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Strategic Planning Strategic Planning ProcessProcess

By By Joel MadzivanyikaJoel Madzivanyika

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Structure of PresentationDefining strategic planningBenefits of strategic PlanningEight-Step Strategic Planning Process

Vision and values clarificationMission StatementSituation/Environmental analysisStrategic goal settingOperational planningAction planImplementation & Monitoring and Evaluation

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Defining Strategic PlanningStrategic Planning deals with the futurity of current decisions

It is a continuous and systematic process where people make decisions about intended future outcomes, how outcomes are to be accomplished, and how success is measured and evaluated.

As a process it begins with a set of organisational aims, defines strategies and policies to achieve them and makes detailed plans to make sure the strategies are implemented.

The definition is difficult to capture in a few words;‘Strategic’ means:Taking a broader view,

tackling broader issues rather than getting bogged down in fine detail.Examining issues that are

seen as important for the organisation.‘Planning’ means:Lifting sights beyond day-to-

day problems and tasks,Translating political purpose

into a sense of direction; gearing up to bring about change;Being flexible and able to

accommodate change

As a philosophy it necessitates dedication to act on the contemplation of the future, a determination to plan constantly and systematically as an integral part of management.As a structure it is a series of plans formalising the effort to establish basic organisational process, objectives, policies and strategies and developing detailed plans to achieve objectives and goals.

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Benefits of Strategic Planning

Encourages a forward looking approach;Prepares people for the prospect of change;Clarifies choices;Marshals priorities in a way that shapes the response to external change;Pulls threads together corporately;Communicates to staff a sense of purpose;Helps the community to understand the pressures on the local authority and what it is striving to do.Flexible;Makes other planning approaches more meaningful;

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Strategic Planning Process

Planning to Plan

Vision & Values Clarification

Mission Draft

Situation Analysis

Strategies: Options Review

Operational Planning

Implementation

Monitoring and Evaluation

Objectives, Action Planning & Budgeting

Review, Revise, Complete Mission Statement

SWOT Analysis of Internal & External Factors

Strategic Goal Setting

Preliminary Analysis of constraints and strengths

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The Eight-Step Strategic Planning Process

1. Initiating and agreeing on a strategic planning process.

2. Identifying organisational mandates.3. Clarifying organisational mission and values.4. Assessing the external environment:

Opportunities and threats. (Force-Field Analysis).

5. Assessing the internal environment: strengths and weaknesses.

6. Identifying the strategic issues facing an organisation.

7. Formulating strategies to manage the issues.8. Establishing an effective organisational

vision for the future.

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Vision and Values ClarificationVisioning is the basis from which all organisational and community planning stems, and makes clear the core values and principles, hopes, and desires central to what the community wants to become. Team participation is necessary to creating a vision.It is a description of what an organisation wants to look like. A vision should be short – not more than several pages – and inspiring. {People are inspired by a clear and forceful vision delivered with heartfelt conviction..A value is an enduring belief that a specific mode of conduct is preferable.The organisation’s values and its strategic plan must be congruent.

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Mission StatementLike a foundation, the mission statement is the basis for planning and building. A good mission statement will answer:

WHAT the organisation the organisation’s mandate is.WHO the stakeholders of the organisation are.HOW the organisation will meet the needs of its stakeholders.

The mission statement must be clear, understandable and brief.It should be broad enough to allow flexibility in implementation but not so broad as to lack focus.It should give all staff, and stakeholders a sense of what their organisation is about and what business they are in.

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Environmental Scanning

Macro economicDemographic patternsEconomic trendsPolitical environment

Local environmentKey issues in the communityKey economic imbalancesCommunity/partner plans and priorities.

Customer environmentKey needs of the community

Internal environmentOrganisation’s culture and climate, stage of developmentDistinct competencies,Shifts in leadership.

It is an on-going, continuous process throughout the strategic planning process, it does not begin or end at any point in the process. The environment to be scanned is as follows: To accomplish this

task, a SWOT, (Strengths, Weaknesses,

Opportunities, Threats) analysis

is prepared.

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Strategic Goal SettingGOAL: a written statement describing the direction that indicates success or improvement in organisational performance, or in the expression of values the organisation holds.Each department of the organisation must decide which goals are best for it, given their unique situations.

•Strategic goals should define the priorities of the organisation, and clarify the targets set for the coming 5 years to help make decisions for operational planning.•Strategic goals are the basis upon which objectives, programs, and projects are defined and they link the vision to the activities which are supposed to achieve the vision.•For any one strategic goal there may be more than one objective in a given year.

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Operational Planning The operational planning step is the stage of the Strategic

Planning process when objectives are set, providing the focal points around which to organise and deploy resources, clarifying what is required to meet those objectives, and establishing indicators that identify when each objective has been reached. The following RASMMTAC chart assists to clarify the usefulness of the objectives.

R Realistic Well set objectives take reality into account.

