06/18/1996 - Special
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Agenda: 6-18-96
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City Commission
Special Meeting
6-18-96
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AGENDA
CITY OF CLEARWATER STRATEGIC PLANNING
SESSION #1
9:00 - 9: 15 Opening Remarks
9: 15 - 9:30 Introduction of facilitator and purpose of today's meeting.
9:30 - 10:00 Educational presentation on Applied Strategic Planning
10:00 - 10:30 Update on past work that was done.
10:30 -10:45 BREAK
10:45 - 11 :30 Explanation of Activity 1. Introduction of participants in relation to
Applied Strategic Planning process and individual expectations about
what this is all about and what they hope to accomplish.
Activity 1. Use interview questions - give out to the group and ask them
to complete and then we will discuss
11 :30 - 12: 15 Explanation of Activity 2 and why we are doing it
Activity 2. Group strengths, group weaknesses, individual strengths,
defined role of this group
Debrief and discussion on Activity 2
12:15 - 1 :00 Planning - Do we continue? Who should be on the planning team? How
much time will be committed to this process? When do we start and
when do we hope to complete it for this year? When will we begin for
next year (Ideal time frame for strategic planning in relation to budget
process and setting departmental goals?) Willingness to participate in
People Mapping Training (1 day session) prior to beginning this process?
i2-.a.. (c.9 to I' [f J '7 (p
S~tAr t>~~
Outputs Checklist
Date
Completed
Notes
for Next Year
Use additional paper
as necessary
Planning to Plan
1. Identification of planning team
membeis and their roles
2. Clearance of contract, individual
commitment, planning schedule,
locations
3. Stakeholders' considerations
clearly identified and involvement
defined
4. Awareness of competitive environ-
ment and preferred planning
horizon
5. Awareness of the Applied
Strategic Planning model/process
6. Consideration of factors that
support successful strategic
planning
7. Determination of organizational
interventions to enhance planning
. ~ffort
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Values Scan
1. Comparison of individual values
2. Agreement on shared organiza-
tional values
3. Statement of organizational values
4. Understanding of the
organization's culture
Mission Formulation
1. Identification of organization's
primary product, service, function
2. Identification of organization's
target market or client base
410
Applied Strategic Planning: The Consultant's Kit
Date
Completed
Notes
for Next Year
Use additional paper
as necessary
3. Identification of organization's
primary technique for providing
product, service, or function to
the target market or client base
4. Agreed-on distinctive competence
or competencies
5. Agreed-on statement of organiza-
tion's mission
6. Identification of organization's
reasons for existence
Strategic Business Modeling
1. Identification of team's orienta-
tion toward risk and creativity
2. Identification of organization's
preferred approach to competition
3. Identification of critical success
indicators (CSls) for the
organization
4. Identification of major lines of
business (LOBs) or program areas
5. Determination of performance
targets for the organization
within the planning horizon,
applying the CSls
6. Identification of culture
required for success
)
Performance Audit
1. Determination of how the
Performance Audit will be
conducted in terms of types.
responsibilities, and schedules
2. Identification of organizational
strengths and weaknesses
(compared with those of direct
competitors) to be considered in
validating the strategic business
model
Conclusions ami Hecljcling Considerations
411
Date
Completed
Notes
for Next Year
Use additional paper
as necessary
3. Identification of opportunities
and threats within the environment
to be considered in validating
the strategic business model
4. Measurement of current perfor-
mance of organization (compared
with performance targets),
establishing a performance gap
Gap Analysis
1. Identification of gaps between
current performance and desired
performance defined in the
strategic business model
2. Development of strategies to
bridge each gap
Integrating Action Plans
1. Consideration of an appropriate
organizational structure to support
the strategic direction
2. Identification of functions that
must submit supporting plans
3. Collection, review, and integration
of functional plans by functional
and line managers
4. Collection, modification, and
acceptance of budgets consistent
with functional plans
Contingency Planning
1. Identification of most important
and probable internal and
external vulnerabilities of and
opportunities for the organization
2. Identification of trigger points
at which to initiate action on
each contingency, reasons for
existence
412
Applied Si1'ategic PZall71ing: The Consultant's Kit
Date
Completed
Notes
for Next Year
Use additional paper
as necessary
)
3. Agreement on actions to be
taken for each trigger point
Implementation
1. Creation of action plan for
communicating and reinforcing
the strategic plan with all
stakeholders
2. Identification of modifications
needed to management-control
systems to support the strategic
plan
3. Identification of modifications
needed to motivation and reward
systems to support the strategic
plan
4. Identification of modifications
needed to information systems to
support the strategic plan
5. Identification of ongoing training
and tools needed to provide em-
ployees with the ability to manage
strategically
)
Conclusions and Recycling Considerations
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City of Clearwater
Principles of Operation
Our primary responsibility is to the community of Clearwater.
