Strategic Planning Kit For Dummies Cheat Sheet, Part of Strategic Planning Kit For Dummies Cheat Sheet. Use self-service reports and dashboards in Smartsheet to provide real-time visibility into resources, status, and performance, so you can rapidly align operations with strategy. Establish your competitive advantage and your vision. A company creates demand for a product or service instead of fighting over it, so there is plenty of opportunity for everyone. Diamond-E Framework: The Diamond-E framework helps identify possible gaps in an organization to decide whether or not to pursue an opportunity. “The framework you choose would have to deal with the sophistication of your business,” says Ted Jackson, founder and managing partner of ClearPoint Strategy. Next, list the specific activities you must implement and who will participate in those activities. Try Smartsheet to discover why millions of professionals around the world use it to move from idea to impact fast. The organic model works well for organizations where traditional methods feel static and obsolete. The process works by gathering people to talk about a highly inspirational vision for the company. The advantages you identify help determine what you need to do in order to achieve them. Scenario Model: When used in conjunction with other models, the scenario model can help you identify goals, as well as issues around them, by using scenarios that might arise. See who is excited about the planning process. However, some critics of this model say it functions more like an internal development plan than a strategic plan. Though Wright encourages using different frameworks, he echoes Jackson’s warning to not use different models at the same time. The basic model of strategic planning is the most common and simplistic approach. Like the name implies, the inspirational model can be energizing to participants, but also have less of a strategic impact on an organization than other, more formal models. Strategic planning is a team process that sets up how your company will accomplish its goals. Review your current strategic position and clarify your mission, vision, and values. With this, you can begin to map out the plan for your company’s priorities, mission, and vision. Cascade’s Wright says the balanced scorecard works well for medium and large companies that don’t change very quickly or don’t need to make radical changes. Even with the ever-changing healthcare industry, strategic plans will continue to help organizations stay focused on their goals and objectives. What is Strategic Planning? It functions as both a strategic planning and management system, and it helps connect a company’s plan to the operational elements that make it happen. The map shows how different items interact with each other in various ways, including a cause-and-effect relationship. Strategic planning is an organization’s process for defining their strategy so that they can accomplish specific goals and objectives. It also works for companies that are new to strategic planning. He adds that it is an easy model because it does not involve much jargon and focuses on the future. There are different ways to present a strategic plan — for example, it can be a written document, a spreadsheet, or an animated presentation. Since it helps to identify the attractiveness of an industry and a firm’s strengths, the grid can help evaluate market share and identify areas for development. Issue-Based or Goal-Based Model: A step up from the basic model, this model is better for more established businesses. Strategy Mapping: This approach helps organizations design and communicate their strategies. Often, succession planning happens as a part of the overarching strategic planning process — for example, when you look at the resources available to a company and their productivity. Each section includes directions. People can refer back to it in order to stick to the overall plan when working on tasks or making decisions. To learn how to write a strategic plan, read this article. Lay out the road to connect where you are now to where you’re going. An elevator pitch is a brief description of your business. This strategic planning framework viewed an organization from four perspectives and recommended developing objectives, measures (KPIs), goals and initiatives in regard to each perspective: Financial or Stewardship Customer & Stakeholder Internal Process Organizational Capacity or Learning and Growth Strategic planning has a basic overall framework. “We try to let the mission and goals emerge from the conversations rather than starting there.”. Assess Industry, Competitor & Customer Trends. Strategy mapping helps you identify key goals and unify those goals into strategies. If you’re struggling with the model, it might be you.”. Framework plan. There is no right or wrong way to decide which model or framework to use for your strategic planning process. Whether you are creating a framework for … Here’s how objectives, measures, and projects interact: You have a … Instead of trying to increase profits, turn your efforts toward growing your business. The issue- or goal-based model evolves from the basic model and results in a more comprehensive plan. Most people know what they need to do; it’s getting the traction and about democratizing the process. You've seen how the four quadrants of a SWOT analysis work. Kaufman Model: Also called mega planning, the Kaufman Model relies on a needs assessment. In certain cases, strategic planning is not an immediate need — for instance, when a company is failing financially or is autocratic, or when a major upheaval is occurring. 