lecture 04b planning n strategy

PLANNING AND STRATEGY: BRINGING THE VISION TO LIFE

McKee (2010)5 - *

PLANNING AND STRATEGYHow Do People Plan for the Future? What Does Planning Look Like in Organizations? How Do You Plan in Uncertain Times? What Is a Mission? Why Does Vision Matter? What Is Strategy? What Needs to Be Considered in a Strategic Planning Process? What Are the Steps in the Strategic Planning Process? What Is HRs Role in Planning and Strategy? What Can We All Do to Support Effective Strategic Planning? 5 - *

HOW DO PEOPLE PLAN FOR THE FUTURE?

People think about the future in different ways, i.e.:Focus on outcomesAction orientedFocus on direction and a meaningful vision.Human beings are purposeful creatures seek to identify a noble purpose, a mission, and a vision, as well as a way to get there through strategies, goals, and actions. Introduction5 - *


Exploring How People Think About and Plan for the Future 5 - *

TypeDescriptionGoal-oriented planningdetermining the activities and steps from an existing state to a clearly defined end state. may involve forward planning (devising a set of steps that arrive at the goal) and backward planning (devising a set of steps from the goal to the existing state), or both.Directional planningidentifying a domain (general area of activity) and direction (preferred values and activities) rather than specific goals.Action-Oriented planning directing ones attention to the task at hand.


Define planning and explain why it is both a rational process and a creative process.

What approach do you tend to use when planning for the future? Do you focus more on goals, vision, or current activities?

What effect does your approach to planning have on your success in school? At work? In your social life?

Which of the following things do you think you should learn more about and practice: setting goals, envisioning a future that is meaningful to you, or finding ways to be in flow when engaging in work or school activities?Most popular >> Discussion Questions5 - *

WHAT DOES PLANNING LOOK LIKE IN ORGANIZATIONS?

Goal setting is often seen as the way to plan in organizations BUT not everyone is goal oriented.

Overreliance on goal setting can result in too much attention to short-term objectives.Plans: More Than Goals and Metrics5 - *


Types of Plans Used in Organizations5 - *

Short-term planTypically created for a period of 1 year or less; has a definite end point.

Long-term planOften in place for three or more years; end point not always determined; can be complex and require substantial resources.

Single-use planUsed once for a unique situation.Standing planDesigned for repeated, ongoing activities.


Types of Plans Used in Organizations5 - *

Operational planDetailed outline of how goals are to be achieved.Strategic planTypically a far-reaching plan that articulates and synthesizes mission-driven, strategic goals for a business.

Financial planPlan for providing financial resources to support an organizations activities.

Contingency planPlan to respond to a crisis or a failed plan; a back-up plan.

Project planPlan that outlines specific actions, time frames, roles, responsibilities, objectives, and outcomes for particular work projects to be done by one or more people.


Think about a sports team, club, or committee to which you belong. How does this group plan for the future? Review the preceding section to describe what your group does or has done in the past. What could you and other members do to improve the planning process?

It is never too early to start thinking about your plans for your life and work after college. What short-term plans do you currently have that are related to your life after college? What long-term plans have you created?

Think of a time when a plan did not go as you expected. How did you react? What did you do? Did you have a contingency plan? Did it work?Most popular >> Discussion Questions5 - *

HOW DO YOU PLAN IN UNCERTAIN TIMES?

To ensure plans are dynamic and can be adapted when change occurs is to:

clearly link plans to mission and vision, andinclude multiple sub-goals that are discrete and individually planned.Creating Plans That Can Change: A Modular Approach5 - *

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Scenario planning a dynamic, systematic process in which people envision all the what-if scenarios for given situations and plan for several likely possibilities.Scenario Planning5 - *

Flexible and adaptable planning models are more likely to generate organizational success. *


Why is it important to learn to planand to change plansin todays world and work environment? Give examples from your experience.

Research an industry you find interesting, or one in which you are considering working after college. What changes have occurred in the industry or the environment in the last five years that likely caused leaders to change plans?Most popular >> Discussion Questions5 - *

WHAT IS A MISSION? WHY DOES VISION MATTER?

Introduction5 - *


Clarity about the organizations mission, its fundamental purpose, and how it is different from its competitors can help make choices:easier, more logical, and more likely to lead to success.Mission Clarity Leads to Better Choices 5 - *Source: Motor Sales Big Brothers Big Sisters Mission and Vision Statements; Toyota Motor Sales mission and Vision Statements.


Vision: Our Highest AspirationWho establishes an organizations mission and vision?Small, entrepreneurial start-ups founder/s Larger organizations top leaders Sometimes employees drive the process more directly, with the support of leadership and HR. 5 - *

In many companies, HR leaders drive this process by doing research and creating opportunities for the executives to engage in conversations about the vision.*


Take a look at your colleges mission statement. What does it tell you about the institution? Do you feel it accurately describes what your college is and does?

