Strategic Planningdemystified

DefinitionWhat it is:Management toolChoosing a desired futureConsciously responding to dynamic environmentProcess, not an eventCreative, interactive

A key note speaker at one conference talked about strategic planning, pointing out the difference between a strategy and a tactic. He said something like this: if the goal is to get on the other side of the wall, then the tactic is placing a ladder on the wall and the strategy is making sure that the ladder leans against the right wall. I would argue that the strategy here is a decision whether to climb over, to build a tunnel through, or to go around the wall.

PitfallsWhat not to do:Separating planning from experience and planners from doersLegitimizing of what is being doneControlling futureAssuming the future is predictableReacting rather than interacting with environment

The purpose of strategic planning is to create rather than to control future.

AssumptionsCreating leaderships commitment at the topEntering the process without predetermined solutionsResponding to the received input (avoid managed consensus)Working as a teamDefining the planning processFollowing a clear pathDeciding and agreeing on a timeline and how decisions will be made

Successful strategic planning assumes leaderships commitment to the process and a clearly defined and understood planning process.

Managed consensus means that although the process is collaborative, the leadership group is selective about the data received.Sometimes a leadership group struggles to work as a team. Typically, people rise to leadership positions not by modeling open inquiry and sharing power, but through competitive ambition. They have to re-learn how to work as a team.

The planning activities should not follow a random order as the individual components build on each other. It doesnt make sense to define institutions vision after deciding on the goals as the vision should inform the goals.

Often neglected is understanding and agreement on how decisions will be made: a leadership group may serve only as an advisory taskforce and the decision is in the hands of the top executive or some decisions are made through voting and some (i.e. on organizations vision) are made by the top executive only. The important point is that the process is understood and embraced by all participants to avoid disillusion later on.

Strategic Planning: The Path

Monitoring, Evaluation, Accountability

Action Planning(Affecting Change)

Goals Setting

Visioning(Values, Mission, Vision)

Diagnostic Phase(Data Gathering)

When thinking about the strategic planning process, it is important to realize that some activities must be on-going, some annual, and some periodic but not necessary annual. The least frequent from the planning activities is probably the visioning process. Monitoring and evaluation should be on-going and action planning and focused environmental diagnostics annual (although it is a good practice to collect data continuously). Frequency of goals setting or their re-aligning depends on the outcome of the environmental scan.

Each organization may have a slightly different approach, and the terminology used for individual phases may vary but the key concept of continuity should be the same as well as the essential purpose of activities in each phase.

Diagnostic PhaseUnderstanding the BIG picture

TOOLS:Puzzling toward the futureSWOTSharing perspectives

TOOLS:Stakeholder analysis (parents, students, faculty, alumni, staff, community partners)

Understanding the environment in which an organization operates is the first and perhaps the most crucial part of the strategic planning process. The purpose of this phase is to share information and learn about the environmental impacts on the organization. All members of the planning group should be informed about the major trends and gain understanding of complex issues affecting the organization.

Diagnostic Phase: Puzzling toward the future

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Activity called Puzzling toward the future enables the members of the planning group to learn about major external forces in a very short period of time. It is an effective way to expose all members to the same information without overwhelming individuals by making them read and sort through extensive documents.Participants=25, ideally the number of participants should be divisible by the number of main topics; time=2.5 hoursPrior the session:Identify the relevant themes/topics (e.g. federal and state regulations and political situation, demographic trends including current student generation profile, technology, economic data, global issues)Assign material gathering for each topic (the key is quality, not the length; 5-8 page summaries provided for each topic)

During the session:Break the planning group into small groups (each group then becomes a subject area expert group)In next 30 minutes groups read through the assigned materials and agree on the 5-6 most important points, themes, or factsRedistribute the groups so the new groups include one expert for each subject areaIn the next 45 minutes participants take about 7 minutes each to share the most important facts from the articles they read.From all shared facts, the mixed groups now select 5-6 ideas that are most important and want everybody to remember and seriously consider. Use recorder to capture this information. Allow 15 minutes.Each group now one-by-one shares the most important facts/ideas they learned until all ideas are captured (flipchart, overhead)The facilitator asks each group to take 10 minutes and make 3 strong recommendations that the organization should consider. The recommendations must be sourced from the information shared in steps 1-4.Each group gives a 1-minute presentation of the ideas

The recommendations from the groups serve as base for setting up the goals and strategies.