A Attainable Well set objectives do not reflect fantasies about what we wish we could get done.

S Specific Well set objectives are not general or vague. They clearly state exactly what is to be achieved.

M Measurable Well set objectives can be evaluated easily.

M Meaningful Well set objectives are meaningful in relation to the mission and strategic goals of the organisation.

T Time bound Well set objectives are set within a clear time frame.

A Achievable They have deadlines.

C Coordinated Well set objectives are linked to each other and the goals in order to guide the organisation in implementation.

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Action Planning Process

The Action Planning process involves taking the agreed upon objective and preparing a detailed plan to explain exactly:

What is going to be done;Who is going to do it;What resources are required for each step;When is it going to be completed; what are the expected outcomes when each action is completed.

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Implementation stageCoordinated Teams

Implementation of the strategic plan requires

well coordinated teams to avoid

Going out of the plan as departments tend to build their

own empires. of departments.

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Monitoring and Evaluation

The strategic planning process is ongoing,and the success of your plan will have to be monitored and evaluated on an ongoing basis.

Strategic Plan 4

Strategic Plan 5Strategic Plan 2

Strategic Plan 1

Strategic Plan 3

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Performance of different plan typesPerformance Requirement Statutory Strategic ActionBe a tool for policy implementation Yes YesAchieve support and commitment by all main actors in development

Yes Yes

Basis for establishing partnerships. Yes YesProvide a medium to long term framework for development decisions

Yes

Provide a framework for early action Yes

Provide locational guidance Yes Sometimes Sometimes

Result in implementation that meets objectives yes YesAchieve objectives with efficient use of resources

Yes yes

Provide a framework for sustainable development

Yes Sometimes Sometimes

Guide inter-sectoral public investment Yes SometimesGuide city level public investmentguide

Yes

Guide local level public investment Sometimes Sometimes YesBe a framework for non-physical action programmes

Yes Yes

Be able to respond to changing environment yes YesProvide basis for development control YesBe an instrument for institutional capacity building

Yes Sometimes

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Presentation on Turn Around Strategy

By Joel M adzivanyika

(MSc. Urb Mgnt, BSc. HPA Hons, Post Grd. Dip UDPP)

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Structure of PresentationFormulating the Turn Around Strategy

What is a turn around strategyTraditional vs Process/CurrentProblem AnalysisForce-Field AnalysisSWOT analysisChange managementTurn around Process – the conceptFormulating & Financing the strategy

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The Turn Around StrategyIt is a strategy or plan to improve the performance of an organisation by implementing short term strategies to address problems.It is action oriented and aims at achieving positive results within a short period.The following steps are followed in preparing a Turn Around Strategy:

Assessment of the ‘As Is’ of the organisation. The as is stage includes:

Problem AnalysisForce-Field AnalysisSWOT Analysis.

Formulating objectives to address problemsFormulating Strategies by looking at ‘Quick Hit’ issues to address the problem.Financial Planning and implementation of the Turn Around Strategy.

The Turn Around Strategy must be framed in line with the main strategic plan.Implementation of the Turn Around Strategy makes it easier to follow the strategic plan and helps the organisation to remain focussed.

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PROBLEM TREEPROBLEM TREE Low standard

Of living

High M ortality Social Vices Low incom e/ Rate Revenue M igration Com m unicable Low Production Diseases e.g Cholera

POOR HEALTH CO NDITIONS

IN EL BAJA

Contam inated Poor Prim ary W ater Health Care Area littered Stagnant W ater No Health W ith waste Facilities Poor Solid Lack of Poor Drainage No Surfaced W aste Awareness Roads M anagem ent Irregular Collection High Illiteracy Of W aste Lack of M otivation No Schools

Lack of Finance

E F F E C T S C O R E P R O B L E M C A U S E S

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FORCE-FIELD ANALYSIS

DRIVING FO RCES

100% 75% 50% 25%

25% 50% 75% 100% RESTRAINING FORCES

POLITICAL SUPPORT

SUFFICIENT AND W ELL

EDUCATED STAFF

RISING CONCERN OF THE PROPLE

LACK OF AW ARENESS

LACK O F CAPACITY

LIM ITED FINANCE

ROLES O F G OVERNM ENT & CITY OVER LAND

OBJECTIVE:

To improve environmental and health conditions in EL-BAJA

within 24 months.

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An Example of a SWOT Analysis

SStrengthstrengths(Internal Strengths of the City that can further be exploited to give an enabling environment for better infrastructure delivery in Council)

         experienced management          good staff relations         supportive councillors 

WWeaknesseseaknesses(Internal Weaknesses of the City that need to be addressed to improve infrastructure delivery by Council)

         poor billing system         uncommitted and unmotivated

staff         limited knowledge on

integrated infrastructure activities

         political intervention in council staff activities

         high staff turnover

OOpportunitiespportunities(Opportunities presented by the external environment that can be utilised or exploited by the City to improve the situation of poor infrastructure delivery)

         government support          legal powers to enter into

agreements with the private sector to carry out business (section 175 of the urban councils act [chapter 29: 15]

         legal powers to enter into agreement with private business to do business (section 183 of the urban councils act)

         functional strategic smart partnership arrangements

         supportive ratepayers

TThreatshreats(Problems to be overcome due to the external environment and especially in it)

         negative political interests

         limited government funding         rural urban migration         disillusioned ratepayers 

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Change Management1. . Change Management

1. The process of change needs to be managed properly or else all the efforts will come to nothing

2. Prior to any major implementation, the team and its leadership need to address the issues of organizational and technical change management.

