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STRATEGIC MANAGEMENT

GHAZALI DERAHMAN

PEJABAT SETIAUSAHA KERAJAAN

PULAU PINANG

WHAT IS STRATEGY?

“The science of planning and directing large scale military operations, maneuvering forces into the most advantageous position prior to actual engagement with the enemy”.

“Know your enemy and know yourself, and in a hundred battles you will never be defeated”.

Sun TzuThe Art of War

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How does strategy fit in? strategy is the process by which individuals and

organisations make choices about scarce resources so as to satisfy wants over time in an environment of uncertainty. They are aided in this process by market and non-market forces.

Organisational Strategy “A strategy is defined as a pattern, of purposes, policies,

programmes, actions, decisions, or resource allocations that define what an organisation is, what it does, and why it does it. Strategies can vary by level function, and by time frame.”

(Bryson, 1995, p.32)

What is Management?“ is a group of people working together in a coordinated manner to achieve group results”.

“is the process of coordinating work activities so that they are completed efficiently and effectively with and through other people”.

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What is Strategic Management? A set of managerial decisions and actions that determines

the long-run performance of a organisation

It includes environmental scanning (both internal & external ), strategy formulation (strategic & long-range planning), strategy implementation, evaluation and control.

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STRATEGIC MANAGEMENTWhere are we now? Where do we want to be?

Know yourself Take actions Achieve success

Analytical Strategic choice Vision

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IN SIMPLE TERMS

A process by which top management determines the long-run direction and performance of the organisation

The process of driving the strategic planning effort to culminate in choosing and implementing various strategies to best fit the organisation’s needs

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Strategic management is much more than planning; it involves taking action and making things happen.

It involves planning, leading, organizingand control.

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Human resources

Financial resources

Physical resources

Information resources

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Co

ntr

oll

ing

Leading

Org

an

izin

g

Source: Adapted from Griffin, 2001

The Management Process

and Functions

Inputs from the

Environment

Efficient & Effective

Organizational

Performance

Decision

Making

• Products

• Services

• Goal Attainment

Planning

CANOE THEORY

The Canoe Theory: A Business Success Strategy for Leaders and

Associates by Dave Hibbard

CANOE THEORY• Think of your organization as a long canoe

• The canoe has a destination

• Everyone in the canoe has a seat and paddle

• Everyone is expected to paddle

• Those who won’t paddle have to get out of the canoe

• Those who prevent others from paddling have to re-adjust or get out of the canoe

• There are no passengers in the canoe

• The canoe theory understands crisis

• The canoe theory says you have the right to be happy

JABATAN PERKHIDMATAN AWAM

Public Service Department

TS 1

MENDAYA UPAYA:

MENINGKATKAN

KOMPETENSI,

PRESTASI,

PRODUKTIVITI &

DAYA INOVASI

PENJAWAT AWAM

TERAS

STRATEGIK

TS 2

MEREKAYASA:

MENINGKATKAN

KEUPAYAAN DAN

MEMBERI NAFAS

BAHARU KEPADA

ORGANISASI

TS 3

MERAKYATKAN:

MENINGKATKAN

KECEKAPAN

DAN

KEBERKESANAN

PENYAMPAIAN

PERKHIDMATAN

AWAM

TS 4

KETERANGKUMAN:

MEMPERLUAS

JARINGAN KERJA

& KOLABORASI

STRATEGIK (MULTIPLE-HELIX)

DALAM DAN

LUAR NEGARA

TS 5

NILAI BERSAMA:

