STRATEGIC PLANNING

This is a presentation to co-operatives on strategic planning. The process of coming up with a strategic plan is as important as the final document. It is critical that co-operatives participate fully in drafting their own strategic plans and coming up with final document that they own and can implement.
Strategic plans are critical for co-operatives to prioritize what they want to achieve and within what time period.

1. STARTEGIC PLANNING BY STEPHEN KIRITU MWANGI CO-OPERATIVE OFFICER

2. Meaning of Strategic Planning Strategic planning is the process of formulating an idea to achieve a long term objective. Strategic planning is an organization's process of defining its strategy , or direction, and making decisions on allocating its resources to pursue this strategy. 

3. Purpose of Strategic Planning Strategic Planning allows an organization to: Set priorities; Focus energy and resources towards a common goal; Strengthen operations; Establish agreement around intended outcomes/results; Manage and reduce business risks; and Assess and adjust the organization’s direction in response to a changing environment.

4. Strategy Formulation Strategy formulation refers to the  process of choosing the most appropriate course of action for  the realization of organizational goals and objectives and thereby achieving the organizational vision. Strategy – a plan of action designed to achieve a long-term or overall aim.

5. Strategy Formulation The basic guide in the development of a strategic plan hinges on satisfactory answers to: What? Who? Where? How & When?

6. Strategic Formulation To answer these questions we consider: Resources (human as well as infrastructural resources) Performance target & time-scale Budget Partners (Who are your partners? What are the Co-operative obligations to the partners? What is the role of partners in the Co-operative achieving its objectives? What do we have to offer the partners?)

7. Mission statement A mission statement is a short statement of why an organization exists , what its overall goal is, identifying the goal of its operations: what kind of product or service it provides, its primary customers or market, and its geographical region of operation.

8. Mission statement What is the Co-operative really doing? What activities are you currently engaged in? Which other activities do you hope to engage in the next 3-5 years? What will the Co-operative offer and what will make it special/competitive?

9. Mission statement Example KCB- To drive efficiency whilst growing market share in order to be preferred financial solutions provider in Africa with global reach. Kenya Power- Powering people for better lives by innovatively securing business sustainability. Arthi Sacco- To provide exceptional services to attract and retain savings and offer credit for the improvement of the economic lives of members

10. Vision Statement A vision statement describes  what a company desires to achieve in the long-run , generally in a time frame of five to ten years, or sometimes even longer. A vision statement is an inspirational statement of an idealistic emotional future of a company or group.

11. Vision Statement Examples KCB-To be the preferred financial solutions provider in Africa with global reach. Kenya Power- Energy solutions provider of choice. Arthi Sacco- To be the leading Sacco in serving members timely and efficiently

12. Values What are the Co-operative values? What are the standards governing the Co-operative? What is the relationship with the community, customers, suppliers, employees and stakeholders/partners?

13. Values Example - Kenya Power: Core Values We put our customers first as they matter most We work together as one team to achieve our goals We are passionate about powering the nation We believe in integrity and delivering on our promises We strive for excellence in all that we do We are accountable to our customers and stakeholders

14. Achievements to Date Since inception, what are the major achievements? What is it that the Co-operative hopes to achieve? What is stopping the Co-operative from achieving its goals? What would be the benefit to the members/group and community if all the goals were achieved?

15. Goals and Objectives Goals are the outcomes you intend to achieve, whereas objectives are the specific actions and measurable steps that you need to take to achieve a goal. While goals create a vision with a wide range, objectives  focus on the individual, achievable outcomes . Objectives are the concrete deliverables that make the goal come to life. Progress towards them helps measure advancement to reaching the larger end goal.

16. Goals What do you hope to achieve in the next 3-5 years in: Sales Market share Finances Conservation Employment and profits

17. Objectives What is a SMART objective? Specific Measurable Attainable Realistic Time-phased

18. Technical Capacity What skills do you require to achieve your objectives? What specialized equipment or facilities are essential in achieving your objectives? How much of what is required do you have? How do you hope to achieve the deficit?

19. SWOT Analysis Strengths Weaknesses Opportunities Threats Focus on internal & external aspects and address the human resources, financial resources and Infrastructure. Include in the SWOT analysis issues of Policy, Economy, Social, Technology, Environment and Legal ( PESTEL ).

20. Stakeholders Analysis A stakeholder is any person, organization, social group, or society at large that has a stake in the business. Thus, stakeholders can be internal or external to the business. Stakeholder analysis is the process of identifying the individuals or groups that are likely to affect or be affected by a proposed action , and sorting them according to their impact on the action and the impact the action will have on them. 

21. Outline of the strategic plan: Executive Summary Introduction, Background Information Vision, Mission and Objectives of the Co-operative Organizational and Administrative Structure

22. Outline of the strategic plan: Conduct a detailed SWOT, PESTEL and Stakeholders Analysis Determine the necessary factors that will help mitigate the identified weaknesses and threats in order to achieve better leverage on the strengths and opportunities Defining the Strategies Determine necessary strategic interventions so as to identify activities, time frame and necessary resources (both human and financial)

23. Outline of the strategic plan: Prepare the Budget and determine sourcing for financing the Co-operative’s Budget Financing Implementation of the Strategic Plan – Allocate resources Implementation, Monitoring and Evaluation Implementation Matrix Annexes / Appendices

24. ACTIVITY-MISSION, VISION AND VALUES