Strategic planning and Operational Strategic .

Strategic Planning

Definition of
Strategic Planning

Relevant to our definition of strategic planning, on this page you will find:

  A clear, practical, and simple to understand definition

  Five characteristics of a winning strategy

  A short bibliography

–––~~~••• O •••~~~–––

Definition of Strategic Planning

Strategic planning is about taking a meticulous, honest, and thorough look at both:

  Who you are as an organization – your resources, capabilities, competitive advantage, areas of opportunity, shortcomings, etc.

  And at the environment in which you compete – your customers, suppliers, competitors, market trends, government regulations, foreseeable opportunities and threats, etc.

Once you know who you are and where you stand, then you start to shape the future you want to create for your organization – a realistic future; however, this is not about a limiting future with a plan that simply projects the past – rather, this is about a visionary future.
And once you have created a vision for your organization – once you know where you want to see yourself in say three to five years from now – then you start to create a plan for getting there, deciding where to focus your organization’s resources: Workforce, time, money, etc.
Our definition of strategic planning is: A leadership tool that helps you to …

  Put your company in contact with its environment

  Set a realistic yet bold direction for your organization

  Create the route your organization needs to follow to reach your vision

In one word: Strategic planning is a methodical process for creating a map for the general path your company is to follow, with the intention to increase your organization’s potential.
To put the definition of strategic planning in even fewer words, Michael Porter in “On Competition” (Harvard Business School Publishing, Boston, MA: 2008) says that strategic planning is learning to be different.
Now, does every company needs strategic planning? Some people (successful CEO’s, consultants, authors, etc.) scream out loud a resounding “yes.” See for example Robert S. Kaplan and David P. Norton, “The Strategy-Focused Organization” (Harvard Business School Press, Boston, MA: 2000).
However, some other people (other successful CEO’s, consultants, authors, etc.) scream out loud a resounding “no.” See for example Henry Mintzberg, “The Rise and Fall of Strategic Planning” (Free Press, New York, NY: 1993).
Who are you going to believe?
It’s your call, which depends on several variables: Your own leadership style, the culture of your organization, the market conditions in which you operate, etc.

–––~~~••• O •••~~~–––

Five Characteristics of Winning Strategies

A definition of strategic planning is not enough by itself.
William Joyce, Nitin Nohria and Bruce Roberson in “What Really Works: The 4+2 Formula for Sustained Business Success” (Harper Business, New York, NY: 2003) published their discoveries about the keys to high performance.
Among many conclusions in several areas (execution, culture, organizational design, etc.), specifically about strategy, they found the following five mandates – which we reproduce here because they pinpoint exactly what it takes to build a strategic competitive advantage:
First: “Build a strategy around a clear value proposition for the customer.”
Your value proposition must be a statement of what you actually are – not just something you aspire to become. “Your value proposition must exist in the interface between a company’s ability to deliver a product or service and the perceived needs and desires of a targeted market segment.”
Your value proposition must be “rooted in a deep, certain knowledge of [your] targeted customers and a realistic appraisal of [your] own capabilities.”
Definition of strategic planning? Don’t ever plan, write, or promise anything you won’t be able to execute and deliver flawlessly.
Second: “Develop strategy from the outside in. Base it upon what your customers, partners, and investors have to say – and how they behave.”
The high performing organizations developed their strategies genuinely based on the words and actions of their customers, partners, and investors. “The strategies were, in fact, developed from the outside in.”
Definition of strategic planning? Don’t ever develop your strategy without authentically taking into consideration all your stakeholders’ interests – employees, customers, suppliers, stockholders, community, etc.

Photo courtesy of Jurvetson

Third: “Maintain antennae that allow you to fine-tune your strategy to changes in the marketplace”
“Winners typically monitored not just their immediate customers and competitors but customers and competitors in adjacent businesses.”
Definition of strategic planning? Don’t ever become inwardly focused – no matter how successful your organization turns out to be.
Fourth: “Clearly communicate your strategy within the organization and among customers and other external stakeholders”
Your strategy “must be presented and explained first and foremost to the people who will be bringing it to life – your managers and employees.”
But this is just the beginning of the high performers’ savvy, because also, “… the ability to share their strategies with customers was a hallmark of winning companies. [ … ] Winners are communicators.”
Definition of strategic planning? Don’t keep your strategy just for the elite of your organization: Top executives, directors, general managers, etc.
Fifth: “Keep growing your core business; beware the unfamiliar”
“Winners stay winners because they start building their next growth business before the growth potential of their core business shows signs of disappearing.
Definition of strategic planning? Never become complacent – ever.

