STRATEGIC PLANNING

1. STRATEGIC PLANNING For the BOARD FOR CERTIFICATION IN PEDORTHICS March 5 - 6, 1998 Smith, Bucklin & Associates, Inc.

2. Two Day Strategic Planning Meeting for BCP Board March 5 9:00 - 10:00 Review of survey results 10:30 - 11:00 Review strategic planning process 11:00 - 12:00 Internal - external “SWOT” analysis; identification of “strategic issues” 12:00 - 1:00 Working lunch “visioning the organization” 1:00 - 2:00 Developing a “mission statement” 2:00 - 2:45 What are the “principles” of the organization 2:45 - 3:45 Identification and definition of “goals” 3:45 - 5:00 Outline of strategic objectives Smith, Bucklin & Associates, Inc.

3. Two Day Strategic Planning Meeting for BCP Board March 6 9:00 - 12:00 Tactics -- Essential components of a business plan (prioritization & cost analysis) 12:00 - 1:00 Working lunch -- What would need to be done to implement such a plan (returning to SWOT analysis) 1:00 - 4:00 Scenario One -- Adapt current structure Scenario Two -- Create new entity Scenario Three -- Merge with another organization Scenario Four -- Strategic alliance with another organization What would be required; strengths and weaknesses 4:00 - 5:00 Developing a game plan - What are priority action ideas - “What if” scenarios Smith, Bucklin & Associates, Inc.

4. Formulation of Strategy is Done • Not only by looking inward at what one • desires • but also by • Looking outside to see what others are • doing which affects your future Smith, Bucklin & Associates, Inc.

5. Through a Strategic Plan, an Organization says to the World: • This is who we are and • This is what we want to be and • Here is how we plan to fulfill our dream - • our mission Smith, Bucklin & Associates, Inc.

6. Analysis of the Environment (S.W.O.T.) • S trengths • W eaknesses • O pportunities • T hreats Smith, Bucklin & Associates, Inc.

7. “Strategic” Issues • Those issues which will have • Long-term implications for the association • and • Are most central to the organization’s • mission Smith, Bucklin & Associates, Inc.

8. External Environmental FactorsThreats and/or Opportunities? • Technological / Scientific • Legislative / Regulatory • Economic • Sociologic • Professional / Educational • Other Smith, Bucklin & Associates, Inc.

9. Internal Environmental FactorsStrengths and/or Weaknesses? • Organizational Structure • Organizational Culture • Organizational Resources • (Human & Fiscal) • Staff and Management Philosophies Smith, Bucklin & Associates, Inc.

10. Strategic Objectives Strategic objectives identify the “visions” of the organization or the major accomplishments that the organization seeks to achieve over a period of time (e.g., five years). Smith, Bucklin & Associates, Inc.

11. Visioning • Requires letting go of preconceived notions • about the organization • Allows creative and strategic thinking about • what the future could be like for the • organization • Exercise: Describe the newspaper headlines • which would appear about the association • five, ten, or twenty years into the future Smith, Bucklin & Associates, Inc.

12. A Strategic Plan (1) • When completed, a Strategic Plan should contain: • Mission Statement: A succinct statement which sets fourth • the organization’s purpose & philosophy. Although brief, • the mission statement will specify the fundamental reason(s) • for the organization’s existence; establish the scope of the • organization, and identify its unique characteristics. • Goals: A limited number of statements which translate the • association’s mission into major policy directions. • Principles: Statements which identify the philosophical • guidelines for all of the organization’s activities. Smith, Bucklin & Associates, Inc.

13. A Strategic Plan (2) • Strategic Objectives: Statements which identify the • “visions” of the organization or the major • accomplishments that the organization seeks to achieve • over a specified period of time. • In addition, the Strategic Plan should be accompanied • by a business or operational plan which should specify • how the Strategic Plan will be accomplished, identifying • time lines, resource requirements, anticipated results, • responsible parties, and evaluation measures. Smith, Bucklin & Associates, Inc.

14. Critical Components of Strategic Planning • Environmental Analysis • - External: Analysis of Trends • - Internal: Organizational Structure / Culture • - Constituents: Stakeholders, Challengers / • Competitors / Allies • - S.W.O.T.Analysis (Strengths, Weaknesses, • Opportunities, Threats) • Think Strategically - Go beyond the boundaries • Involvement, Support and Commitment of •  Leadership  Staff  Other Stakeholders Smith, Bucklin & Associates, Inc.

15. Mission Statement • The Concept of a Mission: • Specifies the fundamental reason(s) for the • organization’s existence • Identifies the organization’s unique • characteristics • Provides overall direction for the organization • acts as foundation for the development of • general and specific objectives as well as • program ideas Smith, Bucklin & Associates, Inc.

16. Key Dimensions of a Mission Statement • General versus specific • Reflective of distinctive competencies and • characteristics • Establishes the proper scope for • - Constituents • - Other “publics” • Three Key Inputs: • - External inputs • - Constituent need analysis inputs • - Internal inputs Smith, Bucklin & Associates, Inc.

17. Mission Statement A Mission Statement Should be Succinct and Set Forth the Organization’s Purpose and Philosophy. Smith, Bucklin & Associates, Inc.

18. Principles Principles Identify the Philosophical Guidelines for the Organization’s Activities. Smith, Bucklin & Associates, Inc.

19. Principles • Concept of Principles: • Identifies the values held by the constituents in • implementing the organization’s activities • Establishes the philosophical guidelines upon which • all initiatives of the organization will be based • Provides the basis for assessing the organization’s • strategic objectives and operational plans • Key Dimensions in Drafting Principles: • Captures the essence of the organization’s philosophy • Sensitive to constituent needs and expectations Smith, Bucklin & Associates, Inc.

