Strategic planning is – a disciplined effort to produce fundamental decisions and actions that shape and guides what an organization is, what is does, and why it does it.
At its best strategic planning requires - broad-scale yet effective info gathering, clarification of the mission to be pursued an issues to be addressed along the way, development and exploration of strategic alternatives, and an emphasis on the future implications of present decisions.
The ABCs of Strategic Planning-
A – Where are you
Mission and mandates
Structure and systems
Communications
Programs and services
People and skills
Budget
Support
B – Where you want to be
Mission and mandates
Structure and systems
Communications
Programs and services
People and skills
Budget
Support
C – How to get there
Strategic Plan
IT and HR Plans
Communications
Hiring and Firing
Restructuring and reengineering
Budget allocations
Getting from A to C is the process of strategy formulation, whereas getting from C to B is strategy implementation.
Benefits of strategic planning
1.
Promotion of strategic thinking, acting, and learning. Especially through dialogue and strategic conversation
2.
Improved decision making
3.
Enhanced organizational effectiveness

4.
Enhanced effectiveness of broader societal systems
5.
Benefits the people involved
Strategic planning is not always advisable.
1.
When the roof of the org has fallen in.
2.
When decision makers lack the requisite skills.
Two types of decision-making.
1.
Rationale – consists of Goals, Policies, Programs, and actions. All in a hierarchal order.
2.
Political – consists of most general policies, more general policies, policies and programs, issue area(s). There may be significant overlap between each.
The use of the political model is necessary to work out consensual agreements on what programs and policies will work best to resolve key issues. Once consensus is reached, the rationale model can then be used to formulate the strategic plan.
Strategy Change Cycle – becomes a strategic management process and not just a strategic planning process to the extent that it is used to link planning and implementation and to manage an organization in a strategic way on an ongoing basis.
The Strategy Change Cycle – A ten-step process
1.
Initiate and agree on a strategic planning process
2.
Identify organizational mandates
3.
Clarify organizational mission and values
4.
Assess the external and internal environments to identify strengths, weaknesses, opportunities and threats (SWOT / SWOC).
5.
Identify the strategic issues facing the organization
6.
Formulate strategies to manage the issues
7.
Review and adopt the strategies or strategic plan
8.
Establish an effective organizational vision
9.
Develop an effective implementation plan
10.
Reassess the strategies and the strategic planning process.
Step 1: Initiate and agree on a strategic planning process
Purpose is set-up all needed agreements with key internal and external decision makers about the overall planning efforts. Identifying the appropriate persons is key; this is done by accomplishing a stakeholder analysi s.
Step 2: Identify Organizational Mandates
This is the MUST dos . That is, the various requirements, policies, restrictions, expectations, pressures, and constraints the organization is facing.
Step 3: Clarify Organizational Mission and Values

-
An organization’s mission, in tandem w/ its mandates, provides the org’s most important justification for its existence. They also point the way toward the ultimate end of creating public value.
Step 4: Assess the External and Internal Environments
The planning team should identify the opportunities and challenges the org faces in the environment (step 4a). It should explore the environment inside to identify strengths and weaknesses (step 4b). Outside are those forces the org cannot control, inside are the ones they can.
Step 5: Identify the Strategic Issues Facing the Organization
Strategic issues fundamental policy questions or critical challenges affecting the organization’s mandates, mission and values, product or service level and mix, clients, users or payers, cost, financing structure, processes and management.
There are seven approaches to identification of strategic issues. o 1. Direct: Goes straight from discussion of mandates, mission and
SWOCs to the identification of strategic issues. o 2. Indirect : Begins w/ brainstorming about options before issue identification. o 3. Goals Approach: identifies issues that must be addressed in order to achieve desired goals. o 4. Vision of Success: Starts w/ a sketch of the vision so issues can be identified in order to meet desired vision. o 5. Oval Mapping: Involves creating word-and-arrow diagrams in which ideas about actions the org might take, how it might take them, and why are linked by arrows indicating cause and effect or influence relationships. o 6. Tensions: The argument that any strategic issue always involves,
(1) equity (2) innovation and change (3) tradition (4) productivity improvement. o 7. Systems Analysis: Looking at the “big picture” and identifying issues.
Step 6: Formulate Strategies to Manage the Issues
A strategy can be defined as pattern of purposes, policies, programs, actions, decisions, or resource allocations that define what an organizations is, what it does, and why it does it. There are two approaches. o 1. Developing through a five-part process. (1) Identification of practical alternatives for resolving the issue. (2) Enumerate the barriers. (3) Develop proposals for achieving alternatives. (4) Actions implementation. (5) A detailed work program. o 2. Developing strategies by structuring relationships among strategic options. Involves mapping cause and effects of issues.

