criteria 102 how strategic plans create organizational ......1. understand why strategic planning is...
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Criteria 102
How Strategic Plans Create Organizational Transformation & Focus
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Session Objectives
1. Understand why strategic planning is important to your organization.
2. Understand the difference between strategy and tactics.
3. Learn how to get started with Strategic Planning, and understand the key components of a strategic plan.
4. Learn how to develop a successful action plan, and move from plan to action.
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Florida Sterling Management Framework
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Strategy - Criteria
2.1 Strategy Development: How do you develop your strategy?
a. Strategy Development Process(1) Strategic Development Process(2) Innovation(3) Strategy Considerations(4) Work Systems and Core
Competencies
b. Strategic Objectives(1) Key Strategic Objectives(2) Strategic Objective Considerations
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Strategy - Criteria
2.2 Strategy Implementation: How do you implement your strategy?
a. Action Plan Development and Deployment(1) Action Plans(2) Action Plan Implementation(3) Resource Allocation(4) Workforce Plans(5) Performance Measures(6) Performance Projections
b. Action Plan Modification
Objective #1
Understand why strategic planningis important to your organization.
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Strategic Plans – Focus on Success
• Strategic planning provides clarity, direction, and focus for your organization. What is our purpose? (Mission) What do we want to achieve? (Vision) How are we going to get there? (Plan)
• A plan communicates your message.
• A strategic plan drives organizational alignmentand integration.
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Strategic Plans – A Call to Action
Unaligned Aligned Integrated
Reflection: Importance of Strategic Planning
List four (4) reasons why Strategic Planning is important to your organization.
Objective #2
Understand the difference between strategy and tactics.
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Strategy versus Tactics
Strategy:• Defines your long-term goals and how you’re planning to
achieve them. • Strategy gives you the path you need toward achieving your
organization’s mission.• Strategy may involve complex operational patterns and
decision-making that governs tactical execution.
Key Words: “What”, “Why”, “How Much”, “By When”
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Strategy Versus Tactics
Tactics:• Tactics are much more concrete and are often oriented
toward smaller steps and a shorter time frame along the way.
• They involve best practices, specific plans, resources, etc.
Key Words: “How”, “Where”, “When”, “Who”
Tactics Strategy Mission
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Strategy Versus Tactics
• Strategic Objectives drive the means to achieve them.
• The means are the tactics to achieve the Strategic Objectives.
Objective: Improve Customer Satisfaction (Strategic “What”)
Means: Reduce Wait Time (Tactical “How”)
Means: Reduce Defects (Tactical “How)
Means: Improve Understanding of CustomerRequirements and Expectations (Tactical “How”)
Reflection: Strategy versus Tactics
For the following Strategic Objective, list three (3) possible “means” to achieve the objective:
Reduce Employee Turnover
Objective #3
Learn how to get started with Strategic Planning,and understand the key components of a
Strategic Plan.
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Strategic Planning - Phases
Strategic Planning Phases• Establish• Deploy• Implement• Check
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Strategic Planning – Components Establish
The Plan for Strategic Planning
− When planning will take place?
− What resources are needed to develop the Strategic Plan?
− What data must be gathered, and analysis what analysis must take place?
− What reviews and approvals must occur?
− How will effective communication, and deployment of the plan take place?
− How will modifications will be applied?
