1. Planning Teams and Strategic Planning IACT424/924 Corporate Network Design and Implementation

2. Outline The Strategic Network Plan To Plan…or Not? The Crouch Diagram Six Tips for Strategic Planning Ten Pitfalls of Strategic Planning Factors in Selecting Strategies Planning Teams Who Should Be Involved in Planning?

3. The Strategic Network Plan Strategic planning determines Where an organization is going over the next year or more How it's going to get there How it'll know if it got there or not Far more important than the strategic plan document, is the planning process itself

4. To Plan…or Not? The most basic question to ask before starting a strategic planning process is whether to develop a strategic plan The question of whether or not to develop a strategic plan may be based on answers to the following questions:

5. To Plan…or Not? What purpose will the strategic plan serve? How will it help the organization? Will it be better than the system we use now? Are those in leadership positions committed to strategic planning? How much will it cost in terms of time and personnel effort?

6. To Plan…or Not? Who should be on the planning team? Does anyone have experience with strategic planning? Do we think we can do it? Are we willing to make decisions about our future? Will we actually use the plan? What overriding crises would inhibit our ability to plan?

7. The Crouch Diagram Why are we in business? How do we do business? Where are we now? Where do we want to be? How do we get there? How will we know we’ve arrived?

8. The Crouch Diagram Why are we in business? How do we do business? Where are we now? Where do we want to be? How do we get there? How will we know we’ve arrived? Vision Driving Force Mission

9. Why Are We in Business? Vision The future position and value of the organization (present tense, seven words or less) The vision statement describes  desired future structure, size, services, and markets It is a sketch, not a blueprint It shows basic features, not specific dimensions. It is the strategic baseline It must be challenging and compelling Effective vision statements capture "the dream“ They are substantive and significant They make you different

10. Why Are We in Business? Mission The organization and its purpose (one hundred words or less):  Who we are  Who we serve  What products and services we offer, and  How we make them available The mission statement outlines markets, customers, and competitors

11. Why Are We in Business? Mission Statements Broadly defines business scope and purpose Presents "a desired position in a predicted future world" and represents the "bulls-eye or target of the strategy" (Yavitz & Newman, Strategy in Action, 1982) It sets down customer needs served and the range of services offered.

12. Why Are We in Business? The mission statement answers: What is our future business? "A mission statement should not commit a firm to what it must do in order to survive but what it chooses to do in order to thrive" (Ackoff, Management in Small Doses, 1986) The greatest obstacle is narrow-mindedness, thinking of the future business as an elaboration of the present

13. Why Are We in Business? Driving Forces The conditions which "drive" the organization: Products/services offered Market focus/needs Technology Production capability/capacity Method of sale Method of distribution Natural resources Size and growth, or Profit/return on investment

14. The Crouch Diagram Why are we in business? How do we do business? Where are we now? Where do we want to be? How do we get there? How will we know we’ve arrived? Values Climate Culture

15. How Do We Do Business? Values The bases on which we want decisions to be made and actions to be taken Values are beliefs held by the company Every organization has them Values differentiate you from competitors

16. How Do We Do Business? The Values Statement The values statement is a summary of the values that guide operations and staff It is the basis for the ethical standards in dealings with employees, patients or customers, vendors, competitors, and payers The values statement addresses corporate integrity and citizenship, customer benefit, quality, and employee relationships

17. How Do We Do Business? Culture Traditions, ethics, and other standards which influence the way things are accomplished in the organization Climate The interpersonal and physical environments: is the organization a good place to be and to work?

18. The Crouch Diagram Why are we in business? How do we do business? Where are we now? Where do we want to be? How do we get there? How will we know we’ve arrived? Strengths Weaknesses Opportunities Threats Competition Constraints

19. The Crouch Diagram Why are we in business? How do we do business? Where are we now? Where do we want to be? How do we get there? How will we know we’ve arrived? Strategy

20. Where Do We Want to Be? Strategies--where we want to be and what we want to achieve. Goals and objectives--directly support our mission. Goals should be SMART: S-pecific, M-easurable, A-chievable, R-ealistic, and T-imely

21. Where Do We Want to Be? The Strategy Statement A strategy is a statement of direction that serves as a central organizational theme guiding and coordinating functional actions A strategy articulates the nature of a business and its main intentions for the future

22. Where Do We Want to Be? Strategy creates a reference point It focuses on long-term direction Is qualitative Provides guidance for short-term plans Integrates functional plans into an overall scheme Is realistic and action oriented, and is understood at the top and middle levels of the organization (Yavitz & Newman) A strategy must be clear and lack subtlety

23. The Crouch Diagram Why are we in business? How do we do business? Where are we now? Where do we want to be? How do we get there? How will we know we’ve arrived? Tactics Resources

24. How Can We Get There? Tactics Specific action plans to implement our strategies the right people doing the right things at right time in the right way for the right reasons. Satisfying our needs (tactics)... What is the specific goal? Who will champion it's accomplishment? When will action start? End? What tasks are involved? What resources are needed? How shall we monitor?

