STRATEGIC PLANNING

STRATEGIC PLANNING PART II PROCESS & PLAN COMPONENTS MANAGEWARE Office of Planning and Budget Division of Administration State of Louisiana

Strategic Planning ANSWERING THE FIVE MANAGEMENT QUESTIONS APPLYING THE STRATEGIC PLANNING PROCESS, COMPONENT BY COMPONENT Louisiana Office of Planning and Budget

APPLYING THE STRATEGIC PLANNING PROCESS Who are we? VISION MISSION PHILOSOPHY (VALUES) Together, these constitute the organization’s unique identity—its organizational DNA. Louisiana Office of Planning and Budget

Vision Mission Values KEY POINT APPLYING THE STRATEGIC PLANNING PROCESS Who are we? CRYSTALLIZING THE ORGANIZATION’S IDENTITY • Linking vision, mission, and values creates a powerful synergy. • Each is important yet they are codependent. • Without a vision, there is no inspiration. • However, a vision without a mission is an impractical notion. • And a mission without values could lead to an "ends justify means" philosophy. Crystallizing the organization's identity is a responsibility of leadership but, to be successful, it should be based on input from all. Louisiana Office of Planning and Budget

APPLYING THE STRATEGIC PLANNING PROCESS VISION A COMPELLING CONCEPTUAL IMAGE OF THE DESIRED FUTURE • Your visions become your • reality. • - Star Wars: The Phantom Menace Louisiana Office of Planning and Budget

APPLYING THE STRATEGIC PLANNING PROCESS VISION • A COMPELLING CONCEPTUAL IMAGE OF THE DESIRED FUTURE • A vision statement should be: • brief and memorable • inspiring and challenging • descriptive of the ideal • descriptive of future service levels • extraordinary but authentic • appealing to everyone in the organization and to customers and other stakeholders Louisiana Office of Planning and Budget

APPLYING THE STRATEGIC PLANNING PROCESS INSPIRING VISIONS To be a low cost producer of the highest quality products and services that provide the best customer value. Ford Motor Company North Carolina will be a desirable place to live a productive, rewarding and satisfying life. Its people will have a shared sense of place, stewardship and values. Commission for a Competitive North Carolina To provide innovative and creative leadership focused on outcomes and improvements that promote a new image for Louisiana. Louisiana Division of Administration Minnesota's economic activity will create wealth and provide a good standard of living for all our people. Minnesota Milestones Louisiana Office of Planning and Budget

APPLYING THE STRATEGIC PLANNING PROCESS MISSION • A BROAD, COMPREHENSIVE STATEMENT OF PURPOSE • The mission identifies what an organization does and for whom it does it. That is, it describes an organization’s products or services and its customers. • The mission is all encompassing and rarely changes. It is the ultimate rationale for the existence of the organization. • A well-written mission statement: • Identifies purpose but not process. • Identifies customers or users of the organization’s products. • Identifies services or products provided by the organization. • Is clear and succinct. Louisiana Office of Planning and Budget

APPLYING THE STRATEGIC PLANNING PROCESS MEANINGFUL MISSION STATEMENTS • EXAMPLES: • The Alliance for Youth, led by General Colin Powell, is dedicated to mobilizing individuals, groups and organizations from every part of American life to build and strengthen the character and competence of our youth. • - America’s Promise • California Literacy, Inc. is a non-profit, volunteer assisted, educational organization which provides statewide leadership to new and existing literacy programs and their students by offering diverse training, resources, consultation, and advocacy to help people gain the literacy skills they need to participate more effectively in society. • - California Literacy Incorporated • The mission of the Education Commission of the States is to help state leaders develop and carry out policies that promote improved performance of the education system. • - Education Commission of the States Louisiana Office of Planning and Budget

APPLYING THE STRATEGIC PLANNING PROCESS MEANINGFUL MISSION STATEMENTS LOUISIANA: “The mission of the Department of Environmental Quality is to maintain a healthful and safe environment for the people of Louisiana.” “The mission of the Department of Health and Hospitals is to protect and promote health and to ensure access to medical, preventive, and rehabilitative services for all citizens of the State of Louisiana.” Louisiana Office of Planning and Budget

