Planning Strategically LL558D Week 1

1. Planning StrategicallyLL558DWeek 1 Text: Strategic Planning for Public and Private Organizations (3rd Edition) Readings: Introduction to Part I and Chapter 1 “Why Strategy Planning is More Important than Ever” Chapter 2 “The Strategy Change Cycle….” Chapter 12 “Getting Started with Strategic Planning” Lewis University LL558D. Reminder: These slides are not intended to replace your own notes.

2. Introduction 2 Lewis University LL558D. Reminder: These slides are not intended to replace your own notes. • In Week 1, we will begin our work by understanding the importance of strategic planning. • There are many reasons to plan and many ways to plan. • Strategic planning starts with the understanding that change and growth are needed by every organization. • Change might arise because of pressing circumstances (internal or external) • Planning for change should also be a regular part of an organization’s best practices. • We must understand the nature of strategic planning and how it differs from other types of planning. • We will also understand how a strategic plan unfolds by examining the steps of the Strategic Change Cycle.

3. Key Questions 3 Lewis University LL558D. Reminder: These slides are not intended to replace your own notes. What is strategic planning? What is the purpose and importance of strategic planning? When is strategic planning not the appropriate approach to resolving current issues? What is the “rational planning model” vs. the “political decision-making model” for planning? When is it not appropriate to attempt to use strategic planning as a means forresolving an organization’s current issues? What are the steps of the Strategy Change Cycle?

4. Key Concepts 4 Lewis University LL558D. Reminder: These slides are not intended to replace your own notes. • Strategies vs. Tactics • Types of planning • Types of strategies: • Organizational, programmatic, functional strategies • Action plans • Strategic Change Cycle

5. What is a Strategy? • Strategies: Move us from current state to a desired future state by identifying important steps and actions required to realize our vision and mission. • A strategy shapes our decisions about direction. • A strategy springs from understanding our desires for the future. • Strategies work on a high level to realize a vision and mission. • To create a strategy, we must understand what works, but we do not need to establish the answer to every detail. • Plans: Plans are the means by which we reach targeted goals. • Generally, a plan specifies actions to take to reach those goals. • Some plans bring a strategy to fruition. • Targeted goals are identified parts of the larger strategy. • Other plans might not be part of any larger strategy e.g., a plan to go to the movies. Lewis University LL558D. Reminder: These slides are not intended to replace your own notes.

6. Types of Plans Compared 6 Lewis University LL558D. Reminder: These slides are not intended to replace your own notes. • Strategic planning determines where an organization (or some identifiable sub-group of an organization) is going over the next few years, and lays out the high level road map for how to get there. • A strategic plan also must indicate how we know when we have successfully arrived at the desired state. • A business plan can be created for a new business or service organization. It can also be created for a new product, service, or program of an existing business. • Even non-profits and public service organizations need business plans. • A business plan is used to demonstrate that the product or service has a market (customers, clients), identify competitors, analyze the organization’s competitive advantage, and develop performance targets. • A marketing plan focuses on creating public awareness of, and desire for, a product or services. • All organizations -- whether for-profit, not-for-profit or public service -- need marketing plans. A good strategic plan for an organization includes high level consideration of business and marketing factors, but leaves the nitty-gritty details to the implementation teams.

7. Types of Strategies All strategies aim to deliver value in accordance with the vision and mission. 7 Lewis University LL558D. Reminder: These slides are not intended to replace your own notes. • Organizational strategy: What path will the organization as a whole take to achieve its vision, mission and goals? • Programmatic strategy: How will the organization develop, manage and deliver programs in order to realize its vision, mission and goals? • Example: If our mission and goals are to deliver prostate cancer care services to uninsured men, the strategy must consider how the program can best reach patients, how other service agencies might assist the delivery, how marketing would create awareness of the program, etc. • Functional strategy: How can the organization best rethink the administrative and support needs that impact its efficiency and effectiveness? • Example: If the current bookkeeping system cannot support our goals, a functional strategy will decide whether to purchase and install a new system, outsource our work, or buy an accounting services firm. We must win stakeholder support for the strategy and related investments in time, software, training and other costs.

8. Tactics • Tactics: The art or science of taking a series of actions to achieve (or advance toward) specific objectives or goals. http://www.merriam-webster.com/dictionary/tactics • The terms ‘strategy’ and ‘tactics’ have roots in military terminology. • In the military, tactics are part of a larger plan which in turn involves a larger strategy for winning. • In the civilian world, ‘tactics’ is a term often associated with being clever, cunning or aggressive. • Example: Hitler’s strategy to take over Europe was to rule through fear and propaganda. Tobe feared by other countries, Hitler’s strategy included the plan called blitzkrieg (lightening war). Blitzkriegattacks utilized the tactics of initial bombardment followed by motorized forces attacking with speed and surprise. Theses tactics caught his targets unprepared, with no time to set up defenses. Lewis University LL558D. Reminder: These slides are not intended to replace your own notes.

