Strategic Planning = PNM 3

8/4/2019 Strategic Planning = PNM 3

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Strategic PlanningStrategic PlanningStrategic PlanningStrategic Planning

P Narayan MurthyP Narayan Murthy


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What is Strategic Planning?What is Strategic Planning?What is Strategic Planning?What is Strategic Planning?Process to establish priorities on what you willProcess to establish priorities on what you will

accomplish in the futureaccomplish in the futureForces you to make choices on what you will doForces you to make choices on what you will doand what you will not doand what you will not do

Pulls the entire organization together aroundPulls the entire organization together arounda single game plan for executiona single game plan for executionBroad outline on where resources will getBroad outline on where resources will get

allocatedallocated


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Why do Strategic Planning?Why do Strategic Planning?Why do Strategic Planning?Why do Strategic Planning?If you fail to plan, then you plan to failIf you fail to plan, then you plan to fail bebe

proactive about the futureproactive about the futureStrategic planning improves performanceStrategic planning improves performanceCounter excessive inward and shortCounter excessive inward and short--termterm

t in ingt in ingSolve major issues at a macro levelSolve major issues at a macro levelCommunicate to everyone what is mostCommunicate to everyone what is most

importantimportant


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Fundamental Questions to AskFundamental Questions to AskFundamental Questions to AskFundamental Questions to Ask

Where are we now? (Assessment)Where are we now? (Assessment) Where do we need to be? (Gap / Future EndWhere do we need to be? (Gap / Future End

State)State)

How will we close the gap (Strategic Plan)How will we close the gap (Strategic Plan) How will we monitor our progress (BalancedHow will we monitor our progress (Balanced

Scorecard)Scorecard)


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A Good Strategic Plan should...A Good Strategic Plan should...A Good Strategic Plan should...A Good Strategic Plan should... Address critical performance issuesAddress critical performance issues

Create the right balance between what theCreate the right balance between what theorganization is capable of doing vs. what theorganization is capable of doing vs. what theorganization would like to doorganization would like to do

performance gapperformance gap VisionaryVisionary convey a desired future end stateconvey a desired future end state FlexibleFlexible allow and accommodate changeallow and accommodate change

Guide decision making at lower levelsGuide decision making at lower levels operational, tactical, individualoperational, tactical, individual


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Strategic Planning ModelStrategic Planning Model

A B C D EA B C D E

Strategic Planning ModelStrategic Planning Model

A B C D EA B C D E

EnvironmentalScan

Assessment

Situation Past,Present and

Mission & Vision PerformanceMeasurement

Baseline Components

PerformanceManagement

Down toSpecifics Evaluate

Where we are Where we want to be How we will do it How are we doing

BackgroundInformation

SituationalAnalysis

SWOT

Strengths,Weaknesses,Opportunities,Threats

SignificantIssues

Align / Fit withCapabilities

Values / GuidingPrinciples

Major Goals

Specific

Objectives

Targets /Standards ofPerformance

Initiatives andProjects

Review Progress BalancedScorecard

Take CorrectiveActions

Gaps Action Plans Feedback

upstream revise plans


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PrePre--Requisites to PlanningRequisites to PlanningPrePre--Requisites to PlanningRequisites to Planning

Senior leadership commitmentSenior leadership commitment Who will do what?Who will do what? How will we do it?How will we do it? When is the best time?When is the best time?


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Assessment Model:Assessment Model:

S W O TS W O T

Assessment Model:Assessment Model:

S W O TS W O TAssessment

External Assessment: Marketplace,competitors, social trends,External Assessment: Marketplace,competitors, social trends,

Internal Assessment:Organizational assets, resources,

people, culture, systems,partnerships, suppliers, . . .

Internal Assessment:Organizational assets, resources,

people, culture, systems,partnerships, suppliers, . . .

technology, regulatory environment,economic cycles .technology, regulatory environment,economic cycles .

