Chapter-14- Strategic Planning And Plans

COMPETENCIES
 After completion of this chapter, the learner will be able to:
1. Understand the concept of strategy and strategic planning
2. Describe various types of strategies
3. Discuss the way strategies are developed
4. Enumerate steps of strategic planning
5. Describe guiding principles of strategic planning
6. Differentiate between strategic and operational plan
7. Identify requirements of a good strategic plan
8. Define the strategic framework
9. Prepare standard format for a strategic plan
10.Define operational plan
11.Formulate operational plans
12.Evaluate operational plans
13. Discuss features of an effective annual operating plan
INTRODUCTION
Each organization is involved in decision-making to meet long term as well as
short-term goals. In the context of planning these decisions generate strategic and
operational plans. The stat plans are in the form of long-term objectives and
strategies and operational plans are formulated in order to put strategies into
operations as mentioned earlier. These plans are in the form of standing plans like
policy, procedure, methods, rules and single use plans like projects, standards etc.
Single use plans are undertaken on regular basis in order to put strategic plans in
operation. Strategic planning is an organizational process d defining its strategy, or
directions, and making decisions on allocating its resources to pursue that strategy,
including its capital and people.

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STRATEGY
Meaning and Definitions
In the dictionary, the word strategy has to do with war and deception of an enemy.
It is coined in English in 1825, is of military origin. This term has been derived
from Greek word 'strategikos' means of or for general, from 'strategos' means
leader or commander of an army, general, a compound of 'stratos", "army host
'agos' means leader chief, in turn from 'ago', to lead. Thus the word strategy means
the art of general • Strategy has its use in Military Science and later used in mana
gement in terms of Military Sciences to mean what a manager does to offset actual
or potential actions of competitors. • According to Oxford Dictionary, Military
strategy is the art of so moving or disposing the instruments of warfare (troops,
ships, aircrafts, missiles, etc.) as to impose upon the enemy the place, time and
conditions for fighting by oneself. Strategy ends, or yields to tactics when actual
contact with enemy is made. In management, while used has slightly different
meaning Strategy is an approach to meet a particular aim or set of aims, taking into
account internal and external factors. It indicates a broad, high-level approach and
usually covers a period of 3-5 years Strategy has to do with responding to a
dynamic and often hostile environment in pursuit of a mission

Chandler in 1962 defined strategy as 'strategy is the Chemination of the basic long-
term goals and objectives he an enterprise and the adoption of course of action and
allocation of resources necessary for carrying out these goals Andrews, one of
Professor in Howard Business School defined strategy as Strategy is the pattern of
objectives purpose or goals and major policies and plans for achieving these goals,
stated in such a way, so as to define what business the company is in or is to be and
the kind of company it is of is to be."
Strategies are simply a set of actions that enable an organi zation to achieve results.
(MAP for Nonprofits, St. Paul, MN) Strategy is a way of comparing your
organization's strengths with the changing environment in order to get an idea of
how best to complete or serve client needs. (Jim Fisk & Robert Barron, The
Official MBA Handbook)
Types of Strategies

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Essentially, there are three different categories of strategies: organizational,
programmatic, and functional.

1. Organizational strategy outlines the planned avenue for organizational

development

2. Programmatic strategy addresses how to develop, manage and deliver programs

Strategic Planning and Plans
3. Functional strategies articulate how to manage administration and support needs
that impact the organization's efficiency and effectiveness
How to Develop Strategies?
Strategy formulation is a combination of rational, scientific examinations and
educated, intuitive best guesses. Following model/methods are followed to
formulate the strategies:
1 Four-step mode: Usually the following steps are undertaken to formulate the
strategies:
UNIT: 2

1. Examine the organization's critical issues that should align with the mission and
vision
2. Determine how the organization's strengths and skills can be employed to
address the critical issues
3. Analyze opportunities and strengths and looking for ways to synthesize the two
4. Explore and choose the best approaches for the organiza- tion that should be
financially viable.
II. Another effective method of strategy generation is:
1. List down critical issues and organizational strengths onto flipcharts

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2. Have staff or board members brainstorm possible uses of those strengths or
other skills to address the critical issues.
3. Use a roundtable discussion to investigate and evaluate the possible strategies.
Up this stage formulation of strategy is complete. However, implementation is
closely related with formulation as it will provide feedback for reviewing the
strategy. Figure 14.1 depicts the formulation and implementation process for
strategy and factors affecting for the formulation of strategy are design of suitable
organization structure, developing and motivating staff to take up work, allocation
of resources, effective control system are necessary for implementation.
What is Strategic Planning?