APPLYING THE STRATEGIC PLANNING PROCESS MEANINGFUL MISSION STATEMENTS LOUISIANA: "The mission of the Criminal Law and Medicaid Fraud Program is to seek justice on behalf of the citizens of the State of Louisiana by the execution of superior, professional, and effective investigation and prosecution of all matters referred to the Department of Justice.“ FEDERAL GOVERNMENT: “The mission of the Office of Management and Budget (OMB) is to help the President in carrying out his constitutional and statutory duties.“ Louisiana Office of Planning and Budget

APPLYING THE STRATEGIC PLANNING PROCESS WRITING A MISSION STATEMENT POINTER: Write a mission statement with the assumption that readers have no knowledge of the organization, what it does, whom it serves, why it is needed, or how it works. POINTER: Avoid using technical terminology, abbreviations, and acronyms. POINTER: To develop a brief, clear mission statement, imagine giving a one-minute explanation of the organization to a legislative committee, the general public, or a community group. Think about how to best describe the organization in terms they can understand. Louisiana Office of Planning and Budget

APPLYING THE STRATEGIC PLANNING PROCESS WRITING A MISSION STATEMENT • POINTER: Use the following template to help develop a mission statement. • The purpose of the (fill in the name of the organization) is to provide (identify the service or deliverable) to (identify the customers who will receive the service or benefit from the service or deliverable) . Louisiana Office of Planning and Budget

APPLYING THE STRATEGIC PLANNING PROCESS WRITING A MISSION STATEMENT Some organizations may opt to expand the mission statement by adding one of the following phrases to the end of the mission statement: “in order to____________________________________________” or “so that ______________________________________________” or “so they can _________________________________________.” Although this additional material is not required, it is sometimes helpful to an organization (particularly, at the program or activity level) that is struggling to identify desired outcomes (goals and objectives) and performance measures. Use this approach cautiously, however, in order to avoid rambling, unfocused mission statements. Louisiana Office of Planning and Budget

APPLYING THE STRATEGIC PLANNING PROCESS PHILOSOPHY (VALUES) • CORE VALUES DESCRIBING HOW THE ORGANIZATION CONDUCTS ITSELF IN CARRYING OUT ITS MISSION • Philosophy puts a foundation of principles or beliefs behind the vision and mission. • Philosophy statements express the organization’s attitude about three things: • PEOPLE: The way in which people inside and outside the organization are treated. • PROCESS: The way in which the organization is managed, decisions are made, and products or services are produced. • PERFORMANCE: Expectations concerning the quality of its products and services. Louisiana Office of Planning and Budget

APPLYING THE STRATEGIC PLANNING PROCESS EXPRESSIVE PHILOSOPHY STATEMENTS "We want to give the best customer service of any company in the world." - International Business Machines "Working together to create an environment for positive change." - Louisiana Division of Administration “Quality is job one.” - Ford Motor Company Louisiana Office of Planning and Budget

APPLYING THE STRATEGIC PLANNING PROCESS EXPRESSIVE PHILOSOPHY STATEMENTS • "Economic development is primarily a private sector phenomenon, the offspring of an active free enterprise system. Actions taken by government should be designed to foster private development, not to supplant it. • Government should attend to infrastructure needs: education, public sector research and development, transportation, and communications. Appropriations should be viewed as investments in the economic future, not as expenditures. Government should provide a stable and fair tax, regulatory, and legal environment in which business may be done efficiently and profitably. In many cases, strong, effective public-private partnerships should be utilized to achieve economic development objectives. • Louisiana must continue with its significant and sustained efforts to change the way it does business. While the new Louisiana called for in Vision 2020 will be a better place economically, educationally, and environmentally, it should remain identifiably Louisiana, a place like no other." • - Louisiana: Vision 2020 (2003 Update) Louisiana Office of Planning and Budget

APPLYING THE STRATEGIC PLANNING PROCESS EXPRESSIVE PHILOSOPHY STATEMENTS All members of the Department shall serve the public to the best of their ability by being dedicated and accountable and by managing all allocated resources effectively and efficiently. This agency seeks to preserve the peace and to protect the persons, property, rights, and privileges of all people in the state of Texas through ethical leadership and superior employee development. To this end, it is imperative that all employees uphold the Department motto of COURTESY – SERVICE – PROTECTION and respect the constitutional right of all persons to liberty, equality, and justice. - Texas Department of Public Safety Louisiana Office of Planning and Budget

