Strategic Planning and Ten-Ten Planning
This chapter explains the nature of planning and the importance of analysis in creating differentiated products or services or higher levels of efficiency. Understanding the nature of strategic planning and the types of analysis used during the strategic planning process are important for operation managers.
The Planning Process
Planning can be accomplished in a
variety of ways. Figure 8.1 "The Planning Process (Adapted from May)"
presents a typical model of the strategic planning process. The mantra is an often-repeated phrase that provides the
basis for the existence of the company. It is a slogan, a watchword, a
byword, or a motto that breathes life into the firm's existence. The
mantra is not a replacement for the mission statement. The mission
statement is an overall view of the business at an abstract level. It
describes what the company does and why it exists and how it satisfies
customer needs. The mission statement can also include a statement
reflecting whether the company will focus on product differentiation and
niche markets, focus on being price-competitive, or focus on both. The
mantra and the mission are rarely static but ever-changing and emerging
throughout the life of the firm.
The essence of the planning
process consists of looking-inside and looking-outside analysis.
Analysis involves both introspection and extrospection. The internal and
external organization environments are examined using a number of
analytical approaches, several of which are included in Table 8.1
"Orientations of Strategic Planning Approaches". These techniques will
be covered in the next section. There is a lot of confusion related to
identifying goals and objectives. Many view the terms goals and
objectives to be interchangeable. Goals are more abstract and broader
than objectives. Objectives are generally more detailed. The important
point that will be discussed in the next chapter is to identify the
goals and objectives that will help support the mantra, the mission, and
the value proposition over a certain time frame. The tactics are the
activities the organization will use over the next 3 months to a year to
reach their goals and objectives. The tactics can include timetables
and schedules related to the goals and objectives. The key to the model
in Figure 8.1 "The Planning Process " is that this is
not a linear process. Sometimes a new mission emerges after analysis has
been completed. Mission statements that change, reflect an organization
that can adapt to dynamic environments.
Figure 8.1 The Planning Proce
Planning can be accomplished in a
variety of ways. Figure 8.1 "The Planning Process (Adapted from May)"
presents a typical model of the strategic planning process. The mantra is an often-repeated phrase that provides the
basis for the existence of the company. It is a slogan, a watchword, a
byword, or a motto that breathes life into the firm's existence. The
mantra is not a replacement for the mission statement. The mission
statement is an overall view of the business at an abstract level. It
describes what the company does and why it exists and how it satisfies
customer needs. The mission statement can also include a statement
reflecting whether the company will focus on product differentiation and
niche markets, focus on being price-competitive, or focus on both. The
mantra and the mission are rarely static but ever-changing and emerging
throughout the life of the firm.
The essence of the planning
process consists of looking-inside and looking-outside analysis.
Analysis involves both introspection and extrospection. The internal and
external organization environments are examined using a number of
analytical approaches, several of which are included in Table 8.1
"Orientations of Strategic Planning Approaches". These techniques will
be covered in the next section. There is a lot of confusion related to
identifying goals and objectives. Many view the terms goals and
objectives to be interchangeable. Goals are more abstract and broader
than objectives. Objectives are generally more detailed. The important
point that will be discussed in the next chapter is to identify the
goals and objectives that will help support the mantra, the mission, and
the value proposition over a certain time frame. The tactics are the
activities the organization will use over the next 3 months to a year to
reach their goals and objectives. The tactics can include timetables
and schedules related to the goals and objectives. The key to the model
in Figure 8.1 "The Planning Process " is that this is
not a linear process. Sometimes a new mission emerges after analysis has
been completed. Mission statements that change, reflect an organization
that can adapt to dynamic environments.
Figure 8.1 The Planning Process
Table 8.1 Orientations of Strategic Planning Approaches
| Inter organizational focus | External competitive environments focus | Time to execute | |
|---|---|---|---|
| Value and supply chain analysis | High | Low | Moderate |
| Porter's five force model | Low | High | Long |
| Resource-based framework | High | Moderate | Long |
| Strategy maps | High | Moderate | Long |
| Creating Blue Ocean markets using the strategy canvas | Moderate to high | Moderate to high | Short |
| SWOT analysis | Moderate to high | Moderate to high | Short |
We will revisit the definitions in the next chapter and illustrate how the planning process can be streamlined and made more efficient and facilitate the development of business plans in a very short time span using the Ten–Ten planning process.