STRATEGIC PLANNING

WORKSHOP
WELCOME
STRATEGIC PLANNING
OVERVIEW
Strategic Planning Defined

 an organizational management activity that is used to set

priorities, focus energy and resources, strengthen operations,
ensure that employees and other stakeholders are working
toward common goals, establish agreement
around intended outcomes/results, and assess and adjust
the organization’s direction in response to a changing
environment
Strategic Planning Defined

a disciplined effort that produces

fundamental decisions and
actions that shape and guide
what an organization is, who it
serves, what it does, and why it
does it, with a focus on the future

Effective strategic planning

articulates not only where an
organization is going and the
actions needed to make
progress, but also how it will know
if it is successful.
Strategic Plan

A document used to communicate

with the organization the
organizations goals, the actions
needed to achieve those goals and
all of the other critical elements
developed during the planning
exercise
Strategic Management & Strategic Execution

Strategic Management

- the comprehensive
collection of ongoing
activities and processes
that organizations use to
systematically coordinate
and align resources and
actions with mission, vision
and strategy throughout an
organization
Strategy Execution is basically
synonymous with Strategy
Management and amounts
to the systematic
implementation of a strategy.
Strategic
Planning &
Management 1. Analysis or 2. Strategy
Assessment Formulation
Steps

3. Strategy 4. Evaluation
Execution or
Sustainment /
Management
Phase
Balanced Scorecard Basics

The Balanced Scorecard (BSC) is

a strategic planning and
management system that organizations
use to:

 Communicate what they are trying

to accomplish
 Align the day-to-day work that
everyone is doing with strategy
 Prioritize projects, products, and
services
 Measure and monitor progress
towards strategic targets
Balanced Scorecard Basics
 First published in 1992 by
Balanced Kaplan and Norton, a book
Scorecard followed in 1996
Concept
Traditional performance
measurement that only
focuses on external
accounting data are obsolete

The approach is to provide

‘balance’ to the financial
perspective.
 Improve organizational
performance by
measuring what matters
Why Use a
Balanced Increase focus on
strategy and results
Scorecard?
Align organization
strategy with workers on a
day-to-day basis

Focus on the drivers' key

to future performance

Improve communication
of the organization’s
Vision and Strategy

Prioritize Projects /
Initiatives
Who Uses the
Balanced
Scorecard?
Business &
Industry

Government Nonprofit
Organizations
BSC Terminology: Perspectives
 Financial
• What must we do to create
sustainable economic value?
Balanced Internal Business Process
Scorecard • To satisfy our stakeholders,
what must be our levels of
Basics productivity, efficiency, and
quality?
Learning and Growth
• How does our employee
performance management
system, including feedback to
employees, support high
performance?
Customer
• What do our customers require
from us and how are we doing
according to those
requirements?
BSC Terminology: Strategic Objectives

Align to Mission, Vision & Strategy by aligning

Actions with Strategic Objectives
BSC Terminology: Strategy Mapping
Used to visualize
and communicate
how value is
created by the
organization

• A strategy map is
a simple graphic
that shows a
logical, cause-
and-effect
connection
between
strategic
objectives
(shown as ovals
on the map).
BSC Terminology: Measures
(Key Performance Indicators)
Strategic KPIs:

monitor the implementation and

effectiveness of an organization's
strategies

determine the gap between actual

and targeted performance

determine organization effectiveness

and operational efficiency
 Good KPIs:
Offer a
Provide an comparison
objective way that gauges
to see if the degree of
strategy is performance
working change over
BSC time
Terminology: Focus Allow
measurement
Measures employees'
attention on of
accomplishme
(KPIs) what matters
most to nts, not just of
success the work that is
performed
Provide a
common Help reduce
language for intangible
communicatio uncertainty
n
BSC Terminology: Cascading

The end result

should be
focused
across all
levels of the
organization
that is
consistent.
 As the management system
is cascaded down through
the organization, objectives
become more operational
and tactical, as do the
performance measures.

BSC Accountability follows the

Terminology: objectives and measures, as
ownership is defined at each
Cascading level.

