Strategic management

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Hak Cipta MBustamanIAB

Introducing Your Workshop Facilitator

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Trainer & Coach

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Pensyarah/ Pembimbing (coach)Muhamad Bustaman Bin Haji Abdul Manaf

Institut Aminuddin Baki, KPM0199890524/[email protected]


BIODATA PENCERAMAH

MUHAMAD BUSTAMAN BIN HAJI ABDUL MANAFJawatan Hakiki: Pensyarah Cemerlang DG54

Specialist Trainer & Specialist Coach Instutut Aminuddin Baki, KPM

1. Pengalaman memberi kursus Pengurusan Strategik dan Pengurusan Kualiti di Institut Aminuddin Baki semenjak 1995. (pensyarah paling lama di IAB)

2. Menulis buku: 1. Perancangan Strategik (IAB). 2. Pengurusan Kualiti dalam pendidikan (Utusan Pub) 3. Buku ketiga: Pengurusan Strategik untuk sekolah -di terbit oleh PTS.

3. Pernah mengikuti Latihan Profesionalisme dalam bidang Pengurusan Strategik dan Pengurusan Kualiti Latihan Luar Negara (selain dalam negara):

• i. Strategic Management & Leadership: World Trade Institute, New York, USA (1996)• ii. TQM in Education: SEAMEO Innotech, Manila. Philippine (1998)• iii. Strategic planning in education: Uni of York, England (2000- 2004) (bidang tesis Phd)• iv. Strategy Performance Measurement (BSC): Uni of Adelaide, Australia (2005)

4. Berkelayakan sebagai Juruaudit (Lead Auditor) MS ISO 9000 sejak 1998.

5. SUMBANGAN: Memberi khidmat konsultasi dalam Pengurusan Strategik dan KPI untuk semua peringkat Bahagian dalam Kementerian Pelajaran Malaysia. Ahli Panel Sistem Pengurusan Kualiti Star Rating (SSR) KPM, Pembentang pernyataan baru MISI, VISI dan Matlamat KPM (2004)

6. Kepakaran lain: Kursus Pemikiran Strategik, Kepemimpinan Strategik, Pengurusan Organisasi, Sistem Pengurusan

Prestasi Strategik (SPPS), Pembinaan KPI dan BSC, TQM, Benchmarking, Quality Tools, dan ‘Leadership Coaching and Mentoring”

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• Every company is concerned with strategy– It determines which organizations succeed

and which ones struggle– Strategic blunders can hurt a company

• Strategic management is a specific type of planning

Strategy

5Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.

• Explicit strategy is the plan of action

• Competitive advantage is the organization’s distinctive edge for meeting customer needs

Strategies should: Exploit Core Competencies Build Synergy Deliver Value

Purpose of Strategy


• The long-term view of the organization and competition

• Thinking strategically impacts performance and financial success

• Today’s environment requires everyone to think strategically

Thinking Strategically


Decisions and actions used to formulate and

execute strategies that will provide

competitively superior fit between the

organization and its environment to

achieve organizational goals

Strategic Management


8.1 Levels of Strategy

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Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.


What is Strategic Management? • Strategic management is the comprehensive

collection of ongoing activities and processes that organizations use to systematically coordinate and align resources and actions with mission, vision and strategy throughout an organization.

Strategic management activities transform the static plan into a system that provides strategic performance feedback to decision making and enables the plan to evolve and grow as requirements and other circumstances change. (BSC Institute, 2012)

8.2 The Strategic Management Process

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EXECUTION PREMIUM

Hak Cipta MBustamanIAB 14Source: Palladium Group


What Are the Steps in Strategic Planning & Management?

• There are many different frameworks and methodologies for strategic planning and management. While there is no absolute rules regarding the right framework, most follow a similar pattern and have common attributes. Many frameworks cycle through some variation on some very basic phases:

• 1) analysis or assessment, where an understanding of the current internal and external environments is developed,


What Are the Steps in Strategic Planning & Management?

• 2) strategy formulation, where high level strategy is developed and a basic organization level strategic plan is documented .

• 3) strategy execution, where the high level plan is translated into more operational planning and action items, and

• 4) evaluation or sustainment / management phase, where ongoing refinement and evaluation of performance, culture, communications, data reporting, and other strategic management issues occurs

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Mission&Vision



Characteristics of Good Strategic Plans





The 5 Cs of Strategy Execution

Causality

Criticality

Compatibility

Continuity

Clarity

• Integrating the future into your decision making processes today by thinking big, deep and long.