Step 7: Review and Adopt or Accept the Strategies or Strategic Plan
Step 8: Establish an Effective Organizational Vision
In this step the org develops a description of what is should look once it has successfully implemented its strategies and achieved its full potential.
Step 9: Develop an Effective Implementation Process
This is where eventually the action plans are created and implemented.
Step 10: Reassess Strategies and the Strategic Planning Process
- The organization should review the strategies and the strategic planning process as a prelude to a new round of strategic planning. Much of the work in this phase may occur as part of the implementation process (Step 9).
Sequencing the Steps
The process is not truly linear and orgs sometimes find themselves skipping, starting, etc to different steps based on need, circumstances, etc.
In addition, implementation often begins before all the planning is completes.
As soon as useful actions are identified, they are taken, as long as they do not jeopardize future actions that might prove valuable.
Step 1: Initiating and Agreeing on a Strategic Planning Process
-The commitment of key decision makers is VITAL if strategic planning and change in an org are to succeed.
-Ideally, the (1) first step in the process will produce agreement on several issues:
1.
The purpose and worth of the Strategic Planning effort.
2.
The organizations, units, groups, or persons whom should be included, and the ways in which they should participate.
3.
The specific subsequent steps to be followed.
4.
The form and timing of reports.
- As a general rule the strategic planning efforts should focus on that part of the org controlled, overseen, or strongly influenced by the key decision makers interested in engaging in strategic planning.
Step(s) 2: Identify Organizational Mandates
3: Clarify Organizational Mission and Values
Together these two indicate the public value the organization will create and provide the social justification for the org’s existence.

Step 2: Identify Organizational Mandates
Step 2: These are the functions that the org is formally and informally required to do (and not to do) by external authorities. For example, laws, statutes, ordinances, etc.
The purpose of step 2 is to identify and clarify the nature and meaning of the externally imposed mandates, both formal and informal. Four outcomes should be sought: o 1. Identification o 2. Interpretation o 3. Clarification of what is forbidden o 4. Clarification of what is not ruled out
The Benefits of step 2 is (1) clarity of what is mandated, and (2) the possibility developing a mission that is not limited by mandates.
Step 3: Clarify Organizational Mission and Values
Mission clarifies an orgs purpose or why it should be doing what is does; vision clarifies what is should look like and how it should behave as it fulfills its mission.
The purpose of step 3 is to specify the purposes of the org and the philosophy/values that guide it.
There are two desired outcomes; (1) a stakeholder analysis (if not already done) and a mission statement.
Perhaps the most important benefit is simply it fosters a habit of focusing discussions on what is truly important.
In general the three analyses that are most useful for developing a mission statement are the basic analysis technique, power verses interest grid, and stakeholder influence diagram.
A mission statement is a declaration of organizational purpose . It should grow out of the following six questions: o 1. Who are we? o 2. What are the basic social and political needs we exist to meet, or what are the basic social or political problems we exist to address? o 3. In general, what do we do to recognize, anticipate, and respond to these needs or problems? o 4. How should we respond to our key stakeholders? o 5. What are our philosophy, values, and culture? o 6. What makes us distinctive and unique?

