Session IIB-1:

Introduction to Strategic PlanningDr. William T. Cousins

cousinsw@asme.org(9:55 – 10:40)

Introduction to Strategic Planning2

• Introduce strategic plan formulation

• Relate Strategic Plans, Business Plans, and Balanced Scorecard

• Provide basics that lead to success

(ASME, Industry, Academic)

Session Objectives

Introduction to Strategic Planning3

Session Outline

• Intro to Strategic Planning

• Communicating & acting on the strategic plan– Strategic Plan document– Balanced Scorecard Strategy Map– Business Plan

• Failure points to protect against

Introduction to Strategic Planning4

Long Term Planning vs. Strategic Planning

Long TermPlanning

More ofthe Same

Extrapolation ofthe current state of the organization

Organizational Direction Change

CompetitivePositional/tactical analysisCustomer Driven

StrategicPlanning

Changes to the Business

Introduction to Strategic Planning5

Strategic Planning Steps

1. Develop a document that spells out:– Mission, Vision, Purpose of the organization

2. Develop a communication plan that saturates the consciousness of everyone with: What business are we in and why? Where are we going? What do we stand for as an organization?

3. Examine the culture to establish a baseline to which change can be compared.

Introduction to Strategic Planning6

Strategic Planning Steps4. Develop changes in information flow, accountability

& reward systems to ensure (at least) compliance and (at best) commitment & creativity.

5. Develop supports for changed behavior. (Training, team building, etc.)

6. Set goals for all parts of the organization. Criteria for goals: Perform gap analysis What we hope to accomplish How this relates to the vision of the organization How we will track progress

Introduction to Strategic Planning7

Strategic Planning Steps

7. Hold a strategy session with each unit to create action plan & agreed-upon goals that are aligned with the organizational vision. Who will do what, when, where, how, with what intent.

8. Communicate the plan.

9. Celebrate achievements & learn from mistakes.

Introduction to Strategic Planning8

How it all fits together…

BroadActions

GapAnalysis

People-FriendlyChange

StrategicQuestions

Why are wein business?

How do wedo business?

Where is ourbusiness now?

Where do wewant to be?

How can weget there?

How will we knowwe’ve arrived?

StrategicActions

Coordination

Budgets

Controls

Reports

Milestones

Vision

Mission

DrivingForce

Values

Climate

Culture

EnvironmentalAssessment

Strengths

Weaknesses

Opportunities

Threats

Competition

Constraints

Barriers

Strategies(Goals)

Tactics(Plans)

Resources

Metrics

Start

hereWork Across

Introduction to Strategic Planning

Exercise….

• Thinking about where your fellow leaders in your unit want to take your unit (the Vision)…..

– List what you consider the biggest barrier/constraint to getting there.

– What might you do to mitigate this barrier/constraint ?

10 minutes

9

Introduction to Strategic Planning10

What is the Balanced Scorecard?

The Balanced Scorecard (BSC) is a tool to help translate strategy into operational

objectives.

Introduction to Strategic Planning11

FY11 Enterprise Strategy Map

S1 – Expand ASME’s global impact S2 – Increase the conversion of engineering students and retention of early careermembers

S3 – Expand ASME energy technology resources

I1 – Expand and introduce newlocally relevant products and services

I4- Empower individual Engineers to help change the World

I2 – Expand global engineeringworkforce training ( especially in energy related sectors)

I5 – Increase and broaden participation in team based learning programs

I3 – Advance alliances and related government relations activities to lead/support development of balanced energy policies in US and around the world

Stakeholders

Internal

Learning & Growth

Financial

Global Impact Engineering Workforce Development Energy

ASME will be the essential resource for mechanical engineers and other technical professionals throughout the world for solutions that benefit humankind

ASME will deliver locally relevant engineering resources to advance public safety and quality of lifethroughout the world

ASME will serve as an essential energy technology resource and leading advocate for balanced energy policies

ASME will foster a broader, competent, vibrantand more diverse engineering workforce with improved retention in both the profession and ASME over all career stages

L1- Foster a more globaland diverse organization

L2 – Utilize a volunteer-staffpartnership to foster innovation

L3 –Provide high quality cost effective internal service functions

F1- Run an efficient and financially successful operation

Introduction to Strategic Planning12

Guiding Your Strategy into Operation

Your Strategy Map Helps You:• Keep your operation on the

“right” path to be successful• Set priorities• Focus your volunteers on

what’s important

ASME Enterprise

Strategy Map

Your UnitStrategic

Plan

Your Unit Strategy

Map

Driving

Force

Support

Introduction to Strategic Planning13

How it all fits together…Broad

ActionsGap

AnalysisPeople-Friendly

Change

StrategicQuestions

Why are wein business?

How do wedo business?

Where is ourbusiness now?

Where do wewant to be?

How can weget there?

How will we knowwe’ve arrived?

StrategicActions

Coordination

Budgets

Controls

Reports

Milestones

Vision

Mission

DrivingForce

Values

Climate

Culture

EnvironmentalAssessment

Strengths

Weaknesses

Opportunities

Threats

Competition

Constraints

Barriers

Strategies(Goals)

Tactics(Plans)

Resources

Metrics

BSC

Strategy Map

Introduction to Strategic Planning14

Business Plan? Strategic Plan?

Now I’m really confused!

It’s really very simple…• A business plan is:

a management, planning,

and communication document.

• It defines specifics for an individual

program or tactic in the strategic plan

Introduction to Strategic Planning15

How it all fits together…Broad

ActionsGap

AnalysisPeople-Friendly

Change

StrategicQuestions

Why are wein business?

