PRACTICAL SUGGESTIONS FOR STRATEGIC AND OPERATIONAL PLANNING

Dr. B. J. Tatro Why do plannin !

A plan tells us. . . Where we are going Why we are going there How to get there How to know when we have arrived What i" "trat# i$ plannin and ho% i" thi" di&&#r#nt &ro' op#rational plannin ! Strategic Plan - A strategic plan is a practical, action-oriented guide. It is based on an analysis of internal and e ternal factors. It directs operational planning and resource allocation. It is issue-oriented and usually spans !ultiple years. A strategic plan"

organi#ation is consistent with the !ission, will lead to the vision, and will address the key strategic directions *e+uires that the organi#ation be realistic about the scope of work to be undertaken by linking planned actions to available resources. Provides for ongoing assess!ent of progress and identification of barriers so they can be addressed in a ti!ely !anner. Provides a basis for accountability. Strategic Plan ,o!ponents

-he !a.or co!ponents of a strategic plan are" Mission - -he !ission state!ent answers the +uestion /Why does our organi#ation e ist0/ It identifies who the organi#ation e ists to serve, what it does, and why. -he !ission serves as a guide for the rest of the plan. Vision - -he vision state!ent answers the +uestion /What is our ideal future0/ It is a state!ent of the shared and ideali#ed view of the future state, given that the organi#ation carries out its !ission. -he vision also serves as a guide for the rest of the plan. Guiding Principles - 1uiding principles answer the +uestion /What beliefs that we hold direct our actions0/ -hese are nor!ative state!ents. -hey !ay relate to beliefs about people in general, persons served, e!ployees, the !ethods by which services are delivered, or general philosophy. -hese !ay be linked to action &for e a!ple, we believe that every fa!ily is uni+ue, therefore we are co!!itted to individuali#ed planning and service delivery'. Analysis - -he analysis answers the +uestions, / What can !ove us forward0/ and /What is likely to deter us0/ -he analysis includes an assess!ent of both internal and e ternal factors. Internally, it is i!portant to e a!ine strengths and prior acco!plish!ents that can provide the foundation for future success. It is also i!portant to e a!ine organi#ational weaknesses, barriers, gaps, and any other factors that !ight present obstacles to i!ple!entation

Provides a co!!on direction for everyone in the organi#ation and helps to ensure that actions taken are !issiondriven and consistent with the organi#ation$s core beliefs and values. Assists the organi#ation to build on strengths and address barriers that !ight i!pede progress. Provides an opportunity to identify alternative courses of action and choose the best course of action fro! a!ong the!

%perational Plan - An operational plan specifies what needs to be acco!plished within a given ti!e period to !ove in the key directions specified in the strategic plan. It identifies in greater detail what can be done within the ti!e period &usually one year or less'. It guides the activities of everyone in the organi#ation( that is, everyone should be able to see how their efforts are leading to successful acco!plish!ent of the plan. An operational plan"

)inks strategic plans to daily operations so that the day-to-day work of the

of the plan. 2 ternally, it is i!portant to e a!ine opportunities that can be sei#ed and potential challenges. -hese !ight include econo!ic, political, social, and technological conditions, co!petition, attitudes, and the like. Key Directions - 3ey directions answer the +uestion /Where do we want to go in the ne t three to five years0/ -hey address the !a.or issues identified in the analysis process. -hey provide guidelines for action and for! the basis for the selection of !a.or actions for the co!ing year. So!e !ay be progra!!atic &for e a!ple, to e pand proga!s to a new area or new target audience'( others !ay relate to ad!inistration or progra! support &for e a!ple, to increase funding resources'. Strategies - Strategies answer the +uestion /How will we get there0/ -hey specify what the organi#ation can do to !ove in each of its key directions within the three to five year ti!e period. -hey are not as specific as an annual ob.ective !ight be. &4or e a!ple, for the key direction /to increase funding resources,/ strategies !ight include identifying and writing grants to support progra! develop!ent and i!ple!entation, !onitoring opportunities for govern!ent funding and sub!itting proposals, and seeking corporate support.' Key Indicators - 3ey indicators answer the +uestion /How can we track our progress along the way0/ So!eti!es these are called /perfor!ance !easures./ -hey !ay define inputs &for e a!ple, nu!ber of staff', outputs &for e a!ple, nu!ber of services provided', outco!es &for e a!ple, nu!ber of persons who successfully achieved their goals', +uality &for e a!ple, nu!ber of people who were satisfied with the progra!', or efficiency &for e a!ple, cost per service'. What i" a ood r#&#r#n$# &or "trat# i$ plannin ! -wo good references are"

