A STRATEGIC PLAN : IS defined as " why and how the plan will work "

the complete plan should include some plans such as " strategic plan - operation plan - action plan "

strategic plan should include "

* strategic pillars "vision , mission , goals &objectives"

* some analysis after gathering the information such as " P.E.S.T , SWOT , advantages &disadvantages of the prev years or projects "

* some rules and policies "code of conduct "
* job duties and responsibilities " structure &detailed structure"

* Strategic SWOT matrix

* work flow statement

* then extracting the data to the operation plan and then to the action plan" monitoring plan - communication system - risk plan - .......... "

i wrote before about the difference between vision &mission at " this article " so its the time now to talk about the second step in most strategic plans which is SWOT analysis .

How to Perform a SWOT Analysis

SWOT Analysis is one of the effective analytical tools to evaluate a situation. The situation may be strategic related or capabilities related. SWOT Analysis is often used along with Strategic planning and it forms one of the key critical success factors in a Strategic Planning Process.

There are many ways how a SWOT analysis is used. This article aimed to share how SWOT analysis can be used as an essential tool to Strategic Planning Process .

While detail Analysis is performed, it can become a complex process because it entails several data analysis involves external factors such as "P.E.S.T analysis" Political, Economical, Societal and Technological . Besides, it also examine internal factors such as operational capabilities as compared to the competitors.

To recap, S.W.O.T. is an abbreviation for:

Strengths-Weaknesses-Opportunities-Threats.

It represents a group of four factors which data are collected to reflect each of these four factors. These four factors are categorized into Internal and External Factors.

How to collect relevant data for the S.W.O.T.?

In order to use the SWOT Analysis for the Strategic Planning, you need to understand how to collect the data for the SWOT factors.

Lets start with the Strengths.

How to Identify Strengths Using SWOT Analysis

When looking at your strengths comparing to your competitor you should make a list of all the things you do well.Attributes of the organization that are HELPFUL to achieving the objective. These are the company's core competencies, and include proprietary technology, skills, resources, market position, patents, and others.

strengths { internal helpful factor }

Below is the guideline you can use to identify strengths in your organization:-

* How much experience do you have in your business or industry sector "project by project " ?

* What have been your key successes over the past five years or so?

* What are the advantages of your company over your competitor?
* What are some of the customer benefit you can offer?
* What are some your customer relationship?
* What are some of the offers to customer your can fulfilled?
* What are some of the low cost operation capabilities?
* What are your financial strengths?

How to Identify Weaknesses Using SWOT Matrix Analysis

Similar to the Strengths, the Weaknesses is another internal factor that deals with the weaknesses of the operation. The impact of these weaknesses is more urgent when compared it with the competitors who are ahead of you. Attributes of the organization that are HARMFUL to achieving the objective. Weaknesses are conditions within the company that can lead to poor performance, and can include obsolete equipment, no clear strategy, heavy debt burden, poor product or market image, long product development cycle, weak management, and others.

weaknesses { internal harmful factor }

Below is the guideline you can use to identify weaknesses in your organization:-

* Unhappy customers - why?
* Bad brand perception
* Slow or bureaucratic
* Un-competitive prices or quality
* Disgruntled workforce
* Outdated products
* What are some of the setback with your company or operation
* What are some of the "out-dated" or inefficient equipment?
* What are some of the bad customer experience?
* What are some of the repeated operation failure?
* What are some of the escalated cost components?

How to Identify Opportunities Using SWOT Matrix Analysis

In the area of Opportunities, it is an external factor. When dealing with external factors, you have to be objectives. Keep focus on external factors that has an influence to the market and your sales opportunity and those are not within your control but still have an impact to your projects so you should take care about all external conditions that entails several data analysis involves external factors such as "P.E.S.T analysis" Political, Economical, Societal and Technological

External conditions that are HELPFUL to achieving the objective. Opportunities are outside conditions or circumstances that the organization could turn to its advantage, opportunities is the external factors which will shore your organization up and it may suddenly realizes a growth in broad market interest.

opportunities { external helpful factor }

Below is the guideline you can use to generate the list of opportunities to your organization:-

* What products or services are your competitor not yet offering?

* Can you spot any new, potentially lucrative "profitable" markets?

* Any new entrance to your industry?
* Any form of substitutions or alternatives

* Political or Policy changes that may spur development or influence the economy

* Economic situation that encourage spending.

