The volatility of the business environment causes most firms to adopt reactive strategies and not proactive ones. Wellness and prevention will gain importance. The basic model centers on the mission and vision statements. It helps companies that want to try to grow sales volumes or have it as a major focus area. At its core, succession planning relies on developing and identifying new leaders. Explain the differences between strategies, goals and objectives. The organic model works well for organizations where traditional methods feel static and obsolete. Kaufman Model: Also called mega planning, the Kaufman Model relies on a needs assessment. Balanced Scorecard (BSC): The balanced scorecard system strives to connect big-picture elements with operational elements. The strategic planning process is a continuous cycle, involving plan design, implementation, and evaluation, as well as stakeholder engagement, the maintenance of strategic planning mechanisms, and alignment with the budgeting process. The key to the balanced scorecard is that a business should be a balance of the four quadrants. With this, you can begin to map out the plan for your company’s priorities, mission, and vision. Strengths and weaknesses are internal characteristics, while opportunities and threats are external. Core values describe your beliefs and behaviors. Strengths: What the business does well to achieve its objectives, Weaknesses: What activities could keep a business from achieving its objectives, Opportunities: The external factors that could help achieve its objectives, Threats: Possible external factors that could keep the company from achieving its objectives. So it’s critical that these elements are well thought-out and defined. This strategic area of focus aligns with DNTP’s intent to solve contemporary public health problems related to environmental exposures and includes the following program areas: Use the template below to draft a strong, comprehensive IT strategic plan. VRIO comes into play after a company creates a vision statement, but before the rest of the planning process. Like models, strategic planning frameworks help an organization through the strategic planning process. The planning process can help companies identify specific hiring needs. The next step is to come up with goals you must achieve to live up to your mission and make it a reality, then outline what must happen to achieve those goals. “You might think you know what your mission and goals are, and after you go through the process, you might need to change your mission and goals,” Bryson explains. This model is especially effective when your external surroundings are generally calm. Some people, himself included, call it the Strategy Change Cycle. “Think of models as a way of ideating strategy. It also works for companies that are new to strategic planning. A GUIDE TO SAMHSA’S STRATEGIC PREVENTION FRAMEWORK 4 Prevention planners are pressed to put in place solutions to urgent substance misuse problems facing their communities. Lastly, create a simple monitoring plan to make sure your organization stays on track. Diversification is all about new products and services and new markets; this carries the most risk, but potentially offers large gains. Customers’ Bargaining Power: Can customers pressure you to react to their demands? This model focuses on the impact an organization can have on society and clients. The FEMA 2018-2022 Strategic Plan provides a framework for supporting the United States before, during, and . John M. Bryson, McKnight Presidential Professor of Planning and Public Affairs at the Hubert H. Humphrey School of Public Affairs, University of Minnesota and author of Strategic Planning for Public and Nonprofit Organizations: A Guide to Strengthening and Sustaining Organizational Achievement, created the Bryson model. The strategic planning frameworks above are all meant, in different ways, to help you organize your objectives, measures, and projects. PEST Model: The PEST (political, economic, social, and technological) approach looks at elements of the external environment, including the forces in its name. This less systematic model requires patience since it involves constant dialogue and is never really finished. Because employees move on or retire, a company needs to have a plan in place to assume new and important roles. Create a framework for teams to align their work with company strategy. There will be a change in the labor supply, especially in the number of primary care physicians available. Since it helps to identify the attractiveness of an industry and a firm’s strengths, the grid can help evaluate market share and identify areas for development. “McKinsey’s is one of my favorites because it applies to businesses small to large and generates excitement,” says Wright. But be careful with metrics that only consider financial success — there is much more to healthcare than profit. The issue- or goal-based model evolves from the basic model and results in a more comprehensive plan. SWOT Analysis or SWOT Matrix: SWOT (strengths, weaknesses, opportunities, and threats) offers a way to examine both internal and external forces impacting your company. Strategy Map. Its creator, Adrian Slywotzky, defines value migration as the shifting of forces that create value, and that shift goes from an outdated business model to a better-designed model that satisfies