MEMBUDAYAKAN

PATRIOTISME,

NILAI-NILAI

MURNI, ETOS

DAN INTEGRITI

KS 1

PENJAWAT AWAM

YANG

BERTENAGA,

BERILMU,

BERWIBAWA,

KOMPETEN,

INOVATIF DAN

PRODUKTIF

KEBERHASILAN

STRATEGIK

KS 2

ORGANISASI

YANG DINAMIK,

KEJAT, TERBUKA,

TANGKAS DAN

BERKEUPAYAAN

TINGGI

KS 3

PENYAMPAIAN

PERKHIDMATAN

AWAM YANG

CEPAT, TEPAT,

BERKUALITI,

PROAKTIF DAN

RESPONSIF

KS 4

KEPUTUSAN

BERSAMA (INFORMED

DECISION) DAN

RASA SEPUNYA

BERDASARKAN

KEPELBAGAIAN

PERSPEKTIF

KS 5

CINTAKAN

NEGARA,

DAYA TAHAN

YANG TINGGI,

BERETIKA DAN

BERINTEGRITI

PERKHIDMATAN AWAM YANG BERPRESTASI TINGGI, BERINTEGRITI, DINAMIK

DAN BERJIWA RAKYAT MATLAMAT

NEGARA BERPENDAPATAN TINGGI, INKLUSIF DAN LESTARI

AGENDA

TRANSFORMASI

NEGARA

VISI NASIONAL

KEUTUHAN TADBIR URUS; KETINGGIAN SEMANGAT PATRIOTISME, BUDI PEKERTI, ETIKA

KORPORAT DAN INTEGRITI; KEUPAYAAN EKOSISTEM DAN PERSEKITARAN PERKHIDMATAN

AWAM YANG HARMONI SERTA LESTARI; DAN KEMAJUAN SAINS DAN TEKNOLOGI

PRINSIP

DAN LANDASAN

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KERANGKA KERJA TRANSFORMASI JABATAN PERKHIDMATAN AWAM MALAYSIA (JPA)

“If you don’t know where you are

going, any road will take you there” -

George Harrison

WHY STRATEGIC MANAGEMENT?

Rapid environmental changes

Increased stakeholder demands

Resource constraints

Organisational complexity

These forces require us to:

Think strategically

Formulate effective strategies

Implement strategies, and

Evaluate performance and outcomes

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The Benefits of Strategic Management

The 3 most highly rated benefits of strategic management are:

Clearer sense of strategic vision for the organisation

Sharper focus on what is strategically important

Improved understanding of a rapidly changing environment

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• Encourage forward thinking

• Provide clear direction and objective

• Facilitate allocation of resources

• Facilitate internal communication and

cooperation

• Identify new opportunities for exploitation

• Prepare for threats

• Avoid human and organisational inertia

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THE STRATEGIC MANAGEMENT PROCESS

REQUIRES THE INVOLVEMENT OF KEY

PEOPLE IN AN ORGANISATION AND IT

MUST BE DONE ON A CONTINUAL BASIS

Five Tasks of Strategic Management

1. Defining business, stating a mission & forming a strategic vision

2. Setting measurable objectives

3. Crafting a strategy to achieve objectives

4. Implementing & executing strategy

5. Evaluating performance, reviewing new development & initiating corrective adjustments.

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Strategic Management Model

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STRATEGIC

MANAGEMENT

Environmental

Analysis

Strategy

FormulationStrategy

Implementation

Evaluation &

Control

PESTELS

McKinsey 7’S

Stakeholders

Analysis

SWOT

Mission

Vision

Policy

Objectives

smart

STRATEGIC MANAGEMENT

FRAMEWORK

Strategy Canvas

Ishikawa

Fish Bone

A. Environmental Scanning: Situational Analysis

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SWOT Analysis

Strength Weakness

Opportunity Threat

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The 7-S Framework: Internal

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Shared

values

Structure

Staff

StyleSkills

SystemsStrategy

PESTELS Analysis

Politics

Economics

Social

Technology

Ecology

Legal/procedures

Security

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Defining “Stakeholders” so a “Vision” can be written

Stakeholder Responsiblity and Accountability

Types of Stakeholders

Stakeholder Type 4

Mixed Blessing

Strategy:

Collaborate

Stakeholder Type 3

Nonsupportive

Strategy:

Defend

Stakeholder Type 1

Supportive

Strategy:

Involve

Stakeholder Type 2

Marginal

Strategy:

Monitor

High

Low

Stakeholder’s

Potential for

Cooperation

With Organization

High Low

Stakeholder’s Potential for Threat to Organization

?

Stakeholder mapping

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Power to Influence?

Who?

Strategy? View of Change?

Benefits? Reaction?

Why? Impact?

Stakeholder Analysis

• Who - people who have control or will be affected (+/-) by the change

• View of Change - how will they be affected

• Reaction - what are they doing (avoiding, creating barriers, highjacking, supporting)

• Impact - positively, negatively or neutral

• Power - to influence (H, M, L)

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Stakeholder Analysis• Reasons - for resistance or support (failed to

benefit, fear, other more pressing priorities)

• Benefits (Influential Others) - allies who may

not have immediate benefit but critical for

long-term

• Strategy - what needs to be done to make the

change happens

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Ishikawa Diagram/AnalysisFor Administrative & Service

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Problems/issues

PoliciesPeople

EquipmentProcedures

Strategy Canvas for Developing Excellence Workers

High

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Low Centralised

Power

Human

Factor

System/

Procedures

No information

Up-dated

Unconducive

Learning

environment

Mechanistic

structure

Current Curve

Desired Curve

The Four Action

Framework

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A New

Value Curve

REDUCE

Which factors

should be

reduced well

below the industry’s

standard?

