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Strategic Management: The Ultimate Goal of Strategic Planning
The document outlines the importance of strategic planning, emphasizing engagement of staff and experts, establishing a decision-making framework, and setting realistic goals for organizational growth. It identifies common reasons plans fail and offers essential practices for effective planning, such as assigning responsibilities, monitoring progress, and maintaining communication. Additionally, strategic questions are posed to guide leadership in assessing failures, successes, and future directions.
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Strategic Management: The Ultimate Goal of Strategic Planning
- 1. Strategic Management TheUltimate Goal of Strategic Planning Kathy Brandt, MS the kb group the-kb-group.com
- 2. Why Plan Strategically? • Engage in facilitated strategy debates and discussions • Involve employees in setting and implementing long-term goals • Develop data-driven guestimates and then test them • Create a framework for future decisions
- 3. Why Plan? •Create synergy and buy in regarding strategy among leaders, staff and board • Teach and encourage the leadership team to think strategically • Identify gaps in what you have and what you need to meet goals
- 4. Why Plans Fail • Planning sessions focus on minutiae • Anecdotes used as a proxy for data • Looking backwards instead of forwards • Letting the actions of competitors drive strategy • Focusing on tactics rather than strategy • Once finalized, the plan is ignored
- 5. When is itTime to Plan? • Every X number of years • Major shifts in the environment – Funding – Competition – Policy/regulatory • Changes in leadership
- 6. Which Process? •SWOTT • AI • Dots /refining priorities • Scenario planning • All of the above • None of the above
- 7. KB’s Strategic Planning“Essentials” 1. Engage “content experts” and staff in the process – Creates buy in – Provides input from the “implementation team” – Results in a more well-rounded strategy – Identifies champions – Teaches strategic thinking
- 8. KB’s Strategic Planning“Essentials” 1. Engage “content experts” and staff in the process 2. Establish a framework for decision making – Develops questions that can be used to evaluate future initiatives – Communicates the process for future decisions – Helps leaders say yes (and no) – Informs budget, staffing and other priorities – Defines the data needed to make informed decisions
- 9. Strategic Planning “Essentials” 1. Engage “content experts” and staff in the process 2. Establish a framework for decision making 3. Set stretch goals that are realistic given your resources – Challenges the organization to grow and evolve – Identifies champions for new initiatives – Creates opportunities for staff be creative – Establishes the organization as an innovator
- 10. Strategic Planning “Essentials” 1. Engage “content experts” and staff in the process 2. Establish a framework for decision making 3. Set stretch goals that are realistic given your resources 4. Assign responsibilities and a time line – Involves staff, teams, board members and volunteers – Establishes milestones – Prioritizes initiatives – Informs the annual budget and staffing plan
- 11. Strategic Planning “Essentials” 1. Engage “content experts” and staff in the process 2. Establish a framework for decision making 3. Set stretch goals that are realistic given your resources 4. Assign responsibilities and a time line 5. Develop a monitoring process – Facilitates accountability – Establishes the metrics to measure – Engages the governing body in oversight
- 12. Strategic Planning “Essentials” 1. Engage “content experts” and staff in the process 2. Establish a framework for decision making 3. Set stretch goals that are realistic given your resources 4. Assign responsibilities and a time line 5. Develop a monitoring process 6. Communicate regularly with everyone – Provides the opportunity to ask questions – Helps staff understand the context of their work – Allows leaders to showcase their team’s successes – Celebrates “wins”
- 13. Start Big, Definethe Descriptive Vision • As a result of our work we will __________ • If we do not succeed, then ___________ (what we are trying to prevent, avoid, eliminate, improve – helps to clarify the vision) • We’ll know we are successful when _________ • Incremental progress will be measured by __________
- 14. Use Data, NotHunches • Be sure you know what the organization and community needs, don’t rely on hunches • Ask stakeholders • Remember that the past isn’t an indicator of anything regarding the future • Look far and wide for best practices • Bring questions, not answers
- 15. Strategic Planning Questions • What was our biggest failure this year? How can we fix it? • What was our biggest success? How can we repeat it? • What internal forces stood in the way of success this year ? What can we do about that? • What internal force was most responsible for success? How can we create more of that?
- 16. Leadership Questions •What single data point did we least want to hear this year? • What is the single metric you/we will measure success by ? What are you/we doing about it? • If you fired yourself today, and came in tomorrow with a clean sheet, what would you do?
- 17. More Questions •What is our organization passionate about doing? • What are we best in the world at? • Within our mission, how can we build a sustainable resource engine? • Who will our customers be five years from now? • What do we need to do to meet their needs? • What do we want to put in place to evolve and better serve our stakeholders? • What do we need to concentrate on to dramatically exceed our goals and objectives?