We will provide a fiscally responsible, stable government
committed to minimum regulation as well as innovation and creativity in service delivery.
We will be accountable, responsive and accessible as an organization.
We are committed to providing high quality services in a timely, effident and economical manner.
We will reduce the barriers to services and information.
We will work in partnership with all i~ our community to build a city which is safe,
economically sound and physically attractive and which provides the opportunities
and amenities conducive to a high quality of Hfe.
We will encourage community participation in our activities.
We recognize the mutual responsibility of government and citizens
for the quality ofHfe in our community.
We will provide the opportunity and assistance required to enable individuals and groups
to become the actual doers in meeting community needs.
We recognize and respect the dedication, professionalism and commitment
of our employees and take pride in their accomplishments.
We are committed to creating an environment which encourages employees
at all levels to respond constnlctively, creatively and practically to community needs.
We recognize the value of taking calculated risks and will encourage it by allowing employees
to learn from misL1kes without fear of unreasonable consequences.
We are committed to ongoing employee training and development to maintain
the high level of competence necessary for quality governance and services.
We affirm the dignity and worth of public service.
We acknowledge our responsibility to be stewards deserving the.
public trust, to be fiscally responsible in our d~tily decisions,
to recognize and develop the potential within each person and to be enthusiastic partners
in providing quality service to our community.
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DEFINITIONS AND CONCEPTS
Planning is the process of establishing objectives and choosing the most suitable
means for achieving these objectives prior to taking action.
Tactical Planning and Operational Planning both relate to how to get the job done.
They are concerned with the setting of specific, measurable objectives and milestones
to be achieved by division, departments, work groups, and individuals within the
organization.
Strategic planning is the process by which the guiding members of an organization
envision its future and develop the necessary procedures and operations to achieve
that future. It includes tactical and operational planning, but in the context of
organization-wide action plans that advance the achievement of the overall strategic
plan.
Envisioning is more than an attempt to anticipate the future and prepare accordingly.
It involves a belief that aspects of the future can be influenced and changed by what
we do now.
Six critical factors in understanding the concept of strategic planning:
1. Strategy is a coherent , unifying, and integrative pattern of decisions. Strategy
development is conscious, explicit, and proactive.
2. Strategy is a means of establishing an organization's purpose in terms of its long-
term o ajectives , action plans, and allocation of resources (The allocation of
resources is perhaps the true acid test of the organization's strategic plan).
3. Strategy is a definition of an organization's competitive domain: what business the
organization really is in.
4. Strategy is a response to internal strengths and weaknesses and to extemal
opportunities and threats.
5. Strategy becomes a logical system for differentiating executive and managerial
tasks and roles at corporate, business, and functional levels, so that structure
follows function.
6. Strategy is a way of defining the economic and non-economic contribution the
organization will make to its stakeholders.
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FOUR APPROACHES TO PLANNING TYPICALLY USED BY ORGANIZATIONS
1. Reactive. Reactive planning is an attempt to return things to the way they were.
Reactive planners find the past preferable to the present and the future. They are
Wo" Ie..
nostalgic and romanticize the past. They week to undo changes that have created
the present; and they fear the future, which they attempt to prevent from
happening.
2. Inactive. Inactive planning represents an attempt to preserve the present. Inactive
planners find the present preferable to the past and the future. They may not
believe that the present is the best of all times, but they do believe that it is as good
as can be expected and that any change is likely to be for the worse. Therefore,
they seek to prevent change.
3. Preactive. Preactive planning involves an attempt to predict the future and to plan
for that predicted future. Preactive planners believe that the future will be better
than the present and that planning for that future will accelerate its arrival. They
view planning as reading the future. They are especially interested in reading the
future of technology, which they regard as the principal vehicle of change, so that
they can position the organization to take advantage of changes.
4. Proactive. Proactive planning involves designing a desired future and inventing the
ways to achieve that future. Proactive planners reject all three of the other
approaches, insisting instead that the organization can play a role in creating its
own future. Although the future is the preferred state, it is one that the planners
take an active role in shaping rather than one that simply should be prepared for.
