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STRATEGIC PLANNING

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MANAGEWARE STRATEGIC PLANNING PART II PROCESS & PLAN COMPONENTS Office of Planning and Budget Division of Administration State of Louisiana January 2013 Louisiana ... – PowerPoint PPT presentation

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Title: STRATEGIC PLANNING


1
STRATEGIC PLANNING
  • PART II
  • PROCESS PLAN COMPONENTS

Office of Planning and Budget Division of
Administration State of Louisiana
2
Strategic Planning
ANSWERING THE FIVE MANAGEMENT QUESTIONS
APPLYING THE STRATEGIC PLANNING PROCESS,
COMPONENT BY COMPONENT
3
APPLYING THE STRATEGIC PLANNING PROCESS
Who are we?
VISION
MISSION
PHILOSOPHY (VALUES)
Together, these constitute the organizations
unique identityits organizational DNA.
4
APPLYING THE STRATEGIC PLANNING PROCESS
Who are we?
CRYSTALLIZING THE ORGANIZATIONS IDENTITY
  • Linking vision, mission, and values creates a
    powerful synergy.
  • Each is important yet they are codependent.
  • Without a vision, there is no inspiration.
  • However, a vision without a mission is an
    impractical notion.
  • And a mission without values could lead to an
    "ends justify means" philosophy.

Crystallizing the organization's identity is a
responsibility of
leadership but, to be successful, it should be
based on input
from all.
5
APPLYING THE STRATEGIC PLANNING PROCESS
VISION
A COMPELLING CONCEPTUAL IMAGE OF THE DESIRED
FUTURE
Your visions become your reality. - Star Wars
The Phantom Menace
6
APPLYING THE STRATEGIC PLANNING PROCESS
VISION
  • A COMPELLING CONCEPTUAL IMAGE OF THE DESIRED
    FUTURE
  • A vision statement should be
  • brief and memorable
  • inspiring and challenging
  • descriptive of the ideal
  • descriptive of future service levels
  • extraordinary but authentic
  • appealing to everyone in the organization and to
    customers and other stakeholders

7
APPLYING THE STRATEGIC PLANNING PROCESS
INSPIRING VISIONS
To be a low cost producer of the highest quality
products and services that provide the
best customer value.
Ford Motor Company
North Carolina will be a desirable place to live
a productive, rewarding and satisfying
life. Its people will have a shared sense of
place, stewardship and values.
Commission for a Competitive North Carolina
To provide innovative and creative leadership
focused on outcomes and improvements
that promote a new image for Louisiana.
Louisiana Division of Administration
Minnesota's economic activity will create wealth
and provide a good standard of living
for all our people.
Minnesota Milestones

8
APPLYING THE STRATEGIC PLANNING PROCESS
MISSION
  • A BROAD, COMPREHENSIVE STATEMENT OF PURPOSE
  • The mission identifies what an organization does
    and for whom it does it. That is, it describes
    an organizations products or services and its
    customers.
  • The mission is all encompassing and rarely
    changes. It is the ultimate rationale for the
    existence of the organization.
  • A well-written mission statement
  • Identifies purpose but not process.
  • Identifies customers or users of the
    organizations products.
  • Identifies services or products provided by the
    organization.
  • Is clear and succinct.

9
APPLYING THE STRATEGIC PLANNING PROCESS
MEANINGFUL MISSION STATEMENTS
  • EXAMPLES
  • The Alliance for Youth, led by General Colin
    Powell, is dedicated to mobilizing individuals,
    groups and organizations from every part of
    American life to build and strengthen the
    character and competence of our youth.
  • - Americas
    Promise
  • California Literacy, Inc. is a non-profit,
    volunteer assisted, educational organization
    which provides statewide leadership to new and
    existing literacy programs and their students by
    offering diverse training, resources,
    consultation, and advocacy to help people gain
    the literacy skills they need to participate more
    effectively in society.
  • - California
    Literacy Incorporated
  • The mission of the Education Commission of the
    States is to help state leaders develop and carry
    out policies that promote improved performance of
    the education system.
  • - Education Commission of the States

10
APPLYING THE STRATEGIC PLANNING PROCESS
MEANINGFUL MISSION STATEMENTS
LOUISIANA The mission of the Department of
Environmental Quality is to maintain a healthful
and safe environment for the people of
Louisiana. The mission of the Department of
Health and Hospitals is to protect and promote
health and to ensure access to medical,
preventive, and rehabilitative services for all
citizens of the State of Louisiana.
11
APPLYING THE STRATEGIC PLANNING PROCESS
MEANINGFUL MISSION STATEMENTS
LOUISIANA "The mission of the Criminal Law and
Medicaid Fraud Program is to seek justice on
behalf of the citizens of the State of Louisiana
by the execution of superior, professional, and
effective investigation and prosecution of all
matters referred to the Department of
Justice. FEDERAL GOVERNMENT The mission of
the Office of Management and Budget (OMB) is to
help the President in carrying out his
constitutional and statutory duties.  
12
APPLYING THE STRATEGIC PLANNING PROCESS
WRITING A MISSION STATEMENT
POINTER Write a mission statement with the
assumption that readers have no knowledge of the
organization, what it does, whom it serves, why
it is needed, or how it works. POINTER Avoid
using technical terminology, abbreviations, and
acronyms. POINTER To develop a brief, clear
mission statement, imagine giving a one-minute
explanation of the organization to a legislative
committee, the general public, or a community
group. Think about how to best describe the
organization in terms they can understand.
13
APPLYING THE STRATEGIC PLANNING PROCESS
WRITING A MISSION STATEMENT
  • POINTER Use the following template to help
    develop a mission statement.
  • The purpose of the (fill in the name of the
    organization) is to provide
    (identify the service or deliverable) to
    (identify the customers who will receive the
    service or benefit from the service or
    deliverable) .

