A PROCESS FOR STRATEGIC PLANNING © By Larry Milner Global Strategy Consultants

A PROCESS A PROCESS FOR FOR

STRATEGIC PLANNINGSTRATEGIC PLANNING©©

By By

Larry MilnerLarry Milner

Global Strategy ConsultantsGlobal Strategy Consultants

Changes in Changes in

OrganizationsOrganizations20th Century20th Century

Stable, large, rigid, process Stable, large, rigid, process driven, vertical hierarchydriven, vertical hierarchy

21st Century21st Century

Continuous change, speed, Continuous change, speed, responsive, flexible, responsive, flexible, and results-driven and results-driven

Three Sources of PowerThree Sources of Power

StrengthStrength

WealthWealth

InformationInformation

Culture of ExcellenceCulture of Excellence

Citizen CenteredCitizen Centered

Results FocusedResults Focused

TransparentTransparent

Strategic Planning Strategic Planning ProcessProcess

1. Planning to Plan1. Planning to Plan

2. Identifiable Strategy 2. Identifiable Strategy

3. Vision of Ideal Future3. Vision of Ideal Future

4. Mission4. Mission

5. Strategic Objectives5. Strategic Objectives

Strategic Planning Strategic Planning ProcessProcess

6. Model Operations6. Model Operations

7. Performance Review7. Performance Review

8. Gap Analysis8. Gap Analysis

9. Action Plans9. Action Plans

10. Review and Update10. Review and Update

Strategic Planning Strategic Planning FrameworkFramework

Role in achieving StrategyRole in achieving Strategy

A vision of the ideal futureA vision of the ideal future

A mission statement to achieve its A mission statement to achieve its visionvision

Specific objectives to achieve its Specific objectives to achieve its missionmission

Actions plans to produce desired Actions plans to produce desired resultsresults

End result: Annual operating planEnd result: Annual operating plan


Logistics Logistics

Timetable Timetable

LocationLocation

ParticipantsParticipants

2. Strategy2. StrategyWhere does the new association Where does the new association

fit into the national strategy?fit into the national strategy?


What does the organization What does the organization wants to become?wants to become?

What are the core values of What are the core values of the organization?the organization?

Example ofExample ofVision StatementVision Statement

In five years from today, the In five years from today, the Australian Local Government Australian Local Government

Managers Association will become Managers Association will become the peak professional body for the peak professional body for

aspiring managers.aspiring managers.

MOICT Vision StatementMOICT Vision StatementAn ICT sector in Jordan in which the An ICT sector in Jordan in which the

market is given the widest possible market is given the widest possible scope to contribute to improved scope to contribute to improved services and to the economic growth of services and to the economic growth of the country. It is the Governmentthe country. It is the Government’’s s policy to give the ICT market incentive policy to give the ICT market incentive to contribute significantly to economic to contribute significantly to economic and social development by creating and social development by creating the legal, institutional, and commercial the legal, institutional, and commercial environment in which the ICT market is environment in which the ICT market is nurtured, grown, and sustained.nurtured, grown, and sustained.

Example of Vision Example of Vision StatementStatement

The vision for the North Tennessee The vision for the North Tennessee Workforce Board is to deliver an Workforce Board is to deliver an employer-led workforce system employer-led workforce system providing employers with qualified providing employers with qualified and responsible employees.and responsible employees.

4. Mission 4. Mission

Statement should tell Statement should tell why why the organization existsthe organization exists

How the organization How the organization intends to act to fulfill intends to act to fulfill its roleits role

Mission StatementMission Statement

Should identify: Should identify: primary service primary service regulatory and/or policy regulatory and/or policy functions functions target clientstarget clients techniques for providing techniques for providing serviceservice

Peter Drucker Managing the Peter Drucker Managing the Non-Profit Organization Non-Profit Organization

With the limited resources we have, where With the limited resources we have, where can we really make a difference? What do can we really make a difference? What do we really believe in? Are we likely to do a we really believe in? Are we likely to do a decent job? Every mission statement has to decent job? Every mission statement has to reflect opportunities, competence, and reflect opportunities, competence, and commitment. If it doesn't have those three commitment. If it doesn't have those three things, it will not mobilize the human things, it will not mobilize the human resources of the organization for getting the resources of the organization for getting the right things done.right things done.

