Principles and Process Dr Lee Gruner RACMA 1 Strategic Planning

Principles and Process

Dr Lee Gruner RACMA1

Strategic Planning

Why plan?


“The best way to predict our future is to

create it”Stephen Covey

What is strategic planning?


A disciplined effort to produce fundamental decisions and actions that shape and guide what an organisation is, what it does and why it does it with a focus on the future

Why strategic?


Involves preparing the best way to respond to the circumstances of the organisation’s environment , whether or not its circumstances are known in advance.

Why planning?


Involves intentionally setting goals and

developing an approach to achieve the goals

Why does strategic planning fail?


Preparing the planNot involving the right peopleNot listening to the right peopleNot understanding what our business isNot having the right dataSetting unrealistic goals

Implementing the planSetting inappropriate timelinesResponsibilities for achievement not allocated or

inappropriately allocatedNo one responsible for monitoring progressChanges in environment, leadership, hospital role

Process of strategic planning


Should be done with a team of the right people

Decide on the processDo you have all the data you need?How much staff engagement is required?How critical is the plan to your future?Do you need a consultant to assist with

identifying issues, engaging staff, collecting data?

Do you need a strategic planning event?

Process of Strategic Planning


Once you have the right people and enough background data:Organise a strategic planning session- this may

take one to two days for a whole organisation / half to one day for a department

Take people away from the organisation so they can’t go and do some work

Turn off mobile phonesUse a professional facilitator to ensure you get the

outcomes Document the outcomes

Structure of the session


Identifying changes in the environment and our business

Understanding what business we are in and what business we could be in

Identifying the driving force of our business

Quality Directions Australia June 200510

Understanding what has changed?

How has our business changed in the last three to five years?

How has our industry changed in the last three to five years?

How is our business likely to change in the next three to five years?

How is our industry likely to change in the next three to five years?

Why is this important?Review of what we have achieved over timeAn understanding of how external factors have

impacted on our businessShared understanding of where we are now both

in the environment and in our businessMaking an educated guess as a group as to what

is likely to change externally and impact on our business

Making some group discussions about where our business is likely to go

This allows us to provide a degree of certainty in an uncertain future



What business are we (could we be) in?

What business(es) are we in? What business(es) could we be in? What business(es) should we be in? What business(es) should we not be in? What is unique or distinctive about us? Who are and should be our principal

customers, clients, or users? What are and should be our principal

products and services?


Driving forceThe primary determiner of the scope of future

services and markets.The driving force is the dominant factor that

most influences the making of major decisions. Services offered-delivers specific services for its

market. Market needs-focuses on meeting the needs of

specific markets Customer needs-focuses on meeting the needs of

specific set of customersHuman resources- leverages employee skills,

trainingService capability- leverages employee uniqueness,

depth


Driving forceServices offered-delivers specific services for its market-

services for community as a whole- we decide what we want to deliver- as a local hospital we think we need to provide these services

Market needs-focuses on meeting the needs of specific markets – we assess what our market needs and develop services to meet the needs- the community has specific needs and we will provide those services

Customer needs-focuses on meeting the needs of specific set of customers-diabetics have these needs and we will provide what they need

Human resources- leverages employee skills, training- uses special skills of staff to develop specific services-we can train our staff to provide specific services

Service capability- leverages employee uniqueness, depth- enhances staff capability to develop specific services

A new private cancer hospital

What is our driving force?A private company has 4 general hospitals.

It decides to build a new cancer hospital. This is the first private hospital in the area that specialises in cancer



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Driving force prioritisation


Mission statement

The products and services you provide, for whom and how

The statement should be:FocusedClearSpecificDistinctiveShort


Vision statementA concrete statement of your

ultimate dreams for the organisation and the world that you can impact through it.Future orientedEasy to understand and rememberReflect your company's uniquenessAmbitiousCreativeInspiringBrief Paints a picture of the future


SLOT analysis

Internal factorsStrengthsLimitations

External factorsOpportunities ThreatsConsider Political/ Economic/ Social /

Technological factors and their impact


Developing the strategy

How to fulfil the missionHow to move towards the visionDriving force is key to decision makingSecondary and tertiary drivers are decision

influencersConsider critical issues


Strategic Objectives

STRATEGIES NEED TO BE:

SpecificMeasurableAchievableRealisticTimely


Strategic Action Milestones

Timeframes- should be realisticPerson responsibleResources required- people/ capital/ moneyMeasurement of progress- determine what

the process should be

Documents

Principles and Process Dr Lee Gruner RACMA 1 Strategic Planning