14
APPLYING THE STRATEGIC PLANNING PROCESS
WRITING A MISSION STATEMENT
Some organizations may opt to expand the mission
statement by adding one of the following phrases
to the end of the mission statement in order
to____________________________________________
or so that _____________________________________
_________ or so they can _______________________
__________________.   Although this additional
material is not required, it is sometimes helpful
to an organization (particularly, at the program
or activity level) that is struggling to identify
desired outcomes (goals and objectives) and
performance measures. Use this approach
cautiously, however, in order to avoid rambling,
unfocused mission statements.
15
APPLYING THE STRATEGIC PLANNING PROCESS
PHILOSOPHY (VALUES)
CORE VALUES DESCRIBING HOW THE ORGANIZATION
CONDUCTS ITSELF IN CARRYING OUT ITS
MISSION Philosophy puts a foundation of
principles or beliefs behind the vision and
mission. Philosophy statements express the
organizations attitude about three
things PEOPLE The way in which people inside
and outside the organization are
treated. PROCESS The way in which the
organization is managed, decisions are made, and
products or services are produced. PERFORMANCE
Expectations concerning the quality of its
products and services.
16
APPLYING THE STRATEGIC PLANNING PROCESS
EXPRESSIVE PHILOSOPHY STATEMENTS
"We want to give the best customer service of any
company in the world." - International
Business Machines  "Working together to create
an environment for positive change." -
Louisiana Division of Administration   Quality
is job one. - Ford Motor Company
17
APPLYING THE STRATEGIC PLANNING PROCESS
EXPRESSIVE PHILOSOPHY STATEMENTS
"Economic development is primarily a private
sector phenomenon, the offspring of an active
free enterprise system. Actions taken by
government should be designed to foster private
development, not to supplant it. Government
should attend to infrastructure needs education,
public sector research and development,
transportation, and communications.
Appropriations should be viewed as investments in
the economic future, not as expenditures.
Government should provide a stable and fair tax,
regulatory, and legal environment in which
business may be done efficiently and profitably.
In many cases, strong, effective public-private
partnerships should be utilized to achieve
economic development objectives. Louisiana must
continue with its significant and sustained
efforts to change the way it does business.
While the new Louisiana called for in Vision 2020
will be a better place economically,
educationally, and environmentally, it should
remain identifiably Louisiana, a place like no
other." - Louisiana Vision 2020 (2003 Update)
18
APPLYING THE STRATEGIC PLANNING PROCESS
EXPRESSIVE PHILOSOPHY STATEMENTS
All members of the Department shall serve the
public to the best of their ability by being
dedicated and accountable and by managing all
allocated resources effectively and efficiently.
This agency seeks to preserve the peace and to
protect the persons, property, rights, and
privileges of all people in the state of Texas
through ethical leadership and superior employee
development. To this end, it is imperative that
all employees uphold the Department motto of
COURTESY SERVICE PROTECTION and respect the
constitutional right of all persons to liberty,
equality, and justice. - Texas
Department of Public Safety
19
APPLYING THE STRATEGIC PLANNING PROCESS
What makes the organization unique?
CRYSTALLIZING THE ORGANIZATIONS IDENTITY
VISION
MISSION
PHILOSOPHY (VALUES)
20
APPLYING THE STRATEGIC PLANNING PROCESS
Where are we now?
INTERNAL/EXTERNAL ASSESSMENT
AN ANALYSIS AND EVALUATION OF INTERNAL CONDITIONS
AND EXTERNAL FACTORS THAT AFFECT THE
ORGANIZATION
The process of conducting an assessment if often
referred to as a SWOT analysis because it
involves a review of an organizations internal
Strengths and Weaknesses and external
Opportunities and Threats. A thorough
understanding of both internal and external
factors enables planners to most advantageously
position the organization to respond to its
environment and prosper in the future. The
internal/external assessment should be conducted
prior to goal setting.
21
APPLYING THE STRATEGIC PLANNING PROCESS
INTERNAL/EXTERNAL ASSESSMENT
Internal/external assessment involves Situation
Inventory an assessment of an organizations
position, performance, problems, and
potential. Environmental Scan an analysis of
key external elements or forces that affect the
environment in which an organization
functions. Foresight or Anticipation explicit
efforts to systematically identify, monitor, and
analyze long-term trends and issues that are
likely to affect the organizations future
environment and to examine the implications those
trends and issues may hold for alternative
organization goals and possible organization
actions. Issue Analysis an identification and
analysis of strategic issuesproblems or concerns
of critical importance to the organization and
its customers, other stakeholders, and
expectation groups.
22
APPLYING THE STRATEGIC PLANNING PROCESS
SITUATION INVENTORY
AN ASSESSMENT OF AN ORGANIZATION'S POSITION,
PERFORMANCE, PROBLEMS, AND POTENTIAL
Position
Customers
Services
Performance
Authority
Problems
Capacity
Potential
Track Record
Strengths
Opportunities
Weaknesses
23
APPLYING THE STRATEGIC PLANNING PROCESS
CONDUCTING A SITUATION INVENTORY
  • A situation inventory asks
  • Who are the organizations customers (internal
    and external), other stakeholders, and
    expectation groups? What are their needs and
    expectations?
  • Stakeholders
  • Customers
  • Compliers
  • Expectation Groups
  • Where has the organization been?
  • What is the track record?
  • What has changed?

24
APPLYING THE STRATEGIC PLANNING PROCESS
CONDUCTING A SITUATION INVENTORY
  • Where is the organization now?
  • What are the organizations current programs and
    activities? Under what authority does the
    organization operate them?
  • Does the existing program structure make sense?
    If not, what changes would benefit both the
    organization and its customers?
  • What is going on in programs and activities? How
    do processes work? What is being done well?
    What is being done poorly? Are performance
    standards being met?
  • What is the public perception of current programs
    and activities?
  • What benchmarks compare the quality and cost of
    the services, programs, and activities?
  • Do current programs support one another? Are any
    in conflict? Do they support or coordinate with
    programs in other agencies? Do any conflict,
    duplicate or overlap?
  • Are planning, budgeting, and accountability
    integrated?

