2. Workshop Objectives
Introduction to Strategic Planning
Proposed Strategy Framework
Strategy Formulation
o Corporate level (Mission Vision, and Values)
o Strategic Objectives and Indicators
o Business Strategy, Initiatives and Operation
Plan
TABLE OF CONTENTS
4. Workshop Objectives
Understanding the roles &
responsibilities of corporate
different levels clearly
Updating and enhancing
the current strategic plan
Gaining internal
stakeholders buy-in
Understanding the
strategy formulation
process
Agreeing on future
strategy direction
Workshop
Objectives
1
2
3
4
5
6. Introduction to Strategic Planning
What is strategic planning?
Strategic planning is gaining and sustaining competitive advantage. It is a process in which an
organization's leaders define their vision for the future and set goal- oriented actions to gain and sustain
superior performance relative to competitors.
The strategic plan
The product of strategic planning is a strategic plan. It is often reflected in a plan document or other
media. These plans can be easily shared, understood and followed by various people including employees,
customers, business partners and investors.
Strategic Planning Vs Business Planning
Strategic planning typically represents mid- to long-term goals with a life span of three to five years,
though it can go longer. This is different than business planning, which typically focuses on short-term,
tactical goals, such as how a budget is divided up. The time covered by a business plan can range from
several months to several years.
Updating the strategic plan
Organizations conduct strategic planning periodically to consider the effect of changing business,
industry, legal and regulatory conditions. A strategic plan may be updated and revised at that time to
reflect any strategic changes.
7. The key to successful strategic planning is to build in measures and implementation steps that allow you to engage your staff
and monitor the results at regular intervals. Below are the top 5 benefits of strategic planning:
Introduction to Strategic Planning
Strategic Planning Benefits
It sets up a sense of direction,
and helps to define the
direction in which an
organization must travel, and
aids in establishing realistic
objectives and goals that are
in line with the vision and
mission charted out for it.
It helps to increase market
share and profitability. An
approach that is targeted
and well-strategized to turn
all sales and marketing
efforts into the best possible
outcomes can help to
increase profitability and
market share.
It increases operational
efficiency, and guides
management
discussions and decision
making in determining
resource and budget
requirements to
accomplish set
objectives.
It can make a business
more durable, with
constantly changing
industries and world
markets, organizations
that lack a strong
foundation, focus and
foresight will have
trouble riding the next
wave.
It allows organizations to be
proactive rather than
reactive, it allows
organizations to foresee
their future and to prepare
accordingly.
8. The following are four aspects of strategy development that worth attention:
Introduction to Strategic Planning
Strategic Development Aspects
Most planning uses SMART goals --
specific, measurable, achievable, realistic
and time-bound -- or other objectively
measurable goals. Measurable goals are
important because they enable business
leaders to determine how well the
business is performing against goals and
the overall mission.
Strategic planning helps business leaders
periodically evaluate progress against the
plan and make changes or adjustments in
response to changing conditions.
Strategic planning starts with a mission
that offers a company a sense of purpose
and direction. The organization's mission
statement describes who it is, what it does
and where it wants to go. Missions are
typically broad but actionable.
Strategic planning relates directly to short-
term, tactical business planning and can
help business leaders with everyday
decision-making that better aligns with
business strategy.
Mission,
Vision, and
Values
The Goals
Alignment with
short-term
goals
Evaluation and
revision
9. Mintzberg’s Strategy Model
According to Mintzberg, developing a good strategy is difficult. With the help of the 5 P’s of Strategy, you can at least include as many different
aspects as possible and approach the strategy from different perspectives. The 5 P’s stand for:
Earlier patterns are an
important part of developing
the new strategy. It’s about a
regular pattern in the
decision-making flow. If
certain choices have already
been made in the past, an
organisation is likely to
make those decisions again
in the future.
Pattern
A strategy is a plan for
dealing with situations. A
plan must be made before
possible actions are taken
and it’s also important that
the plan is followed
consciously and effectively.
Plan
This is about the
organisation’s position in the
market, the interaction
between the internal and
external context. It’s
important to consider
carefully in advance how the
organisation wants to
position itself.
Position
Strategy is about more than
the chosen position; it’s also
about the larger perspective.
It’s important to find out how
different target audiences
perceive the organisation.
How do the employees
regard their employer? What
do customers think of the
organisation? What is their
image among investors?
Perspective
It’s also a strategic choice to
use a ploy. For instance, one
that competitors don’t
expect. Organisations can
surprise their environment
by implementing a plan that
nobody saw coming.
Ploy
10. Mintzberg’s Emergent Strategy
Emergent strategy is an action model that describes a business strategy that develops over time as a business balances its goals with changing
circumstances. These strategies emerge after a business carries out a set of actions repeatedly to develop a pattern in its habits. Emergent
strategy differs from deliberate strategy in business because the pattern of an emergent strategy is by definition unintended.
Collaboration
Adaptation
The ability of a
company's employees to
collaborate to solve
problems can lead to
emergent strategies that
help companies address
change.
