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Leadership seminar presentation - Daniel Ilunga

This presentation is about what strategic planning is and what its value is to the organisation based on the model suggested by Goodstein et al. (1993 & 2008)

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Leadership seminar presentation - Daniel Ilunga

  2. 2. THEVALUE OF STRATEGIC PLANNING In the secular world
  3. 3. Definitions in the secular context What strategic planning is not Value of strategic planning What is strategic planning is Secular world
  4. 4. DEFINITIONS "Strategic planning is about understanding the organisational challenges, trends and issues; understanding who are the key beneficiaries or clients and what they need; and determining the most effective and efficient way possible to achieve the mandate.A good strategy drives focus, accountability,and results. "- (UN, 2010, Strategic planning Basics for Managers) "Strategic planning is an essential process in preparing to carry out your organisation’s mission. An effective strategic planning process provides a framework to make decisions on how to allocate organisational resources, address challenges and take advantage of opportunities that arise along the way. "- (Paul Yelder, 1999,The Enterprise Foundation)
  5. 5. WHAT STRATEGIC PLANNING IS NOT "Strategic planning should not be confused with other planning processes such as business planning, program planning or community planning, also referred to as neighbourhood planning. Although closely related, strategic planning focuses on establishing your organisational direction, setting priorities and identifying obstacles and opportunities that may limit or enable you to carry out your mission."- (Paul Yelder, 1999, The Enterprise Foundation)
  6. 6. VALUE OF STRATEGIC PLANNING 1. • "Strategic planning helps the organisation focuson establishing your organisational direction,setting priorities and identifying obstacles and opportunities that may limit or enable you to carry out your mission."-(PaulYelder,1999,The Enterprise Foundation) 2. • It can be argued that, traditional planning is like a waterfall model,while strategic planning is the agile methodology. 3. • It’s also about the organisation proactivenessin how it addressesthe unexpected,instead of waiting for problemsto arise, then thinking of how to resolve them.Strategic planning help anticipate and resolve them before they even happen.Reactive vs proactive 4. • It results in a strategic plan that the organisation can use as a framework for implementing their goals and objectives 5. • It helps the organisation become more efficient,sustainable and sets up a sense of direction 6. • Useful for long-term implementation,unlike traditional planning that requiresshort-term implementation
  8. 8. PLANNING TO PLAN • Are we ready to engage into this process? • How committed is the organisation to this costly (time, energy, resources, etc.) process? • Do we have the people required to carry out the tasks?What are the roles to involve in the planning team? • How and when should the process initiate? • How should those indirectly involved in the planning process be informed about the process? • What is the timeframe to carry out this process? • What is the team that will directly be involved in the process? • One of the crucial part of this phase is selecting the planning team, that is,those who will be extensively involved in the strategic planning process. Prior to any planning work,answersto a set number of key questions need to find:
  9. 9. VALUES AND CULTURE Here, values’ scan on the organisation’s decision makers’ is conducted in order to move from the individual or small group focus to a broader assessment of the organisation’s values. This looks at the role of these values in helping implement a sustainable culture for the organisation. This is one of the most difficult parts of the process that requireshighly-skilled strategic planning consultants.The following questions can be asked: • What are the currentvalues of the organisation? • What is the organisational philosophy? • What is the desired culture?
  10. 10. MISSION FORMULATION • What business are we in? • What customer needs are we meeting? • Who are our customers, both now and in the future? • How do we intend to go about meeting our customers’ needs and wants? • Why do we exist? • What values and basic societal needs are we fulfilling? Once the clear organisational values have been identified,the strategic planning team gathers to start developing a coordinated and shared future state of the organisation.In general,mission formulation answersthe following questions are answered: The five elements of a SMART Business goal are considered in this phase (Specific,Measurable,Attainable,Relevant,Time-based).
