Strategizing Strategizing is about setting institutional goals and finding the best means to reach those goals. Strategizing bridges the chasm between where an organization is today and where it wants to go tomorrow. Strategies are the best means by which an organization achieves its desired ends.

A Framework for Organizational Strategizing

External Environment Assessment LOOK THREATS MACRO ENVIRONMENT INDUSTRY, SECTOR & AREA ANALYSIS MARKET ANALYSIS MICRO MARKET ANALYSIS OPPORTUNITIES

External Environment Assessment LOOK MACRO ENVIRONMENT

Macro Environment PoliticalEconomic Technolo gical Ecological Social

Social Factors  Encompasses DEMOGRAPHICS  Considers society’s structures – Age – Consumption preferences / patterns – Gender – Societal roles – Income levels of households / individuals – Spending habits

Social Factors  Considers society’s structures – Education profile (competencies, skills, employability) – Health (morbidity, mortality, productive hours, quality of life & well-being) – Employment by sector/ industry – Compensation packages – Psychological, religious, moral, and cultural dimensions

Political Factors  Deals with power structures and forces – Protagonists / Antagonists – Pattern of collaborations and conflicts – Founded on constitutional or legal frameworks – Control and management of vital resources Human Natural Physical Monetary

Political Factors – Laws, rules, regulations, procedures, processes – Political will, levels of honesty, organizational capabilities

Economic Factors  Productive forces: Capital, Land, Labor  Both formal and informal sector of society – Gross National Product (GNP) – Gross Domestic Product (GDP) – Income distribution – Employment, Unemployment, Underemployment

Economic Factors  Both formal and informal sector of society – Foreign exchange rates – Inflation rates – Interest rates – Foreign and Domestic investment levels – Debt levels – Saving rates – Balance of trade – Balance of payments

Economic Factors – Money supply – Lending and deposit rates – Housing starts and construction indices – Absolute and relative poverty levels – Exports and imports – Fiscal surpluses and deficits – Supply and demand for basic commodities – Prices of critical goods and services – Government budgetary allocation

Ecological Factors  Includes natural resources, ecosystems, and habitats – Quality of Air – Quality of Water – Quality of Soil – Waste Disposal Systems

Technological Factors  Embodied in the following: – Infrastructure – Physical structure – Machinery and equipment – Operating systems – Management processes

Technological Factors  Embodied in the following: – Supplies and production – Service requirements (Public & Private organizations) – Impact on productivity – Value generation

A Framework for Organizational Diagnosis

10 Levels of Internal Assessment First Level of Assessment: Evaluating Performance Outputs and Outcomes First Level of Assessment: Evaluating Performance Outputs and Outcomes Second Level of Assessment: Evaluating Organizational Competencies and Capabilities Second Level of Assessment: Evaluating Organizational Competencies and Capabilities Third Level of Assessment: Evaluating Utilization of Resources Third Level of Assessment: Evaluating Utilization of Resources Fourth Level of Assessment: Evaluating Management Processes Fourth Level of Assessment: Evaluating Management Processes Fifth Level of Assessment: Evaluating the Four Management Functions Sixth Level of Assessment: Evaluating Teams and Individuals Seventh Level of Assessment: Evaluating Physical Facilities and Set Up, Working Conditions and Environmental Surroundings Seventh Level of Assessment: Evaluating Physical Facilities and Set Up, Working Conditions and Environmental Surroundings Eighth Level of Assessment: Evaluating Organizational Affiliations, Alliances and Linkages Eighth Level of Assessment: Evaluating Organizational Affiliations, Alliances and Linkages Ninth Level of Assessment: Evaluating Top Management, Board Members and Leadership Ninth Level of Assessment: Evaluating Top Management, Board Members and Leadership Tenth Level of Assessment: Evaluating Strategic Fit or VSOP consistency Tenth Level of Assessment: Evaluating Strategic Fit or VSOP consistency

The Operations Function InputsThroughputsOutputsOutcomes

Education Inputs to External Assessment  Basic Inputs  Performance Indicators  Awards and Recognitions  Others

Make no little plans; they have no magic to stir men’s blood… Make big plans, aim high in hope in work Daniel H. Burnham ( )