APPLYING THE STRATEGIC PLANNING PROCESS What makes the organization unique? CRYSTALLIZING THE ORGANIZATION’S IDENTITY VISION MISSION PHILOSOPHY (VALUES) Louisiana Office of Planning and Budget

APPLYING THE STRATEGIC PLANNING PROCESS Where are we now? INTERNAL/EXTERNAL ASSESSMENT AN ANALYSIS AND EVALUATION OF INTERNAL CONDITIONS AND EXTERNAL FACTORS THAT AFFECT THE ORGANIZATION The process of conducting an assessment if often referred to as aSWOT analysis because it involves a review of an organization’s internalStrengths andWeaknesses and externalOpportunities and Threats. A thorough understanding of both internal and external factors enables planners to most advantageously position the organization to respond to its environment and prosper in the future. The internal/external assessment should be conducted prior to goal setting. Louisiana Office of Planning and Budget

APPLYING THE STRATEGIC PLANNING PROCESS INTERNAL/EXTERNAL ASSESSMENT • Internal/external assessment involves: • Situation Inventory – an assessment of an organization’s position, performance, problems, and potential. • Environmental Scan – an analysis of key external elements or forces that affect the environment in which an organization functions. • Foresight or Anticipation – explicit efforts to systematically identify, monitor, and analyze long-term trends and issues that are likely to affect the organization’s future environment and to examine the implications those trends and issues may hold for alternative organization goals and possible organization actions. • Issue Analysis – an identification and analysis of strategic issues—problems or concerns of critical importance to the organization and its customers, other stakeholders, and expectation groups. Louisiana Office of Planning and Budget

APPLYING THE STRATEGIC PLANNING PROCESS SITUATION INVENTORY AN ASSESSMENT OF AN ORGANIZATION'S POSITION, PERFORMANCE, PROBLEMS, AND POTENTIAL Position Customers Performance Services Problems Authority Capacity Potential Strengths Track Record Opportunities Weaknesses Louisiana Office of Planning and Budget

APPLYING THE STRATEGIC PLANNING PROCESS CONDUCTING A SITUATION INVENTORY • A situation inventory asks: • Who are the organization’s customers (internal and external), other stakeholders, and expectation groups? What are their needs and expectations? • Stakeholders • Customers • Compliers • Expectation Groups • Where has the organization been? • What is the track record? • What has changed? Louisiana Office of Planning and Budget

APPLYING THE STRATEGIC PLANNING PROCESS CONDUCTING A SITUATION INVENTORY • Where is the organization now? • What are the organization’s current programs and activities? Under what authority does the organization operate them? • Does the existing program structure make sense? If not, what changes would benefit both the organization and its customers? • What is going on in programs and activities? How do processes work? What is being done well? What is being done poorly? Are performance standards being met? • What is the public perception of current programs and activities? • What benchmarks compare the quality and cost of the services, programs, and activities? • Do current programs support one another? Are any in conflict? Do they support or coordinate with programs in other agencies? Do any conflict, duplicate or overlap? • Are planning, budgeting, and accountability integrated? Louisiana Office of Planning and Budget

APPLYING THE STRATEGIC PLANNING PROCESS CONDUCTING A SITUATION INVENTORY • POINTER: When you break down a policy, program, or process into its component parts, you use "systems logic" to develop a model of how it should work. • INPUTOUTPUT & OUTCOME PROCESS QUALITY EFFICIENCY Use metrics to gauge and assess your process, diagnose problems, and formulate solutions. Louisiana Office of Planning and Budget

APPLYING THE STRATEGIC PLANNING PROCESS CONDUCTING A SITUATION INVENTORY • What opportunities for positive change exist? What remains to be accomplished? • How are the needs and expectations of customers changing? • Has the organization planned to accommodate that change? • What are the organization’s strengths and weaknesses? • What advantages does the organization possess? • What barriers or constraints does the organization face? • What is the organization’s capacity to act? • How can the organization build on its strengths and overcome its weaknesses? Louisiana Office of Planning and Budget

