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PLANNING - strategic planning - P4
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Key Questions
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'Where do we want to go and what do we want to enhance?'
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Alignment with principles
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Organisations should ensure that:
| Their strategic plans are aligned with the organisation's vision and mission for sustainable development and any other operating principles they have adopted. |
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When
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Once sufficient information has been gleaned from the initial performance review; mission and vision have been agreed; actions, impacts and outcomes, and legal and regulatory requirements are understood.
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Who
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Project Champions, Board Members and Senior Management Team
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Information gathering and development of strategic options
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Key activities
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| Incorporating findings from previous or parallel activities into mainstream strategic planning and definition of organisational response/goals in the short (1 - 5 years), medium (6 - 20 years) and long (21 years and beyond) term |
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Suggested resources
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Outcomes & outputs
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| Identification of strategic options (short, medium and long-term) |
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Parameters and business objectives
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Key activities
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| Agreeing the boundaries of responsibility for performance, and identifying business objectives relevant to capital enhancement |
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Suggested resources
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Outcomes & outputs
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| Agreement and prioritisation of strategies that minimise the negative and maximise the positive |
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Review of strategic options
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Key activities
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Reviewing strategic options against the organisation's:
| - | Vision |
| - | Initial Performance Review |
| - | Significant actions, impacts and outcomes |
| - | Legal and regulatory management and analysis |
| - | Mission statement and adopted operating principles |
| - | Stakeholder engagement process |
| - | Existing and required future business culture |
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Suggested resources
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Outcomes & outputs
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Strategic plans, including pointers for tactical planning and management |
| Agreed capital enhancement strategy - including rationale for a balanced enhancement approach and justification of any boundaries to corporate responsibility, capability and capacity |
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Clearly defined roles, responsibilities and authority for implementing strategic plans |
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Awareness-raising and senior management commitment
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Key activities
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| Agreeing final strategies, including prioritisation and roles, responsibilities and authority for their delivery |
| Communicating strategic plans and providing feedback mechanisms |
| Refining strategies following communication and feedback (if required) |
| Board-level sign-off on the strategies |
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Suggested resources
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Outcomes & outputs
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Updated communications plan |
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Documented processes for handling and responding to stakeholder feedback on the strategies |
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Board-level buy-in and sign-off |
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Key Issues
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Useful documents:
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| Existing and historical strategic plans and supporting documentation |
| Market and competitor intelligence information and analysis, including market trends and actual or potential innovation possibilities |
| Findings from stakeholder engagement exercises |
| Sector analysis and benchmarking reports/studies |
| Initial performance review report/compliance report/actions, impacts and outcomes report/governance reviews |
Real-world tips:
| The implementation team will require a clear understanding of the issues and what needs to be done to ensure they are incorporated at the appropriate planning level. Failure to achieve integration at this level will mean that any further operational changes could be in conflict with the thrust of business planning, slowing progress, sending conflicting internal (and external) messages and denying the organisation access to the benefits identified by the performance review. |
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To prompt the strategic planning process, in addition to any written report submission, implementation teams may like to consider the use of the following:
| - | Scenario planning and back casting exercises (if not already done) |
| - | Introductions to The Natural Step or alternative models |
| - | Involvement of financial directors and economic advisers in weighting economic impacts and opportunities |
| - | A consideration of extended time horizons for business planning |
| - | Assessing existing and future growth assumptions, mergers and acquisitions, joint ventures, outsourcing arrangements, suppliers and subcontractors (including products and services) against the organisation’s mission, vision, operating principles and performance requirements |
| - | Revisiting policy statements for adaptation and reissue |
| - | Acknowledgement of gap between corporate values and corporate actions (if any) |
| - | Close stakeholders can be a useful sounding board when developing strategic plans |
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| Commitment to review strategies after the initial implementation process. |
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