strategic Issues and challenges; prioritization, possible solutions

1. ME 217/DM 214 Strategic Planning

2. Prof. Jo B. Bitonio, DPA
Princessita M. Fontanilla
Michael John Fontanilla
Reporters/Discussants

3. “If I had an hour to
solve a problem and
my life depended on
the solution, I would
spend the first 55
minutes determining
the proper question to
ask, for once I know
the proper question, I
could solve the
problem in less than
five minutes.”

4. How to
identify
Strategic
Issues?

5. GETTING STARTED: IDENTIFYING
ISSUES FACING THE ORGANIZATION
• HOW TO IDENTIFY
STRATEGIC ISSUES
• KEY ISSUES/CHALENGES IN
PANELCO III
• POSSIBLE WAYS TO RESOLVE
THE STRATEGIC ISSUES

6. IDENTIFYING THE STRATEGIC ISSUES
FACING THE ORGANIZATION
This step defines and
describes the issues at hand
succinctly, pinpoints the
factors that make a certain
issue a fundamental challenge.

7. IDENTIFYING THE STRATEGIC ISSUES
FACING THE ORGANIZATION
• In Bryson’s Strategic Planning
Process, this phase will allow the
organization to determine a list of
issues they face, divide that list into
categories of strategic or
operational and finally, arrange
these issues in order, such as priority,
logical or temporal. (Bryson, 2004)

8. IDENTIFYING THE STRATEGIC ISSUES
FACING THE ORGANIZATION
• Identifying the strategic issues
will help the stakeholders
determine what is most important
to an organization and will help
them formulate strategies to
address these issues.

9. WHAT IS THE DIFFERENCE BETWEEN ISSUE AND
PROBLEM?
Some business managers mistakenly use the
term “issue” and “problem” interchangeably;
however, doing so may complicate the daily
decision making processes by lumping all issues
and problems together and possibly make a bad
situation worse. Separating issues from
problems helps to prevent smaller issues from
becoming problems. This business practice is so
important that there is an entire management
discipline predictably called, “issue management”
(IM). http://www.studymode.com/essays/Issues-Vs-Problems-648552.html

10. WHAT IS THE DIFFERENCE BETWEEN ISSUE AND
PROBLEM?
The Dow Jones says that “successful issue management depends
on addressing concerns before they become full blown problems.”
1. Therefore, it is deduced that issues are smaller, less threatening
and require minimal effort to find resolution – but left unchecked
could expose the organization to greater risk. There is an analogy
to help put this concept into proper perspective – “forgetting your
lunch is an issue, but losing your job is a problem.
2. Therefore, the difference between an Issue and a problem can be
explained this way, “Problems are solved. Issues need to be
resolved…. To solve is to explain and to resolve is to
separate a thing into its component parts or
elements, then determine a course of action.” (Jaques
2007. P 36, 37)

11. HOW TO IDENTIFY STRATEGIC ISSUES
1. Brainstorm Potential Strategic Issues
Review vision, company values, opportunities,
strengths as well as threats.
Frame issues in the form of questions
2. Develop an Understanding Why an Issue is
Strategic
Discuss each identified issue
Determine which issues are critical or
strategic
Test for strategic quality of an issue.

12.  TEST FOR STRATEGIC QUALITY OF AN
ISSUE
Does It:
• Pose a threat?
• Present an opportunity?
• Require significant change?
• Involve conflict/tension between choices?
• Tend to be complex?
• Generally project well into the future?

13. 3. Determine the consequences of not
addressing an issue:
• Each strategic issue will generally fall
into the following categories:
a) No action is currently required, but
the issue should be monitored for
future action
b) Action can be determined through
strategic planning process.
c) The issue appears urgent and
requires an important response.

14.  Failure to address the
identified strategic issues
eventually results in the
realization of an external
threat, lost opportunity, the
lingering or worsening of an
identified problem and
ultimately a failure to
achieve the corporate vision.

15. 4. Consolidate overlapping or
related issues:
 Combine related issues
 Determine how are they
related
 The fewer the issues, the
better.

16. 5. Arrange issues into an
ordered list:
 Three ways:
a) Logical order
b) Impact order
c) Temporal order

17. ABSTRACT:
The soul of Strategic Planning is to identify the Strategic Issues Facing the
Organization.
How?
- Brainstorming (Strengths and Weaknesses)
- Understanding its importance and relevance (Urgency)
- Know its consequences (Pros and Cons)
- Consolidate concerns (Arrange in an ordered list)
- Address the issue

19. THE REAL SCENARIO

20. KEY ISSUES/CHALLENGES
1) ISSUES FACING THE COOPERATIVE:
• Deregulation of Power Industry
• Passage of R.A. 10531, otherwise known as “An
Act strengthening the NEA, further amending for
the purpose of P.D. 269, as amended”
• Rampant pilferage/illegal connection
• Increasing Account Receivables
• Exposure from local politics
• Numerous reportorial requirements by the
government agencies