The Strategic Planning Process

In today's highly competitive business environment, budget-oriented planning or forecast-based planning methods are insufficient for a large corporation to survive and prosper. The firm must engage in strategic planning that clearly defines objectives and assesses both the internal and external situation to formulate strategy, implement the strategy, evaluate the progress, and make adjustments as necessary to stay on track.

A simplified view of the strategic planning process is shown by the following diagram:

The Strategic Planning Process

Mission &       Objectives

Environmental Scanning

Strategy     Formulation

Strategy  Implementation

Evaluation     & Control

Mission and Objectives

The mission statement describes the company's business vision, including the unchanging values and purpose of the firm and forward-looking visionary goals that guide the pursuit of future opportunities.

Guided by the business vision, the firm's leaders can define measurable financial and strategic objectives. Financial objectives involve measures such as sales targets and earnings growth. Strategic objectives are related to the firm's business position, and may include measures such as market share and reputation.

Environmental Scan

The environmental scan includes the following components:

• Internal analysis of the firm
• Analysis of the firm's industry (task environment)
• External macroenvironment (PEST analysis)

The internal analysis can identify the firm's strengths and weaknesses and the external analysis reveals opportunities and threats. A profile of the strengths, weaknesses, opportunities, and threats is generated by means of a SWOT analysis

An industry analysis can be performed using a framework developed by Michael Porter known as Porter's five forces. This framework evaluates entry barriers, suppliers, customers, substitute products, and industry rivalry.

Strategy Formulation

Given the information from the environmental scan, the firm should match its strengths to the opportunities that it has identified, while addressing its weaknesses and external threats.

To attain superior profitability, the firm seeks to develop a competitive advantage over its rivals. A competitive advantage can be based on cost or differentiation. Michael Porter identified three industry-independent generic strategies from which the firm can choose.

Strategy Implementation

The selected strategy is implemented by means of programs, budgets, and procedures. Implementation involves organization of the firm's resources and motivation of the staff to achieve objectives.

The way in which the strategy is implemented can have a significant impact on whether it will be successful. In a large company, those who implement the strategy likely will be different people from those who formulated it. For this reason, care must be taken to communicate the strategy and the reasoning behind it. Otherwise, the implementation might not succeed if the strategy is misunderstood or if lower-level managers resist its implementation because they do not understand why the particular strategy was selected.

Evaluation & Control

The implementation of the strategy must be monitored and adjustments made as needed.

Evaluation and control consists of the following steps:

1. Define parameters to be measured
2. Define target values for those parameters
3. Perform measurements
4. Compare measured results to the pre-defined standard
5. Make necessary changes

Case Study Of Strategic Planning

A Case Study of TDIndustries

TDIndustries is a full-service mechanical contractor. The firm provides a range of services centered on heating, ventilating, and air conditioning in new construction, remodeling, maintenance, and repair. It employs about 1000 people, mostly in Texas. Over the years, TD has delivered good business results and provided a good place to work for its employees or TDPartners. TD has been among the “100 Best Companies in America” (as listed by Fortune magazine) for many years and it won the Texas Quality Award (Texas' version of the Malcolm Baldridge Award) recently.
In 1997, TD initiated formal strategic planning, using the Simplified Strategic Planning process. In many respects, the results of that strategic planning process validated the basic direction that the firm had been pursuing. However, the process also identified both a meaningful new opportunity and some activities that were not the highest and best use of resources. There were inefficient parallel efforts in multiple divisions, one business unit served customers unlike all other business units, and the firm used enough different trade names that some customers were confused.
TD had developed nine divisions over time that operated with considerable independence. They were defined largely by the people who ran them. Originally, they had distinct capabilities and served different customers. However, over time, they had developed some overlapping capabilities that let several divisions serve the same customers, though under different trade names.
The company decided to make changes in both how it approached the market and how it was organized internally. The firm would, going forward, focus on six distinct sets of customers or market segments. It would change its internal organization to reflect these six market segments by developing a business unit around each one. This change led to merging what had been two independent divisions. Two activities that did not fit with the six market segments were to be sold. Internal groups that served multiple market segments or business units were to be called internal “Valued Added Suppliers.”
As the last step of the strategic planning process, TD’s management team discussed how to communicate the new strategy to ensure that sound planning led to effective implementation. Their discussion led to decisions to do the following:

