Strategic planning

B.V.L.NARAYANA

SPTM

Defining Strategy

• Strategy is the determinator of the basic long-

term goals of an enterprise, and the adoption of

courses of action and the allocation of resources

necessary for carrying out these goals.– Chandler, 1962, Strategy and Structure: Chapters in the History of American

Industrial Enterprise [p. 13]

• Strategy is the pattern of objectives, purposes, or

goals and major policies and plans for achieving

these goals, stated in such away as to define

what business the company is in or is to be in… – Learned, Christenson, Andrews, & Guth, 1969, Business Policy: Text and Cases [p. 151]

Chronological evolution

Descriptor1950’s and

1960’s1970’s 1980’s 1990’s

21st century

Environment Stable Dynamic complex Dynamic complexHighly

dynamicHypercompetitive

FocusContentTop management

ContentTop management

ContentTop management

Process,Organisation

ProcessOrganisation

Decision makingRational,

synopticRational synoptic

Rational, participative

Contextdependent

Context dependent

View of Implementation

DistinctGiven

DistinctGiven

DistinctGiven

Integrated Integrated

Research Processual ,

longitudinal Cross sectional

Cross sectional ProcessualLongitudinal

ProcessualLongitudinal

Dominant school Design Planning PositioningCulturalLearning

Learning, Organic

Strategy paradigm

Static, exploitOpportunities,

Static, detailed planning

Static, position defense

Static, adaptive

Dynamic adaptive

Adapted from Pettigrew et al (2002), Whittington (2002), Gould and Campbell (1993)

Definitions

• Strategy +planning• Strategy – defined as

– Strategy is a mediating force between the

organization and its environment: consistent patterns

in streams of organizational decisions to deal with

the environment. Mintzberg, 1979, The Structuring of Organizations [P. 251]

– Long range planning ( Drucker 1970, Ansoff 1965) Consists of

• Objectives or goals

• Methods, procedures, means to realize goals

• Apply to most segments of business

• Contain auditing and control mechanisms

Strategy Hierarchy

© Prentice Hall, 2006

Strategic planning in government

• Strategic planning has been defined as “a disciplined effort to produce fundamental

decisions and actions that shape and guide what an organization is, what it does, and why it does it” (Bryson 1995).

• It provides a systematic process for gathering information about the big picture and using it to establish a long-term direction and then translate that direction into specific goals, objectives, and actions. It blends futuristic thinking, objective analysis, and subjective evaluation of goals and priorities to chart a future course of action that will ensure the organization’s vitality and effectiveness in the long run. “

Strategic planning

• Debate on – Scope

– Content

– Involvement and participation

– Approach

– Converting plan into actions

Strategic planning vs management ( Poister and streib 2005)

• “Strategic planning is the primary element but not the essence of strategic management. The other components …

include implementation and evaluation”• Vinzant and Vinzant (1996) identified

performance measures derived directly from strategic goals and objectives, and links between strategic plans and budgets, as critical elements of the strategic management process.

Levels of strategic management capacity

Strategic planning

• Strategic planning enables you to answer the following questions:

• Who are we?• What capacity do we have/what can we

do?• What problems are we addressing?• What difference do we want to make?• Which critical issues must we respond to?• Where should we allocate our

resources?/what should our priorities be?

Strategic planning—exercise

• What has happened in the past three years in the external environment that could affect our work as an organisation/project?

• What are the challenges and threats facing us as an organisation/project in our external environment?

• What are the opportunities we should be taking advantage of in the environment in order to:– a Make us more sustainable as a project/organisation?– b Help us achieve our vision

• What information do you have that you think is important to share with others in the strategic planning process?

Strategic planning –exercise

• What are the important strengths of our organisation/project?

• What weaknesses are preventing our organisation/project from achieving its vision?

• Do you think we are clear about our vision, values and mission?

• What challenges have we failed to meet in the past two to three years and why have we failed to meet them?

• What challenges have we met well in the past two to three years and what helped us to meet them?

• What is the most important outcome that you would like to see emerging from this strategic planning process? Why do you think it is so important?

Strategic planning –exercise 2

• Identify critical internal and external issues which need to be addressed

• A critical issue is one that meets most or all of the following criteria:

– Is related to a core problem

– Affects the lives of a significant number of people either directly or indirectly

Strategic planning –exercise 2

• Critical issues – Can be addressed through the competencies

and resources of the organisation or project

– Needs to be addressed if the organisation or project is to be able to progress in its work

– Builds on the strengths of the organisation or project and/or the opportunities available to it

– Addresses weaknesses in the organisation and/or assists the organisation to deal with threats to its work or existence.

Strategic planning

• What is planning? (Mintzberg 1981)

• It has been indicated as– Future thinking– Integrated decision making– Formalized procedures and articulated results– Programming– process driven by vision– Formal procedure to force future thinking

• Drucker (1985)– Identify changes which have happened– future

which has happened

Thank you