Preparing Your Organization To Meet The Demands Of A ...

Preparing Your Organization To

Meet The Demands Of A

Changing Environment

David Condon: Chairman & CEO

If You Fail To Plan, You Plan To Fail

Traits Of

Visionary Organizations

• Audacious, long-range (10-30 years) goals – Ford / Democratize the automobile (1900s)

– GE / Be #1 or #2 in every market it serves (1980s)

– Google – Organize the world’s information (2000s)

• Dedicate Culture of Success (Refuses to Fail) – GE / Jack Welch

– Apple / Steve Jobs

• Try a lot of stuff and keep what works – Wal-Mart founder, Sam Walton "was unafraid to fail. Sam would make

the biggest the biggest mistake in the world and then he'd walk into the office the next day laughing like a hyena and say, 'We've got that one out of the way. What do we do next?” – David Glass, former CEO

• Homegrown leadership

• “Good enough” never is! – Apple / MP3 player – iPod; cell phone - iPhone

Wisdom Applied By

Visionary Organizations

• Accept that mistakes will be made

• Give it a try and do it quickly

• Take lots of small steps, it is easier to

accept failures

• Give people the room they need

• Create mechanisms to avoid complacency

• Translate strategy into action

“Greatness is not a function of

circumstance.

Greatness, it turns out, is largely a

matter of conscious choice and

discipline.”

Jim Collins: Good to Great

Definitions

Strategy The allocation of resources to create value for the

agency and gain competitive advantage

Strategy Development A systematic process to develop a core ideology and

vision using the intrinsic knowledge of an entity…

• to set priorities

• drive progress

• build commitment among key stakeholders

Introduction To Strategy Development

Why Use Strategy Development?

• Strategy Development helps the agency…

– Respond to critical issues (challenges & opportunities)

– Address relevancy of programs & services

– Address potential program changes

– Plan for growth & expansion

– Develop new funding sources

– Satisfy requirements from funders

– Control the agency’s future!


Strategy Development Process

• Uses identified core ideologies which exist within an agency

• Moves the agency to an envisioned future

• Drives the standard operating procedure at all levels

• Addresses new issues, threats and opportunities as they emerge

• Allows and supports decisions to be made as issues and opportunities arise

• Moves away from static planning


Benefits Of Strategy

Development

• Develops an understanding of the agency’s purpose, values and reason for existence – Among staff, board, and the community

• Increases the level of commitment and support

• Provides milestones to track achievements

• Defines shared values

• Develops increased communication and teamwork

• Creates a foundation for meaningful change

• Unites the agency to pursue opportunities to better meet client’s needs


Strategy Development

Outcomes

• Effective Strategy Development produces…

– Committed stakeholders with an understanding of

purpose, values and reason for existence

– Satisfied clients & donors as the agency develops

opportunities to better meet their needs

– Creation of a foundation for decision making, change

and increased ROI

– A motivated and prepared workforce who can rely on

milestones to measure achievements and results


Limitations Of Traditional

Strategic Planning

• 90% of strategic action items in a

traditional strategic plan are never

realized

• Need to separate strategic from planning

– Distinct actions

– Distinct skill sets

– Different outcomes


Limitations Of Traditional

Strategic Planning

• Failure to capture the dynamics of a

competitive marketplace

• Complexity

• Lack of focus on alignment within the

organization


Change

Desired State of

High Value

& Level of Impact

Desire

to change

current state

Clear Vision

for Change

Effective Process


Strategy Development Process

Determining the Core

What drives us

SWOT Analysis

Capacity to get there

Strategy

Our game plan

Alignment

How to make it work

The Strategy

Development

Process

Vision

What we want to be


Strategy Development Phases

• Phase I - Preparation

• Phase II - The Creation of Value

• Phase III - Strategy Execution

Phase I - Preparation

• Set the Process Parameters

– How does the strategy development process

work?

– Who is involved in the process?

– What do we hope to accomplish?

– What have we learned from the past?

– What do we know about our organization?