	Develop a short, written document that summarized the firm’s new course and direction and the process they had used to determine it.
	Develop a complementary presentation (in PowerPoint®)
	Devote substantial management time to “talking the talk” so that all TDPartners as well as suppliers and customers would understand the new strategies.
	Commit to “walking the walk” at the senior management level to maintain focus on the new strategies and to reinforce the message clearly, consistently, and repeatedly.

The first two items - the document and the PowerPoint® presentation - are the results of the first five steps in the featured article. They lead to having communications pieces (concepts and materials) themselves. Then, the latter items - “talking the talk” and “walking the walk” - are the communication and reinforcement of steps six through eight in the featured article.
To ensure that the communication process went as well as possible and that they had anticipated any possible problems, three TD executives developed an Action Plan for communicating the strategies. It called for spending about a month developing the communications pieces, getting them published, rehearsing their presentations, making arrangements for meeting space, and coordinating travel among multiple TD locales so that all TDPartners would receive their first news of changes almost simultaneously.

The principles that led to this document and the clarity of its messages provide useful examples for any organization that is shifting its course and direction and must engage the hearts and minds of its people in support of the new course and direction. Not every firm has the need or the resources to publish a document like this one to get effective communication and alignment, but the basic approach to content and consistency is the same whether the audience can be counted on both hands or numbers in the thousands.
TD's publication presents several distinct messages:
1. Why Now? In this portion, TD addresses why, despite their continuing success, they needed to do strategic planning at all, much less consider making major changes.
2. Our Goal. Here TD’s management presents the firm’s long-term intended future results. It covers growth, share value, profitability, turnover, and employee satisfaction. It was derived from Goals, which is page 6.2 of the Simplified Strategic Planning process.
3. What did we Discover? This section presents the two major causes of directional changes at TD. The company identified a unique way to combine its services for certain types of customers and it concluded that its multiple trade names were confusing its customers.
4. The Power of One. The solution to both the problem and the opportunity were the same: take a company-wide approach to services offered and identity in the market. This solution is signified in the slogan under which TD rolled out its new strategy: The Power of One.
5. A New Focus on the Marketplace. This material presents TD’s six market segments, the type of work TD would perform in each segment and the geographic scope of each.
6. Difficult Decisions Impact Single Family and East Texas Groups. Here is a hard one - the decision to exit certain business areas. This decision affected numerous, long-serving people. The message is that these groups do not fit with TD’s future focus. It also explains that TD intends that both groups end up being owned by entities for which their activities are core business. Should TD ever have to divest in the future, TDPartners can and will look back on whether the people affected by these difficult decisions were victims or were given the opportunity for a better future in someone else’s core business than on TD’s periphery.
7. Strategic Organizational Alignment. This page presents TD’s new organization structure by market segment, geography, internal “valued added suppliers,” leaders of each element, as well as, reporting lines to the three executives leading the whole company.
8. Life Cycle Solutions. In strategic planning, TD identified that its various divisions served many of the same customers at different stages in a building’s life. “Life Cycle Solutions” is the name that TD developed to capture the potential for serving those customers with a consistent approach across many activities. Since the firm’s business units had been operating independently, it had been unaware of many opportunities of this kind.
9. Q&A. Two of the strategic planning group’s decisions stood out as sound, but not obvious to those who did not take part in the analysis and decision-making. The reasoning behind them got particular emphasis in this section of the communication document. TD’s management wanted everyone to know the “why” behind these decisions to encourage acceptance and good implementation.
The PowerPoint® presentation had the same themes and messages presented in a different format. The document and the PowerPoint® presentation, coupled with top management's shared understanding of the decisions they had made and why they made them, equipped the management team to convey their messages.
The communications process touched every TDPartner. The top executives in the company made a presentation to about 50 managers one evening, met with the groups being divested the following day, and then met with every group of employees over the next two days, using all of the major airports in Texas in the process. In addition, TD met with all major customers and many others to explain what was changing, why, and how it would affect them.
These steps completed the first phase: sending out the message. Ongoing reinforcement is a continuing effort and responsibility of all managers in the company.
The early returns are positive. At the time of this writing (March 1999), TD is enjoying record sales, profits, and employee satisfaction. The firm has moved up from fifth to second on Fortune magazine’s list of the 100 best places to work in America. And, the operations that TD decided to divest are in the hands of people for whom those operations are core business.
Great strategy without clear communication to those who have to implement it typically fails. The lesson from TDIndustries’ experience: determine the message and then communicate, communicate, communicate.