customers. Many sections include examples, as well. Like the organic model, real-time strategic planning is a continuous process and works best for rapidly changing organizations that might not have the need for set, detailed, or traditional strategic planning. The balanced scorecard takes more than financial profits into account when measuring success. Industries in that space define and accept the boundaries that exist, and they play by the rules. These frameworks look at an industry or business environment and see what factors could impact an organization’s overall health and well-being. Strategic human capital planning refers to when a company looks at how people — and how to manage them — go along with the organization’s strategic goals. Use this template to write down each factor, so you can view your strengths, weaknesses, opportunities, and threats. An elevator pitch is a brief description of your business. The process can help identify issues, such as internal inefficiencies and productivity problems. Value Migration: This model helps companies plan ahead of the competition. All Rights Reserved Smartsheet Inc. VRIO Framework: This approach looks at the questions of value, rarity, imitability, and organization concerning the competitive potential of a company. Cascade’s Wright says the balanced scorecard works well for medium and large companies that don’t change very quickly or don’t need to make radical changes. The Basic Model: Sometimes called a simple strategic planning model, the basic model  involves creating a mission statement, goals, and strategies. Download HR Strategic Planning Template - Excel. Included on this page, you'll find different types of models and frameworks, tools to help you decide which models and frameworks to use, and details on how to use strategic planning models. A strategy map is a visual tool designed to clearly communicate a strategic plan and … The key to the blue ocean strategy is to make the competition irrelevant because you are doing something the others are not. Smartsheet is an enterprise work execution platform that is fundamentally changing the way businesses and teams work. The first step of any strategic planning starts with … The competition can be bloody, which leads to the term red ocean. A red ocean is the known market space. People can refer back to it in order to stick to the overall plan when working on tasks or making decisions. The Threat of Other Substitute Products or Services: Is there a competitor on the market that your customers could use instead of your product or service? Free your team from content sprawl with Brandfolder, an intuitive digital asset management platform. These do not stand alone and often go along with a SWOT analysis and other frameworks. Here’s how objectives, measures, and projects interact: You have a … The alignment model focuses on making sure an organization’s actions align with its vision. Even though you should not use a strategic plan solely because a similar company does, it might help to look at their preferred framework to pick the one that is right for you. Because the graphic is visual and simple, it is an easy way to show how one objective impacts others. Competitive Rivalry Among Companies: If a rival company changes its strategy, will it impact yours? A strategic plan includes many sections. When done well, a strategic plan can help you prioritize your company’s functions and stay in line with your mission and vision. Soon to be by Smartsheet. Companies use the balanced scorecard to do the following: Align the daily work to the longer-term strategy. Imitability: Can anyone else do what you do? after disasters and improving the Agency’s execution of its fundamental mission of helping people. See who is excited about the planning process. He recommends adapting a model or framework to meet your needs, rather than attempting to stick to hard and fast rules that might come from a book or a similar source. In addition, sections includes links to related, additional information to help the reader fill out that section of the framework. “I think if you read a book and try to implement it exactly [as the book outlines it] to your organization, you will fail,” he says. Strategic planners often utilize different frameworks or customize particular models as they move through the planning process. Wright recommends a 70/20/10 split between the three horizons. Establish your competitive advantage and your vision. Note that available human resources can be both strengths and weaknesses. Storyboarding techniques and open dialogue are often a part of the organic model, and everyone is encouraged to participate openly. The key is to figure out which one best applies to your company and its needs — for example, VRIO can help you create a vision statement, and BSC can help keep plans on track. Strategic planning models and frameworks can help guide you through the strategic planning process. The Bryson Model or Strategy Change Cycle, How to Decide Which Strategic Planning Model or Framework to Use, Improve Strategic Planning with Real-Time Work Management in Smartsheet, tools to help you decide which models and frameworks to use, Strategic Planning for Public and Nonprofit Organizations: A Guide to Strengthening and Sustaining Organizational Achievement. A blue ocean is the unknown. To ensure that the plan serves its purpose, the institution — as embodied