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Why is Strategic Planning so Important?

Strategic Planning. -Ed Mahoney, MSU. Why is Strategic Planning so Important?. 1. Limited and increasingly expensive resources 2. Real opportunities and threats? 3. Opportunity costs 4. Diversity of competition 5. Increasing Expectations

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Why is Strategic Planning so Important?

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  1. Strategic Planning -Ed Mahoney, MSU Why is Strategic Planning so Important? 1. Limited and increasingly expensive resources 2. Real opportunities and threats? 3. Opportunity costs 4. Diversity of competition 5. Increasing Expectations 6. Responsibility and accountability 7. Internal and External Support

  2. Strategic Planning Ed Mahoney, MSU 2. Suggest or are linked to accomplishment benefits 3. Suggest or identify publics, customers or partners 4. Specific and measurable: guidance, evaluation 5. Feasible - Financial Technology, Staff, Marketing, Management 6. Give rise to alternatives: products, services... 7. Acceptable 8. Understandable

  3. Strategic Planning Ed Mahoney, MSU Strategy and Strategic Marketing Plans Strategy = an integrated, feasible and manageable sequence of internally consistent and externally relevant resource allocation decisions. The strategy establishes a framework/direction in which it pursues its objectives. A plan is the explicit documentation, description and communication of vision, mission, and objectives.

  4. Strategic Planning Ed Mahoney, MSU Strategic Management The continuous process of managing an organization and its different functions such that it is consistent with mission and achieves its objectives. 1. Stewardship of the vision 2. Hierarchy of objectives 3. Alignment of organizational structures, policies and functional strategies and tactics with mission and strategic objectives 4. Strategic investment 5. Performance measurement

  5. Strategic Planning Ed Mahoney, MSU Strategic Planning Process 1. Environmental Scanning 2. Internal Analysis and Audits 3. S-W-0-T 4. Mission 5. Objectives 6. Strategies 7. Alignment - FIT 8. Implementation 9. Performance Monitoring

  6. Strategic Planning Mission Strategic Objectives Example: Image Marketing Service Relationships Portfolio Pricing Communication Display Objectives Newsletter Objectives Brochure Objectives Ed Mahoney, MSU

  7. Strategic Planning Board & Director Ed Mahoney, MSU Mission & Objectives • Portfolio • Facilities • Services • Events • Programs • Products Financial Mgmt. Human Resource Mgmt. NR/Facility Mgmt. Visitor Mgmt. Partnerships Internal External Marketing Evaluation & Control

  8. Strategic Planning -Ed Mahoney, MSU Opportunities Threats External Envir. Strategic Audit Control Vulnerability Internal Assessment Strengths Weaknesses Objectives & Strategies Management Marketing Implementation

  9. Strategic Planning Ed Mahoney, MSU Envir.Scanning Internal Analysis Opportunities Threats Strengths Weaknesses S.W.O.T Stewardship Mission Systems Alignment-Allocation External Environment Internal Environment Objectives External Environment Internal Environment Strategies Marketing, Finance Human Resources Monitoring Performance

  10. Strategic Planning Ed Mahoney, MSU Strategic Planning and Concept of Fit • Fit relates to the extent to which: • various organizational objectives • facilities, services and products • different function: marketing, maintenance, security • different activities comprising functions, e.g., marketing mix- • pricing, service quality, marketing communications • work together to: • accomplish mission and strategic objectives • create and deliver customer relevant values • enhance relationships with priority publics • enhance organizational image • build future capability

  11. Strategic Planning Functional Fit Environment Fit Strategic Fit Competency Fit Financial Fit Future Fit Marketing Mix Fit Portfolio Fit Market Fit Ed Mahoney, MSU

  12. Strategic Planning Ed Mahoney, MSU Concept of Future publics image products-services Financing Fund Raising Partnerships Product-Service Portfolio Marketing Public Relations Staffing Concept of Fit Concept of Management How products services, functions activities and partnerships fit How it will fund, organize, evaluate, recruit, motivate...

