VANTAGE ASSOCIATES, INC. MANAGEMENT CONSULTANTS STRATEGIC PLANNING Transforming Vision Into Action Vision Strategy Structure Systems Culture © Vantage Associates, Inc.

If you do what you have always done you will get what you have always got -- or less. Strategic Planning

Definition of Insanity Insanity is doing the same thing over and over again... each time expecting different results

Strategic Planning ä Planning is a tool for managing the change every organization must undergo ä Your planning process should recognize the key ingredients to successfully manage change

MANAGEMENT COMMITMENT SPECIFIC ACTION STEPS SUCCESSFUL CHANGE + + Requirements for Successful Change COMMON VISION 1. You must have a common Vision of what you are changing to and why 2. Employees must see that Management is committed to achieving the Vision 3. You must define the specific steps you will take to reach the Vision Only then can you manage change successfully

ä Manage change proactively ä Improved trust and communications ä Effective allocation of limited resources ä Improved organizational performance ä Increase focus ä Provide a catalyst for action The Planning Process Should:

äThe only purpose of planning is to improve performance. äPlanning is an evolutionary process that can be improved with each planning cycle. äPlanning is a continuous process, not an activity to be completed in a month or two. äThe real value in planning is in the process, not the document. äUncertainty about the future is the reason for planning, not an excuse for not planning. Our Planning Philosophy

äLeadership äCommon understanding of mission/purpose äEnthusiastic about mission/purpose äOpen communications -up, down, and laterally äHigh level of trust ä Teamwork ä High morale ä Commitment - sense of urgency ä Failure and success are viewed as learning experiences Characteristics of High-Performing Organizations

Strategic Planning äThe strategic planning process can be effectively used to: [Generate information [Identify issues [Improve communications [Reinforce culture; i.e., teamwork [Identify possible crisis points [Enhance decision making

Criteria for Effective Strategy äClear, decisive objectives äMaintaining the initiative äConcentration of power äConceding selected positions äFlexibility ä Surprise ä Security ä Communications ä Coordinated and committed leadership

Three Basic Questions A Strategic Plan answers three basic questions about the organization

PHASE I: Where Do We Want To Go? PHASE II: Where We Are Now? Long- Term View Situation Analysis Strategy PHASE III: What We Must Do To Close The Gap? Strategic Planning Process Three Basic Questions

Components of a Strategic Plan ä The “Three Questions” are too difficult to answer all at once ä Planners break these questions down into small components ä These individual components add up to answer the “Three Questions”

PHASE I: Where We Want To Go? Assumptions Weaknesses Strengths Opportunities Threats PHASE II: Where We Are Now? Critical Issues Key Decisions and Strategies Long- Term View Situation Analysis Strategic Plan PHASE III: What We Must Do To Close The Gap? Vision Constituent Groups Mission Values Goals Objectives (Short & Long Term) Action Plans Overview of The Strategic Planning Process

The Planning Pyramid VISION MISSION VALUES CONSTITUENTS GOALS OBJECTIVES (SHORT & LONG TERM)/STRATEGIES CRITICAL ISSUES/KEY DECISIONS ASSUMPTIONS ENVIRONMENTAL SCAN STRENGTHS, WEAKNESSES, THREATS, & OPPORTUNITIES SITUATION ANALYSIS

Strategic Planning Process Overview äConduct interviews and get input äGather background information äPrepare for off-site strategy session äFacilitate off-site strategy session äFinalize, communicate the plan äMonitor implementation

CONDUCT RESEARCH ANALYZE RESEARCH DOCUMENT PLAN COMMUNICATE PLAN #1#2#3 STRATEGIC PLANNING SESSIONS WHERE WE WANT TO GO WHERE WE ARE NOW WHAT WE MUST DO TO CLOSE THE GAP ACTION PLANS STATEMENT OF STRATEGY CRITICAL ISSUES STRENGTHS WEAKNESSES OPPORTUNITIES THREATS ASSUMPTIONS DISTINCTIVE COMPETENCE VISION MISSION VALUES LONG-TERM SHORT-TERM GOALS OBJECTIVES MONITOR PLAN FEEDBACK LOOP Strategic Planning Process ANNOUNCE TO ORGANIZATION

Factors Affecting Implementation äPerceived need äQuick results äEndorsement of line managers äCommitment of resources ä Clear benefits ä Understood concept ä Manageable tasks ä Past experience ä Identified sponsor

Some Obstacles to Corporate Planning äDifficult to predict future - i.e., competitive moves; new technology äInternal resistance äRequires significant resources äDifficult exercise/hard work äDifficult to achieve common understanding äRequires management and supervisory education

Sample Format VISION WEAKNESSES THREATS MISSION STRENGTHS VALUES OPPORTUNITIES CONSTITUENT GROUPS GOALS ____________________________ Strategic Plan

Sample Format CRITICAL ISSUES/ ACTION PLANS (Con’t) ASSUMPTIONS OBJECTIVES Short & Long Term CRITICAL ISSUES/ ACTION PLANS ISSUE: _______________________ ACTIONS: _____________________________ RESPON: _____________________ TIMING: ______________________ ISSUE: _______________________ ACTIONS: _____________________________ RESPON: _____________________ TIMING: ______________________ ISSUE: _______________________ ACTIONS: _____________________________ RESPON: _____________________ TIMING: ______________________ ISSUE: _______________________ ACTIONS: _____________________________ RESPON: _____________________ TIMING: ______________________ 1 YR 5 YR ____________________________ Obj1 Obj2 Obj3 Obj4 Strategic Plan