1. Strategic management Basanta Raj Sigdel Suwarn Kumar Singh
Pratibha Dhungana

2. Agenda of the Session Strategy in an organizational context
Strategic thinking
Strategic planning process

3. “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 3

4. Mind Reading
What comes to your mind while talking about Strategy? Please create a PICTURE within 5 minutes that expresses the term- ‘Strategy’.
Each participant will draw a concept first
Succeeding officers will 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

6. Five Ps of Strategy (Mintzberg)
Plan
Perspective
Strategy
Ploy
Position
Pattern

7. Five Ps of 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

8. Strategic Thinking

9. Strategic Thinking

10. 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

11. 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.

12. 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.

13. 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

14. Environmental 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).

15. Internal (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. ?

16. External (Demand Side) Analysis
The analysis indicates the opportunities and threats faced by the organization 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 organization face?

17. 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.

18. Information for SWOT Primary Secondary Interview
Sources of Information
Primary
Secondary
Methods of Information Collection
Interview
Focus group discussion / Workshop
Questionnaire Survey
Observation
Reviewing documents, reports, etc.

19. SWOT Profile

20. 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

21. Exercise: SWOT Analysis

22. Sample organizations for Exercise
Army Command and Staff College
Army Hospital
Welfare Fund
Logistics Management
Disaster Risk Management

23. 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

24. Strategic Issues Prioritizing Issues Example
How to optimize technology in enhancing operational efficiency of the organization?
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

25. 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:
“Center of Excellence in developing managerial capabilities of public service organizations”

26. 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: “Develop managerial competencies and organizational capabilities of public sector through training, consulting and research services”

27. 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:
Ensure training programmes based on real learning need of officers.

28. 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

29. 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

30. Strategic options: TWOS Matrix (Weihrich)
Opportunities
Threats
Strengths SO
(Maxi – Maxi) ST
(Maxi – Mini)
Weaknesses WO
(Mini – Maxi) WT
(Mini – Mini)

31. Considerations in strategy formulation
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

32. Strategy
Example: Foster institutional networking and coordination The Choice of Strategy depends upon organisation’s environment and mission and objectives.

33. 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 2020
Increase the number of students / seats
MoHP, Pvt. Sector
2018
Budget,
Infrastructure, RP (???)
MoF, Availability of RP, Involvement of Pvt. Sector, Govt. policy

34. 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

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

36. WHY STRATEGIC INITIATIVES 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

37. 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

38. 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.

39. The story continues…