APPLYING THE STRATEGIC PLANNING PROCESS CONDUCTING A SITUATION INVENTORY • INFORMATION SOURCES: • Policy development files • Internal databases • Annual reports • Budget requests • Undersecretary management/program evaluation reports (Act 160 reports) • Program evaluations • Financial and performance audits • Quality assessment surveys • Employees • Customers Louisiana Office of Planning and Budget

APPLYING THE STRATEGIC PLANNING PROCESS CONDUCTING A SITUATION INVENTORY REMINDER: The strategic plan must include a brief statement identifying the principal clients and users of each program and the specific service or benefit derived by such persons. Remember to identify internal and external customers during the situation inventory. Relate these customers to the services or benefits they receive. REMINDER: The information gathered as part of the situation inventory will be used throughout the planning process. It will help define mission, express philosophy, set goals, formulate objectives, build strategies, and select performance indicators. REMINDER: Keep records. Not only will this facilitate and enhance the rest of the planning process, but you will be prepared for performance audit. Louisiana Office of Planning and Budget

APPLYING THE STRATEGIC PLANNING PROCESS ENVIRONMENTAL SCAN AN ANALYSIS OF KEY EXTERNAL ELEMENTS OR FORCES THAT INFLUENCE THE ENVIRONMENT IN WHICH AN ORGANIZATION FUNCTIONS Many external factors influence an organization and its mission. Tradition Public Opinion Government Demographics Political Climate Technology Physical Environment Economy Marketplace Use environmental scanning to keep tabs on external factors. Louisiana Office of Planning and Budget

APPLYING THE STRATEGIC PLANNING PROCESS CONDUCTING AN ENVIRONMENTAL SCAN • An environmental scan examines the current environment and, combined with foresight methodologies, anticipates changes in the future environment. An environmental scan asks: What is the current environment? • What external environmental elements currently affect the organization? How? Do they help or impede the organization? Which are most critical? • What major current issues or problems affect the organization? Are these local, statewide, regional, national, or global in scope? Why are they of such importance? • What current events, issues, or trends have captured the attention of the public? How do these affect the organization? Louisiana Office of Planning and Budget

APPLYING THE STRATEGIC PLANNING PROCESS CONDUCTING AN ENVIRONMENTAL SCAN How may the environment differ in the future? • What are the biggest external threats and opportunities? • What forces that might alter key elements of the environment are at work? • What are the most likely scenarios for the future? • Are trends likely to continue or are changes forecast? • What major new issues are anticipated? • What implications do these future forces and environmental changes (trends and issues) hold for the organization? Which are most critical? Louisiana Office of Planning and Budget

APPLYING THE STRATEGIC PLANNING PROCESS CONDUCTING AN ENVIRONMENTAL SCAN • INFORMATION SOURCES: • You could try • But we recommend Louisiana Office of Planning and Budget

APPLYING THE STRATEGIC PLANNING PROCESS CONDUCTING AN ENVIRONMENTAL SCAN • INFORMATION SOURCES: • Federal and state government statistical reports and databases • Federal, state, and local government legislation, regulations, executive orders or actions, budgets, policy statements, and special studies • Court decisions and actions • National and regional professional organizations or associations • Interest or advocacy groups • Media • University and college resource centers • Agency advisory and governing boards Louisiana Office of Planning and Budget

APPLYING THE STRATEGIC PLANNING PROCESS CONDUCTING AN ENVIRONMENTAL SCAN REMINDER: The strategic plan must include an identification of potential external factors that are beyond the control of the organization and that could significantly affect the achievement of its goals and objectives. REMINDER: The information gathered as part of the situation inventory will be used throughout the planning process. It will help define mission, express philosophy, set goals, formulate objectives, build strategies, and select performance indicators. REMINDER: Keep records. Not only will this facilitate and enhance the rest of the planning process, but you will be prepared for performance audit. Louisiana Office of Planning and Budget

