Strategic Planning

STRATEGIC PLANNINGManaging Strategically


Prepared by the Texas Workforce Commission

Training and Development Department

Louis LeDoux, Department DirectorRichard Guilbeau, Training Manager

Training and Development Department Curriculum WriterSaundra Kirk

Training and Development Department EditorNancy Baker

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Table of Contents

TRAINING PURPOSE AND OBJECTIVES 1

SECTION ONE - INTRODUCTION 2

Managing Strategically………………………………………………..Compliance…………………………………………………………….Texas Strategic Planning Process……………………………………...Purposes of the Strategic Planning And Budgeting System (SPB) …...

2 3 3 5

SECTION TWO - OVERVIEW 6

What is Strategic Planning?……………………………………………Benefits of Planning……………………………………………………Limitations of Strategic Planning……………………………………...

6 7 8

SECTION THREE - STRATEGIC PLANNING MODELS 9

Basic Strategic Planning……………………………………………….Scenario Planning……………………………………………………...Alignment Planning……………………………………………………Issue Based Planning……………………………………….………….Self-Organizing Planning……………………………………………...Hybrid Planning………………………………………………………..Balanced ScoreCard……………………………………………………Advantages of the BSC………………………………………………..BSC Process……………………………………………………………

91010111112131414

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SECTION FOUR - STRATEGIC PLANNING PROCESSES 15

Planning Guidelines...…………………………………………………. 15Strategic Phases………………………………………………………..Strategic Planning Questions…………………………………………..

1516

Phase One: Analyze……………………………………………………Process Steps for the Analytical Phase……………………………….. Questions for the Analytical Phase…………………………………….

171719

Phase Two: Plan……………………………………………………….Process Steps for the Planning Phase………………………………….Questions for the Planning Phase……………………………………...

202122

SECTION FIVE – IMPLEMENTATION PROCESSES 23

Implementation Guidelines……………………………………………. 24Phase Three: Implement……………………………………………….Process Steps for the Implementation Phase…………………………..Questions for the Implementation Phase………………………………

252527

Action Planning………………………………………………………..Action Planning Process Steps………………………………………...

2828

Performance Management……………………………………………..Performance Management Process Steps……………………………...Performance Management Questions………………………………….

292930

Phase Four: Measure…………………………………………………..Assessment Tools……………………………………………………...Process Steps for the Measurement Phase……………………………..Questions for the Measurement Phase…………………………………

31313132

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SECTION SIX – APPENDIX A-1

Glossary of Terms- Strategic Planning Elements…………………… A-2A-5

Texas Workforce Commission Vision, Mission, and Philosophy…... A-6Web-site Resources…………………………………………………. A-7Analytical Phase Worksheet – Record of Analysis………………….. A-8

A-9Planning Phase Worksheet – Long Range Goals……………………. A-10Balanced ScoreCard Worksheet……………………………………... A-11Implementation Phase: Operational Plan /Sample Form……………………. A-12Implementation Phase: Action Plan /Sample Form)………………………….. A-13Implementation Phase: Performance (Project) Plan /Sample Form……… A-14

Strategic Planning Training and Development

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The purpose of this training is to describe the main steps required to developand begin implementing an effective strategic plan. The criteria,terminology, and definitions in this guide are compatible with that providedby the Governor’s Office of Budget and Planning, the Legislative BudgetBoard, and the State Auditor’s Office.

Strategic planning methods are useful in two major Texas WorkforceNetwork (TWN) applications for:

1. managing - establishing direction and aligning resources to efficientlymanage operations that support your mission or core function

2. complying - defining standards and measuring program effectiveness.

Training Objectives

This training will enable you to:

• understand the purposes and benefits of strategic planning• select a constructive strategic planning method for your work

environment• identify and apply the main components of strategic and operational

planning processes.


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Section One: Introduction

As a leader in the Texas Workforce Network (TWN), you are responsible forsome level of planning and oversight in at least one functional area. In thechain of TWN professionals who provide benefits and services related to theemployment and training needs of Texans, you are accountable for resultsrather than just efforts. Whether you are a leader with a local board, acontractor, or the Texas Workforce Commission (TWC), producing effectiveresults requires careful planning.

Managing StrategicallyA major competency of effective leaders is the skill to see the broadperspective and to transform their long-range view into reality. One of thebest ways to develop this skill is through ongoing experience in strategicplanning. However, management surveys indicate that 85 percent ofexecutives spend less than one hour per month on strategy.