UNIT: 2

. Strategic planning is an essential element of effective management of

organizations. Strategic planning is a management tool, period. As with any
management tool, it is used for one purpose only: to help an organization do a
better job - to focus its energy, to ensure that members of the organization are
working toward the same goals, to assess and adjust the organization's direction in
response to a changing environment. Strategic planning is based on decision
making because in order to answer the questions raised in the structured planning
process, choices must be made. The plan ultimately is no more, and no less, than a
set of decisions about what to do, how to do it and why to do it. Strategic planning
is a disciplined effort to produce fundamental decisions and actions that shape and
guide what an organization is, what it does, and why it does it, with a focus on the
future. (Adapted from Bryson's Strategic Planning in Public and Nonprofit
Organizations)The process is strategic because it meets a particular aim or set of
aims, taking into account internal and external factors. The process is a planning as
it involves intentionally setting goals (choosing a desired future) and developing an
approach to achieving those goals.
Strategic planning is a systematic approach to decision making. Nurse
administrators who rely on formal planning and measurement of outcomes are
more likely to assure consistent high performance from their departments than
those who rely on intuition. Planning can serve as who res personnel if it. Not only

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does strategic planning advance nursing practice itut also scarce resources can be
conserved. (Fox & Fox) In nursing it means that there is a cooperative effort
between in nung services and overall organizational services to promote the
professional nursing practice. Motivation for

boncepts of Strategic Planning

Strategic Planning has three Concepts of Planning Organizations need a planning

architecture; planning is an intellectual process; planning is a social process:
Organizations Need a Planning Architecture A planning architecture is an
overview of how different planning processes fit together (Fig. 14.2). It identifies:

Different types of plan

1. The time horizon of each
2. When they have to be completed?
3. Time allowed for preparing the plan The frequency of updating
4. Who is responsible?
5. How the different plans fit together?

Planning is an Intellectual Process

Since one has to go through various steps to develop plan; the data needs to
gather to assess the strategic position; issues are being generated; proposals
are made, choices are kept in mind; budget is prepared to implement the
plan. During implementation, monitoring is done. For all these activities to
be carried one requires thinking process (Fig. 14.3).

Planning is a Social Process

Since planning is not done in isolation, it needs to be done with consultation.

All the employees of the organization are to be informed about the planning.
There is a need for coordination among all (Fig. 14.4).

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 Purposes of Strategic Planning

To increase the allocation of scarce resources including time and money in

nursing

• To manage the department for performance

To acquire and develop new nursing practices
To foster better goals, better nursing values and better communication
• To bring changes in operations, management, and organization.
Steps of Strategic Planning

Following are the fundamental five steps that must be taken in the strategic
planning process: getting ready, articulating mission and vision; assessing
the situation; developing strategies, goals, and objectives; and completing
the written plan

Getting Ready

To begin strategic planning, the organizations should be ready with the

following tasks to develop a work plan: Identification of specific issues or
choices that the planning

Process should address Clarify roles (who does what in the process)
Create a Planning Committee Develop an organizational profile
Identify the information that must be collected that can help to make sound
decisions.
Articulating Mission and Vision

Introduce with the organizational mission and vision. An organization's ability to

articulate its mission indicates its focus and purposefulness. The mission statement
summarizes the what, how, and why of an organization's work, a vision statement
presents an image of what success will look like. It will help to create a shared,
coherent idea of what it is strategically planning for and also to develop a draft
mission statement and a draft vision statement.
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Assessing the Situation

The situation assessment outlines the process of gathering and analyzing the
information required to make an explicit evaluation of an organization. The
situation assessment includes the following activities:

1. Collecting internal and external stakeholders' perceptions about the

organization
2. Evaluating programs' impact on clients
3. Evaluating programs through cost/benefit analysis
4. Analyzing programs through competitive analysis
5. Defining previous implied strategies.
6. Collecting internal and external stakeholders' perceptions about the
organization: SWOT Analysis is used to collect internal and external
stakeholder' perception about organization.

