It helps articulate an organization’s mission and, sometimes, its vision and values. Strategy Map. Gap planning allows you to compare an organization’s current position to its goal, then identify ways to bridge that gap. Global Model: As the name implies, global strategic planning includes what is necessary to compete in an international marketplace. Value Migration: This model helps companies plan ahead of the competition. To learn more about the basics of strategic planning, read this article. Download HR Strategic Planning Template - Excel. The IT plan should also include a SWOT analysis, goals, and objectives. Created by professors W. Chan Kim and Renee Mauborgne in 2005, the blue ocean strategy is a relatively new planning framework. Value: Using a particular resource, can you exploit an opportunity or get rid of a threat? Write sets of linked objectives across different perspectives (these are called strategic themes). Additionally, some methods work well together. 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. Wright says this framework helps companies think deeply about how they will achieve growth instead of merely saying they want to grow. So it’s critical that these elements are well thought-out and defined. 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. Instead of trying to increase profits, turn your efforts toward growing your business. Many companies perform a SWOT analysis at the beginning of the strategic planning process, as it offers them a look at what they are doing well and where they can improve. 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. The scenario model works best when used in combination with other models and is more of a technique than a model. He adds that it is an easy model because it does not involve much jargon and focuses on the future. 103-62) and the GPRA Modernization Act of 2010 (P.L. 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. Every company needs a strategic plan, and every strategic plan starts with a framework or model. Sometimes, models can serve as a visual guide. 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. Wright does not recommend changing models during the planning process. Strategic Framework Strategic Planning and Directions The Strategic Direction planning process has spanned three academic years to date. Industries in that space define and accept the boundaries that exist, and they play by the rules. BSC is well-known and works for companies of varying sizes. Porter’s Five Forces: This model looks at five competitive forces that are present in every industry and helps to determine strengths and weaknesses: competition in the industry, the potential of new entrants into the industry, the power of suppliers, the power of customers, and the threat of substitute products. Real-Time Model: This a fluid process that works best for companies that operate in a rapidly changing environment. The key to the blue ocean strategy is to make the competition irrelevant because you are doing something the others are not. Strategic planning has a basic overall framework. The next step is to come up with goals you must achieve to live up to your mission and make it a reality, then outline what must happen to achieve those goals. The plan will help make sure you purchase the right assets and work with existing technology effectively. Introduced in 1979, it is one of the oldest strategic planning frameworks. A red ocean is the known market space. Free your team from content sprawl with Brandfolder, an intuitive digital asset management platform. Strategic planning may be utilized on a large scale, such as planning for business growth over several years or to help a nonprofit or … A blue ocean is the unknown. In this matrix, market development concerns selling more of an existing product or service to a new group of people. You can use the following HR strategic plan to list, assess, and plan for future program strategies. 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: Where are we going? Learn about our premium resource and portfolio management platform, 10,000ft by Smartsheet. 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. The world of healthcare is changing, and healthcare organizations have to adapt. Strategy mapping often falls under the umbrella of a BSC, but strategy maps can also stand alone. Even with the ever-changing healthcare industry, strategic plans will continue to help organizations stay focused on their goals and objectives. The competition can be bloody, which leads to the term red ocean. 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: 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. To be clear, the strategic framework is not a repeat of a project plan or a business case. In the plan, you outline the mission, resources, programs, and support your organization needs to ensure it fulfills its vision. The basic model works well for companies that are small, do not have much time to plan, don’t need to address many serious issues, or operate in stable external environments. 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). Review your current strategic position and clarify your mission, vision, and values. Like the organic model, real-time strategic planning is a continuous process and works best for rapidly changing organizations that might not have the need for set, detailed, or traditional strategic planning. It has a long-term horizon, explicates the context and rationale for why the regeneration project is … “A poor plan well executed is worth more than a great plan that never gets off the ground. Sometimes called the product-market matrix, the Ansoff matrix looks at market penetration and potential future growth. The following framework will guide you through completion of your basic strategic plan document. The process works by gathering people to talk about a highly inspirational vision for the company. 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. Set your strategic objectives, goals, and action items and how you’ll execute your plan. Customers’ Bargaining Power: Can customers pressure you to react to their demands? “It’s a framework, not a recipe. Gap planning is the analysis and evaluation of that difference. The advantages you identify help determine what you need to do in order to achieve them. It also works for companies that are new to strategic planning. People can refer back to it in order to stick to the overall plan when working on tasks or making decisions. Some of the most critical steps are listed below, aside from the creation of the strategic plan documentation. 2. Review the current strategic plan and relevant business plans against new opportunities and risks. ©2020. Whether you are creating a framework for … To learn more about the balanced scorecard and find free templates and examples, read this article. An example of an organization that found a blue ocean is Cirque du Soleil. McKinsey’s Strategic Horizons framework focuses on growth and innovation by categorizing goals into three categories: the core business, emerging opportunities, and new business. 