21. KEY ISSUES/CHALLENGES
2) ISSUES FACING THE MANAGEMENT/HEAD OFFICE:
• Clamors against the implementation of the
Reorganization
• Employees Union Advocacies
• Subdued Interpersonal relationship among heads
and associates
• Controversies as to the duties and functions of
the BOD’s and the Management
• Partial implementation of policies
• Technological Advancement is not one of the
priorities

22. KEY ISSUES/CHALLENGES
3) ISSUES FACING THE AREA
OFFICES/SUB-OFFICES:
• Weak customer relations
• Diverse interpretation of policies
and/or other rules and regulations
of the cooperative
• Presence of language barrier

23. DISTINGUISH
ISSUES &
PROBLEMS

24. Environmental Analysis Issues Problem
1. Deregulation of Power Industry
2. Passage of R.A. 10531, otherwise known as
“An Act strengthening the NEA, further
amending for the purpose of P.D. 269, as
amended”
3.Rampant pilferage/illegal connection
4. Increasing Account Receivables
5. Numerous reportorial requirements by the
government agencies

25. Environmental Analysis Issues Problems
6. Clamors against the implementation of
the Reorganization
7. Employees Union Advocacies
8. Subdued Interpersonal relationship
among heads and associates
9. Controversies as to the duties and
functions of the BOD’s and the
Management
1o. Partial implementation of policies
11. Technological Advancement is not one of
the priorities

26. Environmental Analysis Issues Problems
12. Weak customer relations
13. Diverse interpretation of policies
and/or other rules and regulations of
the cooperative
14. Presence of language barrier
15. System lost too high (14%)
16. Violation of the BOD Term of office
17. Too much Board meetings
Note: 15, 16, 17 lifted from CDA Findings during the inspection

27. DISTINGUISH BETWEEN
TASK AND SOCIETY
ENVIRONMENT

28. Environmental Analysis Task
Environment
Societal
Environment
1. Deregulation of Power Industry
2. Passage of R.A. 10531, otherwise known as
“An Act strengthening the NEA, further
amending for the purpose of P.D. 269, as
amended”
3.Rampant pilferage/illegal connection
4. Increasing Account Receivables
5. Numerous reportorial requirements by the
government agencies

29. Environmental Analysis Task
Environment
Societal
Environment
6. Clamors against the implementation of
the Reorganization
7. Employees Union Advocacies
8. Subdued Interpersonal relationship
among heads and associates
9. Controversies as to the duties and
functions of the BOD’s and the
Management
1o. Partial implementation of policies
11. Technological Advancement is not one of
the priorities

30. Environmental Analysis Task
Environment
Societal
Environment
12. Weak customer relations
13. Diverse interpretation of policies
and/or other rules and regulations of
the cooperative
14. Presence of language barrier
15. System lost too high (14%)
16. Violation of the BOD Term of office
17. Too much Board meetings
Note: 15, 16, 17 lifted from CDA Findings during the inspection

31. PRIORITIZATION

32. Task Environment Ranking
1. Rampant pilferage/illegal connection
2.. Increasing Account Receivables
3. Numerous reportorial requirements by the
government agencies
4. Clamors against the implementation of the
Reorganization
5. Employees Union Advocacies
6. Subdued Interpersonal relationship
among heads and associates
7. Controversies as to the duties and functions
of the BOD’s and the Management
8. Partial implementation of policies
9. Technological Advancement is not one of
the priorities
10. Weak customer relations

33. Task Environment Ranking
11 . Diverse interpretation of policies and/or
other rules and regulations of the
cooperative
12. Presence of language barrier
13. System lost too high (14%)
14. Violation of the BOD Term of office
15. Too much Board meetings
Rank the order of importance from 1-15 - most
important to less important

34. Society Environment Ranking
1. Deregulation of Power Industry
2. Passage of R.A. 10531, otherwise
known as “An Act strengthening
the NEA, further amending for the
purpose of P.D. 269, as amended”

36. HOW TO ADDRESS STRATEGIC ISSUES?
Areas to look at:
I. Achievements and Failures (Net Profit, Staff
Retention, Gained Market/Lost Clients, Low Sales,
Low Efficiency)
II. Profitable Products and Services
III. Financial Ratios (Key Ratios, Benchmarks, Targets)
IV. External Forces (PEST) – by Elsa Richards
(EL)

37. Profitable Products and Services Illustration
Company
A
Company
B
Company
C
Gross Sales 125M 275M 75M
Expenses 50M 280M 10M
Gross Profit 75M -5M 65M

38. External Factors:
P POLITICAL
E ECONOMIC
S SOCIAL
T TECHNOLOGICAL
E ENVIRONMENT
L LEGAL

40. WHERE DO YOU BELONG?
There are 3 kinds of people
1) those who make things happen;
2) those who watch things happen; and
3) those who wonder what happened.

42. Thank you so much!
Great Strategizing!

43. References:
1.CDA Strategic Planning Module
2.Florida MAPP Field Guide, Nov. 2008
Update
3.Strategic Planning (Research
Foundation Methodology)
4.http://pa5251.wikipaus.com/++5.+ident
ify+the+strategic+issue+facing+the+or
ganization