It is important that an organization recognize its typical approach(es) to planning;
understand the underlying assumptions about the past, present, and future that its
typical approach(es) represent; and be aware of what the impact of its typical
approach(es) has been.
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Assessin2 Our Readiness for Stratel:ic Plannin2
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1. Financial Resources
2. Complexity of Organization
3. History - *
4. Rate of Growth
5. Management - Development Skills
6. Communication Systems - *
7. Rewards for "down-board" Thinking - *
8. Information on Organization Functioning
9. Information on Environment
10. Culture - *
11. Commitment of Time
12. Organizational Interrelationships
13. Commitment of CEO/Commission
14. Willingness and Capacity to take Risks - *
15. Creativity of Managers
16. Flexibility
17. Interpersonal Skills
18. Desirability
* - areas we recognized as potential problems
Environmental Monitorine
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Five Year Ti me
1. Demographics
2. Economy
3. Labor "Education" Market
4. Regulations (un-re)
5. Technology (utilities~) - entire spectrum
6. Competition of Services - trends of cities
Strateeic Planninl: Stakeholders
1. Planning Team
2. Employees (1600+, professional staff, department directors)
3. Taxpayers
4. Citizens
5. Visitors
6. Business People
7. Public
8. School System
9. Health Care
10. Government Agencies
11. Next Generation
12. Vendors
13. Customer
14. Grantors
15. Regulators
16. Lobbyist
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STAKEHOLDER VALUES
February 0, 1995
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A. Taxpayersl Cit izens/Pub lie/ Customers
1. Trust
2. Honesty
3. Services - good/adequate/prompt
4. Responsiveness
5. Cooperation
6. Communication
7. Results - bottom line
B. Govermnent Agencies/Grantors/Regulators
1. Compliance
2. Cooperation
3. Cost
4. Support
5. Public Perception
6. Power
C. Business People/Vendors
1. Low Cost
2. Quality of Service (life cycle)
3. Simplicity
4. Protection
5. Quick Results
6. Technology
D. Visitors
1. Environment
2. Safe
3. Clean
4. Entertaining
5. Good Image
6. Getting Around
7. Information
E. Next Generation
1. Safety (internal/external)
2. Family Values
3. Relationship with "neighbors"
4. Relevant Curriculum
5. Nutrition- - (lunch program)
6. Activities
F. Health Care
1. Skilled Work Force/Wages
2. Expansion Capability/Zoning
3. Safety
4. Accessible
5. EMS
6. Recruit Professionals
7. Con fi den tiali ty
G. Media
1. Honesty
2. Trust
3. Accuracy
4. Willingness to Listen
5. Fairness
6. Global View
7. Openness
8. Pro-active
9. Readership
10. Power/Influence I
11. Editor Bias I
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12. "Sound Bite" !
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H. Religious Community I
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1. Ethics t
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2. Morals
3. Honesty
4. Trust
5. Values
6. Services
7. Safety
8. Land Use
9. Tax Values
I. Employees
'. 1. Helping Others
2. Security - (stable environment)
3. Image
4. Respect
5. Paycheck
6. Time Off/Work Hours
7. Jobs
8. Communication
9. Cooperative Environment
10. Sustained Productivity
11. Sustained Accountability
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Strategic Planning Stakeholder
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Employees
Department Directors
Professional staff
General Employees
Taxpayers
Citizens
Visitors
Business People
Public
School System Central Administration and Principals
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Health Care - Hospital Boards, Administrators
Government Agencies:
Mayors, Commissioners and City Managers from
surrounding jurisdictions
Board of County Commissioners and County Administrator
Elected Board Members
Appointed Agency Directors
Next Generation -
Students
PT A at each School
Vendors
Customer
Grantors
Regulators
Lobbyist
Media - Editors and reporters
gTY OF CLEAR\VATER STRATEGIC PLANNING - 1995
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In order to assist us in our planning for the future, would you take a few
minutes to provide answers to the following questions?
1. What do you expect Clearwater to do for you (in order of priority)?
2. What should we do more of or less of?
3. What are the things we do best?
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What are the things we do not do so well?
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What do you use to judge our performance?
6. How does our performance compare with those places where you
have lived or done business?
7. What do you consider unique about us?
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Strategic Planning Questionnaire
1. What do you expect to accomplish by doing strategic planning? (Please state two
or three specific goals. Record and clarify them before answering the next
question.)
2. Describe previous efforts by your organization to do strategic planning.
. What was your role in these efforts?
. What worked well in these efforts?
. What seemed not to work well?
