Marge Mohoric Ph.D.
The Evergreen State College

Overview of Strategic Planning
Guiding Principles
• Vision
• Mission
• Goals
• Tactics
Priority Goals
• Key areas of focus for next 1 – 5 years
• Big Three
Performance Measures
• Objective measurements of Goal performance
Action Plans
• Management programs to achieve the Goals
• 6 month – 12 month timeframe
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Vision
Mission
Goals
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A vision is a guiding image of success.
You will never be greater than the vision that guides you. The vision statement should require the organization's members to stretch their expectations, aspirations, and performance.
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Komatsu
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Surround Caterpillar.
Disneyland
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To be the happiest place on earth.
WA State Employees Credit Union
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Become the best source of financial solutions for every member and potential member.
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A mission statement communicates the essence of your organization. Two basic components:
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Purpose Statement
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Clearly states why your organization exists
Business Statement
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Outlines the business (activities or programs) your organization chooses in order to pursue its purpose.
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Nike:
To bring inspiration and innovation to every athlete in the world.
Starbucks
: Establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while we grow.
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“Business is the only mechanism on the planet today powerful enough to produce the changes necessary to reverse global environmental and social degradation.”
Paul Hawken
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Key areas of focus for next
1 – 5 years
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Return on Assets Goal
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Cumulative Profits Goal
Market Share Goal
Stock Price Goal
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Objective measurements of success
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With Performance Measures
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GOAL: Increase Return on Assets
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Performance Measures
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Increase ROA to ____ by _________
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Research and
Development
Marketing
Production
Finance
Human Resources
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Research and Development
Action Due Date Lead
New product introduction
Product repositioning
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Strengths: internal resources and capabilities that can be used as a basis for developing a competitive advantage.
Weaknesses: internal weaknesses
(attributes on your firm)
Opportunities: external opportunities for profit and growth.
Threats: external changes in the environment
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S-O strategies pursue opportunities that are a good fit to the company’s strengths
W-O strategies overcome weaknesses to pursue opportunities
S-T strategies identify ways that the firm can use its strengths to reduce its vulnerability to external threats
W-T strategies establish a defensive plan to prevent the firm’s weaknesses from making it highly susceptible to external threats
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Strengths—Wal-Mart
(brainstorm 10-23-06)
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Size
Competitiveness
Low prices
Leverage
Smiley face on the blue vest
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Brand loyalty
Location
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Bad customer service
Bad reputation
Bad ethics
Poor employee treatment
Harmful to their environment
Poor relationships with suppliers/partners
Lack of consistency between stores
Poor quality
Big parking lots
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Foreign markets
Outsourcing
Martha Stewart’s imprisonment
Compulsiveness
New technology
Better wages
Health care
Upscale market
Day care
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Gov’t regulation
Evergreen
Bad press
Target
Public awareness
Thieving employees
Market saturation
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Strengths—Google
(brainstorm 10-23-06)
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Innovation
Patent on their algorithms
Size—large
Youthful culture
User-friendly
Competitiveness
Room to grow
Cash
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Lack of good people skills
Micro-managing
Vulnerability to bad press (internal and external)
Fad
Inexperienced
Technology shortfalls
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Foreign markets
Mergers/acquisitions
Expanding to other media (e.g. video search)
Diversification (e.g. Google maps)
Joint ventures
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Yahoo
Microsoft
Black hat practices
Netscape
Copyright infringement
Click fraud
Patriot Act
Gov’t regulations
Patent coming up for renewal
Public perception
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