5ryson, 6. 7. &899:'. Strategic planning for public and nonprofit organizations. San 4rancisco" 6ossey-5ass. 5ryson, 6. 7., ; Alston, 4. 3. &899<'. Creating and implementing your strategic plan. San 4rancisco" 6ossey-5ass. What ar# th# $o'pon#nt" o& an op#rational plan! -he *ape Prevention 2ducation Progra! has identified the following co!ponents of an operational plan" Outcomes - %utco!es are the !ost i!portant results that the organi#ation plans to achieve during the year. -he outco!es should be under the control of the organi#ation and be realistic. -hey should focus on the /big picture./ Purpose - -he purpose state!ent specifies why the organi#ation plans to do the proposed work during the year. -his state!ent helps to e plain the intent behind the desired outco!es and why it is i!portant to achieve these outco!es. Products - Products are the tangible results that will be in hand at the end of the year if the plan is successfully carried out &for e a!ple, a policies and procedures !anual, or training curriculu!'. Major Actions - 7a.or actions describe what the organi#ation will do to achieve the desired outco!es for the year. 7a.or actions are derived fro! the key directions and strategies included in the strategic plan. -hey are state!ents that describe in !easurable ter!s what will be acco!plished during the year. Action Plans - Action plans are developed for each !a.or action. -he plans lay out in detail e actly what steps are to be taken with respect to the !a.or action. 4or each action step, it is i!portant to identify who is responsible. If there is !ore than one responsible person, a lead person should be identified. 4or each action step, the start and target co!pletion dates should

be identified, keeping in !ind that so!e steps cannot start until others are co!pleted. What $an %# do to 'a(# o)r plan )"#&)l &or pro ra' 'ana #'#nt! It is critical to develop a process for tracking progress toward the plan. Ideally, progress on the action plans is tracked at least !onthly. An easy way to do this is to include a colu!n on the action plan for status of each action step, then fill that in at each tracking session. =uring the tracking process, identify whether the step has been co!pleted, is in progress, is delayed, or if there is a barrier. If there is a delay or barrier, it is i!portant to identify and e ecute a plan to get the action back on track. 2arly identification of proble!s and early intervention are the best ways to ensure that the plan keeps !oving ahead. It is also i!portant to highlight successes and celebrate the!, too.