Step 4: Assessing the Internal and External Environment
The purpose of step 4 is to provide information on the strengths and weaknesses of the organization in relation to the opportunities and challenges it faces.
Strengths and weaknesses usually refer to present capacity and opportunities and challenges usually refer to external potentials for good or ill.
The approach to external and internal assessments outlined here sets the stage for the identification of strategic issues in step 5 and provides valuable info for step 6.
Desired Outcomes: In step 4, the strategic planning team produces documented lists of external or future oriented organizational opportunities and challenges and internal or present strengths/weaknesses. This constitutes the SWOC.
Thoughtful discussions among key decision makers and opinion leaders concerning strengths, weaknesses, opportunities, and challenges; key success factors; and distinctive competencies are one of the most important outcomes of this step.
Step 5: Identifying Strategic Issues Facing the Organization
A strategic issue is a fundamental policy question or critical challenge affecting an org’s mandates, mission and values, product or service level and mix, clients, users or payers, cost, financing, structure, processes, or management.
The purpose of Step 5 is to identify the fundamental policy questions—the strategic issues agenda—facing the organization.
-
Desired Outcomes: The step should result in the creation of the org’s strategic issue agenda. This agenda is the product of three intermediate outcomes. First is a list of thee issues. Second, is the divided into strategic/operational. Third, is the arrangement of the strategic issues list into some order/prioroty.
Benefits: o 1. Attention is focused what is truly important o 2. Attention is focused on issues NOT answers o 3. Identification of issues creates usefull desire to prompt change o 4. Issue identification often provides clues to solutions o 5. Provides a sense of “realness” to the strategic planning process
Planners will sometimes terminate the planning process at this point.

There are seven approaches to identification of strategic issues. o 1. Direct: Goes straight from discussion of mandates, mission and
SWOCs to the identification of strategic issues. This will work if there is strong enough interest. o 2. Indirect : Begins w/ brainstorming about options before issue identification. Particulary usefull when major change is needed, but members of the planning team and org have not yet grasped the need. o 3. Goals Approach: identifies issues that must be addressed in order to achieve desired goals, then addresses them. o 4. Vision of Success: Starts w/ a sketch of the vision so issues can be identified in order to meet desired vision. o 5. Oval Mapping: Involves creating word-and-arrow diagrams in which ideas about actions the org might take, how it might take them, and why are linked by arrows indicating cause and effect or influence relationships. o 6. Tensions: The argument that any strategic issue always involves,
(1) equity (2) innovation and change (3) tradition (4) productivity improvement. o 7. Systems Analysis: Looking at the “big picture” and identifying issues.
Step 6: Formulate Strategies to Manage the Issues and Step 7: Review and Adopt or
Accept the Strategies or Strategic Plan
- Strategy may be thought of as a pattern of purposes, policies, programs, actions, decisions, and resource allocations that defines what an organization is, what it does, and why t does it.
The purpose of the strategy formulation and plan development step (step 6) is to create a set of strategies that will effectively link the org to its environment and create public value.
The purpose of the strategy and plan adoption step (step 7) is to gain authoritative decisions to move ahead with implementation the strategies and plans.
- Desired Outcomes:
1. The org might seek a grand strategy statement
2. The org should gain clarity on what strategies are what new/old
3. The org may/may not wish to have a formal strategic plan, one for adoption in step 7
4. Take actions when identified.
Benefits: o 1. Clear picture will emerge

o 2. A broad range of options were looked at o 3. Heightened moral o 4. Org members will be empowered, etc
Two approached to Strategy Development
1. One is to answer five questions.

1. What are the practical alternative, dreams, etc?

2. What are the barriers?

3. What major proposals might we pursue?

4. What major actions must be taken?

5. What steps must be taken in next 6 months?
2. The Oval Mapping Process is the second helpful approach to formulating effective strategies.
Step 8: Establishing an Effective Organizational Vision For the Future
- According to Bryson, the vision should probably detail the following attributes of the organization:
1.
Mission
2.
Basic philosophy, core values, and cultural features
3.
Goals, if they have been established
4.
Basic Strategies
5.
Performance criteria (such as critical success factors)
6.
Important decision-making rules
7.
Ethical standards expected of all employees
Step 9: Implementing Strategies and Plans Successfully
Well-executed implementation (step 9) completes the transition from strategic planning to strategic management by incorporating adopted strategies throughout the relevant system.
Desired Outcomes: Added public value.
Implementation should be consciously, deliberately, and strategically planne, managed, and budgeted.
Implementation may either be staged or direct. o Staged is advised when partied involved are faced with technical, political, etc difficulties. o Direct is need is clear, support present, and time is right.