3. Describe your previous involvement with doing strategic planning in other
organizational settings.
4. Why is your organization considering doing strategic planing now?
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5. What factors could lead to success in this upcoming strategic planning process?
6. What factors could lead to failure in the process?
7. Who strongly supports the proposed strategic planning process?
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8. Who could probably "cere less" about the process?
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9. What is your personal level of commitment?
10. What else would you like to say about the proposed strategic planning effort?
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CITY OF ,CLEARWATER
INTEROFFICE CORRESPONDENCE SHEET
TO:
Mayor and City Commission .
Betty Deptula, City Manager ~
COPIES TO'
COMMISSION
FROM:
COPY:
Kathy S. Rice, Deputy City Manager
William C. Baker, Assistant City Manager
MAY 1 7 1996
SUBJECT: Strategic Planning
PRESS
CLERK I ATTORNEY
DATE: May 17, 1996
Attached is the overview of the strategic planning process that we will be starting at your special
worksession on Tuesday, June 18, 1996.
As always, please call if you have questions.
o PIllNl'ED ON RECYCLED PAPER
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Applied Strategic Planning:
An Overview
Revised
Leonard D. Goodstoln. Ph.D., Timothy M. Nolan, Ph.D., a J. William Pfeiffer, Ph.D., J.D.
t"'"
A DEFINmON OF" ,
APPUED STRATEGIC PLANNING
,
Organizations need strategic planning because the
world changes constantly. It would be foolhardy and
unrealistic to assume that economic conditions, con-
sumer needs and expectations, competition in the
marketplace, or 8 bost of other factors will remain the
same for two, three, or five years into the future.
Applied Strategic Planning is the process by which
the guiding members of an organization envision its
future and develop the necessary procedure.f and ap-
erations to achieve that future. In other words. Applied
Strategic 'Planning h~Jps the organization to create its
own future. Therefore, it is different from long-range
planning, and it is more than merely attempting to
forecast the future and plan accordingly.
The Applied Strategic Planning model on page 3.
shows nine steps that are designed to be followed iit
sequence. Additionally. these steps are "sandwiched"
between two processes, environmental monitoring
and application considerations. These two processes
must be attended to throughout Applied Strategic
Planning. This publication explains each of these com-
ponents in the process.
I. PLANNING TO PlAN
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During this step, the organization's top management
decides who will be on the planning team, how long
the process will take, who will research and develop
the required data. and other similar issues. Usually not
more than twelve people will sen'e as regular members
of the planning team, hut a number of people in the
organization wiD be asked to supply data and to he
involved in various aspects of the planning process.
In order for the members of the planning team to
be free from interruptions, the formal planning ses-
sions may be oonducted in a hotel conference room, at
a retreat site, or in the home of a planning-team
member. Between the fonnal sessions, various mem-
hers of the organization will research. comptle, and
catalog data for the planning team to consider at its
nen session. The planning team will spend &om ten
to twenty days in the formal sessions, depending on the
needs and desires of the particular organf2atfon. Each
sessh)n will last two or three days. and the ~siom will
be spread O\'er about six months.1be planning will end
about the time budgeting begins, so that the plans can
be coordinated with the new budget.
2. VAWES SCAN
All bu~ decisions are based on what an organiza-
tion values (e.g., growth, quality oontroL and ethics).
Strategic plans that do not consider the values in the
organization will be in trouble and may even &iI.
During the values scan, the planning team examines
the following five elements: personal values of the
members of the ~nning team, the values of the or-
ganization as a whole, the organiZ8tion's operating
philosophy, the organi2ation's culture. and the organi-
zation's stakeholders.
fndMduaJ Values
This step inYOIves examining the personal values of the
members of the planning team. Individual values, es-
pecially the values of executives and managers, often
become part of the organizational system. For exam-
ple, the impact that a manager who values security
makes on the org~niza.tion will be quite different &om
the impact made by a inanager who likes to take risks.
The object of this step is not to influence the members
to change their values. but rather to help them under-
stand . ~ another's values and" their ~pact on the
organ1Z8tion.
Organizational Values
. After the planning-team members have examined
their individual values, they then detennine what val.
ues they want the organization to espouse and use in
Page 1
decision making. For example. they may have to de-
ddto whether to value profit more than gro"1h or how
strongly to value quaJit).. These decisions are impor-
tant, because the values that a~ chosen "ill directl)'
influence what can or cannot be accomplished in the
organization.
OperatJng Philosophy
Some businesses organize and publish their organiza-
tional values in a statement of operating philosophies.