SWOT analysis is a methodology of examining potential strategies. It is a simple

and effective vehicle for collecting this Information; helps focus the process by
breaking it down into four broad categories:

1. So what are the organization's Internal Strengths? W-What are the

organization's internal Weaknesses?
2. What extremal Opportunities might move the organization forward?
3. What external Threats might hold the organization back?
UNIT: 2

Evaluating Programs Impact on Clients

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The MacMillan Matrix, a strategy grid, developed by Dr. lan MacMillan, is
specifically designed to assist organizations to formulate organizational strategies.
MacMillan's matrix examines four program dimensions that guide placement on
the strategy grid

1. Alignment with Mission Statement

2. Competitive Position
3. Program Attractiveness
4. Alternative Coverage
The MacMillan Matrix provides ten cells in which to place programs that have
been reviewed in terms of these four dimensions. Each cell is assigned a strategy
that directs the future of the program(s) listed in the cell (e.g., aggressive
competition, joint venture, orderly divestment, etc.). After each program is
assessed in relation to the above four criteria, each is placed in the MacMillan
matrix, as follows (Table 14.1).
Qualitative and quantitative data is obtained to evaluate the program. In addition to
examining the resources required to operate a program, an organization can also
more generally assess the program's impact on clients, using the following
considerations:
1. Inputs - the resources that are required to operate the program
2. Throughputs how the program is operated
3. Outputs the immediate, observable results of the program Outcomes - how
the program affects the client's life or society
4. Impact - the program's benefit to the client or society
5. Evaluating programs through cost/benefit analysis: Another approach to
evaluate organization programs is a cost/benefit analysis. Thus a strategic
planner will have a database of quality information that can be used to make
decisions.
Analyzing programs through competitive analysis by using

McMillan matrix.

1. Defining previous implied strategies

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 2. Developing Strategies, Goals, and Objectives

This step outlines the organization's strategic directions: the general strategies,
long-range goals, and specific objectives of its response to critical issues that are
identified after assessment of situations in the light of organizational mission and
vision.

Completing the Written Plan

After the mission has been articulated, the critical issues identified, and the
goals and strategies agreed upon, a written strategic plan is developed.
Usually one member of the Planning Committee, the executive director, or
even a planning consultant will draft a final planning document and submit it
for review to all key decision makers (usually the board and senior staff).
Strategic plan can also be translated into operational plans.

In short, strategic planning clearly defines objectives, assess both internal

and external situation to formulate strategy. Implement the strategy, evaluate
the progress, and make adjustment as necessary as shown in Figure 14.5.
Guiding Principles to Successful Strategic Planning

Following are the guiding principles to support its consulting practice in strategic
planning:

1. Successful strategic planning should leads to action

2. It should build on a shared vision that is values-based
3. It should be an inclusive, participatory process
4. It accepts accountability to the society
5. It is externally focused and sensitive to the organization's environment
6. It is based on quality data It requires an openness to questioning the status
quo
7. It is a key part of effective management.

