12/6/2012
STRATEGIC PLANNING Thursday 6 December, 2012
Dr. Yasser El-Wazir Head of the Department of Physiology Faculty of Medicine - Suez Canal University FAIMER fellow Planner of Leadership Module in DHPE ywazir@med.suez.edu.eg ywazir@hotmail.com
Strategic Planning Workshop Objectives By the end of this workshop, the participants should be able to: • Define strategic planning, and list its essential steps • Develop a mission and a shared vision • Perform an environmental scan using SWOT analysis • Develop strategic goals • Formulate a measurable result • Draft an action plan
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What is Planning?
How can we get there? Where we want to be in the future? Where are we now?
Why do planning? It provides the following: • A sense of direction • Better awareness of needs, environmental trends • More sensible allocation of resources. • A proactive style of management. • Standards of evaluation of performance.
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Forms of Planning-1 • Long-range planning Developing strategies that direct the organization to achieve its long-term objectives • Strategic planning Developing goals and strategies that shape the destiny of the organization in response to the environmental trends
Forms of Planning-2 • Tactical planning Making concrete decisions regarding what to do, who will do it, and how to do it. • Contingency planning Preparation for unexpected, major, and quick changes in the environment that will have a significant impact on the organization and require immediate action
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Comparing the 2 main forms of planning Dimension
Strategic planning Tactical planning
Intended purpose Ensuring long-term effectiveness & growth Nature of issues How to survive & addressed compete Time horizon Long-term (usually 2 years or more) How often done Every one to three (or updated) years
Implementing the strategic plan How to accomplish specific goals Short-term (usually less than 2 years) Every 6 months to 1 year
Comparing the 2 mains forms of planning (cont.) Dimension
Strategic planning Tactical planning
Conditions under which decision making occurs Level at which the plan is primarily developed Level of details
Uncertainty and risk
Middle to top management Low to moderate
High degree of prediction and low to moderate risk Employees up to middle management High
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Strategic Planning
Steps of strategic planning Commitment
Implement & Monitor
Goals & Strategies
Vision & Mission
Scan the Environment
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Step 1: Ensure Organizational Commitment • Involve the key leaders in the organization • Resolve the major problems that maybe facing the organization • Create an environment of willingness to question the status quo • Select the members of the planning committee (selection criteria – stakeholders)
Step 2: Articulate mission and vision
Mission
Vision
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Step 3: Scanning the environment “SWOT analysis” Internal
Strengths
Weaknesses
External
Opportunities
Threats (Challenges)
What kind of internal elements are we looking for? “S & W” • Infrastructure • Workforce • Managerial competencies • Financial resources
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What kind of environmental trends are we looking for? “O & T” • Competitors and new entrants • Customers • Suppliers • New services or programs
Step 4: Developing strategic goals Goals represent the critical priorities for the organization Achieving the goals should help the organization to better realize its mission and to move towards its vision Strategic goals should be based on the results of the SWOT analysis
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Step 5: Develop specific strategies for achieving the goals What is strategy? Activities that are necessary to achieve startegic goals Goal 1
Goal 2
Goal 3
Strategy 1.1.
2.1.
3.1.
Strategy 1.2.
2.2.
3.2.
2.3.
3.3.
2.4.
What is the nature of a business strategy? • Strategy is more than doing the regular work efficiently • Strategy rests on unique activities • Sustainable strategic position requires tradeoffs with other positions
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Step 6: Implement Your Plan • Use the plan to develop a tactical plan for the coming year. • Develop SMART objectives • For each objective or group of objectives, identify the required activities, and specify who is in charge of the activity, when it will be completed, and how much it will cost. • Keep the plan on everyone’s mind
Step 7. Evaluate Your Plan and Your Progress • Formulate metrics for evaluation of each action/strategy • Review progress at each board and/or committee meeting • Annual review by the strategic planning committee • Recognize everyone who is involved in achieving goals and “reaching the stretch.”
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Summary • Strategic planning emphasizes the development of an organization’s mission and vision, general strategies, and major resources allocation. • The main steps of SP are: …. • Tactical planning emphasizes the shorter-term detailed decisions, and provides the specific actions for implementing strategic plans.
References • Management: A Competency-Based Approach. Hellriegel, Jackson & Slocum. 9th ed. Thomson, South-Western 2002. • Essentials of Management. DuBrin. 6th ed. Thomson, South-Western. 2003 • Supervisory Management. Mosley, Megginson & Pietri. 6th ed. Thomson, South-Western. 2005.
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What is next?
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