One tactic some college seniors use to prepare for the job market is to write their own personal mission statement. You can try this, too. Write a personal mission statement that captures who you are and what you do. You might start with answering these big questions: Who are you? What do you stand for? Whats your purpose in life and in work?

Choose a company that you admire. Perhaps it is one you buy from repeatedly or one whose products you have always dreamed of buying. What do you see as that companys competitive advantage? Were you initially attracted to this company because of its competitive advantage?Most popular >> Discussion Questions5 - *

WHAT IS STRATEGY?

Strategy (historically) to spread leadership beyond a leaders direct reach.

Creating a strategy:assessing the current reality, challenging assumptions, seeing things from multiple perspectives, and creating alternatives. means taking risks; challenging assumptions invariably means leaving a comfort zone.Introduction5 - *

WHAT IS STRATEGY?

Strategy helps an organization realize its mission and bring its vision to life.Most strategies are complex.For large, multidivisional and/or multinational companies complexity multiplied exponentially.Strategy Links Mission, Vision, Goals, and Actions5 - *Elements of Strategy

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WHAT IS STRATEGY?

Types of Strategies: Corporate Strategies 5 - *

Corporate StrategyFocusGrowthExpansion into new market(s) and/or increasing market share expanding business, acquiring or merging with other businesses, or joint ventures.

StabilityMaintaining current market position.

RetrenchmentDefensive posture to hold off threats while turning a company around.

DivestitureSelling off or folding a particular division.

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WHAT IS STRATEGY?

Definition involves joining with other businesses by buying, merging with, or taking over other companies. may include acquiring companies in the same industry, industries that support the core business, or altogether different businesses).

Acquisition StrategyJoint VenturesDefinition a formal arrangement between two or more entities to engage in activities together and to share risk.5 - *

Acquisition strategy - Can affect innovation; Its success is influenced by differing languages and cultures of the two organizations.Joint ventures - Cost of coordination may be high. Trust tends to decrease the reliance on rules and bureaucracy.

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WHAT IS STRATEGY?

support a particular division of the business, brand, product, or service line to remain or become successful in the marketplace.Types of Strategies: Business Strategies 5 - *

Business StrategyFocusDifferentiationProviding unique products, services, or features.Cost leadershipBeing most competitive(lowest priced) in terms of cost of a product or service.NicheCatering to a particular segment of the market or a particular demand.Vertical integrationSeeking cost savings and efficiency through operating businesses along the supply chain.

WHAT IS STRATEGY?

Functional strategies departmental strategies that are developed to help an organization achieve its goals.

Functions human resources, finance, marketing, sales, technology, facilities, health and safety, risk management, and legal services.Types of Strategies: Functional Strategies 5 - *

WHAT IS STRATEGY?

Consider a product you see advertised on television, the Internet, or in magazines. What business strategy do you think the company is employing?

Using the Internet, review facts about a company you know well. What is the companys corporate strategy? What are its business strategies? Functional strategies?

For the same company, compare these strategies with the companys mission and vision. Are these all aligned? In what ways? If not, describe the lack of alignment.Most popular >> Discussion Questions5 - *

WHAT NEEDS TO BE CONSIDERED IN A STRATEGIC PLANNING PROCESS?

Strategic planning the process of examining an organizations internal and external environments and determining major goals that will help the company realize its mission and move toward its vision. Introduction5 - *


Environmental Scanning 5 - *Environmental scanning process of assessing social and natural conditions that have the potential to affect an organization.


Industry a collective group of companies that provide the same or similar products and services. Industry Environment5 - *


Stakeholder any constituent potentially impacted by an organizations actions, either inside or outside the organization. Key stakeholders significant influence or importance.Primary stakeholders directly affected by an organizations actions.Secondary stakeholders indirectly affected by an organizations actions.Stakeholder Analysis5 - *

Stakeholder analysis audit of all stakeholders and an analysis of how each stakeholder will be affected by an organizations decisions.*


How often do you think an organization should develop a strategic plan? What might cause an organization to change strategies?

Think of an organization to which you belong (school, work, community group, social, or sports club). Does this group have a strategic plan? Who developed it? Who is aware of it, and who is not? How has the plans development and dissemination impacted the organization?

Think about a big decision in your life. Draw a stakeholder map to include the people or groups who will be affected by your decision. Code them as key, primary, or secondary. Reflect on how this map can help you in stakeholder management.Most popular >> Discussion Questions5 - *

WHAT ARE THE STEPS IN THE STRATEGIC PLANNING PROCESS?

Strategic planning process Can be seen as a series of sequential steps. Each step must be completed so that the information gained can be used for the next step. Introduction5 - *


Mission and vision critical in engaging employees in the difficult and exciting challenge of implementing strategies.

