A PRACTICAL APPROACH TO VISIONING AND STRATEGIC …

A PRACTICAL APPROACH TO VISIONING AND STRATEGIC

PLANNING

(Generic Sector Edition)

"If You Don't Set Your Own Goals, Then You Will Become Part of Someone Else's" -Bienati

"Vision Determines Our Destination Values Guide Our Direction"

"Vision Without Action is Merely a Dream Action Without Vision Passes the Time

Vision With Action Can Change the World" -Joel Arthur Barker

"Control your own destiny or someone else will" -Jack Welch

Thoughts prepared by Lawrence M. Bienati, Ph.D. with the practical wisdom of Gerry Abbott 1996, 1998, 2002, 2007, 2010 "To Educate the World" 800-483-7153 (phone) (web) bienati@ (e-mail) Updated January 2010

TABLE OF CONTENTS

Author's Introduction ............................................................................................................................ 1

Key Notes About Strategic Planning ............................................................................. 2

What is Strategic Planning? .................................................................................................................... 3

Why Do Strategic Planning? .................................................................................................................. 3

How is Strategic Planning Done? .......................................................................................................... 3

1. Diagnose the Business' Situation ...................................................................................... 4 2. Develop a Vision Statement .............................................................................................. 5 3. Develop a Current Mission Statement .............................................................................. 6 4. Develop Core Values (Mutual Team-Building Process) ................................................... 6

(Samples of various organizations)................................................................7 5. Develop Strategic Objectives ............................................................................................ 10 6. Develop Supporting Action Plans ..................................................................................... 10

(Sample Action Plan)................................................................................ 11 7. Determine Organization Impact (Checklist: Creating a Culture of Superior Execution) .. 13

Appendices

A Typical Questions Answered in a Strategic Planning Analysis ............................ 14 B Sample Strategic Plan: Version 1 ......................................................................... 15 B Sample Strategic Plan: Version 2 ......................................................................... 19 C The People Process of Strategic Planning ............................................................. 25 D Team Exercise: Preparation for The Planning Session.......................................... 27

Dear Student of Strategic Planning:

This article is a journey of organizational excellence. Prepared after 30 years of research and practice implementing strategic plans for over 200 clients in the private, public and non-profit sectors, this article presents a practical roadmap for the organizational leader. I prepared this article in the generic sense to capture some core concepts applicable in all organizational sectors. While the measures of success may differ in private, public and not for profit sectors, the approach to a successful visioning and strategy process for an organization remains universal in preparation, application, execution, commitment of senior leadership and engagement of staff in "enabling the vision."

Organizations "built to last" recognize that having some type of planning or "anticipation of future events" remains a key business practice. Additionally, an understanding of constituency needs, stakeholders and key business partners are but a few factors in developing a successful strategic plan. Moreover, it is becoming more prevalent to create a shared, collaborative vision to best serve the needs and expectations of the stakeholders served. Today, it is mission critical that the visioning and strategic planning process involve "the collaborative input" of both internal and external partners for long-term success. The emphasis of my work is on simplicity, practicality, flexibility and achievable success. Too often, we get lost in the management fad of the month, the theory of the moment and fail to realize the time-tested fundamentals for long-term success.

This article presents the following:

A discussion of the common elements (the template) found in a strategic plan A listing of typical questions most strategic plans will answer (appendix A) A sample strategic plan (appendix B) A process for facilitating a successful planning session (appendix C) An employee survey designed to solicit feedback in developing a successful strategic plan (appendix

D). We know that a key discriminator in a successful strategic plan encourages involvement and input from all stakeholders in the organization.

I hope you find this article helpful in building your organizational vision. In the words of Henry David Thoreau:

"If one advances confidentiality in the direction of his dreams, and endeavors to live the life in which he has imagined, he will meet with a success unexpected in common hours. If you have built castles in the air, your work need not be lost; that is where they should be. Now put foundations under them."

Nothing could better capture the essence of the visioning and planning process. Remember a vision is of no value without finding a way to make it real for the front line employee. A good leader can relate and align the vision all team members in a synergistic organization.

Good luck on your journey and stay in touch at or call us at 1.800.483.7153 and share your story and let is know how we assist you! Go forth, do good and leave an enduring legacy!

