1. Strategic management
Tarak Bahadur K.C., PhD
Basant Raj Sigdel

2. Session Outline Strategy - concept Strategic thinking
Strategic planning process

3. Strategy

4. Strategy Canvas
What comes to your mind while talking about Strategy? Please create a PICTURE/DIAGRAM within 5 minutes that expresses the term- ‘Strategy’. (You may use words or phrase as supplement)
Each participant will get 1 minute for drawing
Succeeding officers may build on the concept already drawn
You are requested not to communicate while drawing
Circulate your drawing to other groups
Share learning in plenary in 5 minutes

7. Strategy
- is a plan / tactics / scheme one adopts to get something done under conditions of uncertainty.
- is a method or plan chosen to bring about a desired future, such as achievement of a goal or solution to a problem.
- is an action oriented plan of operation for achieving desired goals based on situation analysis, and emphasises what an organisation will be doing in future.
- is the answer to the question “How”?
Strategies are simply a set of actions that enable an organisation to achieve results.

8. 5 Ps of Strategy – H Mintzberg
Plan
Perspective
Strategy
Ploy
Position
Pattern

9. Strategy …
PLAN
Consciously intended course of action, a set of guidelines to deal with the situation
PLOY
Specific maneuver intended to outwit an opponent or competitor
PATTERN
In a stream of actions…consistency in behavior whether or not intended
POSITION
Means of locating an organization in an environment
PERSPECTIVE
An engrained way of perceiving the world

10. Strategy Managerial Intent Logical incremental Rational command
Cultural / Political Process

11. 1. Strategy: A Managerial Intent
Logical incremental
Standardized planning procedures
Systematic data collection and analysis
Constant environmental scanning
On going adjustment of strategy
Tentative commitment to strategy
Step by step small scale change

12. Strategy: A …. Rational command
Senior managers determines and direct strategy
Strong vision or mission
Definite and precise objectives
Analysis and evaluation of environments
Clear plans

13. 2. Strategy: A Cultural/Political Process
Muddling through
Managing conflicting interest groups
Powerful groups with control over critical resources more likely to influence strategy
Standardized way of doing things
Routines and procedures embedded in organizational strategy
Deeply rooted beliefs and assumptions
Strong resistance to change
Gradual adjustment to strategy

14. Strategy: A …. Externally dependent
Strategy is imposed by external forces (e.g. legislation, parent organization)
Freedom of choice severely restricted
Groups dealing with the environment have greater influence over strategy
Political activity within organization and between environment likely
Externally driven strategy
- Johnson & Scholes

15. Strategic Thinking

16. Assess your strategic thinking abilities
Self Assessment
Assess your strategic thinking abilities
Time 10 minutes

17. Scoring Use the following table to interpret your score.
104–125
Exceptional: You’re a talented strategic thinker who possesses many of the traits, behaviors, attitudes, and cognitive capacities that are necessary for thinking strategically.
78–103
Superior: You’re a highly effective strategic thinker in many areas but would benefit from refining some of your skills.
51–77
Adequate: You know and practice many of the basics of strategic thinking. However, you can increase your success by further extending your skills.
25–50
Deficient: You’ll need to work broadly on your strategic thinking skills so that you can learn how to analyze opportunities and problems from a broad perspective and understand an action's potential impact on others.

18. Strategic Thinking

19. Strategic Management
… is the application of strategic thinking to the job of leading an organisation.
“Managing strategically”, in other words:
‘Diagnosing situation strategically’, and
‘Applying knowledge strategically’
“… is continuous, iterative process aimed at keeping an organization as a whole appropriately matched to its environment.”
Certo and Peter

20. Strategic Planning
Strategic Planning is a disciplined effort to produce fundamental decisions and actions that shape and guide what an organisation is, what it does, and why it does it with a focus on the future (JM Bryson). It focuses on the best ‘fit’ between an organisation and its environment. It is defined as the process of addressing the following questions:
The resulting document is Strategic Plan for performance improvement to achieve desired goals. A living document that has ability to create successful future of the organization.

21. Strategic Planning
SWOT
VMO
Strategy
The resulting document is Strategic Plan for performance improvement to achieve desired goals. A living document that has ability to create successful future of the organization.

22. Strategic …
Strategic planning is an organization's process of defining its strategy, or direction, and making decisions on allocating its resources to pursue this strategy.
The resulting document is Strategic Plan for performance improvement to achieve desired goals. It is a living document that has ability to create successful future of the organization.