111-352). For example, governmental organizations or companies that receive grant funding might need to produce a strategic plan that fits into a formula the government dictates. It helps companies that want to try to grow sales volumes or have it as a major focus area. Introduced in 1979, it is one of the oldest strategic planning frameworks. Then pick the most likely scenario and discuss strategies to address it. They are the beliefs you have that will … By answering four main questions, an organization should be able to create a vision statement to take it through the rest of the planning process. Strategic Planning and Alignment Definition: A system that ensures agency human capital programs are aligned with agency mission, goals, and objectives through analysis, planning, investment, and … There are several variations based on the idea, including PESTEL or PESTLE (when you also consider environmental and legal factors) or STEEPLED, where you consider sociocultural, technological, economic, environmental, political, legal, education, and demographic information. In addition, sections includes links to related, additional information to help the reader fill out that section of the framework. Strategic planning helps firms prepare beforehand; it lets the company initiate influence instead of just responding to situations. Market penetration focuses on selling even more of a current product or service to the same people. Note that available human resources can be both strengths and weaknesses. PEST Model: The PEST (political, economic, social, and technological) approach looks at elements of the external environment, including the forces in its name. To ensure that the plan serves its purpose, the institution — as embodied in its strategic planning team — must fully understand its current state, as well as the factors that will impact and drive it into the desired future state. after disasters and improving the Agency’s execution of its fundamental mission of helping people. Strategic Framework Strategic Planning and Directions The Strategic Direction planning process has spanned three academic years to date. Value Disciplines: This flexible framework focuses on what an organization is already good at and builds on it. Place objectives within those perspectives. At its core, succession planning relies on developing and identifying new leaders. Like models, strategic planning frameworks help an organization through the strategic planning process. Smartsheet is an enterprise work execution platform that is fundamentally changing the way businesses and teams work. There are 10 standard steps in the cycle, but Bryson stresses they are not sequential and often happen simultaneously. “It’s a framework, not a recipe. One of the more popular strategic planning frameworks is the balanced scorecard. To learn more about the basics of strategic planning, read this article. The key is to figure out which one best applies to your company and its needs — for example, VRIO can help you create a vision statement, and BSC can help keep plans on track. The first horizon deals mostly with core activities in which a company is already engaged. A strategic plan includes many sections. General Electric Model: Also known as the McKinsey Matrix, this model looks at the industry externally versus the internal forces. Core values describe your beliefs and behaviors. This document sets out a framework to align strategic and annual performance planning with emphasis on the outcomes oriented monitoring and evaluation approach led by the Presidency. Soon to be by Smartsheet. The familiar Smartsheet interface that is designed for how people actually work leads to rapid and broad adoption across your organization. Introduction This manual offers a framework for strategic planning with suggestions developed specifi- Customers’ Bargaining Power: Can customers pressure you to react to their demands? In addition to the models and frameworks listed above, there are several other types, including the following: The Stakeholder Theory: This approach focuses on adding value to specific groups of people, including employees, customers, the community, shareholders, and society. Initiate the strategic planning process within their organization. Created by professors W. Chan Kim and Renee Mauborgne in 2005, the blue ocean strategy is a relatively new planning framework. The organic model relies on everyone having a shared vision and being willing to openly discuss how to get there using common values. Lastly, create a simple monitoring plan to make sure your organization stays on track. Companies can use the VRIO framework to evaluate its resources and capabilities as part of the overall strategic planning process. The Threat of Other Substitute Products or Services: Is there a competitor on the market that your customers could use instead of your product or service? Additionally, some methods work well together. Industries in that space define and accept the boundaries that exist, and they play by the rules. It isn’t the same for frameworks, according to Wright. Download IT Strategic Planning Template - Excel. Even managers who avoid the first two traps may end up using a framework that leads them to design a strategy entirely around what the company controls. Diversification is all about new products and services and new markets; this carries the most risk, but potentially offers large gains. Agile Strategic Planning Model: The flexibility of Agile planning allows for growth and change in strategic planning. You can think of it as a technology roadmap that outlines where IT can do its part to implement a company’s strategies. Though strategic planning has changed over the years, the need remains for organizations to have some kind of vision and mission, as well as an outline about how to achieve them. 103-62) and the GPRA Modernization Act of 2010 (P.L. Not to oversimplify the strategic planning process, but by placing all the parts of a plan into the following three areas, you can clearly see how the pieces of your plan fit together: Discover why over 78,000 brands trust Smartsheet to get work done. So it’s critical that these elements are well thought-out and defined. The vision statement identifies your company’s purpose on a higher level, and the mission statement outlines what happens within the organization to achieve that vision. Companies that use the balanced scorecard try to look at themselves using four unique perspectives to get a better understanding of their planning: Stakeholders and customers the company is serving, An internal review of how the company is operating, Learning and growth (including capacity, infrastructure, technology, and culture). It has a long-term horizon, explicates the context and rationale for why the regeneration project is … Without a strong mission statement, our strategic planning framework would be ineffective. This approach is dynamic and fluid, and it works well for businesses that want to go deeper into strategic planning but have the following concerns: Limited past success reaching ambitious goals, No buy-in for the strategic planning process. Strategy maps are often set up in the following manner: List the four perspectives (financial, customer, process and learning, and growth) horizontally. People need to be involved.”