Easy toUnderstand

Apply at anyorganizationallevel

Needs to beAnalytical andSpecific

Be honest aboutyour weaknesses

Good Points Possible Pitfalls

SWOT SWOT


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StrengthsStrengthsStrengthsStrengthsAssessment

StrengthsStrengths Those things that you do well, theThose things that you do well, the

high value or performance pointshigh value or performance points Strengths can be tangible: Loyal customers,Strengths can be tangible: Loyal customers,efficient distribution channels, very high qualityefficient distribution channels, very high qualityproducts, excellent financial conditionproducts, excellent financial condition

reng can e n ang e oo ea er ,reng can e n ang e oo ea er ,strategic insights, customer intelligence, solidstrategic insights, customer intelligence, solidreputation, high skilled workforcereputation, high skilled workforce

Often considered Core CompetenciesOften considered Core Competencies BestBestleverage points for growth without draining yourleverage points for growth without draining your

resourcesresources


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WeaknessesWeaknessesWeaknessesWeaknessesAssessment

WeaknessesWeaknesses Those things that prevent you fromThose things that prevent you fromdoing what you really need to dodoing what you really need to do

Since weaknesses are internal, they are withinSince weaknesses are internal, they are withinyour controlyour control

Weaknesses include: Bad leadership, unskilledWeaknesses include: Bad leadership, unskilledworkforce, insufficient resources, poor productworkforce, insufficient resources, poor productquality, slow distribution and delivery channels,quality, slow distribution and delivery channels,outdated technologies, lack of planning, . . .outdated technologies, lack of planning, . . .


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OpportunitiesOpportunitiesOpportunitiesOpportunitiesAssessment

OpportunitiesOpportunities Potential areas for growth andPotential areas for growth and

higher performancehigher performance External in natureExternal in nature marketplace, unhappymarketplace, unhappy

customers with com etitors better economiccustomers with com etitors better economic

conditions, more open trading policies, . .conditions, more open trading policies, . . Internal opportunities should be classified asInternal opportunities should be classified as

StrengthsStrengths

Timing may be important for capitalizing onTiming may be important for capitalizing onopportunitiesopportunities


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ThreatsThreatsThreatsThreatsAssessment

ThreatsThreats Challenges confronting the organization,Challenges confronting the organization,

external in natureexternal in nature Threats can take a wide rangeThreats can take a wide range bad pressbad press

coverage, shifts in consumer behavior, substitutecoverage, shifts in consumer behavior, substitute, , . . ., , . . .

May be useful to classify or assign probabilities toMay be useful to classify or assign probabilities tothreatsthreats

The more accurate you are in identifying threats,The more accurate you are in identifying threats,

the better position you are for dealing with thethe better position you are for dealing with thesudden ripples of changesudden ripples of change


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Why create a baseline?Why create a baseline?Why create a baseline?Why create a baseline?Baseline

Puts everything about the organization into aPuts everything about the organization into asingle context for comparability and planningsingle context for comparability and planning

Descriptive about the company as well as theDescriptive about the company as well as the

Include information about relationshipsInclude information about relationships customers, suppliers, partners, . . .customers, suppliers, partners, . . .

Preferred format is the OrganizationalPreferred format is the Organizational

ProfileProfile


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Organizational ProfileOrganizational Profile1. Operating Environment1. Operating Environment

Organizational ProfileOrganizational Profile1. Operating Environment1. Operating Environment

Baseline

Products and ServicesProducts and Services Suppliers, DeliverySuppliers, DeliveryChannels, Contracts, Arrangements, . . .Channels, Contracts, Arrangements, . . . Organizational CultureOrganizational Culture Barriers, Leadership,Barriers, Leadership,

Communication, Cohesiveness . . . .Communication, Cohesiveness . . . .

Workforce ProductivityWorkforce Productivity Skill levels, diversity,Skill levels, diversity,contractors, aging workforce, . . .contractors, aging workforce, . . .