An emphasis on results and the

strategies needed to produce
results is communicated
throughout the organization.
STRATEGIC PLAN TEMPLATE
WALK-THROUGH
Table of Contents
01
• Balanced Scorecard

02
• Strategy Map

03
• SWOT Analysis

04
• PESTLE Analysis

05 • Action Plans
• Blue / Red Ocean Analysis
06

07 • VRIO / BOSTON Analysis

08 • Porter’s Five Forces

 Balanced Scorecard

a business framework used

for tracking and managing
an organization’s strategy

The BSC framework is based on

the balance between leading
and lagging indicators, which
can respectively be thought of
as the drivers and outcomes of
your company goals.
 Balanced Scorecard
Perspective Objective Measure Q1 Q2 Q3 Q4 Year-To-Date Initiatives
Actual Status Actual Status Actual Status Actual Status Total Status Target

Measure 1 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

Objective 1
Measure 2 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Measure 3 0.00 0.00 0.00 0.00 0.00 0.00
Financial Objective 2
Measure 4 0.00 0.00 0.00 0.00 0.00 0.00
Measure 5 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Objective 3
Measure 6 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

Measure 7 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

Objective 4
Measure 8 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Customer Measure 9 0.00 0.00 0.00 0.00 0.00 0.00
Objective 5
Measure 10 0.00 0.00 0.00 0.00 0.00 0.00

Measure 11 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

Objective 6 Initiative 1
Measure 12 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Measure 13 0.00 0.00 0.00 0.00 0.00 0.00
Objective 7
Internal Measure 14 0.00 0.00 0.00 0.00 0.00 0.00
Measure 15 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Business Objective 8 Measure 16 0.00 0.00 0.00 0.00 0.00 0.00
Initiative 2
Initiative 3
Processes Measure 17 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Measure 18 0.00 0.00 0.00 0.00 0.00 0.00
Objective 9 Measure 19 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Initiative 4
Measure 20 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

Measure 21 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

Objective 10 Initiative 5
Learning & Measure 22 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Measure 23 0.00 0.00 0.00 0.00 0.00 0.00 Initiative 6
Objective 11
Growth Measure 24 0.00 0.00 0.00 0.00 0.00 0.00 Initiative 7
Objective 12 Measure 25 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Initiative 8
Balanced Scorecard: Instructions
1. Enter your objectives in column E.

2. Enter your measures in column G.

3. Remember to adjust your merged cells b/t column E and G so that

your measures align with your objectives.

4. Adjust your number format for actual and targets in columns I-W.

5. Enter your targets (for your annual target, it may roll up or be

independent from your quarterly targets).
Balanced Scorecard: Instructions
6. Enter your actuals each quarter (for annual, it
may roll up in a sum or average).

7. Use the drop down in columns J, M, P, S, and V to show your color

status for the quarter and for the year. The following are the options
for status:

• On Target
• Caution
• Needs Help
• No Data

8. Enter your initiatives in column Y. Please note

that some initiatives may repeat.
 Balanced Scorecard: Cautions
1. This Excel template does not evaluate objectives or
initiatives.
2. This Excel template does not automatically evaluate
measures as they are manual without conditional formatting.

3. This Excel template does not support a strategy map.

4. This Excel template is only for one level in an organization,

and so it does not support alignment across organizations.
5. This Excel template was not designed to support qualitative
assessments.
6. If you let more than one person use the template, you may
create version control issues.
 Strategy Map

a visual created during the

representation of an strategic planning
process and is used as
organization’s overall
primary reference
objectives and how material during periodic
they relate to one strategy check-in and
another review meetings
 Strategy Map
This is where you keep your financial goals. You’ll want to
Financial Financial Objective Financial Objective Financial Objective
be able to answer this question: “If we succeed, how will
Perspective 1 2 3 we look to our donors and shareholders?”

This is the section of your strategy map template where

you think carefully about the value that you deliver to your
customers. Try to answer this question: “To achieve our
Customer Customer Objective Customer Objective Customer Objective
vision, how must we look to our customers?” You may list
Perspective 1 2 3 things like “quality of product,” “knowledgeable service,” or
“ease of use.” Try not to list everything—just the top three
or four things.

These are the internal processes or things that your

organization must do well in order to make your customers
Internal
Internal Objective 1 Internal Objective 2 Internal Objective 3 happy (and manage your expenses). This could be product,
Perspective process, or service innovation and is the lifeblood of your
long-term company future.

