Strategic Planning

Module 5
LIS 580: Spring 2006
Instructor- Michael Crandall
April 11, 2006 LIS580- Spring 2006 2
Roadmap
The strategic management process
Mission and vision statements
Analyzing strategic drivers and core
competencies
SWOT analysis
Scenario planning
April 11, 2006 LIS580- Spring 2006 3
Checklist 5.1
The Strategic Management Process
Define the business and its mission.
Perform external and internal audits.
Translate the mission into strategic
goals.
Generate and select strategies to
reach strategic goals.
Implement the strategy.
Evaluate performance.
G.Dessler, 2003
April 11, 2006 LIS580- Spring 2006 4
A Comprehensive Strategic-
Management Model
FIGURE 51 Source: Adapted from Fred David, Strategic Management (Upper Saddle River, NJ: Prentice-Hall, 2001), p. 77.
G.Dessler, 2003
April 11, 2006 LIS580- Spring 2006 5
Vision and Mission
A vision statement tells people
Where we want to go
What we want to become
What we want to accomplish
Why it is important
And a mission expresses the organizations:
Purpose - the needs we exist to address
Business - what are we doing to address these
Values - what principles or beliefs guide our work

April 11, 2006 LIS580- Spring 2006 6
Examples of Mission Statements
FIGURE 52
APEX ELEVATOR
To provide a high-reliability, error-free method for moving people and
products up, down, and sideways within a building.
UNITED TELEPHONE CORPORATION OF DADE
To provide information services in local-exchange and exchange-access
markets within its franchised area, as well as cellular phone and paging
services.
JOSEPHSON DRUG COMPANY, INC.
To provide people with longer lives and higher-quality lives by applying
research efforts to develop new or improved drugs and health-care
products.
GRAY COMPUTER, INC.
To transform how educators work by providing innovative and easy-to-use
multimedia-based computer systems.
G.Dessler, 2003
April 11, 2006 LIS580- Spring 2006 7
FIGURE 53
Strategies in Brief
Source: Arit Gadiesh and James Gilbert, Frontline Action, Harvard Business Review, May 2001, p. 74.
COMPANY STRATEGIC PRINCIPLE
America Online Consumer connectivity firstanytime, anywhere
Dell Be direct
eBay Focus on trading communities
General Electric Be number one or number two in every
industry in which we compete, or get out
Southwest Airlines Meet customers short-haul travel needs at fares
competitive with the cost of automobile travel
Vanguard Unmatchable value for the investor-owner
Wal-Mart Low prices, every day
G.Dessler, 2003
April 11, 2006 LIS580- Spring 2006 8
Checklist 5.2
How to Test the Quality of Your
Strategy
Does your strategy fit with whats going on in
the environment?
Does your strategy exploit your key resources?
Will competitors have difficulty keeping up with
you?
Are the elements of your strategy internally
consistent?
Do you have enough resources to pursue this
strategy?
Can your strategy be implemented?
G.Dessler, 2003
April 11, 2006 LIS580- Spring 2006 9
FIGURE 54
Relationships Among Strategies
in Multiple-Business Firms
G.Dessler, 2003
April 11, 2006 LIS580- Spring 2006 10
Strategy Types
Corporate
Concentration
Vertical integration
Diversification
Status quo
Investment reduction
Strategic alliances/joint ventures
Competitive
Cost leadership
Differentiation
Focus

April 11, 2006 LIS580- Spring 2006 11
FIGURE 55
Forces Driving Industry Competition
Source: Reprinted with the permission of The Free Press, a division of Simon & Schuster from Competitive Strategy:
Techniques for Analyzing Industries and Competitors by Michael E. Porter. Copyright 1980 by The Free Press. G.Dessler, 2003
April 11, 2006 LIS580- Spring 2006 12
FIGURE 56
How the Internet Influences Industry
Structure
Source: Adapted from
Michael Porter,
Strategy and the
Internet, Harvard
Business Review,
March 2001, p. 67.
G.Dessler, 2003
April 11, 2006 LIS580- Spring 2006 13
FIGURE 77
Examples of a Companys Strengths,
Weaknesses, Opportunities, and
Threats
G.Dessler, 2003
April 11, 2006 LIS580- Spring 2006 14
FIGURE 58
Worksheet for Environmental Scanning
G.Dessler, 2003
April 11, 2006 LIS580- Spring 2006 15
Checklist 5.3
How to Benchmark
Focus on a specific problem and define it
carefully
Use employees who will actually
implement changes to identify the best-
practices companies and to conduct on-
site studies.
Be willing to share information with others.
Avoid sensitive issues such as pricing, and
dont look for new product information.
Keep information you receive confidential.
G.Dessler, 2003
April 11, 2006 LIS580- Spring 2006 16
FIGURE 59
Cineplex Odeon TOWS Matrix
Source: Fred
David, Strategic
Management
(Upper Saddle
River, NJ:
Prentice-Hall,
2001), p. 207.
G.Dessler, 2003
April 11, 2006 LIS580- Spring 2006 17
FIGURE 510
BCG Matrix
G.Dessler, 2003
April 11, 2006 LIS580- Spring 2006 18
Checklist 5.4
Scenario Planning Principles
Scenarios have value only to the extent that
they inform decision makers and influence
decision making.
Scenarios add value to decision making only
when managers and others use them to
systematically shape questions about the
present and the future, and to guide how to go
about answering them.
In each step of developing scenarios, the
emphasis must be on identifying, challenging,
and refining the substance of managers
mindsets and knowledge.
G.Dessler, 2003
April 11, 2006 LIS580- Spring 2006 19
Checklist 5.4 (contd)
Scenario Planning Principles
Alternative projections about a given future
must challenge managers current mental
models by creating tension among ideas,
hypotheses, perspectives, and assumptions.
The dialogue and discussion spawned by the
consideration of alternative futures should
directly affect managers knowledge.
Scenarios should include enough indicators
so that managers can track how the future is
actually evolving so that the learning and
adaptations stimulated by the scenarios are
continuous.
G.Dessler, 2003
April 11, 2006 LIS580- Spring 2006 20
FIGURE 511
Southwest Airlines Activity System
Source: Reprinted by permission of Harvard Business Review. From What Is Strategy? by Michael E. Porter,
NovemberDecember 1996. Copyright 1996 by the President and Fellows of Harvard College; all rights reserved. G.Dessler, 2003
April 11, 2006 LIS580- Spring 2006 21
Strategic Fit vs. Stretch
Southwest follows Michael Porters view
that functional strategies should support
corporate and competitive strategies
Hamel and Prahalad argue that
leveraging resources is more important
for long-term success
Core competencies define key strengths
of the organization, and provide the
focus for strategic choices
April 11, 2006 LIS580- Spring 2006 22
Cleveland Public Library
How did the library go about building their
plan?
Did they effectively engage the stakeholders
in the process?
What kinds of outside help did they seek in
formulating their plan?
How did the concrete steps they defined
relate to their mission and vision statements?
Were there any measurements of success
built into the plan?
April 11, 2006 LIS580- Spring 2006 23
Next Time
Guest lecture
Mike Eisenberg, Dean Emeritus, the Information
School
Read the iSchool Strategic Plan Mike wrote
in 1998, and think of it in the context of the
discussions weve been having over the past
several days
Come prepared with questions that use class
readings and discussion to examine this plan
A great chance to hear from someone whos gone
through a full planning cycle