23. Strategic Planning Process
It is an ongoing process and involving a series of steps to be followed.
Getting Ready (Agreement)
Environmental Scanning (SWOT Analysis)
Strategy Formulation (Identification of Strategic Issues, Vision,Mission, Objectives, Roles, Strategies)
Strategy Implementation (Strategic Actions (Action Plan): Actions/Activities, By whom, By when, Resources, Indicators, Critical factors)
Evaluation and Control

24. 1. Getting Ready (Agreement)
Assessing readiness
Commitment of leadership
Ability of leaders to devote necessary attention to the ‘big picture’
The purpose is to develop initial agreement among key internal decision makers about overall planning process for their support and commitment

25. Steps to Prepare for Planning
Obtain a formal commitment to conduct planning
Select a strategic planning committee of no more than five to seven people, a combination of visionaries and "actionaries,”
Develop a work plan or a plan to plan that outlines who is responsible for each outcome and time frames
Consider the adequate level of resources (money and time) required to conduct an appropriate planning process
Identify the information that must be collected to help make sound decisions

26. 2. Environment Analysis
Analysis and diagnosis of an organization, often referred to as an Organization Audit or SWOT analysis.
It is undertaken to assess an organisation’s ability to deal with its environment by identifying strengths, weaknesses, opportunities and threats (SWOT).

27. SWOT

28. Internal Environment Organisation / Supply side analysis
An analysis of internal organizational factors which reviews and investigates the prevailing resources, processes and performance of organization. The analysis identifies major strengths and weaknesses - of all the key functional elements (Structure, Functions, HR, Finance, IT, Rules, Procedures, etc.).
What are major internal Strengths and Weaknesses in terms of Structure, Resources, Processes, Performance, Culture, etc. ?

29. External Environment Demand side analysis
Covers the various stakeholders outside the organization. The analysis indicates the opportunities and threats faced by the organisation from its relationship with external stakeholders. Major categories of external environment: 1. Forces and trends – PEST 2. Clients, customers, or payers 3. Actual or potential competitors or collaborators What major external Opportunities and Threats (Political, Economic, Social, Technology, Legal, Stakeholders, etc.) do the organisation has?

30. Benefits of SWOT Analysis
Produces information vital to the organisation’s survival and prosperity
Allow seeing the organization as whole in relation to its environment
Clarify for the organization the nature of the ‘tension fields’ within which it exists
Timely actions may be taken to deal with threats and weaknesses

31. Considerations
Use precise, verifiable statements ("Cost advantage of Rs……/unit in sourcing resources x", rather than "Good value for money")- be specific.
Reduce long lists of factors, and prioritize them, so that you spend your time thinking about the most significant factors.

32. Sources of Information and Methods of Information Collection
Primary
Secondary
Methods of Information Collection
Interview
Focus group discussion / Workshop
Questionnaire Survey
Observation
Reviewing available materials

33. SWOT Profile

34. SWOT Profile- an example
Internal
Strengths
Weaknesses
Mandate / Vision / Mission
Structure
Systems / Processes
Organizational resources
Performance / outputs
Trained staff
Use of modern technology is not at optimum level
External
Opportunities
Threats
Political
Economic
Social
Technological
Recognition of Nepal army by international communities
Growing terrorism worldwide

35. Exercise: SWOT Analysis

36. Exercise Army Command and Staff College Army Hospital Welfare Fund
Logistics Management
Disaster Risk Management
UN Mission and Training

37. 3. Strategy Formulation: Identifying Strategic Issues
Fundamental policy questions or critical challenges that affect
An organization’s mandates, mission and values
Organization/management
Costs, financing
Services
Consumers, users…. About which something can be done.
John M. Bryson, Strategic Planning for Public and Nonprofit Organizations:  A Guide to Strengthening and Sustaining Organizational Achievement, rev. ed. (San Francisco:  Jossey-Bass, 1995), 30

38. Strategic Issues Prioritizing Issues Example
How to provide adequate health service to the needy people?
Prioritizing Issues
No action is needed at present, but needs monitoring
Can be handled as regular planning
Urgent, must be dealt with
Actionable/feasible, Resources, Stakeholder readiness, Importance

39. Vision, Mission, Objectives, Roles
…is a mental picture of a possible situation or state of affairs.
…a statement about what your organization wants to become. How the organisation would like the world in which it operates to be? What it should look like? Where it wants to go in future?
Example:
“All Nepali having adequate basic health service at their doorstep.”

40. Mission
- the fundamental purpose of an organisation, basically describing why it exists (reasons for existence – purpose) and what it does to achieve its Vision. Why it should be doing what it does?
Example:
“Promoting basic health service in the country involving CBOs related to health service and providing technical support to them for their institutional capacity development.”

