{"id":4697,"date":"2019-05-07T15:37:24","date_gmt":"2019-05-07T19:37:24","guid":{"rendered":"http:\/\/localhost\/osborne\/?p=4697"},"modified":"2021-12-22T17:47:33","modified_gmt":"2021-12-22T22:47:33","slug":"strategic-planning-in-a-changing-environment","status":"publish","type":"post","link":"https:\/\/www.osborne-group.com\/fr\/strategic-planning-in-a-changing-environment\/","title":{"rendered":"Strategic Planning in a Changing Environment"},"content":{"rendered":"

For\nOntario not-for-profit organizations, it\u2019s starting to feel like there are new\nchanges to learn about every day. The new provincial government continues to roll\nout change after change which has created an understandable sense of urgency.\nAs a result, The Osborne Group is receiving an increasing number of calls for\nstrategic planning assistance to help organizations respond appropriately. <\/p>\n\n\n\n

We\nare often asked what the best strategic planning methodology is to respond to\nthe changes organizations are facing. Unfortunately, there are no simple\nanswers. Each organization\u2019s circumstances are different and the strategic\nplanning methodology should be tailored to those circumstances. To help get you\nstarted, I\u2019m outlining five strategic planning models that should be considered.\n<\/p>\n\n\n\n

1. Balanced Scorecard<\/strong><\/h4>\n\n\n\n

The Balanced Scorecard<\/strong><\/a> (BSC) is a strategy performance\nmanagement<\/a> framework\ncreated by Drs. Robert Kaplan and David Norton in 1992. The BSC creates\nStrategic Directions, Objectives, Measures and Targets or Initiatives related\nto four key Perspectives of an organization. They include Finances, Internal Operations, Clients and Innovation and Learning<\/strong>.\nThe Objectives <\/strong>are high-level\norganizational goals; the Measures<\/strong> assist an organization understand if its\naccomplishing its objective strategically; the Targets or<\/strong> Initiatives<\/strong> are key action tasks that help an\norganization achieve its objectives.<\/p>\n\n\n\n

2. Blue Ocean Strategy<\/strong><\/h4>\n\n\n\n

The Blue Ocean Strategy<\/strong> is\na marketing theory developed by W. Chan Kim<\/a> and\nRen\u00e9e Mauborgne. These strategic moves create a leap in value for the company,\nits buyers, and its employees while unlocking new demand and making the\ncompetition irrelevant. The Blue\nOcean Strategy concept refers to the \u201cuncontested market space\u201d (e.g. a blue\nocean) that an organization can expand into with little competition versus the\n\u201cRed Ocean\u201d or market space that is either developed or saturated. If your\norganization is able to identify and develop create a \u201cBlue Ocean\u201d space it can\nsignificantly increase its value.<\/p>\n\n\n\n

3. Porter\u2019s Five Forces<\/strong><\/h4>\n\n\n\n

Porter’s Five Forces Framework<\/strong> is\na tool for analyzing competition of a business. It draws from industrial\norganization (IO) economics<\/a> to derive five forces that determine\nthe competitive intensity and, therefore, the attractiveness (or lack of it) of\nan industry in terms of its profitability. An “unattractive” industry\nis one in which the effect of these five forces reduces overall profitability.\nThe most unattractive industry would be one approaching “pure\ncompetition”, in which available profits for all firms are driven to normal\nprofit levels<\/a>. The five forces\nare as follows:<\/p>\n\n\n\n

  1. The threat of entry.<\/strong> Could other organizations enter the marketplace easily to compete with your organization?<\/li>
  2. The threat of substitute products or services.<\/strong> Can consumers easily replace your service or product with another organization\u2019s?<\/li>
  3. The bargaining power of customers.<\/strong> Could individual consumers pressure your organization to lower costs?<\/li>
  4. The bargaining power of suppliers.<\/strong> Could other organizations pressure your organization to lower your costs?<\/li>
  5. The competitive rivalry among existing firms.<\/strong> Are your current competitors poised for major growth, are they poised to attract consumers away from your organization? <\/li><\/ol>\n\n\n\n

    4. OKRs\n(Objectives and Key Results)<\/strong><\/h4>\n\n\n\n

    Objectives\nand Key Results<\/strong> (OKR<\/strong>)\nis a framework for defining and tracking objectives and their outcomes. The\ndevelopment of OKRs was developed by Andy Grove<\/a>.\nThe key result has to be measurable. <\/p>\n\n\n\n

    OKRs is the strategic planning\nmodel of choice for Google, Intel, Spotify, Twitter, LinkedIn, and many other\nSilicon Valley successes. It is one of the more straightforward strategic\nplanning tools and is designed to create alignment and engagement around\nmeasurable goals by clearly defining:<\/p>\n\n\n\n

    Objectives:<\/strong> What you want to achieve. Choose three to\nfive objectives that are brief, inspiring, and time-bound.<\/p>\n\n\n\n

    Key Results:<\/strong> How you\u2019ll measure progress toward your achievements.\nSet three to five key results (they must be quantitative) per objective.<\/p>\n\n\n\n

    The OKR framework is effective\nbecause goals are continually set, tracked, and re-evaluated so organizations\ncan quickly adapt when needed. This is a fast-paced, iterative approach that\nflips the traditional top-down strategic models.<\/p>\n\n\n\n

    5. Hoshin\nPlanning<\/strong><\/h4>\n\n\n\n

    Hoshin (Kanri) Planning<\/strong> requires developing a strategic vision\nin order to succeed. Strategic objectives need to be defined and goals written\nfor periods of a one to five years. Once the goals are completed, the team can\nfocus on yearly objectives. \u201cHoshin Kanri is a top-down approach, with the\ngoals being mandated by management and the implementation being performed by\nemployees. As a result, systems need to be in place to ensure that objectives\nfrom senior management are effectively communicated all the way down the chain of command<\/a>.\n<\/p>\n\n\n\n

    The Hoshin\nPlanning approach<\/a> aligns\nan organizations strategic goals with its projects and tasks to ensure that\nefforts are coordinated. This strategic management model is less focused on\nmeasures and more on goals and initiatives.<\/p>\n\n\n\n

    The four\nmost critical steps in Hoshin Planning are:<\/p>\n\n\n\n