This document provides an introduction to strategic planning. It begins by describing common problems with strategic planning such as having no clear purpose, not being based on objective information, and not linking to implementation. It then discusses the criteria for an effective strategic plan and defines strategy as setting actions to improve performance against rivals. The document uses an everyday example of setting health and fitness goals to lose weight to illustrate how strategic planning works, including identifying strengths, weaknesses, choosing a strategy, and then tactics to execute the strategy.

1. Lesson 1: What IS
Strategic Planning?
Introduction to Strategic Planning
Debbie Narver

2.  What are the problems and causes of failure in
strategic planning
 The criteria for effective strategic plans
 An everyday example
What we will cover?

3. • Often a misunderstood and misused
process
• “Bad habits” have become accepted
as the norm
Problems and Failures with Strategic Planning

4. Scenario 1
Our planning calendar says it’s time to do our strategic plan.
So, let’s invite all of our stakeholders to a session and get it
done. We will ask everyone what they think we should do for
the next 3 to 5 years, and write it on flipchart. Once we are
done, we will produce a nice report and give everyone a copy.

5. Scenario 2
Let’s hire a consult to do our strategic plan. That person can
go around asking everyone what they think we should do in the
next 3 to 5 years, then write up a really nice report with
graphics and buzz words.

6.  No clear purpose
 It’s not linked to vision and goals
 Opinions rather than based on real and objective
information
 Lack of a structured and systematic approach
 Not linked to action (implementation)
 Not aligned with the current reality, such as
resources
 No follow up evaluation
What causes failure with
Strategic Planning?

7. • Based on best practices
Criteria for an Effective Strategic Plan

8. What IS Strategy
• Definition from Essentials of Strategic Management,
C. Hills and G.Jones, 2008
“A set of actions that managers take to increase their
company’s performance relative to rivals”

9.  How will we achieve or vision and mission? How
can we be better than the competition?
 Creates focus. We can’t be all things to everyone
(ever tried???)
 Be proactive to avoid risk and leverage
opportunity
 Broad and long term view
 Guides operational decision making, budgets,
priorities
Why is it important?

10.  Lowest cost
 Differentiation – what is unique and valuable? To
whom?
 Niche (Focus) – excel in a narrow market, unique
customer segment
 Partnerships or Collaboration
 Mergers and Acquisitions
 Adding or removing lines of business
 Automation
 Early adopter (first to market)
Examples of Strategy

11.  Wish list
 To-do list
 Audit
 Operational plan
 Project plan
 Policy
What it is NOT

12. Planning Cycle
Executive
Corporate Strategic Plan
Business Unit
Goals and Targets
Employee Performance
Plan
Vision, Mission, Values
How to achieve
superior
performance
Guides
operational
decision
making and
performance
management

13. • Let’s walk through the concept with
something familiar
An every day example

14. Strategies define HOW
we achieve our goals
We often get bogged down in the detail (to-do list) before
clarifying the big picture. Let’s look at an everyday example.

15. Healthy Me
Fitness
Quit Smoking
Lose Weight
Vision
Goals

16. Lose Weight
Reduce Caloric
Intake
Increase Caloric
Output
Combination
(reduce intake
and increase
output)
Goal
Strategies

17. My Strengths My Weaknesses
• Like to be
active
• Good at
working in
groups
• Enjoy cooking
• Get bored with
routines
• Hate mornings
• Lots of social
eating
• Love chocolate

18. How do each of the strategies “fit” with my
strengths and weaknesses?
Evaluate the pros and cons of each
strategy based on your reality
Reducing Calories – I
enjoy food, cooking,
socializing and variety,
so can’t do anything too
restrictive.
Exercise – I like it when
there is variety and I’m
in a group. I would get
bored by myself or with
too much routine

19. Once we decide on a Strategy,
then we can talk about specific actions
Too often, people jump in with ‘we need to do this project
and that project’. And that’s where the endless wish list
happens. That’s often where we disconnect from the reality
of our strengths, weaknesses and resources. Let’s continue
with our example.

20. Combined
strategy
(reduce
intake and
increase
output)
Reduce Caloric
Intake – research
and decide on a
nutritional plan
that meets my
needs for variety Increase Caloric
Output – sign up
for group fitness
classes. Get my
friends involved.
Connect with
other like
minded people
for support and
encouragement
Strategy
Tactics

21. Learn at your own pace, and from any location with
engaging & convenient video based training
Visit our website to learn about leadership training
www.nmcstrategicmanager.com
Learn How to Lead Strategic Planning