25. How Can We Get There? - The Goals/Objectives Statement Tactics can be developed as a set of goals and accompanying objectives framing what needs to be done

26. How Can We Get There? - The Goals/Objectives Statement A goal is a written statement describing a defined action Goals are broad ends that an organization works towards on an ongoing basis Goals are general rather than specific, qualitative rather than quantitative, directional rather than measurable, focal rather than achievable, and continuous rather than time-limited

27. How Can We Get There? - The Goals/Objectives Statement An objective is a written statement describing a specific result, event, or outcome to be accomplished to work towards a particular goal Objectives are discrete aims to be completed in a preset time frame, they are stated in terms of "what," "when," and "who." Objectives are specific rather than general, quantitative rather than qualitative, measurable rather than directional, achievable rather than focal, and time-limited rather than continuous

28. How Can We Get There? Goals and objectives are hierarchically related A goals/objectives statement takes the form of several goals (usually three or more but less than ten) enumerated in terms of their significance with each goal related to three to five objectives in the order to be accomplished.

29. How Can We Get There? Goal Setting Process Consider: vision, mission, environment Generate goals Prioritize goals Determine how to defend selections Goals show "what" not "how”

30. How Can We Get There? Accomplishing our goals... What is the specific task? Who will champion it's accomplishment? When will action start? End? What activities are involved? What resources are needed? How shall we monitor?

31. How Can We Get There? Team Process Teams select three top goals by consensus  Combine  Re-Write, or  Create new goals Report to the group, defend choices Begin Action Planning

32. How Can We Get There? Resources There are only five: People Property Time money, and Technology (or knowledge)

33. The Crouch Diagram Why are we in business? How do we do business? Where are we now? Where do we want to be? How do we get there? How will we know we’ve arrived? GAP ANALYSIS

34. Gap Analysis Strategic planning closes the gap between where the company is and where it wants to be This involves translating strategy into the realities of organizational structure, systems, policies, products, and operations

35. Gap Analysis This will be done by getting answers to such questions as: What realignments in the organizational structure are indicated? What changes are suggested in leadership style? What new management skills are necessary? What will be the implications for policy?

36. Gap Analysis These questions represent "critical issues" which are " those major changes, modifications, additions to the organization's structure and systems, to its capabilities and resources, to its information needs and management that result from setting strategy" (Tregoe & Zimmerman) What makes these issues critical is their functional relationship to the implementation of the strategy

37. The Crouch Diagram Why are we in business? How do we do business? Where are we now? Where do we want to be? How do we get there? How will we know we’ve arrived? Co-Ordination Budgets Controls Reports Milestones

38. The Crouch Diagram For network design and implementation, I believe the most important questions are: Where do we want to be? How do we get there? You need information: SWOT Constraints Reports

39. Six Tips for Strategic Planning 1. Strategic planning is a way of thinking, an on going process The plan is never perfect or complete 2. Keep the planning simple and manageable 3. Involve the organization’s leaders Don't give away the planning task to support staff or consultants

40. Six Tips for Strategic Planning 4. Emphasize creativity, innovation, and imagination rather than blindly following a set of planning steps 5. Don't adopt strategies without careful consideration of how they will be implemented 6. Strategic planning is not an end in itself It is a tool to help the organization accomplish its mission

41. Ten Pitfalls of Strategic Planning 1. Planning the future primarily on the basis of statistical and financial projections or forecasts 2. Over-nighting a thick packet of forms to every branch to complete and return them to the corporate office in 10 business days

42. Ten Pitfalls of Strategic Planning 3. Giving strategic planning lip-service, but not giving time or support necessary to develop or implement a credible plan 4. Rolling out a new company-wide, long- term planning process and leaving incentive packages tied to short-term results unchanged

43. Ten Pitfalls of Strategic Planning 5. Blaming competitors, customers, payers, regulators, or the sales force for the poor strategic performance of the agency or company 6. Investing in training all line managers in techniques to build an exciting agency future and then downsizing

