Part II: Strategic Planning

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Session 1: Concept of Strategic Planning and
Management

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 Concept of SPM

 A strategy is management’s game plan for

Strengthening the organization’s competitive position
Satisfying customers/stakeholders
Achieving performance targets
 It is about being different and choosing to perform activities
differently than competitors.
 It is deliberately choosing a different set of activities to
deliver a unique mix of value.

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 Concept of SPM … cont’d
• Four big questions involved in a strategy
1. Where are we now?
2. Where do we want to go?
3. How will we get there?
4. How do we know if we got there?
Strategic Planning is managerial process to creating and
executing long-term goals and strategy
• It is an organization's process of defining its strategy, or
direction, and making decisions on allocating its resources
to pursue this strategy.
• A strategic plan maps
1. Where the organization is heading
2. Short and long range performance targets
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3. Actions of management to achieve desired outcomes
 Concept of SPM … cont’d
• A strategic plan consists of
a. Mission statement
b. Strategic and financial performance objectives
c. Comprehensive strategy for achieving the objectives
• SPM is process of determining what an organization
intends to be in the future and how it will get there.
• SPM looks for the best future of the organization and
the best path to reach the destination.
• SPM is also defined as the process of developing
objectives for the organization and its parts as well as
developing and evaluating alternative courses of action
to reach those objectives. 5
 Pre-Requisites to Strategic Planning
 Commitment of senior management.
 Carry out SWOT analysis.
 The organization must have the financial and human
resources to carry out SPM.
 Knowledge and skills required for SPM.

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 General tips to SPM

• Strategic planning is a way of thinking and an ongoing

process; it is never perfect or complete.
• If you want to use consultants their duty is to advise you and
not to dictate you.
• Emphasize creativity, innovation and realistic steps to
continuously improve the formal planning.
• Keep the strategic plan realistic, simple and manageable.

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 General Tips to SPM… cont’d

• Adopt strategies that can be implemented and are within

your capacity.
• Strategic planning is a tool.
• Don’t adopt strategies without careful consideration of
how they would be implemented.

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 Session 3

Strategic Planning and Management Process

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 SPM Process
 Step one: Planning to plan/getting organized
 Step two: Analyze country/regional context
 Step three: Values/operational philosophies and Stakeholders
 Step four: Draft goals and objectives
 Step five: Environmental scanning
 Step six: Strategy formulation
 Step seven: Strategy implementation
 Step eight: Strategy Control and evaluation 10
 SPM Process

• Step One: Planning to Plan/Getting Organized

• Agreement on whether to develop a strategic plan

• Get the commitment.

• Determine if outside help is needed

• If the Institute has not conducted strategic planning before.

• For variety of reasons previous strategic planning was not

deemed to be successful.

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 Step Two

• Analyze Country or Regional Context

• Vision, Mission and Mandate Analysis

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 Analyze Country or Regional Context
 Political Situation
 Social Situation
 Economic Situation
 Infrastructure, Location and topography etc. of Ethiopia
or your region, and.
 The situation of the sector.

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 Organizational Background/Profile

 Why and where the organization was formed?

 Its service and operational areas.
 Structure
 Human Resource/Staffing
 The institution’s past achievement
 Its past shortcoming/constraint

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 foundation
Vision of SPMof SPM)
(Foundation

Vision

Defined
-is inspiration or aspiration or
desired future state
-concentrates on the end goals
not the means to reach the
goals.
-is “What do we want
to become?”
-is what the organization wants
to become.
Example
የእንጅባራ ዩኒቨርሲቲ ራዕይ፡- በ2022
ዓ.ም. በኢትዮጵያ ተመራጭ በአፍሪካ
ታዋቂ ዩኒቨርሲቲ ሁኖ ማየት
Generally vision statement,
describes how the future will
look if the organization achieves
its mission.
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 MISSION foundation
(Foundationof SPM
of SPM CONT.)
Mission
Defined
Example
• enduring statement of የእንጅባራ ዩኒቨርሲቲ ተልዕኮ፡- ጥራት፣
purpose አግባብነትና ፍትሃዊነት ያለው
• distinguishes one firm ትምህርትና ስልጠና በመስጠት
from another በዕውቀት፣ በክህሎት፣ በአመለካከትና
በሥነ-ምግባር ብቁ የሆኑ ስራ ፈጣሪ
• declares the firm’s reason
እንዲሁም ሀገር ወዳድና ኃላፊነት
for being
የሚሰማቸው ምሩቃንን ማፍራት፣
• “what is our business?” ችግር ፈቺ ጥናትና ምርምሮችን
• is what an organization is ማካሄድና ፍላጎትን መሰረት ያደረገ
all about. የማኅበረሰብ አገልግሎት መስጠት፡፡
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 Foundation of SPM CONT…
• A well-defined mission statement must be:
– narrow enough to specify real area of interest
– serve as a boundary for what to do and not to do
– serve as beacon of where top management intends the
organizations to be
– simple and concise
– speaking loudly and clearly
– generating enthusiasm for organization’s future
– eliciting personal effort and dedication from everyone
• A mission statement explains what the organization
does, for whom and the benefit.