25
APPLYING THE STRATEGIC PLANNING PROCESS
CONDUCTING A SITUATION INVENTORY
POINTER When you break down a policy, program,
or process into its component parts, you use
"systems logic" to develop a model of how it
should work. INPUT OUTPUT OUTCOME
PROCESS
QUALITY
EFFICIENCY
Use metrics to gauge and assess your process,
diagnose problems, and formulate solutions.
26
APPLYING THE STRATEGIC PLANNING PROCESS
CONDUCTING A SITUATION INVENTORY
  • What opportunities for positive change exist?
    What remains to be accomplished?
  • How are the needs and expectations of customers
    changing?
  • Has the organization planned to accommodate that
    change?
  • What are the organizations strengths and
    weaknesses?
  • What advantages does the organization possess?
  • What barriers or constraints does the
    organization face?
  • What is the organizations capacity to act?
  • How can the organization build on its strengths
    and overcome its weaknesses?

27
APPLYING THE STRATEGIC PLANNING PROCESS
CONDUCTING A SITUATION INVENTORY
  • INFORMATION SOURCES
  • Policy development files
  • Internal databases
  • Annual reports
  • Budget requests
  • Undersecretary management/program evaluation
    reports (Act 160 reports)
  • Program evaluations
  • Financial and performance audits
  • Quality assessment surveys
  • Employees
  • Customers

28
APPLYING THE STRATEGIC PLANNING PROCESS
CONDUCTING A SITUATION INVENTORY
REMINDER
The strategic plan must include a brief
statement
identifying the principal clients and users of
each program and
the specific service or benefit derived by such
persons.
Remember to identify internal and external
customers during
the situation inventory. Relate these customers
to the services
or benefits they receive.
REMINDER
The information gathered as part of the
situation
inventory will be used throughout the planning
process. It will
help define mission, express philosophy, set
goals, formulate
objectives, build strategies, and select
performance indicators.
REMINDER
Keep records. Not only will this facilitate
and
enhance the rest of the planning process, but you
will be
prepared for performance audit.
29
APPLYING THE STRATEGIC PLANNING PROCESS
ENVIRONMENTAL SCAN
AN ANALYSIS OF KEY EXTERNAL ELEMENTS OR FORCES
THAT
INFLUENCE THE ENVIRONMENT IN WHICH AN
ORGANIZATION
FUNCTIONS
Many external factors influence an organization
and its mission.
Tradition
Public Opinion
Government
Demographics
Political Climate
Technology
Physical Environment
Economy
Marketplace
Use environmental scanning to
keep tabs on external factors.
30
APPLYING THE STRATEGIC PLANNING PROCESS
CONDUCTING AN ENVIRONMENTAL SCAN
  • An environmental scan examines the current
    environment and, combined with foresight
    methodologies, anticipates changes in the future
    environment. An environmental scan asks
  • What is the current environment?
  • What external environmental elements currently
    affect the organization? How? Do they help or
    impede the organization? Which are most critical?
  • What major current issues or problems affect the
    organization? Are these local, statewide,
    regional, national, or global in scope? Why are
    they of such importance?
  • What current events, issues, or trends have
    captured the attention of the public? How do
    these affect the organization?

31
APPLYING THE STRATEGIC PLANNING PROCESS
CONDUCTING AN ENVIRONMENTAL SCAN
  • How may the environment differ in the future?
  • What are the biggest external threats and
    opportunities?
  • What forces that might alter key elements of the
    environment are at work?
  • What are the most likely scenarios for the
    future?
  • Are trends likely to continue or are changes
    forecast?
  • What major new issues are anticipated?
  • What implications do these future forces and
    environmental changes (trends and issues) hold
    for the organization? Which are most critical?

32
APPLYING THE STRATEGIC PLANNING PROCESS
CONDUCTING AN ENVIRONMENTAL SCAN
INFORMATION SOURCES You could try But
we recommend
33
APPLYING THE STRATEGIC PLANNING PROCESS
CONDUCTING AN ENVIRONMENTAL SCAN
  • INFORMATION SOURCES
  • Federal and state government statistical reports
    and databases
  • Federal, state, and local government legislation,
    regulations, executive orders or actions,
    budgets, policy statements, and special studies
  • Court decisions and actions
  • National and regional professional organizations
    or associations
  • Interest or advocacy groups
  • Media
  • University and college resource centers
  • Agency advisory and governing boards

34
APPLYING THE STRATEGIC PLANNING PROCESS
CONDUCTING AN ENVIRONMENTAL SCAN
REMINDER
The strategic plan must include an
identification
of potential external factors that are beyond the
control of the
organization and that could significantly affect
the achievement
of its goals and objectives.
REMINDER
The information gathered as part of the
situation
inventory will be used throughout the planning
process. It will
help define mission, express philosophy, set
goals, formulate
objectives, build strategies, and select
performance indicators.
REMINDER
Keep records. Not only will this facilitate and
enhance the rest of the planning process, but you
will be
prepared for performance audit.
35
APPLYING THE STRATEGIC PLANNING PROCESS
FORESIGHT (OR ANTICIPATION)
  • Foresight methods generally fall into four
    categories
  • Issue identification - involves methods to
    identify policy issues that are likely to occur
    in the future.
  • Goal setting - generally used to develop
    directions or chart the future course for an
    organization.
  • Trends analysis - often used in demographic,
    economic, technological, and social forecasting,
    to analyze trends and attempt to project future
    developments.
  • Alternative futures - a method that uses scenario
    building to investigate possible or probably
    future paths.

36
APPLYING THE STRATEGIC PLANNING PROCESS
ANALYZING ISSUES
  • An issue is a matter in disputea point of
    controversy. Before an issue can be addressed,
    it must be analyzed. This involves
  • Define the issue or problem determine its
    parameters.
  • Understand who is affected and how they are
    affected.
  • Determine how serious and immediate the issue or
    problem is.
  • Project future trends for the issue or problem.
  • Determine the underlying causes of the issue
    identify and verify the key cause(s).
  • Assign a priority relative to other concerns.

37
APPLYING THE STRATEGIC PLANNING PROCESS
STRATEGIC ISSUES
  • ISSUES OF CRITICAL IMPORTANCE TO THE
    ORGANIZATION AS A WHOLE
  • Strategic issues are high priority issues that
    merit special attention. These might be
    described as the make you or break you kinds of
    issues. Strategic issues
  • may arise as a result of an organizations
    internal assessment
  • may be generated by external forces
  • may lead to strategic planning goals
  • may lead to management improvement efforts or
    budget modifications
  • may be addressed in the short-term or long-term
  • may emerge in an unexpected manner and become
    important after the strategic plan has been
    completed and approved.