However, even if an organization does not have a
written philosophy, there are unwritten philosophies
of operation that the employees understBnd. For ex-
ample, the employees can readily an~r questions
about how work is done, bow conflict is managed. how
soon bills are paid. etc. The planning team examines
the assumptions in the operating philosophy to deter-
mine if they are valid and relevant, especially for the
future.
CkganaatJonalcunure
The planning team's values, the organization's values,
the operating philosophy, and the organization.s as-
sumptions about the way the world works aU come
together. to produce the organization's culture. To
identify and understand the origin of the organization's
culture. the planning team investigates the assump-
tions upon which the organization's culture is based
and how those assumptions have determined its values
and norms.
Stakeholders
Stakeholders are those individuals or groups who be-
lieve they hold a stake in the organization.s future. The
planning team identifies who these people are and also
predicts how they will respond to the strategic plan.
Stakeholders typically include managers and all other
employees. clients or customers, suppliers. unions,
governments, creditors. owners, and sh~'"'ebolders.
3. MISSION fORMUJ.AnON
An organization's mission statement is a clear state-
ment about what business the organization is in. The
mission ~tement should be brief and should be sim-
ple enough to be understood by every member of the
organization. In creating the mission statement. the
planning team must answer the fonowing questions:
What function does the organization perform? For
whom does the organization perform this function?
How does the organization perform the function ?Why
does the organf7.ation exist? The planning team must I
also examine forces that drive the organization and
detennine what quality or attribute makes the organi- r""\
zation uniquely different from its competitors. \ .
What
Many organizations answer the "what" question by
naming the goods that they produce or the services
that they render. This may prevent them from seeing
new opportunities for growth or from responding to
challenges. The Applied Strategic Planning team tries
to identify goods and services that meet .~~ of
customers or clients and oonsiders these Ii{~ulat.
ing the mission statement. The planning team may see
that some of the old ~ and services ~~
obsolete while new pToduCts and serYices:'~~
The planning team must reach consensU!'gn bow
broadly or narrowly to answer the -what- ~~
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Who
No organization can meet all the needs of all possibleoclients or customers. Mission f~rmulation .~ a
clear identification of what segment of ~'~ptiaI
-. ~ .~.
customer base is the o.rganizatioo.s prinuu)'.t&rget.
This selection is called market segmentDtion. Markets
can be segmented in many ways: geographicaDy. s0cio-
logically. financially. ethiuca1ly, and so on.
('
How
. .
Deciding how the otg'lni7)ltion will achieve ~ inlssion
may involve a marketing strategy, such as becoming
the Iow-cost producer or the technoJogicalleader. It
may include door-to-door selling or direct-mail mar-
keting. or it may involve a variety of processes through
which the organization can deliver pnxlucts or services
to a particular consumer group.
Why
The basic reason that the organization exists-tbe
broad social needs it serves is also examined by the
planning team. The reason for its existence also be-
comes part of the mission statement. .
DrMng Forces . ~,'_
......, .-
Another important factor in misskm fomiuLition is
identifying and prioritizing the forces that dJ:ive the
organization. 1here are numerous driving forces that
can influence an organi~tion. 'nley may include prod-
ucts being offered. the method of distribution, or the
market being served. Growth is another driving Coree.
()
Page 2
The Applied Strategic Planning Model
e
Planning
to Plan
Environmental
Monitoring
Application
Considerations
Mission
Formulation
.
Strategic
Business
Modeling
Performance
Audit
-.". t
+
Integrating
Action Plans
Contingency
Planning
.
Implementation
Page 3
that drive their organll.aoons.
CC) arc rl:\\'(Huedlor UIClf achiC\lt:mcllU. pot lor
unproductive efforts. In a support culture. the
emplo)'ee is valued as a person as we)) as a worker,
and hamlOn)' among employees is ilnportant.
DistInctive Competency
Another ingredient of the mission statement is the
identification of the quality or attribute that makes the
organization different from its competitors. nus is
called the distinctive competency or the distinctive
competence. For example, an organization may be the
only educational institution to provide management
education after work and on weekends in its geo-
graphical marketplace. The planning team must ask-
andanswer-"What.are e~~.goodatandhow
can we ~d on~~~'~?,.
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4. STRATEGIC BUSINES$. ~ODE~NG :<
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During this- Step Of Apii~ S~ Planning, ~
pIAnning-t~, me~bers deCide on the ~.}n .
which they ~t the Otgl)ni7.ation to go. They visti8lize
the organization's future and describe what it looks
like. This ideid future must 6t with the organization's
mission. Four primary elements will come out of stra-
tegic busin~.~:', . , . .