APPLYING THE STRATEGIC PLANNING PROCESS FORESIGHT (OR ANTICIPATION) • Foresight methods generally fall into four categories: • Issue identification - involves methods to identify policy issues that are likely to occur in the future. • Goal setting - generally used to develop directions or chart the future course for an organization. • Trends analysis - often used in demographic, economic, technological, and social forecasting, to analyze trends and attempt to project future developments. • Alternative futures - a method that uses scenario building to investigate possible or probably future paths. Louisiana Office of Planning and Budget

APPLYING THE STRATEGIC PLANNING PROCESS ANALYZING ISSUES • An issue is a matter in dispute—a point of controversy. Before an issue can be addressed, it must be analyzed. This involves: • Define the issue or problem; determine its parameters. • Understand who is affected and how they are affected. • Determine how serious and immediate the issue or problem is. • Project future trends for the issue or problem. • Determine the underlying causes of the issue; identify and verify the key cause(s). • Assign a priority relative to other concerns. Louisiana Office of Planning and Budget

APPLYING THE STRATEGIC PLANNING PROCESS STRATEGIC ISSUES • ISSUES OF CRITICAL IMPORTANCE TO THE ORGANIZATION AS A WHOLE • Strategic issues are high priority issues that merit special attention. These might be described as the “make you or break you” kinds of issues. Strategic issues: • may arise as a result of an organization’s internal assessment; • may be generated by external forces; • may lead to strategic planning goals; • may lead to management improvement efforts or budget modifications; • may be addressed in the short-term or long-term; • may emerge in an unexpected manner and become important after the strategic plan has been completed and approved. Louisiana Office of Planning and Budget

APPLYING THE STRATEGIC PLANNING PROCESS Where do we want to be? • GOALS AND OBJECTIVES • Goals establish direction and destination. They describe the general end results toward which effort is directed. • Objectives are specific, measurable targets for accomplishment. • Do not attempt to set goals and formulate objectives until you have completed the “Where are we now?” portion of the strategic planning process. Use the results of your internal/external assessment to support the setting of goals and formulation of objectives. Louisiana Office of Planning and Budget

APPLYING THE STRATEGIC PLANNING PROCESS GOALS • THE GENERAL END RESULT TOWARD WHICH EFFORT IS DIRECTED • Goals are a description of the desired future that is possible. • Goals chart direction and provide a framework for more detailed levels of planning. • Goals describe the “to be” state. Louisiana Office of Planning and Budget

APPLYING THE STRATEGIC PLANNING PROCESS Why set goals? • "Our plans miscarry because we have no aim. When a man does not know what harbor he is making for, no wind is the right wind." • - Seneca (4 B. C. - 65 A. D.) • "If you don't know where you are going, every road will get you nowhere." • - Henry Kissinger • "If you don't know where you're going, be careful. You might get there." • - Yogi Berra • If you don't know where you are going, any path is as good as another...but you won't realize if you're lost, you won't know what time you'll get there, you might unknowingly be going in circles, and other won't understand how they can help. And, since you could pass right by without knowing it, you won't get the satisfaction of having arrived. • - Jim Lundy, Lead, Follow, or Get Out of the Way Louisiana Office of Planning and Budget

APPLYING THE STRATEGIC PLANNING PROCESS CRITERIA FOR GOALS • Harmonize with the organization’s vision, mission, and philosophy as well as other goals. • Are within the organization’s authority. • Chart a clear course for the organization but do not determine specific ways to get there. • Reflect the primary concerns and strategic direction for the organization—not a comprehensive listing of everything an organization does. • Reflect the results of an internal/external assessment and are developed in response to strategic or critical issues. • Encompass a relatively long period. • Tend to remain essentially unchanged until a shift in the environment under which they were created occurs. • Are challenging but realistic and achievable. • Have some degree of measurability. Louisiana Office of Planning and Budget

APPLYING THE STRATEGIC PLANNING PROCESS WRITING GOALS • POORLY WRITTEN GOAL STATEMENTS • GOAL: To continue to provide services to customers. • (What’s wrong? Not challenging.) • GOAL: To conduct one seminar in every institution each year. • (What’s wrong? Unclear purpose; may be more appropriate as part of an objective or strategy.) Try Again! Try Again! Louisiana Office of Planning and Budget