Many Texas Workforce Network leaders have visions and insights aboutwhat it would take to make long-term improvements in their organization’sperformance, processes, or systems. But when the activities of a typical dayinvolve spending a great deal of valuable time “fighting fires” and reactingto problems, crisis management can become a habitual replacement tostrategic management. A “vicious cycle” is then set in place that is difficultto escape. Strategic Planning is an intervention to crisis management.

“Leaders in workforce development must create a culture of performance. Thathas never been more critical than it is now. We must focus on results – a supplyof skilled workers and a world-class knowledge supply chain.

“We need to be in touch with the local employer’s needs and prepare or equipworkers to meet those demands. The stakes are high. The result is globalcompetitiveness, a strong economy, and high quality living for our citizens…”

Dr. David A. SampsonAssistant Secretary of the U.S. Department of Commerce


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Strategic solutions for statutory compliance

Strategic planning as a response to the requirements of the Texas Legislatureis the shared responsibility of the Texas Workforce Commission, its networkof 28 Local Workforce Development Area Boards, and Contractors.

As a state agency, The Texas Workforce Commission has the responsibilityfor developing a system of performance accountability for its local boardsbased on performance measures determined by the U.S. Department ofLabor and the state Legislative Budget Board. Local boards set priorities andstandards, and monitor the performance of their service contractors. Andcontractors must plan processes and systems that allow them to meet theirperformance objectives.

Background: The State of Texas Strategic Planning Process

State of TexasHouse Bill 2009,Regular Session,1991

House Bill 2009 inaugurated the requirements andtime frames for a state wide strategic planningprocess. Senate Bill 1332, 73rd Legislature, RegularSession, 1993 amended the statute to consolidaterequirements and change the minimum requiredplanning range from a six year to a five year cycle.

Strategic Planningand BudgetingSystem (SPB)

The 1991 legislation established the SPB systemwhich bases funding and other decisions on anorganization’s accomplishments rather than on itsactivities. The system promotes a mission/goal-driven management approach that connects funding toresults.

Legislative BudgetBoard (LBB)

The LBB is a legislative committee that hasresponsibility to continuously review state spending.It conducts comprehensive evaluations and reports tothe Legislature on results of state agency programs,and identifies probable costs for implementinglegislation. All state agencies submit their budgetrequests to the LBB.


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State agency performance measures that accomplish the mission of stategovernment must represent the interests of both the Legislature and theGovernor. On this behalf, the Legislative Budget Board (LBB) and theGovernor’s Office of Budget and Planning (GOBP) collaborate to:

• issue instructions for preparing and submitting agency strategic plans• issue statewide vision, mission, philosophy, functional goals, and

benchmarks• negotiate performance criteria with state agencies• assess reported performance data.

The State Auditor’s Office (SAO) acts as staffing agent for LBB and GOBPoversight of the performance-based budgeting system by:

• collecting agency documentation of key measures• performing audits to certify performance results• giving feedback to agencies and the LBB.


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Purposes of theStrategic Planning and Budgeting System (SPB)

The purpose of the Texas Strategic Planning and Budgeting System is to:

• establish statewide direction in key policy or functional areas to moveaway from crisis-driven decision-making

• provide a basis for aligning resources in a rational manner to address thecritical issues facing the state now and in the future

• make state government more responsive to the needs of Texans byplacing greater emphasis on benefits and results rather than just serviceefforts and workload

• bring focused issues to policy-makers for review and debate

• provide a context to link the budget process and other legislativeprocesses with priority issues, and to improve accountability for the useof state resources

• establish a means of coordinating the policy concerns of public officialswith agency efforts

• build interagency, intergovernmental, and public/private/nonprofitpartnerships

• provide a forum for communication between service providers and theconstituents they serve.

Governor’s Center for Management Development“Strategic Planning and Performance Measures”


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Section Two: Overview

What is strategicplanning?

Successful strategic plans are workingdocuments that explain where you are going andpromote the constructive change that will get youthere.

Planning is setting the direction for something.Usually, we start with preferred results and workbackward to identify what will produce thoseresults.

Strategies are methods to achieve goals andobjectives.

Strategic planning allows organizations to makefundamental decisions that guide them to adeveloped vision of the future.

The result of this effort, the strategic plan,serves as the basis for action that directs allresources toward that future. The plan, whichmust be practical and flexible, guides dailydecisions.