Lawrence M. Bienati, Ph.D. Lake Tahoe, California January 2010

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KEY NOTES ABOUT STRATEGIC PLANNING

"Leadership is an art. The effective practitioner has the unique ability to apply the various tools--both scientific and behavior--to maintain a motivated,

satisfied and productive team. Effective managers are in a constant learning mode and recognize that management excellence is a journey and not a

destination. In the 21st century, the management leader will emerge as the facilitator capable of identifying, developing and empowering the responsible employee.

This style of management will be the foundation for quality management excellence." -Larry Bienati

"All too often, new management innovations are described in terms of "best practices" of so-called leading firms. While interesting, I believe

such descriptions can do more harm than good, leading to piecemeal copying and playing catch-up. I do not believe great organizations have

ever been built by trying to emulate another, anymore than individual greatness is achieved by trying to copy another "great person." -Peter Senge, The Fifth Discipline

"The future ain't what it used to be." -Yogi Berra

"In times of drastic change, it is the learners who inherit the future. The learned usually find themselves equipped to live in a World that no longer exists." -Eric Hoffer

"There is only one boss: the customer. And he can free everybody in the company, from the chairman on down, simply by spending his money somewhere else. -Sam Walton. Founder of Wal Mart

"What is obscure, we eventually see. What is obvious, usually takes a longer time."

-Edward R. Murrow

"The difference is not one of skill or education or experience. It's a matter of values. To be customer-oriented is not be self-oriented." -Max Dupree, Herman Miller

"Service is just a day-in, day-out, ongoing, never ending, unremitting, preserving, compassionate type of activity." -L.L. Bean

"To serve the people at no cost to anyone, we the unwilling, led by the unqualified, to do the unnecessary, for the ungrateful."

-Group of employees who experienced the management flavor of the month

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Research has shown successful organizations that engage in some form of formalized visioning and strategic planning consistently and substantially outperform and exceed stakeholder expectations. A recent study by the Center for Public Communication, Inc. disclosed that in the 21st Century, the single issue that will most likely cause the demise of emerging organizations is their inability or failure to plan or think strategically (Truelson).

What is Strategic Planning?

Strategic business planning is creating a vision of the future, analyzing the organization and its environment as it is today, and then developing a formal program for guiding its development and success tomorrow. For most organizations, the strategic plan normally addresses a 3 or 5-year period into the future. Current practice however suggests that the present environmental contingencies suggest that a strategic plan may need review and adjustments every 6 months to ensure relevance. Many public sector agencies face the challenge of changing priorities with public officials and appointments occurring as often as every two years. This lack of stability poses planning challenges and limits effectiveness of a long-term strategic plan. Therefore, these realities should always be factored in the planning process.

Why Do Strategic Planning?

An overriding purpose for strategic planning is to create and place the organization at a competitive advantage in the future. Specific reasons for doing strategic planning include:

Defining in measurable and objective terms what is most important and needs to be achieved by the business. For the public sector organization it may be the agency's purpose or charter;

Anticipating problems and to taking positive steps to eliminate them;

Building commitment and orientation to a common purpose among the members of the senior management team, aligning governance and staff support functions and conform to stakeholder expectations;

Charting a clear direction and furnish "marching orders" for the organization and its employees to follow;

Ensuring consistency in decision-making and to allocating resources most effectively and efficiently in areas such as: people, equipment, facilities, product/service changes;

Establishing a firm basis for evaluating performance, both organizational and individual;

Providing a management framework which can be used to facilitate quick response to changed conditions, unplanned events and deviations from plan;

How is Strategic Planning Done?

As with strategic plans themselves, there are a variety of methods or techniques that can be employed in doing strategic planning. A variety of position levels are involved as well. Basic steps a top management team may consider in implementing a strategic planning approach include the following:

1. Diagnose the Business/Stakeholder Situation 2. Develop a Vision Statement 3. Develop a Mission Statement 4. Develop Core Values 5. Develop Goals 6. Develop Action Plans 7. Determine Impact on the Organization and Deliver Superior Execution

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The seven steps on the preceding page are advantageous to the organization and can be implemented separately. However, they are also interdependent on each other and when implemented in concert they can have a great impact on both the organization and the team's effectiveness.