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. This less systematic model requires patience since it involves constant dialogue and is never really finished. “One mistake is not picking one framework. 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. Communicate where they are doing and why. Conduct an environmental assessment. It helps companies that want to try to grow sales volumes or have it as a major focus area. 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 organic model relies on everyone having a shared vision and being willing to openly discuss how to get there using common values. Elevator Pitch. Strategic planning models and frameworks can help guide you through the strategic planning process. Organic Model: As the name implies, this model does not necessarily follow a set plan, instead evolving and changing as conditions warrant. Like models, strategic planning frameworks help an organization through the strategic planning process. “You start with purposes in mind and then figure out how to get there.”. The volume and demographics of patients will change. Diamond-E Framework: The Diamond-E framework helps identify possible gaps in an organization to decide whether or not to pursue an opportunity. It involves looking at both the internal and external environments of multinational organizations. Existing revenue is placed here, so goals mostly deal with improving margins and processes, as well as maintaining incoming cash flow. New technologies will continue to emerge. People need to be involved.”. The basic model of strategic planning is the most common and simplistic approach. 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 Lay out the road to connect where you are now to where you’re going. It incorporates SWOT or other types of assessments to determine goals, mission statements, action plans, and other steps. Most people know what they need to do; it’s getting the traction and about democratizing the process. These frameworks look at an industry or business environment and see what factors could impact an organization’s overall health and well-being. 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 … Once you’ve settled on those values, you’ll need a powerful tool such as Smartsheet to get to the next level. Free your team from content sprawl with Brandfolder, an intuitive digital asset management platform. A GUIDE TO SAMHSA’S STRATEGIC PREVENTION FRAMEWORK 4 Prevention planners are pressed to put in place solutions to urgent substance misuse problems facing their communities. One of the more popular strategic planning frameworks is the balanced scorecard. A strategic plan includes many sections. 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. Market penetration focuses on selling even more of a current product or service to the same people. Strategy mapping is often part of (but is not exclusive to) the balanced scorecard framework. However, some critics of this model say it functions more like an internal development plan than a strategic plan. Most strategic planning processes include a SWOT analysis. When done well, a strategic plan can help you prioritize your company’s functions and stay in line with your mission and vision. You've seen how the four quadrants of a SWOT analysis work. Strategic planning has a basic overall framework. Exposure-based Research Programs. PEST stands for political, economic, sociocultural, and technological factors. Imitability: Can anyone else do what you do? A simple but effective approach is to create goals and projects based on the strategic plan. Strategic planning is a team process that sets up how your company will accomplish its goals. There is no one right or wrong way to create a strategic plan, and you can modify models and frameworks based on your company culture, your current situation, and the purpose behind your planning. Strategic planning review facilitation with Board and senior staff: 1. Review Vision/Mission statement and its impact on decision making. The planning process can help companies identify specific hiring needs. It emphasizes the journey over the destination. 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: Where are we now? Storyboarding techniques and open dialogue are often a part of the organic model, and everyone is encouraged to participate openly. Lastly, create a simple monitoring plan to make sure your organization stays on track. There is no right or wrong way to decide which model or framework to use for your strategic planning process. If you’re struggling with the model, it might be you.”. By contrast, a red ocean is a market space that is already developed and saturated. Often called a “strategic plan” or a “vision plan,” this document articulates a clear vision for the regeneration project based on the findings of the scoping phase. “Think of models as a way of ideating strategy. It makes sense to build the rest of your plan from these statements. Each section includes directions. 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. Value Disciplines: This flexible framework focuses on what an organization is already good at and builds on it. The cornerstone of Agile is being able to respond quickly to change, which seems like the antithesis of strategic planning. Kaufman Model: Also called mega planning, the Kaufman Model relies on a needs assessment. “[The model] is a template you use to get your ideas on paper. There are many strategic planning models and frameworks — some are tried and true, others are newer and more adaptive, and planners and managers may be more familiar with some methods than others. Place objectives within those perspectives. The first horizon deals mostly with core activities in which a company is already engaged. Organization: Are you organized enough as a company to adequately exploit your product or service? 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. 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. For each change in an external force, discuss how it could impact the future of your organization in the following three ways: After looking at the three potential impacts, figure out how to best respond to each. The key to the balanced scorecard is that a business should be a balance of the four quadrants. Framework plan. From 2018 to 2022, FEMA will focus on three main Strategic Goals and invite the whole community to adopt these shared Use the template below to draft a strong, comprehensive IT strategic plan. Gap Planning: A strategy gap is the distance between how a company is currently performing and its desired goal. Then pick the most likely scenario and discuss strategies to address it. Strategic planning is an organization’s process for defining their strategy so that they can accomplish specific goals and objectives. All Rights Reserved Smartsheet Inc. If you are looking for a set plan outlining steps to follow, the organic model is not for you. It is particularly effective for businesses facing internal struggles. McKinsey's Strategic Horizons are all about keeping you focused on … Rarity: Is there a lot of competition in your market, or do a few entities control most of the market? The FEMA 2018-2022 Strategic Plan provides a framework for supporting the United States before, during, and . Look at the health of your organization and its developmental stage. Resist the urge to pick a year ending in a 0 or 5 to start your strategic planning process. But be careful; customizing models or frameworks too much might confuse people who are familiar with a particular planning process. “Frameworks are like a lens to help you see different perspectives, whereas the model is a process you would use from the beginning. However, reactive strategies are short-term, causing firms to spend a significant amount of resources and time. “The perfect plan is the one that actually gets done,” says Wright. Explain the differences between strategies, goals and objectives. PEST Model: The PEST (political, economic, social, and technological) approach looks at elements of the external environment, including the forces in its name. The standard strategic planning model, also known as the basic planning model, the vision-based model, the goals-based model, and the conventional model, is the most common nonprofit strategic planning model. 