1. Session IIB-1: Introduction to Strategic Planning Dr. William T. Cousins cousinsw@asme.org (9:55 – 10:40)

2. Introduction to Strategic Planning 2 Introduce strategic plan formulation Relate Strategic Plans, Business Plans, and Balanced Scorecard Provide basics that lead to success (ASME, Industry, Academic) Session Objectives

3. Introduction to Strategic Planning 3 Session Outline Intro to Strategic Planning Communicating & acting on the strategic plan –Strategic Plan document –Balanced Scorecard Strategy Map –Business Plan Failure points to protect against

4. Introduction to Strategic Planning 4 Long Term Planning vs. Strategic Planning Long Term Planning More of the Same Extrapolation of the current state of the organization Organizational Direction Change Competitive Positional/tactical analysis Customer Driven Strategic Planning Changes to the Business

5. Introduction to Strategic Planning 5 Strategic Planning Steps 1.Develop a document that spells out: –Mission, Vision, Purpose of the organization 2.Develop a communication plan that saturates the consciousness of everyone with: What business are we in and why? Where are we going? What do we stand for as an organization? 3.Examine the culture to establish a baseline to which change can be compared.

6. Introduction to Strategic Planning 6 Strategic Planning Steps 4.Develop changes in information flow, accountability & reward systems to ensure (at least) compliance and (at best) commitment & creativity. 5.Develop supports for changed behavior. (Training, team building, etc.) 6.Set goals for all parts of the organization. Criteria for goals: Perform gap analysis What we hope to accomplish How this relates to the vision of the organization How we will track progress

7. Introduction to Strategic Planning 7 Strategic Planning Steps 7.Hold a strategy session with each unit to create action plan & agreed-upon goals that are aligned with the organizational vision. Who will do what, when, where, how, with what intent. 8.Communicate the plan. 9.Celebrate achievements & learn from mistakes.

8. Introduction to Strategic Planning 8 How it all fits together… Broad Actions Gap Analysis People-Friendly Change Strategic Questions Why are we in business? How do we do business? Where is our business now? Where do we want to be? How can we get there? How will we know we’ve arrived? Strategic Actions Coordination Budgets Controls Reports Milestones Vision Mission Driving Force Values Climate Culture Environmental Assessment Strengths Weaknesses Opportunities Threats Competition Constraints Barriers Strategies (Goals) Tactics (Plans) Resources Metrics Start here Work Across

9. Introduction to Strategic Planning Exercise…. Thinking about where your fellow leaders in your unit want to take your unit (the Vision)….. –List what you consider the biggest barrier/constraint to getting there. –What might you do to mitigate this barrier/constraint ? 10 minutes 9

10. Introduction to Strategic Planning 10 What is the Balanced Scorecard? The Balanced Scorecard (BSC) is a tool to help translate strategy into operational objectives.

11. Introduction to Strategic Planning 11

12. Introduction to Strategic Planning 12 Guiding Your Strategy into Operation Your Strategy Map Helps You: Keep your operation on the “right” path to be successful Set priorities Focus your volunteers on what’s important ASME Enterprise Strategy Map Your Unit Strategic Plan Your Unit Strategy Map Driving Force Support

13. Introduction to Strategic Planning 13 How it all fits together… Broad Actions Gap Analysis People-Friendly Change Strategic Questions Why are we in business? How do we do business? Where is our business now? Where do we want to be? How can we get there? How will we know we’ve arrived? Strategic Actions Coordination Budgets Controls Reports Milestones Vision Mission Driving Force Values Climate Culture Environmental Assessment Strengths Weaknesses Opportunities Threats Competition Constraints Barriers Strategies (Goals) Tactics (Plans) Resources Metrics BSC Strategy Map

14. Introduction to Strategic Planning 14 Business Plan? Strategic Plan? Now I’m really confused! It’s really very simple… A business plan is: a management, planning, and communication document. It defines specifics for an individual program or tactic in the strategic plan

15. Introduction to Strategic Planning 15 How it all fits together… Broad Actions Gap Analysis People-Friendly Change Strategic Questions Why are we in business? How do we do business? Where is our business now? Where do we want to be? How can we get there? How will we know we’ve arrived? Strategic Actions Coordination Budgets Controls Reports Milestones Vision Mission Driving Force Values Climate Culture Environmental Assessment Strengths Weaknesses Opportunities Threats Competition Constraints Barriers Strategies (Goals) Tactics (Plans) Resources Metrics Business Plan BSC Strategy Map

16. Introduction to Strategic Planning 16 Do not let the budget drive the plan

17. Introduction to Strategic Planning 17 Don’t get all hung up on the mission and vision statements… get the basics down... This is a good item for pre-work before your strategic planning event.

18. Introduction to Strategic Planning 18 Don’t spend group time word-smithing, let one person author, then change.

19. Introduction to Strategic Planning 19 Be sure to keep strategies separate from tactics… don’t confuse the two.

20. Introduction to Strategic Planning 20 Don’t drop the ball with the measures and metrics… they allow you to monitor success.

21. Introduction to Strategic Planning 21 Keep moving through the process at a decent pace… you will have a better result… speed helps.

22. Introduction to Strategic Planning 22 Contact Information Dr. William T. Cousins 860-565-8589 (Pratt & Whitney, E. Hartford, CT) cousinsw@asme.org This presentation will be posted on the 2011 LTC Web Site, at http://www.asmeconferences.org/lt c11/presentations.cfm

23. Introduction to Strategic Planning 23 Background Information Follows VOLT Strategic Plan VOLT Strategy Map

24. Introduction to Strategic Planning 24 (Front and back of the VOLT Strategic Plan brochure)

25. Introduction to Strategic Planning 25 (Inside of the VOLT Strategic Plan brochure)

26. Introduction to Strategic Planning 26

27. Introduction to Strategic Planning 27 Introduction to Strategic Planning For questions or comments Dr. William T. Cousins cousinsw@asme.org Presentation available at events.asme.org/ltc11 /presentations.cfm