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Learn to define, analyze, and develop strategic plans for educational institutions. Understand strategic management, planning processes, and the importance of shared vision. Explore elements of strategic management and create action plans for achieving goals.
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CONTENTS Learning outcomes: • Able to define strategic planning • Able to analyse strategic planning in higher learning institution • Able to develop a strategic plan for a working department
WHAT IS STRATEGY? • Strategic … “choosing how best to respond to circumstances of a dynamic and sometimes hostile environment” • “Being strategic requires recognizing the choices and committing to one set of responses instead of another”(Allison & Kaye, 1997)
WHAT IS STRATEGIC MANAGEMENT? • “Strategic management is art and science of formulating, implementing, and evaluating cross-functional decisions that enable an organisations to achieve its objectives” (David, 2001) • “Strategic management is the process of formulation the strategic plan and implementation of the plan. It involves strategic analysis, strategic choice and strategic implementation” (Fidler, 2002)
STRATEGIC MANAGEMENT A continuous process of • Identifying vision, mission, objective • Developing appropriate strategies • Implementing strategies • Monitoring implementation to achieve objective (Wright, P. , Pringle, C. & Kroll, M. 1992)
STRATEGIC PLANNING • Strategic plan is the backbone to management. (EdarisAbbu Bakar, 2004)
WHAT IS STRATEGIC PLANNING? • A process of determining organization’s long-term goals and identifying the best approach for achieving those goals. • It is the overall planning that facilitates the good management of a process • It provides you with the big picture of what you are doing and where you are going. • It gives clarity of what you actually want to achieve and how to achieve it.
answers the questions: • Who are we? • What capacity do we have and can we do? • What problems are we addressing? • What difference do we want to make? • Which critical issues must we respond to? • Where should we allocate our resources? Then, • What should our immediate objective be? • How should organize ourselves to achieve it? • Who will do what and when?
STRATEGIC PLAN • A written document describing where an institution wants to be in the future (usually three to five years), and the broad areas of activity that it will undertake to achieve this vision.
Strategic Planning A Who and What are we? What do we do now? Why? B What do we want to be and do in the future? Why? C How do we get there?
...STRATEGIC PLANNING To ensure success, strategic planning • Requires involvement of all staff to ensure shared vision, commitment and sense of belonging • Needs to be developed as a culture of an organization and practiced by all members of the organization.
VISI » To become a university of international repute.MISI » To make meaningful contribution towards wealth creation, nation building and universal human advancement through the exploration anf dissemination of knowledge Goals of UPM» Goal 1Enhancing the quality and competitiveness of graduates » Goal 2Creating value through a strong and sustainable RDCE » Goal 3Boosting industry and community Networking Servises» Goal 4Strengthening UPM as centre of excellence in agriculture» Goal 5Enhancing the quality of governance
A PRACTICAL MODEL FOR STRATEGIC MANAGEMENT INITIAL VISION INSTITUTIONAL VALUES & CULTURE EXTERNAL ENVIRONMENT ANALYSIS INTERNAL ENVIRONMENT ANALYSIS CRITICAL SUCCESS FACTORS INSTITUTIONAL VISION MISSION STRATEGIC OBJECTIVES SWOT ANALYSIS SPECIFIC OBJECTIVES/ TACTICAL PLAN/KPI ACTION PLAN/ OPERATIONAL PLAN EVALUATION
VISION • A concrete word of what the organization intends ultimately to become by some defined future time, so as to provide a basis for formulating strategies and objectives
WHY AN INSTITUTION NEEDS A VISION? • As future direction for the institution • Develop confidence to manage situation or change • Encourage members of institution to work towards excellence • Develop strength and competitiveness. • Motivates change • Uniting all staff towards a common goal or purpose
MISSION • The core purpose of our organization – its express why the organization exists!
