Marge Mohoric Ph.D.The Evergreen State College

Strategic Planning Process

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Overview of Strategic PlanningGuiding Principles

• Vision• Mission• Goals• Tactics

Performance Measures• Objective measurements of Goal performance

Priority Goals• Key areas of focus for next 1 – 5 years• Big Three

Action Plans• Management programs to achieve the Goals• 6 month – 12 month timeframe

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Guiding Principles Vision Mission Goals

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Definition of Vision A vision is a guiding image of

success. You will never be greater than the vision that guides you. The vision statement should require the organization's members to stretch their expectations, aspirations, and performance.

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Sample Vision Statements Komatsu

Surround Caterpillar. Disneyland

To be the happiest place on earth. WA State Employees Credit Union

Become the best source of financial solutions for every member and potential member.

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Definition of Mission A mission statement communicates the

essence of your organization. Two basic components: Purpose Statement

Clearly states why your organization exists

Business Statement Outlines the business (activities or

programs) your organization chooses in order to pursue its purpose.

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Sample Mission Statement Nike: To bring inspiration and

innovation to every athlete in the world. Starbucks: Establish Starbucks as the

premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while we grow.

“Business is the only mechanism on the planet today powerful enough to produce the changes necessary to reverse global environmental and social degradation.” Paul Hawken

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Strategic Plan Goals Key areas of focus for

next 1 – 5 years Return on Assets Goal Cumulative Profits Goal Market Share Goal Stock Price Goal

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Performance Measures Objective

measurements of success

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Priority GoalsWith Performance Measures

GOAL: Increase Return on Assets Performance Measures

Increase ROA to ____ by _________

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Tactics Research and

Development Marketing Production Finance Human Resources

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Tactics--Action Plans

Action Due Date

Lead

New product introduction

Product repositioning

Research and Development

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SWOT Analysis Strengths: internal resources and

capabilities that can be used as a basis for developing a competitive advantage.

Weaknesses: internal weaknesses (attributes on your firm)

Opportunities: external opportunities for profit and growth.

Threats: external changes in the environment

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SWOT Matrix S-O strategies pursue opportunities that

are a good fit to the company’s strengths W-O strategies overcome weaknesses to

pursue opportunities S-T strategies identify ways that the firm

can use its strengths to reduce its vulnerability to external threats

W-T strategies establish a defensive plan to prevent the firm’s weaknesses from making it highly susceptible to external threats

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Strengths—Wal-Mart (brainstorm 10-23-06)

Size Competitiveness Low prices Leverage Smiley face on the blue vest

Brand loyalty Location

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Weaknesses—Wal-Mart Bad customer service Bad reputation Bad ethics Poor employee treatment Harmful to their environment Poor relationships with

suppliers/partners Lack of consistency between stores Poor quality Big parking lots

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Opportunities—Wal-Mart Foreign markets Outsourcing Martha Stewart’s imprisonment Compulsiveness New technology Better wages Health care Upscale market Day care

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Threats—Wal-Mart Gov’t regulation Evergreen Bad press Target Public awareness Thieving employees Market saturation

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Strengths—Google(brainstorm 10-23-06)

Innovation Patent on their algorithms Size—large Youthful culture User-friendly Competitiveness Room to grow Cash

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Weaknesses-Google Lack of good people skills Micro-managing Vulnerability to bad press (internal

and external) Fad Inexperienced Technology shortfalls

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Opportunities-Google Foreign markets Mergers/acquisitions Expanding to other media (e.g.

video search) Diversification (e.g. Google maps) Joint ventures

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Threats-Google Yahoo Microsoft Black hat practices Netscape Copyright infringement Click fraud Patriot Act Gov’t regulations Patent coming up for renewal Public perception