  13. Strategic Planning Skills Strategy Structure Shared Values Systems Style of Management Ed Mahoney, MSU Staff Seven-S Framework

  14. Strategic Planning -Ed Mahoney, MSU Economics Technology Organization Competition Volunteer Contributors Customers Partners Demographics Culture

  15. Strategic Planning -Ed Mahoney, MSU S-W-O -T Analysis W-O-T- S UP Strength - An attribute, skill or relationship that enhances an organization’s ability to achieve mission and enhance its future position. Weakness - An attribute, skill or relationship that reduces an organization’s ability to achieve mission and limits its future position. Opportunity - A change in the external environment that an organization can capitalize on to achieve mission and/or enhance its future capability. Threat - A change in external environment that inhibits/lessens an organizations ability to achieve mission and/or enhance its future capability.

  16. Strategic Planning -Ed Mahoney, MSU Environmental Scanning Analyzing [trends] in relevant environmental factors that will impact on an organizations ability to accomplish its purpose/mission, objectives, functional strategies, and position itself for future success. The external environment is exogenous to the organization. A primary purpose of environmental scanning: 1. Information to identify and assess opportunities and threats. 2. Determine organizational vulnerabilities. 3. Positioning strategies. 4. Market[publics and partnerships].

  17. Strategic Planning Ed Mahoney, MSU Strategic Audits Analysis of performance and whatever seriously affects it. The aim is to enhance relevance, quality and efficiency of activities, programs, products, services. 1. Environment Context that have potential impact on organizational mission, objectives, capabilities, products, relationships. 2. Performance 3. Future contribution, relevance, and feasibility 4. Forum for sharing perspectives and insights.

  18. Strategic Planning Organizational Capabilities High Medium Low Low Medium High Market/Activity Potential Ed Mahoney, MSU

  19. Strategic Planning Ed Mahoney, MSU Current and Future Performance of F-P-P-S Current Revenues Low High Low Future Growth Potential High

  20. Strategic Planning Ed Mahoney, MSU Strategic Importance Fund Raising Partnerships Traditional Programming Service Management Events Interpretation Marketing Organizational Competencies

  21. Strategic Planning Ed Mahoney, MSU Public Evaluated No Difference More Better Poorer Public Important Maintenance Programming Visitor Security Visitor Services Interpretation Accessibility Marketing

  22. Strategic Planning Ed Mahoney, MSU OPPORTUNITIES THREATS WEAKNSESS No technology capabilities New generation of folkies Finance Member Services STRENGTH Fundraising

  23. Strategic Planning Ed Mahoney, MSU Mission Statement A statement of purpose and vision. It should be future oriented, not a description of current purpose and activities. It should be developed in the context of the “expected future.” The mission statement should frame the objectives, functional strategies and tactics. The mission statement should present a challenge. An organization’s mission statement must communicate, and enlist support for its mission and vision.

  24. Strategic Planning Ed Mahoney, MSU 2005 Mission Priority publics Beliefs Portfolio Technologies To survive and be successful Desired Image 1998

  25. Strategic Planning Ed Mahoney, MSU Benefits of Strategic Objectives 1. Defines tangible results - strategic results 2. Enables assessment and marketing of effectiveness 3. Direction and accountability - not just hobbies and activities 4. Stress potential and recruits expertise. 5. Sets stakeholder expectations

  26. Strategic Planning -Ed Mahoney, MSU Objective: 1. Increase member awareness of organizational strategies and recruit their expertise and involvement in activities in support of those strategies OR? 2. Develop and distribute a newsletter. Compare and contrast two objectives

  27. Strategic Planning Strategic Audit Mission Objectives “Team” Culture New Processes & Approaches Strategic Management Re-Design Organization Values Capabilities Re-Configure Portfolio -Ed Mahoney, MSU

  28. Strategic Planning -Ed Mahoney, MSU Organizational Strategy(ies) 1. Creation and satisfactions of customers/members/client 2. Creation of important value(s) 3. Identification of market niches and important purposes 4. Development and application of processes and methods 5. Understand and avoid direct competition 6. Motivation of people and focus of resources toward important purposes.

