Transcript The Value Proposition

Strategic Planning
for the Social Enterprise
© 2007 Virtue Ventures.
Licensed under the Creative Commons Attribution 3.0 License (http://creativecommons.org/licenses/by/3.0/)
What is Strategic Planning?
• A process through which an
organization agrees on-and builds
commitment among key stakeholders
to- priorities which are essential to its
mission and are responsive to the
environment.
© 2007 Virtue Ventures.
Licensed under the Creative Commons Attribution 3.0 License (http://creativecommons.org/licenses/by/3.0/)
Strategic Plan
"If you don't know where you
are going, it doesn't matter
which way you go.”
Objectives
Vision
Cheshire Cat in Alice in Wonderland,
Lewis Caroll
Strategic
Goals
Strategic
Issues
© 2007 Virtue Ventures.
Licensed under the Creative Commons Attribution 3.0 License (http://creativecommons.org/licenses/by/3.0/)
What’s it for?
• Making BIG decisions
– Management tool
– Strategic guide
© 2007 Virtue Ventures.
Licensed under the Creative Commons Attribution 3.0 License (http://creativecommons.org/licenses/by/3.0/)
Strategic Plan
Views future as unpredictable
Views planning as a continuous process
Expects new trends, surprises and changes
Considers a range of possible futures &
emphasizes strategy development based on
assessment of the organization's internal and
external environment.
 No more than 5 years out
 Asks: "Based on our current understanding of
environment, are we doing the right thing? How
can we best use our resources to achieve or
mission?"
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© 2007 Virtue Ventures.
Licensed under the Creative Commons Attribution 3.0 License (http://creativecommons.org/licenses/by/3.0/)
Strategic vs. Operational Planning
Strategic planning
1. Strategic decisions
are fundamental and
directional, and overarching.
2. Long-term
implications.
3. Core strategies
dictate how to
employ the
organization’s
resources to best
achieve its mission
given a changing
© environment.
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Operational planning
1. Operational decisions
focus on the day-today implementation
of strategic
decisions.
2. Immediate (one year
or less) implications
3. Details tactical plans
to implement
strategies and
achieve goals and
objectives
Licensed under the Creative Commons Attribution 3.0 License (http://creativecommons.org/licenses/by/3.0/)
Planning the Plan
• When do you do it?
– Beginning or end of major project / end of life cycle stage/ after
evaluation / major change
– How often?
• No more than every 2 years / 3-5 better
• How long?
– 2-5 days
• Who should be involved?
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–
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(Pre) Context/buy-in – all key stakeholders
Vision value mission – management, staff, board
SWOT – management, professional staff
Strategic goals & strategies - management, professional staff
Org structure – management w/ staff input
Communicate complete strategic plan – to all stakeholders
© 2007 Virtue Ventures.
Licensed under the Creative Commons Attribution 3.0 License (http://creativecommons.org/licenses/by/3.0/)
Success Factors
 Focus on the most important issues
during your strategic planning process.
 Be willing to question the status quo.
 Produce a document.
 Make sure the strategic plan is translated
into an annual operating plan for at least
the first year.
 Include stakeholders
© 2007 Virtue Ventures.
Licensed under the Creative Commons Attribution 3.0 License (http://creativecommons.org/licenses/by/3.0/)
Strategic Plan Framework
Values
Vision
Mission
SWOT
Critical
Issues
Strategies
Strategic
Goals
Strategies
Objectives
Tactics
Action Plans
© 2007 Virtue Ventures.
Licensed under the Creative Commons Attribution 3.0 License (http://creativecommons.org/licenses/by/3.0/)
Strategic Alignment
Overarching
Strategy
Regional Strategy
Africa
Regional Strategy
Asia
Regional Strategy
India
Program Strategy
Health
Maternal Health
Strategy
Eyecare
Strategy
Strategy for AP
© 2007 Virtue Ventures.
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Steps to Develop a Strategic Plan
1. Clarify the problem – the social problem or
market failure that your organization is trying
to solve/overcome.
2. Identify Stakeholders – internal and
external stakeholders
3. Assumptions – state the assumptions about
external environment.
4. Vision statement - what the organization
would like to be in the long-term and how it
would like to be perceived.
© 2007 Virtue Ventures.
Licensed under the Creative Commons Attribution 3.0 License (http://creativecommons.org/licenses/by/3.0/)
Steps (cont. 2)
5. Discuss Values and Mission - outlines the
organization’s purpose and core values.
6. Conduct a SWOT Analysis – review of
internal factors (strengths & weaknesses)
and external factors (opportunities & threats)
7. Identify Critical Issues – with the
greatest strategic significance to the
organization.
8. Set Strategic Goals - enduring statements
of direction that amplify the mission
statement and focus the organization’s
efforts.
© 2007 Virtue Ventures.
Licensed under the Creative Commons Attribution 3.0 License (http://creativecommons.org/licenses/by/3.0/)
Steps (cont. 3)
9. Set Objectives – specific and
quantifiable; performance is measured
against them to ascertain progress.
10.Develop Action Plans for each
objective assigning responsibilities and
resources to each objective, action
plans provide an essential link between
the strategic plan and the annual
operating plan and budget.