MISSION • How do we get there • How to achieve the vision
ACTION PLAN • Action plan or operation plan (program and activities) is the detail steps and activities undertaken or implemented to achieve the strategic objectives
EVALUATION • Each activity implemented in the action plan needs to be evaluated to asses its performance or contribution towards the specific objectives • Positive outcome contributes to specific objectives and realization of vision • Each action undertaken within the action plan contributes towards the realization of vision • Corrective and contingency actions needs to be taken when performance is not in line with targeted performance.
BENEFITS • Systematic instrument to understand the pressure and changes • Promotes visionary leadership • Makes management more proactive • Promotes efficient management of time, management of pressure and conflict • Prepares organization to “managing change” systematically within the internal and external environment
STRATEGY • Is the determination of the basic long-term goals and objectives of an enterprise and adoption of courses of action and allocation of resources for carrying out these goals. Continued
ANALYSIS OF INTERNAL AND EXTERNAL ENVIRONMENTS – SELECTING STRATEGIC OBJECTIVES
ANALYSIS OF INTERNAL & EXTERNAL ENVIRONMENT Why SWOT analysis is widely known • The technique is simple and readily available to managers • The SWOT model is simple, flexible and appropriate • SWOT model structure is accommodative to qualitative and quantitative information Piercy, N. and Giles, W. (1989). ‘Making SWOT analysis work’, Marketing Intelligence and Planning. Vol 7(5/6):5-7
ANALYSIS OF INTERNAL AND EXTERNAL ENVORONMENT SWOT analysis • Strengths (internal organizational factor) • Weaknesses (internal organizational factor) • Opportunities (external organizational factor) • Threats (Challenges) (external organizational factor) • Analysis requires all Strengths, Weaknesses, Opportunities and Threats be listed in a matrix • Matrix is analyzed to generate and select strategies for implementation.
Strengths and Weaknesses • Strength: Ability or potential which can be used by the institution to achieve its objectives (expertise of teachers, adequate physical infrastructure and facilities) • Weakness: impediment, deficit, inability …which will impede the achievement of objective
Opportunities and Threats • Opportunities are situations which are advantageous to the institutions business (increase demand for education service) • Threats are situations which potentially harm the institutions business (strong competition from other institutions)
Listing procedures to identify Strengths, Weaknesses, Opportunities and Threats • Brainstorming sessions • Questionnaires • Observations • Environmental scanning • Ishikawa ‘Fish Bone’ Diagram
SWOT FACTORS IN THE EXTERNAL ENVIRONMENT OF ORGANIZATION A) THAT CAN HELP TO ACHIVE ORGANIZATIONAL OBJECTIVE – OPPURTUNITIES B) THAT PREVENT THE ACHIEVEMENT OF ORGANIZATIONAL OBJEKTIVE - THREATS FACTORS IN THE INTERNAL ENVIRONMENT OF ORGANIZATION A) THAT CAN HELP TO ACHIVE ORGANIZATIONAL OBJECTIVE – STRENGTH B) THAT PREVENT THE ACHIEVEMENT OF ORGANIZATIONAL OBJEKTIVE - WEAKNESS ORGANISATIONAL OBJECTIVE
Guide to Internal Organizational Factor (dimension) Analysis Factors • Capital and financial position • Budget • Human resource • Management • Institutional culture
Guide to Internal Organizational Factor (dimension) Analysis • Staff ability or competency • Leadership and management style • Infrastructure and facilities available • Existing programs • Organizational culture • Interpersonal communication • Staff attitude and motivation • Each item, (strength or weakness) must be listed and be ranked (allocated a score) based on consensual evaluation.
Guide to External Organizational Factor (dimension) Analysis • Political environment • Economic environment • Technological level • Government policy • Community believe system • Community culture • Societal expectation • Social environment • Market condition • Each item, (opportunity or threat) must be listed and be ranked (allocated a score) based on consensual evaluation.
GENERATING STRATEGIES • Strategy: A systematic framework of activities or programs designed to achieve the strategic objectives • SWOT analysis is a process of generating strategies by matching opportunities and threats in the external environment with competencies within the internal environment (strengths and weaknesses) • SWOT analysis generates four types of strategies: SO, WO, ST and WT