Phase I

Know Your Organization

• Mission

• Programs and services – Self-evaluation

– Membership/participation records

• Community profile – “Competing service

providers”

– Partnerships and collaborations

• Financial status – Results and projections

– Resource development results

• Process strengths and weaknesses

• Organizational information – History

– Staffing

– Board membership

Phase I

Phase II – Creation Of Value

• Core Ideology

– Core Value

– Core Purpose

• Envisioned Future

– Vivid Goal

– Vivid Description

Phase II

The Foundation Of Strategy

Core

Ideology

Mission

Core Values

Envisioned

Future

Vivid Goal

Vivid

Description

Phase II

Core Values

Nordstrom

Service to customer

Hard work, individual productivity

Never being satisfied

Excellence in reputation

Walt Disney

No cynicism

Nurturing wholesome American values

Creativity, dreams & imagination

Fanatical attention to detail

Preservation of the Disney magic

• Non-negotiable intrinsic beliefs

• Guiding principles

Phase II

Determining The Core

Mission

Core

Competencies

Core

Purpose

Phase II

Core Purpose

Disney To make people happy.

3M To solve unsolved problems innovatively.

Nike To experience the emotion of competition,

winning and crushing the competition.

• Why does the organization exist?

• What is the ultimate result of your work?

Phase II

Core Competencies

Honda – Makes motors Sony – Miniaturization

Canon – Optics & Imaging Casio – Display systems

• What activities or programs are we going to implement to accomplish our purpose?

Phase II

Envisioned Future

Envisioned

Future

Vivid Goal

Vivid

Description

Phase II

Vivid Goal

Wal-Mart (1990) Become a $125 billion company by the

year 2000

Ford Motor (1900’s) Democratize the automobile

Sony (1950) Become the company most known for

changing the worldwide poor-quality

image of Japanese products

• A point to be reached in the distant future (5 years +)

Phase II

Vivid Description

• If we succeed….

– How will we look to our stakeholders?

– Which processes must we excel at?

– How must our agency look on the inside?

(resources, competencies, culture,

hierarchy)

Phase II

Phase III – Strategy &

Implementation

• Implement SWOT Analysis

– Strengths, Weaknesses, Opportunities,

Threats

• Develop strategies

• Set the Annual Agenda (action items)

• Create alignment (allocate resources and

responsibilities)

Phase III

SWOT Analysis

• Assess the organization

– Internally by charting the…

• Strengths – capabilities that enable the agency to perform

well.

• Weaknesses – characteristics that prohibit the agency from

performing well.

– Externally by charting the…

• Opportunities - trends, forces, events and ideas on which

your organization can capitalize.

• Threats – trends, forces or events outside of your control

that would impact your organization

Phase III

Develop Key Strategies

• Key Strategies are issues or areas the organization needs to address within the next 12 to 18 Months – An agency typically has 4 to 6 Key Strategies

– Key Strategies will bring the agency closer to reaching its Envisioned Future

– Key Strategies may be aimed at roadblocks which must be addressed in order to reach the organization’s Envisioned Future

– The areas should be apparent in the 4 Way SWOT Analysis

Phase III

Agenda Development

• A planning process for each year to address…

– What are the issues the organization will encounter

in the next 12 - 18 months?

– What must be addressed in order to deliver superior

performance?

– What issues will affect value?

– What issues will affect finance and impact?

– How does the organization maintain the highest ROI?

Phase III

Alignment

Step 1: Each Agenda Item is assigned to a responsible person, department or committee

Step 2: The responsible party develops a set of action steps for the Agenda Item

Step 3: Progress on the Agenda Item is charted at regularly held department level or committee meetings

Step 4: The complete list of Agenda Items and the progress gained on each Item become part of the agenda at regularly held board and staff meetings

Step 5: Once an Agenda Item is addressed it is removed from the meeting agenda

Phase III

Benefits Of Alignment

• Cross-team efforts

• Improved communication

• Evaluation and benchmarks

• Increased productivity

• Effective, functioning board committees

Phase III

Strategy Execution Diagram

Envisioned Future

Key Strategies

Agenda Items

Phase III

Thank You!

Preparing Your Organization To Meet The Demands Of A ...

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