ELIMINATE

Which of the factors

that the industry

takes for granted

should be eliminated

CREATE

Which factors

should be

created that the industry

has never offered?

RAISE

Which factors

should be raised well

above the industry’s

standard?

What is a strategic plan? A Strategic Plan maps out

Where organisation is heading

Short and long range performance targets

Actions of management to achieve outcomes

A Strategic Plan consists of A strategic vision & mission

Performance objectives

Comprehensive strategy for achieving the objectives

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Mission Statements Statements that explain who we are

Statements that explain our direction, our purpose, our reason for being exist What difference do we make?

Statements that explain what makes us unique Values

People

Combination of products and services

Vision StatementA statement that clearly defines the organisation’s

“reason” for being in business

Should significantly stretch the resources and capabilities of the organisation

Should inspire people in the organisation to achieve things they never thought possible

Should unite people in the organisation toward the pursuit of one common goal

Components of a Vision Statement

Core ideology Core Values - timeless guiding principles

Core Purpose - reason for being exist

Envisioned future Big Hairy Audacious Goals (BHAG) -

clearly articulated goals

Vivid description - a description of what success and the future will be like

Recognition of service to stakeholders

Mission Statement• The mission statement of an organization is

normally short, to the point, and contains the following elements:– Provides a concise statement of why the

organisation exists, and what it is to achieve;

– States the purpose and identity of the organisation;

– Defines the organisation's values and philosophy.

Strategic Visioning It is a description of what the organisation is

capable of becoming or would like to become ……

Strategic vision is dynamic process.

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Mission Mission is a purpose or reason for the

organisation’s existence.

It tells what the organisation is providing to the society.

It promotes a sense of shared expectations in employees.

Communicates a public image to important stakeholder groups.

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Developing a Vision & Mission Begins with thinking strategically

About organisation’s future makeup &

Forming vision of organisation’s future in 5-10 years

Task is to

Inject sense of purpose into organisation’s activities

Provide LONG-TERM DIRECTION

Give organisation STRONG IDENTITY

Decide “WHO we are, WHAT we do & WHERE we are heading”

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Developing a Vision & Mission

An organization’s MISSION

Reflects management’s vision of what organisation seeks to do & becomes

Provides a clear view of what organisation is trying to accomplish for its customers

Indicates intent to stake but a particular business position

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Specific questions that help form strategic vision

What business are we in now?

What business do we want to be in?

What will our customers want in future?

What are expectations of our stakeholders?

Who will be our future competitors?

What should our competitive scope be?

How will technology impact our organisation?

What environmental scenarios are possible?

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Why a shared vision matters A strategic vision widely shared among all

employees functions similar to how a magnet aligns iron filings

When all employees are committed to firm’s long-term direction, optimum choices on business decisions are more likely

Individuals & teams know intent of firm’s strategic vision

Daily execution f strategy is improved

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VISI

Mengukuhkan keluarga ke arah pewujudan masyarakat penyayang,

penduduk berkualiti dan bangsa Malaysia yang progresif.

MISI

LPPKN komited untuk bertindak sebagai agensi utama dalam menjadikan

Malaysia sebagai negara yang berperibadi mulia hasil daripada keluarga

yang kukuh, berakhlak, sihat, berilmu dan harmoni.

Sumber: http://www.lppkn.gov.my/index.php?lang=ms

Dicipta pada Khamis, 08 Mac 2012

Vision Statement

To be a Leading Oil and Gas Multinational of Choice

Mission Statement

• We are a business entity

• Petroleum is our core business

• Our primary responsibility is to develop and add value to this

national resource

• Our objective is to contribute to the well-being of the people and the

nation

VISI

Pentadbir Cukai Terunggul

MISI

Memberikan perkhidmatan percukaian yang berkualiti dan

berintegriti ke arah meningkatkan pematuhan sukarela

Lembaga Hasil Dalam Negeri Malaysia

Company Principle (Mission Statement)

Maintaining a global viewpoint, we are dedicated to

supplying products of the highest quality, yet at a

reasonable price for worldwide customer satisfaction.

Company Philosophy

Providing joys to the world through new challengesAnd the realization of dreams

Our vision

To be the largest low cost airline in Asia and serving the 3 billion people who are

currently underserved with poor connectivity and high fares.

Our mission

• To be the best company to work for whereby employees are treated as part of a

big family

• Create a globally recognized ASEAN brand

• To attain the lowest cost so that everyone can fly with AirAsia

• Maintain the highest quality product, embracing technology to reduce cost and

enhance service levels

Visi

Untuk menjadi institusi pembelajaran sektor awam yang unggul.