Who are we?Who are we?

Written and agreed-upon foundation for Written and agreed-upon foundation for all organizational effortall organizational effort

Statement of purpose and reasons for Statement of purpose and reasons for existingexisting

It answers the question "What kind of It answers the question "What kind of organization is this; why does it exist; organization is this; why does it exist; and who does it serve?" and who does it serve?"

Should inspire commitment and loyalty Should inspire commitment and loyalty Should be widely communicatedShould be widely communicated

Example of Mission Example of Mission StatementStatement

The Ministry of Communications and The Ministry of Communications and Information Technology wasInformation Technology wasestablished to be a pragmatic established to be a pragmatic expression of Egypt’s commitment to expression of Egypt’s commitment to boosting the telecommunication boosting the telecommunication services sector, and to develop services sector, and to develop Egypt’s information society and create Egypt’s information society and create a CIT industry capable of competing a CIT industry capable of competing internationally. internationally.


The mission of Int@j, a The mission of Int@j, a voluntary nonprofit, private voluntary nonprofit, private organization in Jordan, is to organization in Jordan, is to effectively represent, promote, effectively represent, promote, and advance the Jordanian and advance the Jordanian software and information software and information technology services industry in technology services industry in the global market.the global market.


The fundamental purpose of the Jordanian The fundamental purpose of the Jordanian Ministry of Information Technology is to Ministry of Information Technology is to provide services of such quality in the provide services of such quality in the area of telecommunications that our area of telecommunications that our constituents will receive superior value, constituents will receive superior value, our employees and partner ministries our employees and partner ministries will share in our success, and our will share in our success, and our taxpayers will benefit from sustained taxpayers will benefit from sustained economic growth.economic growth.


Establish specific targetsEstablish specific targets

Accomplish targets by specific Accomplish targets by specific timetime

Achieve agreed-upon Achieve agreed-upon milestonesmilestones

Implement specific, measurable Implement specific, measurable resultsresults

Examples of Strategic Examples of Strategic ObjectivesObjectives

Over the next five year:Over the next five year: GDP will grow by 5%GDP will grow by 5% The unemployment rate will The unemployment rate will be reduced by 5% per yearbe reduced by 5% per year The crime rate will be reduced The crime rate will be reduced by improving our law by improving our law enforcementenforcement

Int@j’s Strategic Int@j’s Strategic ObjectivesObjectives

Advocate industry issuesAdvocate industry issues

Promote industry investmentPromote industry investment

Prove industry research and Prove industry research and marketing informationmarketing information

Advance intellectual property Advance intellectual property rightsrights

Int@j Strategic Objectives Int@j Strategic Objectives (Continued)(Continued)

Effect standardization & quality Effect standardization & quality controlcontrol

Support human resourcesSupport human resources

Form international IT alliancesForm international IT alliances

Manage industry stakeholder Manage industry stakeholder relations relations

Resolve industry conflictsResolve industry conflicts

6. Model Organization6. Model Organization

Your idea of a model Your idea of a model associationassociation By each programBy each program By critical indicators of successBy critical indicators of success By major steps necessary to By major steps necessary to achieve missionachieve mission

7. Performance Review7. Performance ReviewIdentify:Identify: Strengths and weaknessesStrengths and weaknesses Opportunities and threatsOpportunities and threats

Measure: Measure: Past performance to Past performance to performance targetsperformance targets Inputs and outputsInputs and outputs

8. Gap Analysis8. Gap AnalysisIdentify gaps between current Identify gaps between current performance and desired performance and desired performanceperformance

9. Action Plans9. Action PlansProduce SMART Results: Produce SMART Results:

S pecificS pecific

M easurableM easurable

A chievableA chievable

R esourcesR esources

T ime LinesT ime Lines

9. Action Plans9. Action Plans Determine appropriate Determine appropriate organizational structureorganizational structure

Identify other groups that must Identify other groups that must support effortssupport efforts

Assign tasks managersAssign tasks managers

Create communication planCreate communication plan

9. Action Plans (Continued)9. Action Plans (Continued)

Identify needed management Identify needed management approaches, styles and modificationsapproaches, styles and modifications

Identify needed modifications in Identify needed modifications in motivation, rewards, training, motivation, rewards, training, knowledge systems, processes and knowledge systems, processes and toolstools

Develop budget for each action planDevelop budget for each action plan

10. Reviews and Updates10. Reviews and Updates

Set up monitoring and Set up monitoring and evaluation process for Strategic evaluation process for Strategic PlanPlan

Keep monitoring and evaluation Keep monitoring and evaluation process as simple as possibleprocess as simple as possible

What should be What should be monitored and evaluated?monitored and evaluated?