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Strategic Planning - Calendar of Events Establish
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DECBoard
Meeting
Draft Strategy
Analyze Business & Technology Needs
Budgeting
Board Meeting
Board Meeting
Board Meeting
Conduct Environmental
Scan
Analyze“Voices” Data
Analyze Current Capabilities
Next FYStrategic
Plan
“Quarterly”Review
MonthlyStatus
MonthlyStatus
MonthlyStatus
MonthlyStatus
MonthlyStatus
“Quarterly”Review
MonthlyStatus
MonthlyStatus
“Quarterly”Review
MonthlyStatus
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Strategic Planning – Resources Establish
Involvement at all levels of the organization promotes:• Active participation• Identification of potential blind-spots• Buy-in of the plan• Enhance workforce engagement• Beginning of effective communication
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Strategic Planning – Data and Information Establish
Strategy
Market analysis• Market trends• Competitive analysis • Scenario planning • Various positioning techniques
Financial • ROI• Stock market evaluations• Consolidation trends• Analysts expectations
Legal• Legislative actions, both national and local• Regulatory actions and announcements
Industry• Trends (periodicals, trade shows, etc.)• Technology studies
Organizational Feedback• Performance measurements• Capabilities
FinancialCommunity
Legal / Regulatory
Market Analysis
IndustryFeedback
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Customer Needs• Market research• Voice of the customer
Competition • Benchmarking• Competitive data analysis• Industry reports• 10Ks
Employee Needs• Performance Management • Voice of the Employee
Current Capabilities• Activity inventory• Process analysis • Voice of the Business
Business/Technical Issues• Business issues• Technology needs
Trends• Trends of industry• Benchmarking
Risks• Risk analysis
Competition
EmployeeNeeds
Customer Needs
CurrentCapabilities
Business/Technical
Issues
Trends Risks
Strategy
Strategic Planning – Data and Information Establish
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Budget• Budget guidelines
Training Plan• Skill set assessment• Management training assessment
Action Plans• Performance Improvement System• Timelines
Measurements• Process analysis• Indicators / targets• Key productivity measures• Benchmarking
Accountabilities• Day-to-Day Work Management• Organizational Design
Budget
Accounta-bilities
Measure-ments
TrainingPlan
ActionPlans
Strategy
Strategic Planning – Data and Information Establish
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Strategic Plan Considerations Establish
• Why are we here?• What are we to accomplish?• Where do we fit in the
organization?• What does our organization
look like?
• Who are our customers?• How do we segment them?• What do they receive from us?• What do they expect? • What are our current measures?
• How are we trending?• How do we compare?• What do we have going for us?• What are our challenges and
opportunities?
• What is critical to our success?• What do we need from others?
• What are our most critical gaps?• What do we need to focus on now?
How AreWe Doing?
Mission
Who We Are
Who We Serve
Where Do WeNeed to Focus?
What Do WeNeed?
Where Are We At?
• What are our priorities? • How do we measure their
achievement?• What are our goals?• How are we progressing?
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SMART Goals Establish
Specific – The topic is clear and objectively stated.
Example: Reduce Employee Turnover
Measurable – The topic is quantified with actual performance.
Example: 25% Annualized Rate
Achievable – A target has been established.Example: 20% Annualized Rate
Relevant – The topic aligns with higher-level KPIs, Strategic Plan, or other key success factors.Example: Aligns with the Critical Success Factor – Capable Workforce
Timebound – A date for achieving the target is define.Example: December 31, 2020
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• The SMART concept is a framework for defining results-oriented, relevant, and objective goals.
• It is applicable at all levels of an organization – from strategic goals to individual performance appraisals.
• It can be used to identify the key elements of:
− strategic objective measures,
− process measures, and
− performance measures.
• Strategic and process measures are often focused on “activities” and not “outcomes”. This is an indication of measurement system maturity and reaction vs. prevention.
SMART Goals Establish
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Why this Priority: • Recent customer satisfaction surveys
indicate an overall gap of 2.48pt between current and expected performance.
Why this KPI:• Critical to satisfy customer
expectations• The customer survey
methodology provides input from key customers
• Survey frequency allows mid-year measure towards progress
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2
4
6
8
10
2000 2001 2002 2003
Avg Gap Avg Performance Rating Avg Expected Rating
8.98.9 9.029.02 8.628.62 8.648.64
7.17.1 6.726.72 6.316.31 6.166.16
1.81.8 2.302.30 2.312.31 2.482.480
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4
6
8
10
2000 2001 2002 2003
Avg Gap Avg Performance Rating Avg Expected Rating
8.98.9 9.029.02 8.628.62 8.648.64
7.17.1 6.726.72 6.316.31 6.166.16
1.81.8 2.302.30 2.312.31 2.482.48
Gap Analysis by Year – Company Wide
What are the Risks to AchievePriority:• Inadequate communication • Inability to manage customer
expectations • Poor project execution
Priority: Improve Customer Satisfaction
Strategic Planning – Catchball Establish
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Establish Contributing Plans Deploy
Where Do WeNeed to Focus?
