Strategic Planning - Methods and Tools Contents i.Situation Analysis ii.PEST Analysis iii.SWOT Analysis iv.GAP Analysis v.Root Cause Analysis vi.Force

Strategic PlanningStrategic Planning - Methods and - Methods and

ToolsTools Contents Contents

i.i. Situation AnalysisSituation Analysis

ii.ii. PEST AnalysisPEST Analysis

iii.iii. SWOT AnalysisSWOT Analysis

iv.iv. GAP Analysis GAP Analysis

v.v. Root Cause AnalysisRoot Cause Analysis

vi.vi. Force Field AnalysisForce Field Analysis

vii.vii. Gantt ChartGantt Chart

Strategic Planning - Methods and Strategic Planning - Methods and ToolsTools

I. Situation Analysis - refers to analysis of current status, gaps and internal and external environment and factors that influence its existence and performance, progress and sustainability and also the problems and root causes of problems and possible solutions

Indispensable step in planning

Once the vision and mission are clearly identified, the university must analyze its

– performance levels and status,

– Issues and problems

– internal and external environmental factors

• Internal - strength, weaknesses,

• External - emerging opportunities and threats

– Gaps to be filled and goals to be achieved

– Root causes of problems

– Possible alternative strategies and solutions

Situation Analysis .. Contd.

Situation Analysis proceeds through 4 sequential steps

Step I: Planning

Step II: Data collection and tabulation

Step III: Analysis and Interpretations – gap and problem analyses and root causes and solutions identification

Step IV: Report Preparation – final analysis and report writing


Strategic Planning - Methods and Strategic Planning - Methods and

ToolsTools Situation Analysis .. Contd.

Step I: Planning

Includes identification of • Scope of planning• Project Planning Matrix• Objects of Situation Analysis • Types of data that must be collected from the

identified objects• Sources of data, methods of data collection (i.e. primary

and secondary data)

• Methods of analysis and tools of analysis (i.e. brain storming sessions, PEST, SWOT , GAP Analyses, etc)

Situation Analysis ….. Contd.

Step II: Data collection and tabulation

Project Planning Committee (PPC) has to collect data from primary and secondary sources

- Primary data are usually collected through interviews, rapid appraisals, case studies, tracer studies, etc.

- Secondary data are gathered from published reports and institutional records

- Data are then sorted, tabulated and analyzed and reported.


Situation Analysis ….. Contd

Step III – Analysis and Interpretation

It requires use of several effective, sometimes indispensable tools

Most commonly done through several brain storming sessions involving stakeholders

Commonly used tools at brain storming sessions are– PEST Analysis

– SWOT Analysis

– GAP Analysis

– Root Cause Analysis


Situation Analysis ….. Contd

Step IV: Report Writing (final analysis and report writing)

PPC proceeds to develop the Final report on the format agreed upon at the beginning

Report generated from Situation Analysis is commonly referred as Self-evaluation Report (SER)

SER – provides data, findings, gaps and problems and root causes and recommendation on possible alternative solutions

This will form the basis for synthesis of development plan (sometimes this is refereed as Project Development Framework or Project Planning Framework



II. PEST Analysis

Purpose: Analysis of the external macro-environment in terms of political, economic, and social policies and technological advances and trends (that are usually beyond the institution control) which define boundaries, limitations and opportunities

Method: Conduct in a Workshop environment, brainstorming and moderator listing information and factors relevant to and bearing on the institution mandatory functions under 4 topics.


PEST Analysis …. Contd

Example. _ PEST Analysis for a Higher Educational Institute

Political Factors

– Government policy on higher education

– Government regulations that govern institutions mandatory functions

– Political stability and hence student political ideology and motives

– Workers and students charters

– Etc.

Economic Factors

– Type of economic polices and system

– Government interventions in the market

– Economic cycle stage (e.g. prosperity, recession, recovery)

– Comparative advantage of the country for higher education

– Unemployment rates

– Skill levels of work force

– Etc.


PEST Analysis …. Contd

Social Factors

– Demographic factors – types of students and ethnic composition

– Types of students and their level of competency in languages and ICT

– Expectations – parents, students and employers

– Attitudes of stakeholders

– Learning habits, culture and diversity of stakeholders

– Etc.

Technological Factors

– Recent technological developments and opportunities

– Technology’s likely impact on institutional mandatory functions

– Impact on cost structure

– Etc.



SWOT AnalysisPurpose

SWOT stands for analysis strengths, weaknesses, opportunities of and threats faced by the institution/company.

SWOT is used in many instances for multiple purposes–for rapid rural appraisals, for tracer studies, for case studies, and very often for short consultancy studies leading to development of sectoral development plans to obtain stakeholder participation and views and opinions pertinent to the task or question in hand

SWOT is also used in Situation Analysis for institutional planning. In such instances, SWOT analysis can serve as an interpretative filter to reduce the large amount of information to a manageable quantity of key issues.