1. I~n;' ;~~.?1,'li~t{~':('~~~ness (LOBs) that
the 0" ,.". . ~1 to fulfill its mission.
For enirl~: -;; ::.c" Wilie: ~B$'fu -a banic"~
be comrJ;~ai"" ::~"., ';'10ahs, and individual
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checldng' ~d sa# accounts. .
2. Estilblishi~~~ ~ for~ of
those LOBS. ~~~'@'teniiliiing ~t things
will indi~~.tha{.~~wnt?J\lioD ~. on target. with
its new ~ Foi~:ltCustomer satisfaction
is one of the"g~~"'p~ team must deter-
mine what would indicate that customer satisfac-
tion was increasing. 'Perhaps one indicator would
be a decrease in the number of products that
customers return for exchange or refund In that
case, the organization would need to keep careful
track of its returns in order to determine whether
the number was ~g or decreasing.
3. Iden~g the stitJtegic thrusts that the organiza-
tion will uSe to 8chieve its Ideal future. Some
examples of ~!~ t4rusts include the creation .
of a h~~. ~"ae~nt.,and the installa-
tion of a '~1nt-o~~e inventory system. .
4. DetermiDiDg what culture is necessary to support
the lines ofbusiness. the critical success indi~ors,
and the strategic thrusts. Some examples of types
of culture are an achievement culture and a sup-
Although the planning-team members must not
allow the present situation to hinder their dreams and
plans for the future, they should focus their creativity
on realistic ideals that are congruent with the mission
statement. They must also set priorities among the
directions they are planning for the future.
t
[
,
l
5. PERFORMANCe AUDIT . ...~ , . " . .. ...... .. .
J'~'.~ ... :)..y;~..,,:::: '.'.
After the ideal future has been ~~ the plan-
ning team examines tbe OI"U:inkiaOn'j"onisent C,f re-
; Cent:"'ito~.: Foi- thii'~'~(:1.1G~ "~;'::-.-'
..... ~. . ~,~ -h~ ~li' .~
. varl~-:~ of infonnatiOn;~~~' " .: ~ ~n
~~~~.received,~.9~.~" " ~
nite..uMiit.'C\turnoyer rates 'iDd Y"" _
uct.s>~~~~:or em ,..:..~~~~. ;.i'~&e.' .. ~L~
.. . . . P~J~ may '. ;.-. ... , " '. ~~l"
provide.the information. The perf~~~~ Is the
most detailed and time-coI1St1IJliDg.~:~ ~c
planili '- ',but~one ,.1,.2J{wmin&'~'::"-iheor-
. "~. ;~ . j>~:"r7~: '.,,,, .~~ ..~: .
~n'7'~liqn.stapacity to moye.!~t~ . " ..~ or.the
1.1__1 ~.:j.'.!.!-... . - "~~. . ~)'''' .
KJeW iU~. . . ..~~ "r':f\. "r~~. ....
."~ . : :~,~""'",:,~, . . 7~~'.":"~':":'~...<:......~\~'..
.'L"OS'" '~""~~'~'.J " '. ....:,;I~ ;:<y~~..,
. . ......... .~~~).:-. .... ._ r
,. .....,....~- . ... .'x:... .
. .....) - . , ,... ~........ ~
. '. '.' ;J'. -,r, ..' ".~;'I"'~~~~i."'" ,"..~... .
Each ~_ Of business must be"~ to
determIne"WhIch LOBs are most . ....~ .8'iia Which
. are ,w~.., ~. The .J"nn.n te8iii'-::Z"~~\~itbat
~~opooul ~uuug . '~r C .... '\.
the !J'acld.Dgsysrems are not S1J~~
pYQ,,;,1V~ the LOBs are ~~"'. fu tbat " 'J "'1be team
---:'~:"",:T. . . . ~.. _ . 0# ~'.... 4to\4~"'''
must create adequate tiaclcing ~ms. '2 ';..~~=-=. .~. .-
': : .:. '. , 1.-:.'
. ~.. ":; :". "';~~:'.::-:;\ .
SWOT Analurlr ., . ~ .. . . . .
'J~ . . .:,..., .~". -..'
-
~;
:;.,
.