. Strategy mapping is often part of (but is not exclusive to) the balanced scorecard framework. Strategy Map. People within an organization get really confused,” Jackson says, adding that people who have some knowledge of specific models or frameworks will not understand different terms and ideas, and they’ll probably be afraid to ask. DOT is committed to ensuring that information is available in appropriate alternative formats to meet the requirements of persons who have a disability. The third horizon involves new directions, possibly including research and new programs. The scenario model looks at what is happening outside of an organization, including regulatory, demographic, or political forces, to determine how they can impact what is happening inside of a company. Because the graphic is visual and simple, it is an easy way to show how one objective impacts others. Value: Using a particular resource, can you exploit an opportunity or get rid of a threat? John M. Bryson, McKnight Presidential Professor of Planning and Public Affairs at the Hubert H. Humphrey School of Public Affairs, University of Minnesota and author of Strategic Planning for Public and Nonprofit Organizations: A Guide to Strengthening and Sustaining Organizational Achievement, created the Bryson model. Over 78,000 brands and millions of information workers trust Smartsheet to help them accelerate business execution and address the volume and velocity of today's collaborative work. Strategy mapping often falls under the umbrella of a BSC, but strategy maps can also stand alone. Jackson advises simplifying some frameworks and adapting them, but he has some cautionary advice about trying to combine parts of different frameworks. The world of healthcare is changing, and healthcare organizations have to adapt. Additionally, you can find templates for succession planning here. How will we get there? An agency strategic plan is one of three main elements required by the Government Performance and Results Act (GPRA) of 1993 (P.L. In this matrix, market development concerns selling more of an existing product or service to a new group of people. A strategic framework should briefly discuss how each stakeholder group—teammates, organization, and customers—will benefit from the completion of the initiative. The balanced scorecard takes more than financial profits into account when measuring success. You add a framework on top of the [strategic plan] to slice and dice the model.”. SWOT Analysis or SWOT Matrix: SWOT (strengths, weaknesses, opportunities, and threats) offers a way to examine both internal and external forces impacting your company. The Basic Model: Sometimes called a simple strategic planning model, the basic model involves creating a mission statement, goals, and strategies. “If you have a cultural challenge in your organization about getting excited about planning, the model you pick is important. Gap planning is the analysis and evaluation of that difference. Instead of operating as a typical circus, it found and expanded on a niche. The plan will help make sure you purchase the right assets and work with existing technology effectively. Porter’s Five Forces approach helps companies assess the competitiveness of the market. Initiate and agree on a strategic planning process, Clarify organizational mission and values, Assess the external and internal environment to identify strengths, weaknesses, opportunities, and threats (SWOT), Identify the issues facing the organization, Formulate strategies to manage the issues, Review and adopt the strategies or strategic plan, Establish an effective organizational vision, Develop an effective implementation process, Reassess the strategies and the strategic planning process, Using this cycle, changes to the norm often happen. “The major driver [for picking a model or framework] is what type of business you are and what you want to accomplish,” Wright explains. In a strategic business framework for organizational planning and success, your strategies, goals, and action plans intertwine and build upon each other to create the appropriate steps to accomplish your mission and vision. If your organization is in trouble, you might want to focus on a framework or model that addresses immediate issues rather than tackles the longer term. The strategic planning frameworks above are all meant, in different ways, to help you organize your objectives, measures, and projects. All Rights Reserved Smartsheet Inc. This model focuses on the impact an organization can have on society and clients. McKinsey’s Strategic Horizons. BSC is well-known and works for companies of varying sizes. However, this is a misconception that will leave you exhausted and unfulfilled more often than not. It emphasizes the journey over the destination. Existing revenue is placed here, so goals mostly deal with improving margins and processes, as well as maintaining incoming cash flow. The idea behind a model is to tease out the ideas,” says Tom Wright, CEO and Co-Founder of Cascade Strategy, a software company based in Sydney, Australia, with offices all over the world. The steps vary. Because employees move on or retire, a company needs to have a plan in place to assume new and important roles. Strategic human capital planning refers to when a company looks at how people — and how to manage them — go along with the organization’s strategic goals. Explain the differences between strategies, goals and objectives. The inspirational model works well for organizations looking to lift the spirits of a staff or to quickly produce a plan. “I think if you read a book and try to implement it exactly [as the book outlines it] to your organization, you will fail,” he says. The five themes listed below emerged during this planning process and WSU's Strategic Planning and Strategic Directions for 2015-2020 is laid out below. You can use the following HR strategic plan to list, assess, and plan for future program strategies. “You start with purposes in mind and then figure out how to get there.”