44. Ten Pitfalls of Strategic Planning 7. Adopting a strategy inherited through the acquisition of a former rival or simply imitating a current competitor 8. Starting with a vision or mission that fails to capture the imagination and ownership of the grunts in the field

45. Ten Pitfalls of Strategic Planning 9. Letting the bean counters in the business office or in accounting or finance reduce the future to a series of monthly bottom lines 10. Trying to step into the future with both feet planted firmly in past because of a myopic view of tomorrow as what we like about today

46. Four Basic Strategies Rational -Empirical People are rational and follow self interest change based on communication of information and offering incentives Normative -Re-educative People are social beings and follow social norms change based on redefining and reinterpreting existing norms, & developing commitment to new norms Power -Coercive People are mostly compliant, do as they’re told change based on the exercise of authority and the imposition of sanctions Environmental -Adaptive People oppose loss/disruption but adapt readily change based on building a new organisation and gradually transferring people to the new one

47. Factors in Selecting Strategies There is no single perfect strategy … please consider: Degree of Resistance  Strong: Power-Coercive & Environmental-Adaptive  Weak: Rational-Empirical & Normative-Re-educative Target Population  Large populations need all four strategies in a mix ‘something for everyone’

48. Factors in Selecting Strategies The Stakes  High stakes need all four strategies in a mix ‘nothing left to chance’ The Time Frame  Short: Power-Coercive  Longer: Rational-Empirical & Environmental- Adaptive & Normative-Re-educative

49. Factors in Selecting Strategies Expertise  Mix the strategies according to the expertise of the Change Agents Dependency  If organisation is dependant on its people, managements ability to lead is limited  If people are dependant on the organisation, their ability to resist or oppose is limited  Mutual dependency requires negotiation

50. Marketing Strategies Current Customers New Customers in Related Fields New Customers in Unrelated Fields New Services in Unrelated Fields STRATEGY VII PRODUCT/SERVICE INNOVATION High Investment Low Return High Risk STRATEGY VIII High Investment Moderate Return High Risk STRATEGY IX STARTUP OPERATION High Investment High Return Very High Risk New Services in Related Fields STRATEGY IV PRODUCT/SERVICE DEVELOPMENT Moderate Investment Low Return Low Risk STRATEGY V DIVERSIFICATION Moderate Investment Moderate Return Moderate Risk STRATEGY VI Moderate Investment High Return High Risk Current Services STRATEGY I MARKET PENETRATION Low Investment Low Return Very Low Risk STRATEGY II MARKET DEVELOPMENT Low Investment Moderate Return Low Risk STRATEGY III MARKET INNOVATION Low Investment High Return High Risk

51. Planning Teams The planning design frequently calls for a small team to direct efforts and develop the written document Input should come from the entire organization so that each member has a stake in the process and outcome Team members should Work well together Be committed to the process Be respected by their peers

52. Planning Teams Team Leader Should understand planning well enough to help others through the process If this is a first-time experience for everyone involved, out side expertise may be useful to provide an initial orientation or a jump start

53. Who Should Be Involved in Planning? Establish clear guidelines for membership, for example Those directly involved in planning Those who will provide key information to the process Those who will review the plan document Those who will authorize the document Etc

54. Who Should Be Involved in Planning? The chief executive and board chair should be included in the planning group Should drive development and implementation of the plan

55. Who Should Be Involved in Planning? A primary responsibility of a board of directors is strategic planning to effectively lead the organization Therefore, insist that the board be strongly involved in planning Including assigning a planning committee (often, the same as the executive committee)

56. Who Should Be Involved in Planning? Always include in the group, at least one person who ultimately has authority to make strategic decisions Ensure that as many stakeholders as possible are involved in the planning process

57. Who Should Be Involved in Planning? Involve at least those who are responsible for composing and implementing the plan Involve someone to administrate the process, including Arranging meetings Helping to record key information Helping with flipcharts Monitoring status of prework, etc

58. Who Should Be Involved in Planning? Phases in Team membership Strong board involvement in determining the organization’s strategic direction Mission Vision Values

59. Who Should Be Involved in Planning? Then more staff involvement in determining the organization’s strategic analysis to determine its current issues and goals Then primarily the staff to determine the strategies needed to address the issues and meet the goals

60. Who Should Be Involved in Planning? In general, where there's any doubt about whether a certain someone should be involved in planning, it's best to involve them