Strategic Thinking

23Hak Cipta MBustamanIAB

• Big (very broad) – do we understand how we connect and interact with other organisations

and the external environment?


Thinking Big: Thinking in Systems


• Deep – how deeply are we questioning our ways of operating?

• Do we operate from our interpretation of the past, or our anticipation of the future?

• Are our assumptions today valid into the future?


• Long – how far into the future are we looking? Do we understand the shape of alternative futures for our organisation?


• Strategic thinking is identifying, imagining and understanding possible and plausible future operating environments for your organisation… 28Hak Cipta MBustamanIAB


AnalisisPersekitaran

‘Where are we now’?

[email protected] 30

Environmental Scanning


THE ORGANIZATION AS AN ICEBERG

14.5


• Formulating strategy often begins with an audit of internal and external factors– Internal Strengths and Weaknesses– External Opportunities and Threats

• Information is acquired from reports, surveys, discussions, and meetings

SWOT Analysis



SWOT ANALYSIS

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8.3 SWOT: Audit Checklist

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Strategic Business Units (SBUs) have a unique mission, products, and competitors

Companies manage the mix of SBUs for synergy and competitive advantage

Organizations should not become too dependent on one business

Formulating Corporate-Level Strategy: Portfolio Strategy


• Organizes business along two dimensions– Business growth rate– Market share

• Four categories for corporate portfolio– The combination of high/low market share

and high/low business growth

Formulating Corporate-Level Strategy: The BCG Matrix


8.4 The BCG Matrix

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Hak Cipta MBustamanIAB [email protected] 07 39

Govt’ Mandate & Mission

Vision

Goals/KRA

Objectives

Measures

Targets

Actions/Initiatives

Why we exist

What we want to be

What we must achieve to be successful

Indicators and Monitors of success

Desired level of performance and timelines

Planned Actions to Achieve Objectives

O1 O2

AI1 AI2 AI3

M1M2M3

T1T1 T1

Specific outcomes expressed in measurable terms (NOT activities)

Strategic Planning

Action Planning

Implementation /Measures

KRA or Strategic GoalsKRA or Goals serve as the starting point for developing Objectives,

Initiatives, and KPIs down through the organization


WHAT ARE ''KRA'' AND ''KPA'' AND ''KPI''

• Key Result Areas “Key Result Areas” or KRAs refer to general areas of outcomes or outputs for which the department's role is responsible.


Value of KRAs

• Identifying KRAs helps individuals: ·

Clarify their roles · Align their roles to the organisation’s business or strategic plan · Focus on results rather than activities · Communicate their role’s purposes to others · Set goals and objectives · Prioritize their activities, and therefore improve their time/work management · Make value-added decisions


Description of KRAs

• Key result areas (KRAs) capture about 80% of the department's work role. The remainder of the role is usually devoted to areas of shared responsibility (e.g., helping team members, participating in activities for the good of the organisation).


Example

• KRA 1-RECRUITMENT/ SELECTION

KPA 1 (objectives) --RECRUITMENTKPI ----reduce average time taken to fill marketing/sales vacancies by 15%KPI ----reduce average cost per recruit by 10%


example• CORPORATE OBJECTIVE / STRATEGY

-to gain world market share of 51%

DISTRIBUTION OBJECTIVE-Improve / Increase the distribution coverage by 20%

KRA 1-DISTRIBUTION

KPA 1 --CHANNEL EXPANSION BY 2 NEW CHANNELS.KPI ----INCREASE THE CHANNEL NETWORK BY 20%



CORPORATE OBJECTIVE / STRATEGY-to gain world market share of 51%

SALES DEPARTMENT'S OBJECTIVE-INCREASE THE SALES COVERAGE BY 20%.

KRA 1-SALES COVERAGE

KPA 1 --SALES COVERAGEKPI ----INCLUDE 5 MORE COUNTRIES IN THE SALES EXPANSION.KPI ----INCREASE THE GEOGRAPHICAL COVERAGE BY 15%.