How AreWe Doing?
Mission
Who We Are
Who We Serve What Do WeNeed?
Where Are We At? Where Do We
Need to Focus?
How AreWe Doing?
Mission
Who We Are
Who We Serve What Do WeNeed?
Where Are We At?
Where Do WeNeed to Focus?
How AreWe Doing?
Mission
Who We Are
Who We Serve What Do WeNeed?
Where Are We At?
Corporate
Requirements
Business Area Department
Requirements
Individual Commitmentsare established at the proper
organizational level and should be the basis for the performance management
process objectives
Constraints
Constraints
Reflection: Key Components of a Strategic Plan
List three (3) key components of a Strategic Plan
Objective #4
Learn how to develop a successful action plan, and move from plan to action.
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Strategic Planning - Phases
Strategic Planning Phases• Establish• Deploy• Implement• Check
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Implementation Considerations Implement
• In the Implementation Phase, Strategic Plan content now moves from strategic to tactical.
• Tactical Contribution Types
− Organizational contributions
− Cross-functional team contributions
− Individual contributions
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Implementation Considerations Implement
Contribution Tools− Contribution Tables
Who will contribute
How will they contribute How much will they contribute
− Actions Plans
Activity
Who is responsible
When will the activity be complete
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Contribution Tables Implement
Contribution Table
OBJECTIVE: Reduce Employee TurnoverCHAMPION: Sue Smith
INDICATOR: Attrition Rate
2018 ACTUAL: 37% (53 Positions)
2019 TARGET: 28% (40 Positions)
GAP: 25% (13 Positions)
ACCOUNTABILITY AREA of FOCUS PLANNEDDATE
ACTUALDATE
EXPECTED CONTRIBUTION to
TARGET
ACTUAL CONTRIBUTION to
TARGET
John JonesCreate the method, process, and tools to analyze attrition and set realistic goals at all functional levels
0 Positions
Bob BurnsReview and re-educate leaders on HR, Attendance, and PTO policies
2 Positions
Bob Burns Improve training curriculum and delivery 3 Positions
John Jones Develop on-boarding for leaders 3 Positions
John Jones Improve selection process and drive the right hires 6 Positions
TOTAL IN PLACE TO ACHIEVE CONTRIBUTION 14 Positions
GAP OR EXCESS PLANS +1 Position
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Contribution Tables Implement
Action Plan
Reduce Employee Turnover RESPONSIBLE: Sue Smith
AREA OF FOCUS: Create the method, process, and tools to analyze attrition and set realistic goals at all functional levels
ACTIVITY RESPONSIBLE PLANNEDDATE
ACTUALDATE STATUS NOTES
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Contribution Tables
ALL Action Plans
Strategic Action Plan
Strategic Action Plan Implement
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Reviews Check
1. Schedule reviews at planned intervals.
− Contribution Tables
− Action Plans
− Roll up to Strategic Action Plan
− Strategic Plan
2. Conduct reviews when circumstances change and a shift in action plans occurs
Reflection: Contribution Tools
What are the two (2) Contribution Tools used to develop Strategic Action Plans?
Session Objectives Review
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Session Objectives
1. Understand why strategic planning is important to your organization.
2. Understand the difference between strategy and tactics.
3. Learn how to get started with Strategic Planning, and understand the key components of a strategic plan.
4. Learn how to develop a successful action plan, and move from plan to action.
Reflections
Please go to the link below to complete the Strategy Reflections
https://www.surveymonkey.com/r/2020Cycle