SWOT Analysis … contd.

Overall aim of the development plan of any institution is to use the strengths of and opportunities available for the institution to overcome weakness and threats

SWOT is very robust and easy tool that any group could use to extract the required information on strengths, weaknesses, opportunities and threats as perceived by the stakeholders

SWOT is also used as a tool to “internalize” planning process so that the stakeholders get a sense of ownership of the final plan

When analysis is completed a SWOT Profile can be generated and use as the basis of goal setting, strategy formulation and implementation.


SWOT Analysis …. Contd

Method

SWOT analysis is a common, very effective tool used in Brain Storming Sessions to enhance stakeholder participation in discussions and also it is an effective tool in extracting very valuable views and opinions from stakeholders.

SWOT is also used as a filter to extract most important issues and problems emanating from self-evaluation report and identify pertinent problems and likely causes and possible solutions

It is usually performed in a workshop environment with participation of a sample of key stake holders.

Commence with a presentation of key findings of Self Evaluation Report and followed by a discussion.


SWOT Analysis …. Contd

Method … contd.

The moderator of the brainstorming session should not prescribe any listings of strengths, weaknesses, opportunities and threats; let the participants to define them and list.

Then the group is divided into 3-4 groups and each group with a group leader performs a SWOT analysis on the institution using the information gathered from PEST, SER and also based on their own views and perceptions.

This is followed by presentation of group reports and the PPC could use the group reports to prepare SWOT Profile which could form the framework to proceed into the next stages of planning (i.e. gap analysis s and problems analysis, root cause analysis and listing of alternative solutions)



IV. GAP Analysis

Purpose

Identifying the gaps between the current state and the future state or desired state is the beginning point of design and implementation of institutional/university improvement plan

This could be easily accomplished by using GAP analysis

Relatively simple tool that could be applied at the problem analysis situation.

It act as an complementary tool to root-cause analysis.

GAP analysis process can be viewed as a way of preventing institutional planning team concentrating only around problems hence narrowing the scope of improvement plan


GAP Analysis …. Contd

Data Analysis using current and recent data

School Improvement Plan`

GAP is the starting point

GAP

Self-Assessment questions to Identify Current State

Identification of Future State

Problem Statement and Root Cause Analysis`


GAP Analysis …. Contd.

Purpose ….. Contd.

GAP analysis hence could be used to ensure that the improvement process does not jump from identification of problem areas to proposed solutions without understanding the conditions that created the current state.

It is done in conjunction with Root Cause Analysis (RCA) in a brain storming session conducted for Situation Analysis, preferably prior to proceed to RCA


Example - Gap Analysis

0Time

Mar

ket

shar

e

If we do nothing!

Where do we want to be?

The Gap

Example -Gap Analysis – Possible interventions

0

Time

Mar

ket

shar

e

Marketing Mix

Price

Place

Product

Promotion

Process

Physical Evidence

IV. GAP Analysis … contd.

Method

GAP analysis is usually applied in brainstorming session or small group planning session

It could proceed through two steps, provided the problem identification has already completed.

Step 1. Identification of gaps between the current and future desired state and factors led to the current state.

What is the future desired state – e.g. Number one university in Sri Lanka or Highest market share for company products?

What factors or problems led to current state?

What do we need to do or conditions to fulfill or gap to be bridged to reach the desired state?.


IV. GAP Analysis … contd.

Method …. Contd.

Step II: Setting the goal and identification of driving and restraining forces in promoting or preventing accomplishing the goal.

This takes the planning team to the next stage

Root Cause Analysis to identify roots of problems

Force-field analysis to select SMART and champion activities to achieve the goal.



V. Root Cause Analysis

Purpose

As an analytical tool, Root Cause Analysis (RCA) is an essential way to perform comprehensive system-wide review of significant problems as well as the factors leading to them.

Root-cause analysis (RCA) is a popular and often-used technique that helps people answer the question of why the problem occurred in the first place

RCA seeks to identify the origin of a problem. It uses a specific set of steps, with associated tools, to find the primary cause of the problem, so that you can,

determine what happened?

determine why it happened?, and

figure out what to do to reduce the likelihood of happening it again?


Root Cause Analysis …. Contd.

Purpose … contd.

RCA assumes that system and events are interrelated.

For any given problem there may be three types of causes.

Physical causes – tangible, and material terms

Human causes – attitudes, habits and work norms; e.g. people did something wrong or did not do anything that was needed

Organizational causes – systems, processes or policies; e.g. no system is in place or procedures and approaches may be deficient or no institutional policy directive is in place.


Root Cause Analysis ….. Contd.

Method

RCA is usually applied in brainstorming sessions or small group planning sessions

It could proceed through three steps, provided the problem identification has already completed.

Step 1. Identification of possible causal factors

– What sequence of events led to the problem?

– What conditions had allowed the problem to occur?