This is the perspective on your strategy map template

Learning & where you capture your human resources and look at
Learning Objective Learning Objective Learning Objective
Growth things from a “people” perspective. Perhaps two of these
1 2 3 goals might be to “build engineering talent” and “institute
Perspective greater accountability” throughout the organization.
 a high-level strategic planning model
that helps organizations identify where
SWOT Analysis they’re doing well and where they can
improve, both from an internal and
external perspective
Helpful Harmful
Strengths (S) Weaknesses (W)
• Strength 1 • Weakness 1
I
N • Strength 2 • Weakness 2
T
E • Strength 3 • Weakness 3
R
N • Strength 4 • Weakness 4
A
L • Strength 5 • Weakness 5

Opportunities (O) Threats (T)

• Opportunity 1  • Threat 1
E
X • Opportunity 2  • Threat 2
T
E • Opportunity 3  • Threat 3
R
N • Opportunity 4  • Threat 4
A
• Opportunity 5  • Threat 5
L
 SWOT Analysis

Where are your customers coming from?

S What are the advantages of your organization?

Do you excel insofar as your employees are concerned?
What are the biggest challenges with your employees?

W Where do you perform poorly?

What practices should you avoid?
What is your biggest opportunity to improve your finances?

O Where could you dramatically improve with your customers?

What processes will drive you well into the future if you could improve upon them?
What threats could seriously impact your financial health?

T What is your biggest concern about your customers?

What current areas of your business might harm you later?
 a framework used to analyze events
and trends in four external forces
PEST Analysis that commonly affect a business's
operations and performance

PESTLE Analysis

Political Economic Sociological Technological Legal Environmental

Political Factor 1 Economic Factor 1 Sociological Factor 1 Technological Factor 1 Technological Factor 1 Technological Factor 1

Political Factor 2 Economic Factor 2 Sociological Factor 2 Technological Factor 2 Technological Factor 2 Technological Factor 2
Strategic Action Plan

used to create the

initiatives and action
plans to achieve the
Stratrgic Objectoves primarily used to
identified in each of identify specific
the 4 Perspectives actions needed to
achieve goals
 Strategic Action Plans
Current State Initaitves to be undertaken Objective/Desired State Drivers / Enablers
What will Drive / Enable this Are they in
Where you are now?
Initiative / Objective? place?
What are your high level Initiatives? Where do you aim to be?
Enter the current state of
Please have at least 1 or 2 Yes / Partial / No
your department here

The Current State of your organization is mainly quantitative.

For example, if your constrcution business currently builds 35B in
buildings and infra for 5 clients, that’s your current state

The Action Items are the changes required to meet the

company's goal and how the company is going to make these
changes happen.

The Objective or Desired State is your future goal for your

organization. In order to establish your future goal you'll want to
think about how you are doing today in your current state and
where you really want to be within a reasonable timeframe. For
example: Increase the future state of the construction business to
50B in buildings and infra.
The Driver's and Enabler's are your assurance that you have
processes or controls that are existing that will work to meet your
objective / desired state? For Example: To meet the Objectives
of having a competent workforce, there is a Driver / Enabler
called Talent Management / Carreer Path Development Program
or etc.
 Strategic Action Plan
Action Items to support Initatives Champion Support Remarks / Comments

Which Unit support

Please list all necessary critical actions Who in your team do you need? Anything to look into / open
needed to achieve this Initiative? will do this? (name) (outside your unit item / followups?
or co)

The Action Items are those action steps (specific) that you will
now undertake to execute your INITIATIVES, taking into the
account the Drivers & Enablers you have, whether these drivers
& Enalblers are already working and you want to enhance them
OR you want to scrap those Drivers & Enablers and create NEW
ones, will be part of your action items in this column
The CHAMPION section here is to identify the Responsible
person (name) who will take up this actions. This person must be
someone from your Unit, even though the action could be carried
out by some other unit, you still have to appoint your own people
to track and monitior the outputs of that action.

This SUPPORT section here is to identify who and which units

are needed for your Initiative and Actions to be accomplished,
this column also represents which unit will undertake the actions if
those actions are more from them. You can liasie with those units
for discussion to understand and know if they have included this
into their scorecard.

