Matching IT Needs With the Strategic Direction of the Enterprise By Abraham T. 2016 e.c
Introduction Strategic planning is a process that all people undertake in their day-to-day lives. When you wake up in the morning, there is a goal that you set out to achieve. It may be as simple as getting dressed and having something to eat; or it may be more complex, like getting to work on time and accomplishing a set task. Most people understand the importance of goal setting and the satisfaction that comes when set goals are achieved.
For businesses, strategic planning is a more formal process It is the method by which a business can set goals for its future Strategic planning involves conducting environmental analysis in order to understand the internal and external forces that affect the business
Goals and objectives are set for the future of the organisation, and over time the organisation works towards these goals These business goals may be simple (such as updating the database software to the latest version) or more complex (such as: restructuring the organisation to incorporate e-commerce practices).
LEARNING OUTCOMES: At the end of the module the trainee will be able to: evaluate current business strategy evaluate impact of changes develop action plans
Evaluate the current business strategy In this topic you will learn how to analyze the organization’s strategic plan to gain an understanding of the organisational goals. You will also learn to analyze operational practices to identify gaps and opportunities and report to management on the impact of any IT development.
Evaluate the impact of changes In this topic you will review information on current IT systems, compare and document the advantages and disadvantages of legacy and proposed IT systems, and determine the objectives and implications of changes to the IT system.
Develop action plans In this topic you will develop action plans for the proposed changes (taking into consideration the organization’s operating environment) and forward the action plans to management for feedback or approval .
How to study this unit Topics that each contains: reading notes activities references A topic quiz.
Web link http://www.cessnock-ict.net/ica05_content/Dip_Web/ICAP5039B/
1. Evaluate current business strategy What is Strategic Planning?
What is Strategic Planning? Strategic planning is an organizational management activity that is used to set priorities, focus energy and resources, strengthen operations, ensure that employees and other stakeholders are working toward common goals, establish agreement around intended outcomes/results, and assess and adjust the organization's direction in response to a changing environment
It is a disciplined effort that produces fundamental decisions and actions that shape and guide what an organization is, who it serves, what it does, and why it does it, with a focus on the future
What is a Strategic Plan? A strategic plan is a document used to communicate with the organization the organizations goals, the actions needed to achieve those goals and all of the other critical elements developed during the planning exercise.
What is Strategic Management? Is the comprehensive collection of ongoing activities and processes that organizations use to systematically coordinate and align resources and actions with mission, vision and strategy throughout an organization
Strategic management activities transform the static plan into a system that provides strategic performance feedback to decision making and enables the plan to evolve and grow as requirements and other circumstances change.
What Are the Steps in Strategic Planning & Management? There are many different frameworks and methodologies for strategic planning and management While there is no absolute rules regarding the right framework, most follow a similar pattern and have common attributes
Many frameworks cycle through some variation on some very basic phases : analysis or assessment an understanding of the current internal and external environments 2. Strategy formulation a basic organization level strategic plan is documented
3. strategy execution the high level plan is translated into more operational planning and action items, 4. evaluation or sustainment / management phase: ongoing refinement and evaluation of performance, culture, communications, data reporting, and other strategic management issues occurs.
Basics of Strategic Planning The objectives of strategic planning including : understanding the benefits of strategic planning ; understanding the products of strategic planning; and learning the keys to successful planning and implementation.
Why Strategic Planning? Besides the personal satisfaction of taking charge of the organizations future, strategic planning offers at least five compelling reasons for its use:
look into the future Provides better awareness of needs and of the facilities related issues and environment. Helps define the overall mission of the organization and focuses on the objectives. Provides a sense of direction, continuity, and effective staffing and leadership.
provides standards of accountability for people, programs, and allocated resources.
Five Products of Strategic Planning Environmental issues and trends : Needs Survey Mission Statement: General Objectives Strategies The mission statement, general objectives, and strategies are the meat of the plan .
Keys to Successful Implementation The three major keys to successful strategic planning and implementation are : commitment , credibility, and communication .
Organizational Strategic Planning A strategic plan is a plan that maps out specific strategies for achieving organizational results As a management tool, a strategic plan must be developed according to the needs of the organization that it represents
Strategic Planning in Government Organizations The developers of an organization’s strategic plan should take into consideration the following:
The culture of the organization The size of the organization The organization’s stakeholders The organization’s budget The complexity of the organization
General definitions for these organizational elements are as follows:
Vision Statement A Vision Statement outlines what the organization wants to be. It concentrates on the future, and is usually a source of inspiration for all employees within the organization. It provides clear decision- making criteria.
Mission Statement A Mission Statement is a clear and succinct representation of the organization’s purpose . A mission statement is usually general, and represents all sections within the organization.Mission Statements are intermittently reviewed according to how often major changes are made within the organization.
Values Organizational values define the standards that govern the culture of the organization . Without values the employees of the organization will adopt values that may not necessarily align with the values of the organization.
Objectives Objectives are guideposts that define standards of what an organization should accomplish in areas such as customer service, stewardship, safety etc . Managers are able to evaluate performance on a regular basis, based on how well an organization is moving towards its objectives.
Goals Organizational goals define the desired results that an organization hopes to realize and achieve within a specific time frame . Organizational goals should be both long- term and short- term. Most organization’s recommend setting long- term goals first, and then short- term goals.
Critical success factors Critical success factors are key organizational factors that should be addressed if the organization is to achieve its vision and mission.
Critical success factors might include: Achieving credibility as an organization Maintaining product quality standards Finding needed resources Staying in touch with customer needs Establishing internal and external communication standards Establishing cost-effective manufacturing and operations Establishing a continuous improvement policy for reviewing and evaluating progress
Development of a system that documents processes so others can be trained Achieving buy-in from all levels of the company, which helps understanding and acceptance through participation Establishing a financial plan that ensures enough cash flow and sales revenue to grow the company effectively Developing a plan to deal with downturns should they occur Employing systems and administrative policies to enhance employees do their jobs effectively
Strategies Organizational strategies are created by evaluation of decision within the organization that will enable long- term objectives to be achieved. Strategies may define the resources that are needed to implement the organizational objectives.
Programs Strategic programs represent the final element of strategic planning . The programs are basically projects that implement the key strategies of the plan . Strategic programs should identify resources, time- scales, budgets and targets that must be put in place to implement the strategies.
Reporting the impact of IT developments A report is defined as "a written or spoken description of a situation, event, etc reporting is the process of compiling and organizing your data into visual, written, or spoken summaries. reports may be written reports, or presented verbally to a group of people, management, a client
There are different types of reports organisation policies and procedures feasibility report evaluation report recommendation report technical report research report business plans technical specifications user manuals strategic plans test plans user documentation progress report
Develop action plan An action plan is a document that lists what steps must be taken to achieve a specific goal. It breaks down the goal into actionable steps that can be easily followed and tracked. The key steps of an action plan Step 1:define your goal.get clear on what you want to achieve with your project Step 2:list tasks. Once you have your goal list the tasks and activities you must complete to achieve it