Diagnostic Phase: SWOT

Monitoring, Evaluation, Accountability

Action Planning(Affecting Change)

Goals Setting

Visioning(Values, Mission, Vision)

Diagnostic Phase(Data Gathering)

External Environment(Outside the organization)

External Environment (Within the organization but outside the unit)

Internal Environment(Within the unit)

Strengths/Weaknesses

Internal Opportunities/Threats

External Opportunities/Threats

SWOT often times planning teams confuse internal and external environment when conducting SWOT analysis. It is especially confusing when a sub-unitsuch as college or a division within a universityis involved in their internal planning. Strengths and weaknesses should be always considered only as they relate to your internal organizational structure. If you are planning for a sub-unit, you may consider looking at opportunities and threats as external factors at two levels (outside the unit but within the organization and outside the organization.

4 easels with flipcharts; Participants break into 4 groups, each one gets one of the four elements of the SWOT analysis assignedDuring 10 minutes the groups work on a list of strengths, weaknesses, opportunities, and threats, depending on their assignmentAfter the lists are compiled, each group makes a short presentation (3-5 minutes) of their answersAfter the presentations, the groups rotate, taking 5 minutes to add new strengths, weaknesses, opportunities, and threats. Each group uses certain color marker to record their ideas.After all groups attend to each SWOT station, and the facilitator summarizes and with the help of the groups clarifies any new additions, each participant using the Las Vegas voting method identifies the most important ideas within each element. (Las Vegas voting method: participants can assign multiple votes to one idea. Based on the decision each participant can assign lets say 5 votes at each SWOT station).Summarize the votes and identify the top three strengths, weaknesses, opportunities, and threats.Mix the groups to create 6 new groups and have each group come up with 3 strong recommendations responding to the list of the most important strengths, weaknesses, opportunities, and threats that organization needs to honestly consider in planning for future. (10 minutes)Solicit 3 strong recommendations from each group using a round robin approach, taking one idea from each group until all the ideas are exhausted.

The recommendations from the groups serve as base for setting up the goals and strategies.

Diagnostic Phase: Stakeholder AnalysisOnline bulletin boards and focus groups (alumni, community partners, parents)In-person focus groups (students, faculty, staff)

The stakeholder analysis explores key constituents wants, needs, and ideas. Depending on ease of engagement individual stakeholder groups, in-person or online formats of discussion forums may be used.

VisioningValues

Tools:Values AuditCultural Assessment using affinity diagramMission

Tools:MindmapVision

Tools:Affinity diagram

Affinity Diagram (can be used for various purposes not just cultural assessment)Goal=to generate ideas through identifying of common themesQuestions for cultural assessment:For what types of behaviors are people rewarded and punished?Is information withheld or shared freely, and why?Is the organizational hierarchy centralized or decentralized, and for what purpose?

