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Some Concepts to Help the Development of a Strategic Planning April 2008 Mário Luís Tavares Ferreira
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Strategic Planning Concepts

Feb 11, 2017

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Page 1: Strategic Planning Concepts

Some Concepts

to Help the Development of a

Strategic Planning

April 2008

Mário Luís Tavares Ferreira

Page 2: Strategic Planning Concepts

Strategic Planning

Goals / Objectives

SWOT Analysis

Strategy

Implementation

Measurement and Evaluation

Page 3: Strategic Planning Concepts

SWOT

Internal Environment

Strengths Weaknesses

World class product

Financial resources

Know-how

Technical support

Internal processes

Channels network

External Environment

Opportunities Threats

Water & Energy crises

Environment awareness

Productivity improvement

Competitors market share

Euro X Dollar

Technology development

Page 4: Strategic Planning Concepts

TOWS matrix

Strengths Weaknesses

Opportunitie

s

S-O strategies W-O strategies

Threats S-T strategies W-T strategies

S-O strategies pursue opportunities that are a good fit to the companies

strengths.

W-O strategies overcome weaknesses to pursue opportunities.

S-T strategies identify ways that the firm can use its strengths to reduce

its vulnerability to external threats.

W-T strategies establish a defensive plan to prevent the firm's

weaknesses from making it highly susceptible to external threats.

Page 5: Strategic Planning Concepts

PEST analysis

A scan of the external macro-environment in

which the company wants to operate (or

operates) and can be expressed in terms of

the following factors:

Political

Economic

Social

Technological

Page 6: Strategic Planning Concepts

Total sales

Company’s sales

Product lines

Product config

Product items

Sector sales

ProductLevel

Territory

Region

Country

Client

WorldGeographicalLevel

Shortterm

Mediumterm

Longterm

Timing Level

Ninety ways to measure demand (6 x 5 x 3)

Page 7: Strategic Planning Concepts

Porter 5 Forces

Page 8: Strategic Planning Concepts

Value Chain

Identification

of client’s

necessities

Satisfaction of

Client’s

necessities

Innovation

Process

Operation

ProcessPost Sales

Process

Market

identification

products /

services

definition

products /

services

creation

Delivery

products

and

services

Services

to the

clients

Page 9: Strategic Planning Concepts

Life cycle

Product

development

maturity

Sales & profit

Invest & expenses

Sales

Profit

growth

Page 10: Strategic Planning Concepts

Boston matrix – Product life cycle

Page 11: Strategic Planning Concepts

Directional policy matrix or GE-McKinsey matrix

The diameter of each

pie is proportional to

the Volume or Revenue

accruing to each

Segment, and the solid

slice of each ‘pie’

represents the share of

the market enjoyed by

the Company.

Page 12: Strategic Planning Concepts

S curve

Page 13: Strategic Planning Concepts

Management

Management, control and evaluation

Page 14: Strategic Planning Concepts

Keys of Success - Facts of Failure

Deployment - Plan Completing

Success Failure>Assign roles and responsibilities

>Establish priorities

>Involve mid-level management as active

participants

>Think it through - decide how to manage

implementation

>Charge mid-level management with

aligning lower-level plans

>Make careful choices about the contents

of the plan and form it will take

>No accountability for deployment

>Too many goals, strategies, or objectives - no

apparent priority

>Plan in a vacuum-functional focus

>No overall strategy to implement

>Make no attempt to link with day-to-day

operations

>Not being thorough-glossing over the details

Page 15: Strategic Planning Concepts

Keys of Success - Facts of Failure

Deployment - Communicating

Success Failure

Assign roles and responsibilities

Communicate the plan constantly

and consistently

Recognize the change process

Help people through the change

process

No accountability

Never talk about the plan

Ignore the emotional impact of change

Focus only on task accomplishment

Page 16: Strategic Planning Concepts

Keys of Success - Facts of Failure

Implementing - I

Success Failure

Assign roles and responsibilities

Involve senior leaders

Define an infrastructure

Link goal groups

Phase integration of implementation

actions with workload

Involve everyone within the

organization

No accountability

Disengagement from process

Unmanaged activity

Fragmented accomplishment of

objectives leads to sub-optimization

Force people to choose between

implementation and daily work; too many

teams

No alignment of strategies

Page 17: Strategic Planning Concepts

Keys of Success - Facts of Failure

Implementing - II

Success Failure

Allocate resources for implementation

Manage the change process

Evaluate results

Share lessons learned; acknowledge

successes through open and

frequent communication

Focus only on short term need for

resources

Ignore or avoid change

No measurement system

Hide mistakes/lay blame;

