Strategic Planning (Why Bother?) Phillip Bridgewater Organizational Development Consultant Merger SME US Office
Workshop Overview • Word Association • A Modern Day Parable • What a Strategic Plan is NOT • What a Strategic Plan IS • Why Strategic Plans Fail • Aligning with HFH Global Strategic Plan • Resources • Q&A
Word Association What do you think of, what do you feel, when you hear the phrase “strategic plan ”?
Matthew 7:24-27 (NRSV) 24 “Everyone then who hears these words of mine and acts on them will be like a wise man who built his house on rock. 25 The rain fell, the floods came, and the winds blew and beat on that house, but it did not fall, because it had been founded on rock. 26 And everyone who hears these words of mine and does not act on them will be like a foolish man who built his house on sand. 27 The rain fell, and the floods came, and the winds blew and beat against that house, and it fell —and great was its fall!”
1235 Overlook Court
What Strategic Planning is NOT Mission, Vision or Values These are all components of a strategic plan and an organization’s culture , but taken alone they do not represent strategy.
What Strategic Planning is NOT Goals, Targets, or Mileposts Setting Goals, Targets, or Mileposts is better than nothing, but unsupported with actions plans and budgets , they can’t be mistaken for strategy either.
What Strategic Planning is NOT Review with Projections A historical review of the company’s performance could certainly be a component part of a strategic plan, and post-mortem reviews of past operating periods can be useful, but they hardly constitute a sound, well thought out strategy
What Strategic Planning is NOT Budget or Cash Flow Projections Budgets and cash flow projections are wonderful, but they lack the passion, the differentiation, the action plans, etc. to support the numbers in the budget.
What Strategic Planning is NOT A Narrative without Budgets and Cash Flow Projections Mirror opposite of budgets and cash flow projections. Wonderfully crafted verbiage could certainly be inspiring, but in the absence of hard numbers narratives just don’t get it done.
What Strategic Planning is NOT SWOT Analysis SWOT analysis can be very valuable, and it can certainly be part of a well thought out strategic plan, but again, it should not stand on its own.
What Strategic Planning is NOT Lists - especially long lists - of mileposts or objectives Long lists are simply unworkable, unmanageable, don’t provide for accountability , aren’t supported by the numbers, and have many other failures. Lists are lists, not strategies. What Is a Strategic Plan and Why Do You Need One? By Wayne Rivers
So, if Strategic Planning is NOT… • Mission, Vision or Values • Goals, Targets, or Mileposts • Review w/ Projections • Budget or Cash Flow Projections • A Narrative w/o Budgets and Cash Flow Projections • SWOT Analysis • Lists - especially long lists - of mileposts or objectives ….then what is it?
So, What is Strategic Planning? Strategic planning: In partnership with staff, boards draw on an understanding of organizational strengths and weaknesses, industry trends, and peer bench- marking to articulate priorities and monitor progress against financial and program goals. After translating strategic priorities into action plans, they use these plans to assess the chief executive, drive meeting agendas, and shape board recruitment. Strategic Planning: Understanding the Process, BoardSource 2011
So, What is Strategic Planning? The ultimate goal for a strategic plan is to enable your team to focus on a small set of desirable, clearly articulated outcomes in order to produce desired results. “What Is a Strategic Plan and Why Do You Need One?” By Wayne Rivers
So, What is Strategic Planning? A strategic plan is a tool that provides guidance in fulfilling a mission with maximum efficiency and impact. If it is to be effective and useful, it should articulate specific goals and describe the action steps and resources needed to accomplish them. As a rule, most strategic plans should be reviewed and revamped every three to five years. Ten Keys to Successful Strategic Planning for Nonprofit and Foundation Leaders by Richard A. Mittenthal
What is Strategic Planning A successful plan is, by definition, a usable plan – one that informs the organization’s activities as well as its long-range view, and one that yields meaningful improvements in effectiveness, capacity and relevance. Ten Keys to Successful Strategic Planning for Nonprofit and Foundation Leaders by Richard A. Mittenthal
Why is Strategic Planning Important • Clarify the mission to all stakeholders • New insights from other peoples’ perspectives • Identification of challenges and barriers • Assess, reassess and adjust programs • Reaffirm that an organization is headed where it wants to go or should be going • Focus thinking outside the box - new ways of thinking about old problems • Develop a framework within which to make difficult program decisions • Address external uncertainties and change • Garner financial support (donors who may require a strat. plan)
Why is Strategic Planning Important • Build teamwork, communication and expertise among the board and staff • Buy-in/ownership from others on the team • Measure organizational effectiveness by incorporating evaluation into the process • Forced choices - the strategic planning process requires the team to narrow down a huge menu of potential choices to a manageable few thereby increasing the focus of everyone on the team • The PROCESS ITSELF! The process drives everything else; even the final planning document itself is less important than the “all for one, one for all” process of thinking through the strategies.