Process:Participants generate ideas responding to the questions above by recording them on post-it-notesAll post-it-notes are displayed on a boardParticipants rearrange and group post-it-notes based on the common themesCommon themes are labeled and discussed

Visioning: ValuesValues are the set of beliefs people share about how to operate in conducting businessValues are behaviors that are truly livedValues are special, unique, lasting, enduringValues guide, align, and galvanize an organization

Values audit:Goal=to elicit shared values, to make sure the organizational values are explicit and understood by all employeesDivide participants into groups (if many are involved):Each group creates a list of values that are truly lived (combination of positive and negative)Groups identify positive values people like and make organization effective (provide examples how the values are demonstrated)Groups identify any new values they would like to embraceList all positive existing and new values by getting one value at the time from each groupEverybody votes using Las Vegas voting methodDiscuss, provide examples

Visioning: MissionOverall purpose or contribution to the society. A clear statement of the reasons for being, and of the functions and desires the organization is to meet and fulfill. Never completely achieved because it is the reason for existence and not a measurable goal. It shouldnt be too narrow and focused on services. More attention should be paid to meeting the needs of the stakeholders. Mission is not necessary what differentiates one organization from another but what matters most to stakeholders.

Mission is the overall purpose or contribution an organization makes to the society (or division to the organization). It is a clear statement of the reasons for being, and of the functions and desires the organization is to meet and fulfill. The mission is never completely achieved because it is the reason for existence and not a measurable goal. It shouldnt be too narrow and focused on services. More attention should be paid to meeting the needs of the organizations stakeholders. Mission is not necessary what differentiates one organization from another but what matters most to stakeholders.

Mindmap:Participants generate ideas recording them on post-it-notes. They answer the following questions:How does the organization benefits the society? (BENEFITS To THE SOCIETY)Who are the key stakeholders? (STAKEHOLDERS)What the stakeholders expect from the organization? (STAKEHOLDERS EXPECTATIONS)The ideas are recorded on the mapThe group works together to formalize the mission statement

Mission: Mindmap

BENEFITS

EXPECTATIONS

STAKEHOLDERS

Mindmaps can be used for various purposes. For example for organizing values, subject mapping (planning an event) etc

Visioning: VisionProvides a clear, easily understood image of a better future. Embodies values and directs the organization to what will be different and distinctive. Guides and inspires stakeholders but its not everlasting. May change every 5-10 years, just as the environment changes.

Examples:Stanford: Become the Harvard of the westGiro: Become the Nike of biking industry

Use affinity diagram to organize ideas for the future.

Goals SettingKeep in mind ValuesMissionVisionGo back to the diagnostic phaseRecommendations generated in SWOT analysis Recommendations from the Puzzling toward the future exerciseStakeholder analysis outcomesBroad statement of a desirable and measurable result in achieving the organizational vision

The key issue is to distinguish between everything we want to achieve and goals that will help organization realize its vision.

Action PlanningStrategic goalObjective 1Action step 1.1: Assigned toDate dueAction step 1.2:Assigned toDate due

Strategic goal: To have a financially stable organizationObjective 1: Provide mechanisms and procedures to ensure financial stability and growthsAction 1.1: Develop a three-year financial planAction 1.2: Develop alternative financing scenarious

Monitoring, Evaluation, AccountabilityMonitoring = maximizing opportunities, cutting lossesEvaluation = reporting on progressAccountability = built-in consequences and points of accountability, recognition and rewards

90% of most planning efforts revolve around the diagnostic and visioning process but most plans fail at the point of implementation. As a result people are often resistant to planning. At the end of the planning process most organizations realize that enormous amount of work has to be done, that the action tasks dont really have owners or are not assigned to any particular person. All these implementations technicalities can be resolved by a small, project-management-savvy steering committee to ensure the plans dont end up on the shelves.

Thank You!Communication / Focus / Execution

Northern Arizona UniversityPlanning and Institutional Research(928) 523-7814Eva.Hatchner@nau.edu

Three most important aspects of strategic planning process include:An inclusive communication plan to gather input, brainstorm new ideas, and make decisionsAn ability to stay focused on whats important for the organization to realize its visionA built-in procedures for execution of the plans (the top level plans should be the starting point for divisions and units to plan their own activities)

A key note speaker at one conference talked about strategic planning, pointing out the difference between a strategy and a tactic. He said something like this: if the goal is to get on the other side of the wall, then the tactic is placing a ladder on the wall and the strategy is making sure that the ladder leans against the right wall. I would argue that the strategy here is a decision whether to climb over, to build a tunnel through, or to go around the wall. The purpose of strategic planning is to create rather than to control future.Successful strategic planning assumes leaderships commitment to the process and a clearly defined and understood planning process.

