Strategic Management-DPGMMO

6th & 8th December 2010

Dr Yong Chee Tuan

Business, Operational, Strategic ?

  Business Plan
Normally prepared to acquire financing
  Operational Plan
Identifies specific results to be accomplished within a
given time period
  Budget
Expresses operational plan in financial terms
  Strategic Plan
Identifies the basic concept and direction of an
organization
Defining Strategic Management

  Strategic management
  Analyses,decisions, and actions an
organization undertakes in order to create
and sustain competitive advantages

 1-3
Defining Strategic Management

  Analysis
  Strategic goals
  Internal and external environment of the firm

  Strategic decisions
  What industries should we compete in?
  How should we compete in those
industries?

 1-4
Defining Strategic Management

  Actions
  Allocate necessary resources
  Design the organization to bring intended
strategies to reality

 1-5
Two Fundamental Questions

1.  How should we 2.  How can we create

compete in order to competitive
create competitive advantages in the
advantages in the marketplace that are
marketplace? unique, valuable,
and difficult for rivals
to copy or
substitute?

 1-6
Key Attributes of Strategic Management

1.  Directs the organization toward overall

goals and objectives
2.  Includes multiple stakeholders in decision
making
3.  Needs to incorporate short-term and
long-term perspectives
4.  Recognizes trade-offs between efficiency
and effectiveness

 1-7
Strategic Management Process

  Intended strategy
  Decisions are determined only by analysis
  Realized strategy
  Decisions are determined by both analysis
and unforeseen environmental
developments, unanticipated resource
constraints, and/or changes in managerial
preferences

 1-8
 Wait…This is not the public sector
perspective!

  Ya, there is competitiveness, but the

roles of a public sector organisation are
evolving.
  New public management scholars are
using the business approaches, but the
existing systems/models/functions have
not changed
  A lot of modifications are needed here!
Strategic Management: Why?
 In a comfortable position/situation

 Believethe future (at least for 10 years) is also

promising with abundant resources & outputs

  Enjoyminimum divides & progressive living

standards- stakeholders are satisfied

  Shelteredby global crisis, international

disputes & regional instability
Strategic Management: Why not?

  Incrisis- natural or otherwise events

  The paths are already determined
  The resources have been assigned
  When Operations plan is required, not the
strategic/tactical plan
RKN Objectives

a) Improve quality of life of the people;

b) Maximise the economic utilization of national resources;
c) Develop non-oil industries;

d) Accelerate human resources development to meet country’s

demand of increasingly sophisticated economy;

e) Maintain full employment & increase the level of productivity;

f) Maintain a moderate rate of inflation;
g) Foster a more disciplined, self-reliant and caring society;

h) Encourage and nurture the development of “Rakyat Melayu” as

leaders of industry and commerce; and

i) Have a clean and healthy environment. <year> Sales Plan

1.  List the features of the RKN objectives
with relevance to the ministry.

2.  How can your organisation contribute

to the attainment of each of the RKN
objectives?
1.  In terms of a) regulatory, b) infrastructure
Gap Analysis- Pt 1 and Pt 2

Where are we? What next? How?

Current Scope of How well What other SOW What are the major What are the possible
Work: Which of the we do? should MOC do (or barriers implementing solutions?
RKN objectives are should not do)? these revised SOW?
impacted by the key
activities of your
organisation?
Licensing…eg for
b), f)
Regulating

Promoting

Facilitating

Establishing

Providing

Funding projects
Pt3: Vision, Intents & Principles
State your group preferred
vision statement

State your preferred

strategic intents and
principles (list not more
than 4)

4
Strategic Plan: Packaging
  A Strategic
Plan is formulated based on analyses,
choices, trade-offs, and leadership/management
interactions

  Theplan may create a culture & system of

operations; existing culture & system must evolve to
support & implement the plan

 Differentdegrees of transparency are required to

maintain the plan; communication is crucial!
Strategic Planning Process: Ten Steps

1.  Initiate & agree on a strategic planning process

2.  Identify organisational mandates
3.  Clarify Organisational mission, values
4.  Assess the external & internal environment (SWOT)
5.  Identify the strategic/key issues (causes vs symptoms)
6.  Formulate strategies to manage the issues
7.  Review & adopt the strategies (hard choices)
8.  Establish an effective organisation vision
9.  Develop an effective implementation process
10.  Reassess the strategies & strategic planning process
Presentation: 15min
  Youhave just been appointed as a strategic planning
consultant by a Ministry.

 Provide a framework of an ideal strategic plan for the

said Ministry.

 Identify
the key issues, boundaries, similar action plans
used in regional economies,etc

  Highlight
the key features that define the Strategic
Plan as a good plan