Strategic Management

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AGENDA “IN THE NAME OF ALLAH, THE MOST BENEFICIAL AND MERCIFUL” In this presentation we will be dealing with: 1: Concepts of Strategic Management 2: Stages of Strategic Management 3: Marvin’s 14 Management Processes 4: Facilities in Strategic Management

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Strategic Management Strategic management involves deciding what is important for the long-range success of your business & focusing on it. Strategic management asks, “How should I position my business to meet management and business goals?” Strategic management involves the “big picture” of your business.  Strategic management involves planning, analyzing and implementing a business strategy.

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Strategic management is most effective if you can step back far enough and say “all things are possible.” Strategic management is matching business resources to market opportunities. Strategic management is based on the premise that “all businesses are not the same.” Strategic management involves assessing the strengths and weaknesses of your business. Strategic Management

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Strategic management involves looking into the future rather than dwelling on the past. Strategic thinking involves assessing how decisions made today will affect my business in the future. Strategic management is most useful for unique products, for niche, specialty or differentiated product markets. A strategic plan is a “living” document that changes as your goals and resources evolve. Strategic Management

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3: Evaluation Strategic Measurement 1: Formulation Strategic Planning 2: Implementation Strategic Management Stages of a Strategic Plan

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We will be checking out: Long-range Planning Vs Strategic Planning Types of Strategic Planning 3 Basic questions 4 Strategic Planning Some Facts & Some Misconceptions Lets deal with each, one by one… Formulation Strategic Planning Stages of a Strategic Plan Stage: 1

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Stage 1 – Strategic Planning Formal "strategic planning", is a top-down, proactive, vision-driven process. “It is anticipatory decision-making, i.e.; the process of deciding . . . before action is required." STRATEGIC PLANNING It is used to develop and maintain an organization's competitive future value. LONG-RANGE PLANNING The “Long-range Planning”, is a bottom-up, reactive, historical data-driven process. “It is projection of historical data into the future using some arbitrary assumptions for projectors.” It is inherently based on the past and so, does not develop an organization's future value.

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Stage 1 – Strategic Planning Types of Strategic Planning 1: INTUITIVE-ANTICIPATORY PLANNING Generally it is done in the brain of one person. It may or may not, but often does not, result in a written set of plans. It generally has a comparatively short time horizon and reaction time. It is based on experience, the 'gut' feel, the judgment, and the reflective thinking of a manager." 2: SYSTEMATIC STRATEGIC PLANNING This is characterized by a set of procedures and processes. It involves participation by numerous resources and stakeholders, and it is research driven. It is documented and leaves evidence that can measure the plan's progress and effectiveness. STRATEGIC PLANNING

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Stage 1 – Strategic Planning You need to conduct: SWOT Analysis GAP Analysis What’s the environment? Where are you going? You need to: Evaluate & Select a Business Model Allocate Resources How do you get there? You need to develop: A Mission Statement Specific Goals and Objectives

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Stage 1 – Strategic Planning The strategic planning process is a linear & singular event. It happens, and then we forget about it for a while. The strategic planning process is a cyclical & ongoing process. It should be continually reviewed and dynamically modified to respond to changing environment. “SOME FACTS & SOME MISCONCEPTIONS”

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STRATEGIC PLANNING Stage 1 – Strategic Planning

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A Support Component- It represents the method of controlled implementation of the strategic plan. A Proactive Component- It involves a shift from crisis management to a proactive consideration of the future. A values-driven Process- The decisions are made w.r.t the values, philosophies, principles & directions set forth in the strategic plan. A Flexible Process- It responds to market events, stakeholder perception, and results of the overall process. Stages of a Strategic Plan Stage: 2 Implementation Strategic Management

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The measures should: Involve only the vital few key variables. Be linked to the success factors. Be a mix of past, present, and future. Be based on the needs of stakeholders. Start at the top and flow down to all levels. Be changed as the environment and your strategy changes. Have targets / goals set, based on research rather than arbitrary numbers. Evaluation Strategic Measurement Stages of a Strategic Plan Stage: 3

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1: Setting Objectives 2: Planning Strategy 3: Establishing Goals 4: Generating Policies 5: Forming a Philosophy 6: Developing Procedures 7: Providing Control Information 8: Planning Organizational structure 9: Forming Operational Plans 10: Activating People 11: Providing Capital 12: Setting Standards 13: Providing Facilities 14: Providing Personnel Some Management Processes

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Marvin’s 14 Management Processes Deciding on the business in which the company or division should engage. Deciding on fundamentals that shall guide the business, such as continuous growth. An objective is typically enduring and timeless.