InfrastructureInfrastructure Systems, technology, facilities, . .Systems, technology, facilities, . . RegulatoryRegulatory Product / Service Regulation, ISOProduct / Service Regulation, ISO

Quality Standards, Safety, Environmental, . . .Quality Standards, Safety, Environmental, . . .


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Organizational ProfileOrganizational Profile2. Business Relationships2. Business RelationshipsOrganizational ProfileOrganizational Profile2. Business Relationships2. Business RelationshipsB

aseline

Organizational StructureOrganizational Structure Business Units,Business Units,Functions, Board, Management Layers, . . .Functions, Board, Management Layers, . . . Customer RelationshipsCustomer Relationships Requirements,Requirements,

a ac on, oya y, pec a on , . . .a ac on, oya y, pec a on , . . . Value ChainValue Chain Relationship between everyone inRelationship between everyone inthe value chain . . . .the value chain . . . .

Partner RelationshipsPartner Relationships Alliances, longAlliances, long--termtermsuppliers, customer partnerships, . . .suppliers, customer partnerships, . . .


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Organizational ProfileOrganizational Profile

3. Key Performance3. Key PerformanceCategoriesCategories

Organizational ProfileOrganizational Profile

3. Key Performance3. Key PerformanceCategoriesCategories

Baseline

CustomerCustomer Products and ServicesProducts and Services Human CapitalHuman Capital OperationalOperational External (Regulatory Compliance, SocialExternal (Regulatory Compliance, Social

Responsibility, . . . )Responsibility, . . . )


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Gap AnalysisGap AnalysisGap AnalysisGap AnalysisBaseline

Baseline / Org Profile Challenges / SWOT

Gap = Basis for Long-Term Strategic PlanGap = Basis for Long-Term Strategic Plan


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Major Components of theMajor Components of the

Strategic Plan / Down to ActionStrategic Plan / Down to Action

Major Components of theMajor Components of the

Strategic Plan / Down to ActionStrategic Plan / Down to ActionComponents

Mission

Vision

Goals

Why we existWhy we exist

What we want to beWhat we want to be

Strategic Plan

Action Plans

Evaluate Progress

What we must achieve to be successfulWhat we must achieve to be successful

Measures Indicators andIndicators andMonitors of successMonitors of success

Desired level ofDesired level ofperformance andperformance andtimelinestimelines

Planned Actions toPlanned Actions toAchieve ObjectivesAchieve ObjectivesAI1 AI2 AI3

M1 M2 M3

T1 T1 T1

measurable terms (NOT activities)measurable terms (NOT activities)

Targets

Initiatives


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Mission StatementMission StatementMission StatementMission StatementComponents

Captures the essence of why the organizationCaptures the essence of why the organizationexistsexists Who we are, what we doWho we are, what we do

Explains the basic needs that you fulfillExplains the basic needs that you fulfill Ex resses the core values of the or anizationEx resses the core values of the or anization

Should be brief and to the pointShould be brief and to the point Easy to understandEasy to understand If possible, try to convey the unique nature of yourIf possible, try to convey the unique nature of yourorganization and the role it plays that differentiatesorganization and the role it plays that differentiates

it from othersit from others


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ExamplesExamples Good and BadGood and Bad

Mission StatementsMission Statements

ExamplesExamples Good and BadGood and Bad

Mission StatementsMission StatementsComponents

To Explore theUniverse andSearch for Lifeand to Inspirethe Next

NASA

Does a good job of expressingthe core values of theorganization. Also conveys uniqueualities about the or anization.

To Make PeopleHappy

Generation ofExplorers

Walt Disney

Too vague and unclear. Needmore descriptive informationabout what makes theorganization special.