Why Strategic Plans Fail 10 Reasons Why Strategic Plans Fail http://www.forbes.com/sites/aileron/2011/11/30/10-reasons-why-strategic-plans-fail/
Why Strategic Plans Fail 1. Having a plan simply for plans sake Some organizations go through the motions of developing a plan simply because common sense says every good organization must have a plan. You get out of a plan what you put in. If you’re going to take the time to do it, do it right.
Why Strategic Plans Fail 2. Not understanding the environment or focusing on results Planning teams must pay attention to changes in the business environment, set meaningful priorities, and understand the need to pursue results.
Why Strategic Plans Fail 3. Partial Commitment (buy-in) Boards of Directors & CEOs must be fully committed and fully understand how a strategic plan can improve their enterprise. Without this knowledge, it’s tough to stay committed to the process.
Why Strategic Plans Fail 4. Not having the right people involved. Those charged with executing the plan should be involved from the onset. Those involved in creating the plan will be committed to seeing it through execution.
Why Strategic Plans Fail 5. Writing the Plan and Putting it on the shelf. This is as bad as not writing a plan at all. If a plan is to be an effective management tool, it must be used and reviewed continually. Unlike Twinkies or a fine vino, strategic plans don’t have a good shelf life.
Why Strategic Plans Fail 7. Having the wrong people in leadership positions The Board of Directors & Management must be willing to make the tough decisions to ensure that the right individuals are in the right leadership positions. The “right” individuals include those who will advocate for and champion the strategic plan and keep the company/organization on track.
Why Strategic Plans Fail 6. Unwillingness or Inability to Change Your company/organization and your strategic plan must be nimble and able to adapt as market conditions change. Evaluate & Reevaluate.
Why Strategic Plans Fail 8. Ignoring marketplace reality, facts, and assumptions Don’t bury your head in the sand when it comes to marketplace realities, and don’t discount potential problems because they have not had an immediate impact on your business/organization yet. Plan in advance and you’ll be ready when the tide comes in.
Why Strategic Plans Fail 9. No Accountability or Follow Through Be tough once the plan is developed and resources are committed and ensure there are consequences for not delivering on the strategy.
Why Strategic Plans Fail 10. Unrealistic Goals or Lack of Focus and Resources Strategic plans must be focused and include a manageable number of goals, objectives, and programs. Fewer and focused is better than numerous and nebulous. Be prepared to assign adequate resources to accomplish the goals and objectives outlined in the plan.
Why Strategic Plans Fail And because ours “go up to eleven…” An homage to the 1984 Mockumentary “This Is Spinal Tap” “The Funniest Rock Movie Ever Made.”
Why Strategic Plans Fail 11. Critical Contingency Plans are Never Developed “What can go wrong, will go wrong”. Proactively develop a contingency plan for alternative approaches to achieving goals if realities change & the developed actions are no longer feasible. Remember: Review & Reassess; Evaluate & Reevaluate.
And now a brief period of questions and/or comments as we make a less-than graceful segue.
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