1. Diagnose the Organization's Situation

An organization should begin its strategic planning process by taking a critical look at itself and the environment in which it operates. This situational diagnosis (often referred to as a SWOT analysis) entails looking at the organization internally and externally and identifying the strategic issues/decisions confronting the business. The internal examination involves defining the following organizational issues:

Strengths: Positive features of organization and factors that differentiate it from the other private and public sector organizations as appropriate. (What is the value proposition?)

Weaknesses: Growth areas of the organization or areas of concern based on constituent needs.

Opportunities: Areas for process improvement, re-engineering and organizational effectiveness restructuring and human resource deployment.

Threats: Negative trends such as: morale issues, political issues, economic changes, diversity issues, incentive problems and capital investment issues.

The external examination is done to identify organizational:

Strengths: From the point of view of stakeholders, the positive features which affect quality customer service.

Weaknesses: Again from the point of view of the stakeholders, the negative impacts on customer service or doing business with the organization that may be limiting growth or opportunities.

Opportunities: Positive conditions such as new market openings, and population shifts that present new potential to the business model.

Threats: Challenging conditions such as government regulations, market segment decline and changing economic climate that pose challenges to the business.

Usually the data collection process is conducted using a survey form or interview process similar to what I provide in Attachment D of this document. At the conclusion of the strategic diagnosis, the senior management team and the governing board should agree upon those issues that are most critical to the success of the organization. These issues serve as a template for building the strategic plan. The gap analysis is the basis for establishing the strategic building blocks in the plan. When I prepared this article some 15 years ago, I did not fully appreciate the magnitude of the governance process in the strategic planning process. As a private profit or non profit sector organization the senior leaders are accountable to a Board of Directors. In the public sector, the executive staff is often accountable to a Governing Board, City Council, Commission or Special District Board. We often think the lines of authority and responsibility levels are clear under the distinction of "governance" versus "operations" expectations. These lines are often blurred and it is becoming more important to engage the governing board in some aspect of the strategic planning process to the extent possible. In the best run organizations, the executive team works in concert with their governing board to ensure alignment of vision, mission, goals, appropriate strategies and clear rules of engagement and decision making levels. The board determines "ends." Meanwhile, the executive team is account6able to determine "the means" and drive execution of the strategies, success metrics in the strategic plan. This unification of vision and clarity of roles is a mission critical activity. Please refer to my article/power point on the Carver Governance Process, 2009.

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2. Develop a Vision Statement

Visioning into the future has become an increasingly important element of the management-leaders role. The organization, drawing on as many participants as logistics allow, should draw a word picture of the firm 3 to 5 years into the future. The more participants involved in the visioning process the higher the level of commitment and teamwork. The vision statement should respond to how we see the organization in the future. A vision statement describes in graphic terms where the goal-setters want to see themselves in the future. It may describe how they see events unfolding over 10 or 20 years if everything goes exactly as hoped. Features of an effective vision statement may include:

Clarity and lack of ambiguity

Paint a vivid and clear picture

Describing a bright future (hope)

Memorable and engaging expression

Realistic aspirations, achievable

Alignment with organizational values and culture, Rational

Time bound if it talks of achieving any goal or objective

In order to become more effective, an organizational vision statement must (the theory states) become assimilated into the organization's culture. Therefore, Leaders have the responsibility of communicating the vision regularly, creating narratives that illustrate the vision, acting as role-models by embodying the vision, creating short-term objectives compatible with the vision, and encouraging others to craft their own personal vision compatible with the organization's overall vision. How about this vision?

"We will be recognized as Greatest American City by the year 2015 and will be known for providing the highest levels of safety, customer service and "quality of life" for our citizens."

