Strategic Planning and the Planning Process

Planning in the Academy

Strategy and Planning – History and Definitions

Of military origin, applied to a business setting.

In Chinese – “Heiho”“Method of the soldier”

Resources, goals, capabilities, dominance

Strategy in the business setting has matured and grown from these beginnings

James Bryan QuinnA strategy is a pattern or plan that integrates

an organization’s major goals, polices, and action sequences into a cohesive whole. A well-formulated strategy helps to marshal and allocate an organization’s resources into a unique and viable posture based on its relative internal competences and shortcomings, anticipated changes in the environment and contingent moves by intelligent opponents.

Henry Mintzberg “A pattern in a stream of decisions” “Position, perspective, pattern, plan”

Intended (The play book)Deliberate (Following the play book)Emergent (Fumble!)Unrealized (Punt on 4th down)Realized (The outcome of the game)

Two more definitionsPorter:

Decisions that lead to a unique positionWhat you do and don’t doA fit between firm actions and the

environment.Robert

A “picture” of the products, customers, industry segments and geography you will compete in. A future vision of the firm.

Strategy and Planning - the educational contextBlau, Boyer, Astin, Bloom, BirnbaumClark Kerr – Berkeley and the California System

“The status quo is the only solution that cannot be vetoed.” "When `the borders of the campus are the boundaries of our

state,' the lines dividing what is internal from what is external become quite blurred; taking the campus to the state brings the state to the campus." (1960)

Richard Cyert – Carnegie Mellon Cohen and March’s “Garbage Can Model”

William Massey – Stanford Convenience institutions, mass providers and “Brand Name”

Universities

Strategy in Academia Association and Affiliations

ACE AAU CIC NASULGIC ASHE AAHE Society of College and University Planners

Foundation Initiatives Ford Foundation Pew Charitable Trusts Carnegie Foundation for the Advancement of Teaching

Journals New Directions in Higher Education Higher Education

Michael RobertStrategy: Pure and Simple 1993

Distinctive CharacteristicsA very “corporate” viewA focus on driving forces and

communication issuesRobert says while many driving forces are

active in every organization, only one can be the most important – and in turn the organizational “driving force”.

Roberts’ strategic areas:

• Product/service concept• Market type, user/customer class• Production capacity/capability• Technology/know-how• Sales/marketing method• Distribution method• Natural resources• Size/growth or Return/profit

Robert’s 7 Rules of CompetitionThe following are a set of rules that will produce better resultsagainst your competition.Rule 1: Control the “Sandbox”Rule 2: Identify Which Competitors Your Strategy Will AttractRule 3: Anticipate Each Potential Competitor’s Future StrategyRule 4: Draw Competitive ProfilesRule 5: Manage the Competitor’s StrategyRule 6: Neutralize the Competitor’s Areas of ExcellenceRule 7: Choose Your Competitors; Do Not Let Your

Competitors Choose You.

Traditions, Values, and Aspirations

Strengths and Weaknesses: Academic and

Financial

Leadership: Abilities and

Priorities

Environmental Trends: Threats and

Opportunities

Market Preferences, Perceptions, and

Directions

The Competitive Situation: Threats and Opportunities

ACADEMIC STRATEGY

George KellerAcademic Strategy - 1983

John BrysonStrategic Planning for Public and Nonprofit Organizations - 1988

Distinctive CharacteristicRecognizes the unique stakeholder

issues of the not for profit enterpriseCitizensVolunteersThe difficulty to reach goal congruence

Stakeholder Map for a Government

Political Parties

GoverningBody

OtherGovernment

s

Suppliers

Competitors

MediaEmployees Unions

ServiceRecipients

Taxpayers

InterestGroups

GOVERNMENT

Citizens Financial Community

FutureGenerations

Strategic Planning Process

1Initial

Agreement

2

Mandates

3Mission/ Values

4External

Environment

5Internal

Environment

6Strategic

Issues

7Strategie

sResult

s

Action

Resources PerformancePresent Strategy

Forces-Trends Competitors - CollaboratorsCustomers

8Vision of Success

Strengths Weaknesses

Opportunities Threats

ImplementationStrategy Formulation

Bryson’s templates Stakeholder Analysis Mission StatementSWOT Analysis

(Strength Weakness Opportunity Threat)Strategic issue identification worksheetsSolution generation worksheets

Dreams and VisionsBarriersActionsProposals, actions and action steps

Stakeholders Analysis Worksheet

Stakeholder

Criteria used by stakeholder to asses

our performance

Our judgment of our performance

according to these criteria

1.2.3.1.2.3.1.2.3.

George Morrisey Morrisey on Planning - 1996

Distinctive characteristicsDemonstrates the stages of planning

Strategic thinkingLong Range PlanningTactical Planning

A focus on linking tactics to strategyDriving implementation issues

An Excellent source of templates

The Planning Process

Strategic Thinking Long-Range Planning Tactical Planning

Plan Implem

entation and ResultsVa

lues

Mis

sion

Stra

tegy

Visi

on

Key

Stra

tegi

c Ar

eas

Crit

ical

Issu

e A

naly

sis

Long

-Ter

m O

bjec

tive

s

Stra

tegi

c Ac

tion

Pla

n

Key

Resu

lts

Area

s

Crit

ical

Issu

e An

alys

is

Key

Perf

. Ind

icat

ors

Obj

ecti

ves

Acti

on P

lans

Plan

Rev

iew

Critical Issue Analysis and Plan

Potential/Perceived Issue:Date/Information:Possible Reasons:Conclusion(s):Alternative Ways to Address the Issue:Champion:Long-Term Objective(s):Assumptions:Major Actions:

Action Plan FormatObjective:Action Steps

Accountability Schedule

Resources

Feedback Mechanis

mPrimary Others Start Complet

eMone

y Time

Other Morrisey TemplatesPerformance MeasuresPlanning Assessment Checklist

“Planning to Plan”Training, buy in, etc.