38
APPLYING THE STRATEGIC PLANNING PROCESS
Where do we want to be?
  • GOALS AND OBJECTIVES
  • Goals establish direction and destination. They
    describe the general end results toward which
    effort is directed.
  • Objectives are specific, measurable targets for
    accomplishment.
  • Do not attempt to set goals and formulate
    objectives until you have completed the Where
    are we now? portion of the strategic planning
    process. Use the results of your
    internal/external assessment to support the
    setting of goals and formulation of objectives.

39
APPLYING THE STRATEGIC PLANNING PROCESS
GOALS
  • THE GENERAL END RESULT TOWARD WHICH EFFORT IS
    DIRECTED
  • Goals are a description of the desired future
    that is possible.
  • Goals chart direction and provide a framework for
    more detailed levels of planning.
  • Goals describe the to be state.

40
APPLYING THE STRATEGIC PLANNING PROCESS
Why set goals?
"Our plans miscarry because we have no aim. When
a man does not know what harbor he is making for,
no wind is the right wind." - Seneca (4 B. C. -
65 A. D.)   "If you don't know where you are
going, every road will get you nowhere." -
Henry Kissinger   "If you don't know where you're
going, be careful. You might get there." -
Yogi Berra   If you don't know where you are
going, any path is as good as another...but you
won't realize if you're lost, you won't know what
time you'll get there, you might unknowingly be
going in circles, and other won't understand how
they can help. And, since you could pass right by
without knowing it, you won't get the
satisfaction of having arrived. - Jim Lundy,
Lead, Follow, or Get Out of the Way
41
APPLYING THE STRATEGIC PLANNING PROCESS
CRITERIA FOR GOALS
  • Harmonize with the organizations vision,
    mission, and philosophy as well as other goals.
  • Are within the organizations authority.
  • Chart a clear course for the organization but do
    not determine specific ways to get there.
  • Reflect the primary concerns and strategic
    direction for the organizationnot a
    comprehensive listing of everything an
    organization does.
  • Reflect the results of an internal/external
    assessment and are developed in response to
    strategic or critical issues.
  • Encompass a relatively long period.
  • Tend to remain essentially unchanged until a
    shift in the environment under which they were
    created occurs.
  • Are challenging but realistic and achievable.
  • Have some degree of measurability.

42
APPLYING THE STRATEGIC PLANNING PROCESS
WRITING GOALS
  • POORLY WRITTEN GOAL STATEMENTS
  • GOAL To continue to provide services to
    customers.
  • (Whats wrong? Not challenging.)
  • GOAL To conduct one seminar in every institution
    each year.
  • (Whats wrong? Unclear purpose may be more
    appropriate as part of an objective or strategy.)

Try Again!
Try Again!
43
APPLYING THE STRATEGIC PLANNING PROCESS
WRITING GOALS
  • WELL WRITTEN GOAL STATEMENT
  • GOAL To create a clean, healthy, and attractive
    environment, minimizing pollution, litter, and
    physical deterioration while instilling civic
    pride.
  •  
  • (What's right? Clear direction and destination
    are identified. A strong framework for further
    planning is built. The goal provides clear
    pointers to areas in which specific objectives
    and effective strategies can be developed--for
    example, improvements related to "clean, healthy,
    and attractive environment," and reductions in
    pollution, litter, and physical deterioration.)
  •  

Well Done!
44
APPLYING THE STRATEGIC PLANNING PROCESS
WRITING GOALS
  • WELL WRITTEN GOAL STATEMENT
  • GOAL To assure clean and sufficient statewide
    water supplies through conservation, development,
    and pollution control in order to protect public
    health and preserve beneficial water uses.
  •  
  • (What's right? Again, clear direction and
    destination are identified and a strong framework
    for further planning is built. The goal can lead
    to the formulation of specific objectives related
    to water quality, supply, and usage as well as
    the development of strategies related to
    conservation, development, and pollution
    control.)

Well Done!
45
APPLYING THE STRATEGIC PLANNING PROCESS
WRITING GOALS
  • WELL WRITTEN GOAL STATEMENT
  • GOAL To promote traffic safety, the
    preservation of the peace, and the prevention and
    detection of crime.
  •  
  • (What's right? Again, clear direction and
    destination are identified and a strong framework
    for further planning is built. The goal can lead
    to the formulation of specific objectives and
    strategies related to traffic safety, law
    enforcement, crime prevention and
    investigation.)

Well Done!
46
APPLYING THE STRATEGIC PLANNING PROCESS
TIPS FOR GOAL SETTING
Hold your goal-setting session away from the
office. Use the information gathered in your
internal/external assessment. Verify that it is
within your authority to set goals in particular
areas. The number of goals will vary among
organizations. However, keep the number of goals
manageable.
47
APPLYING THE STRATEGIC PLANNING PROCESS
TIPS FOR GOAL SETTING
  • Goals may be internal or external.
  • Internal goals reflect improvements to process
    and productivity they are concerned with the way
    things are done.
  • External goals usually relate to major components
    of the mission or address strategic issues they
    are concerned with the things to be done.
  • Some strategic plans may have no internal goals
    these plans may address internal or process
    issues at a strategy level.
  • Other plans may contain several internal goals
    emphasizing an overriding need to address process
    changes.
  • However, strategic plans should not focus
    exclusively on internal goals.