Managed consensus means that although the process is collaborative, the leadership group is selective about the data received.Sometimes a leadership group struggles to work as a team. Typically, people rise to leadership positions not by modeling open inquiry and sharing power, but through competitive ambition. They have to re-learn how to work as a team.

The planning activities should not follow a random order as the individual components build on each other. It doesnt make sense to define institutions vision after deciding on the goals as the vision should inform the goals.

Often neglected is understanding and agreement on how decisions will be made: a leadership group may serve only as an advisory taskforce and the decision is in the hands of the top executive or some decisions are made through voting and some (i.e. on organizations vision) are made by the top executive only. The important point is that the process is understood and embraced by all participants to avoid disillusion later on. When thinking about the strategic planning process, it is important to realize that some activities must be on-going, some annual, and some periodic but not necessary annual. The least frequent from the planning activities is probably the visioning process. Monitoring and evaluation should be on-going and action planning and focused environmental diagnostics annual (although it is a good practice to collect data continuously). Frequency of goals setting or their re-aligning depends on the outcome of the environmental scan.

Each organization may have a slightly different approach, and the terminology used for individual phases may vary but the key concept of continuity should be the same as well as the essential purpose of activities in each phase.Understanding the environment in which an organization operates is the first and perhaps the most crucial part of the strategic planning process. The purpose of this phase is to share information and learn about the environmental impacts on the organization. All members of the planning group should be informed about the major trends and gain understanding of complex issues affecting the organization.

Activity called Puzzling toward the future enables the members of the planning group to learn about major external forces in a very short period of time. It is an effective way to expose all members to the same information without overwhelming individuals by making them read and sort through extensive documents.Participants=25, ideally the number of participants should be divisible by the number of main topics; time=2.5 hoursPrior the session:Identify the relevant themes/topics (e.g. federal and state regulations and political situation, demographic trends including current student generation profile, technology, economic data, global issues)Assign material gathering for each topic (the key is quality, not the length; 5-8 page summaries provided for each topic)

During the session:Break the planning group into small groups (each group then becomes a subject area expert group)In next 30 minutes groups read through the assigned materials and agree on the 5-6 most important points, themes, or factsRedistribute the groups so the new groups include one expert for each subject areaIn the next 45 minutes participants take about 7 minutes each to share the most important facts from the articles they read.From all shared facts, the mixed groups now select 5-6 ideas that are most important and want everybody to remember and seriously consider. Use recorder to capture this information. Allow 15 minutes.Each group now one-by-one shares the most important facts/ideas they learned until all ideas are captured (flipchart, overhead)The facilitator asks each group to take 10 minutes and make 3 strong recommendations that the organization should consider. The recommendations must be sourced from the information shared in steps 1-4.Each group gives a 1-minute presentation of the ideas

The recommendations from the groups serve as base for setting up the goals and strategies.SWOT often times planning teams confuse internal and external environment when conducting SWOT analysis. It is especially confusing when a sub-unitsuch as college or a division within a universityis involved in their internal planning. Strengths and weaknesses should be always considered only as they relate to your internal organizational structure. If you are planning for a sub-unit, you may consider looking at opportunities and threats as external factors at two levels (outside the unit but within the organization and outside the organization.

