Strategic Planning ProcessStrategic Planning Process

Dennis I. Blender, Ph.D.Blender Consulting Group

“The essence of strategy is choice.”

Planning ProcessPlanning Process

• Analysiso Past reports – review key findings, implicationso Conduct SWOT (strengths, weaknesses, opportunities,

threats) analysis• Definition

o Who, what, how, whereo Who not, what not, how not, where noto Who else, what else, how else, where elseo Critical success factors

•  Core Ideologyo Core purpose – fundamental reason for existenceo Core values – essential beliefs and tenets

•  Planningo Strategic targets – key indicators for successo Tactics – action steps (what, when, how, who)

• Implementation and monitoring• Communication plan

Analysis - SWOTAnalysis - SWOTBrainstorming

– Generating many ideas and possibilities– Strengths, weaknesses, opportunities, threats– Identify patterns, themes– Prioritization (High, Medium, Low)– Consensus–  

Rules of Brainstorming• The more ideas, the better• The wilder the ideas, the better• Absolutely no discussion• Absolutely no evaluation

o Positive or negativeo Verbal or nonverbal

• Hitch-hiking is OK• Silence is OK

DefinitionDefinition

Current

Who? What? How? Where?

DefinitionDefinition

Else

Not

Who Else? What Else? How Else? Where Else?

Who Not? What Not? How Not? Where Not?

DefinitionDefinition Critical Success Factors Critical Success Factors

CriticalSuccessFactors

Current Performance

Level

Required Performance

LevelDifference

To be successful, this organization must have the ability to do the following extremely well… 5 – Outstanding 4 – Very Good 3 – Average 2 – Marginal 1 – Poor 0 – Abysmal 

Core IdeologyCore Ideology

Core Purpose • The organization's reason for being.• Reflects people’s idealistic motivations for doing the organization’s

work.• It captures the soul of the organization.

3M: To solve unsolved problems innovatively

Cargill: To improve the standard of living around the world

Fannie Mae: To strengthen the social fabric by continually democratizing home ownership

Hewlett-Packard: To make technical contributions for the advancement and welfare of humanity

Lost Arrow Corporation: To be a role model and a tool for social change

Mary Kay Cosmetics: To give unlimited opportunity to women

Core IdeologyCore Ideology McKinsey & Company: To help leading corporations and

governments be more successful

Merck: To preserve and improve human life

Nike: To experience the emotion of competition, winning, and crushing competitors

Pacific Theatres: To provide a place for people to flourish and to enhance the community

Sony: To experience the joy of advancing and applying technology for the benefit of the public

Telecare Corporation: To help people with mental impairments realize their full potential

Wal-Mart: To give ordinary folk the chance to buy the same things as rich people

Walt Disney: To make people happy

Core IdeologyCore Ideology

Core Values• The essential and enduring tenets of an organization• A small set of timeless guiding principles• Require no external justification; they have intrinsic value and

importance to those inside the organization

Merck • Corporate social responsibility • Unequivocal excellence in all aspects of the company • Science-based innovation • Honesty and integrity • Profit, but profit from work that benefits humanity

Nordstrom • Service to the customer above all else • Hard work and individual productivity • Never being satisfied • Excellence in reputation; being part of something special

Core IdeologyCore IdeologyPhilip Morris

• The right to freedom of choice • Winning – beating others in a good fight • Encouraging individual initiative • Opportunity based on merit, no one is entitled to anything • Hard work and continuous self-improvement

Sony • Elevation of the Japanese culture and national status • Being a pioneer – not following others; doing the impossible • Encouraging individual ability and creativity

Walt Disney • No cynicism • Nurturing and promulgation of "wholesome American values" • Creativity, dreams, and imagination • Fanatical attention to consistency and detail • Preservation and control of the Disney magic

 (Copyright 1996 by Jim Collins and Jerry I. Porras. This article first appeared in Harvard Business Review, September-October 1996.)

PlanningPlanningStrategic InitiativesStrategic Initiatives

Targets Tactics What Who When