Why is Strategic Planning so Important?

1. Limited and increasingly expensive resources

2. Real opportunities and threats?

3. Opportunity costs

4. Diversity of competition

5. Increasing Expectations

6. Responsibility and accountability

7. Internal and External Support

Strategic Planning

-Ed Mahoney, MSU

2. Suggest or are linked to accomplishment benefits

3. Suggest or identify publics, customers or partners

4. Specific and measurable: guidance, evaluation

5. Feasible - Financial Technology, Staff, Marketing, Management

6. Give rise to alternatives: products, services...

7. Acceptable

8. Understandable

Strategic Planning

Ed Mahoney, MSU

Strategy and Strategic Marketing Plans

Strategy = an integrated, feasible and manageablesequence of internally consistent and externallyrelevant resource allocation decisions.

The strategy establishes a framework/direction inwhich it pursues its objectives.

A plan is the explicit documentation, description andcommunication of vision, mission, and objectives.

Strategic Planning

Ed Mahoney, MSU

Strategic Management

The continuous process of managing an organizationand its different functions such that it is consistentwith mission and achieves its objectives.

1. Stewardship of the vision2. Hierarchy of objectives3. Alignment of organizational structures, policies and functional strategies and tactics with mission and strategic objectives4. Strategic investment5. Performance measurement

Strategic Planning

Ed Mahoney, MSU

Strategic Planning Process

1. Environmental Scanning

2. Internal Analysis and Audits

3. S-W-0-T

4. Mission

5. Objectives

6. Strategies

7. Alignment - FIT

8. Implementation

9. Performance Monitoring

Strategic Planning

Ed Mahoney, MSU

Mission Strategic Objectives

Example: Image

Portfolio Marketing Service Relationships

CommunicationPricing

BrochureObjectives

NewsletterObjectives

Display

Objectives

Strategic Planning

Ed Mahoney, MSU

Evaluation & Control

Mission & Objectives

Financial Mgmt. Human Resource Mgmt. NR/Facility Mgmt. Visitor Mgmt.

Marketing Partnerships Internal External

Portfolio• Facilities• Services• Events• Programs• Products

Board & Director

Strategic Planning

Ed Mahoney, MSU

StrategicAudit

ControlVulnerability

InternalAssessment

External

Envir.

Opportunities Threats

Strengths Weaknesses

Objectives & Strategies

Implementation

Management Marketing

Strategic Planning

-Ed Mahoney, MSU

Objectives

Mission

Envir.Scanning

S.W.O.TInternalAnalysis

Opportunities Threats Strengths Weaknesses

Monitoring Performance

System

s

StewardshipAlignm

ent-Allocation

Strategies

Marketing, Finance Human Resources

Strategic Planning

Ed Mahoney, MSU

Strategic Planning and Concept of Fit

Fit relates to the extent to which:

• various organizational objectives• facilities, services and products• different function: marketing, maintenance, security• different activities comprising functions, e.g., marketing mix- pricing, service quality, marketing communications

work together to:

• accomplish mission and strategic objectives• create and deliver customer relevant values• enhance relationships with priority publics• enhance organizational image• build future capability

Strategic Planning

Ed Mahoney, MSU

Strategic Fit

Financial Fit

Market Fit

Portfolio Fit

Future Fit

Functional Fit

Environment Fit

Competency Fit

Marketing Mix Fit

Strategic Planning

Ed Mahoney, MSU

FinancingFund RaisingPartnerships

Product-Service PortfolioMarketing

Public RelationsStaffing

Concept of Fit Concept of Management

Concept of Future publics image products-services

How productsservices, functionsactivities and partnerships fit

How it willfund, organize,evaluate, recruit,motivate...

Strategic Planning

Ed Mahoney, MSU

Staff

Strategy Structure

Systems

Skills

Style of Management

SharedValues

Seven-S Framework

Strategic Planning

Ed Mahoney, MSU

Organization VolunteerContributors

Customers

Competition

PartnersDemographics

TechnologyEconomics

Culture

Strategic Planning

-Ed Mahoney, MSU

S-W-O -T Analysis

Strength - An attribute, skill or relationship that enhances an organization’s ability to achieve mission and enhance its future position.

Weakness - An attribute, skill or relationship that reduces an organization’s ability to achieve mission and limits its future position.

Opportunity - A change in the external environment that an organization can capitalize on to achieve mission and/or enhance its future capability.

