A Strategic Management & Planning Toolkit

David Peacock

Knowledge Services & E-Learning Manager

Outline:

• What is Strategy?• Analysing External Drivers: tools to analyse

the organisations external environment.• Analysing Strategic capability: tools to

determine the organisations resources and competencies.

• Analysing the best fit: tools to aid strategic decision making.

What is Strategy?

“Strategy is the direction and scope of an organisation over the long term, which achieves advantage in a changing environment through its configuration of resources and competencies with the aim of fulfilling stakeholder expectations.”

- Johnson, Scholes and Whittington.

Strengths & Weakness

Capabilities & Resources

Mission

Opportunities & Threats•Needs of customers & stakeholders

•PEST Forces•Competitors and allies

The FitBest course

of action

What do we want to accomplish?

What are your capabilities?

What is needed

and feasible?

B.W.Barry

(Open University)

Analyse near EnvironmentAnalyse Near Environment

Organisational purposes and

current strategy

Analyse capabilities and resources

Strategic opportunities and threats

Identify alternatives

Strategic decision making

Levels of Strategy

• Corporate-level strategy

• Business-level strategy

• A strategic business unit strategy

• Trust level strategy

• Departmental level strategy

• A divisional strategy

E.g., Library Knowledge Service

Analysing the External environment

• PEST

• Porters five forces

• SWOT

PEST :-

• P - Political / Legal• E - Economic / Financial factors• S – Socio-cultural factors• T - TechnologicalWhat environmental factors are affecting the

organisation?Which of these are the most important at the

present time? Which will be in the next few years?

PEST (Political / Legal) -

The main DOH policy initiatives…..• World class Commissioning/ Practice Based

Commissioning• Darzi review• Role of independent contractors/sicial enterprises• Links to Local Government / Social care• E-Government initiatives• Data Protection & copyright/ FOI• Records management

PEST (Economic / financial)-

• WCC• Practice based commissioning• PBR and the “internal market”• Impact of Independent sector provision• Local overspends & deficits• Government public spending plans• PFI developments

PEST (Socio-cultural factors)

• Consumerism & growth of choice• Development of expert & informed patients• Local population demographics• Growing obesity and poor diets• Lifestyle changes• Changes to family structure - singletonism

PEST – (Technological)

• NPFiT/CfH• ESR and additional functionality• Multi-purpose mobile devices• Digital TV• E-learning and m-learning• Tele-medicine• Computer Mediated Communication (CMC)

Substitutes

buyers

Industry Competitors

Rivalry

Potential Entrants

Suppliers

Porters five Forces model

Threat of new entrantsBargaining power of suppliers Bargaining power

of buyers

Threat of substitute products/ services

Central government

Client vcitizen

Street level public organisations

Professional associationsRelated street

level org.

Adapted five Forces model

Mckevitt, 2000

Suppliers

SWOT

• Strengths

• Weaknesses

• Opportunities

• Threats

Opportunities:- issues to consider

• market developments;

• competitor vulnerabilities;

• political, economic, social and technological trends;

• Unique Selling Points;

• new services; new partnerships;

• and new distribution channels.

Threats:- issues to consider

• political, economic, social and technological trends;

• competitor strengths and intentions;

• new technologies, services, ideas;

• changing customer/client demand;

• sustaining internal capabilities;

• and new obstacles.

Six planning areas

• Service/ product (what are we selling/delivering?)• Process (How are we delivering/selling it?• Customer/Client (Who are we delivering /selling it

to?)• Distribution (How does it reach them?)• Finance/resources (What are the resources,

costs and investments required?)• Administration (and how do we manage all this?)

Analysing internal strategic capability

• Strategic capability – the resources and competencies of an organisation needed for it to survive and prosper.– SWOT– The Value Chain– Benchmarking

Strengths & weaknesses: issues to consider

• Capabilities; resources, assets, people? • Reputation and presence? • Experience and knowledge? • Marketing – reach, distribution, awareness? • Location and geography? • Value, impact and quality of service? • Processes, systems, IT?

• Cultural, attitudinal and behavioural issues?

Benchmarking

• used to compare your services capabilities with similar services in other organisation

• identify issues and problems, and understand what makes others perform “better” than your own service.

-Data or metrics benchmarking

- Process benchmarking

Analysing the “best fit”

• SWOT & PEST Analysis

• Public sector Portfolio matrix

• Maslin Multi-dimensional matrix

SWOT & PEST Analysis

Rising public Expectations

New med. Technologies

Demographic trends

Competitive Market

Capacity for innovation ++ + + + ++

Good links with Social care + 0 + + _

Organisation still defining role 0 0 0 _ _

No financial growth _ _ _ _ _

_

Possible responses on the basis of a SWOT analysis (adapted from

McLaughlin et al).

Attack

“Go for It”

Beware

“Don’t do it”

Explore

“If you have time”

Project

“Watch yourself”

Opportunity

Threat

Strength Weakness

SITUATIOn ORG. CAPABILITY

Public Sector Portfolio matrix

HIGH

LOW

Public Sector Star

(Short waiting times)(Transplants)

(Improved cancer treatments)

Political hot box

(MRSA/infection control)

(Dentists)(New costly drugs)

(Closure of Services)

Golden Fleece

(Community services)

(Ambulance Service)

Back draw issue

(Fertility treatment)

(Mental Health)

HIGH LOWAbility to provide effectively

Public

need,

support

&

funding

attractive-

ness

Maslin Multi-Dimensional Matrix (MMDM)

HIGH

LOW

Mental Health

Oncology

Dental Services

LOW HIGHNeeds or wants of client Group

Level of

Provision