Current strategic goals Have these goals been achieved? If not, why not? Are these goals still relevant in todays business environment?Step 1: Review or Evaluate Mission, Vision, Goals, and Strategies 5 - *


BCG Matrix illustrates how a business unit, product, service, brand, or product portfolio is performing in terms of market share and market growth.Market share percentage of the market that a product, service, or business unit has captured.Market growth rate measure of growth in the market for given products or services. Step 4: Craft Strategies5 - *

Diversified company A company that has two or more distinct divisions that produce different products or services.Drawbacks:more useful for large conglomerates with a variety of different units.oversimplifies the relationship between market share and income generation.

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Discipline of executing plans require leaders to :Make assumptions about the business environmentAssess organizational capabilityLink strategies to operations and identify the peopleCoordinate the efforts of people Create a clear and explicit reward system based on outcomes.Develop the mechanisms for challenging and changing assumptions.Source: Ram Charan Steps 5 and 6: Implement and Evaluate Strategies 5 - *


Discuss how each step of the strategic planning process could be used to support launching a small business on campus.

One tool to use before beginning your job search is a SWOT analysis. Conduct a SWOT analysis on yourself. Be candid with yourself when it comes to your strengths, weaknesses, opportunities, and threats. How can you capitalize on your strengths and opportunities while downplaying your weaknesses and avoiding threats?

Think about a company with which you have regular contact as a customer (a restaurant or clothing store, for example). From your perspective, what are the companys must-win battles?Most popular >> Discussion Questions5 - *

WHAT IS HRS ROLE IN STRATEGY AND PLANNING?

HRs role in strategy:ensures that the right people are in the right jobs and that theyare supported by the organization in ways that allow them to help realize the organizations mission, vision, and strategy. How? by effectively managing processes such as recruiting, selection, succession planning, and overall plans for workforce growth or reductions.Introduction5 - *


Definition process of attracting qualified candidates for jobs.HR inventory internal system that maintains information about people within an organization, including skills, trainings needs, career plans, and other information about employees. Recruiting EmployeesSelecting the Right Employees Selection act of choosing whom to hire from among a group of qualified applicants.Criteria education, years of experience, relevance of experience, and the candidates ability to fit into the culture of the organization, etc. 5 - *

Internal recruiting place a job posting on the companys intranet or do an HR inventory.External recruiting visits to colleges, career fairs, use of online recruiting and placement companies, postings on the company Web site, social networking, etc. *


Succession plan plan for filling management positions in the event those positions are suddenly vacated. craft the size and shape of the workforce in a way that supports the organizations strategy.Succession Planning5 - *


Workforce Growth and Reductions 5 - *

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Describe a selection process in which you have participated (either at work, at school, or in a social club). Was the selection process strategic? In what ways? Was it tied to the mission, vision, or strategic goals of the organization? If so, in what ways?

Think about an organization to which you belong, such as a sports team, musical group, or social club. Is there a succession plan that will help replace members as they move on? What are the characteristics of the plan? Is it effective?

Do you know anyone who has been fired or laid off from a job? How was it done? What was the impact on the person? How would you handle firing or laying off an employee?Most popular >> Discussion Questions5 - *

WHAT CAN WE ALL DO TO SUPPORT EFFECTIVE STRATEGIC PLANNING?

Process of taking in raw information and mentally organizing it into a model or blueprint that helps explain a situation.Central aspect of situational awareness ability to quickly identify relevant patterns, integrate them into decision-making processes, and act accordingly.Together with systems thinking essential for effective leadership. Pattern RecognitionDeveloping a Personal Vision Life plan starts with a personal mission (what you believe to be your purpose in life) and a vision (your aspirations for yourself as a person).Our dreams feed our personal vision and our image of our ideal self.Hope and core identity are key elements to define a fulfilling life plan.5 - *

WHAT CAN WE ALL DO TO SUPPORT EFFECTIVE STRATEGIC PLANNING?

Why is it important for you to create a personal vision now, while you are in college? How might this help you choose a career or find an organization where you will fit in well?

Who in your life today can help you think about your future? What advice do you think they might give you about your personal vision?

To practice pattern recognition, think about your group of friends. What similarities exist among them? What are some differences? How is your group different from other groups on campus or at work?Most popular >> Discussion Questions5 - *

*Flexible and adaptable planning models are more likely to generate organizational success. *In many companies, HR leaders drive this process by doing research and creating opportunities for the executives to engage in conversations about the vision.*

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*Acquisition strategy - Can affect innovation; Its success is influenced by differing languages and cultures of the two organizations.Joint ventures - Cost of coordination may be high. Trust tends to decrease the reliance on rules and bureaucracy.

*Stakeholder analysis audit of all stakeholders and an analysis of how each stakeholder will be affected by an organizations decisions.*Diversified company A company that has two or more distinct divisions that produce different products or services.Drawbacks:more useful for large conglomerates with a variety of different units.oversimplifies the relationship between market share and income generation.

*Internal recruiting place a job posting on the companys intranet or do an HR inventory.External recruiting visits to colleges, career fairs, use of online recruiting and placement companies, postings on the company Web site, social networking, etc. *

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lecture 04b planning n strategy

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