limited/no communication

Page 18: Strategic Planning Concepts

Keys of Success - Facts of Failure

Strategic Measurement - I

Success Failure

Assign roles and responsibilities

Use measurement to understand

the organization

Use measurement to provide a

consistent viewpoint from which to

gauge performance

Use measurement to provide an

integrated, focused view of the

future

No accountability

Sub-optimization: focus only on

efficiencies

Use measures that provide no real

information on performance; use

too many measures

Use measurement to focus on the

bottom-line only

Page 19: Strategic Planning Concepts

Keys of Success - Facts of Failure

Strategic Measurement - II

Success Failure

Use measurement to communicate

policy (new strategic direction)

Update the measurement system

Use measurement to provide

quality feedback to the strategic

management process

Use measurement to control

Never review measures

Fail to use measurement to make

strategic, fact-based decisions; use

only for control

Page 20: Strategic Planning Concepts

Keys of Success - Facts of Failure

Evaluation

Success FailureAssign roles and responsibilities

Recognize when to update the plan

Modify strategic planning process to

accommodate the more mature organization

Incorporate new leaders into the strategic

planning process

Integrate measurement with strategic planning

Use experienced strategic planning facilitators

No accountability

Poor timing and not recognizing external

forces

Rigid application of strategic planning

process; ignore lessons learned from

previous efforts

Ignore impact of new leaders

Don't use measurement information

Shortcut the process

Page 21: Strategic Planning Concepts

Measurement and evaluation – BSC

Page 22: Strategic Planning Concepts

Measurement and evaluation – BSC

Page 23: Strategic Planning Concepts

Measurement and evaluation – BSC

Page 24: Strategic Planning Concepts

Measurement and evaluation - BSC

Page 25: Strategic Planning Concepts

Five disciplines – Peter Senge

Personal Mastery: Aspiration involves formulating a coherent picture of the results

people most desire to gain as individuals, alongside a realistic

assessment of the current state of their lives today.

Learning to cultivate the tension between vision and reality can

expand people's capacity to make better choices, and to achieve

more of the results that they have chosen.

Mental Models: Reflection and inquiry skills is focused around developing

awareness of the attitudes and perceptions that influence thought

and interaction.

By continually reflecting upon, talking about, and reconsidering

these internal pictures of the world, people can gain more

capability in governing their actions and decisions.

Page 26: Strategic Planning Concepts

Five disciplines – Peter Senge

Shared Vision: Establishes a focus on mutual purpose.

People learn to nourish a sense of commitment in a group or

organization by developing shared images of the future they seek

to create, and the principles and guiding practices by which they

hope to get there.

Team Learning: Group interaction.

Through techniques like dialogue and skillful discussion, teams

transform their collective thinking, learning to mobilize their

energies and actions to achieve common goals, and drawing

forth an intelligence and ability greater than the sum of individual

members' talents.

Page 27: Strategic Planning Concepts

Five disciplines – Peter Senge

Systems Thinking:

People learn to better understand interdependency and

change, and thereby to deal more effectively with the

forces that shape the consequences of our actions.

Systems thinking is based upon a growing body of theory

about the behavior of feedback and complexity - the innate

tendencies of a system that lead to growth or stability over

time.

To help people see how to change systems more

effectively and how to act more in tune with the larger

processes of the natural and economic world.

Page 28: Strategic Planning Concepts

Project management - processes

Page 29: Strategic Planning Concepts

Project management – a process

Page 30: Strategic Planning Concepts

Project management – Process chain

Page 31: Strategic Planning Concepts

Project management – risk analysis