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. Strategy mapping helps you identify key goals and unify those goals into strategies. This model is especially effective when your external surroundings are generally calm. When you deploy it correctly, strategic planning highlights problems, helps find solutions, and monitors progress. Wright recommends a 70/20/10 split between the three horizons. Establish your competitive advantage and your vision. VRIO (value, rarity, imitability, and organization) is a framework that deals primarily with the vision statement, rather than the entire strategy for a company. Some experts say this is more of a technique than a model. An agency strategic plan is one of three main elements required by the Government Performance and Results Act (GPRA) of 1993 (P.L. “The major driver [for picking a model or framework] is what type of business you are and what you want to accomplish,” Wright explains. “There is a ton of value in changing frameworks and using multiple frameworks at the same time [to view things differently],” he says. Companies use the balanced scorecard to do the following: Align the daily work to the longer-term strategy. Below are other criteria to help you decide: Check the size of your organization and the resources you can devote to planning. The inspirational model works well for organizations looking to lift the spirits of a staff or to quickly produce a plan. 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. Our world-class consulting team is here to help your organization realize the lasting advantage of Smartsheet. Take the guesswork out of alignment by creating a company-wide framework for implementing the new strategy and keeping everyone’s work aligned. Inspirational Model: This is a somewhat quick method of strategic planning that begins by coming up with a highly inspirational vision for the organization and the goals to match. 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. Assess Industry, Competitor & Customer Trends. Still, the following general ideas persist: There will be a continued need to provide quality patient care. For more about human resources management, this article can help. Your elevator pitch is … Some organizations might not get to choose the framework they use. He recommends adapting a model or framework to meet your needs, rather than attempting to stick to hard and fast rules that might come from a book or a similar source. The second horizon involves taking what is already happening and expanding it into new areas. In this section, you’ll learn the specifics of the different strategic planning models and frameworks. The Cascade Strategic Planning Model. 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. Figure 1 shows the major components … 3. Clearly see the direction your organization is headed. These do not stand alone and often go along with a SWOT analysis and other frameworks. A company creates demand for a product or service instead of fighting over it, so there is plenty of opportunity for everyone. You add a framework on top of the [strategic plan] to slice and dice the model.”. Smartsheet is an enterprise work execution platform that is fundamentally changing the way businesses and teams work. VRIO Framework: This approach looks at the questions of value, rarity, imitability, and organization concerning the competitive potential of a company. The strategic planning frameworks above are all meant, in different ways, to help you organize your objectives, measures, and projects. See who is excited about the planning process. “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. Use this template to help you organize your thoughts visually. “If you have a cultural challenge in your organization about getting excited about planning, the model you pick is important. Its creator, Adrian Slywotzky, defines value migration as the shifting of forces that create value, and that shift goes from an outdated business model to a better-designed model that satisfies customers. In contrast, frameworks function as an overlay to a model that helps clarify particular items, such as goals. The familiar Smartsheet interface that is designed for how people actually work leads to rapid and broad adoption across your organization. Constantly, people undervalue the role of buy-in with strategic planning. The map shows how different items interact with each other in various ways, including a cause-and-effect relationship. It isn’t the same for frameworks, according to Wright. Strategy Mapping: This approach helps organizations design and communicate their strategies. Get up and running fast with streamlined implementation and solution building to address your immediate business needs. By thinking of how different perspectives relate to each other, you can come up with your objectives. Robert Kaplan and David Norton created the balanced scorecard in the 1990s, it changed the way many companies do their strategic planning because it focused on more than one performance metric. Though Wright encourages using different frameworks, he echoes Jackson’s warning to not use different models at the same time. 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. This results in a competitive advantage in your marketplace. 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: Where are we now? Core Values. Even though you should not use a strategic plan solely because a similar company does, it might help to look at their preferred framework to pick the one that is right for you. 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. Issue-Based or Goal-Based Model: A step up from the basic model, this model is better for more established businesses. Note that available human resources can be both strengths and weaknesses. after disasters and improving the Agency’s execution of its fundamental mission of helping people. An elevator pitch is a brief description of your business. McKinsey’s Strategic Horizons. One of the more popular strategic planning frameworks is the balanced scorecard. The alignment model focuses on making sure an organization’s actions align with its vision.
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