Transcript STRATEGIC THINKING CYCLE

LEADERS 2006
STRATEGIC
PLANNING AND
WORK PROGRAMME
DEVELOPMENT
KHEMRAJ NANHU
STRATEGIC THINKING
• STRATEGIC THINKING
• CYCLE
Strategic Thinking Cycle
Elements of the Cycle
Strategic Thinking:
Thought Processes
• Synthetic
• Divergent
• Creative
Strategic Management
•Planning
•Implementation
Strategic Planning
•Recreating the future
Elements of the Strategic
Thinking Cycle
1.
2.
3.
4.
5.
Systems Perspective
Intent Focus
Intelligent Opportunism
Thinking in Time
Hypothesis Driven
SYSTEMS PERSPECTIVE
• Generation of a mental model of the
complete system of value creation and
understanding the interdependencies within
the chain (Value Chain)
• New insights fail to get put into practice
because they will conflict with deeply held
internal images of how the organization
works.
• Images that limit us to familiar ways of
thinking and acting
STRATEGIC INTENT
• Strategic Intent implies a point of view
about the long-term market/environment or
competitive position that a firm or
organization hopes to build over the
coming decade.
• It conveys a sense of direction
• Direction, discovery and destiny-these are
the attributes of strategic intent
STRATEGIC INTENT
• Strategic Intent provides the focus that
allows individuals within an organization to
marshal and leverage their energy:
a) to focus attention,
b) to resist distraction, and
c) to concentrate for as long as it takes to
achieve a goal.
INTELLIGENT OPPORTUNISM
• This is the third element in the Strategic
Thinking Cycle.
• In essence this notion is the idea of
openness to new experiences which
allows one to take advantage of alternative
strategies that may emerge in response to
rapidly changing business
environments,viz:
• Emergent Strategy vs Deliberate Strategy
THINKING IN TIME
• Strategy is not solely driven by the
future, but by the gap between the
current reality and the intent for the
future.
• Gap analysis:
• By connecting the past with the present
and linking this to the future, strategic
thinking is always “thinking in time”
Strategic Intent
• The real question is not what does the
future we are trying to create look like,
rather it is:
• Having seen the future that we want to
create:
a) what must we keep from that past,
b) lose from the past, and
c) create in our present, to get there.”
5th Element: Hypothesis Driven
• Hypothesis generation poses the creative
question: “What if….?”
• Hypothesis testing follows up with the
critical question: “If…… then.”
• It then evaluates the data relevant to the
analysis.
STRATEGIC THINKING CYCLE
• Firms who succeed in embedding a
capability for strategic thinking throughout
their organization will have created a new
source of competitive advantage.
• Strategic Thinkers see the linkages in the
system from multiple perspectives and
understand the relationship among the
corporate, business and functional levels.
STRATEGIC THINKING CYCLE
Strategic Thinking:
Disrupting Alignment
Desired
Future
Current
Reality
Strategic Planning:
Creating Alignment
STRATEGIC THINKING CYCLE
• Process Considerations in The STC
• Processes are needed to ensure that strategies
are:
1. Aligned,
2. Goal-Oriented,
3. Fact-based,
4. Based on Broad thinking,
5. Focused,
6. Agreed upon,
7. Engaging,
8. Adaptable,
9. Implementable
STRATEGIC THINKING CYCLE
• Aligned: A company’s/organization’s strategies
must fit with its: (a) mission, (b) vision, (c)
competitive situation and (d) operating
strengths.
• Goal-oriented: Strategies are the means by
which a company sets out to achieve its goals.
Effective strategies, then,
a) set clear expected outcomes and
b) make explicit links between these outcomes and
the company’s goals.
STRATEGIC THINKING CYCLE
•
Fact-based: The best strategies are
based on and supported by real data.
While strategic thinking by its very
nature requires assumptions about
the future, these assumptions must
be
educated guesses, and
based on facts
STRATEGIC THINKING CYCLE
•
Based on Broad Thinking: Companies
and Organizations that are strategically
nimble are able to:
a) consider multiple alternatives at once
and
b) to consider a range of scenarios in
making strategic choices.