-he strategic plan proposed by the %ntario Hospital Association is directed towards achieving positive changes in the health care syste! for the purpose of enhancing consu!er$s health care e perience. -he association e ists to deliver high +uality products and services, advance and influence health syste! policy in %ntario and cha!pion innovation and perfor!ance i!prove!ent. )ikewise, ob.ectives and goals such as reali#ing +uality and efficiency, advancing an integrated health syste!, opti!i#ing health hu!an resources and leading govern!ent e cellence were propose to direct reali#ation of the organi#ation$s vision and !ission. -hey had launched key directions that distinguish where do they want to go in the ne t three years. )ikewise established strategies that will specify what the organi#ation will do to !ove in each of its key directions within the three ti!e period. -hey also identified strategic indicators to track the progress of their plans. 7oreover, the strategic plan was weaved to satisfy the following +ualities such as accountability, !anageability, prioriti#ation, r#ali"ti$* "p#$i&i$ity and sustainability. A$$o)nta+ility , th#y id#nti&y and a$$#pt th#ir r#"pon"i+ility &or th# ")$$#""&)l $o'pl#tion o& th#ir initiati-#" to th#ir '#'+#r"* th#ir partn#r" and th# p)+li$. Li(#%i"#* it i" r#ali"ti$ and 'ana #a+l# a" th#y had "#t (#y dir#$tion and "trat# i#" to $o'ply %ith th# o+.#$ti-#". Th# a"p#$t o& prioriti/ation %a" al"o pr#"#nt* a" th#y #"ta+li"h #nhan$in 0)ality o& pati#nt" $ar# a" th#ir hi h#"t priority. It also e!bodies the aspect of "p#$i&i$ity a" it $l#arly d#&in#d th# #1p#$t#d r#")lt" and 'il#"ton#" in th# (#y indi$ator" and tar #t". La"tly* it i" ")"taina+l# a" i" "p#$i&i#" a 2 y#ar p#riod to $o'pl#t# initiati-#". Analysis - -he analysis answers the +uestions, >What can !ove us forward0/ Key Directions - 3ey directions answer the +uestion /Where do we want to go in the ne t three to five years0/ Strategies Strategies answer the +uestion /How will we get there0/ -hey specify what the organi#ation can do to !ove in each of its key directions within the three to five year ti!e period. Key Indicators - 3ey indicators answer the +uestion /How can we track our progress along the way0/
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Accountabilityresponsibility is assigned for successful completion of initiatives. Balancethe plans guide not only financial decision-making, but also operational and human resources issues.

Flexibilitya mechanism for changing and updating the plan is built into the process.

Manageabilityin-process measures are identified to ensure processes are working as intended, critical performance issues are addressed, resources required are projected, and methods of status reporting are in place.

Prioritizationpriorities are established whenever there are multiple interdependent action plans.

Realismthe question of what the organization can do versus what it would like to do is addressed rationally, though the tone is optimistic.

Specificityexpected results and milestones are clearly defined, along with the specific actions for implementation and the deliverables for each step.

Sustainabilitya sufficient time period is covered to close performance gaps.

-he !a.or co!ponents of a strategic plan are" Mission - -he !ission state!ent answers the +uestion /Why does our organi#ation e ist0/ It identifies who the organi#ation e ists to serve, what it does, and why. -he !ission serves as a guide for the rest of the plan. Vision - -he vision state!ent answers the +uestion /What is our ideal future0/ It is a state!ent of the shared and ideali#ed view of the future state, given that the organi#ation carries out its !ission. -he vision also serves as a guide for the rest of the plan. Guiding Principles - 1uiding principles answer the +uestion /What beliefs that we hold direct our actions0/ -hese are nor!ative state!ents. -hey !ay relate to beliefs about people in general, persons served, e!ployees, the !ethods by which services are delivered, or general philosophy. -hese !ay be linked to action &for e a!ple, we believe that every fa!ily is uni+ue, therefore we are co!!itted to individuali#ed planning and service delivery'. Analysis - -he analysis answers the +uestions, / What can !ove us forward0/ and /What is likely to deter us0/ -he analysis includes an assess!ent of both internal and e ternal factors. Internally, it is i!portant to e a!ine strengths and prior acco!plish!ents that can provide the foundation for future success. It is also i!portant to e a!ine organi#ational weaknesses, barriers, gaps, and any other factors that !ight present obstacles to i!ple!entation of the plan. 2 ternally, it is i!portant to e a!ine opportunities that can be sei#ed and potential challenges. -hese !ight include econo!ic, political, social, and technological conditions, co!petition, attitudes, and the like. Key Directions - 3ey directions answer the +uestion /Where do we want to go in the ne t three to five years0/ -hey address the !a.or issues identified in the analysis process. -hey provide guidelines for action and for! the basis for the selection of !a.or actions for the co!ing year. So!e !ay be progra!!atic &for e a!ple, to e pand proga!s to a new area or new target audience'( others !ay relate to ad!inistration or progra! support &for e a!ple, to increase funding resources'. Strategies - Strategies answer the +uestion /How will we get there0/ -hey specify what the organi#ation can do to !ove in each of its key directions within the three to five year ti!e period. -hey are not as specific as an annual ob.ective !ight be. &4or e a!ple, for the key direction /to increase funding resources,/ strategies !ight include identifying and writing grants to support progra! develop!ent and i!ple!entation, !onitoring opportunities for govern!ent funding and sub!itting proposals, and seeking corporate support.' Key Indicators - 3ey indicators answer the +uestion /How can we track our progress along the way0/ So!eti!es these are called /perfor!ance !easures./ -hey !ay define inputs &for e a!ple, nu!ber of staff', outputs &for e a!ple, nu!ber of services provided', outco!es &for e a!ple, nu!ber of persons who successfully achieved their goals', +uality &for e a!ple, nu!ber of people who were satisfied with the progra!', or efficiency &for e a!ple, cost per service'.