3. Through extensive planning, backed with the expertise provided through HR or consultants the team maps out a program for introducing and managing change.

4. Such a program must be based on extensive education and training describing the nature of the new process, why it is important, how it will be implemented and the impact on each individual within the process.

2. Strategic Context 1. The City’s mission, vision, strategic plan and

breakthrough objectives form the context for any Turn Around Strategy.

2. The project team must understand the context and translate it to the process improvement job at hand in the form of a project charter, objectives, process goals and a work plan.

3. The strategy should not proceed without this understanding

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Service Delivery Survey

Strategic Plan

Turn Around Process Concept

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Integrated Solutions Fundamental

s

Results in Quantum Gains

Strategic Focus

Horizontal View

Change Management

A multidisciplinary approach to implementing fundamental change in the way work is performed across the organization to

dramatically improve performance and stakeholder value ( Dr Micheal Hammer)

Refocusing the Organization Through Turn Around Plan

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Integrated Solutions

ChangeManagement

Finance Operations

Technology

Strategy

Take a Holistic View Across Many Disciplines

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Change Management

Process

People

Information Technology

Finance

Change

The Turn Around Strategy Changes the Four Key Elements of an Organization

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New Technologies provide

powerful, creative ways

to use information

Maintaining a Process View is critical to

breaking down functional barriers

People-enabling practices promote

creativity, decision making and flexibility

New Infrastructure concepts promote

innovative organizational

structures, designs, and management

processes

A Turn Around Strategy Changes the Four Key Elements of an Organization

Infrastructure

ProcessTechnology People

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Current• Complex workflows• Redundant activities• Excessive approvals• Narrowly defined tasks

• Functional boundaries

• Legacy policies

Future• Simplified workflows

• Streamlined activities

• Quality at the source

• Broadly defined tasks

• Ratepayer perspective

• Targeted policies

Process Design

Process

Key Element

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TransformersCurrent

• Deep hierarchy• Multiple layers of control

• Inflexible career progression

• Narrow job boundaries

• Rigid training programs

• Centralized decision making

Future• Flattened organizational structures

• Accountability• Multiple career paths• Broad job responsibilities

• Individualized skills development

• Empowered workforce

•Job Design•Career Paths•Rewards and Recognition

•Organizational Structures

•Decision Making Processes

People

Key Element

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Current• Fragmented systems• Redundant, manual input

• Antiquated architecture

• Unreliable data• Poor decision making support

Future• Integrated systems• Timely data capture• Flexible architecture

• Accurate data• Valuable management information

Transformers•Networks•Imaging•Groupware•Distributed Databases

•Workflow Software

Technology

Key Element

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Current• Underutilized capacity

• Antiquated physical plant

• Distributed knowledge base

• Unfocused capital structure

Future• Balanced capacity• Consolidated, updated facilities

• Catalogued expertise

• Strategically managed financial structure

Physical FacilitiesKnowledge

BaseFinancial

Infrastructure

Infrastructure

Key Element

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Drinking from a Fire

Hose

BeingCreative...and Crazy

The Awesome Power of Habit

Not Good for Me

Turn Around Plan

Too Participati

ve

Lost in “As-is” Land

Getting Overtaken By Momentum

Sorry, ButI Can’t

Boundary Fuzziness

Competing Initiatives

Incremental Fix vs.

Fundamental Change

Killed by Consensus

Turn Around Design is Difficult …

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Improvement Goals

Senior ManagementInvolvement

Scop

eTechno logy

Enabling

Automation

IntenseSymbolic

Modest Radical

Turn Around Renewal Options

Task

CrossFunctional/Organization

BusinessAs Usual

FunctionalRationalization

ProcessImprovement

Business ProcessDesign

BusinessTransformation

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Turn around Thinking vs.Traditional Work

Who to please?

Traditional Process

Boss Customer outcomeTask OutcomeFragmented IntegratedHeads down Horizontal viewManager PerformerEnemies ColleaguesSolo TeamShowing up Producing resultsProblem avoidanceProblem solutionor finger pointing or ownershipFunctional Competitive situationMinimal ExponentialSupervisor Multiple inputs

FocusAppearance

Performer PerspectiveHero/Heroine

Co-workersWork Unit

Pay

Knowledge

Behaviour

DirectionTraining

Source: Hammer and Company