Strategic Planning
Why is Strategic Planning so Important?
1. Limited and increasingly expensive resources
2. Real opportunities and threats?
3. Opportunity costs
4. Diversity of competition
5. Increasing Expectations
6. Responsibility and accountability
7. Internal and External Support
-Ed Mahoney, MSU
Strategic Planning
2. Suggest or are linked to accomplishment benefits
3. Suggest or identify publics, customers or partners
4. Specific and measurable: guidance, evaluation
5. Feasible - Financial Technology, Staff,
Marketing, Management
6. Give rise to alternatives: products, services...
7. Acceptable
8. Understandable
Ed Mahoney, MSU
Strategic Planning
Strategy and Strategic Marketing Plans
Strategy = an integrated, feasible and manageable
sequence of internally consistent and externally
relevant resource allocation decisions.
The strategy establishes a framework/direction in
which it pursues its objectives.
A plan is the explicit documentation, description and
communication of vision, mission, and objectives.
Ed Mahoney, MSU
Strategic Planning
Strategic Management
The continuous process of managing an organization
and its different functions such that it is consistent
with mission and achieves its objectives.
1. Stewardship of the vision
2. Hierarchy of objectives
3. Alignment of organizational structures, policies
and functional strategies and tactics with mission and
strategic objectives
4. Strategic investment
5. Performance measurement
Ed Mahoney, MSU
Strategic Planning
Strategic Planning Process
1. Environmental Scanning
2. Internal Analysis and Audits
3. S-W-0-T
4. Mission
5. Objectives
6. Strategies
7. Alignment - FIT
8. Implementation
9. Performance Monitoring
Ed Mahoney, MSU
Strategic Planning
Mission
Strategic
Objectives
Example: Image
Portfolio
Marketing
Pricing
Newsletter
Objectives
Service
Communication
Brochure
Objectives
Display
Objectives
Ed Mahoney, MSU
Relationships
Strategic Planning
Mission & Objectives
Board & Director
Financial Mgmt.
Human Resource
Mgmt.
NR/Facility Mgmt.
Visitor Mgmt.
Marketing
Portfolio
• Facilities
• Services
• Events
• Programs
• Products
Evaluation & Control
Ed Mahoney, MSU
Partnerships
Internal
External
Strategic Planning
Opportunities
Threats
External
Envir.
Control
Vulnerability
Strategic
Audit
Internal
Assessment
Strengths
Weaknesses
Objectives &
Strategies
Management
Marketing
Implementation
-Ed Mahoney, MSU
Strategic Planning
Envir.Scanning
Internal
Analysis
Opportunities
Threats
Strengths
Weaknesses
S.W.O.T
Stewardship
Systems
Mission
Objectives
Strategies
Marketing, Finance
Human Resources
Monitoring
Performance
Ed Mahoney, MSU
Strategic Planning
Strategic Planning and Concept of Fit
Fit relates to the extent to which:
•
•
•
•
various organizational objectives
facilities, services and products
different function: marketing, maintenance, security
different activities comprising functions, e.g., marketing mixpricing, service quality, marketing communications
work together to:
•
•
•
•
•
accomplish mission and strategic objectives
create and deliver customer relevant values
enhance relationships with priority publics
enhance organizational image
build future capability
Ed Mahoney, MSU
Strategic Planning
Environment
Fit
Strategic
Fit
Functional
Fit
Competency
Fit
Future
Fit
Financial
Fit
Portfolio
Fit
Market
Fit
Marketing
Mix
Fit
Ed Mahoney, MSU
Strategic Planning
Concept of
Future
publics
image
products-services
Financing
Fund Raising
Partnerships
Concept of Fit
Concept of Management
Product-Service Portfolio
Marketing
Public Relations
How products
How it will
Staffing
services, functions
fund, organize,
activities and
evaluate, recruit,
partnerships fit
motivate...
Ed Mahoney, MSU
Strategic Planning
Skills
Strategy
Structure
Staff
Shared
Values
Systems
Style of
Management
Seven-S Framework
Ed Mahoney, MSU
Strategic Planning
Economics
Technology
Competition
Volunteer
Contributors
Organization
Customers
Partners
Demographics
Culture
-Ed Mahoney, MSU
Strategic Planning
S-W-O -T Analysis
W-O-T- S UP
Strength - An attribute, skill or relationship that enhances an
organization’s ability to achieve mission and enhance its future
position.