Threat - A change in external environment that inhibits/lessens anorganizations ability to achieve mission and/or enhance its futurecapability.

W-O-T- S UP

Strategic Planning

-Ed Mahoney, MSU

Environmental Scanning

Analyzing [trends] in relevant environmental factors that will impact on an organizations ability to accomplish its purpose/mission, objectives, functional strategies, and position itself for future success.

The external environment is exogenous to the organization.

A primary purpose of environmental scanning:

1. Information to identify and assess opportunities and threats.

2. Determine organizational vulnerabilities.

3. Positioning strategies.

4. Market[publics and partnerships].

Strategic Planning

-Ed Mahoney, MSU

Strategic Audits

Analysis of performance and whatever seriously affectsit. The aim is to enhance relevance, quality andefficiency of activities, programs, products, services.

1. Environment Context that have potential impact on organizational mission, objectives, capabilities, products, relationships.

2. Performance

3. Future contribution, relevance, and feasibility

4. Forum for sharing perspectives and insights.

Strategic Planning

Ed Mahoney, MSU

Low

M

ediu

m

H

igh

Organizational Capabilities

Mar

ket/

Act

ivit

y P

oten

tial

High Medium Low

Strategic Planning

Ed Mahoney, MSU

Current and Future Performance of F-P-P-S

Low Future Growth Potential High

Cur

rent

Rev

enue

s

Low

H

igh

Strategic Planning

Ed Mahoney, MSU

Organizational Competencies

Mar

keti

ng

Fun

d R

aisi

ng

Par

tner

ship

s

Ser

vice

Man

agem

ent

Int e

r pre

tati

on

E

vent

s

StrategicImportance

Tra

diti

onal

Pro

gram

min

g

Strategic Planning

Ed Mahoney, MSU

Maintenance

Programming

Visitor Security

Visitor Services

Interpretation

Accessibility

Marketing

Poorer No DifferenceMoreBetter

Public Important

Public Evaluated

Strategic Planning

Ed Mahoney, MSU

ST

RE

NG

TH

WE

AK

NS

ES

S

OPPORTUNITIES THREATS

No technology capabilities

Fundraising

New generationof folkies

Finance

Member Services

Strategic Planning

Ed Mahoney, MSU

Mission Statement

A statement of purpose and vision.

It should be future oriented, not a description of current purpose and activities. It should be developedin the context of the “expected future.”

The mission statement should frame the objectives,functional strategies and tactics.

The mission statement should present a challenge.

An organization’s mission statement must communicate,and enlist support for its mission and vision.

Strategic Planning

Ed Mahoney, MSU

Mission

Priority publicsBeliefsPortfolioTechnologiesTo survive and be successfulDesired Image

1998

2005

Strategic Planning

Ed Mahoney, MSU

Benefits of Strategic Objectives

1. Defines tangible results - strategic results

2. Enables assessment and marketing of effectiveness

3. Direction and accountability - not just hobbies andactivities

4. Stress potential and recruits expertise.

5. Sets stakeholder expectations

Strategic Planning

Ed Mahoney, MSU

Objective:

1. Increase member awareness of organizational strategies and recruit their expertise and involvement in activities in support of those strategies

OR?

2. Develop and distribute a newsletter.

Compare and contrast two objectives

Strategic Planning

-Ed Mahoney, MSU

Strategic Audit Mission Objectives

Re-Configure Portfolio

Organization Re-Design

NewProcesses &Approaches

Strategic

Management

Culture

Values Capabilities

“Team”

Strategic Planning

-Ed Mahoney, MSU

Organizational Strategy(ies)

1. Creation and satisfactions of customers/members/client

2. Creation of important value(s)

3. Identification of market niches and important purposes

4. Development and application of processes and methods

5. Understand and avoid direct competition

6. Motivation of people and focus of resources toward important purposes.

Strategic Planning

-Ed Mahoney, MSU

Strategy

An approach to acquiring and using resources withinthe context of the environment in order to achievemission and objectives of an organization.

Organizational StrategyMarketing

Tactic Means to carry out strategy. Any strategy can be viewed as a tactic for a higher order strategy.

