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Strategy and Planning - National Tourism Development ... · PDF file Strategy and Planning Guide . Every tourism business plans ahead to some degree, but historically the greater focus

Jun 25, 2020

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  • Strategy and Planning

    A guide to help you look to the medium and longer term future and take concrete steps to ensure that the

    envisaged future actually materialises

    Strategy and Planning form an important component in Strategic Management (see Strategic Management Guide) and are designed to ensure that, first, your business is looking to the medium and longer term future and, second, that you are taking concrete steps to ensure that the envisaged future actually materialises. It is a filter- down process whereby the strategic plans are developed and then implemented through your annual plan; it is important to emphasise that strategic and annual planning is not about ‘hitting and hoping’, but is based on making decisions about the future direction for your business following a comprehensive research and analysis phase.

  • Strategy and Planning Guide

    Every tourism business plans ahead to some degree, but historically the greater focus has been on short- term or operational planning, which is of course important but is never enough. Operational planning can help to ensure that you ‘do things right’ in the sense that you manage the business day to day, week to week, in an effective way. But, you also need to ensure that you ‘do the right things’ with regard to moving the business in the right direction, and this is where strategy and planning comes in. This guide covers the following information:

    The Phases in Strategic and Annual Planning ...................................................... 3

    1 Managing Profit and Performance – Strategic & Annual Planning ............................................. 4

    1.2 Agree Vision, Mission and Values statements ...................................................................................... 4

    1.3 Conduct an Environmental Analysis .................................................................................................... 4

    1.1 Engage with Primary Stakeholders ..................................................................................................... 4

    1.4 Define Goals and Prepare Strategies .................................................................................................. 8

    1.5 Prepare Annual Business Plan ............................................................................................................ 9

    2 Managing Profit and Performance – Strategy Execution and Evaluation Phases .................... 11

    Activity – Reflect upon your current approach to strategic and annual planning ......................................... 12

    Conclusion ........................................................................................................... 12

    2

  • The Phases in Strategic and

    Annual Planning

    1. Managing Profit and Performance – Strategic & Annual Planning

    Prepare Annual

    Business Plan

    Define Resource & Competence

    Requirements

    Prepare a Strategic

    Plan

    Define Strategic

    Goals

    Conduct an Environmental

    Analysis

    Agree Vision,

    Mission and Values

    Engage with Primary

    Stakeholders

    How will we know

    we are getting there?

    How will we

    get there?

    Where are we now? and

    Where do we

    want to be?

    3. Managing Profit and Performance – Review & Evaluation

    Define Financial & Non- Financial Key

    Performance Measures

    Agree Review Intervals (weekly, monthly, quarterly

    etc.) and Allocate Responsibilities for each

    Review and Analyse Performance at Agreed

    Intervals

    Conduct External Results

    Benchmarking Activities

    2. Managing Profit and Performance - Execution

    Management Performance

    Define Leadership

    Competences

    Set Individual Performance

    Targets

    Review Management Performance

    Continuously Develop your Management

    Team

    Incentivise High Performance

    Provide for Succession

    Planning

    Maintain High Visibility &

    Approachability

    Employee Performance

    Manage Recruitment &

    Selection

    Adopt a strategic

    approach to HR

    Enhance Employee

    Communication

    Provide Continuous Training &

    Development

    Optimise Employee

    Engagement

    Recognise High Performance

    Monitor Employee Feedback

    Sales & Marketing

    Conduct Effective Market

    Research

    Develop the Product &

    Service Offering

    Agree & Resource Marketing

    Plans

    Devise & Implement an

    e-Business Strategy

    Optimise Direct Selling Effectiveness

    Align Advertising &

    Promotion Activities

    Customer Relationships

    Manage Quality Standards &

    Efficiency

    Encourage Product &

    Service Innovation

    Manage Customer

    Relationships and Reward

    Loyalty

    Implement a Service

    Recovery Processes

    Provide on- going Service

    Training

    Capture and Analyse

    Customer Feedback

    Operational Productivity

    Assign Process

    Owners & Agree Targets

    Identify Key

    Operational & Support

    Processes

    Devise an In- Company Innovation

    Framework & Continuously

    Implement Process

    Improvements

    Conduct Operational Efficiency

    Audits

    Organise Process

    Benchmarking Activities

    Financial Management

    Agree Investing &

    Financing Strategies

    Build Financial & Information

    Systems

    Establish & Maintain

    Business-wide Controls

    Agree Financial Reporting Intervals

    Agree and Manage Pricing

    Strategies

    Enhance Budgeting & Forecasting Capabilities

    3

  • As outlined in the Understanding Strategic Management guide, Strategic Management is an all-encompassing activity with your business. One of the reasons why strategic and annual planning hasn’t been as widely applied within tourism as it might have been is that from a distance it can seem like a very unwieldy and complicated process. But it doesn’t need to be, and when you understand the strategic management process presented above, you quickly recognise just how important strategic and annual planning is as part of that and this guide will primarily focus on that aspect of the Strategic Management model.

    1 Managing Profit and Performance – Strategic & Annual Planning

    In laying the foundation for your strategic and annual planning efforts you should address a number of issues here:

    1.1 Engage with Primary Stakeholders

    Stakeholder Engagement means engaging with your key stakeholders to better understand their needs and expectations and to plan accordingly. A separate guide on Stakeholder Engagement is available on Business Tools. Some questions to help you here include:

     What do your owners/investors/lenders expect? How supportive of you are they? What do they think about issues like service quality and employee engagement?

     Who are your customers? Can you divide them into different key segments? What are your customers’ needs by segment? Are you meeting and more importantly exceeding them? What do your customers think about you at present? How do you know? When customers do give you feedback, how often does the word ‘excellent’ feature?

     Are your employees competent, committed and motivated? Do they play an active or passive role in day to day decision-making?

    1.2 Agree Vision, Mission and Values statements

    As a result of engaging with your primary stakeholders you will have a clearer understanding of their needs and expectations. Truly having a stakeholder focused business means that you should develop, or revise your Vision, Mission and Values statements to capture what you are seeking to deliver for your key stakeholders. Details on how to do so can be found in the Leading your Organisation online guide.

    Many businesses pay lip-service to the issue of stakeholder focus but best in class companies have Vision, Mission and Values statements which genuinely guide business activities and serve as the foundation to all strategic and annual planning efforts.

    1.3 Conduct an Environmental Analysis

    Like any decision-making process, which planning at all levels essentially is, you need facts to guide you so strategic planning begins with a research phase. It is often assumed that strategic planning is only the concern of senior management but everyone in the business has a role to play in the process, appropriate to their level of course. In essence, you and your senior

    4

    http://www.failteireland.ie/FailteIreland/media/WebsiteStructure/Documents/2_Develop_Your_Business/1_StartGrow_Your_Business/Understanding-Strategic-Management.pdf http://www.failteireland.ie/FailteIreland/media/WebsiteStructure/Documents/2_Develop_Your_Business/1_StartGrow_Your_Business/Managing-Stakeholder-Engagement.pdf http://www.failteireland.ie/FailteIreland/media/W

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