12/6/2012

1

STRATEGIC PLANNINGThursday 6 December, 2012

Dr. Yasser El-WazirHead of the Department of Physiology

Faculty of Medicine - Suez Canal UniversityFAIMER fellow

Planner of Leadership Module in DHPEywazir@med.suez.edu.eg

ywazir@hotmail.com

Strategic Planning WorkshopObjectives

By the end of this workshop, the participants should be able to:

• Define strategic planning, and list its essential steps• Develop a mission and a shared vision• Perform an environmental scan using SWOT

analysis• Develop strategic goals• Formulate a measurable result• Draft an action plan

12/6/2012

2

What is Planning?

How can we get there?

Where are we now?

Where we want to be in the future?

Why do planning?

It provides the following:

• A sense of direction

• Better awareness of needs, environmental trends

• More sensible allocation of resources.

• A proactive style of management.

• Standards of evaluation of performance.

12/6/2012

3

Forms of Planning-1• Long-range planning

Developing strategies that direct the organization to achieve its long-term objectives

• Strategic planningDeveloping goals and strategies that shape the destiny of the organization in response to the environmental trends

Forms of Planning-2

• Tactical planningMaking concrete decisions regarding what to do, who will do it, and how to do it.

• Contingency planningPreparation for unexpected, major, and quick changes in the environment that will have a significant impact on the organization and require immediate action

12/6/2012

4

Comparing the 2 main forms of planning

Dimension Strategic planning Tactical planningIntended purpose Ensuring long-term

effectiveness & growth

Implementing the strategic plan

Nature of issues addressed

How to survive &compete

How to accomplish specific goals

Time horizon Long-term (usually 2 years or more)

Short-term (usually less than 2 years)

How often done (or updated)

Every one to three years

Every 6 months to 1 year

Comparing the 2 mains forms of planning (cont.)

Dimension Strategic planning Tactical planningConditions under which decision making occurs

Uncertainty and risk High degree of prediction and low to moderate risk

Level at which the plan is primarily developed

Middle to top management

Employees up to middle management

Level of details Low to moderate High

12/6/2012

5

Strategic Planning

Steps of strategic planning

Commitment

Vision & Mission

Scan the Environment

Goals & Strategies

Implement & Monitor

12/6/2012

6

Step 1: Ensure Organizational Commitment

• Involve the key leaders in the organization

• Resolve the major problems that maybe facing the organization

• Create an environment of willingness to question the status quo

• Select the members of the planning committee (selection criteria – stakeholders)

Step 2: Articulate mission and vision

Mission Vision

12/6/2012

7

Step 3: Scanning the environment

Internal Strengths Weaknesses

External Opportunities Threats (Challenges)

“SWOT analysis”

What kind of internal elements are we looking for?

“S & W”• Infrastructure

• Workforce

• Managerial competencies

• Financial resources

12/6/2012

8

What kind of environmental trends are we looking for?

“O & T”• Competitors and new entrants

• Customers

• Suppliers

• New services or programs

Step 4: Developing strategic goals

Goals represent the critical priorities for the organization

Achieving the goals should help the organization to better realize its mission and to move towards its vision

Strategic goals should be based on the results of the SWOT analysis

12/6/2012

9

Step 5: Develop specific strategies for achieving the goals

What is strategy?Activities that are necessary to achieve startegic

goals

Goal 1 Goal 2 Goal 3Strategy 1.1. 2.1. 3.1.

Strategy 1.2. 2.2. 3.2.

2.3. 3.3.

2.4.

What is the nature of a business strategy?

• Strategy is more than doing the regular work efficiently

• Strategy rests on unique activities• Sustainable strategic position requires trade-

offs with other positions

12/6/2012

10

Step 6: Implement Your Plan

• Use the plan to develop a tactical plan for the coming year.

• Develop SMART objectives• For each objective or group of objectives, identify the

required activities, and specify who is in charge of the activity, when it will be completed, and how much it will cost.

• Keep the plan on everyone’s mind

Step 7. Evaluate Your Plan and Your Progress

• Formulate metrics for evaluation of each action/strategy

• Review progress at each board and/or committee meeting

• Annual review by the strategic planning committee

• Recognize everyone who is involved in achieving goals and “reaching the stretch.”

12/6/2012

11

Summary

• Strategic planning emphasizes the development of an organization’s mission and vision, general strategies, and major resources allocation.

• The main steps of SP are: ….• Tactical planning emphasizes the shorter-term

detailed decisions, and provides the specific actions for implementing strategic plans.

References• Management: A Competency-Based Approach.

Hellriegel, Jackson & Slocum. 9th ed. Thomson, South-Western 2002.

• Essentials of Management. DuBrin. 6th ed. Thomson, South-Western. 2003

• Supervisory Management. Mosley, Megginson & Pietri. 6th ed. Thomson, South-Western. 2005.

12/6/2012

12

What is next?