Basic Scorecard Terminology(Institute Aminuddin Baki)

Objectives

Objectives:

What the strategy is trying to achieve

Targets

Targets:The level of performance

or rate of improvement

needed

Initiatives:Key action programs

required to achieve targets

InitiativesMeasures

Measures:How success

or failure (performance)

against objectives is monitored

Financial

Excellent Financial Management

Stakeholders & Customer satisfied with IAB services

Stakeholders & Customer satisfaction

Innovation & Growth

Strategy Map

Quality Core Business

Quality & World Class Educational

Leaders

High Competency Staff and Peacefull

Internal Business Processes

Mission & Vision


What are SMART-A Measures? When creating a ‘balanced’ set measures for an organization, aligning measures where possible is also critical for your success ….

TIMELY

REALISTIC

AGREED TO

MEASURABLE

SMARTMEASURES

SPECIFIC

ALIGNED






The individual needs of each

student are met

Our students enjoy a positive and

enjoyable learning experience Our students

demonstrate exemplary behaviour

Providing quality & varied extra

curricula activities

Effective teaching methods that instil the joy of learning

Knowledgeable, efficient, competent,

nurturing & highly motivated staff who

display our core values

Transparency & Accountability

Financial viability

FID

UC

IAR

YL

EA

RN

ING

INT

ER

NA

LC

US

TO

ME

Rb.1. ‘Align’: Pemetaan Objektif dengan Misi & Visi sekolah

Our students strive towards

academic excellence

Safe welcoming, efficient, comfortable facilities and

working environment

Ongoing maintenance &

upgrading of facilities

Ample supply of resources – teaching

aids, technology, equipment

Consistent discipline

Providing opportunity for

Learning religion Principles

Responsive curriculum that encompasses the motto “work, play and

learn together”

Our students are well rounded &

excel in all fieldsOur students enjoy a

safe, welcoming, efficient, comfortable and family oriented

environment

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IUM 2015 Strategic Direction: Towards becoming a Research-Intensified University

S1.Produce well-

rounded personalities

and employable graduatesC

usto

mer

Sta

keh

old

er

Fin

an

cia

l

Learn

ing

&

Gro

wth

Inte

rnal P

rocess

Research & Academic Excellence

C1.Achieve status as a leading international academic & research

institution imbued with Islamic values

L1.Strengthen staff development and

competency

F1.Achieve

budgetary sufficiency

and efficiency

P1.Strengthen quality

integrated curriculum

P8.Increase income contribution from SBUs/RMC/IHSB

S2.Become centre of reference in niche areas of research

P6.Secure bigger research grant

P5.Have a significant

pool of distinguished scholars

P2.Intensify quality research

output and publicationP4.

Increase academic staff who are engaged in high impact

research

L2.Ensure quality of research facilities

through key compliance

P3.Strengthen

postgraduatestudies

P7.Enhance quality service

L3.Improve library

facilities to support research

L4.Enhance morality

within the university community

IIUM Strategy Map 2007-2015IIUM Strategy Map 2007-2015

SAMPLE

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Key Performance Indicators are quantifiable measurements, agreed to beforehand, that reflect the critical success factors of an organisation and differ depending on the organisation


Developing KPI

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• Key Performance Indicators, also known as KPI or Key Success Indicators (KSI), help an organisation define and measure progress toward organisational goals.

• Once an organisation has analysed its mission, identified all its stakeholders, and defined its goals, it needs a way to measure progress toward those goals. Key Performance Indicators are those measurements


Performance Measures

• 1. Percentage of…• 2. Number of… (hours, times per month,

donation, activities, km etc)• 3. Frequency of ….• 4. Level of ….• 5. Total of …(score, costs, hours, ..)• 6. Average • 7. Grade• 8. Ratio of • 9. Degree of


1.3 Identifying & Creating KPIs

… That Can Present in Different Forms

Rankings(Benchmarks)

Absolute Numbers

Rating(surveys)

Ratio

Percentages

Indices

Strategic Information Generated

Co

mp

lexi

ty o

f A

nal

ysis

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Define Targets: How Will We Know We Are There?

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What is target?

• Targets are quantified and time-based• Target: Desired level of performance *a

performance measure (e.g., % of customer satisfaction target = 95%)

(source: Balanced Scorecard Institute, USA. 2005)

* Remember to set the baselines or take of values (TOV)/ a point to start measurement)

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Why Do it?