Step 10: Reassessing and Revising Strategies and Plans.
In this last step of the Strategy change Cycle, leaders, managers, and other stakeholders review strategies that have resulted from previous steps or emerged along the way to determine whether they should be maintained, significantly altered, or terminated.
This step also involves building an effective strategic management system.
Leadership Roles for Making Strategic Planning Work.
There is no substitute for effective leadership when it comes to planning.
Strategic Planning is a set of: o Concepts o Procedures, and o Tools
Designed to help mangers/executives think, act, learn strategically.
W/o effective leadership focused on both content and process concerns, strategic panning would not happen.
-
Leadership is: “the inspiration and mobilization of others to undertake collective action in pursuit of the common good ” (Crosby and Bryson, forthcoming).
The following leadership tasks are important if strategic planning and implementation are to be effective:
1.
Understanding context : leaders should help constituents view the org. & org. change in view of social, political, economic, & tech systems & trends. The must have an intimate knowledge of their own org’s.
2.
Understanding the people involved, including one’s self
: leaders should seek to understand the weaknesses and strengths of all persons involved in the planning process. The most important strength is the passion for fulfilling org’s mission and contributing to the well-being of multiple stakeholders.
Leader should remember that the marshaling of personal assets is perhaps the most powerful instrument of all.
3.
Sponsoring the process : Process sponsors are typically top leaders. They should have enough prestige, power, and authority and hold people

accountable. Leader interested in sponsoring a strategic planning process should consider the following guidelines: a.
1. Articulate the purpose and importance of the strategic planning effort . b.
2. Commit necessary resources
– time, money, energy, money, legitimacy. c.
3. Emphasize at the beginning and at critical points that action and change will result.
d.
4. Encourage and reward : creative thinking, constructive debate, and multiple sources of input and insight. e.
5. Be aware of the possible need for outside consultants . It is a sign of strength to know when to ask for help. f.
6. Be willing to exercise power and authority to keep process moving . They can provide a holding environment while participants struggle through, but the process will eventually need to start moving again.
4.
Championing the process: The champions are the people that have the primary responsibility to manage the strategic process day to day.
Champions should keep the following in mind. a.
1.
Keep planning high on people’s agenda . b.
2.
Attend the process w/o promoting a specific solution. c.
3.
Think about what needs to come together (people, tasks, info, reports, etc) at or before key decision points.
d.
4.
Organize the time, space, materials, and participation needed for the process to succeed.
e.
5.
Pay attention to the language used to describe the strategic planning and implementation. At various points in the process participants will wonder about the meaning of concepts (mission, vision, goals, etc) and how they relate. Champions should help overcome these difficulties. f.
6.
Keep rallying and pushing the process along.
Some processes must fail one or two times before they succeed. Some never succeed. Champions should push forward until success or it is evident it will never succeed. g.
7.
Develop champions throughout the org . A champion-in-chief could oversee the entire process, but others could monitor parts.
5.
Facilitate the process: The presence of a facilitator means the champions can be freed for other activities. Facilitators form a core group with the sponsors, champions, and themselves . In order to be successful, facilitators should follow these guidelines: a.
1.
Know the strategic planning process and be able to explain how it works.
b.
2.
Tailor the process to the org. and the groups involved. c.
3. Convey a sense of humor and enthusiasm for the process and help groups get unstuck.