Pricing Positioning

Fund Raising

Strategic Planning

Ed Mahoney, MSU

Creating and Sustaining Value Added Advantage

AdvantagesValue Added

DisadvantagesValue Deleting

Visitors & Publics Perceptions

Packaging PricingPromotion

Design Program FacilityElements

Management Law Enforcement Maintenance Interpretation

•One price to all•Price discourages some market segments•Only publicity•Not packaged with other attractions

Strategic Planning

Ed Mahoney, MSU

Portfolio Strategy

F

P

S

P

P

F

S

P

F

F

1998 PORTFOLIO

F

PF

PS

S2005 Portfolio

P

P

F

P

P

Strategic Planning

-Ed Mahoney, MSU

Life CyclesFacilities- Events -Products - Services - Organizations

Intr

oduc

tio n

Ear

ly G

row

th

Lat

e G

row

th

Mat

urit

y

Dec

line

TIME

Sal

es/U

se/S

uppo

rt

Different

•Customers

•Management

•Marketing

Strategic Planning

Ed Mahoney, MSU

Con

trib

utio

n to

Mis

sion

a

nd O

bjec

tive

s

Future Capacity

& Potential

Decline Maturity Late Growth Early Intro. Potential Growth

Strategic Planning

-Ed Mahoney, MSU

Facilities-Services-EventsExisting New- Related New-Unrelated M

ark

et

Existing N

ew- R

elated New

-Unrelated

Strategic Planning

-Ed Mahoney, MSU

Evaluate Potential Strategies

Contri

butio

n to M

issio

n

Desire

d Imag

e

Syner

gy

Contri

butio

n to

Obj

ectiv

es

Alte

rnat

ive

Str

ateg

ies/

Tac

tics

Capab

ilites

Strategic Planning

Ed Mahoney, MSU

I

mpa

ct o

f F

acto

ron

Mis

sion

- O

bjec

tives

Organization’s Influence Over Factor

Low High

Posi

tive

Neg

ativ

eVulnerable

Tactics• Neutralize• Minimize

Opportunity

Strategy

-Ed Mahoney, MSU

Strategic Planning

Organizational ControlLow High

Str

ateg

ic I

mpo

rtan

ceM

issi

on -

Obj

ecti

ves

Low

High

Vulnerable

•Monitor•Contingency Plans

Strategy

•Monitor•Review of Strategies

Non-issues Continuous Fine -Tuning

Strategic Planning

-Ed Mahoney, MSU

Strategic Audit

1. Environmental scan

2. Performance analysis/audits including portfolioof products, services, programs….

3. S-W-O-T

4. Importance and vulnerability analyses

5. Strategic implications

Strategic Planning

-Ed Mahoney, MSU

Strength OpportunityThreatWeakness

Statement of Issue

Strategic Implications

Strategic Planning

-Ed Mahoney, MSU

Strategic PlanI. Situation Assessment1. Environment2. Audits3. SWOT

II Mission Statement1. Market-publics2. F-P-P-Ss3. Technologies4. Survival/success5 Image/identity6. Philosophies

III. Organizational Objectives

Organization

DemographicLife-stylesTechnologyCompetitionEconomic/FiscalLegalPolitical

1997 2000

External Internal

Strengths

Weaknesses

Opportunities Threats

2000

Organization

Strategic Plan

1V. Functional strategies

V. Monitoring and Evaluation

Marketing

Fund Raising& Financial Management

Board-Staff

Conference

F-P-P PORTFOLIO ANALYSIS

ASSESS EXISTING F-P-Ps AND NEW F-P-P CONCEPTS

POTENTIAL F-P-P CHANGES

• CLOSE• DOWN-SCALE• IMPROVEMENT• RE-POSITIONING• NEW F-P-Ps • PARTNERSHIP• PRIVATIZATION

ESTABLISH CRITERIA •FIT WITH MISSION•ORGANIZATIONAL OBJECTIVES•MARKET SIZE & MARKET TRENDS•EXPECTATIONS/NEEDS•CUSTOMER/USER SATISFACTION•CAPABILITIES - RESOURCE, STAFF•COST-OPERATING AND CAPITAL •PARTNERSHIP POTENTIAL•SUBSTITUTES/COMPETITION

• RESOURCE CAPABILITY• MARKET FEASIBILITY• ECONOMIC FEASIBILITY• TECHNICAL FEASIBILITY• POLITICAL FEASIBILITY• LEGAL FEASIBILITY• PR FEASIBILITY

