Using an Organization’s Vision to Build a Strategic Plan 26 April 2007

2 Agenda The Role of Vision in Strategy Development Examples of Using a Vision to Develop a Strategic Plan Balancing Structure and Chaos

3 Why Strategic Planning Starts with the Vision “Would you tell me, please, which way I ought to go from here?” “That depends a good deal on where you want to get to,” said the Cat. “I don't much care where,” said Alice. “Then it doesn't matter which way you go,” said the Cat. Lewis Carroll, Alice's Adventures in Wonderland

4 The Vision and the Strategic Plan The vision is the “what”, the strategic plan is the “how” –The vision outlines an organization’s goals for its future –The strategic plan outlines the actions the organization needs to take to implement its vision –Understanding what the organization aspires to accomplish and why are the keys to successful strategic plan development Organizations have different types of visions that require different approaches to strategic planning –Reactive – Responding to environmental changes or stakeholder requirements –Proactive – Staying ahead of the competition –“The enterprise competing on the edge will establish the pace of change in its industry and which new products and services will set the standard, rather than reacting to its environment and the forces that are thrust upon it.” - Kathleen Eisenhardt and Shona Brown, Competing on the Edge: Strategy as Structured Chaos

5 Strategy Development is a Continuous Process Source: Toffler Associates

6 Air Force Reserve – An Unrivaled Wingman To deliver sovereign options for the defense of the United States of America and its global interests - to fly and fight in Air, Space, and Cyberspace (the same as the Air Force). 7 Aimpoints 44 Vectors 28 Pages Source: Air Force Reserve Vision

7 Implementing Strategy to Realize a Vision Vision Strategic Plan Balanced Scorecard FEEDBACK Governance Strategy Map Source: Toffler Associates

8 FBI – Reacting to Changing Priorities To protect and defend the United States against terrorism and foreign intelligence threats, to uphold and enforce the criminal laws of the United States, and to provide leadership and criminal justices services to federal, state, municipal, and international agencies and partners. Source: FBI Strategic Plan

9 Transforming to Counter Emerging Threats Source: FBI Strategic Plan

10 Google – Chaos by Design To organize the world’s information and make it universally accessible and useful. We believe that the most effective, and ultimately the most profitable, way to accomplish our mission is to put the needs of our users first. We have found that offering a high-quality user experience leads to increased traffic and strong word-of-mouth promotion. Source: Google K

11 Not Quite Enough Structure “We try very hard to look like we're out of control. But in fact the company is very measured. And that's part of our secret.” - Eric Schmidt, Google CEO, responding to a Time reporter’s question about whether or not Google has a grand strategy “We don't generally talk about our strategy... because it's strategic. I would rather have people think we're confused than let our competitors know what we're going to do. That's an easy trade-off.” – Larry Page, Google Co-Founder, responding to the same question on grand strategy “The company's goal … is to determine precisely the amount of management it needs -- and then use a little bit less.” – Shona Brown, Google Senior Vice President for Business Operations, describing her role "Bad decision, moved too quickly, no controls in place, wasted some money." - Sheryl Sandberg, Google Vice President, Global Online Sales & Operations, on a multimillion dollar mistake "I'm so glad you made this mistake … because I want to run a company where we are moving too quickly and doing too much, not being too cautious and doing too little. If we don't have any of these mistakes, we're just not taking enough risk." - Larry Page, Google Co-Founder, upon hearing of Ms. Sandberg’s mistake Sources: Time Magazine, February 12, 2006; Fortune Magazine, October 2, 2006

12 Balancing Structure and Chaos Source: The Air Force Reserve mirrored the strategic planning process of the Air Force. The FBI has transformed itself to counter new threats using a highly structured strategic planning process. Google has released over 80 new products and services by embracing chaos.

13 Questions