Transcript For the Development Organization Aligning Strategic | Plans Eric Rinehart

Aligning Strategic | Plans
For the Development Organization
Eric Rinehart
Economic Development Solutions, inc.
E-D-Solutions.com
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Success Planning Model
The Overarching Structure of the Plan Documents
Institutional Strategy
Strategic Vision
Strategic Goals
adapted from Richard Sessions
Integrating External
Benchmarking Into Your
Strategic Planning Process.
Organizational Strategies
Critical Success Factors
Success Metrics
Business Unit Strategic Plan
Explicit Strategies
Implementation Plans
Program Operational Plans
Time and Energy
Key Results
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Blue Print
An Organizational Planning Document
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Vision and Mission
Major Forces: Growth Assumptions; Environment
Institutional Goals: Goals; Objectives; Priorities
Philosophy: World Class
Core Competencies:Supporting Elements
Assessments: Measures of Success
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… Compared with Typical Outline
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Reference Overall Singular "Mission" or Desired Result
Take Stock Outside and Inside the System (PEST)
Analyze the Situation (SWOT)
Establish Goals that build on strengths and wards off threats.
Establish Strategies to Reach Goals
Establish Objectives Along the Way to Achieving Goals
Associate Responsibilities and Time Lines With Objectives
Write and Communicate a Plan Document
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organization’s mission
Customers, Products, Benefits, etc.
The organization needs to
determine its mission. Why does
it exist? What is it trying - in
general terms - to accomplish?
The mission statement provides
the overall direction for the
agency in developing its goals
and objectives.
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Identify Stakeholders and Values
Stakeholders
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Public at Large
Core Values
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Families
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Targeted Areas/Groups
- Laissez Faire
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Welfare of Community
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Business Sector
Commerce/Industry
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Market Institutions
Market Place
Economic Indifference
Distribution Failures
- Inequities in Distribution
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Econ. Performance
- Level of Production
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Structural Limits
- Improved Organizations
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Identify and Segment …
CUSTOMERS PRODUCTS LOCATIONS
External
Customers
Segments
[1st Focus]
Internal
Customers
[2nd Focus]
Current
Mandates,
Programs,
Allocations
Local and
Regional
Availability
Requested Self-Service,
Programs
Case Work,
and Services Group Service
RESULTS
Intermediate
Outcomes:
Jobs and
Investment
Final
Outcomes:
Growth/
Advantage
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.. then Combine into a Mission
CUSTOMERS PRODUCTS LOCATIONS
RESULTS
Public at Large Public Goods City/County Quality of Life
Area/Group
C’mnty Srvc Neighborhood Equity/Stability
Bus. Sector Business Srvc Market Areas
Institutions Capacity Bldg
Region
Growth
Area Advantage
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assumptions about growth
Influences, Foundations, Theories
The economy is a complex, interdependent and adaptive system
which we can look describe at
various levels of analysis detail
major influences
component foundations
regional growth theories
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Influences on a Regions’ Economy
Plural Interests
Market Institutions
Social Rooted Interest
Area/Group Condition
Profit-Making Interest
Business Sector
Public Interests
Government
Behaviors-Based Framework
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Foundations of Economies
Public Goods
[Gov’ment = Public Interest]
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Governance/Taxes
Factors of Production
[Markets = Plural Interests]
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administration/budgeting
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Regulations
natural, technology
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protection/ordinances
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Infrastructure
Public Services
education; amenities
Capital
capital equip; financing
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roads/utilities, etc
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Material Resources
Human Resources
labor, technicians, admin
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Organization
business climate
This Endowment is Finite but not Fixed
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Functions of Development
Enterprise Growth
Community Betterment
[Groups = Social Interests]
[Business = Profit Interests]
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Capital Investment
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private owners of production
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Trade/Export Promotion
positioning
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market based purchasing
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Production Operations
Entrepreneurship
competitive entry and exit
Area Redevelopment
growth management
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price based resource system
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Fiscal Stability
Civic Capacity
organizations; volunteerism
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Economic Opportunity
self sufficiency, housing
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environmental analysis
Structure, Trends, Performance,
Identify the key factors and
trends important for the
organization. How will things
outside the organization effect
those things that the organization
wants to accomplish?