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How Strategic Planning can be used to improve the Nursing
Management?
1. Strategic planning can be used to improve the nursing management as
2. Provides accountability and monitoring of performance it helps in setting
more formal planning programme and require department and unit planning
3. By integrating strategic planning with operational and financial
4. Plans To concentrate more on strategic issues
5. To improve knowledge and skill in strategic planning
6. To improve the communication of top nuning managers with the
organization administrator
7. To allow better execution of plans
8. To be more realistic and rational
9. To anticipate the future plan for it
10.To develop annual budget
11.To focus on quality outputs that will improve nurse performance and
productivity
STRATEGIC PLANS

Strategic plan is the plan that outlines the vision, mission, beliefs and values
that direct the decisions. Strategic plans should establish a clear, coherent
and realistic view of what the organization wants to achieve and a 3 to 5 year
overview of how twil set about achieving its objectives
A strategic plan should not be confused with a business plan. The former is
likely to be a (very) short document whereas a business plan is usually a
much more substantial and detailed document
A strategic plan is not the same thing as an operational plan The former should be
visionary, conceptual and directional in contrast to an operational plan that is likely
to be shorter term, tactical, focused, implemental and measurable.
Requirements of a Good Strategic Plan

1. A sound plan should serve as a framework for decisions or for

securing support approval
2. It should provide a basis for more detailed planning
3. It relate to the medium term le. 24 years

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4. It should be simple, logical and practical it should focus on matters of
strategic importance
5. Plan should be separated home day-to-day work
6. It should be complete and integrated
7. Plan should distinguish between cause and effect
8. It should be reviewed periodically
9. Plan should be in written form
10.Plan should be capable of being controlled
11.Plan should assist in benchmarking & performance monitoring
12.It should stimulate change and become building block for ned plat

13.Plan should be realitical and attainable so as to allow managers and

enters to think strategically and act operationally
14.Defining the Strategic Framework
15.A strategic framework indades
16.A dearly stated Vision
17.Clearly articulated value
18.A minion, articulated solament
19.The overall goal of the project or orgenation
20.The immediate cojecte of the pact or organization
21.The key result anvas on which the project or organization intends to
focus
22.An undemanding of the gage between where an organization or
project is and where it needs to be to achieve its goals and objectives
and of the form that are likely to help and hinder it.
23.All above parameter of strategic framework is depicted in Figure 14.6.
24.Standard Format for a Strategic Plan
25.The following are the sections commonly included in a strategic plan:
26.Introduction by the President of the Board
27.A cover letter from the president of the organization's board of
directors introduces the plan to readers.
28.Executive Summary
29.In one to two pages, this section should summarize the strategic plan

Mission and Vision Statements

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State organizational mission and vision in this section. Mission and
vision answer the big questions about why the organization exists and
how it seeks to benefit society
Organization Profile and History

1. In one or two pages, give organizational profile that can help

for the planning committee.
2. Critical Issues and Strategies
3. The section may be presented as a brief outline of ideas or as a
narrative that covers several pages.
4. Program Goals and Objectives

The program goals and objectives are the heart of the strategic plan
and are the plan of action-what the organization tends to "do" over the
next few years. As such, this section should serve as a useful guide for
operational planning and a reference for evaluation. The goals and
objectives will be delineated at both the group level and the individual
program level.

Management Goals and Objectives

In this section the management functions are separated from the

program functions to emphasize the distinction between service goals
and organization development goals and hence enhance the "guiding"
function of the plan.

Appendices

These should be included only if they will truly help readers'

understanding of the plan.
How to Make a Strategic Plan Implementation Successful?

In order to make a strategic plan successful for and useful tool both
for management and staff, it is important to keep the following
factors/elements/strategies in mind at the time of strategic planning
process:

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Process Elements

Engage informal and formal organizational leaders when conducting a

process.
Provide training on the process and establish a list of expectations and
results to ensure that everyone is working towards the same outcomes.
Include individuals who will implement plan as involving these
individuals will ensure that the plan is realistic and help motivate staff
to implement the plan.

1. Address critical issues for the organization

2. Agree on how the plan will be operationalized
3. Content Elements
4. Include an internal and external focus
5. Do not get too detailed strategic plan
6. Ensure that your plan is grounded in the reality of what can and
cannot be accomplished.
7. Keep language, concepts and format simple
8. Usage Elements
9. Actively use the plan as a management tool
10.Formalize the usage of the plan into the day-to-day activities of
the organization.
11.Establish operational goals and activities within the context of
the strategic plan
12.Ensure that there is a system of controlling mechanism, e.g.
evaluation meetings, monthly reports against plan to inform
management on progress.
13.Periodic review of strategy and strategic plan.