20. Goals The Goals Specify How the General Policy Directions of the Organization’s Mission Will be Carried Out. Smith, Bucklin & Associates, Inc.

21. Goals • Concept of a Goal: • Translates the organization’s mission into • major policy directions • Provides clarification of the mission statement • Provides the best basis for the development • of strategic objectives and operational plans • Provides a basis for assessing the major • priorities of the organization Smith, Bucklin & Associates, Inc.

22. Key Dimensions of Goals • Clarifies the overriding purpose(s) of the • organization • Number is limited and focused on the • unique characteristics of the organization • Broad statements toward which the • organization will direct its activities to • fulfill its mission Smith, Bucklin & Associates, Inc.

23. Strategic Objectives • Concept of a Strategic Objective: • Translates the organization’s goals into • specific policy directions • Provides clarification of the organization’s • goals • Provides a basis for the development of • detailed operational plans • Provides a basis for assessing the • accomplishments of the organization Smith, Bucklin & Associates, Inc.

24. Key Dimensions of Strategic Objectives • Supports the mission and goals of the organization • Responds to one or more of the planning issues • Realistic with respect to the external • environment as it exists today and as it is likely • to change over the next five years • Realistic with respect to the internal environment • and the resources of the organization • Internally consistent; i.e., no objective is • inconsistent with another objective Smith, Bucklin & Associates, Inc.

25. Business Plan • An organization’s strategic plan should be • accompanied by an action or business plan. • Concept of a Business Plan: • Details a plan of action to accomplish the • organization’s strategic plan • Defines the roles and responsibilities of •  Staff  Board Members  Other Volunteers • Identifies resource requirements • Identifies time lines for actions to be accomplished • Projects results • Provides evaluation measures Smith, Bucklin & Associates, Inc.

26. Key Dimensions of a Business Plan • Specific versus general • Key Inputs: • - Leadership / board • - Staff • - Volunteers • - Other constituents • Responds to each of the strategic objectives • Realistic with respect to current and • potential resources (human and fiscal) Smith, Bucklin & Associates, Inc.

27. Why Do Strategic Plans Fail? • Devoted to fixing current problems rather than • addressing the future of the organization • Lacks the support and commitment of the • leadership and/or the constituents • No one responsible for implementation or evaluation • Operational plan is unrealistic, without focus or • direction • Does not inspire leadership or constituency to move • the organization forward Smith, Bucklin & Associates, Inc.

28. The Essence of Strategic Planning Repositioning the Organization for a Better Future. Smith, Bucklin & Associates, Inc.

29. Repositioning an Organization for a Better Future Requires decisions on - Major structural changes - Major programmatic changes All of which are highly linked to - Financial and human resources Smith, Bucklin & Associates, Inc.

30. Strategic Planning Constantly Asks: • “What Shall We Do?” • “How Shall We Decide?” • “Where Shall We Put Our Resources?” Smith, Bucklin & Associates, Inc.

31. Strategic Planning Strategic Planning Takes Into Account the Concept that Effectiveness is More Important than Efficiency: That is, it is More Important to Do the Right Things than to Do Things Right. Smith, Bucklin & Associates, Inc.

32. Critical Components of Strategic Planning • Contains • - Clear, succinct mission statement • - Limited number of goals • - Philosophical guidelines • - Strategic objectives - identifies the “vision” • or accomplishments over 3 - 5 years • Followed by a realistic business or operational • plan with responsible parties committed to • moving forward Smith, Bucklin & Associates, Inc.

33. Traditional vs. Strategic Thinking and Planning TRADITIONAL STRATEGIC -emphasis on stability -dynamic and change oriented -tradition oriented -mission oriented -blueprint for future decisions -vision of future & guides today’s decisions -reactive -proactive -interaction in face of ambiguity -action oriented even in face of ambiguity -internal focus -external focus -relies on tried & tested -emphasizes innovation & creativity -lock step process -continuous, ongoing process -facts and quantitative emphasized -options and qualitative emphasized -efficiency oriented -effectiveness oriented Smith, Bucklin & Associates, Inc.

34. Strategic vs. Operational Planning Strategic PlanningOperation Planning A tool to guide decision Describes a set of steps for making by management on achieving a particular issues fundamental to the result organization - Who will do it - When - Whit what resources - What are the specific measurable goals to be achieved STRATEGY = WHAT OPERATION = HOW Smith, Bucklin & Associates, Inc.

35. Strategic Planning • Does NOT provide a detailed chronology • of action, rather it: • Broadly maps the activities the organization • should pursue to maintain its desired • character and identity Smith, Bucklin & Associates, Inc.

36. Constituents(Threats and/or Opportunities) • Members • Staff • Other Stakeholders • Competitors • Challengers • Allies Smith, Bucklin & Associates, Inc.

37. Ultimately Need to Make Choices • Think and act strategically • Focus the organization • Listen to constituents • Empower staff & committees • Follow your gut Smith, Bucklin & Associates, Inc.

38. Michael PorterHarvard Business School “If you try to be flexible and be ready for everything, you could end up raising your costs and not be good at anything.” Smith, Bucklin & Associates, Inc.

39. Strategic Planning Retreat Rules  Listen actively  Stay focused  Solve Problems rather than place blame  Contribute only new information to the discussion  Hitch-hike on to others’ ideas  Respect differences of opinion  Say what needs to be said: There are no sacred cows  Avoid cheap shots  Conduct only one discussion at a time  Think strategically Smith, Bucklin & Associates, Inc.