1. Module 5 LIS 580: Spring 2006 Instructor- Michael Crandall
Strategic Planning
Module 5
LIS 580: Spring 2006
Instructor- Michael Crandall

2. Roadmap The strategic management process Mission and vision statements
Analyzing strategic drivers and core competencies
SWOT analysis
Scenario planning
April 11, 2006
LIS580- Spring 2006

3. Checklist 5.1 The Strategic Management Process
Define the business and its mission.
Perform external and internal audits.
Translate the mission into strategic goals.
Generate and select strategies to reach strategic goals.
Implement the strategy.
Evaluate performance.
G.Dessler, 2003
April 11, 2006
LIS580- Spring 2006

4. A Comprehensive Strategic-Management Model
Source: Adapted from Fred David, Strategic Management (Upper Saddle River, NJ: Prentice-Hall, 2001), p. 77.
FIGURE 5–1
G.Dessler, 2003
April 11, 2006
LIS580- Spring 2006

5. Vision and Mission A vision statement tells people
Where we want to go
What we want to become
What we want to accomplish
Why it is important
And a mission expresses the organization’s:
Purpose - the needs we exist to address
Business - what are we doing to address these
Values - what principles or beliefs guide our work
April 11, 2006
LIS580- Spring 2006

6. Examples of Mission Statements
APEX ELEVATOR To provide a high-reliability, error-free method for moving people and products up, down, and sideways within a building.
UNITED TELEPHONE CORPORATION OF DADE To provide information services in local-exchange and exchange-access markets within its franchised area, as well as cellular phone and paging services.
JOSEPHSON DRUG COMPANY, INC. To provide people with longer lives and higher-quality lives by applying research efforts to develop new or improved drugs and health-care products.
GRAY COMPUTER, INC. To transform how educators work by providing innovative and easy-to-use multimedia-based computer systems.
FIGURE 5–2
G.Dessler, 2003
April 11, 2006
LIS580- Spring 2006

7. Strategies in Brief COMPANY STRATEGIC PRINCIPLE
America Online Consumer connectivity first—anytime, anywhere
Dell Be direct
eBay Focus on trading communities
General Electric Be number one or number two in every industry in which we compete, or get out
Southwest Airlines Meet customers’ short-haul travel needs at fares competitive with the cost of automobile travel
Vanguard Unmatchable value for the investor-owner
Wal-Mart Low prices, every day
Source: Arit Gadiesh and James Gilbert, “Frontline Action,” Harvard Business Review, May 2001, p. 74.
FIGURE 5–3
G.Dessler, 2003
April 11, 2006
LIS580- Spring 2006

8. Checklist 5.2 How to Test the Quality of Your Strategy
Does your strategy fit with what’s going on in the environment?
Does your strategy exploit your key resources?
Will competitors have difficulty keeping up with you?
Are the elements of your strategy internally consistent?
Do you have enough resources to pursue this strategy?
Can your strategy be implemented?
G.Dessler, 2003
April 11, 2006
LIS580- Spring 2006

9. Relationships Among Strategies in Multiple-Business Firms
FIGURE 5–4
G.Dessler, 2003
April 11, 2006
LIS580- Spring 2006

10. Strategy Types Corporate Competitive Concentration
Vertical integration
Diversification
Status quo
Investment reduction
Strategic alliances/joint ventures
Competitive
Cost leadership
Differentiation
Focus
April 11, 2006
LIS580- Spring 2006

11. Forces Driving Industry Competition
Source: Reprinted with the permission of The Free Press, a division of Simon & Schuster from Competitive Strategy: Techniques for Analyzing Industries and Competitors by Michael E. Porter. Copyright © 1980 by The Free Press.
FIGURE 5–5
G.Dessler, 2003
April 11, 2006
LIS580- Spring 2006

12. How the Internet Influences Industry Structure
Source: Adapted from Michael Porter, “Strategy and the Internet,” Harvard Business Review, March 2001, p. 67.
FIGURE 5–6
G.Dessler, 2003
April 11, 2006
LIS580- Spring 2006

13. Examples of a Company’s Strengths, Weaknesses, Opportunities, and Threats
FIGURE 7–7
G.Dessler, 2003
April 11, 2006
LIS580- Spring 2006

14. Worksheet for Environmental Scanning
FIGURE 5–8
G.Dessler, 2003
April 11, 2006
LIS580- Spring 2006

15. Checklist 5.3 How to Benchmark
Focus on a specific problem and define it carefully
Use employees who will actually implement changes to identify the best-practices companies and to conduct on-site studies.
Be willing to share information with others.
Avoid sensitive issues such as pricing, and don’t look for new product information.
Keep information you receive confidential.
G.Dessler, 2003
April 11, 2006
LIS580- Spring 2006

16. Cineplex Odeon TOWS Matrix
Source: Fred David, Strategic Management (Upper Saddle River, NJ: Prentice-Hall, 2001), p. 207.
FIGURE 5–9
G.Dessler, 2003
April 11, 2006
LIS580- Spring 2006

17. BCG Matrix FIGURE 5–10 April 11, 2006 LIS580- Spring 2006
G.Dessler, 2003
April 11, 2006
LIS580- Spring 2006

18. Checklist 5.4 Scenario Planning Principles
Scenarios have value only to the extent that they inform decision makers and influence decision making.
Scenarios add value to decision making only when managers and others use them to systematically shape questions about the present and the future, and to guide how to go about answering them.
In each step of developing scenarios, the emphasis must be on identifying, challenging, and refining the substance of managers’ mindsets and knowledge.
G.Dessler, 2003
April 11, 2006
LIS580- Spring 2006

19. Checklist 5.4 (cont’d) Scenario Planning Principles
Alternative projections about a given future must challenge managers’ current mental models by creating tension among ideas, hypotheses, perspectives, and assumptions.
The dialogue and discussion spawned by the consideration of alternative futures should directly affect managers’ knowledge.
Scenarios should include enough indicators so that managers can track how the future is actually evolving so that the learning and adaptations stimulated by the scenarios are continuous.
G.Dessler, 2003
April 11, 2006
LIS580- Spring 2006

20. Southwest Airlines’ Activity System
Source: Reprinted by permission of Harvard Business Review. From “What Is Strategy?” by Michael E. Porter, November–December Copyright © 1996 by the President and Fellows of Harvard College; all rights reserved.
FIGURE 5–11
G.Dessler, 2003
April 11, 2006
LIS580- Spring 2006

21. Strategic Fit vs. Stretch
Southwest follows Michael Porter’s view that functional strategies should support corporate and competitive strategies
Hamel and Prahalad argue that leveraging resources is more important for long-term success
Core competencies define key strengths of the organization, and provide the focus for strategic choices
April 11, 2006
LIS580- Spring 2006

22. Cleveland Public Library
How did the library go about building their plan?
Did they effectively engage the stakeholders in the process?
What kinds of outside help did they seek in formulating their plan?
How did the concrete steps they defined relate to their mission and vision statements?
Were there any measurements of success built into the plan?
April 11, 2006
LIS580- Spring 2006

23. Next Time Guest lecture
Mike Eisenberg, Dean Emeritus, the Information School
Read the iSchool Strategic Plan Mike wrote in 1998, and think of it in the context of the discussions we’ve been having over the past several days
Come prepared with questions that use class readings and discussion to examine this plan
A great chance to hear from someone who’s gone through a full planning cycle
April 11, 2006
LIS580- Spring 2006