in its strategic planning team — must fully understand its current state, as well as the factors that will impact and drive it into the desired future state. An agency strategic plan is one of three main elements required by the Government Performance and Results Act (GPRA) of 1993 (P.L. Wright does not recommend changing models during the planning process. Often called a “strategic plan” or a “vision plan,” this document articulates a clear vision for the regeneration project based on the findings of the scoping phase. Learn how the flexible, extensible Smartsheet platform can help your organization achieve more. Jackson advises simplifying some frameworks and adapting them, but he has some cautionary advice about trying to combine parts of different frameworks. Get up and running fast with streamlined implementation and solution building to address your immediate business needs. Below are some possible examples of these factors: Political: Changes in tax laws, trading relationships, grant changes, Economic: Interest rate changes, inflation, consumer demand, Social: Changing lifestyle trends, demographic shifts, Technological: Competing technologies, productivity changes, Legal: Changes in regulations, employment laws, Environmental: Changes in customer expectations or regulations. By thinking of how different perspectives relate to each other, you can come up with your objectives. Clearly see the direction your organization is headed. Most frameworks cover the basics of strategic planning (mission, vision, goals), but include additional sections and have more specific focus areas. The five themes listed below emerged during this planning process and WSU's Strategic Planning and Strategic Directions for 2015-2020 is laid out below. People need to be involved.”. The idea of a blue ocean is to create an uncontested market space for your company. In September 2019, the Department of Homeland Security (DHS) issued its Strategic Framework for Countering Terrorism and Targeted Violence (CTTV Framework) and now offers this corresponding Public Action Plan demonstrating the Department’s efforts to combat emerging threats and improve information sharing. 111-352). Operating costs and government regulations will impact the bottom line. Where are we going? Constantly, people undervalue the role of buy-in with strategic planning. VRIO (value, rarity, imitability, and organization) is a framework that deals primarily with the vision statement, rather than the entire strategy for a company. “If you have a cultural challenge in your organization about getting excited about planning, the model you pick is important. BSC is well-known and works for companies of varying sizes. Strategic planning has a basic overall framework. Real-Time Model: This a fluid process that works best for companies that operate in a rapidly changing environment. Instead of trying to increase profits, turn your efforts toward growing your business. The basic model is not meant for organizations with significant resources to pursue ambitious visions and goals. It emphasizes the journey over the destination. Porter’s Five Forces approach helps companies assess the competitiveness of the market. PEST stands for political, economic, sociocultural, and technological factors. When Drs. Look at the health of your organization and its developmental stage. Not to oversimplify the strategic planning process, but by placing all the parts of a plan into the following three areas, you can clearly see how the pieces of your plan fit together: Initiate and agree on a strategic planning process, Clarify organizational mission and values, Assess the external and internal environment to identify strengths, weaknesses, opportunities, and threats (SWOT), Identify the issues facing the organization, Formulate strategies to manage the issues, Review and adopt the strategies or strategic plan, Establish an effective organizational vision, Develop an effective implementation process, Reassess the strategies and the strategic planning process, Using this cycle, changes to the norm often happen. Real-time strategic planning often involves presenting lists to board members or management for further discussion. Additionally, you can find templates for succession planning here. Sometimes, models can serve as a visual guide. General Electric Model: Also known as the McKinsey Matrix, this model looks at the industry externally versus the internal forces. Agile Strategic Planning Model: The flexibility of Agile planning allows for growth and change in strategic planning. A strategic planis a framework for describing the organization's key processes, people, and technologies at a specific time in the future (typically 3–5 years) and how the organization can reach that future, given its current processes, people, and technologies. There are different ways to present a strategic plan — for example, it can be a written document, a spreadsheet, or an animated presentation. Not to oversimplify the strategic planning process, but by placing all the parts of a plan into the following three areas, you can clearly see how the pieces of your plan fit together: Where are we now? The inspirational model works well for organizations looking to lift the spirits of a staff or to quickly produce a plan. Some organizations might not get to choose the framework they use. Whether you are creating a framework for … Still, the