– What other problems surround the occurrence of the central problem?


Root Cause Analysis …. Contd.

Method … contd.

During Step I: Identify as many causal factors as possible. Too often people identify one or two factors and then stop, but that is not sufficient. With RCA, you don’t want to simply treat the most obvious causes – you want to dig deeper.

Use the following tools to help to identify causal factors:

Appreciation – appreciate the views of stakeholders; ask probing queries such as “so what” to determine all the possible consequences of a fact.

“5 whys” – ask “why” until you get to the root of the problem

Drill down – breakdown a problem into small detailed parts to better understand the big picture.

Cause and effect diagrams – a chart or diagram of all of the possible causal factors to see where the trouble may have begun (eg. fish-bone diagram).


Root Cause Analysis …..contd.

Method … contd.

Step II: Identify Root Causes of Problems

Having identified causal factors, now proceed to ask more probing questions and queries.

This includes,Why does the causal factor exist?

What is the real reason the problem occurred?

At this step tools used in Step I could also be used

Aim of the probing is to dig deeper at each level of cause and effect


Root Cause Analysis …..contd.

Method … contd.

Step III: Recommendation on possible solutions

Having identified the root causes and the roots of each factor, finally, seek possible solutions and make recommendations on possible solutions that would prevent occurring the problem

This may include neutralizing or removing negative forces and

promoting or strengthening facilitating forces or

addressing the deficiencies as regard to physical, human and organizational causes and deficiencies



VI. Force Field Analysis

Purpose

Force Field Analysis (FPA) is a relatively simpler, highly effective way to identify restraining forces as well driving forces of a problem or forces preventing goal accomplishment.

Identifying restraining forces that can prevent occurring the problem or prevent the goal from being achieved, Or

Identifying the driving forces that are pushing the goal accomplishment or driving force that aggravate the problem


Force Field Analysis … contd.

Purpose … contd.

Therefore, FPA provides a framework for developing strategy that helps to achieve the goal or solve the problem

Change strategy or action plan to resolve the problem or achieve the goal could therefore can include

Increasing driving forces

Decreasing driving forces

A combination of both

These usually form activities and sub-activities under the respective goals and/or objectives of the development plan


Force Field Analysis … contd.

Method

Once the planning team through the situation analysis has identified the gaps and problems and root causes, the PPC should proceed to develop goals and actions plans or activity plans that describe how the goals will be accomplished or problem will be resolved.

This is often referred as Formulation Phase of the Planning Cycle and it is useful at this stage identify any barriers they may encounter that prevent goal accomplishment.

FPA is a effective and yet simple tool to apply for this purpose.


Force Field Analysis …. Contd.

Method …. Contd.

This is done following completion of problem analysis.

This could best be accomplished in a small group discussion with key stakeholders through a brain storming session.

List the goals to be accomplished or problems to be resolved (suggestion - reword problem statement into a statement of goals to be achieved)

Ask the stakeholders the two questions

List the goal on the top of a worksheet.

What are factors or forces that will prevent us accomplishing the goal? – List the factors on the right side of worksheet

What are the factors that will prevent us achieving the goal?.- List factors on the left side of worksheet


Force Field Analysis …. Contd

Goal or Problem

Driving Forces Restraining Forces

(Factors Facilitating Goal Attainment) (Factors Inhibiting Goal Attainment)


Force Field Analysis …. Contd.

Method ….. Contd.

Once you have identified the driving forces and the restraining forces, the next step is to determine what can be done to strengthen the driving forces and minimize the retraining forces.

This can be done in many ways. Easiest way s to ask the participants what could we do to reduce the impact of restraining forces or strengthen the impact of driving forces


VI. Force Field Analysis

Method

Through this process

identify most effective 2 or 3 actions that could be taken to minimize the effect of restraining forces

identify most effective 2 or 3 actions that could be taken to strengthen the impact of driving forces.

This exercise is repeated until you get a list of SMART activities for every key problem or goal identified

Finally proceed to work out the detailed activity plans as prescribed.



VII. Gantt Chart

Bar Chart, arranged in columns and rows that illustratesi) Project Work Breakdown Structure

(WBS)ii) Implementation time schedule iii) Progress achievediv) Persons-in-charge (PICs) and v) other important details of the project


VII. Gantt Chart

WBS refers to summary elements ( main activities) and terminal elements (sub-activities ) of the project with essential details

Gantt Chart, developed on Excel Worksheet will depict the WBS, implementation schedule, progress achieved, etc. on a single sheet or screen

Gantt Chart could be designed to cater for the needs of the Project Planning and Implantation Team and it could be updated on periodic intervals


VII. Gantt Chart …. Contd. - Example on MS Excel template



Thank you

Documents

Strategic Planning - Methods and Tools Contents i.Situation Analysis ii.PEST Analysis iii.SWOT Analysis iv.GAP Analysis v.Root Cause Analysis vi.Force