Owing the performance audit step, the planning team
willloolc at the organization's strengths and wealc.
nesses and at outside opportunities ~.tbre8ts.1bis
must be done for each WB in the o~~1r-86on. 1bis
activitr.is often called a .SWOl ~(~ acronym
standing r~ the organization's ~.;:~.~-
oosseS ~'ib' . rtunities and ~~ other
emplo~',m:k asked to he)p':~i)t~~~g the
SWOT Ie. . . ... ::. . 'J,~' . -:l',:'
e moots. . _ .;..... .~.~ ':'.;..'-jio.., ..; "
. ..;~::..~,.~.~ ... .".':"~;.~~~4~~ .' .~...,.....
. -...,... ....;:,. ,. ". . 1 ~ ." '"''\ \" . ~':~i,-.4.
C petItof." '. AnaJysJs' ' . ." ..: :">..-. .>.::,:. , .
om . . '.,~ - - . ~" .,.
. , . '" ..... - ..~ ,. ..
'.. . . . :.... ,,1' . .
. ...... . .'_ 1#'l-....~/,. ..
.' "'.1 .' .~,"lCr~~ .~.
Analyzingoompetitorst perforrnarioo"'~~" aifimpor-
tant part of the performance audit. Competitors at-
tempt to increase their shares of the ifuuiet by taking
Page 4
............ -.---.---
- . - ----.------- ..---.., -. .......... , .\ ~ .
. .. , .
o
o
o
customers away from other organJutions. The plan-
ning team needs an early-warning system to d('lect
competitors' strategirs, so that it can develop n('ces-
sar)' countem1oves to retain or increase its own share
of the market.
6. GAP ANAL YS'S
The gap analysis is a reality test; that is, it is a compari-
son of the information generated during the perform-
ance, audit with whatever is required for achieving the
strategic plan. If the gap analysis indicates that there
is little or no gap between the present situation and the
ideal future. then the planning team has not gone far
enough in vi.suaIf.zmg the future. The Jdeal future
should require the organization to reach and stretch
and create ways to rnalce it happen. If, on the other
hand, the ideal future is so far from reality that it
cannot be reach~ then the planning team must adjust
the ideal. Frequently, compromises can be made on
both ends; that is, the ideal can be scaled down a little,
and the planning team can work a little harder to find
ways to bridge the gap.
As the planning team looks at each gap individually,
it may find a way to close each gap: l3ut it may then
realize that it would be impossible to close all gaps
simultaneously. At this point a decision has to be made
about which gaps to dose. During strategic business
modeling. the planning team set some priorities; dur-
ing the gap analysis, these priorities-as wen as the
various elements in the mission statement-will help
the planning team decide which. gaps to close and
which ideals to change.
7. INTEGRAnNG AmoN PLANS
Once the gap between the ideal future and the organi-
zation's capacity to attain that future is manageable, an
operational plan needs to be written for each line of
business, and an action plan needs to be written by
each functional unit (departmen~ etc.). In a typical
organizatio~ there would be a financial plan, a produc-
tion plan, a marketing plan, a human resources p~ a
capital-equipment plan, and sO on. These plans are
drafted before the overall budget decisions for the
organization are made. so that the Bnal plans can be
integrated into the budget.
Each plan developed by a functional unit (depart-
ment, etc.) must be understood and accepted by each
of the other hmctional units in the organization. 'This
process is difficult, because each unit will begin to
compete for limited resources. For example, several
departments may simultaneously need the services of
the graphics department or computer operators or
mail room. E,ach action plan must be checked against
the mission statement and the values scan to deter-
mine whether the proposed actions are consistent with
what the organization said it wanted to be. When the
various units cannot agree, then it is the responsibility
of the chief executive officer to set priorities and make
the decisions.
8. CON11NGENCY PLANNING
Applied Strategic Planning is based on events that are
likely to happen in the future and that would greatly
affect the organization. H~r, there are many
other eventS that could affect the o~ but the
probability of them happening Is 50 low that they are
not worth considering. In fad", if the planning team
took time to create a plan for every possibility, there
would be-no time left for other work.
Nevertheless., there are a few things that would
impact the organization so greatly that~n though
they probably will not happen-attention must be
paid to thein. Forewnple, the president of a company
may be thirty~four years old, in good"liea1tb, and not
1ilcely to die within the next five years~"On the other
han<L ifhe or she is the only person who is ~pable of
running the company and if the president's absence
would seriously affect the success of the business, the
planning team must make some plaris fOr this contin-
gency. Contingency plans should help the org9Y'i~on
to develop a thorough tracking syste~ to provide early
warning signs of such changes-both inside and out-
side the organi7Jltion-that would seriowlyaffect the
organization.
