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VISIONING AND STRATEGIZING EXERCISES
Prof. Ben Kiregyera
NSDS Workshop,
Addis Ababa, Ethiopia
11 August 2005
22
COVERAGE
I. Generic strategic management model
II. SWOT Analysis
III. Visioning exercise
IV. Strategizing exercise
V. Example of strategic objectives/goals
33
I. GENERIC STRATEGIC MANAGEMENT MODEL
Visioning
exercise
Perform
External
Audit
PerformInternalAudit
Develop Strategic
Objectives
Monitor,
Control and
Evaluate
Strategy Formulation Strategy Implementation Evaluation
Performance Feedback loops
Implement & execute strategies
Develop & select
strategies
44
Strengths and weaknesses (Internal )
controllable activities within an organization which are performed especially well or poorly need to be identified and evaluated in functional areas strategy - to build on organization’s strengths and mitigate or eliminate weaknesses
Opportunities and threats (External )
economic, social, environmental, political, legal, governmental, technological trends and events that could benefit or harm the organization largely beyond the control of a single organization strategy - take advantage of opportunities and avoid or reduce impact of threats
II. STRENGTHS, WEAKNESSES, OPPORTUNITIES AND THREATS (SWOT) ANALYSIS
55
Internal assessment/audit
• organization’s strengths which cannot be easily matched
called “distinctive competencies”• strategies should build on these competencies• assessment/audit process involves
gathering, assimilating and evaluating
information about organization’s operations determining and prioritizing important strengths
and weaknesses determining between 10 –20 most important
strengths and weaknesses• should involve managers and staff in assessment/audit• excellent vehicle or forum for improving communication
in organization
66
External assessment/audit – environmental scanning
• identifies and evaluates trends and events beyond control of organization
• develops a finite list of opportunities that could benefit
organization and threats that should be avoided
• process should involve as many managers and staff
as possible
• gather, assimilate and evaluate information
List in order of priorities critical success factors
Strategy formulation involves aligning key external and internal factors
77
Defined
Process that seeks to create a compelling and pen picture of a desirable future state that often represents quantum changes from the present
Vision answers the question: What do we want to become?
“Where there is no vision, a people perish” – Proverbs 29:18
“A corporate vision can focus, direct, motivate, unify and even excite a business into a superior performance.” – John Keane
This is possible if people engaged in process
III. VISIONING EXERCISE
88
What is a mission?
• an enduring statement of purpose that distinguishes an organization from other organizations
• a declaration of an organization’s “reason for being”
• answers pivotal question: What is our business?
• also called a creed statement; it is a statement of: purpose philosophy beliefs business principles
• is foundation for priorities, strategies, plans and work
assignments
N.B: preparation of a mission statement is 1st step in
strategic management
99
A good mission statement should:
• describe an organization’s purpose, customers, products or services, markets, philosophy and basic technology• be comprehensive and broad in scope • be inspiring, supplying energy, motivating and galvanizing organization • generate the impression that the organization is successful, has direction and is worthy of time, support and investment• create a commonality of interest that lifts workers into a new world of opportunity and challenge• create an “emotional bond” and “sense of mission” for managers and staff of the organization
1010
Examples of vision/mission statements
Office of Chief Government Statistician – Zanzibar
Vision: to become a “center of excellence” for statistical production and for promoting a culture of evidence-based policy and decision-making
Mission: to coordinate production of official statistics, provide high quality statistical data and information and promote their use in planning, decision-making, administration, governance, monitoring and evaluation
Statistics South Africa
Vision: to become a premier knowledge centre that provides leadership in statistical production and promotes a culture of empirical evidence-based policy, planning and decision- making
Mission: to collect, process, analyse and disseminate high quality official and other statistical data and information and co-ordinate the national statistics system in support of economic growth, socio-economic development, democracy and good governance
1111
Uganda Bureau of Statistics
Vision: to become a “centre of excellence” in statistical
production in Africa
Mission: to produce, coordinate and disseminate official statistics in order:
• support decision-making processes in all aspects of
life• inform and underpin the national and local
government planning processes
• inform public policy analysis and debate, and
• monitor the impact of government initiatives, policies
and programmes.
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Statistics Denmark
Vision: Statistics Denmark must be among the best statistical institutions, measured on the results achieved.
