1. INSTITUTE OF CERTIFIED PUBLIC SECRETARIES OF KENYA Board and Strategic Leadership Seminar Venue: Sarova Panafric Hotel Session: Strategic Leadership Role of the Board Raphael G. Mwai, MBS, FCPS (K) PPD Consultants Ltd 3 rd floor, Bishops Garden Towers, P.O. Box 47972-00100, Nairobi, Kenya Tel: 2733441, 2733438 Fax: 2733448 Email info@ppdconsult.cominfo@ppdconsult.com Website: www.ppdconsult.com Date: July 10, 2015www.ppdconsult.com Presented by:

2. 1. Outline of presentation 1.The Strategic Leadership Role of the Board; 2.Role of the Board in Strategic Planning process 3.Corporate Strategy and sustainability 2 Raphael G. Mwai, MBS, FCPS(K) – July 10, 2015

3. 2. Strategic leadership role of the Board Articulating the vision and goals of the organization;  Vision;  Mission;  Goals Planning how the goals are to be achieved;  aligning the organization with the environment;  entrepreneurial leadership;  mobilizing resources;  empowering management;  Developing core competence. Providing leadership in the management of change; Entrenching good corporate governance in the organization; Nurturing positive relations with stakeholders; Developing and nurturing a positive organizational culture 3 Raphael G. Mwai, MBS, FCPS(K) – July 10, 2015

4. 3. Role of the Board in the strategic planning process Facilitating the strategic planning process; Validating and adopting the Strategic Plan; Overview of the Strategic Plan ; The Strategic Plan:  A statement of organizational goals and how these are to be realized. Strategic planning:  Systemic and organized attempt to look ahead and achieve set objectives. 4 Raphael G. Mwai, MBS, FCPS(K) – July 10, 2015

5. Con’t Why plan:  To enable the organization creatively respond to changing environment Planning process: key questions:  Where are we;  Where do we want to be;  Why do we want to be there;  How shall we get there;  How shall we know that we have got there Raphael G. Mwai, MBS, FCPS(K) – July 10, 2015

6. Strategic Plan Framework NoDimensionExplanation 1Mission  Outriding purpose of the organization;  Why the organization exists 2Vision  The strategic intent;  The desired future state of the organization 3Core-values  Fundamental beliefs and practices that shape organizational culture 4Contextual analysis  Analysis of the external and internal environment in which the organization operates ;  Analysis of key stakeholders and their expectations 5Strategic themes  Essential elements of the strategic plan;  Pillars of excellence in the Strategic Plan 6Objectives  The ends which the organization seeks to achieve;  Specific targets for assessing organizational performance 7Strategies  Programs and means of achieving objectives 8Action plans  Activities through which strategies are implemented 6 Raphael G. Mwai, MBS, FCPS(K) – July 10, 2015

7. Contextual analysis 7 The Paradigm Environmental Forces Opportunities and Threats Organizational Capabilities Strategy Performance InternalExternal Strengths and Weaknesses  Industry and competitor profile  Political  Economic  Social  Technology  Legal framework  Organizational structure  Leadership and governance  Human resource management and development  Service delivery  Financial resources management  Organizational culture Raphael G. Mwai, MBS, FCPS(K) – July 10, 2015

8. 5. The Four Actions Framework (Blue Ocean Strategy) 8 REDUCE Which factors should be reduced well below the industry’s standard? REDUCE Which factors should be reduced well below the industry’s standard? ELIMINATE Which of the factors that the industry takes for granted should be eliminated? ELIMINATE Which of the factors that the industry takes for granted should be eliminated? CREATE Which factors should be created that the industry has never created? CREATE Which factors should be created that the industry has never created? A New Value Curve RAISE which factors should be raised well above the industry’s standard? Source: Blue Ocean Strategy Raphael G. Mwai, MBS, FCPS(K) – July 10, 2015

9. 9 4. Corporate strategy and sustainability Sustainability defined:  long term growth and competitiveness of the organization;  Value creation that meets the present needs without compromising the future needs of the organization Foundations of corporate sustainability  effective leadership at board level;  strategic approach to management;  effective execution of strategy;  good governance practices Raphael G. Mwai, MBS, FCPS(K) – July 10, 2015

10. 7. Implementing strategy: Balanced Scorecard approach 10 Source: Kaplan & Norton Raphael G. Mwai, MBS, FCPS(K) – July 10, 2015

11. Notes on Balanced Scorecard perspectives Financial perspective  revenue growth and mix;  cost reduction/productivity improvement;  asset utilization Customer perspective  market share;  value proposition;  customer acquisition;  customer relations  customer retention 11 Raphael G. Mwai, MBS, FCPS(K) – July 10, 2015

12. Con’t…. Business processes  innovations;  operations;  post-sale service Learning and Growth  employee capability;  motivation and empowerment  information systems capability Raphael G. Mwai, MBS, FCPS(K) – June, 2015 12

13. Key to strategy implementation appropriate organizational structure  governance  management competence and capabilities  leadership;  staff;  Management. Management processes  functional plans;  programmes and projects;  budgeting;  monitoring and evaluation; Organizational culture  ethics and integrity;  teamwork and mutual support;  civic responsibility; 13 Raphael G. Mwai, MBS, FCPS(K) – June, 2015

14. THANK YOU!