Strategic Planning
An Overview
General Definition
The process of strategic planning involves
deciding where you want to go, how you
want to be positioned, how you think you
can get there, what you have to watch out
for, and what it is likely to cost you.
It is a long-range planning activity, typically
done in 3 to 5 year increments with at
least an annual review.
What it is not…
It is not a box of tricks or a bundle of
techniques. It is analytical thinking and
commitment of resources to action.
It is not the application of scientific
methods to business decisions. It is the
application of thought, analysis,
imagination and judgment. It is
responsibility rather than technique.
What it is not continued…
It is not forecasting or masterminding the
future. Any attempt to do so is foolish; the
future is unpredictable. Strategic planning
is necessary because we cannot forecast
the future.
It does not deal with future decisions. It
deals with the futurity of present decisions.
Decisions only exist in the present.
What it is not continued…
We cannot ask what the organization
should do tomorrow. The question is what
futurity do we have to build into our
present thinking and doing, what time
span do we have to consider, and how can
we use this information to make a rational
decision now?
What it is not continued…
Strategic planning is not an attempt to
eliminate risk. We must understand the
risks we take. We must be able to choose
rationally among risk-taking courses of
action rather than make decisions based
on hunch, hearsay or experience, no
matter how meticulously this is measured
and researched.
What is Strategic Planning?
The process of determining the long-term
objectives of organizations as a means of
formulating strategies to accomplish these
objectives.
These activities and objectives lead to
action today that require an appreciation of
what the outcomes of strategic decisions
will be in the future.
What is Strategic Planning?
An effective strategic plan can help the
organization fulfill its mission by
articulating a vision of its role, and its
potential.
There is no one acceptable way to engage
in strategic planning—each organization or
department is unique.
Parts of a Strategic Plan
Mission Statement
Definition of Major Objectives
Action Plan
Description of Resources Needed
Procedure for Monitoring Performance
Evaluation System
Mission Statement
Defines the scope and focus of an
organization’s activities.
Should be broad enough to encompass
potential activities.
Should allow for flexibility and creativity.
Definition of Major Objectives
 Should reflect what is of greatest significance for
the current and future direction of the
organization.
 The efforts of the organization should be based
on its major objectives and how they fit in with its
structure, purpose and goals.
 The objectives should be developed by those
who will participate in achieving them.
 The objectives should be clearly stated and
should be measurable quantitatively and/or
qualitatively.
Action Plan
Contains the strategies and activities for
achieving the objectives.
Usually requires the ability to develop new
ways of doing things.
Should be action-oriented and should be
allowed to develop over time. Each plan
should be given time to reach fruition.
Each plan must reflect the overall mission
of the organization.
Resources Needed
The resources will be used to implement
the strategic plan and are therefore
essential to its success.
Should include personnel, financial,
equipment and space requirements.
Should include a breakdown of activities
and the necessary allocations.
The strengths and the expected impact of
the plan should also be presented.
Procedure for Monitoring Performance
Key point is to monitor how well the action
plan is progressing towards its objective.
The assessment may lead to
reconsideration (redirection) and possible
refinement of the objectives, modification
of the activities, alteration of the allocation
of resources, refinement of roles, and
reassignment of individuals.
Procedure for Monitoring Performance
Measures the effectiveness of the
strategic plan.
May be done through survey forms, status
reports, and/or follow-up strategic planning
meetings.
Evaluation System
 Should include at least an annual review that
addresses all relevant factors, including the
action plan, the institutional objectives and
resources as well as the problems, successes,
weaknesses, and strengths of the plan.
 Participants should include all key personnel
and support staff that will be affected by the
plan.
 May include revisions or modifications of the
plan.
Summary
 Strategic planning is indispensable for guiding
toward success.
 It involves a commitment to current and future
courses of action.
 An effective plan will be productive enough to
pay off the investment of time and energy.
 Information taken from ”Management Principles
for Health Professionals,” 4th Edition by Joan
Gratto Liebler & Charles R. McConnell