At TDIndustries, 1997 has been an outstanding year. Business is excellent, and profits are at record levels. Plus, TDPartner satisfaction and customer satisfaction are high. During this time of success, we are beginning a new journey to the future--and our map is drawn from the results of comprehensive strategic planning. The journey will reflect

Operational Strategic

Definition of Operational Strategic
      

how the use of good resources largest firm regarded as the highest measure of suatibitality Operating strategy associated with the development of long-term planning to determine between existing resources and long-term planning strategy.

     According to Skinner (1996), the operation should be fully associated with the operation business. strategies and decisions must be filled in full the needs of business and should add a competitive advantage for this firm. In all functions of the company must coordinate well to support companies to achieve excellence compete between the functions of the decision made is to facilitate the strategy developed by the team manager operation between the overall business.

Case Study

Companies that use the effective operation of management must have a mission, so he knows the direction and purpose, and an operating strategy is used to find out how to accomplish the mission. One form of alternative operating strategy is to determine the implementation of maintenance that can be done by providing it internally (self-managed) or get it from outside (outsource) known as the make or buy decision (make or buy decision).

Maintenance operations strategy aims to determine the implementation of a more profitable alternative. Determination of an alternative implementation of maintenance can be done with consideration of financial and nonfinancial. Financial considerations made by comparing the cost of each alternative. While non-financial considerations do with considerations of quality, human resources and legal order in force. This paper is a review report to the strategy of maintenance operations Lombok International Airport. The results of this study is expected to provide an overview of the strategy runway maintenance operations more profitable.

The scope of review in this report include the following: reviewing maintenance operations strategy with non-financial considerations, followed by maintenance operations strategy review by financial considerations. The method used in the financial consideration is the break even point analysis.

Runway maintenance activities by non-financial considerations that should be done with alternative self-management is the foundation inspection, boundary fence repair, cleaning out garbage, sweeping the runway, obstacle object inspection, and repair runway while should done with the alternative of outsourcing is an activity overlay of the runway. Runway maintenance activities with financial considerations that should be done with self-management alternative is, painting runway markings while the drainage canal treatment, cleaning and cutting rubber deposite grass runway strip should be done with the outsourcing alternative.