9. John Paul Jones History Channel broadcast July 4, 2008 9 Lewis University LL558D. Reminder: These slides are not intended to replace your own notes. During the American Revolution, John Paul Jones (often called the father of the US Navy) had a strategy for American navy. His strategywas to bring the war to England, terrifying the British citizenry and causing them to realize that the war to retain the Colonies would be very costly to them personally. America had no real Navy or warships, just a ragtag fleet of converted merchant ships. His action plan was to attack cargo suppliers along the British Isles. For implementation, he took one good ship. His tactics included actions outside the “gentlemanly” rules of naval war, such as flying the British flag until he got close, and putting men with guns in the rigging to fire on the British ships. His strategy reached a milestone when he captured a Brisith Man-of-War.

10. How do we start Strategic Planning? “…strategic planning may be defined as a disciplined effort to produce fundamental decisions and actions that shape and guide what an organization (or any other entity) is, what it does, and why it does it. ” (Bryson, p. xii) • Where are we now? • Where do we want to be? • How do we know where we want to be? • Role of Dreaming and Visioning • How do we know realistically where we can be? • Role of techniques of analysis such as STEEP Lewis University LL558D. Reminder: These slides are not intended to replace your own notes.

11. Which comes first? Some writers claim that strategizing starts with dreaming… Others say that cannot be the case: • Assess reality first, then desire. – Pro: Allows for realistic desire. – Con: Might inappropriately limit desire. • Assess desire first, then reality. – Pro: Allows for big dreams. – Con: Might result in unrealistic expectations. Lewis University LL558D. Reminder: These slides are not intended to replace your own notes.

12. Why is a disciplined approach important? 12 Lewis University LL558D. Reminder: These slides are not intended to replace your own notes. A disciplined approach to strategic planning is essential: • Allows us to make hard assessments of the organization’s identity and accomplishments. • Asks tough questions; gives honest, researched answers. • Prevents a snowball effect that can occur when a rush of new ideas tempt us to be all things to all people. • Captures the energy and vision of all parts of the organization, not just the ideas of a few. • Helps us to focus on the goals that best promote the organization’s future service to it’s clients/ customers. • Allows us to advance from ideas and intentions to well formulated action. • Minimizes the risk of incompatible actions. • Promotes decision-making in the face of substantial uncertainty and ambiguity.

13. Strategy Change Cycle: Chapter Map (1) • Chapter 1: “Why Strategic Planning is More Important Than Ever”: Provides an introduction to strategic planning. • Chapter 2: “The Strategic PlanningCylce”: A summary of the steps of the Strategic Change Cycle (SCC) • Chapter 3: “Initiating and Agreeing on a Strategic Planning Process”:Step 1 of the SCC. • Chapter 4: “Clarifying Organizational Mandates and Mission”: Steps 2 and 3 of the SCC. • Chapter 5: “Assessing the Environment to Identify Strengths and Weaknesses, Opportunities and Challenges”: Step 4 of the SCC. 13 Lewis University LL558D. Reminder: These slides are not intended to replace your own notes. In the our text, Strategic Planning for Public and Non-profit Organizations (3rd edition), Bryson provides the Strategy Change Cycle as an effective approach to Strategic Planning. The chapters correspond to the steps of the cycle:

14. Strategy Change Cycle: Chapter Map (2) 14 Lewis University LL558D. Reminder: These slides are not intended to replace your own notes. • Chapter 6: “Identifying Strategic Issues Facing the Organization”:Step 5 of the SCC. • Chapter 7: “Formulating and Adopting Strategies and Plans to Manage the Issues”: Steps 6 & 7 of the SCC. • Chapter 8: “Establishing an Effective Organizational Vision for the future”: Step 8 of the SCC. • Chapter 9: “Implementing Strategies and Plans Successfully”: Step 9 of the SCC. • Chapter 10: “Reassessing and Revising Strategies and Plans”: Step 10 of the SCC.

15. Strategies Look Externally and Internally 15 Lewis University LL558D. Reminder: These slides are not intended to replace your own notes. In Step 4 of the SCC (Chapter 5), Bryson describes how to assess our current and future position in the external world and our internal readiness to move forward: • High level assessment of market, suppliers, other forces (STEEP) • Innovation, technology – how will their spread impact us? • Business risk in the current and predicted economy • Regulations – current and anticipated • Customers • Customer demand – current and anticipated • Competitive Forces • Rivals, new entrants, substitutes – current and anticipated • Change Forces • New markets, market growth, globalization • Internal SWOC (Strengths, weaknesses, opportunities, challenges)

16. Strategies Reveal Reveal and evaluate assets and needs: • Resource Needs • Gaps between current resources and needs • New/ improved core competencies • New/ improved technology • New/improved human resource • New/ improved financial capital • Strategy should indicate how best to: • Direct resources/investments to priority projects • Prepare appropriate feasibility studies • Create changes in daily operations Lewis University LL558D. Reminder: These slides are not intended to replace your own notes.

17. Strategies Anticipate Impact 17 Lewis University LL558D. Reminder: These slides are not intended to replace your own notes. Plan development and implementation demand that we anticipate the impact on our current employees and technology: • Marketing team • Finances • Human resources including training: • Current skills • Future skills needed • Skills no longer needed • Operations/ production • Technology • Management/ leadership • Organization • Information systems

18. Challenge 18 Lewis University LL558D. Reminder: These slides are not intended to replace your own notes. • We have all been faced with deciding strategies for our own lives. Where do we want to be 5 years from now? How will we attain those goals? • Looking at the Strategic Change Cycle and how it might apply to developing personal life strategies, which part of the cycle do you think would be the most difficult to apply? Why?