Strategy and Planning in Competitive Environment

Guiding Policy and Bad Strategy

• Guiding policy is an overall approach chosen to cope with or overcome obstacles identified in the diagnosis.
• Coherent actions are steps that are coordinated with one another to work together to accomplish the guiding policy.
• Four major hallmarks of bad strategy include:
• Fluff - form of gibberish masquerading as strategic concepts or arguments.
• Failure to face the challenge - bad strategy fails to recognize or define the challenge.
• Lack of practicality - fails to bridge the gap between aspiration and action.
• Overlooking the essential aspect of developing concrete implementation plans.

The Strategic Planning Process

• Strategic planning is a way of thinking, acting, and learning that helps define long-term goals and shows how short-term aims and efforts contribute to the company.
• Strategic planning involves setting deadlines and milestones, and budgeting helps organizations make informed decisions about resource allocation.
• The S.M.A.R.T method is used to set achievable goals, addressing the what, how, where, when, why, and by whom.

The Strategic Planning Process Cycle

• The cycle involves monitoring, gathering and analyzing data, and summarizing progress using graphs and figures.
• Evaluation is done to reassess implemented strategies and the strategic issues that prompted them.

Forms of Bad Strategy

• Confusion of objectives with strategy - statements of desire rather than plans for overcoming obstacles.
• Wrong strategic objectives - fail to address critical issues or are impracticable.
• Two major forms of bad strategy include:
• Dog's-dinner objectives - a lengthy list of tasks that does not constitute a genuine strategy.
• Blue-sky objectives - statements of desire without a plan for overcoming obstacles.

Phases of Strategic Planning

• Phase 1: Organizing the process and analyzing the environment involves:
• Readiness assessment
• Planning a plan
• Mandate analysis
• Stakeholder assessment
• SWOT analysis and environmental scan
• Phase 2: Identifying strategic issues
• Phase 3: Developing strategies and action plans
• Phase 4: Implementing using the S.M.A.R.T method

Strategy and Planning

• Strategy involves long-term goals and objectives, competing and winning in a competitive environment.
• Short-term plans are detailed sets of actions designed to achieve desired outcomes, outlining steps, resources, timelines, and responsibilities.
• Strategic thinking is a mindset or cognitive approach that involves understanding complex interrelationships, recognizing patterns, and generating insights to guide decision-making.

Short and Long-term Strategic Planning

• Short-term plans address immediate business actions and challenges, involving setting daily, monthly, and quarterly goals that create momentum for the organization.
• Long-term plans involve strategic planning, aligning leaders to a common plan, and guiding management decisions.

Analyzing the Organization

• Analyzing the organization's vision, mission, and values ensures alignment with strategic planning.
• Vision statements inspire and provide a roadmap for the organization.
• Mission statements provide a clear, concise description of who the company is, what they do, and why they do it.
• Value statements guide and give directions to the organization's decision-making process.