,haracteristics of an 2ffective %perations Plan -here are really three key characteristics in a good operations plan. ?ou should start with a structure that !irrors your co!pany$s strategic plan. -he goals and ob.ectives of your operations plan !ust support the strategic plan of your co!pany. ?our operations plan should have a for!at that provides for periodic reports on progress toward your goals and specific ob.ectives and it should prioriti#e what is !ost i!portant. -he for!at, along with the type of !easure!ent, should be understandable to anyone in the organi#ation that sees the scorecard. 3eep it si!ple but !eaningful. -oo !uch is too !uch. ?our operations plan and resulting scorecard should have an appropriate level of detail. ?ou want enough detail to guide the activities but not so !uch as to be overwhel!ing and confusing. Outcomes - %utco!es are the !ost i!portant results that the organi#ation plans to achieve during the year. -he outco!es should be under the control of the organi#ation and be realistic. -hey should focus on the /big picture./ Purpose - -he purpose state!ent specifies why the organi#ation plans to do the proposed work during the year. -his state!ent helps to e plain the intent behind the desired outco!es and why it is i!portant to achieve these outco!es. Products - Products are the tangible results that will be in hand at the end of the year if the plan is successfully carried out &for e a!ple, a policies and procedures !anual or training curriculu!'. Major Actions - 7a.or actions describe what the organi#ation will do to achieve the desired outco!es for the year. 7a.or actions are derived fro! the key directions and strategies included in the strategic plan. -hey are state!ents that describe in !easurable ter!s what will be acco!plished during the year. Action Plans - Action plans are developed for each !a.or action. -he plans lay out in detail e actly what steps are to be taken with respect to the !a.or action. 4or each action step, it is i!portant to identify who is responsible. If there is !ore than one responsible person, a lead person should be identified. 4or each action step, the start and target co!pletion dates should be identified, keeping in !ind that so!e steps cannot start until others are co!pleted.

%perational Planning An operational planning process starts fro! a point of a specific ob.ective, for e a!ple to increase the nu!ber of clients served through a pri!ary care clinic at a ,o!!unity Health ,entre, and focuses on the range of opportunities within that delivery fra!ework. %perational planning will include" @ State!ent of purposeAdeliverablesAtarget to be achievedAsuccess indicators @ Bse of available and relevant data and infor!ation @ Stakeholder engage!ent &who needs to fund, deliver e panded services' @ Selection of priority action approach &new progra! design' @ developing an i!ple!entation ti!etable and budget %perational planning processes !ay be supported by activities or tools si!ilar to those for strategic planning but with a tighter +uestion applied to these activities. Included in operational planning could be use of an activity hierarchy !odel and a progra! logic !odel.

2valuation goals C process or outco!e, +uantitative or +ualitative C !ust be considered at the front end of any new initiative.

Operational plans should contain: clear objectives activities to be delivered quality standards desired outcomes staffing and resource requirements implementation timetables a process for monitoring progress.