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The Vocabulary of

Strategy: Using Planning


to formulate Strategy.

Kevin Hinde
What is meant by Strategic
Planning?

 What do you understand by the term


‘Planning’?
 Brainstorm your ideas.

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Strategic Planning

 “Adisciplined effort to produce


fundamental decisions and actions that
shape and guide what an organisation is,
what it does, and why it does it”
Bryson (1995, p 4-5)

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The Planning Process
Reassess the
10 process
Develop an effective
implementation process
Establish an effective organisational
vision

Review and adopt the strategic plan or


plans
Formulate strategies to manage
these issues
Identify the strategic issues facing the
organisation

Assess the external and internal environments to identify


SWOTs (Strengths, Weaknesses, Opportunities and Threats)

Clarify Organisational Mission and Values.

Identify Organisational Mandates

Initiate and agree upon the strategic planning process.


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Stage1: Initiate and agree upon the
strategic planning process.
 Agreement must be reached as to
 the purpose of the effort
 the preferred steps in the process.
 the form and timing of reports (the planning cycle)
 the role, function and membership of groups
established to oversee the effort.
 the role, functions and membership of any
strategic planning committee.
 the commitment of resources for the process.

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Stage 2: Identify Organisational
Mandates

 What Must be Done


 What must not be Done
 What Could be done

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Stage 3: Clarify Organisational
Mission and Values.

 the overriding purpose or intent of the


organisation must be established.
 an opportunity to establish broad policy
goals.

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Stage 3: Clarify Organisational
Mission and Values.(cont)

 Stakeholders
– Bryson (1995) suggests identification of key
stakeholders is the key means to success in
public and non-profit organisations.
– But who are the stakeholders?

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LEVEL OF INTEREST
Low High

A B
Low
Minimal Keep
effort informed

POWER

C D

High Keep Key


satisfied players

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Stage 3: Clarify Organisational
Mission and Values.(cont)
 Claims for mission
 Peeke (1994)
– it encourages the development of a clear sense of purpose.
– it facilitates decision making in the organisation
– the mission process facilitates organisation-wide communication.
– it aids evaluation activity.
– it clarifies marketing strategy.
– it is useful in the management of contraction (at least if the
mission has been devised proactively.

 Does the notion of mission live up to these claims?

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 "...evenif the mission statement ends up in
everyone's wastebasket, there will still be
beneficial effects resulting from the
thinking and analysis involved in drafting it"
(Bowman, 1990)

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Guiding principles for Mission
 It takes years not months
 True consensus is necessary within the top team
 Action is a better communicator than words
 Top team visibility is essential
 Top team continuity helps
 Strategy and Values should be formulated together
 Management should focus on the link between
behaviour and values.
 Make the mission inspirational but not unrealistic

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Stage 4: Assess the external and
internal environments

 The subject of future Lectures

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Stage 5: Identify the
strategic issues facing the organisatio

 These are fundamental policy questions or


critical challenges that affect an
organisation’s mandates, mission and
values; product or service level and mix;
clients, users, or payers; or cost, financing,
organisation or management (Bryson,
1995,p.30)

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Stage 6: Formulate strategies to
manage these issues

 “Astrategy is defined as a pattern, of


purposes, policies, programmes, actions,
decisions, or resource allocations that
define what an organisation is, what it does,
and why it does it. Strategies can vary by
level function, and by time frame.”
– (Bryson, 1995, p.32)

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Stage 7: Reviewing and Adopting
the Strategies and Plan

 This
is important where official approval to
proceed is required or where joint
commissioning work is being undertaken.

 This
stage represents the formal seal of
approval for the strategies to be adopted.

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Stage 8: Establishing an Effective
Organisational Vision

 ‘animating the dream’. These statements


offer aspirations about the future strategic
direction of the organisation and are often
incorporated in Mission Statements.
 In this stage the organisation is developing
a view of what it should look like once its
strategies are achieved and developed to
their full potential.

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Stage 9: Developing an Effective
Implementation Process
 Developing a document is not enough. For Strategies to
be realised.
– Individuals, teams etc. have know their roles and responsibilities
– action plans have to be developed
– timescale has to be considered (a planning cycle might develop).
– resources have to be committed, particularly to training
– communication processes have to be developed (and these have
to be effective)
– Review and monitoring procedures have to be considered (This
may involve, performance indicators, benchmarking)
– Accountability procedures must be put in place

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Stage 10: Reassessing Strategies
and the Planning Process

 Theprocess is on going. But remember,


new strategies emerge and some old ones
are discarded whilst others remain.

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