Strategic Planning Process: The Morato Model By: Dennis E. Maligaya.

Strategic Planning Process:The Morato Model

By: Dennis E. Maligaya

Strategic Planning

Is the process of finding the best means of attaining organizational goals (Morato, 2006)

Defines:What the org is all about?;

What the org wants to achieve?;

What is its market?;

Who are its customers/ clientele/ beneficiaries?

Strategic Planning

Specifies:

The results or outcomes the org hopes to produce;

How it will produce those results?

Strategic Planning

Strategic Planning is:

•All about making major moves that will determine the long term direction of the org;

•A set of principles and philosophies which would guide all the operational activities of the organizational activities of the org;

•Seeking to obtain good cost-benefits, investment-return and input-outcome ratios;

•Seeing beyond the immediate horizon and hardly bothers with short-term glitches in the marketplace;

•Is not an annual budgeting exercise nor a justification of what the org is doing

Right to Left Planning

-Based on the most important dictum of strategic planning-

‘Always begin with the end in mind’ (Morato, 2006)

Vision – futuristic picture of the enterprise;

Mission- the basic purpose for the existence of the org;

Objective- are measurable end results;

Key Result Areas- are proofs that the objectives are being achieved;

Performance Indicators- exact quantifications of the KRAs

Performance Indicators are:Outcomes of any organizations;

Generally fall into any of the six R’s: • Reach- desired physical presence of the org;

• Recognition- achievement of the desired image and reputation;

• Ratings- recognition given by customers/ clients;

• Revenues- sales;

• Returns- net income or bottom line financial figures;

• Responsiveness- impact of the org’s product/ services to its customers/ clients

Sample Case:

St. Theresa De Avila School of Paranaque, Inc.

-Offers Kindergarten, Elementary, Complete HS program;

-started in 2001, registered with SEC,

-family corporation;

-students are mostly from within San Isidro, Sucat, Paranaque City

Vision:

The Number 1 privately-owned, non-sectarian school in Paranaque City

within the next twenty years .

• Time-bounded : 20 years;

• Ambitious but realistic: The Number 1 privately-owned, non sectarian school;

• Geographical and target market focus: Paranaque City;

• Enables the administrators to plan strategically

Mission:

We provide quality education that is aligned with the demands of the 21st Century to the

students in Paranaque City, and prepare them to compete globally.

• Specific Product or service: Provide quality education that is aligned with the demands of the 21st Century; prepare the students to compete globally

•Market: students living in Paranaque City

Objectives:

1.To establish a strong market presence in Paranaque City;

2.To earn good financial returns for its trustees/ stockholders ;

3.To prepare students to the demands of the 21st Century and be able to compete globally;

4.To make St. Theresa School a happy and rewarding place to work

Four major ends:Increasing profits;Expanding market;Satisfying customers with quality services;Providing reasonable compensation and benefits to

employees

Key Result AreasOBJECTIVES KEY RESULT AREAS

1.To establish a strong market presence in Paranaque City

1a. Annual increase of student population especially students living in Paranaque City (this is a measure of market reach)

1b. Sales volume attained (This is the amount, in pesos, which is a measure of market success)

1c. Market Share/ Dominance in Paranaque City (this is a measure of market leadership)

Key Result Areas

1.To earn good financial returns for its trustees/ stockholders

2a. Amount of net profits realized for the next ten years (this is bottom line success measure)

2b. Return on Equity (ROE)= NI/SE

2c. Return on Assets = NI/TA; Return on Investments (ROI)= NI/TI

2d. Return on Sales = NI/ Sales

Key Result Areas

1.To prepare students to the demands of the 21st Century and be able to compete globally

3a. Growth in Sales/ Revenue (this indicates increasing student population due to quality education aligned with the demands of the 21st Century)

3b. Percentage of increasing student population from Paranaque City (this indicates increasing student population due to quality education aligned with the demands of the 21st Century)

3c. Number of parents commendations or complaints as measured by the frequency of voluntary praises or complaints made3d. Awards and recognition given by the community/ government/ other education groups for excellent quality education3f. Awards and recognition received by the students3g. Accreditation with education groups3h. National proficiency tests/ exams 3i. Increasing number of former students now employed abroad, occupies key positions with Multinational and/or known companies in the Philippines, and occupies key positions in the Government

Key Result Areas

1. To make St. Theresa School a happy and rewarding place to work

4a. Compensation and benefits of administrators, department heads, teachers, staffs are above industry rates

4b. Management and employee turnover (this measures level of contentment or discontentment with the school)

4c. Number of job applicants compared to other similar establishments (this measures reputation because of favourable word-of-mouth ‘advertising’ by its own management and employees to other people)

KRAs PERFORMANCE INDICATORS

  2001 2006 20111a. Student Population

50 455 1,912

1b. Sales volume (in Php)

750,000.00 7,575,863.75 38,885,242.64

1c. Market Share/ Dominance in Paranaque City (total pop. X %age of pop. of school age)

0.01% 0.12% 0.50%

Performance Indicators

Performance Indicators

KRAs PERFORMANCE INDICATORS

2a. Net Profit 225,000.00 2,272,759.13 11,665,572.79

2b. Return on Equity (ROE)= NI/SE

11% 17% 23%

2c. Return on Assets = NI/TA;

15% 23% 26%

Return on Investments (ROI)= NI/TI 15% 23% 26%

2d. Return on Sales = NI/ Sales 30% 30% 30%

Performance IndicatorsKRAs PERFORMANCE INDICATORS

  2001 2006 20113a. Sales Growth   910% 413%

3b. Percentage of Increase in Student Population   810% 320%

3c. Complaints 1 out of 50 1 out of 100 1 out of 300

Commendation 5 out of 50 10 out of 100 15 out of 300

3d. Awards and recognition received by the school none 10 20

3f. Awards and recognition received by the students from outside the school

2 50 70

3g. Accreditation with education groups 1 2 2

3h. National proficiency tests/ exams 90% 95% 100%

3i. Employment abroad, occupying key positions in gov’t. and in private inst.

10 out of 50 20 out of 100 40 out of 300

Performance Indicators

KRAs PERFORMANCE INDICATORS

4a. Compensation and benefits of administrators, department heads, teachers, staffs are above industry rates

same as industry

10% above industry

15% above industry

4b. Management and employee turnover

6 out of 10 per year

2 out of 15 per year

1 out of25 per year

4c. Number of job applicants compared to other similar establishments

5% more job applicants

7% more job applicants

10% more job applicants

Generating Strategic Options

Action Program

Full Spectrum of Right to Left Planning

Thanks and More Power!