OPERATIONAL PLANS

Introduction

Operational or operating plans are the single-use, short term plans

derived from strategic plan in order to accomplish the goals and

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objectives of organization. An organization should have operating
plans for each major organizational unit and correspond to its fiscal
year. They link the strategic plan with the activities, the organization
will deliver and the resources required delivering them. These plans
usually establish the activities and budgets for each part of
organization.
What is an Operational Plan?

An operating plan is a schedule of events and responsibilities that

details the actions to be taken in order to accomplish the goals and
objectives laid out in the strategic plan.
These are a step-by-step process of taking you from where you are
now to where you want to be in terms of achieving your goals and
objectives.
Goals of strategic and operational plans are same but it differs In its
objectives.

It is sometimes called management plans. This is a sort of a written

blue print to achieve the intended goals and objectives.
These are the directions to deliver the nursing services.
It includes planning for budget, organizational structure, quality
monitoring process, new programmes and directions to nursing
leaders

Content of Operational Plan

Operating plans are the detailed action plans to accomplish the

strategic goals laid out in the strategic plan. It should include:
• Clear objectives

Activities to be delivered

1. Quality standards
2. Desired outcomes
3. Staffing and resource requirements
4. Implementation timetables

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5. A process for monitoring progress
6. Purposes of Operational Plan
7. To specify the activities and procedures
8. To set the timetable for the achievement of the objectives
9. To allocate the responsibilities the staff involved in particular
activity
10.To prepare the staff for taking up the responsibility and
evaluation of patient care
11.To specify the records to be kept and policies needed • to give
freedom to each staff to plan its own goals, objectives in line
with the departmental and institutional goals

Formulation of Operational Plans

The members who will be involved in implementation should

prepare operational plans. Operational plans required to plan
which programs and management functions are planned when,
why and with what resources. An effective operational or action
plan can be formulated by using the 6 W method. Want, Why,
What, When, Who, What if.

Step 1: Want: Make expectation obsessive that will lead to

commitment.

Step 2: Why: Covert Wants into goals and objectives using the
SMART principle, Le. Make them Specific, Measurable,
Attainable, Realistic and Time bound. Keep in mind why the
goals are to be achieved.

Step 3: What: Make clear what knowledge, attitudinal behavior,

skills and habits (KASH) are required to achieve the objectives.
Take an inventory of current organizational KASH level and
raise them to the level required to accomplish the objectives.

Step 4: Who: Team up with the staffs that have similar goals
and objectives in the organization. Team support and
encouragement will help to keep moving.
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 Step5: When: Make a definitive time frame to achieve
objectives, which will help to utilize time, money, and effort
more effectively.

Step 6: What if: Be ready with the alternate action plan-what if

the first plan fails.
How to Evaluate Operational Plans

Following is the check list that can help in evaluating the

operational plans:
Is there total commitment to the plan by staff responsible for
Implementation?
Is Operation plan clearly fit with the strategic plan?
Are objectives, actions and outcome measures clearly
specified?

Does it have a clear implementation timeframe?

Is there a clear allocation of responsibilities?
Is there an explicit process for monitoring progress?
Characteristics of an Effective Annual Operating Plan
There should be:

1. An appropriate level of detailed action plan

2. A format that should include the periodical evaluation
and feedback towards progress
3. Structure that should fit clearly with strategic plan
4. Operational Plans and Strategic Plans
5. Relationship

Let us take an example of operational planning in the quarterly staffing plan. The
operational planning is done in context with strategic planning, so the operational
workforce planning (Staff planning) is done in context with the overall strategic
workforce planning (Talent strategy). On the other hand, operational workforce
planning aligns with the operation plan and generally forms a basis for operational

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decisions to address short-term planning needs affecting daily operations (Fig.
14.7).
Differences
Table 14.2 depicts that there is a difference between operational plan and strategic
plan in terms of need, time frame, and integration, input, output, planning
approach, forecast, supply and demand requirement, focus, aligns with and terms
used.

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