Misi

Untuk membangunkan modal insan sektor awam yangkompeten melalui pembelajaran yang berkualiti.

Visi PSUKPP

Menjadi sebuah organisasi awam bertaraf antarabangsa menjelang 2015.

Misi

Memacu kegemilangan organisasi melalui sistem tadbir urus yang cekap, akauntabiliti dan telus.

SMART

S - SPECIFIC

M - MEASURABLE

A - APPROPRIATE

R - REALISTIC/RESULTS ORIENTED

T - TIME BOUND

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EVALUATING AND SELECTING STRATEGIES

SUITABILITY: Does it exploit organisational strengths and

opportunities? Does it overcome weaknesses and threats? Does it match objectives and values?

FEASIBILITY: Can the strategy be funded? Can the organisation perform to the required level?

ADEQUACY AND ACCEPTABILITY: Will the strategy achieve the objectives? Will the strategy be acceptable to all stakeholders?

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C. Strategy Implementation

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Programmes

Budgets

Procedures

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•Programmes: Activities and steps needed

to accomplish a plan

•Budgets: Organisation’s financial

allocation and detailed cost of

each programme

•Procedures: Standard Operating

Procedures (SOP) describe in

detail how a particular task or

job is to be done

Assessing Organizational Readiness for Strategy Implementation

Stakeholder Outcomes

How adequately is the organisation meeting the needs of all its stakeholders-customers, employees, and investors?

Strategic Tasks

What are the strategic tasks for the organizations?

Is the top team clear on and in agreement with the strategic tasks?

Is the rest of the organization clear on and in agreement with the strategic tasks?

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Assessing Organizational Readiness for Strategy Implementation

Organizational Capabilities

Does the organization have appropriate levels of coordination or teamwork among the individuals and groups critical to accomplishing a given strategic task?

Does the organization have access to the necessary technical and managerial competencies to accomplish the task?

Is there the necessary level of commitment to accomplish the strategic task?

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D. Evaluation and Control

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Programmes

Budgets

Procedures

Evaluation and Control:

Organisation’s activities, performance and results are monitored

Actual performance is compared with the

desired performance

Able to pinpoint weaknesses of previous strategic plan

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Good Strategic Plan • Address critical performance

issues

• Create the right balance between what the organization is capable of doing vs. what the organization would like to do

Good Strategic Plan

• Cover a sufficient time period to close the performance gap

• Visionary – convey a desired future end state

A Good Strategic Plan Should

• Flexible – allow and accommodate change

• Guide decision making at lower levels

Environmental

Analysis

Strategy

FormulationStrategy

Implementation

Evaluation &

Control

Budgets

Programmes

Procedures

PESTELS McKinsey 7’S

Stakeholders

Analysis

SWOT

Mission

Vision

Policy

Objectives

smart

STRATEGIC MANAGEMENT

FRAMEWORK

Strategy Canvas

Ishikawa

Fish Bone

Scenario

Building

STRATEGIC

MANAGEMENT

PROGRAM/AKTIVITI/INISIATIF

OBJEKTIFTEMPOH

MASAPELAKSANA

OUTCOME/KPI

L A N G K A H S T R A T E G I K / S T R A T E G I : _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

KANDUNGAN BUKU

Pelan Strategik

i. Perutusan Ketua Organisasi

ii. Ringkasan Eksekutif

iii. Pengenalan

iv. Visi, Misi dan Objektif

v. Peranan dan Fungsi

vi. Kod Etika

vii. Nilai-nilai Teras

viii. Hala Tuju dan Rasional Pelan Strategik

ix. Cabaran-cabaran

x. Strategi Teras

xi. Pelaksanaan Strategi

xii. Penutup

xiii. Pelan Tindakan Strategik - Lampiran A DO

CU

ME

NT

AT

ION

“The thicker the planning document, the more useless it will be”(Brent Davies: 1999)

• PRAKATA

• SEJARAH

• PUNCA KUASA

• PERANAN

• STAKEHOLDERS DAN PELANGGAN

• SENARIO PERUBAHAN PERSEKITARAN

• AGENDA TRANSFORMASI MAMPU

• VISI, MISI DAN MOTO

• NILAI TERAS SEPUNYA

• TUMPUAN STRATEGIK MAMPU

• TERAS STRATEGIK MAMPU

• STRATEGI DAN PELAN TINDAKAN

• RANGKAIAN STRATEGIK

• ELEMEN PENENTU KEJAYAAN

• PENUTUP

KANDUNGAN PELAN STRATEGIK MAMPU