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Competitive Advantage Structure
Overall Economic Model
Competitive Advantage; Ricardo, 1815
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Resource Based Economy
agriculture and mining
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Capital Intensive Economy
durable and non-durable goods
manufacturing and producer services
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Information & Innovation Based Economy
telecommunications and software
Substitute for Industry Composition Data
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Trends
Reflect Goals of Any Economy
Paden, 1972
Supply:
 Demand:
 Production:
 Adjustment:
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Mobility of Resources
Global Competition
Information Products
Entrepreneur/Technology
Substitute for PEST Analysis
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Current Performance
Based on Measures of Success
Industrial Vitality
Mfg output had rebounded; Exports are rising
New ventures & expansions create most jobs
Employment Vitality
Labor force will grow slower than job growth
High skill occupations as fastest growth segment
Substitute for Regional Composition Data
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institutional goals
Foundations and Functions
At this point institutional goals
and objectives can be developed
that move the organization in the
preferred direction, doing so
within the context which it has
to operate
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Commerce & Community Affairs
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Leadership: Increase the capabilities of practitioners
Infrastructure: Physical social infrastructure improvement
Workforce: Develop a skilled and adaptive workforce
Capital: Access to capital for business growth/expansion
Technology: Provide access to modern business practices
Trade Markets: Linkages between customers/ markets
Industry Investment: Retention, expansion and attraction
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Albuquerque New Mexico
# 1.
# 2.
# 3.
# 4.
# 5.
# 6.
# 7.
Provide high quality and efficient service to the public
Improve public safety services.
Balance new construction & maintenance of infrastructure
Adopt & implement an economic vitality strategy.
Foster the expression & appreciation of the culture.
Maintain stable neighborhoods; provide affordable housing
Achieve sustainable development, balanced development
& redevelopment, including infill development.
#8. Increase environmental protection & resource conservation
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A Typical Strategic Goals Portfolio
Similar Strategic Goals because of Similar Models and Interests
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Public Facilities
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Governance
Taxes/Regulations
Infrastructure
Social Utilities
Market Institutions
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Competitive Climate
Capital Access
Human Capital
Material Resource Mobility
Community Betterment
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Growth Management
Area Redevelopment
Employment Opportunity
Self Sufficiency
Enterprise Growth
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Capital Investment
Trade/Export Promotion
Production Operations
Entrepreneurial Starts
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set goal priorities
Hierarchy, Chronology, Urgency
Because it is impossible to do
everything that needs to be done,
strategic planning implies that
some organizational decisions
and actions are more important
than others.
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Simple Hierarchical Plan
Development
Community
Development
Vision
Public Goods
Component
Economic
Development
Vision
Area/Group
Conditions
Component
Business
Opportunities
Component
Econ Marketplace
Component
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Detailed Hierarchical Plan
V isio ns
H ig h Q u ality
o f L ife
V ig o ro u s E co n o m ic
S ystem
S co p e o f Intere sts
P ublic
C apac ity
M arket
C apab ility
B us ines s
V itality
C om m unity
B etterm ent
Iss u es
P ublic
Infrastru cture
S ocial
U tilities
T ax /R egulatory
C lim ate
G ov ernm ent
A dm inistratio n
H um an
C a pital
B u sin e ss
A ssistan ce
B u sine ss
C lim ate
C iv ic
O rga nization
T rad e/E x po rt
F inancial
C a pital
M aterial
R e sou rce s
Inv ention
Innov ation
Inv estm ent
G ro wth
M an ag em ent
E co nom ic
O pp ortunity
Ind u stry
S ectors
P ro g ram /A d m inistrative A ctio n s
R ecru itm en t
E xp a n sio n
R ete n tio n
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Practitioner’s
Priorities
Job Creation Tax Base
& Retention Growth
Recruitment
Entrepreneurs
and Retention
& Technology
Functions
Management &
Trade &
Modernization
Tourism
Human
Foundations Public
Resources
Services
Tax/Reg.