41. Objectives
What you are trying to achieve by a particular course of action. Stated in terms of the results it needs/wants to achieve in future. Objectives should relate to the expectations and requirements of all the major stakeholders. They should be SMART.
Example:
Implement government policies and plans related to health service
Provide technical support to CBOs
Carry out basic health related studies and research

42. Roles
- the position that an organisation has in a particular situation, which determines how much it is involved in the situation or how much responsibility it has. Roles are identified considering strategic strengths and opportunities.
Example:
Policy advice
Implementation of policies
Research
HRD

43. Strategy Formulation Technically workable
Strategy is an action oriented plan of operation for achieving desired goals based on situation analysis, and emphasises what an organisation will be doing in future. An effective strategy must meet several criteria:
Technically workable
Politically acceptable to key stakeholders
Accord with the organisation’s philosophy and values.
Ethical, moral and legal,
Deal with issues it was supposed to address

44. Considerations in Formulating Strategies
Organisational competence and resources to capture opportunities
Environmental threats to its long-term well being
Personal values and aspirations of managers
Societal obligations and ethical considerations
Organisational culture

45. Strategic Options: TWOS Matrix-Weihrich
Opportunities
Threats
Strengths SO
(Maxi – Maxi) ST
(Maxi – Mini)
Weaknesses WO
(Mini – Maxi) WT
(Mini – Mini)

46. Strategy … Example of Strategy:
Establishing and strengthening CBOs related to health service
Fostering institutional networking and coordination
The Choice of Strategy depends upon organisation’s environment and mission and objectives.

47. Critical Success Factors
Strategic Plan
Objective
Strategy
Measures/ Indicators
Target
Initiatives
Resources
Critical Success Factors
What / Activities
Who
When
Improve health service
Increase number of health professionals
Decreased Doctor-Patient ratio
10 % by 2017
Increase the number of students / seats
MoHP, Pvt. Sector
2014
Budget Rs.xxx
Infrastructure (…type), Resource persons (xx no. and …qualification)
Budget availability from MoF, Availability of RP, Involvement of Pvt. Sector, Govt. policy

48. 4. Strategy Implementation
However beautiful the strategy, you should occasionally look at the results.
- Winston Churchill
For effective implementation, it needs to be translated into more detailed policies that can be understood at the functional level of the organization.

49. A General Framework for Strategy Implementation
Building an organisation structure to the requirements of the strategy
Allocating resources and energies on accomplishment of the strategic goals
Ensuring organisation-wide commitment
Installing administrative support system
Shaping the organisation culture to fit the strategy
Exerting strategic leadership

50. Basic Approaches to Strategy Implementation
Commander Approach
Organisational Change Approach
Collaborative Approach
Cultural Approach
Crescive Approach

51. I. Commander Approach Manager determines “best” strategy
Manager uses power to see strategy implemented
Three conditions must be met:
Manager must have power
Accurate and timely information is available
No personal biases should be present

52. II. Organisational Change Approach
Focuses on the organisation
Includes focusing on the organisation’s staffing and structure
Often more effective than commander
Used to implement difficult strategies

53. III. Collaborative Approach
Enlarges the organisational change approach
Manager is a coordinator
Management team members provide input
Group wisdom is the goal

54. Includes lower levels of the organisation
IV. Cultural Approach
Includes lower levels of the organisation
Breaks down barriers between management and other employees
Everyone has input into the formulation and implementation of strategies

55. V. Crescive Approach
Moves upward from the "doers“ and lower middle-level managers
The top management team shapes the employees' premises
“Strategy" becomes the sum of all successful approaches

56. 5. Evaluation and Control
The implementation of the strategy must be monitored and adjustments made as needed. Evaluation and control consists:
Defining parameters to be measured
Defining target values for those parameters
Performing measurements
Comparing measured results to the pre-defined standard
Making necessary changes

57. WHY STRATEGIC INITIATIVES FAIL?
SI will fail when one is STUPID:
Sponsorship not forthcoming
Team member do not function as agents of change
Unclear vision and commitment
Poorly planned change programme
Inappropriate/ Insufficient Communication
Don’t take account of culture

58. The SUCCESS Principle Shared vision Understand the organization
Cultural alignment
Communication
Experience help where necessary / Executive support
Strong leadership
Stakeholder buy-in / Systematic planning / Short-term wins

59. Strategic Plan- sample format
Background/Introduction
Purpose
Present Situation
SWOT Analysis
Supply side analysis
Demand side analysis
Strategic Issues
Vision, Mission, Objectives, Roles
Strategies and Activities
Action Plan

60. Conclusion
Strategic Management originated as a discipline in 1950s and 1960s is “diagnosing situation strategically” and “applying knowledge strategically” to achieve objectives.
It starts with getting ready for planning and moves on to addressing the questions: Where are we today? Where we want to go? How do we get there?
Organisations to achieve their long term objectives successfully have to put strategic management into practice strategically involving key stakeholders in the planning process at some level.

61. “If you don’t have a strategy, you will be …
“If you don’t have a strategy, you will be …. part of somebody - else's strategy.
- Alvin Toffler 61