• 1. to make objectives explicit and tangible• 2. to quantify the expected value of the

strategy• 3. to motivate desired behaviors• 4. to set timing for performance-

improvement expectations• 5. to calibrate strategic evaluation and

learning


What To Do

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• 1. Choose the Right Achievement Targets

• Potential areas to consider when setting targets:

• 1. TOV or Baselines and trends• 2. National, state, local or Education

Standards.• 3. Benchmarking • 4. Feedback from customers and

stakeholders


• 2. Understand the predictive (lead) and outcomes Metrics

• 3. Review the existing portfolio of metrics• 4. Listen the voices of

customer,stakeholders and others• 5. Consider Noneconomic• 6. Be careful with expensive

benchmarking

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CUSTOMER PERSPECTIVE

KRA: …

Strategic

Objective

Strategic Measures (2011, 2012,2013) Strategic Initiatives

2011

Strategic

Initiatives Accountability

KPI Target KPI Owner

C1. C1.1 Tov:: 2011: 2012:2013:

C1.2 BL: NEW

ST: LT


Misi Sekolah:…Visi Sekolah:…..Isu Strategik: Peningkatan prestasi belum mencapai tahap yang diinginkan.KRA/Matlamat Strategik: Peningkatan Prestasi Akademik

Objektif Petunjuk (KPI)

Tov(base)

2012 2013 2014 Inisiatif / Strategi Akauntibiliti

Peningkatkan prestasi UPSR

GPS

% Lulus

% 5As

2.0

93

10%.1

1.8

94.5

12%

1.7

97.0

16%

1.50

100

20%

1. meningkakan Kapibiliti guru dalam P&P

2. meningkakan Kemahiran Belajar pelajar

3. Meningkatkan sokongan komuniti

GPK 1 (p)

GPK HEM

GPK koku


What is Organisational Strategy?

– “A strategy is defined as a pattern, of purposes, policies, programmes, actions, decisions, or resource allocations that define what a school is, what it does, and why it does it. Strategies can vary by level function, and by time frame.”(Bryson, 1995, p.32)


Apakah itu Strategi?

• Strategi adalah merujuk kepada tindakan khusus atau pendekatan yang diambil oleh sesuatu organisasi untuk mencapai matlamat dan objektif.

• Ia bersifat ‘action-oriented’ dan berhubungan terus dengan pengukuran output.

• Strategi menjelaskan bagaimanakah cara untuk mencapai matlamat dan objektif berbanding dengan objektif merujuk kepada apakah yang mahu dicapai oleh sesebuah organisasi itu


• A strategy is an approach, or an implementation methodology, that will lead to the achievement of an objective.

• Strategies sets the basis for the development of action plans that follow, in which case the when, how, and by whom the organization will achieve each objective is described.


THE TOWS MATRIX(GENERATION OF STRATEGIC OPTIONS)

STRENGTHS

1.

2. LIST STRENGTHS

3.

4,

5.

6.

INTERNAL

ENVIRONMENT

WEAKNESSES

1.

2. LIST WEAKNESSES

3.

4.

5.

6.

OPPORTUNITIES

1.

2. LIST OPPORTUNITIES

3.

4.

5.

6.

S-O STRATEGIES

PENETRATION

EXPANSION

INTENSIFICATION

ACQUISITION

INTEGRATION OF BACKWARD AND FORWARD LINKAGES

W-O STRATEGIES

NICHE

LINKAGING OR NETWORKING

SUB-CONTRACTING

ANCHORING ORGANIZATION

DEVELOPMENT/CAPABILITY BUILDING

THREATS

1.

2. LIST THREATS

3.

4,

5.

6.

S-T STRATEGIES

DIVERSIFICATION

CONSOLIDATION

CONTINGENCY MECHANISMS

W-T STRATEGIES

RETRENCH

MERGE

WITHDRAW

CLOSE SHOP

STATUS QUO

EXTERNAL ENVIRONMENT


Tools for Putting Strategy into Action

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EXECUTION PREMIUM

80Source: Palladium Group



Obctacles in implmentationof strategy

• Make people accountable for strategic tasks• The most frequently barrier to implementing a plan is accountability.. The best

practice is: • Use SMART goals or objectives with clear deadlines• Be clear about responsibility and objectives (confirm and clarify), and link the

objectives to all involved• Delegate, have one person responsible for each key task• Build in incentives, recognition and give recognition- the most powerful