  11. 11. STRATEGIC BUSINESS MODELLING • how the outcomes or deliverables are measured? • what should be done to reach the desired goals? • how the organisational structure and personnel get affected by the process? This phase is considered as the next step in the strategic planning process, in which the planning team meets to develop specifics, detailed and the procedures to lead the organisation from its current state to the future desired state. The mission formulation is reviewed in order to ensure that the inputs from the previous phase are carried out effetely in the Business modelling phase. The Strategic Business Modelling phase, focuses on defining the clear vision of the ideal future tangibles and measurable tools. It will also specify what the organisation gets involved in,by answering some of the following questions: In order words, the strategic business model phase is a detailed and unambiguous plan to how the organisation will achieve its desired goals and how its mission is fulfilled.It is also a crucial phase in which the strategic planning team works towardsa clear description of the ideal organisational future.
  12. 12. PERFORMANCE AUDIT • SWOT (strengths,weaknesses,opportunities,threats) analysis • Scenario planning • PESTLE (political, economic, social, technological, legal and environmental) • Porter's Five Forces framework At this stage, the planning team have identified and articulated the desired future state as well as how this would be achieved. Now, the focus is to be turned towards a detailed examination of the organisational current state. This is where comes the need to conduct an objective and clear performance audit of the organisation. Business analysis tools become useful in helping the organisation understand its organisational environment and also do a brainstorming activity about the organisation. There are several business analysis tools, but the following are the frequently used ones: SWOT analysis is one of the most commonly used strategic analysis tools. After conducting a SWOT analysis, the organisation can now analyse how to capitalise on the organisational strengths, minimise the impact of weaknesses, make good use of the opportunities and finally reducing the impact of any potential threat proactively.Carrying out a SWOT analysis gives a better internal and external picture of the organisation environment.It should be noted that, SWOT analysis, doesn’t necessarily focus on prioritising on outcomes, which in turn leads to a better strategic planning.
  13. 13. GAP ANALYSIS AND CLOSURE The Gap analysis helps in understanding both the current organisational resources and the future desired state. Following questions can be considered: How important is the Gap between the current state of the art in the organisation and the desired future state? It also asks whether the desired organisational goals are achievable considering the current organisation state? What it will take to close the gap and how this can be done? After identifying the Gap size, a decision can then be made on whether the organisational desired goals can be met or it’s an impossible mission.
  14. 14. FINALISING STRATEGIC DIRECTION/INTEGRATING ACTION PLANS A strategic planning will often include several action plans from the planning process, depending on the organisational size. These must be thoroughly reviewed by the team involved in this phase. The team will consider whether the integration is still in line with the Mission formulation in phase 2.
  15. 15. CONTINGENCY PLANNING Two aspects of the contingency planning are the probability and the impact of events. The assumption made here is that, the actions plans from the planning phase, have a higher probability of implementation success. This is the phase that looks at risks and unplanned scenarios.
  16. 16. IMPLEMENTATION PLAN This will be the process of strategic planning when the organisation implements its strategic plan. Many organisations have used this strategic planning approach as suggested by Goodstein et al. (1993) to adapt to their needs. Most firms would use basics steps of strategic planning as follows:
  17. 17. ALTERNATIVE MODEL Preparing to plan Defining and reviewing organisational vision, mission, and values Performing the value scan (SWOT and others) Identifying strategic issues Developing strategic goals and objectives Implementation plan Monitoring and evaluation The below model is also based on the work of Goodstein et al. (1993,Applied Strategic Planning:How to Develop a Plan that ReallyWorks)and on the second edition of the same book
  18. 18. BIBLIOGRAPHY  Goodstein, L., Nolan,T., & Pfeifer,J.W. (1993). Applied strategic planning: How to develop a plan that really works.NY: McGraw-Hill, Inc.  Goodstein, L., Nolan,T., & Pfeifer,J.W. (2008). Applied Strategic Planning:An Introduction,2nd Edition. NY: McGraw-Hill, Inc.  Paul Yelder,1999,‘The Enterprise Foundation.’ Available at: enterprise-foundation- effective-strategic-planning.pdf  Peters,Tom. (1987) Thriving on chaos. NewYork: Harper & Row  United Nations, 2010,‘Strategic planning Basics for Managers.’Available at: Planning Guide_0.pdf