Weakness - An attribute, skill or relationship that reduces an
organization’s ability to achieve mission and limits its future
position.
Opportunity - A change in the external environment that an
organization can capitalize on to achieve mission and/or enhance
its future capability.
Threat - A change in external environment that inhibits/lessens an
organizations ability to achieve mission and/or enhance its future
capability.
-Ed Mahoney, MSU
Strategic Planning
Environmental Scanning
Analyzing [trends] in relevant environmental factors that will
impact on an organizations ability to accomplish its
purpose/mission, objectives, functional strategies, and position
itself for future success.
The external environment is exogenous to the organization.
A primary purpose of environmental scanning:
1. Information to identify and assess opportunities and threats.
2. Determine organizational vulnerabilities.
3. Positioning strategies.
4. Market[publics and partnerships].
-Ed Mahoney, MSU
Strategic Planning
Strategic Audits
Analysis of performance and whatever seriously affects
it. The aim is to enhance relevance, quality and
efficiency of activities, programs, products, services.
1. Environment Context that have potential impact on
organizational mission, objectives, capabilities,
products, relationships.
2. Performance
3. Future contribution, relevance, and feasibility
4. Forum for sharing perspectives and insights.
Ed Mahoney, MSU
Strategic Planning
Organizational Capabilities
Medium
Market/Activity Potential
High
Ed Mahoney, MSU
Low
Strategic Planning
Low
Current Revenues
High
Current and Future Performance of
F-P-P-S
Low
Future Growth Potential
Ed Mahoney, MSU
High
Strategic Planning
Events
Marketing
Traditional
Programming
Partnerships
Fund Raising
Strategic
Importance
Organizational Competencies
Ed Mahoney, MSU
Strategic Planning
Public Evaluated
Public Important
Poorer
No Difference
Maintenance
Programming
Visitor Security
Visitor Services
Interpretation
Accessibility
Marketing
Ed Mahoney, MSU
More
Better
Strategic Planning
OPPORTUNITIES
New generation
of folkies
THREATS
No technology
capabilities
Finance
Fundraising
Member Services
Ed Mahoney, MSU
Strategic Planning
Mission Statement
A statement of purpose and vision.
It should be future oriented, not a description of
current purpose and activities. It should be developed
in the context of the “expected future.”
The mission statement should frame the objectives,
functional strategies and tactics.
The mission statement should present a challenge.
An organization’s mission statement must communicate,
and enlist support for its mission and vision.
Ed Mahoney, MSU
Strategic Planning
2005
Mission
Priority publics
Beliefs
Portfolio
Technologies
To survive and
be successful
Desired Image
1998
Ed Mahoney, MSU
Strategic Planning
Benefits of Strategic Objectives
1. Defines tangible results - strategic results
2. Enables assessment and marketing of effectiveness
3. Direction and accountability - not just hobbies and
activities
4. Stress potential and recruits expertise.
5. Sets stakeholder expectations
Ed Mahoney, MSU
Strategic Planning
Objective:
1. Increase member awareness of organizational strategies and
recruit their expertise and involvement in activities in support of
those strategies
OR?
2. Develop and distribute a newsletter.
Compare and contrast two objectives
-Ed Mahoney, MSU
Strategic Planning
Culture
Strategic Audit
Mission
Objectives
Re-Design
Organization
Strategic
“Team”
New
Processes &
Approaches
Management
Values
Re-Configure
Portfolio
Capabilities
-Ed Mahoney, MSU
Strategic Planning
Organizational Strategy(ies)
1. Creation and satisfactions of customers/members/client
2. Creation of important value(s)
3. Identification of market niches and important purposes
4. Development and application of processes and methods
5. Understand and avoid direct competition
6. Motivation of people and focus of resources toward
important purposes.
-Ed Mahoney, MSU
Strategic Planning
Strategy
An approach to acquiring and using resources within
the context of the environment in order to achieve
mission and objectives of an organization.
Tactic
Means to carry out strategy. Any strategy can be viewed
as a tactic for a higher order strategy.