48
APPLYING THE STRATEGIC PLANNING PROCESS
TIPS FOR GOAL SETTING
There is a natural tendency to focus on internal
issues, such as pay and civil service job
classification plans, communications, technology,
equipment, travel, training, management policies,
and organizational image. These are troubling
issues for many organizations, particularly since
available resources generally have not kept pace
with the demand for services. However, many of
these issues fall back on management by input."
"Managing for Results" shifts the focus to
outcomes rather than inputs.   Internal goals
should point to an end result that positions an
organization to provide better services or
outcomes. Many state agencies experience high
employee turnover rates because of low pay
scales others cannot provide the level of
employee training that is desired. A goal to
improve employee pay and training emphasizes
inputs it does not point to an improvement in
services or outcomes. In fact, this poorly
written goal elevates a strategy to goal level.
Improving employee pay and training is a means to
an end. That end result is a stable, skilled,
and equitably compensated workforce. Having such
a workforce would have a positive impact on the
services provided by the organization. Therefore,
a better way to address this issue would be a
goal to develop a stable, skilled, and equitably
compensated workforce.
49
APPLYING THE STRATEGIC PLANNING PROCESS
TIPS FOR GOAL SETTING
To the extent possible, goals should be placed in
a priority sequence. An internal/external
assessment reveals many issues that could be the
focus of managements attention and organization
resources. The goal-setting process must surface
the most vital and establish priorities among
them.
50
APPLYING THE STRATEGIC PLANNING PROCESS
OBJECTIVE
  • A SPECIFIC AND MEASURABLE TARGET FOR
    ACCOMPLISHMENT
  • Objectives describe specific results that a
    program seeks to achieve and set targets for
    performance.
  • Objectives are measurable, time-based statements
    of intent.
  • Objectives represent milestones, interim steps,
    or intermediate achievements toward realizing
    vision, mission, and goals.
  • Objectives relate to achievement, not means.

51
APPLYING THE STRATEGIC PLANNING PROCESS
CRITERIA FOR OBJECTIVES
Well written objectives are SMART.

That is, they are
S

pecific

M
easurable
A
A


gressive but
ttainable
R
esult-oriented
T
ime-bound
52
APPLYING THE STRATEGIC PLANNING PROCESS
WRITING OBJECTIVES
  • POORLY WRITTEN OBJECTIVES
  • OBJECTIVE To reduce processing time.
  • (What's wrong? The objective is not specific,
    measurable, or time-bound. How much reduction in
    what kind of processing will be achieved within
    what timeframe?)
  •  
  • OBJECTIVE To eliminate highway deaths.
  • (What's wrong? The objective is not realistic
    it is simply not possible to achieve this
    outcome. The objective sets up failure. Even if
    it were realistic, it does not specify a time
    frame.)
  •  

Try Again!
Try Again!
53
APPLYING THE STRATEGIC PLANNING PROCESS
WRITING OBJECTIVES
  • POORLY WRITTEN OBJECTIVES
  • OBJECTIVE To maintain current service levels
    through FY 2003-2004.
  • (What's wrong? This objective does not give
    specifics or target change. Perhaps the
    organization has had static funding levels and
    does not anticipate any additional revenues.
    Perhaps it is a challenge just to continue
    serving the same number of clients over the next
    few years. However, this objective fails to tell
    the full story.)
  •  
  • OBJECTIVE To receive and process applications
    for permits, collect application fees, and issue
    permits.
  • (What's wrong? This objective targets no
    specific outcome or time frame rather it seems
    to be a list of ongoing activities or strategies
    to achieve something. It is a list of what the
    program does, not what it accomplishes.)
  •  

Try Again!
Try Again!
54
APPLYING THE STRATEGIC PLANNING PROCESS
WRITING OBJECTIVES
  • WELL WRITTEN OBJECTIVES
  • OBJECTIVE To reduce the average cost of
    processing new hires by 5 (from the FY12 base of
    100) by June 30, 2018.
  • (What's right? A specific amount of change is
    targeted within a specified time frame. Progress
    can be measured and compared directly with the
    targeted outcome. The amount of change does not
    seem unreasonable.)
  •  
  • OBJECTIVE To reduce the state's highway death
    rate from 2.1 in 2012 to 1.9 by 2017.
  • (What's right? Again, a specific amount of
    change is targeted within a specified time frame.
    Progress can be measured highway death rate is
    a standard statistic calculated for each state
    annually and compared directly with the targeted
    outcome. The objective does not represent an
    impossible target.)
  •  

Well Done!
Well Done!
55
APPLYING THE STRATEGIC PLANNING PROCESS
WRITING OBJECTIVES
  • WELL WRITTEN OBJECTIVES
  • OBJECTIVE To maintain the number of clients
    served at 2,500 annually while holding per client
    cost to no more than 3,500 through FY 2016-2017.
  • (What's right? This organization anticipates a
    standstill budget over the next few years but
    will maintain service levels at the same cost per
    client by growing more efficient. This objective
    is specific, measurable, and time-bound as well.)
  •  
  • OBJECTIVE To reduce liquefied petroleum gas
    accidents by 10 between June 30, 2013, and June
    30, 2018.
  • (What's right. This objective targets a specific,
    measurable outcome within a designated time
    frame. One of the strategies to achieve this
    objective involves the permitting of handlers of
    liquefied petroleum gas.)
  •  

Well Done!
Well Done!
56
APPLYING THE STRATEGIC PLANNING PROCESS
FORMULATING OBJECTIVES
  • Review the organizations mission and goals.
  • Be sure that you understand the internal and
    external factors affecting the organization.
  • Decide what results you want.
  • Baseline performance benchmarks room for
    improvement
  • Targets
  • Variables or factors that may influence outcomes
  • Standards or expectations (mandated or not)
  • Consistency with policies, values, priorities
  • Set a time frame for achievement of results.
  • Build in accountability.

57
APPLYING THE STRATEGIC PLANNING PROCESS
FORMULATING OBJECTIVES
REMINDER

Each strategic plan must have a statement of

objectives relative to each program which the
organization
expects to achieve in attaining its goals. Each
plan must
include, where applicable, a description of any
program
evaluations used to develop objectives and an
identification
of the primary persons who will benefit from or be
significantly affected by each objective within
the plan.
REMINDER
Use the information gathered in your internal/
external assessment (situation inventory,
environmental scan,
foresight activities, and issue analyses) to
support the
formulation of objectives.
58
APPLYING THE STRATEGIC PLANNING PROCESS
FORMULATING OBJECTIVES
Consider the following input variables TARGET
GROUP VARIABLES Demographic and economic
characteristics of the target population. POLICY
AND PROGRAM VARIABLES Those things that the
program manipulates (such as resource allocation,
intensity of service, or incentives for
performance). EXTERNAL VARIABLES Factors not
controlled through the program that may have
independent and significant effects on outcomes
(such as economic downturns, population shifts,
technological advances, or cultural differences
or changes).
59
APPLYING THE STRATEGIC PLANNING PROCESS
FORMULATING OBJECTIVES
  • BASELINE PERFORMANCE LEVEL
  • Assess baseline performance levels before
    deciding how much change is needed or wanted.
  • A baseline is established with data collected at
    the beginning of an improvement process so that
    it can be compared with future data to measure
    progress and improvement. In other words,
    baseline performance represents the before
    state in a before/after evaluation.
  • If historical data are available, they can be
    used to determine the baseline. The baseline is
    usually derived from the most recent one-year
    period or, if appropriate, an average of several
    prior years. Sometimes industry averages can be
    used.