© 2007 Virtue Ventures.
Licensed under the Creative Commons Attribution 3.0 License (http://creativecommons.org/licenses/by/3.0/)
Contents of a Strategic Plan
1.
2.
3.
4.
5.
6.
7.
8.
9.
Purpose
Vision
Mission
Core Values
Situation Analysis
a. SWOT
Key Strategic Issues
Strategic Goals/Priorities
Objectives
Action Plan
© 2007 Virtue Ventures.
Licensed under the Creative Commons Attribution 3.0 License (http://creativecommons.org/licenses/by/3.0/)
Your Strategic Plan
© 2007 Virtue Ventures.
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Key Assumptions Going In…
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Vision Statement
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Mission Statement
© 2007 Virtue Ventures.
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Core Vales are the Pillar of Mission
© 2007 Virtue Ventures.
Licensed under the Creative Commons Attribution 3.0 License (http://creativecommons.org/licenses/by/3.0/)
Core Values Example
The mission of Southwest Airlines is dedication to the highest quality of
Customer Service delivered with a sense of warmth, friendliness,
individual pride, and Company Spirit
• Characteristics:
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Shorts
Cattle call
No food
Everyone does all jobs
Curbside check in
Employees make jokes
One of the best companies to
work for
• Can’t book through travel
agent
• One class
•
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•
Core Values
Low Fares
On-time
Customer Service
Fun
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Core Values
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SWOT
© 2007 Virtue Ventures.
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SWOT Analysis
Understanding the Business Environment
To plan effectively, organizations need to fully understand
the dynamics of their internal and external environment and
respond accordingly:
Internal/Organizational
• Strengths
• Weaknesses
External/Market
• Opportunities
• Threats
© 2007 Virtue Ventures.
Licensed under the Creative Commons Attribution 3.0 License (http://creativecommons.org/licenses/by/3.0/)
Sample SWOT Analysis
the Organization
the Industry
• Physical Assets
• Low Cost of Service
• Innovation
• People
• Storage
• Customer Relations
• Balance Sheet and Cash Flow
• Information Management
• Information Systems
• Depreciated Asset Base
• Expiring Contracts
• Customer Retention
• Customer Service
• Human Resource Management
• Lack of Organizational Depth
• Employee Development
• Workflow Efficiency
• Unrealistic Goals
• Decision Making Process
• Communications
• Lack of a Shared Vision
• Information Systems
• Dependent Market Share Position
• New Market Expansion
• Acquisition
• Industry Growth
• People Development
• Customer Service
• Information Systems
• Communication
• Current Customer Relationships
• Storage
© 2007 Virtue Ventures.
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SWOT Analysis
the Organization
the Industry
© 2007 Virtue Ventures.
Licensed under the Creative Commons Attribution 3.0 License (http://creativecommons.org/licenses/by/3.0/)
What’s Next?
Many organizations attempt to understanding the
internal and external dynamics of their business
environment, but fail to turn this information into into
an actionable strategy. Therefore, the goal is to
develop a plan that:
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Leverages Strengths
Manages Weaknesses
Takes advantage of market opportunities
Is responsive to market threats
© 2007 Virtue Ventures.
Licensed under the Creative Commons Attribution 3.0 License (http://creativecommons.org/licenses/by/3.0/)
Leveraging Internal Strengths
What is currently being
done or has been done?
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What still needs to be
done?
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© 2007 Virtue Ventures.
Licensed under the Creative Commons Attribution 3.0 License (http://creativecommons.org/licenses/by/3.0/)
Managing Internal Weaknesses
What is currently being
done or has been done?
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What still needs to be
done?
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© 2007 Virtue Ventures.
Licensed under the Creative Commons Attribution 3.0 License (http://creativecommons.org/licenses/by/3.0/)
Leveraging External Opportunities
What is currently being What still needs to be done?
done or has been done?
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© 2007 Virtue Ventures.
Licensed under the Creative Commons Attribution 3.0 License (http://creativecommons.org/licenses/by/3.0/)
Minimizing External Threats
What is currently being What still needs to be done?
done or has been done?
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© 2007 Virtue Ventures.
Licensed under the Creative Commons Attribution 3.0 License (http://creativecommons.org/licenses/by/3.0/)
Critical Strategic Issues
• Could be related to:
•
•
•
•
Vision
Mission
Mandates
Strengths, Weaknesses, Opportunities,
Threats
• Assumptions
© 2007 Virtue Ventures.
Licensed under the Creative Commons Attribution 3.0 License (http://creativecommons.org/licenses/by/3.0/)
Critical Strategic Issues
© 2007 Virtue Ventures.
Licensed under the Creative Commons Attribution 3.0 License (http://creativecommons.org/licenses/by/3.0/)
Strategic Goals
© 2007 Virtue Ventures.
Licensed under the Creative Commons Attribution 3.0 License (http://creativecommons.org/licenses/by/3.0/)
Objectives (related to each goal)
© 2007 Virtue Ventures.
Licensed under the Creative Commons Attribution 3.0 License (http://creativecommons.org/licenses/by/3.0/)