1. 1 Matt H. Evans, matt@exinfm.com Assessing Environments Process and Tools

2. 2 Matt H. Evans, matt@exinfm.com Strategic Planning Model A B C D E Environmental Scan A ssessment Background Information Situational Analysis SWOT – Strength’s, Weaknesses, Opportunities, Threats Situation – Past, Present and Future Significant Issues Align / Fit with Capabilities Mission & Vision Values / Guiding Principles Major Goals Specific Objectives Performance Measurement Targets / Standards of Performance Initiatives and Projects B aseline C omponents Performance Management Review Progress – Balanced Scorecard Take Corrective Actions D own to Specifics E valuate Where we are Where we want to beHow we will do it How are we doing Gaps Action Plans Feedback upstream – revise plans

3. 3 Matt H. Evans, matt@exinfm.com Assessment

4. 4 Matt H. Evans, matt@exinfm.com

5. 5 Business Environment in 21 st Century Technological Innovation –Information highway –The Internet –Microprocessors –Automated factories –On-line marketing (Netscape Navigator, Amazon.com) Globalization –Merger, Acquisition, mega company

6. 6 Matt H. Evans, matt@exinfm.comCont. Deregulation –AFTA, ACFTA, ANZAFTA, AEC –CBTA, FDI, SEZ Changing Political Systems –Centrally-planned economy and protectionism – gone –Capitalism, Market-oriented economy and integration into regional and global value chains

7. 7 Matt H. Evans, matt@exinfm.comCont. Demographics and the New Global Workforce –Free movement of knowledge worker (AEC) –MOU on cross-border migrant worker

8. 8 Matt H. Evans, matt@exinfm.com Assessment Model: S W O T A ssessment External Assessment: Marketplace, competitor’s, social trends, technology, regulatory environment, economic cycles. Internal Assessment: Organizational assets, resources, people, culture, systems, partnerships, suppliers,... Easy to Understand Apply at any organizational level Needs to be Analytical and Specific Be honest about your weaknesses Good Points Possible Pitfalls SWOT

9. 9 Matt H. Evans, matt@exinfm.comStrength’s A ssessment Strength’s – Those things that you do well, the Strength’s – Those things that you do well, the high value or performance points high value or performance points Strengths can be tangible: Loyal customers, Strengths can be tangible: Loyal customers, efficient distribution channels, very high quality efficient distribution channels, very high quality products, excellent financial condition products, excellent financial condition Strengths can be intangible: Good leadership, Strengths can be intangible: Good leadership, strategic insights, customer intelligence, solid strategic insights, customer intelligence, solid reputation, high skilled workforce reputation, high skilled workforce Often considered “Core Competencies” – Best Often considered “Core Competencies” – Best leverage points for growth without draining your leverage points for growth without draining your resources resources

10. 10 Matt H. Evans, matt@exinfm.comWeaknesses A ssessment Weaknesses – Those things that prevent you from Weaknesses – Those things that prevent you from doing what you really need to do doing what you really need to do Since weaknesses are internal, they are within Since weaknesses are internal, they are within your control your control Weaknesses include: Bad leadership, unskilled Weaknesses include: Bad leadership, unskilled workforce, insufficient resources, poor product workforce, insufficient resources, poor product quality, slow distribution and delivery channels, quality, slow distribution and delivery channels, outdated technologies, lack of planning,... outdated technologies, lack of planning,...

11. 11 Matt H. Evans, matt@exinfm.comOpportunities A ssessment Opportunities – Potential areas for growth and Opportunities – Potential areas for growth and higher performance higher performance External in nature – marketplace, unhappy External in nature – marketplace, unhappy customers with competitor’s, better economic customers with competitor’s, better economic conditions, more open trading policies,.. conditions, more open trading policies,.. Internal opportunities should be classified as Internal opportunities should be classified as Strength’s Strength’s Timing may be important for capitalizing on Timing may be important for capitalizing on opportunities opportunities