60
APPLYING THE STRATEGIC PLANNING PROCESS
FORMULATING OBJECTIVES
BENCHMARKING
Benchmarks are the highest levels of quality
within specific programs,
processes, or services.
gt Best in the business
gt Professional standards, accreditation
standards, or quality practices
gt Highest or lowest rankings (whichever is more
desirable)
gt Performance or workload levels set in statutes,
regulations, or official
guidelines
Benchmarking is the process of rating an
organization's practices,
processes, and products against the best and then
emulating them.
gt Seek out best-in-class performers inside or
outside your organization.
gt Study them to determine why they are the best
at what they do.
gt Apply what you have learned to your own
operations.
Benchmark for both best management practices and
best
measurement practices.
61
APPLYING THE STRATEGIC PLANNING PROCESS
FORMULATING OBJECTIVES
ROOM FOR IMPROVEMENT
After comparing baseline status and the
benchmarks for a particular program
or service, managers and staff know how far the
organization must go to equal
the best performers. This difference or gap
between the actual baseline
performance and the benchmark target represents
"room for improvement."
ROOM FOR IMPROVEMENT
BASE LEVEL PERFORMANCE
BENCHMARK
62
APPLYING THE STRATEGIC PLANNING PROCESS
TIPS FOR BENCHMARKING
63
APPLYING THE STRATEGIC PLANNING PROCESS
How do we get there?
STRATEGIES AND ACTION PLAN To achieve results, it
is not enough to know where you want to be. You
must know how to get there. Strategies indicate
in general terms how goals and objectives will be
achieved. Action plans detail tasks and assign
responsibilities for strategies.
STRATEGY The method used to accomplish goals
and objectives. ACTION PLAN A detailed
description of how a strategy will be implemented.
64
APPLYING THE STRATEGIC PLANNING PROCESS
HALLMARKS OF SUCCESSFUL STRATEGY BUILDING
  • Successful strategy building incorporates
  • Reality and reasonableness
  • Self-awareness
  • Awareness of competition
  • Emphasis on action, execution, and follow through
  • Willingness to change and/or take risks
  • Diverse thinking
  • Inclusiveness and perspective

65
APPLYING THE STRATEGIC PLANNING PROCESS
BUILDING STRATEGIES AND DEVELOPING ACTION PLANS
  • Alternative strategies may be identified through
  • Brainstorming how to achieve results
  • Researching what works
  • Evaluating what is already in place

66
APPLYING THE STRATEGIC PLANNING PROCESS
BUILDING STRATEGIES AND DEVELOPING ACTION PLANS
  • Cost-benefit analysis is an excellent tool.
    Cost-benefit involves calculating or estimating
    the known costs and potential benefits of a
    course of action under consideration. It is a
    method to compare various alternatives and
    facilitate a ranking of these alternatives.
  • Costs are generally considered to be the inputs
    required to implement a course of action. These
    include personnel, operating expenses, and
    capital expenses.
  • Benefits are the anticipated outputs (services
    provided) and outcomes (results) of the course of
    action.
  • Cost-benefit can be summarized as a comparison
    of
  • What do we give? What do we get?

67
APPLYING THE STRATEGIC PLANNING PROCESS
BUILDING STRATEGIES AND DEVELOPING ACTION PLANS
REMINDER Each strategic plan must include a
statement of each strategy that the organization
will use in achieving each stated goal and
objective an explanation of how duplication of
effort will be avoided when the operations of
more than one program are directed at achieving a
single goal, objective, or strategy and a
description of any program evaluations used to
develop strategies.
POINTER Be sure that you consider the costs and
benefits of alternative strategies explain the
rationale for your selected strategy or
strategies and keep records for process
documentation.
68
APPLYING THE STRATEGIC PLANNING PROCESS
BUILDING STRATEGIES AND DEVELOPING ACTION PLANS
69
APPLYING THE STRATEGIC PLANNING PROCESS
BUILDING STRATEGIES AND DEVELOPING ACTION PLANS
REMINDER Action Plans are valuable for internal
program management. However, they generally
should not be surfaced for inclusion in the
agency strategic plan.
POINTER Use the sample format for action plans
to set up action plans and the sample format for
tracking action plans to follow progress.
70
Let's take a break
When we come back, well talk about building in
accountability.
71
APPLYING THE STRATEGIC PLANNING PROCESS
How do we get there?
ACCOUNTABILITY
THE METHODS USED TO MEASURE RESULTS
To succeed, you have to know how well you are
doing. The most
comprehensive, elegant, and technically perfect
plan written is of no worth
unless it works.
What gets measured gets done.
What gets measured gets changed.
Accountability monitors progress. It tracks the
extent to which strategies
have been implemented. It measures performance
and compares actual
with expected results of goals and objectives.
Accountability must be built into the strategic
plan.
72
APPLYING THE STRATEGIC PLANNING PROCESS
BUILDING IN ACCOUNTABILITY
73
APPLYING THE STRATEGIC PLANNING PROCESS
HALLMARKS OF SUCCESSFUL PERFORMANCE
ACCOUNTABILITY
  • Built into strategic plans and policy development
  • Built into internal management and decision
    making
  • Primary focus on outcomes
  • Balanced sets of performance indicators
  • Consistent data over time
  • Internal and external comparisons
  • Reports regularly and publicly
  • Good feedback system

74
BUILDING IN ACCOUNTABILITY
APPLYING THE STRATEGIC PLANNING PROCESS
  • PERFORMANCE INDICATORS ARE THE TOOLS USED TO
    MEASURE PERFORMANCE.
  • Performance indicators are made up of two parts
  • Name of indicator - describes what you are
    measuring
  • Value of indicator - the numeric amount or level
    achieved during a given measurement period.
  • EXAMPLE
  • Indicator Name Indicator Value
  • Number of clients served 3,250

75
BUILDING IN ACCOUNTABILITY
APPLYING THE STRATEGIC PLANNING PROCESS
  • POINTER Concentrate on the development of a
    balanced set of performance indicators for each
    objective. A balanced set of indicators will
    provide a clear picture of performance without
    needless detail.
  • Louisiana uses five types of performance
    indicators
  • Input
  • Output
  • Outcome
  • Efficiency
  • Quality
  • A balanced set may include more than one of any
    indicator type and none at all of some.