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How about this one--this is the vision statement for COPIA, the American Center for the Wine, Food and Arts in Napa, California. For years this organization struggled trying to define itself and agreement from its Board of Directors and key partners. After going through this exercise, here is what happened:

COPIA, Vision Statement, Circa 2011

"Our vision of COPIA is of a lasting legacy to our founders, Robert Mondavi and Julia Child, by which COPIA embodies their lifetime achievement and dedication in bringing the beauty and pleasures and the cultural significance of wine and food to the American public. We envision a future in which COPIA is widely acknowledged as the preeminent center for wine appreciation, discovery and education. We see COPIA's campus as the centerpiece of a vibrant Oxbow District that is a Mecca for the Wine Country visitor and a gathering place for the community - a unique village, rich with activities and experiences including hotels, shopping, a cooking school, restaurants, a public market, residential and other amenities representing the best of the incomparable beauty and bounty of our region. We envision COPIA as the essential key to a more complete and satisfying Wine Country journey. As such, the daily visitor will consistently be greeted with warmth and hospitality, be delighted by the compelling programs and offerings and will leave with a desire to return and bring their friends and family. We see COPIA, in collaboration with our winery partners, inspiring a much broader segment of society to enjoy a healthy lifestyle that includes wine, in moderation, as their preferred meal time and leisure time beverage, through a comprehensive series of educational programs and experiences."

3. Develop a Current Mission Statement

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Many people mistake vision statements for mission statements. The Vision describes a future identity and the Mission describes how it will be achieved. A Mission Statement may define the purpose or broader goal for being in existence or in the business. It serves as an ongoing guide without time frame. The mission can remain the same for decades if crafted well. Vision is more specific in terms of objective and future state. Vision is related to some form of achievement if successful.

As part of the organization's self-examination, it should develop a concise statement describing the current mission of the business. This statement is important because it expresses and communicates the basic intent of the organization. The mission statement should answer the following questions:

What business are we truly in? Why do we exist? What is our purpose?

What are our environmental, social responsibilities and key stakeholder imperatives?

Who are our customers? Who are the key constituents? How are we perceived by them?

What are the key social issues we must deal with based on constituent need--To improve

safety, health, quality of life? To provide security and employment to others? To fulfill a

social mission? Have we done homework and engaged the parties at the table?

The standing mission statement should be reviewed periodically for relevance. It should include a purpose statement, an identification of the goods and services provided, a description of the customers, the geographical boundaries if any and if appropriate any commitments to employees, society or the environment. Mission statements can also be augmented by adding stated financial/budget goals. In some cases, visions and mission statements can be combined or aligned for simplicity. See the sample we helped develop for CalTrans in this handout, a major transportation agency in California. A mission statement provides a path to realize the vision in line with its values. These statements have a direct bearing on the bottomline and success of the organization. For example, "We help transport goods and people efficiently and cost effectively without damaging environment" is a mission statement. Ford's brief but powerful slogan "Quality is Job 1" could count as a mission statement. (Wikipedia source)

A mission statement can resemble a vision statement in a few organizations, but that can be a grave mistake. It can confuse people. The vision statement can galvanize the people to achieve defined objectives, even if they are stretch objectives, provided the vision is SMART (Specific, Measurable, Achievable, Realistic and Timebound).

4. Develop Core Values and Guiding Operating Principles

Mission and values work in tandem. To make the mission statement effective, it needs to be aligned with the prevailing culture of its stakeholders, organization, market and political sphere. A lofty mission statement means nothing if it is not in congruence with the values practiced by the organization. A statement of values provides guiding principles when ethical issues related to realizing the Vision, and undertaking the Mission, arise.

The vision/mission statement defines direction. The core values help the organization stay on course. Values are held beliefs, codes of ethics, and ways of doing business. These commitments hold all stakeholders accountable. These principles reflect the true culture of your organization. Mission statements may change from time to time but core values--which maintain the rightness of your vision-should seldom change and represent the fiber of your organization. Some of the best organizations have never wavered in their core values since their inception--all hiring and all decisions are measured against these core values. It is desirable to measure your core values yearly through some type of survey instrument. Examples include: Integrity, Honesty, Superior Client Service, Teamwork, etc. They must be real and unique to the organization. Successful value systems should be specific and measurable. Enlightened organizations striving to "walk the talk" should survey the employees yearly and measure "commitment to values." These values should reflect the soul, the heart and the character of the organization. They serve as the "red thread" to bind collaboration among the various partner relationships in government. Let's review a few Samples on the next pages...

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