Transcript NQACC Presentation by The Writing Wizards

Corporate Governance
Presentation by The Writing
Wizards
Sarah – Jane Cole
Strategic Planning
Introduction
Service - Provision of a diverse range of
mentoring and professional development
services across business and human
resources
Business development
Development of quality management systems
Compliance auditing to 9001, DESQA and DSQS
standards (Focus Certification)
Tender document development
Grant submission
Business and strategic plan development and facilitation
Business mentoring
Company and project presentation development
Market research and analysis
Grammatical and structural editing of business
documents
Presentation Today
Strategic Planning
Purpose
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Provide a general understanding of the strategic
planning process
Step by step guide to strategic planning
Establish and implement an appropriate planning
process
Development of an action plan
Discuss facilitating the involvement of relevant
stakeholders in the process
Do organisations plan to fail in their
business venture?
How many organisations fails to
appropriately plan?
Statistics
No. of years
after startup
% failed firms
1
32
Cumulative %
of failed firms
32
2
17
49
3
13
62
4
7
69
5
5
74
Definition
Planning - Planning is anticipatory
decision making. It is a process of
deciding before action is required (Ackoff
1981)
Planning
Enables a review of past efforts
Analyse the current status of the organisation
Provide for systematic development of future
objectives and goals
Coordinate an organisation’s efforts
Sharpen company focus
Establishes performance standards and
measures progress
Establishes a time frame for the achievement of
outcomes
More definitions
Business planning – Is a detailed study of the
organisations activities, which highlights where
the organisation has been, where it is now and
where it might get to in the future and
incorporates an action program to achieve these
results. (Coulthard, Howard, Clark)
Strategic Planning – the process by which the
guiding members of an organisation envision its
future and develop the necessary procedures
and operations to achieve that future
(Goodstein, Nolan and Pfeiffer)
Alice:
Cat:
Alice:
Cat:
Which way should I go?
That depends on where you are
going.
I don’t know where I’m going!
Then it doesn’t matter which way
you go!
Lewis Carroll 1872
Through the Looking-Glass
Strategic Planning = Strategic Envisioning
Why Strategically Plan?
Provides a shared:
Framework
Understanding
Values and beliefs
In which decisions can be made
Strategic Planning Model
Three basic elements of any strategic
planning model:
Where are we going?
What is the environment?
How do we get there?
Strategic Planning Model
Planning to Plan
Who should be involved
How will we involve stakeholders
How long will it take
What information is needed in order to
plan successfully
Commitment
Requires commitment from the top
Should not be treated as ‘secret squirrel
business’ through which a strategic plan appears
as an epiphany to a select few
Involvement of Stakeholders
Funding body
Clients
Industry peers
Consultants
Level of interaction:
Whole of process interaction
Specialist commentary
Review of outcomes
Environmental Monitoring
Environmental Monitoring
External
The macro environment
The industry environment
The competitive environment
Internal
The organisations internal environment
Performance Analysis
Use of SWOT (strengths, weaknesses,
opportunities and threats)
Purpose:
Identification of potential strategic
alternatives
Establishes benchmark of capability
Vision / Mission / Org Philosophy
Encapsulate the organisations focus
Can take time to establish and achieve
agreement
Strategic Business Modelling
‘The best way to have a good idea is to have a
LOT of ideas - Linus Pauling 1958
Process of selecting those strategies that build on
the organisations strengths, correct its
weaknesses to take advantage of external
opportunities whilst countering external threats.
Strategic Business Modelling
GENERIC STRATEGY
Cost leadership
Differentiation
Focus
ALTERNATIVE DIRECTIONS
Do nothing – status quo
Withdrawl
Consolidation
Market penetration
Product /service development
Market development
Diversification (related or unrelated)
ALTERNATIVE METHODS
Internal development
Acquisition
Joint development
Strategic Business Modelling
Strategic alternatives identified should
articulate:
Domain sought
Differential advantage in serving that
domain
Strategic thrusts necessary and their
approximate timing
Target results expected
Gap Analysis
Analytical and critical analysis stage
Application of two considerations:
Where gaps are identified need to develop
strategies to close each gap
Assessment of the probability of the
organisation being able to implement such
gap closure strategies
Gap Analysis Of Outcomes
Expected outcome is that the gap analysis
of strategic plan alternatives will identify
that strategies identified have a
reasonable probability of success
Looking for strategic alternatives that have
the highest organisational payoff
Implementation
One of the greatest pains to human nature is the
pain of a new idea
Walter Bagelot, Physics and Politics 1867
Most critical elements lies in the actual
implementation of the plan as opposed to the
development of the plan itself.
Implementation
Issues often that can inhibit implementation:
Time pressures to develop and maintain the plan
Over exuberant managers attempting to rush planned
changes
Continuing commitment – maintaining the commitment to
the chosen course of action and actually implementing
the plan
Reluctance to give up the alternative goals not chosen
Fear of failure
Implementation
Other issues:
Difficulty in translating the finalised
strategic plan document into a workable
and actionable planning tool
ACTION
RESOURCES
TIMEFRAME
DUE BY
COST
Find
more
suitable
premises
N/a
3 months
Sept 2006
$2,000 to move
Additional
$5,000 p.a.
expense
Advertising
campaign
TV,
radio, print
media and
billboard
Advertising budget
4 months
Oct 2006
$10,000
Seminars
Venue,
guest
speaker,
mailout lists
Seminar budget,
4 months
Oct 2006
$3,000
Advertise
position
Recruitment
Budget
12 months
July 2007
$50,000 p.a.
TV,
Advertising budget
15 months
Oct 2007
$15,000
OBJECTIVE
SHORT TERM
Operational
Office
Marketing
LONG TERM
Human Resources
Sales person
Marketing
Advertising Cairns
and Mackay
radio, and
print media
Implementation Requirements
Communication of the plan
Filtration into other planning processes
Maintaining ongoing commitment of top
level management
Review and Monitoring
Acid test of impact on organisational
behaviour
Should occur on a continual basis
Summary