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 Mandate
 What is formally required to do?
 May be codified in laws, regulations or charters
 Provide preliminaries expected to accomplish
 Defining boundaries of the Institute
 Identification of mandate requires source of
mandate
 Defining the limits is mandatory
 What must be done
 What could be done
 What must not be done
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 Step Three: Values and Stakeholders
Example

July 11, 2024

values እሴቶች (Values)
• ቅድሚያ ለደንበኛ
Defined • ጥራት በሁሉም
 are strong convictions or • አካዳሚክ ነፃነት
underlying principles which • ለሀገር በቀል እውቀት ትኩረት መስጠት
guide and drive the actions and • ፈጠራን ማበረታታት
activities of individual and • ብዝኃነትና መቻቻል
groups • ዘላቂነት
 are convictions that a specific • በጋራ መሥራትና ትብብር
mode of conduct or end- state of
• የሥነ-ምግባር ተዓማኒነት
existence is important

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 are set of principles that further
clarify what we stand for.
 are “Heart and Soul” of org,
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 Stakeholders Analysis (Managing Relationship)

• Stakeholders are
individuals,
groups and organizations
who are in a position to influence your work,
 have interest in your work or who can lay claim
to your work.

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 Step four:foundation of SPM
Draft Goals and Objectives

Goals

Defined
is general statement of aim Example
or purpose.
It is broader and has longer
range than an objective.
It reflects the relevance of
the mission to different
stakeholders.
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 Step four፡foundation of SPM
Foundation of SPM CONT…

Objectives
Defined
 are quantifiable and more precise statement of
the goal.
 indicate how the mission can be achieved.
 represent specific levels of achievement
 In stating objectives, make clear: what is to be
accomplished 22
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 foundation
STEP FOUR of SPM
Foundation of SPM CONT…

Objectives
Defined
Example
 how much is to be
accomplished;
 by when it is to be
accomplished; and
by whom it is to be
accomplished
Generally objective should
be SMARTERS 23
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 STEP FIVE: Environmental Scanning

Environmental factors are forces which

significantly influence or have an impact upon
the performance of an organization or
company.
They include:
External Factors (Located outside of the organization)
Internal Factors (Located inside of the organization

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 External environment
To be successful over time, an organization needs to
be in tune with its external environment which is
uncertain nowadays
Environment uncertainty is a threat to strategic
managers to develop long-plans and make strategic
decisions to keep the organization in equilibrium
with its external environment.
So, there must be a strategic fit between
environment and the organization.
Analysis/scanning of external environment is termed
as external strategic management audit and it
focus on identification and evaluation of trends
and events beyond control of single firm.
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 External environment
• Its purpose is to develop list of opportunities to be utilized
and threats to be avoided.
• So, Prior to the developing its strategy, any organization must
perform a survey or audit of its External environment to
identify potential external opportunities and threats.
• Opportunities – Potential areas for growth and higher
performance. External in nature e.g. marketplace, unhappy
customers with competitor’s, better economic conditions,
more open and comfortable policies, . .
• Threats – Challenges confronting the organization. Threats
can take a wide range and external in nature. E.g. worsening,
economy, unemployment increase, natural disaster ,etc.
• External environment is classified into two broad categories.
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 External environment cont…
S - Sociological
– The ways in which changes in society affect
the project
T - Technological
– How new and emerging technology affects
our project / organization
L - Legal
– How local, national and global legislation
affects the project
E - Environmental
– Local, national and global environmental
issues 27
 External environment cont…
A) General/macro/Remote External Environment
• External Factors or those factors which have an
indirect effect on all companies / organizations
which may include
1. Economic forces
2. Social, cultural, demographic forces
3. Political, governmental, and legal forces
4. Technological factors
5. Natural environment
 Generally it is called PESTLE Analysis
P – Political
– The current and potential influences from political pressures
E - Economic
– The local, national and world economic impact 28
 External environment … cont’d
• PESTEL analysis is a useful tool for understanding
the “big picture” of the environment in which the firm
operates
• By understanding the environment, the organization
can take advantage of the opportunities and minimize
the threats.
B) Task/Micro/Specific External Environment
External Factors or those factors which have a direct
impact on the institute such as Customers, Suppliers,
Labor supply. etc.

