American Fraternal Alliance

Strategic Planning Session

May 29, 2019Chicago

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The Integrated Enterprise – A Strategic Framework

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Key Phases of the Strategic Planning Process

Discovery Design Develop Deploy

Critical Assessments

Planning Activities

Operational Planning Execution

Strategic planning is an ongoing process of defining an organization’s direction. The strategic plan is a living breathing document that becomes the blueprint for an

organization’s activities.

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Discovery Design• SWOT Analysis• Environmental Scan• Customer research• Business trends & analytics• Assessments – infrastructure,

processes, people, etc.

• Planning retreat/session• Critical success factors (CSF’s)• Key business objectives• Validation of vision, mission, values

and SWOT

Key Phases of the Strategic Planning Process

Develop Deploy• The plan document• Quantitative tools to assess & measure

progress• Functional objectives & tactics• Resource plan• Communications plan• Incentive plan

• Regular review meetings with staff (weekly/monthly) and Board (quarterly)

• Communications• Adjustments & tweaks when needed• Celebrate quick wins & breakthroughs

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Role of the Board

Ø Very active

Ø The Board’s governing responsibilities include fiduciary oversight, policy development and compliance, strategic direction of the organization, and ERM.

Ø Tone at the top is incredibly important.

Ø The Board ultimately approves the plan and allocates budgetary resources.

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Inhibitors and Pitfalls

Ø The shiny object syndrome

Ø The culture trumps the strategy

Ø Unrealistic SWOT

Ø Too many objectives

Ø Poor prioritization of the CSF’s

Ø Poor resource allocation

Ø Not assessing execution regularly

Ø Poor integration with the operating budget

Ø Limitations in core competencies~ Fortune Magazine

“Less than 10%of strategies

effectively formulated,are

effectively executed”

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Best Practices and Accelerators

Ø The SWOT Analysis must be authentic

Ø The plan must have a high degree of correlation to the mission

Ø The plan must have good buy-in at all levels (staff & Board)

Ø The plan must be communicated effectively and repeatedly

Ø Regular reviews are imperative

Ø Adequate resources must be allocated

Ø The plan must be holistic and value-creating

Ø The plan should tie management variable compensation to plan execution

Ø Integration of cross-departmental and consulting resources while day-to-day operations continue

Ø Strategic priorities have to be sequenced to match resources

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Tools to Facilitate Plan Execution

• Strategy maps• Gant charts• Excel spreadsheets• Enterprise-level and functional-level scorecards and

dashboards• Color-coded scoresheets

Breakthrough On Target At Risk Missing Target

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The Point Person

Ø An executive staff person needs to be the point person for all divisions/departments

Ø Each senior officer/leader has to be accountable and responsible for his/her goals.

Ø Regular reviews are business-critical.

Ø At GBU, the point person is the CEO.

Ø Some organizations have an Office of Strategy Management.

Ø Many organizations have a Strategic Planning Committee comprised of Board members and staff.

Ø The role of the point person is critical – trusted, great communicator, facilitator, advocate, etc.

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Managing Objectives

Ø Always tie the ideas back to the critical success factors and key business objectives.

Ø The objectives & key initiatives should be ranked according to their ability to create value for the organization and its members.

Ø The plan should prioritize enterprise-level activities.

Ø The objectives must have a clear line of sight to the SWOT analysis, particularly addressing the weaknesses

Ø There must be a strong linkage to the mission, vision and values of the organization.

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Changes to the Plan

Ø “Stuff” always happens throughout the year.

Ø Any new event should be assessed in relation to the strategic plan.

Ø A good SWOT analysis should create a radar screen whereby nothing major should surprise an organization.

Ø Contingencies should be in place to manage any major weakness or threat so that the Board and management can react appropriately.

Ø Example: The Great Recession

Strengths Weaknesses

Opportunities Threats

SWOT Analysis

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Facilitation

Ø The development and execution of a strategic plan is one of the top responsibilities of a Board and CEO.

Ø If an organization does not have an executive on staff who is familiar with the strategic planning discipline, using an outside facilitator/expert is critical.

Ø An outside facilitator can ask the tough questions and create greater objectivity and accountability.

Ø He/she can bring new insights and a broader perspective that can be considered by the organization.

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Guiding Resources