Strategic Planning

Effectiveness
Performance Management
MaChere GC Reyes-Bilog
June 20, 2015

solution
P

A
L

process

TA
CT
IC

there is no definitive answer about what strategy really

is

people think about strategy in different ways

What is Strategy?
Strategy is thedirectionandscopeof
an organization over thelong-term:
which achievesadvantagefor the
organization through its configuration
of resources within a challenging
environment, to meet the needs
ofmarkets and to fulfill stakeholder
expectations - Johnson and Scholes
strategy is concerned with making
major decisions affecting the longterm direction of the business

What is Strategy?
Business definition
Major business
decisions are by their
very nature strategic,
and tend to focus on

What is Strategy Evolution of

Strategy

Schools of Strategy
Formulation
1. Design School
2. Planning School
3. Positioning School
4. Entrepreneurial School
5. Cognitive School
6. Learning School
7. Power School
8. Cultural School
9. Environmental School
10.Configuration School

Being unsatisfied with the discussion on strategy,

Mintzberg proposed the idea that strategy is like those
blind men describing an elephant

We are all like the blind men and the strategy

process is our elephant", say Mintzberg, Ahlstrand
and Lampel. "Everyone has seized some part or
other of the animal and ignored the rest.

DESCRIPTIVE
PRESCRIPTIVE

Schools of Strategy
Formulation
Model

Process

Design School

A process of conception

Planning School

A formal process

Positioning School

An analytical process

Entrepreneurial School

A visionary process

Cognitive School

A mental process

Learning School

An emergent process

Power School

A process of negotiation

the last
Cultural School
seven
DESCRIPTI
Environmental School
VE
Configuration School

the first three

PRESCRIPTIV
E

A collective process
A reactive process
A process of transformation

How strategy
SHOULD be
formulated

Schools of Strategy
Formulation

How strategies
are ACTUALLY
made

Strategy Formulation
Process

Where are we?

What to we have to work with?

Diagnosis
Analyze the situation using any of
the following tools:
PESTEL framework
Porters 5 Forces Framework
SWOT Analysis

Design Formulation
Formulate the desired outcome situation
Identify a corporate mission
What is our business?
What should it be?

Make the vision

Where do we want to go?

Formulate the values

How should managers and employees
conduct themselves?
How should the company and managers and
employees do business?

Make SMART objectives

Implement
Never adopt a strategy you do
not understand how to
implement.
Strategy must lead to action, not
be its substitute.

Descriptive School
strategy becomes a compromise
between a fixed plan and ability
to change
Change is an integral part of
strategy formulation process.
This can be examined in terms of
the following:

Descriptive Embrace Change

Structure and Power

Measure - Check whether the plan is being adhered

to

Measures are quantifiable performance

statements, and they must follow
certain guidelines
Measures should be relevant to the
goal and strategy; placed in context of
a target to be reached in an identified
time frame; capable of being
tracked period after period; and
owned by the person whos
responsible for the goal.

Measure Different Types

Efficiency measures
Outcomes measures
Quality measures
Project measures
Balanced Scorecard
Performance Prism

Balanced Scorecard
Developed by Kaplan and Norton in
1992

It involves taking both

financial/non-financial measures
and examines the benefits
delivered to all the organizations
stakeholders.

Balanced Scorecard

Performance Prism
developed by Andy Neely, Chris
Adams, and Mike Kennerley as an
alternative to BSC

I THINK .