever!
We expect to be measured by what we do, as well as what we say. We treat everyone with respect and appreciate individual differences.
We carefully consider the impact of business decisions on our people and we
recognize exceptional contributions. We are strategically entrepreneurial in the pursuit of excellence, encouraging original thought and its application, and willing to take risks based on sound business judgment. We are committed to forging public and private partnerships that combine diverse strengths, skills and resources. Goals : Matt H. Evans, email@example.com Goals Components Describes a future end-state – desired outcome
that is supportive of the mission and vision.
Shapes the way ahead in actionable terms.
Best applied where there are clear choices about
Puts strategic focus into the organization – specific
ownership of the goal should be assigned to
someone within the organization.
May not work well where things are changing fast
– goals tend to be long-term for environments that
have limited choices about the future. Developing Goals : Matt H. Evans, firstname.lastname@example.org Developing Goals Components Cascade from the top of the Strategic Plan –
Mission, Vision, Guiding Principles.
Look at your strategic analysis – SWOT,
Environmental Scan, Past Performance, Gaps . .
Limit to a critical few – such as five to eight goals.
Broad participation in the development of goals:
Consensus from above – buy-in at the execution
Should drive higher levels of performance and
close a critical performance gap. Examples of Goals : Matt H. Evans, email@example.com Examples of Goals Components Reorganize the entire organization for better responsiveness to customers We will partner with other businesses, industry leaders, and government agencies in order to better meet the needs of stakeholders across the entire value stream. Manage our resources with fiscal responsibility and efficiency through a single comprehensive process that is aligned to our strategic plan. Improve the quality and accuracy of service support information provided to our internal customers. Establish a means by which our decision making process is market and customer focus. Maintain and enhance the physical conditions of our public facilities. Objectives : Matt H. Evans, firstname.lastname@example.org Objectives Relevant - directly supports the goal
Compels the organization into action
Specific enough so we can quantify and measure the results
Simple and easy to understand
Realistic and attainable
Conveys responsibility and ownership
Acceptable to those who must execute
May need several objectives to meet a goal Components Goals vs. Objectives : Matt H. Evans, email@example.com Goals vs. Objectives Components Examples of Objectives : Matt H. Evans, firstname.lastname@example.org Examples of Objectives Develop a customer intelligence database system to capture and analyze patterns in purchasing behavior across our product line. Launch at least three value stream pilot projects to kick-off our transformation to a leaner organization. Centralize the procurement process for improvements in enterprise-wide purchasing power. Consolidate payable processing through a P-Card System over the next two years. Monitor and address employee morale issues through an annual employee satisfaction survey across all business functions. Components Slide 36: Matt H. Evans, email@example.com Down to Specifics What are Action Plans? : Matt H. Evans, firstname.lastname@example.org What are Action Plans? The Action Plan identifies the specific steps that will be taken to achieve the initiatives and strategic objectives – where the rubber meets the road
Each Initiative has a supporting Action Plan(s) attached to it
Action Plans are geared toward operations, procedures, and processes
They describe who does what, when it will be completed, and how the organization knows when steps are completed
Like Initiatives, Action Plans require the monitoring of progress on Objectives, for which measures are needed Characteristics of Action Plans : Matt H. Evans, email@example.com Characteristics of Action Plans Assign responsibility for the successful completion of the Action Plan. Who is responsible? What are the roles and responsibilities?
Detail all required steps to achieve the Initiative that the Action Plan is supporting. Where will the actions be taken?
Establish a time frame for the completion each steps. When will we need to take these actions?
Establish the resources required to complete the steps. How much will it take to execute these actions?
Define the specific actions (steps) that must be taken to implement the initiative. Determine the deliverables (in measurable terms) that should result from completion of individual steps. Identify in-process measures to ensure the processes used to carry out the action are working as intended. Define the expected results and milestones of the action plan.
Provide a brief status report on each step, whether completed or not. What communication process will we follow? How well are we doing in executing our action plan?
Based on the above criteria, you should be able to clearly define your action plan. If you have several action plans, you may have to prioritize. Action Plan Execution : Matt H. Evans, firstname.lastname@example.org Action Plan Execution Requires that you have answered the Who, What, How, Where, and When questions related to the project or initiative that drives strategic execution
Coordinate with lower level sections, administrative and operating personnel since they will execute the Action Plan in the form of specific work plans
Assign action responsibility and set timelines – Develop working plans and schedules that have specific action steps
Resource the project or initiative and document in the form of detail budgets (may require reallocation prior to execution)
Monitor progress against milestones and measurements
Correct and revise action plans per comparison of actual results against original action plan Quantify from Action Level Upin terms of Measurements : Matt H. Evans, email@example.com Quantify from Action Level Upin terms of Measurements Measure your milestones – short-term outcomes at
the Action Item level.