76
BUILDING IN ACCOUNTABILITY
APPLYING THE STRATEGIC PLANNING PROCESS
  • Act 1465 required that a strategic plan include,
    for each objective, one each of four kinds of
    performance indicators.
  • Input
  • Output
  • Outcome
  • Efficiency
  • Act 1169 of 1999 amended Title 39 to require at
    least one of any of the following
  • Outcome
  • Efficiency
  • Quality
  • accompanied by as many input and output
    indicators as needed.
  • SO, NOW YOU CAN DEVELOP, USE, AND REPORT A
    BALANCED SET OF PERFORMANCE INDICATORS FOR EACH
    OBJECTIVE.

77
BUILDING IN ACCOUNTABILITY
APPLYING THE STRATEGIC PLANNING PROCESS
Performance indicators are based on process or
systems logic--that is, how the system or process
works.
Inputs
Outputs Outcomes
Process
(Products)
(Results)
(Demand)
(Services)
(Need)
(Size of Problem)
(Resources)
Outputs
(Expenditures compared to productivity caseload
per staff member.)
Inputs
Efficiency
(Cost per item produced, service provided, or
client served cost per result achieved.)
Outputs or Outcomes
Cost
Outputs or Outcomes
(Production or turnaround time timeliness of
results.)
Time
Quality

Effectiveness in meeting the expectations of
customers, other stakeholders and expectation
groups.



78
BUILDING IN ACCOUNTABILITY
APPLYING THE STRATEGIC PLANNING PROCESS
  • EXAMPLES OF INPUT INDICATORS
  • Budget allocation
  • Number of staff members or full-time equivalent
    (FTE) employees
  • Current illiteracy rate in Louisiana
  • Number of clients eligible for program
  • Number of customers requesting service
  • Number of applications received
  • Number of school age children
  • Current level of child immunization against
    communicable disease
  • Current teen pregnancy rate
  • Current visitor rate and advertising/revenue
    ratio at museum
  • Level of motor carrier compliance with weight
    limits

79
BUILDING IN ACCOUNTABILITY
APPLYING THE STRATEGIC PLANNING PROCESS
  • EXAMPLES OF OUTPUT INDICATORS
  • Number of students enrolled in an adult literacy
    program
  • Number of clients/customers served by program
  • Number of applications reviewed
  • Number of vaccinations/inoculations given
  • Number of teens enrolled in pregnancy prevention
    class
  • Number of museum visitors
  • Dollar amount of museum revenues raised
  • Number of motor carrier weight violations cited

80
BUILDING IN ACCOUNTABILITY
APPLYING THE STRATEGIC PLANNING PROCESS
  • EXAMPLES OF OUTCOME INDICATORS
  • Number/percentage of students able to read and
    write after completing an adult literacy program
  • Percentage change in number of applications
    reviewed
  • Percentage change in number of clients/customers
    served
  • Percentage change in number/percentage of school
    age children who are vaccinated/inoculated
    against communicable disease
  • Reduction in incidence of communicable disease
  • Percentage of teens enrolled in pregnancy
    prevention program who become pregnant within 12,
    18, 24 months after program end
  • Percentage change in museum visitor rate and
    revenues raised
  • Change in motor carrier compliance with weight
    limits
  • Percentage completion of database

81
BUILDING IN ACCOUNTABILITY
APPLYING THE STRATEGIC PLANNING PROCESS
  • EXAMPLES OF EFFICIENCY INDICATORS
  • Cost per student in an adult literacy program
  • Cost per application reviewed
  • Average or maximum processing time for
    application review
  • Administrative cost as a percentage of total
    program cost
  • Average cost per client/customer served by
    program
  • Number/percentage of eligible clients receiving
    services
  • Average or maximum waiting time on eligibility
    list
  • Average cost per vaccination/inoculation
  • Cost per teen enrolled in pregnancy prevention
    program
  • Annual cost per visitor to operate museum
  • Revenue return on every advertising dollar spent
    on promoting museum
  • Savings (time, personnel, and/or costs) from
    automation of processes and procedures

82
BUILDING IN ACCOUNTABILITY
APPLYING THE STRATEGIC PLANNING PROCESS
  • EXAMPLES OF QUALITY INDICATORS
  • Number of repeat audit findings
  • Number/percentage of errors during application
    review
  • Compliance with error tolerance levels in program
    guidelines
  • Percentage accuracy of data entry
  • Customer survey satisfaction rate
  • Number of client/customer complaints filed
  • Percentage of client/customer complaints
    substantiated
  • Awards or recognition for service excellence
  • Accreditation of program/facility or licensing of
    staff
  • National or regional ranking

83
BUILDING IN ACCOUNTABILITY
APPLYING THE STRATEGIC PLANNING PROCESS
  • PERFORMANCE INDICATOR LEVELS
  • Some performance indicators will be used only for
    internal management purposes.
  • Some indicators will surface for
    performance-based budgeting decision making.
  • Some indicators will be used for both purposes.

