Using an Organization’s Vision to Build a Strategic Plan

26 April 2007

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Agenda

• The Role of Vision in Strategy Development• Examples of Using a Vision to Develop a

Strategic Plan• Balancing Structure and Chaos

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Why Strategic Planning Starts with the Vision

“Would you tell me, please, which way I ought to go from here?”

“That depends a good deal on where you want to get to,” said the Cat.

“I don't much care where,” said Alice.“Then it doesn't matter which way you go,” said the Cat.

Lewis Carroll, Alice's Adventures in Wonderland

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The Vision and the Strategic Plan

• The vision is the “what”, the strategic plan is the “how”– The vision outlines an organization’s goals for its future– The strategic plan outlines the actions the organization

needs to take to implement its vision– Understanding what the organization aspires to accomplish

and why are the keys to successful strategic plan development

• Organizations have different types of visions that require different approaches to strategic planning– Reactive – Responding to environmental changes or

stakeholder requirements– Proactive – Staying ahead of the competition– “The enterprise competing on the edge will establish the

pace of change in its industry and which new products and services will set the standard, rather than reacting to its environment and the forces that are thrust upon it.” - Kathleen Eisenhardt and Shona Brown, Competing on the Edge: Strategy as Structured Chaos

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Strategy Development is a Continuous Process

Source: Toffler Associates

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Air Force Reserve – An Unrivaled Wingman

• To deliver sovereign options for the defense of the United States of America and its global interests - to fly and fight in Air, Space, and Cyberspace (the same as the Air Force).

• 7 Aimpoints• 44 Vectors• 28 Pages

Source: Air Force Reserve Vision

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Implementing Strategy to Realize a Vision

Vision

Strategic Plan

PerspectiveGoals / AFR Vision Aimpoints) Goal Champion

Objective Letter Objectives

Objective Process

Champion MeasuresThreshold &

Target

Performance (Ideal - Actual

= Gap) Initiatives

M1-APosture to supply significant, sustained contributions to AEF and COCOM manpower requirements

M1-BImprove ability to forecast and program AFR participation in Air Force and Joint operations

M1-CShift strategic reserve capabilities from SelRes to IRR

C1-ARedefine the model for full-time support in the context of operational force policy

C1-BDevelop career progression guides for each participation category by AFSC

C1-CExpand toolkit for recruiting and retaining experienced warriors and leaders

C1-DExpand leadership development opportunities to all Reservists

C2-ATransition people and units from support functions into warfighting missions

C2-BMaintain current ratio between combat and mobility air force units

C2-CAdjust endstrength and manpower mix to support all Air Force missions

C2-DEvaluate mission/location mix against personnel availability and affordability

C2-EModernize facilities at DoD’s 67-year recapitalization rate

C2-FImprove transparency and utility of life-cycle financial data

C2-GApply AFSO21 principles to focus resources on mission performance

E1-AIdentify and employ innovative new means of addressing shortfalls in volunteerism

E1-BAlign training and inspection cycles with AEF cycles

E1-CDevelop a lifetime-of-service human resource strategy

E2-AIncorporate unit volunteerism into leadership assessments

E2-BBuild models for projecting long term impact of involuntary mobilization

E3-AProvide families and employers greater visibility into long-term demands on Reservists

E3-BExpand toolkit for commanders to engage and motivate employers

E3-CDevelop family support programs for non-unit, non-local assigned personnel

E4-AMake AFR personnel and units easier for Regular Component units to integrate in operations

E4-BParticipate in emerging platforms and missions primarily through association

E4-CEmploy multiple approaches toward parity in equipment with other components

E4-DRetain the same training standards as the Regular Component

MISSION

CORE

ENABLING

OPERATIONAL IN PEACE AND WAR

COMBAT READY

PROACTIVE FORCE PLANNING

FLEXIBLE PARTICIPATION

CLEAR PARTICIPATION EXPECTATIONS

LEVERAGED COMMUNITY CONNECTIONS

NEW HORIZON

Balanced Scorecard

FEEDBACKGovernance

Strategy Map

Source: Toffler Associates

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FBI – Reacting to Changing Priorities

• To protect and defend the United States against terrorism and foreign intelligence threats, to uphold and enforce the criminal laws of the United States, and to provide leadership and criminal justices services to federal, state, municipal, and international agencies and partners.

Source: FBI Strategic Plan 2004-2009

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Transforming to Counter Emerging Threats

Source: FBI Strategic Plan 2004-2009

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Google – Chaos by Design

• To organize the world’s information and make it universally accessible and useful. We believe that the most effective, and ultimately the most profitable, way to accomplish our mission is to put the needs of our users first. We have found that offering a high-quality user experience leads to increased traffic and strong word-of-mouth promotion.

Source: Google 2006 10-K

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Not Quite Enough Structure

• “We try very hard to look like we're out of control. But in fact the company is very measured. And that's part of our secret.” - Eric Schmidt, Google CEO, responding to a Time reporter’s question about whether or not Google has a grand strategy

• “We don't generally talk about our strategy ... because it's strategic. I would rather have people think we're confused than let our competitors know what we're going to do. That's an easy trade-off.” – Larry Page, Google Co-Founder, responding to the same question on grand strategy

• “The company's goal … is to determine precisely the amount of management it needs -- and then use a little bit less.” – Shona Brown, Google Senior Vice President for Business Operations, describing her role

• "Bad decision, moved too quickly, no controls in place, wasted some money." - Sheryl Sandberg, Google Vice President, Global Online Sales & Operations, on a multimillion dollar mistake

• "I'm so glad you made this mistake … because I want to run a company where we are moving too quickly and doing too much, not being too cautious and doing too little. If we don't have any of these mistakes, we're just not taking enough risk." - Larry Page, Google Co-Founder, upon hearing of Ms. Sandberg’s mistake

Sources: Time Magazine, February 12, 2006; Fortune Magazine, October 2, 2006

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Balancing Structure and Chaos

Source: http://www-mmd.eng.cam.ac.uk/ctm/idm/images/balance600_337.gif

• The Air Force Reserve mirrored the strategic planning process of the Air Force.• The FBI has transformed itself to counter new threats using a highly structured

strategic planning process.• Google has released over 80 new products and services by embracing chaos.

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Questions