Presentation on theme: "Corporate Governance Presentation by The Writing Wizards Sarah – Jane Cole Strategic Planning."— Presentation transcript:
Corporate Governance Presentation by The Writing Wizards Sarah – Jane Cole Strategic Planning
Introduction Service - Provision of a diverse range of mentoring and professional development services across business and human resources
Business development Development of quality management systems Compliance auditing to 9001, DESQA and DSQS standards (Focus Certification) Tender document development Grant submission Business and strategic plan development and facilitation Business mentoring Company and project presentation development Market research and analysis Grammatical and structural editing of business documents
Presentation Today Strategic Planning Purpose Provide a general understanding of the strategic planning process Provide a general understanding of the strategic planning process Step by step guide to strategic planning Step by step guide to strategic planning Establish and implement an appropriate planning process Establish and implement an appropriate planning process Development of an action plan Development of an action plan Discuss facilitating the involvement of relevant stakeholders in the process Discuss facilitating the involvement of relevant stakeholders in the process
Do organisations plan to fail in their business venture? How many organisations fails to appropriately plan?
Statistics No. of years after startup % failed firms Cumulative % of failed firms 13232 21749 31362 4769 5574
Definition Planning - Planning is anticipatory decision making. It is a process of deciding before action is required (Ackoff 1981)
Planning Enables a review of past efforts Analyse the current status of the organisation Provide for systematic development of future objectives and goals Coordinate an organisation’s efforts Sharpen company focus Establishes performance standards and measures progress Establishes a time frame for the achievement of outcomes
More definitions Business planning – Is a detailed study of the organisations activities, which highlights where the organisation has been, where it is now and where it might get to in the future and incorporates an action program to achieve these results. (Coulthard, Howard, Clark) Strategic Planning – the process by which the guiding members of an organisation envision its future and develop the necessary procedures and operations to achieve that future (Goodstein, Nolan and Pfeiffer)
Alice: Which way should I go? Cat:That depends on where you are going. Alice:I don’t know where I’m going! Cat:Then it doesn’t matter which way you go! Lewis Carroll 1872 Through the Looking-Glass Strategic Planning = Strategic Envisioning
Why Strategically Plan? Provides a shared: FrameworkUnderstanding Values and beliefs In which decisions can be made
Strategic Planning Model Three basic elements of any strategic planning model: Where are we going? What is the environment? How do we get there?
Strategic Planning Model
Planning to Plan Who should be involved How will we involve stakeholders How long will it take What information is needed in order to plan successfully
Commitment Requires commitment from the top Should not be treated as ‘secret squirrel business’ through which a strategic plan appears as an epiphany to a select few
Involvement of Stakeholders Funding body Clients Industry peers Consultants Level of interaction: Whole of process interaction Specialist commentary Review of outcomes
External The macro environment The industry environment The competitive environment Internal The organisations internal environment
Performance Analysis Use of SWOT (strengths, weaknesses, opportunities and threats) Purpose: Identification of potential strategic alternatives Establishes benchmark of capability
Vision / Mission / Org Philosophy Encapsulate the organisations focus Can take time to establish and achieve agreement
Strategic Business Modelling ‘The best way to have a good idea is to have a LOT of ideas - Linus Pauling 1958 Process of selecting those strategies that build on the organisations strengths, correct its weaknesses to take advantage of external opportunities whilst countering external threats.
Strategic Business Modelling GENERIC STRATEGY Cost leadership DifferentiationFocus ALTERNATIVE DIRECTIONS Do nothing – status quo WithdrawlConsolidation Market penetration Product /service development Market development Diversification (related or unrelated) ALTERNATIVE METHODS Internal development Acquisition Joint development
Strategic Business Modelling Strategic alternatives identified should articulate: Domain sought Differential advantage in serving that domain Strategic thrusts necessary and their approximate timing Target results expected
Gap Analysis Analytical and critical analysis stage Application of two considerations: Where gaps are identified need to develop strategies to close each gap Assessment of the probability of the organisation being able to implement such gap closure strategies
Gap Analysis Of Outcomes Expected outcome is that the gap analysis of strategic plan alternatives will identify that strategies identified have a reasonable probability of success Looking for strategic alternatives that have the highest organisational payoff
Implementation One of the greatest pains to human nature is the pain of a new idea Walter Bagelot, Physics and Politics 1867 Most critical elements lies in the actual implementation of the plan as opposed to the development of the plan itself.
Implementation Issues often that can inhibit implementation: Time pressures to develop and maintain the plan Over exuberant managers attempting to rush planned changes Continuing commitment – maintaining the commitment to the chosen course of action and actually implementing the plan Reluctance to give up the alternative goals not chosen Fear of failure
Implementation Other issues: Difficulty in translating the finalised strategic plan document into a workable and actionable planning tool
OBJECTIVE ACTIONRESOURCESTIMEFRAMEDUE BYCOST SHORT TERM Operational Office Find more suitable premises N/a3 monthsSept 2006$2,000 to move Additional $5,000 p.a. expense Marketing Advertising campaign TV, radio, print media and billboard Advertising budget4 monthsOct 2006$10,000 Seminars Venue, guest speaker, mailout lists Seminar budget,4 monthsOct 2006$3,000 LONG TERM Human Resources Sales person Advertise position Recruitment Budget 12 monthsJuly 2007$50,000 p.a. Marketing Advertising Cairns and Mackay TV, radio, and print media Advertising budget15 monthsOct 2007$15,000
Implementation Requirements Communication of the plan Filtration into other planning processes Maintaining ongoing commitment of top level management
Review and Monitoring Acid test of impact on organisational behaviour Should occur on a continual basis