The REMARKS section here is open for any comments /

assumptions / things to follow up on with others or challenges to
be reviewed, or even any risks that could arise
Red Ocean Strategy
Strategy 1

Strategy 2
For organizations to play
Strategy 3
in the known market
space, where industries
boundaries are defined,
Strategy 4 and companies find
ways to outperform their
Strategy 5 rivals to grab a greater
share of the confined
Strategy 6 market space

Strategy 7
Blue Ocean Strategy
Strategy 1 Objective
Strategy 2
For organizations to
find and develop
Strategy 3 “blue oceans”
(uncontested,
Strategy 4 growing markets) and
avoid “red oceans”
Strategy 5 (overdeveloped,
saturated markets)
Strategy 6

Strategy 7
 A simple comparison chart that will help you
understand if you’re working in a blue ocean or a
red ocean
 VRIO Analysis
relates more to vision statement than overall
strategy
The ultimate goal in implementing the VRIO model is
that it will result in a competitive advantage in the
marketplace
 VRIO Analysis
Value Rarity Imitability Organization
Is it expensive Does your company
Do you offer a Do you control to duplicate have organized
scarce your management systems,
resource that
processes, structures,
adds value for resources or organization's and a culture to
customers? capabilities? resource or capitalize on resources
and capabilities?
capability?

MEGAHOMES Yes/No Yes/No Yes/No Yes/No

PRECAST Yes/No Yes/No Yes/No Yes/No Your company has

YES YES YES YES achieved the ultimate goal
of sustained competitive
FORMWORKS Yes/No Yes/No Yes/No Yes/No
advantage!

CELS Yes/No Yes/No Yes/No Yes/No

N N N N
O O O O
 Porter's Five Forces Analysis
an older strategy execution
framework (created by
Michael Porter in 1979) built
around the forces that impact
the profitability of an industry
or a market

He identified five factors that

affect a business environment
and help drive profitability.
 Porter's Five Forces Analysis
Threat of New Entrants:
Could other companies enter the market easily, or are there numerous entry barriers they would
have to overcome?
• Ease of entry
• Time and cost of entry
• Cost advantages
• Technology protection
• Barriers to entry
• Specialist knowledge

Bargaining Power of Suppliers: Competitive Rivalry Bargaining Power of Buyers:

Are your competitors poised for major growth? If one launched one product could that impact your
Could large retailers put pressure on your organization to drive down the cost? Could large retailers put pressure on your organization to lower costs?
company?
• Number of suppliers • Number of competitors • Number of customers
• Size of suppliers • Quality differences • Size of each order
• Uniqueness of service • Other differences • Differences between competitors
• Your ability to substitute • Switching costs • Price sensitivity
• Cost of changing • Customer loyalty • Ability to substitute
• Supplier concentration • Costs of leaving market • Cost of changing

Threat of Substitutes:
Can buyers easily replace your product with another?

• Substitute performance
• Cost of change
• Buyer propensity to substitute
• Trade-off of substitutes
 Porter's Five Forces Analysis
Threat of New Entrants:
Could other companies enter the market easily, or are there numerous entry barriers they would
have to overcome?
• Ease of entry
• Time and cost of entry
• Cost advantages
• Technology protection
• Barriers to entry
• Specialist knowledge

Bargaining Power of Buyers:

Could large retailers put pressure on your organization to lower costs?

• Number of customers
• Size of each order
• Differences between competitors
• Price sensitivity
• Ability to substitute
• Cost of changing
 Porter's Five Forces Analysis
Threat of Substitutes:
Can buyers easily replace your product with another?

• Substitute performance
• Cost of change
• Buyer propensity to substitute
• Trade-off of substitutes

Bargaining Power of Suppliers:

Could large retailers put pressure on your organization to drive down the cost?

• Number of suppliers
• Size of suppliers
• Uniqueness of service
• Your ability to substitute
• Cost of changing
• Supplier concentration
 Porter's Five Forces Analysis

Competitive Rivalry
Are your competitors poised for major growth? If one launched one product could that impact your
company?
• Number of competitors
• Quality differences
• Other differences
• Switching costs
• Customer loyalty
• Costs of leaving market
End of Presentation

Thank you!