9.IMPLEMENTAnON
The payoff for strategic planning is in its application.
The plan will accomplish little, if anything, if it lies
unattended in the bottom drawer of a desk, and the
planning team's time will have been wasted Because
applying the plan is so important, the ~e · Applied"
Strategic Planning has been given tp thiS process.
When the plan is complete and ready for action, it ma}'
be presented to your organization with a lot of cere-
. mooy. If so, this is quite appropriate, because the
. organization is about to en:-bark on a new Journey in a
new direction.
Implementation of the plan includes performing
the actions outlined in the functional unit (depart-
ment, etc.) action plans. Every member of the organi-
Page 5
zation should fee) invol\'ed, because the success of the
strategic plan depends on the cooperation of the entire
organization; It has been said that a "8" quality plan
executed in an "A" manner wiJI always outperform an
"A" quality plan executed in a "B" manner.
Depending on your particular organization, the im-
plementation phase may include things like new con-
struction, technical training, team building. shorter
cycle time for products (sometimes referred to as
"faster cycle time" or "total cycle time"), total quality
managemen~ and increased research and develop-
ment
'The mission statement will be available to aD em-
ployees. When any business decision needs to be
made, the employee can refer to the mission statement
to make certain his or her decision coincides with the
mission of the organization. In f~ when maldng
decisions. if employees first ask. is my decision con-
gruent with the mission and strategic plan of this
organization?" then the strategic plan is wen on its way
to being implemented.
ENVIRONMENTAL MONITORING
The planning team moves through. the nine steps in
the c.rder they are described above. "nle team moves
into one of those steps, works through it, and leaves it
to go on to another. There are two additional processes
of Applied Strategic Planning that the planning team
attends to throughout the meetings. regardless of
which step it is working on. One of these is -environ-
mental monitoring..
There Is a need to know what is happening bOth
within the organization (the "internal environment-)
and outside the organization (the -external environ-
ment-). In each of the regular steps of Applied Strate-
gic Planning. the planning team needs information
about the environment to help create the pIan. It also
needs the most up-to-date infonnation possible.
Therefore, the Applied Strategic Planning model on
page 3 shows that environmental monitoring contin-
ues throughout the planning process.
APPUCAnON CONSIDERAnONS
Although "implementation. is one of the nine steps of
Applied Strategic Planning. an organization cannot
always wait until the plan is complete before starting
to implement some of the elements. In each of the nine
steps, the planning team will consider what needs to
be applied at that time. Employees may also receive
updated information about the strategic plan during
any of the steps. The model on page 3 shows that
appUcation considerations also continue throughout
the process.
,,-.....
APPUED STRATEGIC PLANNING
IN THE FUTURE
When defining Applied Strategic Planning, we men.
tioned that strategic planning is necessary because the
world continues to change. A year from now that
statement will still be true. Therefore,. one strategic
planning cycle Is not sufficient to guide an OrgJ'nil.ation
through the many yeaTs of working toward its Ideal
future. Applied Strat~c Planning is a continuous and
overlapping pOOcess. That is, while the organization Is
applying and implementing the plan. the planning
team is already in a new -planning to plan- ph;ase-de-
ciding who will be on the new planning ~ how
many days wiD be spent on each step ofthe'"rilodel, etc.
The second, third, and subsequent years of AppUed
Strategic Planning wiD each be a ~ttle different, be~
cause the planning team will have more experience
and will be able to detennine which steps Deed.special
attention for that particular year. Ead1.~. ~ ~
future may be a little different, and t:he Organiiation's
mission, values, and culture can Ch~' CNet time.
Nevertheless, the vision of the ideal future .should
always be promiDent, because without the vision it is
impossible for an orgRnization to create itS 0Wn.~.
And creating the future Is what Applied Strategic
Planning is all about. .
c-
1his overview is based on Applled. Strategic PIm1nIng: A
Comprehensive Guide by Leonard D. Goodstein. Thnothy
M. Nolan. and J. William pfeiffer and published in 1992 by
pfeiffer & Company, San Diego, California.
Copyright e 1992 by pfeiffer & Company. AD rights re-
sen-oed ISBN: 0-88390-319-9. Printed in the United States
of America.
Order additJonaJ copies of this Instrun1ant from:
~
(U.S.A.) (~)64j-3030
FAX. (~)J~47-3034
I ~. ~....: .....~.. . . ._ _'
ISBN 0-863'0-31'-'
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