3Strategic Thinking Cycle Elements of the Cycle Strategic ManagementPlanningImplementationStrategic Thinking:Thought ProcessesSyntheticDivergentCreativeStrategic PlanningRecreating the future
4Elements of the Strategic Thinking Cycle Systems PerspectiveIntent FocusIntelligent OpportunismThinking in TimeHypothesis Driven
5SYSTEMS PERSPECTIVEGeneration of a mental model of the complete system of value creation and understanding the interdependencies within the chain (Value Chain)New insights fail to get put into practice because they will conflict with deeply held internal images of how the organization works.Images that limit us to familiar ways of thinking and acting
6STRATEGIC INTENTStrategic Intent implies a point of view about the long-term market/environment or competitive position that a firm or organization hopes to build over the coming decade.It conveys a sense of directionDirection, discovery and destiny-these are the attributes of strategic intent
7STRATEGIC INTENTStrategic Intent provides the focus that allows individuals within an organization to marshal and leverage their energy:a) to focus attention,b) to resist distraction, andc) to concentrate for as long as it takes to achieve a goal.
8INTELLIGENT OPPORTUNISM This is the third element in the Strategic Thinking Cycle.In essence this notion is the idea of openness to new experiences which allows one to take advantage of alternative strategies that may emerge in response to rapidly changing business environments,viz:Emergent Strategy vs Deliberate Strategy
9THINKING IN TIMEStrategy is not solely driven by the future, but by the gap between the current reality and the intent for the future.Gap analysis:By connecting the past with the present and linking this to the future, strategic thinking is always “thinking in time”
10Strategic IntentThe real question is not what does the future we are trying to create look like, rather it is:Having seen the future that we want to create:a) what must we keep from that past,b) lose from the past, andc) create in our present, to get there.”
115th Element: Hypothesis Driven Hypothesis generation poses the creative question: “What if….?”Hypothesis testing follows up with the critical question: “If…… then.”It then evaluates the data relevant to the analysis.
12STRATEGIC THINKING CYCLE Firms who succeed in embedding a capability for strategic thinking throughout their organization will have created a new source of competitive advantage.Strategic Thinkers see the linkages in the system from multiple perspectives and understand the relationship among the corporate, business and functional levels.
14STRATEGIC THINKING CYCLE Process Considerations in The STCProcesses are needed to ensure that strategies are:Aligned,Goal-Oriented,Fact-based,Based on Broad thinking,Focused,Agreed upon,Engaging,Adaptable,Implementable
15STRATEGIC THINKING CYCLE Aligned: A company’s/organization’s strategies must fit with its: (a) mission, (b) vision, (c) competitive situation and (d) operating strengths.Goal-oriented: Strategies are the means by which a company sets out to achieve its goals. Effective strategies, then,a) set clear expected outcomes andb) make explicit links between these outcomes and the company’s goals.
16STRATEGIC THINKING CYCLE Fact-based: The best strategies are based on and supported by real data. While strategic thinking by its very nature requires assumptions about the future, these assumptions must beeducated guesses, andbased on facts
17STRATEGIC THINKING CYCLE Based on Broad Thinking: Companiesand Organizations that are strategically nimble are able to:consider multiple alternatives at once andto consider a range of scenarios in making strategic choices.
18STRATEGIC THINKING CYCLE Focused: No company/organization can do everything or be all things to all people. Strategy setting involves making choices about what a company will do and—as important—what it will not do.Strategies provide clear guidance about how a company’s activities will be prioritized, andhow its limited resources will be deployed.
19STRATEGIC THINKING CYCLE Agreed upon: Especially in large, complex organizations (like a Ministry), successful strategies must gain the support of multiple stakeholders.This often requires a process of developing strategies that are interactive
20STRATEGIC THINKING CYCLE Engaging: Strategies that will need to mobilize broad resources must be:easily articulated so that they can capture the attention of the people who will be asked to carry them out.
21STRATEGIC THINKING CYCLE Implementable: Because effective strategies draw on the particular strengths and skills of an organization, they include explicit considerations of how they will be implemented.Implementable strategies provide clear guidance for decision making in order to shape behavior throughout the company.
22STRATEGIC THINKING CYCLE Adaptable: Strategies need to be able to be adjusted to build on learning from experimentation, errors and new information.
23STRATEGIC THINKING CYCLE SUMMARY: The following is a list of the five criteria of the strategic thinking process:OrganizationObservationViewsDriving ForcesIdeal Position
24STRATEGIC THINKING CYCLE 1) Organization. The organization of your (new) business involves the (a) people, (b) the organizational structure, and the (c) resources necessary to make it all work.What will your organization look like?What type of structure will support your vision?How will you combine people, resources, and structure together to achieve your ideal outcome?