Mission: to produce and disseminate all trustworthy statistics on social and economic trends in society, which are an essential condition for its democracy and economy to work
Statistics Norway
Vision: An institution that counts
Mission: Through collection, processing and dissemination of statistics and analysis, Statistics Norway shall contribute to:
- strengthen and further develop democracy and a more informed public debate- ensure that economic and social policy and management are based on the best possible factual basis- improve the functioning of the market system
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an organization needs core corporate values that guide
the conduct and behaviour of staff and decision-making
inspire and galvanize individual efforts towards
improved performance
Examples of core values for Zambia CSO
user-focus quality consciousness integrity and credibility empowerment
Developing Core Values
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Gap analysis
Current situation
Desired future
situation
Evaluate the gap between current
situation and envisioned situation
Develop specific strategies &
allocate resources to close gap
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Strategy defined
is broad direction for achieving long-term objectives a declaration of intent, defining where you want to be in the long-term ensures that day-to-day decisions fit in with long-term interests of the organization
Strategizing
• setting strategic objectives or goals – overall
accomplishments to be achieved
• determining strategies – overall methods to achieve
strategic objectives or goals
IV. STRATEGIZING EXERCISE
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Strategic objectives
• are long-term objectives covering more than one year
• without long-term objectives, an organization would
drift aimlessly towards some unknown end
• no organization or individual can be successful
without clear objectives
• purpose of strategic objectives is to convert vision
and mission into specific performance outputs and
outcomes
• should be related to key functions of organization,
demonstrating broad coverage of key areas of service
• specific objectives should be few in number (3 - 8)
1717
Annual objectives
• represent the basis for resource allocation• are a primary mechanism for evaluating managers• are the major instrument for monitoring progress
towards achieving long-term objectives• establish organizational, divisional, section priorities
Objectives should be SMART (Specific, Measurable,
Achievable, Relevant and Time-bound)
1818
Outputs
o key outputs represent milestones of organization’s
strategic objectives
o represent achievements not the process or activities
o importance of outputs:
customer satisfaction
promotion of image of an organization
motivating staff
measurement of performance of organization
staff appraisal
control of organization's operations
monitoring and evaluation
benchmarks for others to copy
1919
Planning management process
Enables the organization to:o quantify long-term outcomes it wishes to achieveo establish short-term milestoneso identify mechanisms and provide resources for
achieving them o invest in performance drivers - people (e.g. skilling & re-skilling employees) - information systems and procedures, - development of new products through innovation
2020
Strategy analysis and choice
• Strategy analysis and choice seeks to determine
courses of action that will benefit organization
• objectives, mission, external and internal audit
information are the basis for generating and
evaluating alternative strategies
• the information helps avoid personal biases,
politics, emotions, personalities and holo error
(tendency to put too much weight on a single factor)
2121
• manageable set of most attractive alternatives developed• look at advantages, disadvantages, trade-offs, costs
and benefits of strategies
• produce a prioritized list of best strategies
Balancing act
Criteria for making strategic choices• consistency: should not present inconsistent goals or
policies• Consonance: need for strategies to examine sets of trends
as well as individual trends. • Strategy must represent an adaptive response to external
environment (corporate agility).
2222
• feasibility: refers to ability of a strategy to be
attempted within physical, human and financial
resources of the organization
• a strategy must neither overtax available resources
nor create unsolvable sub-problems
• competitive advantage: strategy must provide for
creation and/or maintenance of competitive advantage
2323
1. Organizational development (statistical awareness, coordination, networking,
information sharing, statistical legislation))
2. Institutional development (management systems, human resources, staff
motivation, etc)
3. Infrastructure development and equipment(office, survey infrastructure, IT infrastructure, statistical library, etc.)
V. EXAMPLE OF STRATEGIC OBJECTIVES
FOR NAMIBIA NSS
2424
4. Data development (enhancing data quality, improving censuses and surveys, improving administrative data, new statistical products)
5. Data management (triangulation, integration, analysis, storage and
security, databases, reporting, dissemination & access)
6. Implementation, monitoring, evaluation and reporting (action plan, policies, performance
indicators, targets, benchmarking, reporting system)
7. Proposed budget and financing (recurrent and development budget, investment plan, sustainability) END
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