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Benefits ofplanning

The benefits of strategic planning are that it:

• provides orderly growth and competitivesurvival

• stimulates the organization to be moreresponsive to the needs of customers

• focuses on results and benefits rather thanservice efforts and workload

• simulates the future• forces the setting of goals and objectives• increases efficiency• applies a systems approach to reviewing

projections and consequences• creates a basis for performance measures and

accountability• provides effective personnel management

because the process establishes relevant andpractical performance benchmarks

• provides a decision making framework• mitigates crisis management and crisis-driven

decision making• anticipates effects of change and influences of

external forces• improves employee morale because of clarity

of focus, direction, communication, andinclusion

• builds a communication network.


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Limitations ofStrategic Planning

Strategic planning can be difficult to accomplishbecause:

• planning requires the commitment andsponsorship of an executive leader

• planning requires an appropriation of time,people, and resources

• planning can be perceived as an inflexibleprocess

• the organization may experience internalresistance to the process or strategy

• the process can become too focused onmeasurements and compliance

• people who do the work may not be includedin the planning process

• unexpected events or current crises preemptplanning time and resources.


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Section Three: Strategic Planning Models

There is no one perfect strategic planning model for every organization.Each organization selects, modifies, or integrates a model to develop aprocess that compliments its needs and outlook.

The Balanced Scorecard model is highlighted because of its popularity as aperformance improvement tool and because the Texas Legislature hasmandated pilots in several state agencies. Among those agencies thatestablished organization-wide scorecards, there is enthusiastic approval ofthe processes and outcomes of this model.

The following models demonstrate a range of alternatives. With theexception of the fifth model, the traditional strategic planning modelspresented below are generally considered “linear”. They are general-to-specific or cause-and-effect in nature. The processes often begin byconducting some form of assessment of the external and internalenvironments, performing strategic analysis, prioritizing issues, and thendeveloping strategies to address specific issues.

1. Basic StrategicPlanning

Use the following straightforward process steps forsmall, busy organizations:

• Identify your purpose.• Select goals.• Identify specific implementation strategies.• Identify action plans to implement each

strategy.• Monitor and update the plan.


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2. ScenarioPlanning

You may use this approach in conjunction withother models to ensure that you apply strategicthinking to critical issues and goals.

• Identify several important external forces andproject the influences they might have on theorganization.

• Discuss three different future scenarios for eachchange from an external force, and review theworst case scenarios.

• Suggest potential strategies to respond to thechanges of each scenario.

• Detect common considerations in strategies.• Select the most likely external changes and

identify the most responsive strategies.

3. AlignmentPlanning

You may use this model for organizations thatneed to fine tune their strategies or that experienceissues around internal efficiencies. The purpose isto align the organization’s Mission and itsresources for more effective operations. Planninggroups must accomplish several tasks:

• Outline the mission, programs, resources, andneeded support.

• Identify what is working well and what needsadjustment.

• Identify how to make adjustments.• Include the adjustments in the strategic plan.


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4. Issue BasedPlanning

Larger, more experienced organizations use thiscomprehensive and effective planning model.Processes include:

• conducting an external/internal assessment• designing major strategies to address issues and

goals• developing or updating vision, mission, values• establishing action plans• recording assessment issues, goals, and

strategies, mission, vision, and action plans in aStrategic Plan document

• developing a yearly operating plan document• developing and authorizing a year-one budget• conducting the year-one operations• monitoring/reviewing/evaluating/updating the

Strategic Plan document.

5. Self-OrganizingPlanning

Rather than the linear processes of the othermodels, self-organizing planning evolves througha more natural unfolding process. It requirescontinual reference to common values, and sharedreflection around the system’s current processes.This process uses dialogues, exploratory, andstoryboarding techniques. General steps include:

• clarifying and articulating the organization’scultural values

• articulating the group’s vision• holding quarterly dialogues about what the

organization requires to arrive at the vision anddecide what the group is going to do

• focusing on learning rather than on linearmethods

• cultivating patience for these ongoing processes• deciding how to portray the strategic plan to

stakeholders.


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6. “Hybrid”IntegratedPlanning

Combining processes from two or more modelsproduces a hybrid effect. One example is theBalanced Score Card model, which integrateselements of issues-based and alignment planningprocesses.


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Balanced ScorecardPerformance Management Model

Robert Kaplan of the Harvard Business School, and business consultant,David Norton, developed the Balanced Scorecard strategic planning modelin 1992. More than half of the Fortune 500 corporations in the US and agrowing number of governmental agencies at all levels use this model.