motivator• Teach delegation in the organization• Give ownership to the team• Review at milestones• Be sure the boss acknowledges the assignment eye ball to eye ball• Give them the resources• No micro-managing, just coaching and feedback• Be sure the audience is the right audience - are they folks who want to be

accountable


Overcome day to day pressures? How?Overcome the barrier by individual accountablity for strategic tasks. • Review workload and delegate; • Develop “action plans” assigning responsibility and deadlines. Make individuals

accountable. • Refocus decision makers away from fires, usually at off-site thinking meetings• Dedicated staff for strategic planning• Make the strategic work part of the employees goals and provide incentives to

achieve those goals• Track progress• Work on priorities and delay non-essentials, understand the source of the “fires”• Carve out time away from distractions (no phone, emails … for a day)• Take a day off• Get a new job/ transfer?• Get a Samsung Galaxy S or throw away your Samsung GS (there were mixed

feelings)


Make a strategic plan more flexible. How?

No strategic plan plays out exactly to script. More frequent progress reviews increased accountability and keep the plan flexible. We can overcame this barrier by:

• Frequently review progress and how the environment is changing• Keep the strategic plan at a high level, with flexibility for implementation of

the details and some reserve funds• Increase you contact with vendors and customers as the plan rolls out• Track the details of cross-functional work, not within departments. Let the

department heads manage their teams• Make sure you have the right people involved -those with something in it

for them• Part of the plan includes several 'what if' contingencies• Set the review cycle to give time for actions to take effect but not too long

miss a market opportunity• Give the key players the 'right' to reconvene the team if they see

something that must be addressed


How to overcome fear, resistance to change Uncertainty is one cause of fear and people resist strategic change. As

the strategic planning team formulates its strategy, factor in how to overcome this barrier. Top down support is critical and a compelling vision is necessary.

• Point out the results if there is no change; present hard data to support the need for change, talk fact( dollars and cents)

• Create a learning environment, make it part of the culture

• Understand and communicate, communicate: the why, the benefits of the change, what is in it for me (WIIFM)

• Delegate ownership of the change process

http://www.clintburdett.com/process/02_concepts/concepts_01_uncertainty.htm


• Make sure you have the right people involved• Rewards and recognition - tied to the purpose of the

organization• Uncover and address key concerns in advance• Involve those affected by the change and value their inputs• Lead by example• Use external resources with reputation; bring in new people

for new ideas/questions• Decrease, mitigate the risk of change, i.e. do not shoot the

risk taker, some failure is expected• Focus senior management training on change methods• Bring in outside experts

• The bar length indicates the most likely method for success.


Step 9: The step nine is monitoring and controlling the implementation of plan

• (a) control the process• (b) arrange an internal audit, to determine how

closely the performance matches the plan,• (c) arrange a management review meeting,• (d) take corrective action where needed, align the

plan and undertake a continuous improvement process.

• (e) arrange an audit of external environmental development,

• (f) maintain as quality records the results of process control measures, to provide evidence of effective operation and monitoring of the process.87


MISI VISI

BORANG PENGUKURAN PRESTASI DAN MAKLUM BALAS

Objektif KPI Tov Sasaran Prestasi Sebenar Ulasan

MATLAMAT:


PENGUKURAN DAN PENILAIAN

KAEDAH BALANCE SCORECARD

PERSPEKTIF Pencapaian Sebenar Target

Matlamat Strategik Objektif KPI

Unit Pengukuran

2006-2007

2007-2008

2008-2009

2009-2010

2006-2010

M1 M1-O1

M1-O2

M1-O3

M2 M2-O1

M2-O2

M2-O3

M2-O4

Six Silent Killers of Strategy

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Format for a Strategic Planning Document

Table of Contents:• Introduction by the school Principal or Director (Head of Department)• Mission, Vision and Values Statement• Organization History and Profile• Strategic Issues and Strategic Goals or Key Results Area (KRA)• Objectives, KPI & long term targets (3-5 Years)• Strategy or initiative that link to each objectives together with a table

of action plan

• Appendices (If Included)• a. Environmental Assessment (example: SWOT) • b. Summary of Client Surveys• c. Membership of Board and Planning Committee• d. Long-Range Budget Projections• e. Strategy selection analysis


SEKIAN, TERIMA KASIH

Strategic management

Education

strategic planning management

company strategic management

strategic blunders

division of cengage

pengurusan organisasi

kepemimpinan strategik

high level strategy

strategy formulation