Marketing
Pricing
Organizational
Strategy
Positioning
Ed Mahoney, MSU
Fund Raising
Strategic Planning
Creating and Sustaining Value Added Advantage
Advantages
Value Added
Design
Program
Facility
Elements
Management
Law Enforcement
Maintenance
Interpretation
Packaging
Pricing
Promotion
•One price to all
•Price discourages some
market segments
•Only publicity
•Not packaged with other
attractions
Disadvantages
Value Deleting
Ed Mahoney, MSU
Visitors &
Publics
Perceptions
Strategic Planning
Portfolio Strategy
1998 PORTFOLIO
S
F
F
P
F
F
P
P S
F
P
P
S
P
P
P
F
S
2005 Portfolio
-Ed Mahoney, MSU
P
F
P
Strategic Planning
Life Cycles
Facilities- Events -Products - Services - Organizations
Different
•Customers
•Management
Maturity
•Marketing
TIME
Ed Mahoney, MSU
Strategic Planning
Future
Capacity
&
Potential
Decline
Maturity Late Growth Early Intro.
Growth
-Ed Mahoney, MSU
Potential
Strategic Planning
Facilities-Services-Events
Existing
New- Related
New- Related
Market
Existing
New-Unrelated
-Ed Mahoney, MSU
New-Unrelated
Strategic Planning
Alternative Strategies/Tactics
Evaluate Potential Strategies
Ed Mahoney, MSU
Positive
Strategic Planning
Vulnerable
Strategy
Tactics
• Neutralize
Opportunity
• Minimize
Low
High
Organization’s Influence Over Factor
-Ed Mahoney, MSU
Strategic Planning
High
Strategic Importance
Mission -Objectives
Vulnerable
•Monitor
•Contingency Plans
Strategy
•Monitor
•Review of Strategies
Non-issues
Continuous
Fine -Tuning
Low
Low
High
Organizational Control
-Ed Mahoney, MSU
Strategic Planning
Strategic Audit
1. Environmental scan
2. Performance analysis/audits including portfolio
of products, services, programs….
3. S-W-O-T
4. Importance and vulnerability analyses
5. Strategic implications
-Ed Mahoney, MSU
Strategic Planning
Strength
Opportunity
Threat
Weakness
Statement of Issue
Strategic Implications
-Ed Mahoney, MSU
Strategic Plan
I. Situation Assessment
1. Environment
2. Audits
3. SWOT
II Mission Statement
1. Market-publics
2. F-P-P-Ss
3. Technologies
4. Survival/success
5 Image/identity
6. Philosophies
III. Organizational
Objectives
1997
2000
External
Demographic
Life-styles
Technology
Competition
Economic/Fiscal
Legal
Political
Organization
Opportunities
Threats
Strengths
2000
Weaknesses
Strategic Plan
Marketing
1V. Functional strategies
Fund Raising
& Financial
Management
V. Monitoring and
Evaluation
Organization
Board-Staff
Conference
CURRENT &
EXPECTED
ENVIRONMENT
ECONOMIC
DEMOGRAPHICS
LIFE STYLES
TECHNOLOGY
“COMPETITION”
STRATEGIC
PLANS
NEW F-P-P CONCEPTS
NEW F-P-Ps
OPPORTUNITIES
• MISSION
• OBJECTIVES
• POSITIONING
•
•
•
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MARKET/NEED CHANGES
CHANGES IN THE
ORGANIZATIONS
OBJECTIVES
CHANGES IN F-P-P LINES
OF OTHER ORGANIZATIONS
TECHNOLOGY
RECOMMENDATIONS
•
•
•
•
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FIT WITH MISSION
DESIRED RESULT/OBJECTIVE
MARKETS
MARKET NEEDS/DESIRES
SIMILAR OFFERINGS
F-P-P ATTRIBUTES
RESOURCES REQUIRED