STRATEGIC THINKING CYCLE
• Focused: No company/organization can
do everything or be all things to all people.
Strategy setting involves making choices
about what a company will do and—as
important—what it will not do.
Strategies provide clear guidance about
how a company’s activities will be
prioritized, and
how its limited resources will be deployed.
STRATEGIC THINKING CYCLE
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Agreed upon: Especially in large,
complex organizations (like a Ministry),
successful strategies must gain the
support of multiple stakeholders.
• This often requires a process of
developing strategies that are interactive
STRATEGIC THINKING CYCLE
• Engaging: Strategies that will need to
mobilize broad resources must be:
 easily articulated so that they can
capture the attention of the people who
will be asked to carry them out.
STRATEGIC THINKING CYCLE
•
Implementable: Because effective
strategies draw on the particular strengths
and skills of an organization, they include
explicit considerations of how they will
be implemented.
• Implementable strategies provide clear
guidance for decision making in order
to shape behavior throughout the
company.
STRATEGIC THINKING CYCLE
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Adaptable: Strategies need to be able to
be adjusted to build on learning from
experimentation, errors and new
information.
STRATEGIC THINKING CYCLE
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SUMMARY: The following is a list of the
five criteria of the strategic thinking
process:
Organization
Observation
Views
Driving Forces
Ideal Position
STRATEGIC THINKING CYCLE
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1) Organization. The organization of your
(new) business involves the (a) people, (b) the
organizational structure, and the (c) resources
necessary to make it all work.
1. What will your organization look like?
2. What type of structure will support your
vision?
3. How will you combine people, resources,
and structure together to achieve your ideal
outcome?
STRATEGIC THINKING CYCLE
• 2). Observation. Strategic thinking allows
you to see things from "higher up." By
increasing your powers of observation,
you will begin to become more aware
of: what motivates people,
how to solve problems more effectively,
and,
 how to distinguish between
alternatives
STRATEGIC THINKING CYCLE
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2.
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3).Views. Views are simply different
ways of thinking about something. In
strategic thinking, there are four
viewpoints to take into consideration
when forming your business strategy:
the environmental view;
the marketplace view;
the project view;
the measurement view.
STRATEGIC THINKING CYCLE
• 4) Driving Forces. What are the driving
forces that will make your ideal outcome a
reality?
• What is your company's vision and
mission?
• Driving forces usually lay the foundation
for what you want people to focus on in
your business (i.e., what you will use to
motivate others to perform). Examples:
ST:Driving Forces
Examples of driving forces might include:
1)individual and organizational incentives;
2)empowerment and alignment;
3)qualitative factors such as a defined vision, values,
and goals;
4)productive factors like a mission or function;
5)quantitative factors such as results or experience;
6)and others such as commitment, coherent action,
effectiveness, productivity, and value.
STRATEGIC THINKING CYCLE
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2.
3.
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5.
5: Ideal Position. After working through the first four
phases of the strategic thinking process, you should be
able to define your ideal position. Your ideal position
outline should include:
the conditions you have found to be necessary if your
business is to be productive;
the niche in the marketplace that your business will fill;
any opportunities that may exist either currently or in
the future for your business;
the core competencies or skills required in your
business; and
the strategies and tactics you will use to pull it all
together.
STRATEGIC PLANNING MODEL
STRATEGIC MANAGEMENT
• Strategic management is concerned
with making decisions about an
organization's future direction and
implementing those decisions.
• Strategic Management can be broken
down into two phases:
• 1)strategic planning and
• 2) strategic implementation.
STRATEGIC PLANNING
• Strategic Planning is devising plans which
insure the future well being of the
organization by developing strategies which
will “protect or capture” the four basic
elements of its business, which are its:
 Products/Services,
 Customer Groups,
 Market Segments, and
 Geographic/Areas Markets.