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Marvin’s 14 Management Processes Developing concepts, ideas & plans for achieving objectives successfully. Establishing plans for meeting and beating competition. Strategic planning is part of the total planning process that includes management and operational planning.

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Marvin’s 14 Management Processes Deciding on achievement targets that are: Shorter in time range. Narrower in scope. Designed as specific sub-objectives in making operational plans for carrying out strategy.

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Marvin’s 14 Management Processes Establishing the beliefs, values, attitudes, and unwritten guidelines. This adds up to "the way we do things around here." Also called the “Culture” of the organization.

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Marvin’s 14 Management Processes Deciding on plans of action to guide the performance of all major activities in carrying out the strategy. This is done while keeping in mind the company’s philosophy.

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Marvin’s 14 Management Processes Developing the plan of organization; The "harness" that helps people pull together in performing activities in accordance with strategy, philosophy, and policies. The organizational structure influences the effectiveness of plan execution.

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Marvin’s 14 Management Processes Recruiting, selecting, and developing people. Keeping in mind to include an adequate proportion of high-caliber talent. To fill the positions provided for in the organization’s plan.

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Marvin’s 14 Management Processes Determining and prescribing how all important and recurrent activities shall be carried out. Procedures are sequential series of interrelated and interdependent steps that can be used in solving well-defined problems i.e. programmed decision making.

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Marvin’s 14 Management Processes Providing the plant, equipment, and other physical facilities required to carry on the business. Adequate and controlled allocation of the factors of production is essential for the success of a business.

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Marvin’s 14 Management Processes Making sure that the business has sufficient money and credit needed for physical facilities and working capital. Again adequate and controlled allocation is essential for the success of the business.

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Marvin’s 14 Management Processes Establishing measures of performance that will best enable the business to achieve its long-term objectives successfully. Actual performance is compared with the standards set, and in case of any deviation, corrective action is taken.

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Marvin’s 14 Management Processes Forming plans governing activities & use of resources which, if carried out in accordance with strategy, policies, procedures & standards, enable people to achieve particular goals. These are phases of the total planning process that includes strategic planning.

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Marvin’s 14 Management Processes Supplying facts and figures to help people follow the strategy, policies, procedures, and programs; To keep alert to forces at work inside and outside the business; To measure their own performance against established plans and standards.

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Marvin’s 14 Management Processes Commanding and motivating people up and down the line to act in accordance with philosophy, policies, procedures, and standards in carrying out the plans of the company. Motivated people bring higher results in the form of improvement in quality and ultimately productivity as well.

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Facilities Planning & Management Facilities actually act as the linking bridge between Strategic Planning & Organizational Value. Facilities planning and management represents the embodiment of the organization's strategic plan. Facilities Planning is a form of “Gap Analysis” that translates the Strategic Plan into Facilities Initiatives/Projects that can be measured against the Strategic Plan….

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Current Facilities Information Future Facilities Information Historical Facilities Information 1 3 2 The following CHART shows how a “Strategic Planning Process” is organized with a “Facilities Strategic Management Process”.… The Current & Historical Facilities Information is derived from computer-aided facilities management systems while the Future Facilities Information comes directly from your facilities’ users & customers. Source of Facilities Information

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ANNUAL REVIEW & BENCHMARK

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Facilities Planning & Management SALIENT FEATURES

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Brown, M.G. (1996). Keeping Score: Using the Right Metrics to Drive World-Class Performance. New York: Productivity Inc. Drucker, P.F. (1999). Management Challenges for the 21st Century. New York: Harper Collins. Goodstein, L., Nolan, T., Pfeiffer, J.W. (1993). Applied Strategic Planning: How to Develop a Plan That Really Works.

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Jensen, B. (2000). Simplicity -- The New Competitive Advantage. Cambridge, Mass.: Perseus Publishing. Kaplan, R.S., & Norton, D.P. (1992, Jan-Feb). "The Balanced Scorecard -- Measures That Drive Performance." Harvard Business Review, 71-79. Mintzberg, H., Ahlstrand, B., Lampel, J. (1998). Strategy Safari. New York: The Free Press.

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Niven, P.R. (2002). Balanced Scorecard: Step-By-Step. New York: John Wiley & Sons Inc. Porter, M.E. (2001, March). "Strategy and the Internet." Harvard Business Review, 62-78. Steiner, G.A. (1979). Strategic Planning: A Step-By-Step Guide. New York: The Free Press.

Summary: A Detailed Overview of the Basic Concept of Strategic Management

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