  29. Strategic Planning Ed Mahoney, MSU Strategy An approach to acquiring and using resources within the context of the environment in order to achieve mission and objectives of an organization. Tactic Means to carry out strategy. Any strategy can be viewed as a tactic for a higher order strategy. Organizational Strategy Marketing Fund Raising Pricing Positioning

  30. Strategic Planning Ed Mahoney, MSU Creating and Sustaining Value Added Advantage Advantages Value Added Visitors & Publics Perceptions Program Facility Elements Management Law Enforcement Maintenance Interpretation Packaging Pricing Promotion Design • One price to all • Price discourages some • market segments • Only publicity • Not packaged with other • attractions Disadvantages Value Deleting

  31. Strategic Planning P P P F P P P F P P P F P S S S S F F F F -Ed Mahoney, MSU Portfolio Strategy 1998 PORTFOLIO 2005 Portfolio

  32. Strategic Planning Early Growth Introduction Late Growth Decline Maturity Ed Mahoney, MSU Life Cycles Facilities- Events -Products - Services - Organizations • Different • Customers • Management • Marketing Sales/Use/Support TIME

  33. Strategic Planning -Ed Mahoney, MSU Future Capacity & Potential Contribution to Mission and Objectives Decline Maturity Late Growth Early Intro. Potential Growth

  34. Strategic Planning Facilities-Services-Events Existing New- Related New-Unrelated -Ed Mahoney, MSU Existing New- Related New-Unrelated Market

  35. Strategic Planning Ed Mahoney, MSU Evaluate Potential Strategies Contribution to Objectives Desired Image Contribution to Mission Synergy Capabilites Alternative Strategies/Tactics

  36. Low High Organization’s Influence Over Factor -Ed Mahoney, MSU Strategic Planning Vulnerable Strategy Positive Impact of Factor on Mission - Objectives • Tactics • Neutralize • Minimize Opportunity Negative

  37. Strategic Planning Low High Organizational Control -Ed Mahoney, MSU High • Vulnerable • Monitor • Contingency Plans • Strategy • Monitor • Review of Strategies Strategic Importance Mission -Objectives Continuous Fine -Tuning Non-issues Low

  38. Strategic Planning -Ed Mahoney, MSU Strategic Audit 1. Environmental scan 2. Performance analysis/audits including portfolio of products, services, programs…. 3. S-W-O-T 4. Importance and vulnerability analyses 5. Strategic implications

  39. Strategic Planning -Ed Mahoney, MSU Strength Opportunity Threat Weakness Statement of Issue Strategic Implications

  40. 1997 2000 Strategic Plan I. Situation Assessment 1. Environment 2. Audits 3. SWOT II Mission Statement 1. Market-publics 2. F-P-P-Ss 3. Technologies 4. Survival/success 5 Image/identity 6. Philosophies III. Organizational Objectives • Internal External Demographic Life-styles Technology Competition Economic/Fiscal Legal Political Organization Opportunities Threats Strengths Weaknesses 2000

  41. Strategic Plan 1V. Functional strategies V. Monitoring and Evaluation Marketing Fund Raising & Financial Management Board-Staff Organization Conference