STRATEGIC PLANNING
Strategic planning is concerned with making
decisions with regard to:
1. Defining the organization's philosophy and
mission
2. Establishing long- and short-range objectives to
achieve the organization's mission
3. Selecting the strategy that is to be used in
achieving the organization's objectives
STRATEGIC PLANNING
• How is your Strategic Planning process
different from others?
1.It evolves from an orderly strategic thinking
process providing a solid foundation of facts
2.It is based on the driving force of your
organization, often overlooked in other
systems
3.It is much more effective because it is
created by the management team and is
consensus driven
STRATEGIC PLANNING
•
How will Strategic Planning affect our
Image, Marketing and Success?
1. It will help shape the correct image by
identifying the values and beliefs of the
organization
2. You will gain valuable insight into how to best
market your Ministry based on solid information
3. It will insure all the departments will be “rowing
the boat” in the same direction
STRATEGY IMPLEMENTATION
Strategy implementation is concerned with
making decisions with regard to:
• 1.Developing an organizational structure
to achieve the strategy
• 2.Ensuring that the activities are effectively
performed so to achieve the strategy
• 3. Monitoring the effectiveness of the
strategy in achieving the organization's
objective
ELEMENTS OF STRATEGIC
PLANNING
• See diagram on page ---- of manual
Organizational Philosophy
• Organizational philosophy establishes the
values, beliefs, and guidelines for the
manner in which the organization is going to
conduct its business.
• It establishes the relationship between the
organization and its stakeholders: employees,
 customers,
 shareholders,
 suppliers,
 government, and
 the public at large.
Philosophies of excellent
organizations
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Include the following basic beliefs:
Belief in being the best
Belief in the importance of the details of execution
Belief in the importance of people as individuals
Belief in superior quality and service
Belief that most members of the organization
should be innovators, and its corollary, the
willingness to support failure
6. Belief in the importance of informality to enhance
communication.
7. Belief in and recognition of the importance of
growth and success
Establishing Strategic Vision
• Strategic Vision encompasses an active
management process which includes:
• 1. An Obsession for Success.
• 2. Focusing the Organization on winning.
• 3. Encouraging Innovation and Change.
• 4. Lengthening Executive attention Span.
• 5. Improving and developing outreach.
• 6. Motivating Employees to accomplish
Goals and Objectives
• 7. Having a Long-Range Picture of Business
Opportunities.
STRATEGIC VISIONING
• "If you want to move people, it has to
be toward a vision that's positive for
them, that taps important values that
gets them something they desire, and it
has to be presented in a compelling
way that they feel inspired to follow. " Martin Luther King Jr.
STRATEGIC VISIONING
• A vision of success, if it is to provide suitable
guidance and motivation, it should include:
• Mission
• Basic philosophy and core values
• Goals, if they are established
• Basic strategies
• Performance criteria
• Important decision rules
• Ethical standards expected of all employees
Strategic visioning
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The vision should emphasize:
Purpose
Behavior
Performance criteria,
Decision rules, and
Standards that are public serving rather than
self-serving.
• The guidance offered should be specific and
reasonable.
Strategic Visioning
• a) The vision should be short, and inspiring.
• b) The vision should be widely circulated
among organizational members and other
key stake-holders
• c) The vision should be used to inform major
and minor organizational decisions and
actions.
• d) Preparing the vision is a waste of time if it
has no behavioral effect.
STRATEGIC VISIONING
• EG.: The Ministry’s Vision Statement:
• “The Ministry of Sport and Youth
Affairs is a dynamic people centered
organization in the forefront of human
development with particular focus on
youth empowerment, total participation
and excellence in sport.”
VISION & MISSION
• Mission outlines organization
purposes, while
• Vision goes on to describe how the
organization should look when it is
working well.
MISSION
• The MISSION outlines organization
purpose, viz. the reason why the
Ministry/organization exists.
MISSION
• Eight (8) Questions for determining the Mission
Statement
1. What activities should we be in?
2 Why do we exist?
3 What is unique or distinctive about this
organization?
4 Who are the principal recipients of our services?
MISSION
5
What are the principal means of rendering our
services?
6
What are our principal services - present and
future?