4 easels with flipcharts; Participants break into 4 groups, each one gets one of the four elements of the SWOT analysis assignedDuring 10 minutes the groups work on a list of strengths, weaknesses, opportunities, and threats, depending on their assignmentAfter the lists are compiled, each group makes a short presentation (3-5 minutes) of their answersAfter the presentations, the groups rotate, taking 5 minutes to add new strengths, weaknesses, opportunities, and threats. Each group uses certain color marker to record their ideas.After all groups attend to each SWOT station, and the facilitator summarizes and with the help of the groups clarifies any new additions, each participant using the Las Vegas voting method identifies the most important ideas within each element. (Las Vegas voting method: participants can assign multiple votes to one idea. Based on the decision each participant can assign lets say 5 votes at each SWOT station).Summarize the votes and identify the top three strengths, weaknesses, opportunities, and threats.Mix the groups to create 6 new groups and have each group come up with 3 strong recommendations responding to the list of the most important strengths, weaknesses, opportunities, and threats that organization needs to honestly consider in planning for future. (10 minutes)Solicit 3 strong recommendations from each group using a round robin approach, taking one idea from each group until all the ideas are exhausted.

The recommendations from the groups serve as base for setting up the goals and strategies.The stakeholder analysis explores key constituents wants, needs, and ideas. Depending on ease of engagement individual stakeholder groups, in-person or online formats of discussion forums may be used.Affinity Diagram (can be used for various purposes not just cultural assessment)Goal=to generate ideas through identifying of common themesQuestions for cultural assessment:For what types of behaviors are people rewarded and punished?Is information withheld or shared freely, and why?Is the organizational hierarchy centralized or decentralized, and for what purpose?

Process:Participants generate ideas responding to the questions above by recording them on post-it-notesAll post-it-notes are displayed on a boardParticipants rearrange and group post-it-notes based on the common themesCommon themes are labeled and discussed

Values audit:Goal=to elicit shared values, to make sure the organizational values are explicit and understood by all employeesDivide participants into groups (if many are involved):Each group creates a list of values that are truly lived (combination of positive and negative)Groups identify positive values people like and make organization effective (provide examples how the values are demonstrated)Groups identify any new values they would like to embraceList all positive existing and new values by getting one value at the time from each groupEverybody votes using Las Vegas voting methodDiscuss, provide examples

Mission is the overall purpose or contribution an organization makes to the society (or division to the organization). It is a clear statement of the reasons for being, and of the functions and desires the organization is to meet and fulfill. The mission is never completely achieved because it is the reason for existence and not a measurable goal. It shouldnt be too narrow and focused on services. More attention should be paid to meeting the needs of the organizations stakeholders. Mission is not necessary what differentiates one organization from another but what matters most to stakeholders.

Mindmap:Participants generate ideas recording them on post-it-notes. They answer the following questions:How does the organization benefits the society? (BENEFITS To THE SOCIETY)Who are the key stakeholders? (STAKEHOLDERS)What the stakeholders expect from the organization? (STAKEHOLDERS EXPECTATIONS)The ideas are recorded on the mapThe group works together to formalize the mission statement

Mindmaps can be used for various purposes. For example for organizing values, subject mapping (planning an event) etcExamples:Stanford: Become the Harvard of the westGiro: Become the Nike of biking industry

Use affinity diagram to organize ideas for the future.The key issue is to distinguish between everything we want to achieve and goals that will help organization realize its vision.Strategic goal: To have a financially stable organizationObjective 1: Provide mechanisms and procedures to ensure financial stability and growthsAction 1.1: Develop a three-year financial planAction 1.2: Develop alternative financing scenarious90% of most planning efforts revolve around the diagnostic and visioning process but most plans fail at the point of implementation. As a result people are often resistant to planning. At the end of the planning process most organizations realize that enormous amount of work has to be done, that the action tasks dont really have owners or are not assigned to any particular person. All these implementations technicalities can be resolved by a small, project-management-savvy steering committee to ensure the plans dont end up on the shelves.

Three most important aspects of strategic planning process include:An inclusive communication plan to gather input, brainstorm new ideas, and make decisionsAn ability to stay focused on whats important for the organization to realize its visionA built-in procedures for execution of the plans (the top level plans should be the starting point for divisions and units to plan their own activities)