Increased productivityIncreased productivity

Improved effectivenessImproved effectiveness

Enhanced quality of Enhanced quality of serviceservice

Timeliness of your workTimeliness of your work

Why monitor and evaluate Why monitor and evaluate the strategic plan?the strategic plan?

To help make better decisionsTo help make better decisions

To allow better performance To allow better performance appraisalsappraisals

To foster responsibility among To foster responsibility among managersmanagers

To stimulate public interestTo stimulate public interest

To make public discussions more To make public discussions more factualfactual

What Gets Measured What Gets Measured Gets DoneGets Done

If you don't measure results, you If you don't measure results, you cannot tell success from failure. cannot tell success from failure.

If you can see success, you can If you can see success, you can reward and learn from it.reward and learn from it.

If you cannot see success... If you cannot see success...

You are probably rewarding failure. You are probably rewarding failure.

If you can recognize failure, you can If you can recognize failure, you can correct it. correct it.

If you can demonstrate results, you If you can demonstrate results, you can win public support.can win public support.

Ten Steps for Ten Steps for Monitoring and Evaluating Monitoring and Evaluating

1. Determine decision makers 1. Determine decision makers and processes for M & Eand processes for M & E

2. Identify Action Plan to be 2. Identify Action Plan to be monitored and evaluatedmonitored and evaluated

3. Identify indicators for inputs, 3. Identify indicators for inputs, outputs, efficiency, and outputs, efficiency, and productivityproductivity

Ten Steps for Ten Steps for Monitoring and EvaluationMonitoring and Evaluation

4. Determine appropriate time frame 4. Determine appropriate time frame and amount of data to be collected and amount of data to be collected for M & E (monthly, quarterly, and/or for M & E (monthly, quarterly, and/or annually)annually)

5. Collect data and report performance 5. Collect data and report performance based on indicatorsbased on indicators

Ten Steps for Ten Steps for Monitoring and EvaluatingMonitoring and Evaluating

6. Make recommendations for 6. Make recommendations for maintaining current Action Plans maintaining current Action Plans or for changing Planor for changing Plan

7. Determine who or what is 7. Determine who or what is causing changes to be madecausing changes to be made

8. Determine if changes should be 8. Determine if changes should be mademade

Ten Steps for Ten Steps for Monitoring and EvaluatingMonitoring and Evaluating

9. Analyze and update Plan9. Analyze and update Plan

10. Inform all interested parties of 10. Inform all interested parties of changeschanges

Ask Key QuestionsAsk Key Questions

Are the Action Plans being Are the Action Plans being achieved on time and on budget?achieved on time and on budget?

Should the deadlines be changed Should the deadlines be changed and resources added?and resources added?

Are the Plans still realistic and still Are the Plans still realistic and still fit within the vision and mission?fit within the vision and mission?

Strategic Planning ProcessStrategic Planning Process


2. Identifiable National 2. Identifiable National Strategy Strategy


4. Mission4. Mission


Strategic Planning Process Strategic Planning Process 6. Model Operations6. Model Operations

7. Performance Review7. Performance Review

8. Gap Analysis8. Gap Analysis

9. Action Plans9. Action Plans

10. Review and Update10. Review and Update

Process ResultsProcess Results

Annual Operating PlanAnnual Operating Plan

Day-to-day ActivitiesDay-to-day Activities

Specific Action PlansSpecific Action Plans

Measurable ResultsMeasurable Results

Accountability Accountability

Needed Resources (Budget)Needed Resources (Budget)

DeadlinesDeadlines

THE BEGINNINGTHE BEGINNING

The Turkish Cypriot The Turkish Cypriot Community 2007Community 2007

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A PROCESS FOR STRATEGIC PLANNING © By Larry Milner Global Strategy Consultants