following general ideas persist: There will be a continued need to provide quality patient care. A simple but effective approach is to create goals and projects based on the strategic plan. Existing revenue is placed here, so goals mostly deal with improving margins and processes, as well as maintaining incoming cash flow. Organic Model: As the name implies, this model does not necessarily follow a set plan, instead evolving and changing as conditions warrant. “Frameworks are like a lens to help you see different perspectives, whereas the model is a process you would use from the beginning. Blue Ocean Strategy: This framework emphasizes new markets and uncontested space. The volume and demographics of patients will change. From 2018 to 2022, FEMA will focus on three main Strategic Goals and invite the whole community to adopt these shared The second horizon involves taking what is already happening and expanding it into new areas. Strategy mapping can help an organization reach its goals by providing a visual tool to communicate a strategic plan. If you are looking for a set plan outlining steps to follow, the organic model is not for you. You can’t be so flexible that you’re implementing multiple frameworks together. Gap planning allows you to compare an organization’s current position to its goal, then identify ways to bridge that gap. The vision statement identifies your company’s purpose on a higher level, and the mission statement outlines what happens within the organization to achieve that vision. The familiar Smartsheet interface that is designed for how people actually work leads to rapid and broad adoption across your organization. The Strategic Planning Framework. Some models are sexier than others,” Wright explains. Join us for a re-imagined, innovative virtual experience to get inspired, get connected, and see what's possible. The basic model works well for companies that are small, do not have much time to plan, don’t need to address many serious issues, or operate in stable external environments. What is Strategic Planning? You've seen how the four quadrants of a SWOT analysis work. Then pick the most likely scenario and discuss strategies to address it. Gap planning can also help you identify internal deficiencies. The end result is a plan to help attract and maintain the talent necessary to achieve the company’s mission and vision. Issue-Based or Goal-Based Model: A step up from the basic model, this model is better for more established businesses. 103-62) and the GPRA Modernization Act of 2010 (P.L. Strategy mapping often falls under the umbrella of a BSC, but strategy maps can also stand alone. Strategic planning for specific departments is a bit different than planning for a company as a whole. A company creates demand for a product or service instead of fighting over it, so there is plenty of opportunity for everyone. It incorporates SWOT or other types of assessments to determine goals, mission statements, action plans, and other steps. The only way to get ahead is to outperform rivals to claim a bigger share of the market. Fast-growing and startup organizations might find McKinsey’s framework helpful. McKinsey’s Strategic Horizons framework focuses on growth and innovation by categorizing goals into three categories: the core business, emerging opportunities, and new business. The plan will help make sure you purchase the right assets and work with existing technology effectively. The steps vary. Review your current strategic position and clarify your mission, vision, and values. The map shows how different items interact with each other in various ways, including a cause-and-effect relationship. Strategy mapping helps you identify key goals and unify those goals into strategies. “One mistake is not picking one framework. Strategy maps are often set up in the following manner: List the four perspectives (financial, customer, process and learning, and growth) horizontally. [A model is] a template: You use it at the beginning of the planning process. For example, governmental organizations or companies that receive grant funding might need to produce a strategic plan that fits into a formula the government dictates. For each change in an external force, discuss how it could impact the future of your organization in the following three ways: After looking at the three potential impacts, figure out how to best respond to each. You can think of it as a technology roadmap that outlines where IT can do its part to implement a company’s strategies. Every company needs a strategic plan, and every strategic plan starts with a framework or model. Review your current strategic position and clarify your mission, vision, and values. In contrast, frameworks function as an overlay to a model that helps clarify particular items, such as goals. In this article, seasoned industry experts explain the models and frameworks to help you identify which is best for you. As the name implies, the organic model of strategic planning is more of a free-spirited conversation, rather than a set process. Your elevator pitch is … The balanced scorecard takes more than financial profits into account when measuring success. To learn more about the basics of strategic planning, read this article. Wright says this framework helps companies think deeply about how they will achieve growth instead of merely saying they want to grow. If you’re struggling with the model, it might be you.”