SUPERVISOR OF EMPLOYEE MOTIVATION LAZING

Supervisor is a Leader

Supervisors must know that without the quality of the competence of staff in accordance with the character of the work will be difficult to achieve an excellence in producing best quality of work output. Basically, the role of supervisor should not be limited as a coordinator or head unit only. Supervisors should be more willing to make himself as a professional coach to all the staff who helped in the work unit. As a coach or coaches, supervisors should be a role model and a reliable guide for all staff in completing all the work process in accordance with the specifications of the expected quality in the shortest - in short. The subordinates will trust their superiors if they have positive interactive communication directly during the working process takes place. Therefore, the supervisor as a leader as well as the coach should always be on the side of his underlings to help each of their difficulties, as well as being an effective motivator and productive in directing all staff ketujuan to be achieved.
During the working process takes place, the supervisor must proactively supervise, provide direction, and guidance based on the power of positive language of communication, effective, efficient, and productive. Supervisor as a professional coach should be able to provide strategies work best for his work unit size, and avoid all behavior that does not work effectively in an effort to prevent any negative impact on morale and work motivation. As a good coach, supervisors should ensure that all staff are not confused with the duties and responsibilities, and they all understand and know clearly the roles and functions to be meraka run at the work unit. Supervisor as coach should provide clear information, and determines all the important information to be used by its staff during the working process takes place. As a coach, he must teach each of his staff to always perform a full concentration in a clear direction and focus. Everything was done through training and continuous learning in the language of communication is simple, clear, and repetitive. And every new work objective should always begin by teaching all the strategies that fit with the character of the work. Supervisors should always behave proactively against all possible risks that arise on a strategic decision in the process of completing the work. And as a professional coach, the supervisor should be able to train all staff in mental effort to reduce anxiety and increase commitment to work together in units to work effectively, efficiently, creatively, productively, and the synergy between them all.
A good coach must have high integrity against the interests of its businesses. To be able to have integrity, supervisors should lead, coordinate, and train all staff with a high degree of transparency, and consistent with all the positive behavior. Supervisors should always have a definite confidence and clear of all work processes in accordance with the strategy in the right direction and target goals.
A professional supervisor will always respect and appreciate all the hard work of its staff. With respect and honor the hard work of staff, supervisors will get a positive feedback in the form of full credibility for the trust given to him by the staff. Reciprocal relationship like this is a positive communication within the work unit to make more effective, productive, creative, and efficient.
Supervisor as a coach must be able to train all the potential and power that lies within its staff appropriately and properly. Exercising should involve all staff, both individually and in groups working unit. Before conducting the training, it's good to listen to opinions of their supervisors - each individually, asking some questions that are relevant to the task, understand clearly and correctly about what is important to be trained or supervised, ensuring all staff are in high spirit to receive training and guidance , ensure that all staff would conduct a joint evaluation of training and guidance they receive, and ensure all staff are concentrated and focused to receive all training materials and guidance are sincere, sincere, in full and complete confidence.
Supervisors must always ensure that all staff did not work out of necessity. But they all work full-time and intact because they are guided by the spirit, motivation, and a high desire to produce the best work output. To keep all of this, supervisors should always be a coach and as well as a wise leader to be able to maintain, nurture, and train all staff to always have a high level of confidence, no doubt to the ability of yourself, always grew up with the best quality, optimism and positive towards a brilliant future.
Supervisor is the coach for all his staff is a paradigm that should serve as a positive work ethic in empowering your work unit. Supervisors as the best leaders today is a coach who can guide and train all the needs of their subordinates so that they can work optimally. It's not a day longer and the supervisor just told this to his staff without teaching strategies work best in a unit of work. Demands of organizations today and tomorrow requires a supervisor to become proactive leaders working unit against any movement of work organization. Say goodbye to model passive supervisors who govern from behind the office desk. Say welcome to a proactive model of supervisors in the pattern of work in synergy.
Program 8 Hours (One Day)
The Highly Effective Supervisory Skill
How to Become a Supervisor Andal Shining in the Workplace
Training Description The Highly Effective Supervisory Skill.
The role of supervisors working at the middle level, between employers and policy makers among its executive staff in the field routines. With a work function that lies between it, the main task of the supervisor is to supervise the conduct of the staff of routine activities of daily business. Supervisor is a leadership level that should not be making policy that is strategic, but only to translate and forward the strategic policy of his superiors to the subordinates to work effectively and productively. Therefore, a supervisor must have a high-quality competence includes the skills to build relationships between superiors and subordinates; skills to function and role of work in order to be able to work optimally, creative, effective, quality, productive, efficient, synergistic, and intelligent supervision to subordinate; skills of emotional intelligence and positive mind set.
There are so many tasks and responsibilities that must be done, but time and ignorance has always been a major obstacle in the process of completing all work on time and on target. It is common knowledge that most supervisors feel pressured into a routine of daily work activities, which makes them less able to think creatively and strategically to the function and role of work.
Important role as a supervisor is a unit coordinator. To be an effective coordinator, supervisors must understand the character of the work and character of the resources it manages. Perceptions are objective by considering all the risks, opportunities, and potential advantages of all managed resources will encourage enthusiastic supervisor to always improve attitudes and behaviors in an attempt to create a way - the way work is effective in producing the best performance. Each supervisor must always be aware that if he wanted to achieve a reliable supervisor at work, then he should be able to change perceptions and their quality becomes more effective with positive thoughts and actions. And to transform itself effectively, he must know what he was doing, who is helping him work, and what tools - the most effective tools he needed to complete the tasks and responsibilities of the job perfectly. Each work must be done through a series of work processes effectively and right on target. Working supervisor role should not just be a spare tire superiors, supervisors remain a leader even though his authority is very limited. Reliably supervisor behaviors and attitudes will never throw responsibility to the employer, but will build an effective team working unit to be skilled to solve problems and make the greatest solution.
This one-day training supervisors improve personal effectiveness in generating a positive reaction to the company, and give positive energy to the leadership, to manage work units with an effective range of positive strategies for success in any subordinate reap optimum performance; there are no shortcuts in achieving the best performance . All the best results happen through hard work and long learning process, accompanied by relentless determination and motivation.
Basic Concepts.
Broadly speaking, the training of The Highly Effective Supervisory Skill departs from a basic concept that an effective supervisor must have the habit - the habit of positive to focus on the basic foundation that supports a coordination skill in moving the advantages of effective human resources. Therefore we need an objective perception to be able to manage its businesses in order to continue maintaining the vision and mission are aligned with the main purpose of the organization. The success of effective supervision can be achieved because of the synergy between the interactive communication with staff supervisors, between supervisors with a higher supervisor, with the belief that all supervision of the concentrate to a positive perception of the objective in a dream - common cause will reap the best performance.
if there is a lazy staff, the supervisor must be firmly against such staff. provide understanding, and talk to him, so that staff can tell because he was like that.

