Theory & Framework

Strategic Planning

Agenda

•Demystify Strategic Planning

•Generic Strategic Planning Framework

•Translating strategy to operations and action

•Other frameworks

•RoadTek Strategic Plan 2005 – 2008

•Workshop

Definition “Strategy is the direction and scope of an organisation over the long term...” (Johnson G, & Scholes K)

•Serves as a framework for decision making & for seeking support / approval

•Provides a basis for more detailed planning

•Is a communication device to our stakeholders > shareholder, customers, staff

•Serves as a reference point for performance monitoring

•Stimulates change

Why Stimulate Change?

The problem is never how to get, new innovative thoughts into your mind, but how to get the old ones out. Dee Hock, creator of Visa

Some Essential Points

• Over the horizon 2 to 5 years

• Focus on matters of strategic importance

• Realistic, detached & critical approach by senior management

• Distinguish between cause & effect

Pre-requisite

Environmental analysis to:

•Place the organisation in a current state business environment as a launching point to the future state

•Produce SWOT analysis

•Produce Risk analysis

Engineering Construction Activity - QueenslandValue of Work Done - 2002/03 Prices

79 81 83 85 87 89 91 93 95 97 99 01 03 05 07 09

$ Million

300

400

500

600

800

1500

2000

3000

4000

5000

6000

8000

1000

Forecast

Private Contract Proportion of Total Public Sector

79 81 83 85 87 89 91 93 95 97 99 01 03 05 07 09

Per Cent

10

20

30

40

50Forecast

Total for thePublic Sector

Total for thePrivate Sector

Private Contractfor the

Public Sector

Total PrivateContract

Total EngineeringConstruction

Year Ended June Source: BIS Shrapnel, ABS data

Courtesy

BIS Shrapnel

Key Elements of a Strategic Plan

• Vision

• Mission statement

• Values

• Objectives

• Strategies

• Measures

RoadTek Positioning Statement

Tips to the Process (1)

•The framework is a logical linear process but it will be iterative

•Use hindsight when strategic planning

•Assess the current position of your vision

•How have the mission and objectives changed?

•How have we performed

•How has the business environment changed?

Tips to the Process (2)

•Drill down on your business e.g.

•Review financial performance

•Review project performance

•Employ cause and effect technique

•The SWOT is the key to developing business strategy

•Keep the strategic plan short & simple

Translating Strategy to Operations

Business Plans

RoadTekStrategic Plan

Department of Main Roads Strategic Plan

Roads ConnectingQueenslanders

Achievement Plans

Business Plans

Queensland TransportStrategic Plan

Integrated RegionalTransport Plan

Portfolio Priorities

GovernmentPriorities

Individual Performance Management Plans

Operational (Business) Plan

•Short term document flowing on from Strat Plan

•Is tactical, focused, implementable & measurable

•Is made up of various sub-plans

•Very detailed, prescriptive information & activities showing accountabilities and completion dates

Other Strategic Frameworks

•Balanced Scorecard

•Logical Framework

•Diagnostic Flowchart

Logical Framework Process

Top Down Logic

GOAL

ACTIVITIES

OUTPUTS

PURPOSE

In order to

In order to

In order to

GOAL

PURPOSE

OUTPUTS

ACTIVITIES

Bottom Up Logic

If

Then If

ThenIf

Then

Logical Framework ExampleGoal – Sustainable Business

Purpose – Grow external sales

Output

1. No. of external customers is increased

2. Proportion of external revenue to total revenue grows

Purpose is the causal effect of the outputs

Activities

1. Engage business development officers

2. GM negotiate SLAs with other agency GMs

Workshop

•5 x 5 Groups

•Doing SWOT analysis

•If time - develop strategies

Elements of a SWOT

Strengths

Weaknesses

Opportunities

Threats

Build on Strengths

Resolve Weaknesses

Exploit Opportunities

Avoid Threats

Workshop Projects

•Duplication of Gateway + assc. 8 laning (DCM)

•Brisbane City Tunnels (BOOT)

•Any RoadTek projects?