Material
Access to
Physical
Resources
Capital
Infrastructure
Climate
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philosophy
World Class, High Performance
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Principles for Economic Development
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Context:
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Global Economy
Industry Cluster Focus
Vision:
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Goals/Objectives/Scope:
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Public Facilities Capacity
Community Betterment
Business Vitality
Marketplace Capability
High Quality Job Creation  Organization:
 Stable Tax Base
 Staff
 Regional Collaboration
 Mission:
 Partnerships
 Business Competitiveness
 Process:
 Community Excellence
 Comprehensive Strategy
 Strategic, Mission Driven
Adapted from "Emerging Principles in
Economic Development: A
 Customer Orientation
Benchmarking Tool", June '95.
 Measurement/Evaluation
 Learning
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Malcomb Baldridge Approach
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Visionary Leadership/Public Responsibility
Strategic Planning: Focus on the Future; Management by Fact
Customer Driven Excellence/Market Focus
Information/Analysis: Organizational & Personal Learning
Human Resource Focus: Valuing Employees & Suppliers
Process Management: Agility, Manage for Innovation
Business Results: Focusing on Results/Creating Value
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World Class Operations
FUNCTION
 Facility Mission
 Products/Services
 The Customers
 The Benefits
 The Staff
 Competition
 Operations
 Administration
 Facilities
 Risk Analysis
 Financial Plans
PRINCIPLES
Best of Class
Leading Edge
Customer Oriented
Cost Justified
Skilled, Motivated
Adaptive
Lean Operations
Flat Management Structure
Integrated Processes
Issue Management
Minimized Expenses
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core competencies
Define the kinds of work
which differentiates your
organization from others
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Competitive Differentiation
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Product:
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Specialization
Product Quality
Brand Identification vs.
Low Price Leader
Marketing:
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Distributor Push vs.
Consumer Pull
Channel Selection
Processing:
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Technological Leadership
Vertical Integration
Low Cost Position
Leveraging
External Relations:
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Relations with Parent Co.
Relation to Host Govt
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Public Agency Competencies
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Capacity Model (Common at State Level)
Delivery System (process/partner) Improvement
 Customer Responsive Services (customer centered)
 Capacity/System Expansion
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Services Model (Common at State Level)
Information: Information and Training
 Consulting: Case Work; Customized Counseling
 Financing: Grants and Loans
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Systems Competencies
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Management Functions Model
Planning: Anticipating The Environment
 Administration: Managing for Success
 Delivering: Product or Service Quality
 Evaluating: Tracking Performance
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Product Life Cycle Model
Invest: New Products under Development
 Growth: Products with Growing Importance
 Foundation: Products meeting customer needs
 Harvest: Products no longer at the leading edge
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assessments
Benchmarks and Scorecards
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Internal Analysis -- SEA
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Resource Level [Input Objectives, Input Indicators]
Inputs are the resources put into an effort
 Activity Levels [Activity Objectives, Activity Indicators]
Activity measurements consider the methods and procedures
used to carry out the program.
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Output Levels [Output Objectives, Product Indicators]
Outputs are the direct results, i.e. the products produced from
the work performed.
 Results Levels [Outcome Objectives, Impact Indicators]
Outcomes state the benefits
GAAP: Service Efforts and Accomplishments
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Balanced Scorecard
Customer Perspective
- Customers Served
- Customer Satisfaction
Finance Perspective
Internal Processes
- Leverage
- Performance Metrics
- Cost Benefit
- Plan vs. Performance
- Admin Cost
Learning Organization
- Employee Satisfaction
- New Initiatives
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Conclusion
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Questions
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Comments
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