Strategic Planning first entry - that everybody should know

STRATEGIC PLANNING
F I R S T E N T R Y

ABDULLAH ALKHADRAWY, PMP, RMP
2

Prepared by
 BSc.Civil Engineering (V. Good HONS) 2006
 Graduation Project (Project Management)
2006.(Excellent graded)
 Achieved PMI-PMP®April2011
 Achieved PMI-RMP®April2016
 Certified by Primavera Inc. ® : Advanced user for
Primavera P6 (2008).
 Certified by Primavera Inc. ® : Advanced user for
primavera Contract Manager 12 (2009).
 Working as: Sr. Planning Engineer
Abdullah Ahmed Al-Khadrawy
3

Strategic Planning
•Organization's process of defining its strategy, or
direction, and making decisions on allocating its
resources to pursue this strategy. It may also extend
to control mechanisms for guiding the
implementation of the strategy .
ABDULLAH ALKHADRAWY, PMP, RMP 4

5

Strategic Planning
1)VISION
2) MISSION
3) OBJECTIVES
4) STRATEGIES
5) IMPLEMENTATION
6) MONITOR & CONTROL
6

1) VISION

1)VISION
VISION
• Each firm should determine certain core
values and purpose to be followed and
planned based on them.
• The firms core values and purpose
constitutes its core ideology and remain
relatively constant.
• They are independent of industry structure
and the project/product lifecycle.

2) MISSION

Mission Statement
• Captures the essence of why the organization
exists – Who we are, what we do.
• Explains the basic needs that you fulfill.
• Expresses the core values of the organization.
• Should be brief and to the point.
• Easy to understand.
• If possible, try to convey the unique nature of your
organization and the role it plays that differentiates
it from others.
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2) MISSION
COREVALUES
VISIONARY
GOALS
CORE
PURPOSE
• Communicate the firms core ideology (the
vision) and its visionary goals.
• Generally be represented by three
components:
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2) MISSION
COREVALUES
VISIONARY
GOALS
CORE
PURPOSE
 Few values (i.e. around five).
 Reflect the deeply assessed values of the
organization.
 Independent the current industry environment,
and the management fads.
 Will not change even if the organization changed
the applied industry.
 Fixed against business/ circumstances / or
industry changes.
 E.g. excellent customer service, pioneering
technology, creativity, integrity, & social
responsibility.
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2) MISSION
COREVALUES
VISIONARY
GOALS
CORE
PURPOSE
 The organization's fundamental reason for
being.
 Broad, fundamental and enduring;
 A good purpose should serve to guide and
inspire the organization for years, perhaps
a century or more.
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2) MISSION
COREVALUES
VISIONARY
GOALS
CORE
PURPOSE
 The lofty objectives that the company's
management decides to pursue.
 Describes some milestones that the
company will reach in the future and may
require a decade or more to achieve.
 Longer term and more challenging than
strategic or tactical goals.
 Challenging enough so that people nearly
gasp when they learn of them and realize
the effort that will be required to reach
them.
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2) MISSION
COREVALUES
VISIONARY
GOALS
CORE
PURPOSE
Most visionary goals fall into one of the following categories:
 Target - quantitative or qualitative goals such as a sales
target or Ford's goal to "democratize the automobile.“
 Common enemy - centered on overtaking a specific
company such as the 1950's goal of Philip-Morris to
displace RJR.
 Role model - to become like another company in a
different industry or market. For example, a cycling
accessories company might strive to become "the Nike of
the cycling industry."
 Internal transformation - especially appropriate for
very large corporations. For example, GE set the goal of
becoming number one or number two in every market it
serves.
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2) MISSION STATEMENT EXAMPLES
To Explore the Universe and Search for Life and to Inspire the
Next Generation of Explorers
To Make People Happy
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Today, shared values are more essential than ever before-for enterprises, for individuals and for the
globally integrating society of the 21st Century.
Dedication to every clients success
Innovation that matters – for our company and the world
Trust and responsibility in all relationships
McDonald’s brand mission is to be our customers’ favourite place and way to eat. Our worldwide
operations are aligned around a global strategy called the Plan to Win, which center on an exceptional
customer experience – People, Products, Place, Price and Promotion.We are committed to
continuously improving our operations and enhancing our customers’ experience.
17

At Microsoft, our mission and values are to help people and
businesses throughout the world realize their full potential
Google’s mission is to organize the world’s information and make
it universally accessible and useful.
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3 ) O B J E C T I V E S

3 ) O B J E C T I V E S
• Guided by the business vision
• Measurable financial and strategic objectives.
• Financial objectives involve measures such as: sales targets
and earnings growth.
• Strategic objectives are related to the firm's business
position, and may include measures such as market share and
reputation.
20

4) S T R AT E G I E S

4 ) S T R AT E G I E S
• First step to make environmental scan.
• Then make studies and analysis till the limit that is
necessary for guiding the business strategy.
• Making market analysis using the useful tools e.g.
SWOT analysis, or Porter’s five forces model.
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• Four elements in a 2×2 matrix.
• Strengths: characteristics of the business
that give it an advantage over others
• Weaknesses: characteristics that place the
business at a disadvantage relative to others
• Opportunities: elements that the business
could exploit to its advantage
• Threats: elements in the environment that
could cause trouble for the business
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• A graphical representation of Porter's five
forces
• Framework that attempts to analyse the level
of competition within an industry and
business strategy development.
• Draws upon industrial organization (IO)
economics to derive five forces that
determine the competitive intensity and
therefore attractiveness of an Industry.
• Attractiveness in this context refers to the
overall industry
Industry
Rivalry
Bargaining
power of
suppliers
Threat of
substitute
products
Bargaining
power of
customers
Threat of
new
entrants
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• Given the information from the environmental scan, the company
should match its strengths to the opportunities that it has
identified, while addressing its weaknesses and external threats.
• This is accomplished through strategy formulation.
• To attain superior profitability, the company seeks to develop a
competitive advantage over its rivals.
• A competitive advantage can be based on cost or differentiation.
• The strategy main target, to build a plan shall lead the firm to the
success (achieve the objectives).
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5) IMPLEMENTATION

5) IMPLEMENTATION
• The selected strategy is implemented by means of programs, budgets, and
procedures.
• Implementation involves organization of the company's resources and
motivation of the staff to achieve objectives.
• The way in which the strategy is implemented can have a significant impact on
whether it will be successful.
• In a large company, those who implement the strategy likely will be different
people from those who formulated it.
• For this reason, care must be taken to communicate the strategy and the
reasoning behind it. Otherwise, the implementation might not succeed if the
strategy is misunderstood or if lower-level managers resist its implementation
because they do not understand why the particular strategy was selected.

6) MONITOR & CONTROL

6) Monitor & Control
• Continuous activity being applied as parallel to the business
implementation.
• The implementation of the strategy must be monitored and
adjustments made as needed.
• Evaluation and control consists of the following steps:
• Define parameters to be measured
• Define target values for those parameters
• Perform measurements
• Compare measured results to the pre-defined standard
• Make necessary changes

6) Monitor & Control
• Deming Model:
• Plan, Do, Check,Act
• Repeat.
• Record and apply the lessons learned.
• Plan
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Strategic Planning first entry - that everybody should know

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