IMPACTS ON OTHER F-P-Ps
FINANCING
FEASIBILITY OF
PROPOSED CHANGES
• RESOURCE CAPABILITY
• MARKET FEASIBILITY
• ECONOMIC FEASIBILITY
• TECHNICAL
FEASIBILITY
• POLITICAL FEASIBILITY
• LEGAL FEASIBILITY
• PR FEASIBILITY
F-P-P PORTFOLIO ANALYSIS
F-P-P AND MARKETING
DESCRIPTION & AUDITS
F-P-P DESCRIPTION & AUDIT
•
•
•
•
•
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•
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CUSTOMERS/USERS
PERFORMANCE - OBJECTIVES
SATISFACTION -”QUALITY”
CURRENT CONDITION
NEEDED IMPROVEMENTS
OPERATING COSTS
SUBSTITUTES/COMPLEMENTS
STAFFING
TECHNOLOGY
REVENUES/CONTRIBUTIONS
ESTABLISH CRITERIA
•FIT WITH MISSION
•ORGANIZATIONAL OBJECTIVES
•MARKET SIZE & MARKET TRENDS
•EXPECTATIONS/NEEDS
•CUSTOMER/USER SATISFACTION
•CAPABILITIES - RESOURCE, STAFF
•COST-OPERATING AND CAPITAL
•PARTNERSHIP POTENTIAL
•SUBSTITUTES/COMPETITION
F-P-P LINE & CONSISTENT
MARKETING STRATEGIES
ASSESS EXISTING
F-P-Ps AND
NEW F-P-P CONCEPTS
F-P-P LINE
•
•
•
•
•
NEW F-P-Ps
F-P-P MODIFICATIONS
CLOSINGS
F-P-P PARTNERSHIPS
PRIVATIZATION
MARKETING AUDIT
•
•
•
•
•
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•
•
•
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TARGET MARKETS?
AWARENESS/ PERCEPTIONS
MARKETING OBJECTIVES
FEES/CHARGES
COMMUNICATIONS
PROMOTIONS
ACCESSIBILITY
EVALUATION(S)
SERVICE STRATEGY
COOPERATIVE MARKETING
POTENTIAL F-P-P
CHANGES
• CLOSE
• DOWN-SCALE
• IMPROVEMENT
• RE-POSITIONING
• NEW F-P-Ps
• PARTNERSHIP
• PRIVATIZATION
MARKETING STRATEGIES
• RE-POSITIONING
• DE-MARKETING
• NEW F-P-P MARKETING
• COOPERATIVE MARKETING
Strategic Planning
P&R PORTFOLIO MANAGEMENT
1. NEW PROGRAMS, FACITIES, EVENTS, SERVICES,
2. ENHANCEMENT/CHANGE EXISITING
PROGRAMS, FACILITIES, EVENTS, SERVICES
3. DROP/ABANDON EXISITING
PROGRAMS, FACILITIES, EVENTS, SERVICES
4. PARTNER TO PROVIDE EXISITING OR
POTENTIAL PROGRAMS, FACILITIES, EVENTS,
SERVICES
5. CONTRACT OR SUBCONTRACT EXISITING
OR POTENTIAL PRODUCTS, EVENTS,
SERVICES, ACTIVITIES
6. PRIVATIZE
-Ed Mahoney, MSU
Strategic Planning
Factors in Managing Portfolio
1. Revenues and cash flow
2. Risk
3. Sustainability and opportunities for growth
4. Synergy
shared resources
related knowledge and skill
shared image
additional market(s)
greater perceived market value
5. Contribution vs. cost
6. Desired organizational image
-Ed Mahoney, MSU
Strategic Planning
F-P-P-S PORTFOLIO DECISION CRITERIA
1. ORGANIZATIONAL MISSION & OBJECTIVES
2. SYNERGY WITH OTHER PRODUCTS, PROGRAMS, ACTIVITIES
3. CURRENT AND EXPECTED FUTURE CAPACITY TO DEVELOP,
MANAGE, MARKET….
4. RESOURCE GENERATION CAPACITY
5. SUSTAINABLE MARKET FEASIBILITY
6. CURRENTAND LIKELY FUTURE COMPETITION/SUBSTITUTES
7. “RETURN” ON INVESTMENT
-Ed Mahoney, MSU
Strategic Planning
Weights and Evaluations
Market
Contribution Strategic
Competition
to Mission Objectives Potential
1
2
3
4
5
6
7
9
8
+
+
+
-
+
+
+
-
7
+
+
+
+
+
-
6
Investment
Required
Weights
+
+
-
-Ed Mahoney, MSU
Revenues
Payback
Amount -Flow
6
5
4
-
+
+
+
+
+
-
+
+
+
-