Case Study in Depths in an Organization

Case Study in Depths in an Organization

In one of the hotels in Makassar, there are 600 pax meeting event, the day is family style meal service. So all the food served one by one in order of meals, from appetizer to dessert. At the time of serving main course, there are many types of food, one of which is fried rice, a guest at table number 21 guests are vegetarian (can not eat any meat), fried rice at the time of course it came out, the woman at the table asked one waiter about the fried rice. "Whether the food is vegetarian or not", but the waiter replied that the food is vegetarian, because the guest direct trust, direct the guest to eat fried rice, which turned out that there are shrimp fried rice and beef cornet, the guest should not be allowed to eat, after eating the fried rice, the women's room, hives, and his body began to redden. He also asked the waitress about the food served to him, because the guest is already beginning to suspect, if the food is not for the vegetarian, the waiter was to ensure the truth, he asked the chef about the food. It was true in the food (fried rice) contained prawns and minced meat, the guests finally complain, he asked for the responsibility of the hotel, because guests are VIPs (VIP), then the waiter is feeling guilty. Yet guests still do not want to budge it. Guests were also told the waiter had been calling for the Banquet captain was given a warning. But the visitors were still angry, though, the food has been replaced. The visitor insisted that he would report the incident to the police station, and bring it up to the newspaper. Because the captain is not able to handle the guest, he called the MOD (Manager On Duty) on that day. MOD had come and apologize and give an explanation, but it remains stubbornly guests.

The next day guests were talking with the MOD and the human resources department about what happened that night. The hotel apologized profusely to the guest. But the visitor persisted. Customers that want a cost recovery treatment of allergies he suffered since that night, borne by the hotel. Finally, the hotel agreed. And guests went away and agreed to the deal.

The next day, news events that go on Morning Breefing, and GM (General Manager) at the hotel was very sorry the incident, and hoped such events do not recur again. GM also gave sanction to the waiter who was careless SP (Warning Letter) 2.

CASE STUDY of the above can be distinguished Depths of Management in An Organization.

Namely:

1. Top Management

for example GM (General Manager) is the person responsible for    everything (whole) which occurred at a hotel.

2. Middle Management eg MOD (Manager On Duty) which is responsible for    everything (the circumstances) on a certain day, or could say daily headache in a hotel, after GM. And HRD is the department or person who takes care of everything on the matter or personal keluahan employee, or whatever it is, which is practically as well as guidance counseling.

3. First Line Management Banquet Captain is someone responsible for everything that was in that position under the banquet manager and above the operational staff.

4.  for example Operational Employees waitress staff or regular employees who perform regular operational work.