25STRATEGIC THINKING CYCLE 2). Observation. Strategic thinking allows you to see things from "higher up." By increasing your powers of observation,you will begin to become more aware of: what motivates people,how to solve problems more effectively, and,how to distinguish between alternatives
26STRATEGIC THINKING CYCLE 3).Views. Views are simply different ways of thinking about something. In strategic thinking, there are four viewpoints to take into consideration when forming your business strategy:the environmental view;the marketplace view;the project view;the measurement view.
27STRATEGIC THINKING CYCLE 4) Driving Forces. What are the driving forces that will make your ideal outcome a reality?What is your company's vision and mission?Driving forces usually lay the foundation for what you want people to focus on in your business (i.e., what you will use to motivate others to perform). Examples:
28ST:Driving ForcesExamples of driving forces might include: )individual and organizational incentives;2)empowerment and alignment;3)qualitative factors such as a defined vision, values, and goals;4)productive factors like a mission or function;5)quantitative factors such as results or experience;6)and others such as commitment, coherent action, effectiveness, productivity, and value.
29STRATEGIC THINKING CYCLE 5: Ideal Position. After working through the first four phases of the strategic thinking process, you should be able to define your ideal position. Your ideal position outline should include:the conditions you have found to be necessary if your business is to be productive;the niche in the marketplace that your business will fill;any opportunities that may exist either currently or in the future for your business;the core competencies or skills required in your business; andthe strategies and tactics you will use to pull it all together.
32STRATEGIC MANAGEMENTStrategic management is concerned with making decisions about an organization's future direction and implementing those decisions.Strategic Management can be broken down into two phases:1)strategic planning and2) strategic implementation.
33STRATEGIC PLANNINGStrategic Planning is devising plans which insure the future well being of the organization by developing strategies which will “protect or capture” the four basic elements of its business, which are its:Products/Services,Customer Groups,Market Segments, andGeographic/Areas Markets.
34STRATEGIC PLANNING Strategic planning is concerned with making decisions with regard to:1. Defining the organization's philosophy and mission2. Establishing long- and short-range objectives to achieve the organization's mission3. Selecting the strategy that is to be used in achieving the organization's objectives
35STRATEGIC PLANNINGHow is your Strategic Planning process different from others?1.It evolves from an orderly strategic thinking process providing a solid foundation of facts2.It is based on the driving force of your organization, often overlooked in other systems3.It is much more effective because it is created by the management team and is consensus driven
36STRATEGIC PLANNINGHow will Strategic Planning affect our Image, Marketing and Success?It will help shape the correct image by identifying the values and beliefs of the organizationYou will gain valuable insight into how to best market your Ministry based on solid informationIt will insure all the departments will be “rowing the boat” in the same direction
37STRATEGY IMPLEMENTATION Strategy implementation is concerned with making decisions with regard to:1.Developing an organizational structure to achieve the strategy2.Ensuring that the activities are effectively performed so to achieve the strategy3. Monitoring the effectiveness of the strategy in achieving the organization's objective
38ELEMENTS OF STRATEGIC PLANNING See diagram on page ---- of manual
39Organizational Philosophy Organizational philosophy establishes the values, beliefs, and guidelines for the manner in which the organization is going to conduct its business.It establishes the relationship between the organization and its stakeholders: employees,customers,shareholders,suppliers,government, andthe public at large.
40Philosophies of excellent organizations Include the following basic beliefs:Belief in being the bestBelief in the importance of the details of executionBelief in the importance of people as individualsBelief in superior quality and serviceBelief that most members of the organization should be innovators, and its corollary, the willingness to support failureBelief in the importance of informality to enhance communication.Belief in and recognition of the importance of growth and success
41Establishing Strategic Vision Strategic Vision encompasses an active management process which includes:1. An Obsession for Success.2. Focusing the Organization on winning.3. Encouraging Innovation and Change.4. Lengthening Executive attention Span.5. Improving and developing outreach.6. Motivating Employees to accomplish Goals and Objectives7. Having a Long-Range Picture of Business Opportunities.
42STRATEGIC VISIONING"If you want to move people, it has to be toward a vision that's positive for them, that taps important values that gets them something they desire, and it has to be presented in a compelling way that they feel inspired to follow. " - Martin Luther King Jr.
43STRATEGIC VISIONINGA vision of success, if it is to provide suitable guidance and motivation, it should include:MissionBasic philosophy and core valuesGoals, if they are establishedBasic strategiesPerformance criteriaImportant decision rulesEthical standards expected of all employees
44Strategic visioning The vision should emphasize: Purpose Behavior Performance criteria,Decision rules, andStandards that are public serving rather than self-serving.The guidance offered should be specific and reasonable.