84
BUILDING IN ACCOUNTABILITY
APPLYING THE STRATEGIC PLANNING PROCESS
  • PERFORMANCE INDICATOR LEVELS
  • For performance-based budgeting, present
    performance information at different reporting
    levels in order to surface key data while
    maintaining the availability of support and
    explanatory material.
  • Louisiana uses
  • Key Performance Indicators
  • Supporting Performance Indicators
  • General Performance Information
  • Explanatory Notes

85
BUILDING IN ACCOUNTABILITY
APPLYING THE STRATEGIC PLANNING PROCESS
EXPLANATORY NOTES
How do we know what a performance indicator
actually means?
Explanatory notes help everyone gain a more
complete understanding of
performance indicators. They establish context
and fill in the background.
They identify input variables, program variables,
and external variables and
explain how those variables affect performance.
Explanatory notes provide a link among indicators
that should be used in
tandem.
Explanatory notes justify differences between
performance standards and
actual performance.
BOTTOM LINE When reporting performance, feel
free to footnote.
86
BUILDING IN ACCOUNTABILITY
APPLYING THE STRATEGIC PLANNING PROCESS
  • CRITERIA FOR PERFORMANCE INDICATORS
  • The usefulness of performance indicators is
    dependent upon their validity, accuracy, and
    reliability.
  • Performance indicators should be
  • Valid and meaningful a good fit
  • Accurate, reliable, and verifiable solid
    source, reproducible data
  • Clear and simple understandable by layman
  • Balanced tells a complete performance picture

87
BUILDING IN ACCOUNTABILITY
APPLYING THE STRATEGIC PLANNING PROCESS
  • POINTER When selecting performance indicators
    to measure progress, compare for
  • Validity appropriateness to
    activity/objective being measured
  • Clarity clear and simple terms no jargon
  • Timeliness frequency of reporting and time
    from observations
  • Reliability and consistency proven,
    consistent data and source
  • Calculation methodology standard or
    nonstandard measure
  • Cost to gather and analyze practical
  • Utility internal management or external
    reporting or both

88
APPLYING THE STRATEGIC PLANNING PROCESS
DEVELOPING PERFORMANCE INDICATORS
TO SELECT PERFORMANCE INDICATORS
  • Review objectives. What outcomes are targeted?.
  • Determine what evaluation methods will be used.
  • Decide what information is needed to tell whether
    or not expected changes are occurring.
  • Determine whether actual or proxy indicators will
    be used.
  • Consider what types of indicators will best tell
    the performance story.
  • Consider potential reporting levels (key,
    supporting, or general performance information).
  • Generate an initial list of indicators then
    review and compare alternatives.
  • Select a balanced set of indicators to monitor
    and report performance.

89
APPLYING THE STRATEGIC PLANNING PROCESS
DEVELOPING PERFORMANCE INDICATORS
USEFUL TECHNIQUES
  • Identify objectives that have obvious indicators
    associated with them
  • Review performance information that is collected
    already
  • Ask key decision makers what they most want to
    know
  • Think about what stakeholders most want to know
  • Benchmark
  • Seek expert advice


90
APPLYING THE STRATEGIC PLANNING PROCESS
DEVELOPING PERFORMANCE INDICATORS
  • POINTER When selecting performance indicators
    to build a balanced set of indicators, keep in
    mind how you will evaluate performance. Select
    performance indicators that will support your
    evaluation methodology.
  • Common ways to evaluate performance are
  • Comparison of planned performance with actual
    performance
  • Comparison of before and after data
  • Comparison of population segment(s) served and
    not served by project, service, or grant
  • Controlled, randomized experimentation
  • Feedback from clientele

91
APPLYING THE STRATEGIC PLANNING PROCESS
DEVELOPING PERFORMANCE INDICATORS
POINTER If much of your service delivery is
performed through grant recipients and/or
contractors, keep in mind the requirements of
performance-based contracting. Some agencies
administer significant amounts of pass through
funding. Under Louisianas performance-based
contracting provisions and procedures, contracts
for professional, personal, consulting, or social
services must include specific goals and
objectives, measures of performance, and a plan
for monitoring the services to be provided.
Pass through funds distributed by contract may
fall under these requirements. If so,
information related to service provision and
service beneficiaries should be available. Use
this information to show the results generated by
the administering program through contract
service providers.
92
BUILDING IN ACCOUNTABILITY
APPLYING THE STRATEGIC PLANNING PROCESS
93
APPLYING THE STRATEGIC PLANNING PROCESS
DEVELOPING PERFORMANCE INDICATORS
  • POINTER When selecting a balanced set of
    performance indicators to measure progress toward
    each objective, consider
  • What data you already collect, analyze, and
    report.
  • How you collect, analyze, and report existing
    data.
  • What additional data you need to collect,
    analyze, and report.
  • How (and at what cost) you will collect, analyze,
    and report.
  • How the indicator will be usedinternal
    management and/or performance based budgeting.
  • After selecting a balanced set of performance
    indicators, organize to collect, analyze, and
    report data.

94
APPLYING THE STRATEGIC PLANNING PROCESS
TIPS FOR SELECTING PERFORMANCE INDICATORS
Get consensus among those who establish
expectations (set goals and objectives), those
who bear responsibility for achieving expected
outcomes, and those who evaluate, utilize, or
value performance.
Since it is often necessary to settle for proxy
(or surrogate) indicators, be sure that proxy
indicator is as close to the real thing as
possible.
When both available and proxy indicators are
not sufficient, it may be
necessary to change the way that data are
collected--to establish
new databases to sort or analyze existing
data differently to gather
comparative data from other states or
programs and/or to use
multiple sources.
95
APPLYING THE STRATEGIC PLANNING PROCESS
TIPS FOR SELECTING PERFORMANCE INDICATORS
Some programs gather volumes of data, much of
which is necessary for good program management.
Program managers should select and use as many
performance indicators as they need to ensure
quality service delivery. However, avoid the
trap of reporting too many measures to higher
management levels or for budget decision making.
This can signal a lack of clarity about program
mission, goals, and objectives.
Anticipate the levels at which performance
indicators will be reported. Although all
performance indicators should be useful for
internal management decision making, not all
indicators need to surface for performance-based
budgeting.

96
APPLYING THE STRATEGIC PLANNING PROCESS
TIPS FOR SELECTING PERFORMANCE INDICATORS
Take care that performance measures do not lead
to wrong incentives. For example, if you focus
on the number of cases processed, s
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