How do wedo business?

Where is ourbusiness now?

Where do wewant to be?

How can weget there?

How will we knowwe’ve arrived?

StrategicActions

Coordination

Budgets

Controls

Reports

Milestones

Vision

Mission

DrivingForce

Values

Climate

Culture

EnvironmentalAssessment

Strengths

Weaknesses

Opportunities

Threats

Competition

Constraints

Barriers

Strategies(Goals)

Tactics(Plans)

Resources

Metrics

Business

Plan

BSC

Strategy Map

Introduction to Strategic Planning16

Do not let the budget drive the plan

Introduction to Strategic Planning17

Don’t get all hung up on the mission and vision statements… get the basics down... This is a good item for pre-work before your strategic planning event.

Introduction to Strategic Planning18

Don’t spend group timeword-smithing, let one person

author, then change.

Introduction to Strategic Planning19

Be sure to keep strategies separate from tactics… don’t

confuse the two.

Introduction to Strategic Planning20

Don’t drop the ball with the measures and metrics… they allow you to monitor success.

Introduction to Strategic Planning21

Keep moving through the process at a decent pace… you

will have a better result… speed helps.

Introduction to Strategic Planning22

Contact Information

• Dr. William T. Cousins• 860-565-8589 (Pratt & Whitney, E. Hartford, CT)

• cousinsw@asme.org

This presentation will be posted on the 2011 LTC Web Site, at

http://www.asmeconferences.org/ltc11/presentations.cfm

Introduction to Strategic Planning23

Background InformationFollows

• VOLT Strategic Plan

• VOLT Strategy Map

Introduction to Strategic Planning24

(Front and back of the VOLT Strategic Plan brochure)

Introduction to Strategic Planning25

(Inside of the VOLT Strategic Plan brochure)

Introduction to Strategic Planning26

1 Expand knowledge of digital technologies

5 Develop and Maintain World-Class Quality

Capability

12 Achieve Financial Balance (supports Enterprise F1)

10 Serve ASME Current and Future Leaders

(supports Enterprise L2)

ForExternal

Stakeholders & Customers

Internal to VOLT

VOLTLearning & Growth

Financial

Global Impact Engineering Workforce Development EnergyASME Strategic Initiatives

ASME will deliver locally relevant engineering resources to advance public safety and quality of lifethroughout the world

ASME will serve as an essential energy technology resource and leading advocate for balanced energy policies

ASME will foster a broader, competent, vibrantand more diverse engineering workforce with improved retention in both the profession and ASME over all career stages

VOLT Strategy Map 1/ 20/ 2010

Vision: ASME will be recognized worldwide as a premier organization for the quality of leadership training orientation provided to its volunteers

Mission: Ensure that ASME volunteers have the training needed to assume leadership positions of ever increasing responsibility in the Society and that the skills gained from such leadership positions, in turn, enhance their professional careers.

2 Develop trainers for internal & external

customers

3 Continue optimization of strategic plan

4 Maintain proactive team

6 Develop Culturally and Globally Sensitive Training

Content

7 Meet Adult Learning Needs

8 Improve Cross-Sector Training

9 Establish Resource Center to House Content

Quality Content Mechanics

11 Develop and Serve External Customers

(supports Enterprise L2)

1 Expand knowledge of digital technologies

5 Develop and Maintain World-Class Quality

Capability

12 Achieve Financial Balance (supports Enterprise F1)

10 Serve ASME Current and Future Leaders

(supports Enterprise L2)

ForExternal

Stakeholders & Customers

Internal to VOLT

VOLTLearning & Growth

Financial

Global Impact Engineering Workforce Development EnergyASME Strategic Initiatives

ASME will deliver locally relevant engineering resources to advance public safety and quality of lifethroughout the world

ASME will serve as an essential energy technology resource and leading advocate for balanced energy policies

ASME will foster a broader, competent, vibrantand more diverse engineering workforce with improved retention in both the profession and ASME over all career stages

VOLT Strategy Map 1/ 20/ 2010

Vision: ASME will be recognized worldwide as a premier organization for the quality of leadership training orientation provided to its volunteers

Mission: Ensure that ASME volunteers have the training needed to assume leadership positions of ever increasing responsibility in the Society and that the skills gained from such leadership positions, in turn, enhance their professional careers.

ForExternal

Stakeholders & Customers

Internal to VOLT

VOLTLearning & Growth

Financial

Global Impact Engineering Workforce Development EnergyASME Strategic Initiatives

ASME will deliver locally relevant engineering resources to advance public safety and quality of lifethroughout the world

ASME will serve as an essential energy technology resource and leading advocate for balanced energy policies

ASME will foster a broader, competent, vibrantand more diverse engineering workforce with improved retention in both the profession and ASME over all career stages

VOLT Strategy Map 1/ 20/ 2010

Vision: ASME will be recognized worldwide as a premier organization for the quality of leadership training orientation provided to its volunteers

Mission: Ensure that ASME volunteers have the training needed to assume leadership positions of ever increasing responsibility in the Society and that the skills gained from such leadership positions, in turn, enhance their professional careers.

2 Develop trainers for internal & external

customers

3 Continue optimization of strategic plan

4 Maintain proactive team

6 Develop Culturally and Globally Sensitive Training

Content

7 Meet Adult Learning Needs

8 Improve Cross-Sector Training

9 Establish Resource Center to House Content

Quality Content Mechanics

11 Develop and Serve External Customers

(supports Enterprise L2)

Introduction to Strategic Planning 27

Introduction to Strategic Planning