Measure the outcomes of your objectives.
Try to keep your measures one per objective.
May want to include lead and lag measures to
depict cause-effect relationships if you are
uncertain about driving (leading) the desired
Establish measures using a template to capture
critical data elements Measurement Template : Matt H. Evans, firstname.lastname@example.org Measurement Template Criteria for Good Measures : Matt H. Evans, email@example.com Integrity – Complete; useful; inclusive of several types of measure; designed to measure the most important activities of the organization
Accurate - Correct
Timely – Available when needed: designed to use and report data in a usable timeframe
Confidential and Secure: Free from inappropriate release or attack Criteria for Good Measures Examples of MeasurementsLead Indicators : Matt H. Evans, firstname.lastname@example.org Examples of MeasurementsLead Indicators Average time to initiate customer contact => shorter time should lead to better customer service
Average response time to incident => below average response times should lead to increased effectiveness in dealing with incident
Facilities that meet facility quality A1 rating => should lead to improved operational readiness for meeting customer needs Examples of MeasurementsLag Indicators : Matt H. Evans, email@example.com Examples of MeasurementsLag Indicators Overall customer satisfaction rating => how well you are doing looking back
Business Units met budgeted service hour targets => after the fact reporting of service delivery volume
Number of category C safety accidents at construction sites => historical report of what has already taken place Targets : Matt H. Evans, firstname.lastname@example.org Targets For each measurement, you should have at least one target
Targets should stretch the organization to higher levels of performance
Incremental improvements over current performance can be used to establish your targets
Targets put focus on your strategy
When you reach your targets, you have successfully executed your strategy Examples of Targets : Matt H. Evans, email@example.com Examples of Targets Sanity Check . . . : Matt H. Evans, firstname.lastname@example.org Make sure everything is linked and connected for a tight end-to-end model for driving strategic execution. Sanity Check . . . Slide 48: Matt H. Evans, email@example.com Evaluate Continuous Feedbackthrough the Balanced Scorecard : Matt H. Evans, firstname.lastname@example.org Continuous Feedbackthrough the Balanced Scorecard Cascade and align from the top to create a Strategic Management System.
Use the Balanced Scorecard framework to organize and report actionable components.
Use the Scorecard for managing the execution of your strategy.
Scorecard “forces” you to look at different perspectives and take into account cause-effect relationships (lead and lag indicators)
Improves how you communicate your strategy – critical to execution. Performance Management : Matt H. Evans, email@example.com D2-D5: Build the Balanced Scorecard Performance Management Establish a regular review cycle using your balanced scorecard.
Analyze and compare trends using graphs for rapid communication of performance.
Don’t be afraid to change your metrics – life cycle (inputs to outputs to outcomes)
Work back upstream to revise your plans: Action Plans > Operating Plans > Strategic Plans
Planning is very dynamic – must be flexible to change.
Recognize and reward good performance results
Brainstorm and change – take corrective action on poor performance results. Automating the Process : Matt H. Evans, firstname.lastname@example.org D2-D5: Build the Balanced Scorecard Automating the Process Low Cost Scorecard Tools
Scorecard Hosting (www.scorecardhosting.com)
High End Best of Breed Tools
PB Views (www.pbviews.com)
Rocket (www.rocketsoftware.com/portfolio/epm) Link Budgets to Strategic Plan : Matt H. Evans, email@example.com Link Budgets to Strategic Plan The world’s best Strategic Plan will fail if it is not adequately resourced through the budgeting process
Strategic Plans cannot succeed without people, time, money, and other key resources
Aligning resources validates that initiatives and action plans comprising the strategic plan support the strategic objectives What Resources?How to Link? : Matt H. Evans, firstname.lastname@example.org Every Action Plan should identify the following:
The people resources needed to succeed
The time resources needed to succeed
The money resources needed to succeed
The physical resources (facilities, technology, etc.) needed to succeed
Resource information is gathered by Objective Owners which is provided to the Budget Coordinators for each Business Unit.
Resources identified for each Action Plan are used to establish the total cost of the Initiative.
Cost-bundling of Initiatives at the Objective level is used by our Business Unit Budget Coordinators to create the Operating Plan Budget What Resources?How to Link? Some Final Thoughts : Matt H. Evans, email@example.com Some Final Thoughts Integrate all components from the top to the bottom: Vision > Mission > Goals > Objectives > Measures > Targets > Initiatives > Action Plans > Budgets.
Get Early Wins (Quick Kills) to create some momentum
Seek external expertise (where possible and permissible)
Articulate your requirements to senior leadership if they are really serious about strategic execution Slide 55: Thanks for your participation!