. Jump-start new projects and processes with our pre-built sets of templates, add-ons, and services. This strategic area of focus aligns with DNTP’s intent to solve contemporary public health problems related to environmental exposures and includes the following program areas: The IT plan should also include a SWOT analysis, goals, and objectives. Storyboarding techniques and open dialogue are often a part of the organic model, and everyone is encouraged to participate openly. By having a structured planning process, rather than following models that are more organic and reactionary, healthcare entities can survive and succeed. New technologies will continue to emerge. Strategy mapping can help an organization reach its goals by providing a visual tool to communicate a strategic plan. This accessibility strategic plan framework serves as a starting document that will guide the development of the full strategic plan. The idea of a blue ocean is to create an uncontested market space for your company. As the name implies, the organic model of strategic planning is more of a free-spirited conversation, rather than a set process. Fast-growing and startup organizations might find McKinsey’s framework helpful. Constantly, people undervalue the role of buy-in with strategic planning. The focus is more on learning and less about the method of strategic planning. Balanced Scorecard (BSC): The balanced scorecard system strives to connect big-picture elements with operational elements. The cornerstone of Agile is being able to respond quickly to change, which seems like the antithesis of strategic planning. Below is a list of some of the most common frameworks and models: Alignment Model: This model helps align your mission statement with available resources. In the plan, you outline the mission, resources, programs, and support your organization needs to ensure it fulfills its vision. Our world-class consulting team is here to help your organization realize the lasting advantage of Smartsheet. VRIO (value, rarity, imitability, and organization) is a framework that deals primarily with the vision statement, rather than the entire strategy for a company. The issue-based model requires organizations to identify their most important current issues, suggest action plans to address those issues, and include that information in the strategic plan. To be clear, the strategic framework is not a repeat of a project plan or a business case. Free your team from content sprawl with Brandfolder, an intuitive digital asset management platform. The strategic planning process is a continuous cycle, involving plan design, implementation, and evaluation, as well as stakeholder engagement, the maintenance of strategic planning mechanisms, and alignment with the budgeting process. OK, let's get this out of the way first - we hands-down think … The planning process can help companies identify specific hiring needs. The real-time method of strategic planning is even more fluid than the organic model. See why Smartsheet is the platform you need to drive achievement, no matter the scale of your ambition. The first step of any strategic planning starts with … When Drs. Show cause-and-effect impacts between objectives and across perspectives. Take the guesswork out of alignment by creating a company-wide framework for implementing the new strategy and keeping everyone’s work aligned. Core Values. “There is a ton of value in changing frameworks and using multiple frameworks at the same time [to view things differently],” he says. The scenario model works well for businesses that need help planning for several potential situations. Companies use the balanced scorecard to do the following: Align the daily work to the longer-term strategy. Strategic planning may be utilized on a large scale, such as planning for business growth over several years or to help a nonprofit or … Still, the following general ideas persist: There will be a continued need to provide quality patient care. Just as there are many approaches to presenting a strategic plan, you have several ways to frame or model your plan. The terms strategic planning framework and strategic framing models are often used interchangeably, but some say they are different. Real-Time Model: This a fluid process that works best for companies that operate in a rapidly changing environment. Operating costs and government regulations will impact the bottom line. The volatility of the business environment causes most firms to adopt reactive strategies and not proactive ones. Wright recommends a 70/20/10 split between the three horizons. The competition can be bloody, which leads to the term red ocean. VRIO comes into play after a company creates a vision statement, but before the rest of the planning process. Download HR Strategic Planning Template - Excel. NOTE: The framework depicts a useful format, but should be duplicated into an editable version, for example, into … It involves looking at both the internal and external environments of multinational organizations. Some models are sexier than others,” Wright explains. McKinsey’s Strategic Horizons framework focuses on growth and innovation by categorizing goals into three categories: the core business, emerging opportunities, and new business.