  42. CURRENT & EXPECTED ENVIRONMENT • STRATEGIC • PLANS • MISSION • OBJECTIVES • POSITIONING NEW F-P-P CONCEPTS NEW F-P-Ps OPPORTUNITIES • FIT WITH MISSION • DESIRED RESULT/OBJECTIVE • MARKETS • MARKET NEEDS/DESIRES • SIMILAR OFFERINGS • F-P-P ATTRIBUTES • RESOURCES REQUIRED • IMPACTS ON OTHER F-P-Ps • FINANCING ECONOMIC DEMOGRAPHICS LIFE STYLES TECHNOLOGY “COMPETITION” • MARKET/NEED CHANGES • CHANGES IN THE • ORGANIZATIONS • OBJECTIVES • CHANGES IN F-P-P LINES • OF OTHER ORGANIZATIONS • TECHNOLOGY • RECOMMENDATIONS FEASIBILITY OF PROPOSED CHANGES • RESOURCE CAPABILITY • MARKET FEASIBILITY • ECONOMIC FEASIBILITY • TECHNICAL FEASIBILITY • POLITICAL FEASIBILITY • LEGAL FEASIBILITY • PR FEASIBILITY F-P-P PORTFOLIO ANALYSIS • ESTABLISH CRITERIA • FIT WITH MISSION • ORGANIZATIONAL OBJECTIVES • MARKET SIZE & MARKET TRENDS • EXPECTATIONS/NEEDS • CUSTOMER/USER SATISFACTION • CAPABILITIES - RESOURCE, STAFF • COST-OPERATING AND CAPITAL • PARTNERSHIP POTENTIAL • SUBSTITUTES/COMPETITION F-P-P AND MARKETING DESCRIPTION & AUDITS F-P-PDESCRIPTION & AUDIT • CUSTOMERS/USERS • PERFORMANCE - OBJECTIVES • SATISFACTION -”QUALITY” • CURRENT CONDITION • NEEDED IMPROVEMENTS • OPERATING COSTS • SUBSTITUTES/COMPLEMENTS • STAFFING • TECHNOLOGY • REVENUES/CONTRIBUTIONS F-P-P LINE & CONSISTENT MARKETING STRATEGIES F-P-P LINE ASSESS EXISTING F-P-Ps AND NEW F-P-P CONCEPTS • NEW F-P-Ps • F-P-P MODIFICATIONS • CLOSINGS • F-P-P PARTNERSHIPS • PRIVATIZATION MARKETING AUDIT • TARGET MARKETS? • AWARENESS/ PERCEPTIONS • MARKETING OBJECTIVES • FEES/CHARGES • COMMUNICATIONS • PROMOTIONS • ACCESSIBILITY • EVALUATION(S) • SERVICE STRATEGY • COOPERATIVE MARKETING • POTENTIAL F-P-P • CHANGES • CLOSE • DOWN-SCALE • IMPROVEMENT • RE-POSITIONING • NEW F-P-Ps • PARTNERSHIP • PRIVATIZATION MARKETING STRATEGIES • RE-POSITIONING • DE-MARKETING • NEW F-P-P MARKETING • COOPERATIVE MARKETING

  43. Strategic Planning -Ed Mahoney, MSU P&R PORTFOLIO MANAGEMENT 1. NEW PROGRAMS, FACITIES, EVENTS, SERVICES, 2. ENHANCEMENT/CHANGE EXISITING PROGRAMS, FACILITIES, EVENTS, SERVICES 3. DROP/ABANDON EXISITING PROGRAMS, FACILITIES, EVENTS, SERVICES 4. PARTNER TO PROVIDE EXISITING OR POTENTIAL PROGRAMS, FACILITIES, EVENTS, SERVICES 5. CONTRACT OR SUBCONTRACT EXISITING OR POTENTIAL PRODUCTS, EVENTS, SERVICES, ACTIVITIES 6. PRIVATIZE

  44. Strategic Planning -Ed Mahoney, MSU Factors in Managing Portfolio 1. Revenues and cash flow 2. Risk 3. Sustainability and opportunities for growth 4. Synergy shared resources related knowledge and skill shared image additional market(s) greater perceived market value 5. Contribution vs. cost 6. Desired organizational image

  45. Strategic Planning -Ed Mahoney, MSU F-P-P-S PORTFOLIO DECISION CRITERIA 1. ORGANIZATIONAL MISSION & OBJECTIVES 2. SYNERGY WITH OTHER PRODUCTS, PROGRAMS, ACTIVITIES 3. CURRENT AND EXPECTED FUTURE CAPACITY TO DEVELOP, MANAGE, MARKET…. 4. RESOURCE GENERATION CAPACITY 5. SUSTAINABLE MARKET FEASIBILITY 6. CURRENTAND LIKELY FUTURE COMPETITION/SUBSTITUTES 7. “RETURN” ON INVESTMENT

  46. Strategic Planning -Ed Mahoney, MSU Weights and Evaluations Market Potential Revenues Amount -Flow Contribution Strategic to Mission Objectives Investment Required Competition Payback 9 8 7 6 Weights 654 1 + + + + - + - 2 + + + - - + - 3 + + + + - + + 4 - - + - - + + 5 - - - - - - - 6 - - + - - + + 7 - - - - - - - Facilities -Programs-Events- Services

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