During the 77th Legislative Session of 2001, a Rider to the GeneralAppropriations Act required Texas Education Agency (TEA), Department ofPublic Safety (DPS), and Parks and Wildlife (TPWD) to develop BalancedScorecards (BSC) and report results during the 2003 session. Each of thesestate agencies implemented a pilot. Other agencies, including the StateAuditor’s Office voluntarily implemented agency-wide BSC strategicplanning and management systems.

Kaplan and Norton assert that, “What you measure is what you get”.Because the public sector does not generate profits, these organizations mustapply strategic principles to a different bottom line. That bottom line formost government organizations relates to achieving their mission within thecontext of the satisfaction of their customers, stakeholders, and employees.

The Balanced Scorecard model directs the organization’s strategic focus to“perspectives” that frame its critical success factors. Strategic managementtranslates performance measures and targets into action initiatives.

The BSC model facilitates developing performance improvement objectives,measures, and targets through a framework of five perspectives:

1. Mission2. Customer focus3. Internal processes4. Learning and knowledge5. Financial.


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Advantages of theBSC

Implementing a BSC yields numerousadvantages. It:

• emphasizes those processes that are mostcrucial for obtaining high performance

• drives organizational change by focusing onthings that will have the biggest impact

• links the improvement of internal businessprocesses to specific external customer needs

• aligns the performance objectives of all peoplein the organization

• organizes the allocation of resources• focuses on performance measures that turn

strategy into action• allows management to clarify priorities• produces a clear path to the future vision.

BSC Process Process steps for the BSC are:

• define the mission or core function• conduct an environmental scan• conduct an internal/external assessment• create a vision• identify long-range goals• identify objectives• identify performance measures• identify performance targets• develop action plans• implement• assess• modify• report.


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Section Four: Strategic Planning Processes

A Strategic Plan is a detailed scheme or method worked out as preparationfor the accomplishment of important business goals or objectives.

PlanningGuidelines

To lay the foundation for a successful strategicplanning process:

• Establish a planning team.• Discuss the constructive purposes of the

planning model you will adapt.• Make sure everyone understands the process

and expected outcomes.• Allow sufficient time to go through the process.• Discuss the agency Mission and your

contribution to it.• Build a foundation of information to lead to

specific outcomes and outputs.

The strategic planning process consists of a series of formative steps thatbegin with the contrast between present reality and a vision of the future. Itspracticality and applicability determine the effectiveness of a Strategic Plan.

Strategic phases Strategic steps from vision to outcomes are:

• Phase One: Analyze

• Phase Two: Plan

• Phase Three: Implement

• Phase Four: Measure


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Strategic Planning Questions

PlanningQuestions

An effective strategic process provokes answersto the following questions:

• What is our purpose for existing?• Who are our customers and stakeholders?• What are our strengths and weaknesses?• What trends affect our work environment?• What factors are critical to our success?• What fundamental policy decisions must we

make?• What values and principles must guide our

decisions?• What actions are required to implement our

decisions?• What are our priorities; what resources will

we need?• What will be the impact on our target groups

or customers?• How will we know that it is worthwhile?• How will we analyze and explain that we are

on or off track?• How will we make necessary corrections

during implementation?


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PHASE ONE: ANALYZE

The first phase analytical activities ground your plan in the realities of thecurrent situation so you can apply practical criteria to the goals andobjectives of the Strategic Plan. Think in terms of what it takes to do thework.

Process steps for the Analytical Phase

1. Define the corefunctions

Your statement of core function is a succinctexpression of the reason your unit exists. Linkyour core function to your organizationalmission. This statement will:

• identify your customers and theirexpectations

• clarify your responsibility for providingmeaningful products or services.

2. Conduct anenvironmentalscan and SWOTAnalysis

Ground the plan by examining your currentenvironment. Consider economic, political,social, and technological trends that influenceyour work. Identify Strengths and Weaknesses/Opportunities and Threats.

• Strengths and Opportunities are positivefactors that suggest competitive advantages,support current strategies and improvedperformance.

• Weaknesses and Threats impedeperformance and suggest risks in the currentstrategies.

• Strengths and Weaknesses indicate internalconditions.

• Opportunities and Threats indicate externalconditions.


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3. Create arealistic vision

A realistic vision should accomplish improvementsin efficiency or effectiveness to support your(organizational) mission or (unit) core function.