. Strategic planning is a team process that sets up how your company will accomplish its goals. Many companies perform a SWOT analysis at the beginning of the strategic planning process, as it offers them a look at what they are doing well and where they can improve. Three areas of focus are operational excellence, customer intimacy, and product leadership.Image credit: CASCADE. This approach focuses on the five forces that can impact the profitability of an organization: The Threat of Entry: Can new companies enter the market? By having a structured planning process, rather than following models that are more organic and reactionary, healthcare entities can survive and succeed. The Agile approach to strategic planning involves reviewing and adapting your strategic plan at regular intervals and whenever conditions warrant it. The goal-based model often includes the following: Action plans, including objectives, resources, and implementation roles, Major issues and goals, along with ways to address them, Yearly operating plan, including a budget. Figure 1 shows the major components … Though Wright encourages using different frameworks, he echoes Jackson’s warning to not use different models at the same time. Your Strategic Planning Framework. If your organization is in trouble, you might want to focus on a framework or model that addresses immediate issues rather than tackles the longer term. It is particularly effective for businesses facing internal struggles. It helps articulate an organization’s mission and, sometimes, its vision and values. Introduction This manual offers a framework for strategic planning with suggestions developed specifi- There are several variations based on the idea, including PESTEL or PESTLE (when you also consider environmental and legal factors) or STEEPLED, where you consider sociocultural, technological, economic, environmental, political, legal, education, and demographic information. In this section, we’ll explain the basics of how some departments typically approach strategic planning. Leaders encourage participants to brainstorm exciting and far-reaching goals, then capture the details using powerful and poignant wording. Once you’ve settled on those values, you’ll need a powerful tool such as Smartsheet to get to the next level. ©2020. Strategic planning helps firms prepare beforehand; it lets the company initiate influence instead of just responding to situations. Free your team from content sprawl with Brandfolder, an intuitive digital asset management platform. Use this template to help you organize your thoughts visually. Gap planning is the analysis and evaluation of that difference. However, some critics of this model say it functions more like an internal development plan than a strategic plan. Most strategic planning processes include a SWOT analysis. For a more detailed look at gap planning, read this article. Conduct an environmental assessment. The model is just a vehicle. The focus is more on learning and less about the method of strategic planning. Investigate what has been missed and what should be incorporated into the revised strategic plan. By answering four main questions, an organization should be able to create a vision statement to take it through the rest of the planning process. The idea is to pursue differentiation, thereby creating market share instead of trying to beat competitors. Strategic Planning and Alignment Definition: A system that ensures agency human capital programs are aligned with agency mission, goals, and objectives through analysis, planning, investment, and … 4. The scenario model looks at what is happening outside of an organization, including regulatory, demographic, or political forces, to determine how they can impact what is happening inside of a company. Strategic planning may be utilized on a large scale, such as planning for business growth over several years or to help a nonprofit or … Learn about our premium resource and portfolio management platform, 10,000ft by Smartsheet. It involves looking at both the internal and external environments of multinational organizations. In this section, you’ll learn the specifics of the different strategic planning models and frameworks. Our world-class consulting team is here to help your organization realize the lasting advantage of Smartsheet. Value Disciplines: This flexible framework focuses on what an organization is already good at and builds on it. Sometimes called the product-market matrix, the Ansoff matrix looks at market penetration and potential future growth. But be careful; customizing models or frameworks too much might confuse people who are familiar with a particular planning process. 3. Gap Planning: A strategy gap is the distance between how a company is currently performing and its desired goal. The following framework will guide you through completion of your basic strategic plan document. Resist the urge to pick a year ending in a 0 or 5 to start your strategic planning process. Additionally, some methods work well together. It has a long-term horizon, explicates the context and rationale for why the regeneration project is … Scenario Model: When used in conjunction with other models, the scenario model can help you identify goals, as well as issues around them, by using scenarios that might arise. 2. 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