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 Internal environment
• Internal Factors are forces located within the institute
which have an impact upon the overall performance of the
organization. Examples include: human resources,
products & services, finance, technology, organizational
culture, etc.
• Prior to developing its strategy, a company must perform a
survey or audit of its internal environment to identify
existing strengths and weaknesses inside the company.
• Strength: refers to a resource (e.g. asset, competency,
process, skill, knowledge) of a company which provides
the company with a competitive advantage relative to its
competitors.
• Weakness: “a resource is a weakness if it is something
the institute does poorly or doesn’t have the capacity to do
currently 30
 Internal environment … cont’d

Strength:- Those things that you do well, the high value

or performance points
Strengths can be tangible: Loyal customers, efficient
distribution channels, very high quality products,
excellent financial condition, appropriate technology,
dedicated management
Strengths can be intangible: Good leadership,
strategic insights, customer intelligence, solid
reputation, high skilled workforce
Often considered “Core Competencies” – Best
leverage points for growth without draining your
resources 31
 Internal environment … cont’d

Weaknesses – those things that prevent the

organization from doing what it really need
to do. Since weaknesses are internal, they
are within the control of the managers.
Weaknesses include: bad leadership,
unskilled workforce, insufficient resources,
poor product quality, slow distribution and
delivery channels, outdated technologies,
lack of planning, . . .

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 STEP SIX Strategy Formulation
• Once strategists have assessed and forecasted
present and future SWOT, determined core
competencies and strategic capabilities, and
determined and prioritized strategic objectives,
they proceed to formulate strategy.
• Strategies tell how the firm will get to where it
wants to be.

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 Strategy Formulation … cont’d
• Strategy formulation is the process of developing
the mission, identifying an organization’s external
opportunities and threats, determining internal
strengths and weakness, establishing long term
objectives, generating alternative strategies, and
choosing particular strategies to pursue.

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Step 7: Strategy Implementation

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The Nature of Strategic Implementation
• Strategic implementation refers to the
procedures used by managers for putting the
strategic plan into practice or action.

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• It is the sum of the activities and choices required
for the execution of a strategic plan.
• It is the process by which strategies and policies
are put into action through the development of
programs, budgets, and procedures.
• Implementing strategy affects an organization from top to
bottom; it impacts all functional and divisional aeras.
 The Nature of Strategic Implementation
• Strategy implementation is the process of
establishing annual objectives, device policies,
motivate employees and allocate resources so that

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formulated strategies can be executed.
• Strategy implementation involves developing a
strategy-supportive culture, creating an effective
organization structure, redirecting marking efforts,
preparing budgets, developing and utilizing
information system, and linking employees’
compensation to their performance.
• The implementation is the action stage of strategic
management.
Strategy Implementation Success factors

Hard Elements Soft Elements

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1. Strategy 4. Shared Values

2. Structure 5. Skills

3. Systems 6. Style

7. Staff
 Factors which influence Strategic
Implementation
Some of the following factors have an impact on the
implementation process:

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1. Motivation: The degree of motivation of both
managers and employees will have a direct
impact on the company’s ability to effectively
implement the strategic plan.
 For example, middle level managers and
employees might not have a strong
commitment to the strategic plan if they
perceive that the proposed changes will not
be beneficial to their personal interests.
 Factors … cont’d

2. Organizational Culture: The existing

organizational culture can also have a direct
impact (positive or negative) on the

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implementation process.
 For example, the strategies proposed in the strategic plan might
run counter to the values of the existing organizational culture.
 In cases of corporate mergers, strategic plans might be poorly
implemented after the merger due to a lack of fit between the
two companies organizational cultures which the strategic
planners failed to consider.
 Factors … cont’d

3) Structure: Successful implementation of the

strategic plan requires that there also be
consistency between the strategy and the

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organizational structure (e.g. functional,
divisional, SBU/holding company, etc.
• Functional Structure Concentration
Strategy
• Divisional Structure Concentric Div.
• SBU / Holding Co. Conglomerate Div.
Step 8: Strategic Control And
Evaluation