- 18. What Format? •Narrative • Visual • Tables • Hybrid
- 22. Goal: Objectives Key Initiatives Qtr/ Yr Indicators 1. · 2. · ·
- 23. Monitoring and ManagingEssentials • Everyone and anyone should be able to access the work plan • The plan is used to establish staff annual goals • Performance reviews are informed by participation and progress • Leaders rely on the plan to guide decisions • The governing body is never surprised at the end of the year
- 25. Staff Engagement withFinished Plan • Review goals • Ask (or assign) each department to work with one goal • Devote time at each staff meeting for department report on a goal • Present quarterly updates on progress towards goals • Solicit feedback related to changes in plan
- 26. Is the NewStrategy… • Relevant to and built from our vision, mission values? • Does it improve the experience of our patients/families, community, staff or volunteers? • Could it significantly change the way people think about us? If so, how? • Does it necessitate a fundamental change in how we do our work? If so, is that good? • Will it significantly change our financial profile?
- 27. Strategic Planning Checklist • An engaged organization develops the plan • Data is used to develop the plan • The plan includes stretch goals or BHAGS • The plan is actionable • An annual work plan based on the strategic plan guides the work of every team • Each initiative includes specific indicators to measure progress
- 28. Resources and References • The Balanced Scorecard Institute • The Bridgespan Group • Strategic Planning Doesn’t Have to Kill Creativity • 10 Questions to Jumpstart Your Strategic Planning Process
- 29. For More Information and the Handouts the-kb-group.com -- blog [email protected]
Editor's Notes
- #2 Who is in the room? How many have led or participated in SP process? Developing a strategic plan is the first step in leading a strategic organization. The efficacy of the plan is judged not by how many goals you achieve, but in how well you utilize the plan to strategically lead your organization. According to the Balanced Scorecard Institute, strategic organizations implement processes to “systematically coordinate and align resources and actions with mission, vision and strategy.”
- #3 Gallup Survey - “…that engagement arises from when employees clearly know their roles, have what they need to fulfill their roles, and can see the connection between their individual role and the purpose of the organization.” --37% lower absenteeism --25% lower turnover (in high-turnover organizations) --65% lower turnover (in low-turnover organizations) --28% less shrinkage --48% fewer safety incidents --41% fewer patient safety incidents --41% fewer quality incidents (defects) --10% higher customer metrics --21% higher productivity --22% higher profitability”
- #4 Align executives, staff, and board members around a common strategy: connect the dots between mission and programs, to specify which activities and resources will be required to deliver those programs, and to establish performance measures that allow everyone to understand whether the desired results are being achieved. Without this kind of clarity, it’s difficult for everyone to be sure they’re moving in the same direction. Develop the leadership team’s capacity for strategic thinking - the way your organization approaches decision-making. The questions posed during business planning are not the sort you answer only once. Rather, leadership team members find themselves applying the approach they took to developing their business plan to opportunities and questions that arise down the road. At the end of the day, that is why so many nonprofit organizations find business planning truly energizing and transformational Identify capabilities and new leadership positions needed to take the organization to the next level – specifically related to staff – right staff in the right seats.
- #5 Focus on granular minutiae, running mind-numbing autopsies on the events of this year, using anecdotes in place of data, and generally thinking tactically
- #6 Funding environment: Are you seeing major shifts in the type and level of support your traditional funders are offering? Do you have a new funder who is concerned about the viability of your organization? Policy environment: Have new policies created opportunities or challenges that will dramatically affect what you can achieve as an organization? Competitive environment: Are new program models emerging that create opportunities for you to serve your beneficiaries more effectively and efficiently? Have new competitors or potential collaborators entered the space in which you’ve been operating? Organizational leadership: Do you have a new executive director or new board leadership at your helm?