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VisionVisionVisionVisionComponents

How the organization wants to be perceived inHow the organization wants to be perceived inthe futurethe future what success looks likewhat success looks like An expression of the desired end stateAn expression of the desired end state

a enge everyone o reac or o e nga enge everyone o reac or o e ngsignificantsignificant inspires a compelling futureinspires a compelling future Provides a longProvides a long--term focus for the entireterm focus for the entire

organizationorganization


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Examples of VisionExamples of Vision

DescriptorsDescriptors

Examples of VisionExamples of Vision

DescriptorsDescriptors Adept

Aggressive

Agile Aligned

Assertive

Available

Equal

Disciplined

Effective

Efficient

Enduring

Solid

Solvent

Stable

State of theArt

Strong

Informative

Innovative

Leading

Logical

Major

Components

Best-in-class Challenging

Clear

Competent

Complex

Compliant

Conservative

Coordinated

Critical

Direct

Expert

Fast

Fast-paced

Financially-sound

Focused Growth

Healthy

Improving

Incentivized Increasing

Streamlined Sufficient

Strategic

Sustainable

Timely

Value-added

Vigilant

Visionary

World-class

Pioneering

Protected

Organized

Over-Arching

Quick Ready

Responsive

Savvy

Simple


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Guiding Principles andGuiding Principles and

ValuesValues

Guiding Principles andGuiding Principles and

ValuesValuesComponents

Every organization should be guided by a set ofEvery organization should be guided by a set ofvalues and beliefsvalues and beliefs

Provides an underlying framework for makingProvides an underlying framework for makingdecisionsdecisions part of the organizations culturepart of the organizations culture

Values are often rooted in ethical themes, such asValues are often rooted in ethical themes, such asones y, rus , n egr y, respec , a rness, . . . .ones y, rus , n egr y, respec , a rness, . . . .

Values should be applicable across the entireValues should be applicable across the entireorganizationorganization

Values may be appropriate for certain bestValues may be appropriate for certain best

management practicesmanagement practices best in terms of quality,best in terms of quality,exceptional customer service, etc.exceptional customer service, etc.


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Examples ofExamples of

Guiding Principles and ValuesGuiding Principles and Values

Examples ofExamples of

Guiding Principles and ValuesGuiding Principles and ValuesComponents

We obey the law and do not compromise moral or ethical principles ever!We expect to be measured by what we do, as well as what we say.We obey the law and do not compromise moral or ethical principles ever!We expect to be measured by what we do, as well as what we say.

We treat everyone with respect and appreciate individual differences.We carefully consider the impact of business decisions on our people and wereco nize exce tional contributions.

We treat everyone with respect and appreciate individual differences.We carefully consider the impact of business decisions on our people and wereco nize exce tional contributions.

We are strategically entrepreneurial in the pursuit of excellence, encouraging originalthought and its application, and willing to take risks based on sound business judgment.We are strategically entrepreneurial in the pursuit of excellence, encouraging originalthought and its application, and willing to take risks based on sound business judgment.

We are committed to forging public and private partnerships that combine diversestrengths, skills and resources.We are committed to forging public and private partnerships that combine diversestrengths, skills and resources.


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GoalsGoalsGoalsGoalsComponents

Describes a future endDescribes a future end--statestate desired outcome that isdesired outcome that issupportive of the mission and vision.supportive of the mission and vision.

Shapes the way ahead in actionable terms.Shapes the way ahead in actionable terms. Best applied where there are clear choices about theBest applied where there are clear choices about thefuture.future.

u s s ra eg c ocus n o e organ za onu s s ra eg c ocus n o e organ za on spec cspec cownership of the goal should be assigned to someoneownership of the goal should be assigned to someonewithin the organization.within the organization. May not work well where things are changing fastMay not work well where things are changing fast

goals tend to be longgoals tend to be long--term for environments thatterm for environments thathave limited choices about the future.have limited choices about the future.


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Developing GoalsDeveloping GoalsDeveloping GoalsDeveloping GoalsComponents

Cascade from the top of the Strategic PlanCascade from the top of the Strategic Plan Mission,Mission,Vision, Guiding Principles.Vision, Guiding Principles. Look at your strategic analysisLook at your strategic analysis SWOT, EnvironmentalSWOT, EnvironmentalScan Past Performance Ga s . .Scan Past Performance Ga s . .

