Marge Mohoric Ph.D. The Evergreen State College Strategic Planning Process

2 Overview of Strategic Planning Guiding Principles Vision Mission Goals Tactics Performance Measures Objective measurements of Goal performance Priority Goals Key areas of focus for next 1 – 5 years Big Three Action Plans Management programs to achieve the Goals 6 month – 12 month timeframe

3 Guiding Principles Vision Mission Goals

4 Definition of Vision A vision is a guiding image of success. You will never be greater than the vision that guides you. The vision statement should require the organization's members to stretch their expectations, aspirations, and performance.

5 Sample Vision Statements Komatsu Surround Caterpillar. Disneyland To be the happiest place on earth. WA State Employees Credit Union Become the best source of financial solutions for every member and potential member.

6 Definition of Mission A mission statement communicates the essence of your organization. Two basic components: Purpose Statement Clearly states why your organization exists Business Statement Outlines the business (activities or programs) your organization chooses in order to pursue its purpose.

7 Sample Mission Statement Nike: To bring inspiration and innovation to every athlete in the world. Starbucks : Establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while we grow. “Business is the only mechanism on the planet today powerful enough to produce the changes necessary to reverse global environmental and social degradation.” Paul Hawken

8 Strategic Plan Goals Key areas of focus for next 1 – 5 years Return on Assets Goal Cumulative Profits Goal Market Share Goal Stock Price Goal

9 Performance Measures Objective measurements of success

10 Priority Goals With Performance Measures GOAL: Increase Return on Assets Performance Measures Increase ROA to ____ by _________

11 Tactics Research and Development Marketing Production Finance Human Resources

12 Tactics--Action Plans ActionDue DateLead New product introduction Product repositioning Research and Development

13 SWOT Analysis Strengths: internal resources and capabilities that can be used as a basis for developing a competitive advantage. Weaknesses: internal weaknesses (attributes on your firm) Opportunities: external opportunities for profit and growth. Threats: external changes in the environment

14 SWOT Matrix S-O strategies pursue opportunities that are a good fit to the company’s strengths W-O strategies overcome weaknesses to pursue opportunities S-T strategies identify ways that the firm can use its strengths to reduce its vulnerability to external threats W-T strategies establish a defensive plan to prevent the firm’s weaknesses from making it highly susceptible to external threats

15 Strengths—Wal-Mart (brainstorm ) Size Competitiveness Low prices Leverage Smiley face on the blue vest Brand loyalty Location

16 Weaknesses—Wal-Mart Bad customer service Bad reputation Bad ethics Poor employee treatment Harmful to their environment Poor relationships with suppliers/partners Lack of consistency between stores Poor quality Big parking lots

17 Opportunities—Wal-Mart Foreign markets Outsourcing Martha Stewart’s imprisonment Compulsiveness New technology Better wages Health care Upscale market Day care

18 Threats—Wal-Mart Gov’t regulation Evergreen Bad press Target Public awareness Thieving employees Market saturation

19 Strengths—Google (brainstorm ) Innovation Patent on their algorithms Size—large Youthful culture User-friendly Competitiveness Room to grow Cash

20 Weaknesses-Google Lack of good people skills Micro-managing Vulnerability to bad press (internal and external) Fad Inexperienced Technology shortfalls

21 Opportunities-Google Foreign markets Mergers/acquisitions Expanding to other media (e.g. video search) Diversification (e.g. Google maps) Joint ventures

22 Threats-Google Yahoo Microsoft Black hat practices Netscape Copyright infringement Click fraud Patriot Act Gov’t regulations Patent coming up for renewal Public perception