Strategic Planning Process Dennis I. Blender, Ph.D. Blender Consulting Group “The essence of strategy is choice.”

Planning Process Analysis Past reports – review key findings, implications Conduct SWOT (strengths, weaknesses, opportunities, threats) analysis Definition Who, what, how, where Who not, what not, how not, where not Who else, what else, how else, where else Critical success factors  Core Ideology Core purpose – fundamental reason for existence Core values – essential beliefs and tenets  Planning Strategic targets – key indicators for success Tactics – action steps (what, when, how, who) Implementation and monitoring Communication plan

Analysis - SWOT Brainstorming Generating many ideas and possibilities Strengths, weaknesses, opportunities, threats Identify patterns, themes Prioritization (High, Medium, Low) Consensus   Rules of Brainstorming The more ideas, the better The wilder the ideas, the better Absolutely no discussion Absolutely no evaluation Positive or negative Verbal or nonverbal Hitch-hiking is OK Silence is OK

Definition Current Who? What? How? Where?

Definition Else Not Who Else? What Else? How Else? Where Else? Who Not? What Not? How Not? Where Not?

Definition Critical Success Factors Current Performance Level Required Performance Difference To be successful, this organization must have the ability to do the following extremely well…   5 – Outstanding 4 – Very Good 3 – Average 2 – Marginal 1 – Poor 0 – Abysmal

Core Ideology Core Purpose The organization's reason for being. Reflects people’s idealistic motivations for doing the organization’s work. It captures the soul of the organization. 3M: To solve unsolved problems innovatively Cargill: To improve the standard of living around the world Fannie Mae: To strengthen the social fabric by continually democratizing home ownership Hewlett-Packard: To make technical contributions for the advancement and welfare of humanity Lost Arrow Corporation: To be a role model and a tool for social change Mary Kay Cosmetics: To give unlimited opportunity to women

Core Ideology McKinsey & Company: To help leading corporations and governments be more successful Merck: To preserve and improve human life Nike: To experience the emotion of competition, winning, and crushing competitors Pacific Theatres: To provide a place for people to flourish and to enhance the community Sony: To experience the joy of advancing and applying technology for the benefit of the public Telecare Corporation: To help people with mental impairments realize their full potential Wal-Mart: To give ordinary folk the chance to buy the same things as rich people Walt Disney: To make people happy

Core Ideology Core Values The essential and enduring tenets of an organization A small set of timeless guiding principles Require no external justification; they have intrinsic value and importance to those inside the organization Merck • Corporate social responsibility • Unequivocal excellence in all aspects of the company • Science-based innovation • Honesty and integrity • Profit, but profit from work that benefits humanity Nordstrom • Service to the customer above all else • Hard work and individual productivity • Never being satisfied • Excellence in reputation; being part of something special

Core Ideology Philip Morris • The right to freedom of choice • Winning – beating others in a good fight • Encouraging individual initiative • Opportunity based on merit, no one is entitled to anything • Hard work and continuous self-improvement Sony • Elevation of the Japanese culture and national status • Being a pioneer – not following others; doing the impossible • Encouraging individual ability and creativity Walt Disney • No cynicism • Nurturing and promulgation of "wholesome American values" • Creativity, dreams, and imagination • Fanatical attention to consistency and detail • Preservation and control of the Disney magic   (Copyright 1996 by Jim Collins and Jerry I. Porras. This article first appeared in Harvard Business Review, September-October 1996.)

Planning Strategic Initiatives Targets Tactics What Who When