Limit to a critical fewLimit to a critical few such as five to eight goals.such as five to eight goals. Broad participation in the development of goals:Broad participation in the development of goals:

Consensus from aboveConsensus from above buybuy--in at the execution level.in at the execution level. Should drive higher levels of performance and close aShould drive higher levels of performance and close a

critical performance gap.critical performance gap.


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Examples of GoalsExamples of GoalsExamples of GoalsExamples of GoalsComponents

Reorganize the entire organization for better responsiveness to customersReorganize the entire organization for better responsiveness to customers

We will partner with other businesses, industry leaders, and government agencies inorder to better meet the needs of stakeholders across the entire value stream.We will partner with other businesses, industry leaders, and government agencies inorder to better meet the needs of stakeholders across the entire value stream.

Manage our resources with fiscal responsibility and efficiency through a singleManage our resources with fiscal responsibility and efficiency through a single..

Improve the quality and accuracy of service support information provided to our internalcustomers.Improve the quality and accuracy of service support information provided to our internalcustomers.

Establish a means by which our decision making process is market and customer focus.Establish a means by which our decision making process is market and customer focus.

Maintain and enhance the physical conditions of our public facilities.Maintain and enhance the physical conditions of our public facilities.


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ObjectivesObjectivesObjectivesObjectives RelevantRelevant -- directly supports the goaldirectly supports the goal

Compels the organization into actionCompels the organization into action Specific enough so we can quantify and measureSpecific enough so we can quantify and measurethe resultsthe results

Components

mp e an easy o un ers anmp e an easy o un ers an

Realistic and attainableRealistic and attainable

Conveys responsibility and ownershipConveys responsibility and ownership

Acceptable to those who must executeAcceptable to those who must execute

May need several objectives to meet a goalMay need several objectives to meet a goal


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Goals vs. ObjectivesGoals vs. ObjectivesGoals vs. ObjectivesGoals vs. Objectives

GOALS OBJECTIVES

Very short statement, fewwords

Longer statement, moredescriptive

Components

Broad in scope Narrow in scopeDirectly relates to theMission Statement

Indirectly relates to the MissionStatement

Covers long time period (such

as 10 years)

Covers short time period (such 1

year budget cycle)


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Examples of ObjectivesExamples of ObjectivesExamples of ObjectivesExamples of ObjectivesDevelop a customer intelligence database system to capture and analyze patterns inpurchasing behavior across our product line.Develop a customer intelligence database system to capture and analyze patterns inpurchasing behavior across our product line.

Launch at least three value stream pilot projects to kick-off our transformation to a leanerorganization.Launch at least three value stream pilot projects to kick-off our transformation to a leanerorganization.

Components

Centralize the procurement process for improvements in enterprise-wide purchasing power.Centralize the procurement process for improvements in enterprise-wide purchasing power.

Consolidate payable processing through a P-Card System over the next two years.Consolidate payable processing through a P-Card System over the next two years.

Monitor and address employee morale issues through an annual employee satisfactionsurvey across all business functions.Monitor and address employee morale issues through an annual employee satisfactionsurvey across all business functions.


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Down toDown to

SpecificsSpecifics


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What are Action Plans?What are Action Plans?What are Action Plans?What are Action Plans?

The Action Plan identifies the specific steps that will be taken toachieve the initiatives and strategic objectives where the rubbermeets the road

Each Initiative has a supporting Action Plan(s) attached to it

Action Plans are geared toward operations, procedures, and processes

They describe who does what, when it will be completed, and how the

Down to

Specifics

Objectives

Initiatives

ActionPlans

Like Initiatives, Action Plans require the monitoring of progress onObjectives, for which measures are needed


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Characteristics of ActionCharacteristics of Action

PlansPlans

Characteristics of ActionCharacteristics of Action

PlansPlansDown to

Specifics

Assign responsibility for the successful completion of the Action Plan. Whois responsible? What are the roles and responsibilities?