* Economic downturn in your own targeted market
* Societal stability that may encourage harmony (more spending) or Societal instability

* Technology is another area that could be explored. Are there any new gadgets or software that could be deployed to reduce costs or accelerate your operation?

The idea behind brainstorming opportunities is to take your business, project or life forward. Don't waste the opportunity!

How to Identify Threats Using SWOT Matrix Analysis

In the area of Threats, it is another external factor you must deal with realistically and that the information has great impact to your business. Keep focus on external factors that has an influence to the market and your sales opportunity and those are not within your control.

External conditions that are HARMFUL to achieving the objective. Threats are current or future conditions in the outside environment that may harm the company, and might include serious competitive barriers, changes in governmental or environmental regulations, and others.

Scanning your market, industry or environment for unforeseen threats is an important part of the SWOT process.

threats { external harmful factors }

Below is the guideline you can use to generate the list of threats to your organization:-

* Increasing costs
* New players in the market
* Workforce weaknesses
* Cash flow
* or the same guidelines that used to generate opportunities from P.E.S.T Analysis

By taking threats and potential threats seriously, you will be able to prepare in advance to minimize any impact on your organization or your business.

Once you have completed the data collection for the four factors, you need to study the list to ensure they are clearly understood. You need to keep your list short probably within 10 items. You may make use of some TQM" total quality management" tools to help you. With the finalized list the S.W.O.T. factor then it is ready be used to generate strategies options.

How to Evaluate Your Organization

SWOT analysis provides an efficient way to evaluate the range of factors that influence your operation, and can give you valuable guidance in making decisions about what to do next. It also provides a highly productive way to get your key personnel involved in the management decision-making process.

unfortunately SWOT analysis is not enough to extract data that would help you in action plan because that weaknesses could make the organization can't use the opportunities or threats may affect strengths so the SWOT analysis factors affect on each others ,so the solution is SWOT matrix which provide extra four squares to study the effect of them combined two by two. or they may name it by the solution of SWOT analysis "

after extracting data from SWOT matrix , you must use these data in action plan so this time we will separate them as helpful factors &harmful factors
strengths vs opportunities

the helpful factors to reach the objective or achieving the mission , you should take care of them as they must be used in your action plan .

weaknesses vs threats

the harmful factors to the action plan but you can't avoid as there impact will reflect negatively to you so you must collect them with any extra problem may occur and then put them into the risk plan which include " risk - reason - probability - impact level - risk control "

How to Define Strategy

Creating a Shared View of Objectives

A business's strategy should be evolving and changing to keep pace with environmental, political and economic changes. A key skill for any business consultant working with a top team is the ability to help them clarify and define this strategy.

Opportunities, Threats and Risks

As a starting point, focus on the external factors facing the business or part of the business you are working with ' that is, what are the opportunities, threats and risks to the business.

Strengths, Weaknesses and Gaps

Now move to the internal factors impacting the business. Brainstorm the major internal factors facing the business or part of the business. An internal strength might be the technical skills of your team or your well established sales processes.

Critical Success Factors "CSF"

At this stage, to ensure that the focus is still a strategic one, it is important to address the external threats and opportunities (that is, step 1) when thinking about the CSFs. then think that how should strengths &opportunities be used to achieve the success after less than two or three years

Values

A critical component of a strategy workshop must also address 'how' people will work together, not just what they will work on. Where the CSF's are aligned to the external factors, the Values tend to be aligned to the internal factors (no. 2). These values are what unites top teams during difficult or stressful times.

To do this, brainstorm the following: "in your opinion,

what must we value (believe in) as a business to achieve this success?"

Discuss each value:

What does this mean?

Why is it important?

What does it look like?

how would you role model this to others

then Ask the group,

how do these values match personnel values?

What do we need to do differently to achieve these values?

Key Organisation Design Criteria

As part of a strategy workshop it is important to think through how resources should be organized to exploit opportunities, fight off threats from competitors and make best use of our strengths. Although designing an organization usually requires technical expertise in job design, the responsibility for defining what type of organization we want to create and work within belongs with the top team.

Brainstorm the following question: "in your opinion, what are critical organization design issues re structure, processes, roles, performance management, reporting etc?"

At this stage it is important to think about the ideal future organization and not the existing organisation. Think about the major work processes and how this work should be organized ' eg if we need to be more customer focused should we organize our teams around our major customers and their concerns.

Discuss each criterion: Why? Implications?

Prioritize if needed, identifying the major enablers.

references :

1- businessballs

2- erica olsen

3- O.M.D plan of 4P'15 by " abdel-rahman mohamed "