45Strategic Visioning a) The vision should be short, and inspiring. b) The vision should be widely circulated among organizational members and other key stake-holdersc) The vision should be used to inform major and minor organizational decisions and actions.d) Preparing the vision is a waste of time if it has no behavioral effect.
46STRATEGIC VISIONING EG.: The Ministry’s Vision Statement: “The Ministry of Sport and Youth Affairs is a dynamic people centered organization in the forefront of human development with particular focus on youth empowerment, total participation and excellence in sport.”
47VISION & MISSION Mission outlines organization purposes, while Vision goes on to describe how the organization should look when it is working well.
48MISSIONThe MISSION outlines organization purpose, viz. the reason why the Ministry/organization exists.
49MISSION Eight (8) Questions for determining the Mission Statement What activities should we be in?2 Why do we exist?3 What is unique or distinctive about this organization?4 Who are the principal recipients of our services?
50MISSION What are the principal means of rendering our services? What are our principal services - present and future?What is different about our organization today from what it was three to five years ago?8 What is likely to be different about our organization three to five years in the future?
51MISSION The Mission should be: Action oriented Time bound Clear, broad, creative and attainableAble to identify what type of business you are in or what is your business.
52MISSION Defining the Organization's Mission: An organization's mission defines its current and future business activitiesIt should include a broad description of the service, and geographical coverage of the business today and within a time frame of 3-5 yrs..
53MISSIONThe mission statement describes how the business serves customers to underwrite its strategy; and is used as a context for the development and evaluation of intended and emergent strategies.
54THE MISSION(1) it serves as a guide for day to day operations and as the foundation for decision making and(2) for employees, a strong mission statement builds commitment, loyalty and motivation.
55MISSION4) Mission provides a unifying force, a sense of direction, and a guide to decision-making for all levels of management5) Without a concrete statement of mission it is virtually impossible to develop clear objectives and strategies.
56The Mission of the Ministry “To deliver quality support services to the citizenry for the development of Youth and Sport”
57VALUESValues are the fundamental thoughts that shape your behavior and your operations.These are key principles that govern planning and action and inspire identification with the organizationThey are the key ideas and ideals by which the organization is governed.
58EG. of VALUES OF THE MINISTRY supports continuous learning and improvement in the organization;endorses open communication, employee participation and involvement in the business of the Ministry;values the diversity and promotes the well-being of its employees and stakeholders;
59Values of the Ministry The Ministry: demonstrates positive work ethics, committed leadership and respect for individuals;encourages teamwork, trust and confidentiality in the conduct of its affairs;focuses on results and the delivery of quality services;recognizes excellence, creativity and performance.”
60SWOT ANALYSISThe major purpose of Strategic Planning is to facilitate adaptation through anticipation.Analysis of the events and trends occurring on the Political, Economic, Social, and Technological, Legal and Regulatory and the Environment (PESTLE) fronts provide strategic decision-makers with:a wider environmental-orientated perspective and with a more futuristic view of the organization’s situation.
61SWOT ANALYSISPESTLE therefore provides an analytical framework for determining the organization’s present position in relation to the future, and is therefore a very useful method of strategic analysis.
62SWOT Strategic Analysis is comprised of an analysis of the: Strengths WeaknessesOpportunities, andThreats facing the organization
63INTERNAL ANALYSISA) In the Internal Analysis the following aspects of the organization’s operations are analyzed:History and AgeLeadership and Management StyleOrganizational Structure and SystemsOrganizational CultureHuman Resource PerformanceFinancial Performance
64EXTERNAL ANALYSIS B)The External Analysis incorporates the following aspects:Values of SocietyOrganized GroupsCompetitorsEconomic ConditionsTechnology
65ENVIRONMENTAL ANALYSIS c) Overarching considerations in the context of analyzing the operations of the organization will be:The Nature of the business/function of the organization and its changing roleExpectations of IndividualsExpectations of StakeholdersExpectations of CoalitionsItems (a), (b), and (c) above impact on the strategic direction, strategic objectives and strategic choice(s) of the organization.
66INTERNAL, EXTERNAL &ENVIRONMENTAL ANALYSES This phase of the review at item (c) would have at least determined the following:What is the business of the organization?What do we want to become?Who are our clients?What do our customers want?What are our experiences?
67INTERNAL, EXTERNAL &ENVIRONMENTAL ANALYSES 6 What have we been mandated to do?7 What are we supposed to be doing?8 Are the things we do relevant to our purpose?9 Are we doing the same things we did five or ten years ago?10 What will we be doing in the next five years?