Detail all required steps to achieve the Initiative that the Action Plan is

supporting. Where will the actions be taken? Establish a time frame for the completion each steps. When will we need totake these actions?

Establish the resources required to complete the steps. How much will ittake to execute these actions?

initiative. Determine the deliverables (in measurable terms) that shouldresult from completion of individual steps. Identify in-process measures toensure the processes used to carry out the action are working as intended.Define the expected results and milestones of the action plan.

Provide a brief status report on each stepbrief status report on each step, whether completed or not. Whatcommunication process will we follow? How well are we doing in executing ouraction plan?

Based on the above criteria, you should be able to clearly define your actionplan. If you have several action plans, you may have to prioritize.


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Action Plan ExecutionAction Plan ExecutionAction Plan ExecutionAction Plan Execution

Down to

Specifics

Requires that you have answered the Who, What, How, Where,and When questions related to the project or initiative that

drives strategic execution Coordinate with lower level sections, administrative andoperating personnel since they will execute the Action Plan inthe form of specific work plans

plans and schedules that have specific action steps Resource the project or initiative and document in the form ofdetail budgets (may require reallocation prior to execution)

Monitor progress against milestones and measurements Correct and revise action plans per comparison of actual

results against original action plan


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Quantify from Action Level UpQuantify from Action Level Up

in terms of Measurementsin terms of Measurements

Quantify from Action Level UpQuantify from Action Level Up

in terms of Measurementsin terms of Measurements

Down to

Specifics

Measure your milestonesMeasure your milestones shortshort--term outcomes atterm outcomes atthe Action Item level.the Action Item level. Measure the outcomes of your objectives.Measure the outcomes of your objectives. Try to keep your measures one per objective.Try to keep your measures one per objective. Ma want to include lead and la measures toMa want to include lead and la measures to

depict causedepict cause--effect relationships if you areeffect relationships if you areuncertain about driving (leading) the desireduncertain about driving (leading) the desiredoutcome.outcome.

Establish measures using a template to captureEstablish measures using a template to capture

critical data elementscritical data elements


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Integrity Complete; useful; inclusive of several typesof measure; designed to measure the most important

activities of the organizationReliable: Consistent

Criteria for Good MeasuresCriteria for Good MeasuresCriteria for Good MeasuresCriteria for Good Measures

Down to

Specifics

ccura e - orrec

Timely Available when needed: designed to use andreport data in a usable timeframe

Confidential and Secure: Free from inappropriaterelease or attack


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Examples of MeasurementsExamples of Measurements

Lead IndicatorsLead Indicators


Lead IndicatorsLead Indicators

Down to

Specifics

Average time to initiate customer contact =>

shorter time should lead to better customerservice

Avera e res onse time to incident => below

verage response times should lead to increasedeffectiveness in dealing with incident

Facilities that meet facility quality A1 rating =>should lead to improved operational readiness for

meeting customer needs


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Lag IndicatorsLag Indicators


Lag IndicatorsLag Indicators

Down to

Specifics

Overall customer satisfaction rating => how

well you are doing looking back Business Units met budgeted service hour

tar ets => a ter the act re ortin o

service delivery volume Number of category C safety accidents at

construction sites => historical report of

what has already taken place


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TargetsTargetsTargetsTargetsDown toSpecifics

For each measurement, you should have at least

one target Targets should stretch the organization to higher

levels of performance

Incremental improvements over currentperformance can be used to establish your targets

Targets put focus on your strategy

When you reach your targets, you havesuccessfully executed your strategy


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Examples of TargetsExamples of TargetsExamples of TargetsExamples of TargetsAverage Time to Process NewEmployee Setups in DB