FEASIBILITY OF PROPOSED CHANGES

F-P-P LINE & CONSISTENT MARKETING STRATEGIES

F-P-P LINE• NEW F-P-Ps• F-P-P MODIFICATIONS• CLOSINGS• F-P-P PARTNERSHIPS• PRIVATIZATION

MARKETING STRATEGIES

• RE-POSITIONING• DE-MARKETING• NEW F-P-P MARKETING• COOPERATIVE MARKETING

F-P-P AND MARKETING DESCRIPTION & AUDITS

• CUSTOMERS/USERS• PERFORMANCE - OBJECTIVES• SATISFACTION -”QUALITY”• CURRENT CONDITION• NEEDED IMPROVEMENTS• OPERATING COSTS• SUBSTITUTES/COMPLEMENTS• STAFFING • TECHNOLOGY• REVENUES/CONTRIBUTIONS

F-P-P DESCRIPTION & AUDIT

MARKETING AUDIT

• TARGET MARKETS?• AWARENESS/ PERCEPTIONS• MARKETING OBJECTIVES• FEES/CHARGES• COMMUNICATIONS• PROMOTIONS• ACCESSIBILITY• EVALUATION(S) • SERVICE STRATEGY• COOPERATIVE MARKETING

STRATEGIC PLANS

• MISSION• OBJECTIVES• POSITIONING

CURRENT & EXPECTED ENVIRONMENT

ECONOMICDEMOGRAPHICSLIFE STYLESTECHNOLOGY“COMPETITION”

NEW F-P-Ps OPPORTUNITIES

• MARKET/NEED CHANGES• CHANGES IN THE ORGANIZATIONS OBJECTIVES• CHANGES IN F-P-P LINES OF OTHER ORGANIZATIONS• TECHNOLOGY • RECOMMENDATIONS

NEW F-P-P CONCEPTS

• FIT WITH MISSION• DESIRED RESULT/OBJECTIVE• MARKETS• MARKET NEEDS/DESIRES• SIMILAR OFFERINGS• F-P-P ATTRIBUTES• RESOURCES REQUIRED• IMPACTS ON OTHER F-P-Ps• FINANCING

P&R PORTFOLIO MANAGEMENT

1. NEW PROGRAMS, FACITIES, EVENTS, SERVICES, 2. ENHANCEMENT/CHANGE EXISITING PROGRAMS, FACILITIES, EVENTS, SERVICES

3. DROP/ABANDON EXISITING PROGRAMS, FACILITIES, EVENTS, SERVICES

4. PARTNER TO PROVIDE EXISITING OR POTENTIAL PROGRAMS, FACILITIES, EVENTS, SERVICES

5. CONTRACT OR SUBCONTRACT EXISITING OR POTENTIAL PRODUCTS, EVENTS, SERVICES, ACTIVITIES

6. PRIVATIZE

Strategic Planning

-Ed Mahoney, MSU

Factors in Managing Portfolio

1. Revenues and cash flow2. Risk3. Sustainability and opportunities for growth 4. Synergy

shared resourcesrelated knowledge and skillshared imageadditional market(s)greater perceived market value

5. Contribution vs. cost6. Desired organizational image

Strategic Planning

-Ed Mahoney, MSU

F-P-P-S PORTFOLIO DECISION CRITERIA

1. ORGANIZATIONAL MISSION & OBJECTIVES

2. SYNERGY WITH OTHER PRODUCTS, PROGRAMS, ACTIVITIES

3. CURRENT AND EXPECTED FUTURE CAPACITY TO DEVELOP, MANAGE, MARKET….

4. RESOURCE GENERATION CAPACITY

5. SUSTAINABLE MARKET FEASIBILITY

6. CURRENTAND LIKELY FUTURE COMPETITION/SUBSTITUTES

7. “RETURN” ON INVESTMENT

Strategic Planning

-Ed Mahoney, MSU

Fac

il iti e

s -P

rogr

ams-

Ev e

nts-

Ser

vice

s

Market

Potential

Revenues

Amount -Flow

Contribution Strategic to Mission Objectives

Competition Investment Required

Payback

Weights and Evaluations

1 + + + + - + - 2 + + + - - + - 3 + + + + - + +4 - - + - - + +5 - - - - - - -6 - - + - - + + 7 - - - - - - -

9 8 7 6 Weights 6 5 4

Strategic Planning

-Ed Mahoney, MSU