The vision is:

• an inspiring view of your desired future state• the basis for your goals and objectives.

4. Develop avisionstatement

This description of the vision you want toachieve is a concise statement of what theorganization wants to be at the end of theplanning cycle.

The vision statement:

• becomes your benchmark or blueprint forthe future

• extends the range of your performancepotential to improve or be efficient

• advances the mission with goals emergingfrom the vision.


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Questions for the Analytical Phase

AnalyticalQuestions:

Answers to these questions support the creation of avision.

• What is our purpose for existing?• Who are our customers and stakeholders?• What are our positive factors?• What are our negative factors?• What trends affect our work environment?• What factors are critical to our success?• How would we look and be at our best?


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PHASE TWO: PLAN

The strategic plan presents the opportunity to focus on solving problems,increasing productivity, efficiency, and effectiveness in daily operations. Astrategic plan is your essential scheme.

Develop the StrategicPlan

Progress through an orderly sequence thatallows the team to:

• clarify• document• communicate• implement priorities.

Determine who will facilitate the process. TheTWC Training and Development Departmentoffers consulting and facilitation services.However, anyone on the local team whounderstands the concepts and processes canalso lead the process. It is important to haveroundtable discussions for getting input andconsensus about critical issues and possibleimprovements.


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Process Steps for the Planning Phase

1. Identify motivatinglong-range goals

To reflect priorities established in your vision:

• Test goals against the reality of yourbusiness environment.

• Determine whether it is possible to achieveyour goals within a reasonable timeframe.

• Decide whether they are worth pursuingand whether they give you what you reallywant.

2. Identifyperformance(tactical)objectives

Objectives are:

• specific steps to the achievement of yourlong-range goals

• intentions that convert to performanceactivities.

3. Identifyperformancemeasures andtargets for eachobjective

Performance measures and targets are tools to:

• benchmark your progress toward yourgoals

• assess the effectiveness of performance.


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Questions for the Planning Phase

Plan DevelopmentQuestions

• What fundamental policy decisions mustwe make?

• What values and principles must guide ourdecisions?

• What actions are required to implementthem?

• What are our priorities; what resources willwe need?

• What will be the impact on our targetgroups or customers?

• How will we know that it is worthwhile?


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Section Five: Implementation Processes

Implementation gives credibility to planning because this phase is thecrosswalk of strategic plans into daily operations.

A successful implementation mitigates crisis management by unifying dailyoperations with strategic processes. Strategy implementation promotesefficiency. Leaders cultivate a broader perspective and become moreexperienced by setting and managing the long-range view through actionplanning.

Leaders who direct implementation must create or adapt processes and toolsthat support their efforts to set standards and expectations for performance,and manage and track progress.

Implementation involves three essential components:

1. developing an operational plan (executive management tool)2. developing performance action plans (management tool)3. managing performance (supervision and project leadership tool).


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ImplementationGuidelines

During the implementation phase:

• Communicate planning results.• Determine who needs to be involved.• Make specific assignments.• Convert objectives into performance activities.• Formulate a comprehensive operational plan to

coordinate all performance activities.• Define the scope of individual projects.• Use project management tracking tools to

detail activities of all critical projects.• Conduct regular project reviews and evaluate

progress.• Integrate significant project tasks into

management tools such as the IndividualDevelopment Plan (IDP) and the PerformancePlanning and Review (PPR).

• Make changes and corrections necessary toachieve targets.

• Extend and revise action plans for the nextphase.


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PHASE THREE: IMPLEMENT

Operational planning sets the implementation phase of the strategic plan inmotion. This is the process through which we strategically manage the gapbetween the present and the vision of the future.

Process Steps for the Implementation Phase

1. Develop anOperational Plan

The Operational Plan coordinates the overallscope of the implementation. It is the executivemanagement plan for translating performancemeasures and targets from the strategic planinto performance initiatives. It is also theapproved charter for authorizing initiatives andappropriating resources.

Use operational planning tools to coordinate allactivities emerging from the Strategic Planincluding:

• operations (ongoing efforts or activities thatare built into the daily routine to generaterepetitive products or services)

• projects (temporary and unique initiativeswith definite perimeters)

• programs (service delivery systems).


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2. Createperformanceaction plans

Performance (action) plans define and clarifydetails that link strategic plan objectives,performance measures, and targets to specifictasks and performance milestones.