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 Strategy Control and Evaluation
Why does actual performance sometimes not match the
performance desired in the strategic objectives?
– Was the strategic plan severely flawed in its
formulation?
– Did management’s implementation of the plan fall
short?
– Were there uncontrollable factors external to the
organization that prevented achievement of the plan?
These questions suggest the importance of Control &
Evaluation and a need to understand how the plan can
go awry.
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 Steps in Controlling and Evaluation
• Steps in controlling & evaluation process:
① Setting standards for performance
② Measure actual performance
③ Compare actual performance with the
standard
④ Analyze the reasons for significant
deviations, if any
⑤ Take corrective action when performance
does not fall within acceptable range
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 EVALUATION SYSTEMS
 Evaluation refers to measuring & controlling the
organization’s progress with respect to its strategy &
when discrepancies exist, taking corrective action
 Corrective action may require adjusting performance
objectives because of:
 Changes in circumstances
 Shifting contingency plan
 Fine-tuning strategies

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 EVALUATION SYSTEMS CONT’D …
 There are two types of evaluation systems: process evaluation &
outcome evaluation
 Process evaluation: uncovering the deficiencies in an ongoing
program.
 Monitoring the progress of an organization against the strategic
plan while it is under implementation
Four phases of process evaluation
1. Problem identification
2. Solution development
3. Implementation of the solution
4. Feedback evaluation
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Session 3: Report Writing

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 Report Writing
• The writing process consists of five primary
stages:
1. Planning to write
2. Organizing your information
3. Determine an appropriate medium
4. Writing the draft
5. Revising

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 Writing process
• Gather →Organize→ Focus→ Draft→ Edit
Gather
• Articles, Books, Financial Statement,
Interviews, Databases, Information from world
wide Web, Brain Storming, personal Notes,
and others.
Organize
• Strategic order, batching or grouping ideas,
Heading, introduction, Body and conclusion.

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 Writing process (cont.)
Focus
• “Skim only technique”, ”Nutshell”, “teach” your
ideas, elevator techniques, and others.
Draft
• Organize and focus first, Compose in any order,
avoid editing, get a typed copy and leave a time
gap before editing.
Edit
• Edit for strategy, for macro issues, for micro
issues and edit for correctness.
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 Characteristics of a Good Report
 Precision
 The accuracy of facts
 Relevance
 Conciseness
 Render-orientation
 Simple language
 Grammatical accuracy
 Unbiased recommendation
 Clarity
 Attractive
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The 7C’s for Report writing

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4S’s for report writing

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 Readers’ Expectations
• Three of the most common expectations are that your
writing will:
1. Keep it simple
2. Avoid long confusing sentences
3. Use clear sentences

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 The outline

• An outline has much the same use to the technical writer that a
map has to the serious traveler.
• You also need a route in order to get where you are going in
your writing.
• The route you take is your method of development. The actual
physical map that you will use is your outline.
• Like a map, your outline will help you in a number of different
ways:
1. It forces parallel structure of your ideas.
2. It allows for easy evaluation of your organization and
development.
3. It shows you completeness.
4. It save you time.
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1. Outlining forces parallel structure of your ideas
• This simply means that ideas of equal importance get equal
emphasis.
• Ideas of lesser importance are always subordinate to some idea
of greater importance and related to that idea.
• The very act of outlining forces this.
I. First Main Idea
A First subtopic subordinate to I
B. Second subtopic subordinate to I
II. Second Main Idea

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2. Outlining allows for easy evaluation of your
organization and development
Has a dual advantage:
1. evaluate your approach to your writing
assignment,
2. anyone who must pass approval on the writing
project can give preliminary approval.
• This has tremendous value in speeding up the
process of revising, correcting, and rewriting.

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3. Outlining shows you completeness
• There is nothing worse than trying to write
something and getting to the end of it only to
realize that you have left something out.
• Outlining allows you to rework transitions
and make sure that what you have to move or
add fits smoothly before even writing.
• You can spot the problem quickly and make
the addition or deletion easily.

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4. Outlining saves you time
• The greatest value in outlining and, ironically,
the most overlooked.
• Writers who outline as a regular, systematic
procedure save themselves time because the
outline will point out defects clearly and allow
their repair long before they are in final prose.
• By not taking the time to write an outline, you
probably are causing yourself the
inconvenience and aggravation of time
consuming rewrites.
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• You can't outline in your mind.
• You must write it down on paper and follow it as you
write.
• There are basically three ways to format an outline:

1. Simple list
2. Academic outline
3. Engineering outline

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 Report Writing Components

Format of Technical Reports

1. Front material

2. Main Text

3. Back matter

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 Discussion Questions
1. Conduct SWOT analysis on the planning practices of
Injibara University.
2. Evaluate the reporting practices of Injibara
University.
3. Put the way forwards to improve planning practices
in Injibara University.

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