d.
4.
Press groups toward action and the assignment of responsibility for specific actions.
e.
5.
Congratulate people when possible.
6.
Fostering collective leadership: Collective leadership may be fostered through: a.
1.
Relying on teams.
There are two reasons on why to rely on teams. First, no person can have all the relevant info. Second, is political. Support will be from many portions of the org.
i.
Team Leaders should be able to:
1.
Communicate effectively
2.
Balance unity around a shared purpose
3.
Define the mission, goals, norms, and roles
4.
Est. an atmosphere of trust
5.
Foster group creativity and sound decision making
6.
Obtain necessary resources
7.
Dev. Leadership competencies
8.
Celebrate achievement and overcome adversity. b.
2. Focus on network and coalition development . Coalitions are focused around ideas and interests that people to see that they can achieve together what they cannot apart. Coalitions are more likely to be successful if diversity and ideas are embraced. In a more broad sense, leaders should work to build a sense of community.
Leaders build community by making space for others to act
(Palmer, 2000). c.
3.
Establish specific mechanisms for sharing power responsibility, and accountability.
7.
Using dialogue and discussion to create a meaningful process.
Creating and communicating meaning is the work of visionary leadership .
Visionary leadership helps people answer these questions. What’s going on here? Where are we heading? And how will things look when we get there? In order to foster major (or minor) change, visionary leaders should become skilled in the following: a.
1.
Understand the design and use of forums . Forums are the basic settings we humans use to create shared meaning through dialogue and discussion. b.
2.
Seize opportunities to be interpreter and direction givers in areas of uncertainty and difficulty . Being able to turn dangers, threats and crises into manageable task is important for a visionary leader. c.
3.
Reveal and name real needs and real conditions. Leaders must be able to not only recognize patterns and issues; they must be to also explain them. d.
4.
Help followers frame and reframe issues and strategies.
Framing is the process of naming and explaining an issue, opening the door to ways of fixing it, and suggesting outcomes. Reframing

is breaking with the old ways of addressing it and suggesting outcomes. e.
5.
Offer compelling visions of the future . Leaders convey their visions through stories rooted in shared history yet focused on the future. f.
6.
Champion new and improved ideas for dealing with strategic issues . In analyzing new ideas, leaders keep strategic planning participants focused on the outcomes they seek. g.
7.
Detail actions and expected consequences .
8.
Making and implementing decisions: Public and nonprofit leaders are req. to be political leaders - partly because all org. have political aspects.
The key to success is (1) understand how intergroup power relationships shape decision making and implementation outcomes. (2) Understanding how to affect outcomes by having some things never come up for a decision is particularly important. Specifically political leaders must undertake the following responsibilities: a.
1.
Understand the design and use of arenas . Arenas are the basic settings for decision making. It is in the arenas that the products of forums (strategic plans, etc) are adopted as is, changed, or rejected.
Managing the transition from forums to arenas depends on figuring out when key decision points will occur and then designing the planning process to fit those points in such a way that arenas can be influenced by the work done in the forums. b.
2.
Mediate and shape conflict within and among stakeholders .
Conflicts or at least recognizable differences are necessary if people are to be offered real choices in arenas. c.
3.
Understand the dynamics of political influence and how to target resources appropriately.
The first req. for influencing political decision making may be knowing whom to influence.
Outcomes in arenas can be affected dramatically by influencing the agenda of does and does not come up for decision. Decision outcomes can be affected by strategic voting, in which knowing the rules of manipulation can steer outcomes on the desired direction. d.
4.
Build winning, sustainable coalitions . For planning to be effective a coalition of support must be built. e.
5.
Avoid bureaucratic imprisonment . Leaders of change must continuously challenge the rules or else find ways around them.
9.
Enforcing norms, settling disputes, and managing residual conflicts:
Leaders are always called upon to be ethical, not least of which when they are handling conflict. The following tasks are vital to exercising ethical leadership: a.
1.
Understand the design and use of formal and informal courts .
Courts operate when two or more parties having a conflict rely on a third part (leader, manager, facilitator, mediator, arbitrator, judge) to help them address it.

b.
2.
Foster org. integrity and the educating of others about ethics, constitutions, laws, and norms. c.
3.
Apply constitutions, laws, and norms to specific cases.
d.
4.
Adapt constitutions, laws, and norms to the changing times. e.
5.
Resolve conflicts among constitutions, laws, and norms.
Tasks of leadership for strategic planning are complex and many. Effective strategic planning is a collective effort, typically involving sponsors, champions, facilitators, teams, tasks forces, and others in various ways at various times.