65 days Year2007

60 days Year2008

55 days Year2009

Utilization Rate for Rental HousingUnits

90% forYear 2007

92% for Year2008

95% for Year2009

Toxic Sites meeting in-servicecompliance

55% for Year2007

70% for Year2008

95% for Year2009

Down to

Specifics

Personnel Fully Trained in Safety andEmergency 65% by 2rd

Quarter 75% by 3th

Quarter 90% by 4th

Quarter

Open Positions Filled after 30 daypromotion period

75 positionsSept 2007

100 positionsJan 2008

135 positionsJuly 2008

% Reduction in Orders Filled Short in

1st Cycle

50% by Year

2008

65% by Year

2009

85% by Year

2010


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Make sure everything is linked and connected for atight end-to-end model for driving strategic execution.

OBJECTIVE

Sanity Check . . .Sanity Check . . .Sanity Check . . .Sanity Check . . .Down toSpecifics

INITIATIVE

Employee

ProductivityImprovementProgram

EmployeeSatisfaction

SurveyRating

90%favorable

overall

Measure

Target

Target Actual

90%

45%

Percent

Sa

tisfaction

gap

MEASURE / TARGET

Improve EmployeeSatisfaction

ACTION PLAN

Identify issues pera company wide

survey


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EvaluateEvaluate

Continuous FeedbackContinuous FeedbackContinuous FeedbackContinuous Feedback


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Continuous FeedbackContinuous Feedback

through the Balancedthrough the BalancedScorecardScorecard

Continuous FeedbackContinuous Feedback

through the Balancedthrough the BalancedScorecardScorecard

Evaluate

Cascade and align from the top to create aStrategic Management System.

Use the Balanced Scorecard framework toorganize and report actionable components.

Use the Scorecard for mana in the execution of

your strategy. Scorecard forces you to look at differentperspectives and take into account cause-effectrelationships (lead and lag indicators)

Improves how you communicate your strategy critical to execution.

P f MP f MP f MP f M


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Performance ManagementPerformance ManagementPerformance ManagementPerformance ManagementEvaluate

Establish a regular review cycle using your balanced scorecard.

Analyze and compare trends using graphs for rapidcommunication of performance. Dont be afraid to change your metrics life cycle (inputs to

outputs to outcomes) Work back upstream to revise your plans: Action Plans >

Operating Plans > Strategic Plans Planning is very dynamic must be flexible to change. Recognize and reward good performance results Brainstorm and change take corrective action on poor

performance results.


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Link Budgets toLink Budgets toStrategic PlanStrategic PlanLink Budgets toLink Budgets toStrategic PlanStrategic Plan

The worlds best Strategic Plan will fail if it is notadequately resourced through the budgetingprocess

Evaluate

Strategic Plans cannot succeed without people,time, money, and other key resources Aligning resources validates that initiatives and

action plans comprising the strategic plan support

the strategic objectives

Wh t R ?Wh t R ?Wh t R ?Wh t R ?


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Every Action Plan should identify the following:

The people resources needed to succeed

The time resources needed to succeed

The money resources needed to succeed

The physical resources (facilities, technology, etc.) needed to

What Resources?What Resources?How to Link?How to Link?

What Resources?What Resources?How to Link?How to Link?

Evaluate

succee

Resource information is gathered by Objective Owners which is providedto the Budget Coordinators for each Business Unit.

Resources identified for each Action Plan are used to establish the totalcost of the Initiative.

Cost-bundling of Initiatives at the Objective level is used by Business UnitBudget Coordinators to create the Operating Plan Budget


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Some Final ThoughtsSome Final ThoughtsSome Final ThoughtsSome Final Thoughts

Integrate all components from the top to thebottom: Vision > Mission > Goals > Objectives >

Measures > Targets > Initiatives > Action Plans >Budgets. Get Early Wins (Quick Kills) to create some

Seek external expertise (where possible andpermissible)

Articulate your requirements to senior leadership ifthey are really serious about strategic execution


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Thank ouThank ou

Strategic Planning = PNM 3

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