© 2007 Virtue Ventures. Licensed under the Creative Commons Attribution 3.0 License ( Strategic Planning for

© 2007 Virtue Ventures.Licensed under the Creative Commons Attribution 3.0 License (http://creativecommons.org/licenses/by/3.0/)

Strategic Planningfor the Social Enterprise


What is Strategic Planning?

• A process through which an organization agrees on-and builds commitment among key stakeholders to- priorities which are essential to its mission and are responsive to the environment.


Strategic Plan

Objectives

Strategic Issues

Strategic Goals

Vision

"If you don't know where you are going, it doesn't

matter which way you go.”

Cheshire Cat in Alice in Wonderland, Lewis Caroll


What’s it for?

• Making BIG decisions – Management tool – Strategic guide


Strategic Plan Views future as unpredictable Views planning as a continuous process Expects new trends, surprises and changes Considers a range of possible futures &

emphasizes strategy development based on assessment of the organization's internal and external environment.

No more than 5 years out Asks: "Based on our current understanding

of environment, are we doing the right thing? How can we best use our resources to achieve or mission?"


Strategic vs. Operational Planning

Strategic planning 1. Strategic decisions

are fundamental and directional, and over-arching.

2. Long-term implications.

3. Core strategies dictate how to employ the organization’s resources to best achieve its mission given a changing environment.

Operational planning1. Operational decisions

focus on the day-to-day implementation of strategic decisions.

2. Immediate (one year or less) implications

3. Details tactical plans to implement strategies and achieve goals and objectives


Planning the Plan

• When do you do it? – Beginning or end of major project / end of life cycle stage/

after evaluation / major change– How often?

• No more than every 2 years / 3-5 better

• How long?– 2-5 days

• Who should be involved?– (Pre) Context/buy-in – all key stakeholders– Vision value mission – management, staff, board– SWOT – management, professional staff– Strategic goals & strategies - management, professional staff– Org structure – management w/ staff input– Communicate complete strategic plan – to all stakeholders


Success Factors

Focus on the most important issues during your strategic planning process.

Be willing to question the status quo. Produce a document. Make sure the strategic plan is

translated into an annual operating plan for at least the first year.

Include stakeholders


Strategic Plan Framework

StrategicGoals

VisionValues Mission

ObjectivesStrategies

Action Plans

SWOT

Critical Issues

Strategies

Tactics


Strategic Alignment

R e g io n a l S tra te gyA frica

S tra te g y fo r A P

R e g io n a l S tra te gyIn d ia

R e g io n a l S tra te gyA s ia

M a te rn a l H e a lthS tra te gy

E ye ca reS tra te gy

P ro gra m S tra te gyH e a lth

O ve ra rch ingS tra te gy


Steps to Develop a Strategic Plan

1. Clarify the problem – the social problem or market failure that your organization is trying to solve/overcome.

2. Identify Stakeholders – internal and external stakeholders

3. Assumptions – state the assumptions about external environment.

4. Vision statement - what the organization would like to be in the long-term and how it would like to be perceived.


Steps (cont. 2)5. Discuss Values and Mission - outlines

the organization’s purpose and core values. 6. Conduct a SWOT Analysis – review of

internal factors (strengths & weaknesses) and external factors (opportunities & threats)

7. Identify Critical Issues – with the greatest strategic significance to the organization.

8. Set Strategic Goals - enduring statements of direction that amplify the mission statement and focus the organization’s efforts.


Steps (cont. 3)

9. Set Objectives – specific and quantifiable; performance is measured against them to ascertain progress.

10.Develop Action Plans for each objective assigning responsibilities and resources to each objective, action plans provide an essential link between the strategic plan and the annual operating plan and budget.


Contents of a Strategic Plan

1. Purpose2. Vision3. Mission 4. Core Values5. Situation Analysis

a. SWOT6. Key Strategic Issues7. Strategic Goals/Priorities 8. Objectives9. Action Plan


Your Strategic Plan


Key Assumptions Going In…


Vision Statement


Mission Statement


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Core Vales are the Pillar of Mission


• Characteristics:• Shorts• Cattle call • No food• Everyone does all jobs• Curbside check in• Employees make jokes• One of the best companies to

work for• Can’t book through travel

agent• One class

• Core Values• Low Fares• On-time• Customer Service • Fun

The mission of Southwest Airlines is dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit

Core Values Example


Core Values


SWOT


SWOT Analysis

Internal/Organizational• Strengths

• Weaknesses

External/Market• Opportunities

• Threats

Understanding the Business Environment To plan effectively, organizations need to fully understand the dynamics of their internal and external environment and respond accordingly:


Sample SWOT Analysis

• Physical Assets• Low Cost of Service• Innovation• People• Storage• Customer Relations• Balance Sheet and Cash Flow

• New Market Expansion• Acquisition• Industry Growth• People Development• Customer Service• Information Systems• Communication• Current Customer Relationships• Storage

• Information Management• Information Systems• Depreciated Asset Base• Expiring Contracts• Customer Retention• Customer Service• Human Resource Management

• Lack of Organizational Depth• Employee Development• Workflow Efficiency• Unrealistic Goals• Decision Making Process• Communications• Lack of a Shared Vision• Information Systems• Dependent Market Share Position

the Organization the Industry

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SWOT Analysis

the Organization the Industry

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What’s Next?

Many organizations attempt to understanding the internal and external dynamics of their business environment, but fail to turn this information into into an actionable strategy. Therefore, the goal is to develop a plan that:

– Leverages Strengths– Manages Weaknesses– Takes advantage of market opportunities– Is responsive to market threats


Leveraging Internal Strengths

What is currently being done or has been done?

• • • • • • • •

What still needs to be done?

• • • • • • • •


Managing Internal Weaknesses


• • • • • • • •


• • • • • • • •


Leveraging External Opportunities


• • • • • • • •


• • • • • • • •


Minimizing External Threats


• • • • • • • •


• • • • • • • •


Critical Strategic Issues

• Could be related to:• Vision• Mission• Mandates• Strengths, Weaknesses, Opportunities,

Threats• Assumptions


Critical Strategic Issues


Strategic Goals


Objectives (related to each goal)

Documents

© 2007 Virtue Ventures. Licensed under the Creative Commons Attribution 3.0 License ( Strategic Planning for