- #7 Strengths, Weakness, Opp, Threats, Trends Appricative Inquiry Brainstorm priorities and then narrow/winnow them down Create scenarios based on the trends, forecasts, from HPM, healthcare and your community – aging of america is an example The process should fit within the context of your organizational culture, the timeframe, resources etc No matter what process you select, and I’ve used all of these, the next slides have my essentials for any SP process followed by some other important aspects of planning
- #8 Engaging “content experts” and the implementation team in the process Establishing a framework for decision making Setting stretch goals that are realistic given your resources Assigning responsibilities and a time line Communicating the plan and progress towards goals on a regular basis Developing a monitoring and reporting process to track implementation
- #9 Engaging “content experts” and the implementation team in the process Establishing a framework for decision making Setting stretch goals that are realistic given your resources Assigning responsibilities and a time line Communicating the plan and progress towards goals on a regular basis Developing a monitoring and reporting process to track implementation
- #10 Engaging “content experts” and the implementation team in the process Establishing a framework for decision making Setting stretch goals that are realistic given your resources Assigning responsibilities and a time line Communicating the plan and progress towards goals on a regular basis Developing a monitoring and reporting process to track implementation
- #11 Engaging “content experts” and the implementation team in the process Establishing a framework for decision making Setting stretch goals that are realistic given your resources Assigning responsibilities and a time line Communicating the plan and progress towards goals on a regular basis Developing a monitoring and reporting process to track implementation
- #12 Engaging “content experts” and the implementation team in the process Establishing a framework for decision making Setting stretch goals that are realistic given your resources Assigning responsibilities and a time line Communicating the plan and progress towards goals on a regular basis Developing a monitoring and reporting process to track implementation
- #13 Engaging “content experts” and the implementation team in the process Establishing a framework for decision making Setting stretch goals that are realistic given your resources Assigning responsibilities and a time line Communicating the plan and progress towards goals on a regular basis Developing a monitoring and reporting process to track implementation
- #14 Earlier I mentioned facilitated strategy debate – this is where/when that begins Use a descriptive vision as a launching pad to guide the planning. This may change over time Similar to Collin’s envisioned future and vivid description - what we aspire to become, achieve, etc
- #15 Surveys, focus groups, etc. Referrers, board, staff, volunteers, partners, young, older, etc guestimates are made using real data Next slides include questions
- #16 Use them individually, or as a group exercise ahead of your next strategic planning session: 1. What is the one thing your organization* was worst at this year? What single thing most needs to happen to fix it? 2. What is the one thing your organization did best this year? What do you need to do to turn that success into a repeatable process? 3. Which individual was most responsible for standing in the way of your organization's success this year? What are you going to do about it? Which department, division, team or function was most responsible for standing in the way of your organization's success this year? What are you going to do about it? 4 Which individual was most responsible for your organization's success this year? What are you going to do about it? . Which department, division, team or function was most responsible for your organization's success this year? What are you going to do about it?
- #17 What is the single metric or measurement you least liked hearing about this year? What will you do to prevent the same thing happening next year? What is the single metric you will measure your success by (not how anyone else will measure your success-- how you will measure your own success). What are you doing about it? If you fired yourself today, and came back tomorrow as a new boss with a clean sheet, what would you do?** If a perfect competitor opened up across the street from you tomorrow, what would they be like?***
- #18 Collins questions - What is our organization passionate about doing for our people and our customers? And What are we best at and where can we continue to excel? Resource engine Who will our customers be five years from now? What do we think will be important for us to deliver in best serving them? What are capabilities we want to put in place to stretch our organization and better serve our audiences? What are the things we need to concentrate on to dramatically exceed our goals and objectives?
- #19 The format has to work for you, your staff and the board. Following slide shows one that I’ve used (with modifications) for years.
- #24 You may have a module within one of your IT systems that can serve as a dashboard/
- #25 Reporting system in Excel – can be put on SharePoint – monthly or quarterly at a minimum Tab for each goal Objectives, initiatives, timeline, responsibility, indicators and status – color coded and standardized Notes allow for succinct narrative updates
- #26 Review the goals with all your clinical and administrative coordinators, managers, and leaders. Make sure they understand each goal, and encourage them to ask questions and even challenge the feasibility of the goals. Ask each department/team to select one goal and work as a team to directly relate their work with that goal. Give them a tool to help them think through and chart their progress or actions that help the organization reach the goal. This shouldn’t be arduous – it should be something simple that allows them to make the connection between their work and the goal. If the goal is streamlining systems to achieve efficiencies, they need to be able to easily track their efforts to safeguard the organization’s resources. At each staff meeting, ask a team/department to report out on their work with the strategic goals. Again, keep it simple; this doesn’t require a 20 slide PowerPoint. It can be fun and lighthearted or a short review of their progress. The staff just needs a sense of how everyone is contributing to the success of the organization.
- #27 Is it central to the brand, its representation, or delivery of the brand promise? Does it broadly and/or directly affect key audiences for your brand? Could it significantly attract or disaffect customers and prospects? Does it significantly affect organizational structure or alignment? Could it materially affect the brand’s financial prospects? Does it touch the heart of the core purpose, values, and/or vision of the organization? Will the organization’s supply of resources or raw materials be dramatically affected?
- #28 An engaged organization develops the plan – meaning it isn’t just the board and leaders – everyone plays a role. Doesn’t matter if you have 50 employees or 5,000. There are ways of engaging everyone. Data – educated guestimates A great strategic plan has some stretch goals or BHAGs as Jim Collins calls them as well as reasonably achievable goals. The plan is actionable – meaning it isn’t just a list of aspirational goals or a laundry list of things that you are already doing. Can be used as a tool to guide the work of teams and departments – if it sits on a literal or virtual shelf, only dusted off when you need to report outcomes to your stakeholders, then it is useless. The Gallup data points to the need to integrate strategic planning “check-ins” into your organization’s processes on a regular basis.