7
What is different about our organization today from
what it was three to five years ago?
8
What is likely to be different about our organization
three to five years in the future?
MISSION
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The Mission should be:
Action oriented
Time bound
Clear, broad, creative and attainable
Able to identify what type of business
you are in or what is your business.
MISSION
• Defining the Organization's Mission:
• An organization's mission defines its
current and future business activities
• It should include a broad description of
the service, and geographical coverage
of the business today and within a time
frame of 3-5 yrs.
• .
MISSION
• The mission statement describes how
the business serves customers to
underwrite its strategy; and is used as
a context for the development and
evaluation of intended and emergent
strategies.
THE MISSION
• (1) it serves as a guide for day to day
operations and as the foundation for
decision making and
• (2) for employees, a strong mission
statement builds commitment, loyalty
and motivation.
MISSION
4) Mission provides a unifying force, a
sense of direction, and a guide to
decision-making for all levels of
management
5) Without a concrete statement of
mission it is virtually impossible to
develop clear objectives and strategies.
The Mission of the Ministry
• “To deliver quality support services to
the citizenry for the development of
Youth and Sport”
VALUES
1. Values are the fundamental thoughts that
shape your behavior and your operations.
2. These are key principles that govern
planning and action and inspire
identification with the organization
3. They are the key ideas and ideals by which
the organization is governed.
EG. of VALUES OF THE
MINISTRY
• The Ministry:
1. supports continuous learning and
improvement in the organization;
2. endorses open communication, employee
participation and involvement in the
business of the Ministry;
3. values the diversity and promotes the wellbeing of its employees and stakeholders;
Values of the Ministry
The Ministry:
• demonstrates positive work ethics,
committed leadership and respect for
individuals;
• encourages teamwork, trust and
confidentiality in the conduct of its affairs;
• focuses on results and the delivery of
quality services;
• recognizes excellence, creativity and
performance.”
SWOT ANALYSIS
• The major purpose of Strategic Planning is to
facilitate adaptation through anticipation.
• Analysis of the events and trends occurring on
the
Political,
Economic,
Social,
and
Technological, Legal and Regulatory and the
Environment (PESTLE) fronts provide strategic
decision-makers with:
• a
wider
environmental-orientated
perspective and with a more futuristic view
of the organization’s situation.
SWOT ANALYSIS
• PESTLE therefore provides an analytical
framework
for
determining
the
organization’s present position in relation
to the future, and is therefore a very useful
method of strategic analysis.
SWOT
• Strategic Analysis is comprised of an
analysis of the:
• Strengths
• Weaknesses
• Opportunities, and
• Threats facing the organization
INTERNAL ANALYSIS
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6.
A) In the Internal Analysis the following aspects
of the organization’s operations are analyzed:
History and Age
Leadership and Management Style
Organizational Structure and Systems
Organizational Culture
Human Resource Performance
Financial Performance
EXTERNAL ANALYSIS
B)The External Analysis incorporates the
following aspects:
1. Values of Society
2. Organized Groups
3. Competitors
4. Economic Conditions
5. Technology
ENVIRONMENTAL ANALYSIS
• c) Overarching considerations in the context of analyzing
the operations of the organization will be:
• The Nature of the business/function of the
organization and its changing role
• Expectations of Individuals
• Expectations of Stakeholders
• Expectations of Coalitions
• Items (a), (b), and (c) above impact on the strategic
direction, strategic objectives and strategic choice(s) of
the organization.
INTERNAL, EXTERNAL
&ENVIRONMENTAL ANALYSES
• This phase of the review at item (c) would
have at least determined the following:
1. What is the business of the
organization?
2. What do we want to become?
3. Who are our clients?
4. What do our customers want?
5. What are our experiences?
INTERNAL, EXTERNAL
&ENVIRONMENTAL ANALYSES
6 What have we been mandated to do?
7 What are we supposed to be doing?
8 Are the things we do relevant to our
purpose?
9 Are we doing the same things we did
five or ten years ago?
10 What will we be doing in the next five
years?