Action plans formulate:

• implementation activities into performanceprojects, ongoing operations, and programs

• assignments and responsibilities• communication tools and methods• resources• expected deliverables, timelines, and

completion deadlines.

3. Manageperformance

Effective communication systems are essentialto implementation. To maximize progresstoward achieving goals, communicatestandards, expectations, and guidelines forperformance. Monitor and document progress.

Prove results and ensure continuous progressby:

• demonstrating supportive managementbehaviors

• conducting ongoing appraisals of movementtoward projected goals and outcomes

• emphasizing feedback• making necessary modifications in direction• creating reports.


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Questions for the Implementation Phase

ImplementationQuestions

• What is the overall scope of the work that weneed to accomplish?

• What are our priorities?• We will achieve our objectives as the result of

what actions?• What is the starting point and sequence for

our actions?• What projects, operations, or programs must

we design?• What activities and processes must we

integrate into the daily operations?• What resources will we need?• What will be the impact of these actions on

our customers or target group?• What will be the impact of these actions on

our internal organization?• Who are the sponsors and stakeholders whose

interests are affected?


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Action planning Many performance action plans can flow out ofthe operational plan. These plans advance thelevels of detail and specific steps that arerequired to implement the strategic plan. Actionplans:

• Link operational initiatives to performanceactivities such as projects or ongoingoperations.

• Preplan each unique activity.• Focus on what work it will take to accomplish

that performance activity.• Organize the work into a series of progressive

steps or tasks that are logically related.• Define completion dates for the delivery of

tangible outcomes, estimate timerequirements and material resources, andidentify necessary team members.

• Organize tasks into performance plans thatlink the objective with individual or groupresponsibilities for outcomes.

Action planningprocess steps

To create an action plan:

1. Break initiatives into manageable parts.2. Sequence interdependent activities.3. Coordinate human and material resources.4. Create schedules for completion for periods

of up to a year.


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PerformanceManagement

Communicate performance requirements to allstaff who do the work. Create reportingprocesses and systems. When necessaryprovide coaching, training, or performancefeedback to support effective individual andgroup efforts. Use project management tools.

To manage performance, track and manage allperformance activities including:

• temporary projects, ongoing operations, orprograms that create specific outcomes oroutputs

• specific related tasks• staff assignments and responsibilities• resources• expected deliverables• timelines and completion deadlines.

Performancemanagement processsteps

To manage performance:

1. Lay out specific initiatives to implementobjectives.

2. Sequence activities for periods of up to ayear.

3. Coordinate details such as tasks, staffassignments, and material resources.

4. Create schedules for completion5. Support performance efforts with necessary

material resources and skills training.


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Performance Management Questions

PerformanceManagementQuestions

• What will be new or different as a result ofthe initiative?

• What tangible, measurable, verifiableoutcome will be delivered?

• Are there project phases of relatedactivities?

• Are there milestones or significant eventsor completions within the project?

• Who are the sponsors and stakeholderswhose interests are affected by it?

• Which individuals will be activelyinvolved?

• Which equipment and materials are neededto execute the project?

• What are the specific timeframes andcompletion end dates?


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PHASE FOUR: MEASURE

Measuring results is essential to the achievement of long-range goals. Yourassessment data will reflect the direct effects of each strategy on yourorganization and on your customers. Continuous assessment of the impact ofactions and strategic operations is critical to the success of plans becausemonitoring keeps plans on track. The process requires systems to measureresults, monitor progress, and compile management information.

Assessment Tools A variety of assessment tools and software maytrack:

• processes related to performance of services orproducts

• internal and external customer satisfaction andfeedback

• employee performance• employee satisfaction• quality matrixes for error rates, efficiency, and

effectiveness.

Process Steps for the Measurement Phase

Process steps To measure results:

1. Decide which aspects of your projects wouldbenefit from comparative or benchmarkinformation and data.

2. Determine the appropriate quantity and type ofdata to collect.

3. Select methods to assess and report progress.


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Questions for the Measurement Phase

Project AssessmentQuestions:

• How will we measure results against ourtargets?

• How will we monitor and documentprogress?

• What will the impact be on our target groupsor customers?

• How will we know that it is worthwhile?• How will we analyze and explain that we are

on or off track?• How will we make necessary corrections

during implementation?

Section Six: Appendix


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Glossary of TermsStrategic Planning Elements

Action PlansThe Action Plan is a management tool for structuring the sustained effortsnecessary to implement goals and objectives. They organize the actions thatresult in the transformation of vision into outcomes and outputs.