Businesses can commit to
using discovery as a
driving force for
developing strategies and
processes.
Learning
The ability to adapt to
changing circumstances can
help businesses create
strategies that are flexible
and scalable.
Principles of
Emergent
Strategy
11. OGSM Strategy Model
OGSM is a business-planning framework that helps organizations link their long-term visions and strategies to short- and medium-term goals,
actions and measures. It can help you to monitor progress toward your goals, and maintain focus along the way. The way that you use OGSM will
depend on a range of factors, such as your business model, your organization's structure and culture, and the way you make decisions.
You can apply it by following these four steps:
M
S
O G
O: Set Out Your Objective
First, think about your main objective. To do
this you need to gain a full understanding of
your organization's strategy. From this, you
need to create a very clear, concise
statement of your objective.
G: Choose Your Goals
Once you have your objective in place, set
out quantitative results of what success will
look like. Be sure to make them SMART –
specific, measurable, attainable, relevant,
and timebound.
S: Develop Your Strategies
When you've established your objectives and
goals, your next step is to outline how you
will achieve them. These are your strategies,
and you should aim to identify three to five
that will ensure you reach your goals.
How you measure progress depends on
the strategies you are trying to deliver. But,
in all cases, it's good to bear the following
questions in mind when developing them;
Are our strategies working? Are we going to
meet our goals? Can we realistically
achieve our objectives and vision within
the expected timeframe?
M: Decide on Your Measures
12. The "Strategy House"
The "Strategy House" is a simple but effective way to communicate your strategy. Below is a figure that clarifies the strategy house elements:
The "roof" is your mission statement.
Each of the "pillars"
represents a key theme of
the strategy. Each pillar is
3 "stories" tall.
The top story is the theme
itself. A strategy typically
has 3-5 themes.
The second story is the goals that
make up the theme. What will
success look like for that theme?
The ground story is the initiatives
which will deliver the theme. How
will you do it?
The foundation of the
house is the strategy
enablers.
Enabler 1 Enabler 2 Enabler 3 Enabler 4
13. Balanced Scorecard
Learning and growth
Customers
Finance
Business processes
Analyzed through the
investigation of training and
knowledge resources.
Collected to gauge customer
satisfaction with the quality, price,
and availability of products or
services. Customers provide
feedback about their satisfaction
with current products.
Evaluated by investigating how
well products are manufactured.
Operational management is
analyzed to track any gaps,
delays, bottlenecks, shortages, or
waste.
Such as sales, expenditures,
and income are used to
understand financial
performance. These financial
metrics may include dollar
amounts, financial ratios,
budget variances, or income
targets.
Balanced scorecard (BSC) refers to a strategic management performance metric used to identify and improve various internal business functions
and their resulting external outcomes. It is used to measure and provide feedback to organizations. The balanced scorecard involves measuring
four main aspects of a business: Learning and growth, business processes, customers, and finance.
14. AFI Strategy Framework
AFI Strategy Framework is a model that links three interdependent strategic management tasks that together help firms conceive of and
implement a strategy that can improve performance and result in competitive advantage. The following are the 3 Tasks of the AFI Strategy
Framework:
h
Analyze
• The strategic Management Process, External Analysis, Internal
Analysis, and Firm Performance.
h
Formulate
• Business Strategy, Corporate Strategy, and Global Strategy.
j
Implement
• Business Strategy, Corporate Strategy, and Global Strategy.
15. Top-down and Bottom-up Strategic Planning
All successful businesses have one important trait in common: planning. In order to start and maintain a profitable business, careful and well-
thought-out strategies must be deployed across all divisions. Top-down and bottom-up planning are two of the most common strategies found in
modern businesses.
Bottom-up planning
Top-down planning
Definition
Starts from the top of the company’s hierarchy. Management
develops an all-encompassing framework that includes goals
essential for the success of the business. These targets are then
communicated down the chain of command and shape the workflow
of each department. The specifics of how to achieve the target are
left for the frontline workers to develop. In top-down strategic
planning, the goals are set to address the bigger picture and long-
term plans of the company.
Starts from the workers on the front lines. Instead of being
communicated down from management, goals are communicated up
from individual departments. Each division is given the opportunity to
identify its potential for growth. The philosophy behind this method is
that each sector knows their workflow best and can develop more
meaningful and achievable targets. The goals that are communicated
up to management are analyzed by the executives and formed into a
cohesive plan for the whole company.
Advantages
• Targets can be set quickly for the whole business.
• Targets are global.
• Because it is generated at a department level, it results in a
higher engagement rate from workers.
• Each key performance indicator (KPI) has been carefully crafted
to help departments reach their potential.
• The deployment of targets has a higher success rate.
• There is no extra effort required by each department to transform
a global target into meaningful KPIs.
Disadvantages • The company goals might not be accepted by managers in every
department.
• Because the goals are set by each subsection of the organization,
management will have to work harder to amalgamate each
approach into a single company-wide message.