APPLYING THE STRATEGIC PLANNING PROCESS WRITING GOALS • WELL WRITTEN GOAL STATEMENT • GOAL: To create a clean, healthy, and attractive environment, minimizing pollution, litter, and physical deterioration while instilling civic pride. • (What's right? Clear direction and destination are identified. A strong framework for further planning is built. The goal provides clear pointers to areas in which specific objectives and effective strategies can be developed--for example, improvements related to "clean, healthy, and attractive environment," and reductions in pollution, litter, and physical deterioration.) Well Done! Louisiana Office of Planning and Budget

APPLYING THE STRATEGIC PLANNING PROCESS WRITING GOALS • WELL WRITTEN GOAL STATEMENT • GOAL: To assure clean and sufficient statewide water supplies through conservation, development, and pollution control in order to protect public health and preserve beneficial water uses. • (What's right? Again, clear direction and destination are identified and a strong framework for further planning is built. The goal can lead to the formulation of specific objectives related to water quality, supply, and usage as well as the development of strategies related to conservation, development, and pollution control.) Well Done! Louisiana Office of Planning and Budget

APPLYING THE STRATEGIC PLANNING PROCESS WRITING GOALS • WELL WRITTEN GOAL STATEMENT • GOAL: To promote traffic safety, the preservation of the peace, and the prevention and detection of crime. • (What's right? Again, clear direction and destination are identified and a strong framework for further planning is built. The goal can lead to the formulation of specific objectives and strategies related to traffic safety, law enforcement, crime prevention and investigation.) Well Done! Louisiana Office of Planning and Budget

APPLYING THE STRATEGIC PLANNING PROCESS TIPS FOR GOAL SETTING Hold your goal-setting session away from the office. Use the information gathered in your internal/external assessment. Verify that it is within your authority to set goals in particular areas. The number of goals will vary among organizations. However, keep the number of goals manageable. Louisiana Office of Planning and Budget

APPLYING THE STRATEGIC PLANNING PROCESS TIPS FOR GOAL SETTING • Goals may be internal or external. • Internal goals reflect improvements to process and productivity; they are concerned with the way things are done. • External goals usually relate to major components of the mission or address strategic issues; they are concerned with the things to be done. • Some strategic plans may have no internal goals; these plans may address internal or process issues at a strategy level. • Other plans may contain several internal goals emphasizing an overriding need to address process changes. • However, strategic plans should not focus exclusively on internal goals. Louisiana Office of Planning and Budget

APPLYING THE STRATEGIC PLANNING PROCESS TIPS FOR GOAL SETTING • There is a natural tendency to focus on internal issues, such as pay and civil service job classification plans, communications, technology, equipment, travel, training, management policies, and organizational image. These are troubling issues for many organizations, particularly since available resources generally have not kept pace with the demand for services. However, many of these issues fall back on management by input." "Managing for Results" shifts the focus to outcomes rather than inputs. • Internal goals should point to an end result that positions an organization to provide better services or outcomes. Many state agencies experience high employee turnover rates because of low pay scales; others cannot provide the level of employee training that is desired. A goal to improve employee pay and training emphasizes inputs; it does not point to an improvement in services or outcomes. In fact, this poorly written goal elevates a strategy to goal level. Improving employee pay and training is a means to an end. That end result is a stable, skilled, and equitably compensated workforce. Having such a workforce would have a positive impact on the services provided by the organization. Therefore, a better way to address this issue would be a goal to develop a stable, skilled, and equitably compensated workforce. Louisiana Office of Planning and Budget

APPLYING THE STRATEGIC PLANNING PROCESS TIPS FOR GOAL SETTING To the extent possible, goals should be placed in a priority sequence. An internal/external assessment reveals many issues that could be the focus of management’s attention and organization resources. The goal-setting process must surface the most vital and establish priorities among them. Louisiana Office of Planning and Budget

APPLYING THE STRATEGIC PLANNING PROCESS OBJECTIVE • A SPECIFIC AND MEASURABLE TARGET FOR ACCOMPLISHMENT • Objectives describe specific results that a program seeks to achieve and set targets for performance. • Objectives are measurable, time-based statements of intent. • Objectives represent milestones, interim steps, or intermediate achievements toward realizing vision, mission, and goals. • Objectives relate to achievement, not means. Louisiana Office of Planning and Budget

STRATEGIC PLANNING