Various models but a common process

Appraise the competitive environmentPolitical, Economic, Technical, Social

Forecast environmental trendsAscertain critical success factorsEvaluate the organization’s strengths and

weaknesses Identify strategic issuesEstablish and implement an action planMeasure resultsDevelop feedback loops

Templates and Examples

Bryson

Mission Statement Worksheet

1. Who are we?

2. In general, what are the basic social needs we exist to fill?

3. In general, what do we want to do to recognize or anticipate and respond to these needs?

4. What should our responses be to our key stakeholders?1. 2. 3.

5. What is our philosophy and what are our core values?

6. What makes us distinctive or unique?

SWOT Analysis Worksheet

Internal Strengths1. 2.

Internal Weaknesses1. 2.

External Opportunities1. 2.

External Threats1. 2.

Strategic Issue Identification Worksheet

What is the issue? Be sure to phrase the issue as a question about which your organization can take some sort of action

Why is this an issue? What is it about the conjunction of mission and mandates, external opportunities and threats, or internal strengths and weaknesses that makes this an issue?

What are the consequences of not addressing this issue?

Practical Alternatives, Dreams, or Visions Worksheet

What are the practical alternatives, dreams or visions we might pursue to address this strategic issue?

1.

2.

3.

Barriers Identification Worksheet

What are the barriers to the realization of these alternatives, dreams, or visions?

1.

2.

3.

Major Proposal Worksheet What are the major proposals we might

pursue either to achieve the practical alternatives, dreams, or visions directly or to overcome the barriers to their realizations?1.

2.

3.

Major Actions Worksheet What major actions with existing staff

and within existing job descriptions must be taken within the next year to implement the strategies or proposals?1.

2.

3.

Action Steps Worksheet What action steps must be taken in the

next six months to implement the proposals and who is responsible for the action step?

1. ___ Person Responsible ____________________

2. ___ Person Responsible ____________________

3. ___ Person Responsible ____________________

Templates and Examples

Morrisey

Examples of Key Performance Indicators

Examples of Key Performance IndicatorsKey Results Areas Key Performance IndicatorsReturn/profit Return on investment

Percentage of return on salesNet profit before taxes (dollars)Percentage of gross margin (by product

line)Productivity Dollars of sales per employee

Units per month (by product line)Output per work-hourOutput per employeeOvertime as percentage of payroolDowntimeTurnaround time

Examples of Key Performance Indicators (2)

Examples of Key Performance Indicators (continued)

Key Results Areas Key Performance IndicatorsEmployee development Training investment as percentage of sales

Number of employees on degree planCross-training planNumber of backups per positionNumber of employees with implemented

development plan

Examples of Key Performance Indicators (3)Examples of Key Performance Indicators

(continued)Key Results Areas Key Performance IndicatorsQuality assurance Percentage of first-time acceptance

YieldCost of rework, scrapPercentage of error-free completions (pershift, per employee)Percentage of recidivism (in law

enforcement)Cross-functional Percentage of on-time completionsIntegration Number of unresolved conflicts

Average lead time on support requestsSpecific joint project agreements

Examples of Key Performance Indicators (4)

Examples of Key Performance Indicators (continued)

Key Results Areas Key Performance IndicatorsResearch and Number of new product ideas approved fordevelopment development

Projected dollar value of approved product ideas

Number of new applications for current products/services

Cost of R&D investment: ratio to total budget

Examples of Key Performance Indicators (5)

Examples of Key Performance Indicators (continued)

Key Results Areas Key Performance IndicatorsOrganizational Favorable mentions in mediaImage Public information programs

Involvement in communityInterorganizational cooperative efforts

Legislative relations Response time to legislatorsInquiries handled favorablyFunding approvedMajor programs approved

Planning Assessment ChecklistCurrent Status Action: Who and When

OK Need N/APreplanning FactorsPlanning Process ModelPlanning Roles ClarifiedCEO & Senior Management TeamUnit PresidentPlanning FacilitatorTactical Planning

Key Results AreasCritical Issue AnalysisKey Performance IndicatorsObjectives & Action PlansPlan Review ProcessAdditional ConsiderationsCross-Functional CoordinationUnit Mission Statements & Tactical PlansTrainingPlan Documentation & Communication

Referenced textsStrategy: Pure and

Simple, Michel Robert, ISBN 0-07-053131-5

Strategic Planning for Public and NonProfit Organizations, John Bryson, ISBN 1-55542-087-7

Morrisey on Planning George L. Morrisey ISBN 0-7879-0170-9 ISBN 0-7879-0169-5 ISBN 0-7879-0168-7 http://www.morrisey.com