The
strategic planning process has been around
since man first picked up a rock to throw it at another. Since that time our
military has refined the
strategic planning in order to cope with the ever changing
roles our military
plays in the world. In the
business world we can use the strategic planning process to attack the
competition.
Yet,
before you start the process of strategic
planning, it is important that you first understand the strategic plan
definition, as well as how to make the strategic planning process
work. Clicking this link will open up in a new page so that
you don’t lose this
page.
The
following are the components of
the strategic planning process.
Step
One: Conduct
a Gap Analysis. This
first step is where you getting
crystal clear as to where you are today, and where you want to be at a
specific
time in the future (1,3,7,10, 20 years from now).
This is your End Result.
It may be in any given area:
Revenue, Profits, Market Share, Innovation,
Cash
Flow, Cash Reserves, Expenses, Employee retention, Customer
satisfaction, Repeat
Customers…
Most
people kind-of know where they are, and have an idea where they want to
be. Both of these
need to be
specific. This way
you will have a
benchmark of where you started, and will be able to gauge your progress.
Wanting to “improve customer service” is not
quantifiable. Having
a customer satisfaction rating of 78
percent, and wanting to improve to 85 percent is quantifiable.
This is paramount to the strategic
planning process.
The
difference from where you are today, to where you want to be ( the End
Result)
is “the Gap” that you must close.
Step
Two: Writing
a mission statement.
In
this component of the stategic planning process you develop the mission
statement. It should at a minimum state Who must do What by
When, Where, and
Why. The “Why” is
the Desired Outcome
from the Gap Analysis.
Step Three: Conduct a SWOT analysis. You must objectively
analysis your
organizational Strengths, Weaknesses, Opportunities, and Threats.
Step
Four: Develop
the Leader’s Vision Statement. Bar none, by far the most
important component
of the strategic planning process, for all time and will always be is
The
Leader’s Vision Statement!!!
We
are getting into the heart of
the Stategic Planning Process
Step
Five: Course of
Action (COA) Development.
This step is the dependent
upon brainstorming as many ideas as
possible. Here empowered subordinate planners generate
as many courses of action as possible. Given the end result
and any
constraints
implied by the Leader’s Vision, there is an endless array of options.
Depending
on time, you want as many different courses of action as time
allows.
You need
a minimum of two if you are absolutely running out of time, but
developing
three or more courses of action is much more preferable. It really just
depends on the complexity of what you are trying to accomplish.
Step
Six: Course of
Action Analysis.
This component of the strategic planning
process involves war-gaming the different
Course of Actions.. It
is paramount
during this phase of planning that you remember that the competition
and your
customers have a vote. You do this unbiased analysis for each course of
action
and document the results.
Step
Seven: Course
of Action Comparison. The
empowered
subordinate planners compile the different courses of action and the
subsequent
war-gaming results. They compare these war-gaming results and balance
them
against any criteria specified by the Leaders.
You can use whatever criteria the Leader
directs or which is implied by
him or specified by his Leader’s Vision.
Other COA criteria can come from the SWOT
analysis where you looked at
your unit’s Strengths, Weakness, Opportunities, and Threats. Examples of COA criteria
might be:
-Suitability – Will it
complete the mission
and meet the
Leader’s Vision?
-
Feasibility – Is it possible?
-
Acceptability – Are the risks acceptable?
-
Completeness – Can it be completed on time?
- Simplicity –
Are there fewer moving parts?
-
Flexibility – Can you easily adapt it if the situation
changes?
Next,
assign a weight to the
comparison criteria because not all criteria are created equal. With this information, we
can fill in a
decision matrix.
The Stategic
Planning Process
Decision Making
Matrix
Criteria
|
Criteria
Weight
|
COA 1
|
COA 2
|
COA 3
|
Suitability
|
1
|
1
|
1
|
3
|
Feasibility
|
1
|
1
|
2
|
3
|
Acceptability
|
2x
|
2 (4)
|
1 (2)
|
1 (2)
|
Completeness
|
1
|
3
|
3
|
3
|
Simplicity
|
3x
|
1 (3)
|
3 (9)
|
2 (6)
|
Flexibility
|
2x
|
2 (4)
|
1 (2)
|
3 (6)
|
|
|
16
|
19
|
23
|
Remember to “weigh”
the appropriate
criteria. Then add up the columns.
It
is apparent that COA 3 is the
best choice because it scored higher in the analysis than the other two. At this point, you would
go back and brief
the Leaders on the plan.
The
Leader has
not necessarily been physically present throughout the planning process. It is important to realize
that he was there
in spirit because he gave his Leader’s Vision Statement to guide and
steer his
staff in the planning process.
If
the leader does not like the
plan, the
leader simply tells them the aspects he or she doesn’t like and send
the
planners back for re-planning.
Understand
that even if a Leader
has empowered planners and the plans are developed bottom up (from
subordinate
to Leader), the Leader is still the leader. Think of it as
participative
planning with autocratic decision-making. If the plan in no good, won’t
solve
the problem, or violates the Leader’s Vision, make them change it.
Step
Eight: Produce
and disseminate the approved strategic
plan throughout the organization.
Step Nine:
Execute the strategic plan.
Step Ten: Monitor the progress of
closing The Gap.
Using
this strategic planning process, you, your
subordinates and superiors will find better, well thought out,
documented, and
innovative solutions from the most minor to the largest Gaps you face.
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|