Core FunctionsThe core function is a unit’s reason for existence similar to how a missiondefines the organization’s purpose. Core functions align divisions,departments, and units with the mission.

Critical Success FactorsCSF describe organizational capabilities or competencies that must be inplace for the organization to achieve (be in) the vision.

DeliverableA deliverable is any measurable, tangible, verifiable outcome, result, or itemthe organization must produce to complete a project or part of a project.Deliverables are usually subject to approval by the project sponsor orcustomer.

Environmental Scan An environmental scan permits us to examine external and internal trendsand important factors that influence our work. Relevant factors includeeconomic, political, social, and technological trends. Analysis of trends andmanagement issues reveal important priorities affecting the direction ofstrategic improvements.

GoalsGoals are high-level general results toward which the organization directs itsefforts and resources. Goals signify the scope and boundaries of each keyarea. They define intentions relative to the primary issues represented in thevision and mission.


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MissionThe mission is a succinct, comprehensive statement of the organization’spurpose for existing, or a statement of its enabling legal statue. Missionstatements identify customers and stakeholders and reinforce theorganization’s responsibility.

ObjectivesObjectives are concrete steps toward achieving goals. Objectives aremilestones that drive the organization toward the vision. They mayrepresent improvements in performing the core functions. They aremeasurable results of actions that answer the question: “We will base oursuccess on….” Objectives identify what you can do to define your successthat will be faster, better, or cheaper. Objectives identify priority initiativesthat mobilize the strategy. A well-worded objective is Specific, Measurable,Attainable/Achievable, Realistic, and Time bound (SMART).

Tactical ObjectivesTactical Objectives are action-oriented objectives.

Operational PlanAn operational plan is the formal document that coordinates the overallscope for implementing the strategic plan. It is the tool of executivemanagement. It translates performance and target measures intoperformance activities for daily operations. The operational plan serves as acharter for authorizing initiatives and appropriating resources.

Performance MeasuresPerformance measures, or indicators, are measurable characteristics ofproducts, services, processes, and operations that can be used to track andimprove performance. These indicators represent the most significantfactors for achieving high levels of performance. Measuring performanceensures progress toward goals. If you do not measure results, you cannotdistinguish success from failure. Performance measures answer the question:“What must we measure to demonstrate our success?”

Efficiency Measures are indicators of cost or productivity associatedwith an action. Efficiency measures generally justify unit costs ortime.


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Explanatory Measures place factors in context by explaining theirrelevance, reliability, or practicality in relation to other contributingfactors. Outcome Measures are results that indicate the actual impact ofplanned actions. They are tools to assess the effectiveness ofperformance and the benefit derived from it. Outcome measurestypically quantify a percentage, rate, or ratio of effect upon acondition or problem.Output Measures are indicators that count workload and workproducts or services. Output measures quantify the actual numbers ofpeople receiving services, or the amount of goods produced.

Performance PlansThe performance plan is the tool of the project team leader. It is a formaldocument used to guide both the execution and control of projects, ongoingoperations, or programs. This tool organizes the day to day implementationtasks. It tracks progress on specific deliverables. The performance plan is atype of action plan.

ScopeThe scope defines what is within the boundaries of a project and what isoutside those boundaries. The purpose of defining scope is to clearlydescribe and gain agreement on the logical boundaries of theimplementation.

Strategic PlanThe strategic plan is the written documentation of the planning process, itsmethods, and results. This record of the long-range plan containsperformance measures and targets that identify projected achievements thatunfold from three to five years. It captures the comprehensiveness, validity,and relevance of planned objectives. We implement the strategy to reach theobjective.

Strategic Planning ProcessStrategic planning is a long-term, future-oriented process of assessment, goalsetting, and decision-making that maps a path between the present and avision of the future. It is a structured effort to produce actions that shape andguide what an organization is, what it does, why and how it does it. Theprocess applies strategies (methods) to achieve goals and objectives.


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SWOT AnalysisReview of strengths, weaknesses, opportunities, and threats affecting themission, core function, goals or objectives. SWOT items correlate to theorganization’s position in the business environment. Discussion and SWOTanalysis yields necessary facts to consider when developing a vision. Thepositive factors (strengths and opportunities) suggest competitive advantage,support current strategies and improved performance. The negative factors(weaknesses and threats) impede performance and suggest risks in thecurrent strategies. Strengths and weaknesses indicate internal conditions;Opportunities and threats indicate external conditions.