12. 12 Matt H. Evans, matt@exinfm.comThreats A ssessment Threats – Challenges confronting the organization, Threats – Challenges confronting the organization, external in nature external in nature Threats can take a wide range – bad press Threats can take a wide range – bad press coverage, shifts in consumer behavior, substitute coverage, shifts in consumer behavior, substitute products, new regulations,... products, new regulations,... May be useful to classify or assign probabilities to May be useful to classify or assign probabilities to threats threats The more accurate you are in identifying threats, The more accurate you are in identifying threats, the better position you are for dealing with the the better position you are for dealing with the “sudden ripples” of change “sudden ripples” of change

13. 13 Matt H. Evans, matt@exinfm.com SWOT Grid Lao SME StrengthsWeakness Famous Lao handicrafts Good sources of raw materials (wood, land) Traditional production cluster (silver smith, gold smith, weaving villages) Low-skilled / Untrained workforce Lack capital Limited production ability Gov. lack fund for new initiatives/ development OpportunitiesTreats Lao Connection abroad FTAs LDC Preferential Status Thai investors’ interest - IKEA Influx of foreign goods/ substitute products Influx of foreign workers and SMEs Young prefer to go abroad

14. 14 Matt H. Evans, matt@exinfm.com USE SWOT to form Strategies OpportunitiesThreats STST ++ Invest Clear matches of strengths and opportunities lead to comparative advantage Famous Lao Handicraft + Lao Connection abroad +- Defend Areas of threat matched by areas of strength indicate a need to mobilize resources either alone or with others. WnWn -+ DECIDE - + Areas of opportunity matched by areas of weakness require a judgement call: invest or divest; collaborate. -- DAMAGE CONTROL - - Areas of threat matched by areas of weakness indicate need for damage control or divest.

15. 15 Matt H. Evans, matt@exinfm.com Baseline

16. 16 Matt H. Evans, matt@exinfm.com

17. 17 Matt H. Evans, matt@exinfm.com Why create a baseline? B aseline Puts everything about the organization into a Puts everything about the organization into a single context for comparability and planning single context for comparability and planning Descriptive about the company as well as the Descriptive about the company as well as the overall environment overall environment Include information about relationships – Include information about relationships – customers, suppliers, partners,... customers, suppliers, partners,... Preferred format is the Organizational Profile Preferred format is the Organizational Profile

18. 18 Matt H. Evans, matt@exinfm.com Organizational Profile 1. Operating Environment B aseline Products and Services – Suppliers, Delivery Products and Services – Suppliers, Delivery Channels, Contracts, Arrangements,... Channels, Contracts, Arrangements,... Organizational Culture – Barriers, Leadership, Organizational Culture – Barriers, Leadership, Communication, Cohesiveness.... Communication, Cohesiveness.... Workforce Productivity – Skill levels, diversity, Workforce Productivity – Skill levels, diversity, contractor’s, aging workforce,... contractor’s, aging workforce,... Infrastructure – Systems, technology, facilities,.. Infrastructure – Systems, technology, facilities,.. Regulatory – Product / Service Regulation, ISO Regulatory – Product / Service Regulation, ISO Quality Standards, Safety, Environmental,... Quality Standards, Safety, Environmental,...

19. 19 Matt H. Evans, matt@exinfm.com Organizational Profile 2. Business Relationships B aseline Organizational Structure – Business Units, Organizational Structure – Business Units, Functions, Board, Management Layers,... Functions, Board, Management Layers,... Customer Relationships – Requirements, Customer Relationships – Requirements, Satisfaction, Loyalty, Expectations,... Satisfaction, Loyalty, Expectations,... Value Chain – Relationship between everyone in Value Chain – Relationship between everyone in the value chain.... the value chain.... Partner Relationships – Alliances, long-term Partner Relationships – Alliances, long-term suppliers, customer partnerships,... suppliers, customer partnerships,...

20. 20 Matt H. Evans, matt@exinfm.com Organizational Profile 3. Key Performance Categories B aseline Customer Customer Products and Services Products and Services Financial Financial Human Capital Human Capital Operational Operational External (Regulatory Compliance, Social External (Regulatory Compliance, Social Responsibility,... ) Responsibility,... )

21. 21 Matt H. Evans, matt@exinfm.com Gap Analysis B aseline Baseline / Org Profile Challenges / SWOT Benchmark Gap = Basis for Long- Term Strategic Plan

22. 22 Matt H. Evans, matt@exinfm.com

23. 23 Matt H. Evans, matt@exinfm.com