TargetsTargets are indicators of success as well as specific benchmarks, numbers, orthresholds of accomplishment. They determine effectiveness by measuringtangible and specific performance goals against actual achievements or otherstandards. Targets drive the action plan.

VisionVision is an inspiring view of the preferred future. It is a forecast of thefuture based on leader intuition and judgement; it becomes the foundationfor a system of strategic changes.


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Texas Workforce CommissionVision, Mission, and Philosophy

VisionTexans will view local workforce development boards, the Texas WorkforceCommission and their partners as a quality supplier of workforce solutions.

MissionTo promote and support a workforce system that offers employers,individuals and communities the opportunity to achieve and sustaineconomic prosperity.

PhilosophyOur work is guided by the following core beliefs:

We believe that local communities are in the best position to addresslocal workforce needs.

We believe that the workforce system of Texas must be employer-driven. We believe that individuals must assume personal responsibility for

making decisions about their lives and be accountable for their actions. We believe in collaboration and partnership. We believe in conducting business in accordance with the highest

standards of ethics, accountability and efficiency.

Our success will be based on the following organizational values: We are committed to excellence in everything we deliver or guide. We are committed to making the Texas Workforce Commission an

exemplary employer. We are committed to treating people with respect and dignity and in a

fair and equitable manner. We are committed to becoming an entrepreneurial, flexible and learning

organization. We are committed to open and honest internal and external

communication.


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Web-site Resourcesfor

Strategic Planning and Performance Measurement

Legislative Budget Board (instructions for agency strategic plans and otherresources)http:/www.lbb.state.tx.us

Governor’s Officehttp:/www.governor.state.tx.us

American Society for Public Administration’s Center for Accountability andPerformancehttp:/www.theroundtable.org

American Society for Public Administration, CenTex Chapterhttp:/www.main.org/aspa

Council of State Governments (research reports, benchmarking, awards, etc.)http:/www.csg.org

State Auditor’s Officehttp://www.sao.state.tx.us

University of Texas at Austin LBJ School of Public Affairs – ProfessionalDevelopmenthttp://www.utexas.edu/lbj/profdev

http://www.sao.state.tx.us/


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Analytical Phase Worksheet - Record of Analysis

Core Function

________________________________________________________________________________________________________________________________________________________________________________________________________________________

Positive Factors Negative FactorsStrengths

____________________________________________________________________________________________________________________________________________________________

Weaknesses

____________________________________________________________________________________________________________________________________________________________

Opportunities

____________________________________________________________________________________________________________________________________________________________

Threats

____________________________________________________________________________________________________________________________________________________________

Environmental TrendsEconomic

Political

Social


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Technological

Vision

______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________


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Planning Phase Worksheet – Long Range Goals

Motivating Goals_______________________________________________________________________________________________________________________________________________________________________________

_______________________________________________________________________________________________________________________________________________________________________________

_______________________________________________________________________________________________________________________________________________________________________________

_______________________________________________________________________________________________________________________________________________________________________________


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Balanced ScoreCard WorksheetPlanning Phase – Performance Objectives

Perspective/ Tactic Objectives Measures TargetsCore Function

Customer Focus

Internal Processes

Learning & Knowledge

Financial

Strategic Planning Training and DevelopmentMayMay

May 2005 Sample Form Page A-12

Implementation Phase: Operational PlanExecutive Management’s Overall Scope

Overall Time Frame: ___________________________

Strategic Objective Major PerformanceInitiatives

Responsible Manager Resources DeliverablesOutcomes/Outputs



Implementation Phase: Action PlanManager’s Tool

Description of Strategic Objective____________________________________________________________________________________________________________________________

Measures:1. ________________________________

________________________________________________________________

2. ________________________________________________________________________________________________

3. ________________________________________________________________________________________________

Performance ActivitiesProjects/Operations/

Programs

Project Leaders Resources Status Timeframe(Start Date/End Date)

Strategic Planning Training and DevelopmentMay


Implementation Phase: Performance (Project) PlanProject Leaders’ Tool

Team Leader _______________________ Overall Time Frame ________________ Due Date _________

Performance ActivityProject/Operations/Program)

Deliverables (Tangible Outcomes or Outputs) Strategic Plan Objective (Link for Impact )

Tasks Responsible Staff Progress Status Issues DateFinished

1.

2.

3.

4.

5.

6.

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