Strat Planning Com

STRATEGIC PLANNING
Managing Strategically
STRATEGIC PLANNING
Prepared by the
Texas Workforce Commission
Training and Development Department
Louis LeDoux, Department Director

Richard Guilbeau, Training Manager
Training and Development Department Curriculum Writer

Saundra Kirk
Training and Development Department Editor

Nancy Baker
STRATEGIC PLANNING
Table of Contents
TRAINING PURPOSE AND OBJECTIVES 1
SECTION ONE - INTRODUCTION 2
Managing Strategically……………………………………………….. 2
Compliance……………………………………………………………. 3
Texas Strategic Planning Process……………………………………... 3
Purposes of the Strategic Planning And Budgeting System (SPB) …... 5
SECTION TWO - OVERVIEW 6
What is Strategic Planning?…………………………………………… 6

Benefits of Planning…………………………………………………… 7
Limitations of Strategic Planning……………………………………... 8
SECTION THREE - STRATEGIC PLANNING MODELS 9
Basic Strategic Planning………………………………………………. 9

Scenario Planning……………………………………………………... 10
Alignment Planning…………………………………………………… 10
Issue Based Planning……………………………………….…………. 11
Self-Organizing Planning……………………………………………... 11
Hybrid Planning……………………………………………………….. 12
Balanced ScoreCard…………………………………………………… 13
Advantages of the BSC……………………………………………….. 14
BSC Process…………………………………………………………… 14
May 2005 Page ii

SECTION FOUR - STRATEGIC PLANNING PROCESSES 15
Planning Guidelines...…………………………………………………. 15
Strategic Phases……………………………………………………….. 15
Strategic Planning Questions………………………………………….. 16
Phase One: Analyze…………………………………………………… 17
Process Steps for the Analytical Phase……………………………….. 17
Questions for the Analytical Phase……………………………………. 19
Phase Two: Plan………………………………………………………. 20

Process Steps for the Planning Phase…………………………………. 21
Questions for the Planning Phase……………………………………... 22
SECTION FIVE – IMPLEMENTATION PROCESSES 23
Implementation Guidelines……………………………………………. 24
Phase Three: Implement………………………………………………. 25
Process Steps for the Implementation Phase………………………….. 25
Questions for the Implementation Phase……………………………… 27
Action Planning……………………………………………………….. 28
Action Planning Process Steps………………………………………... 28
Performance Management…………………………………………….. 29
Performance Management Process Steps……………………………... 29
Performance Management Questions…………………………………. 30
Phase Four: Measure………………………………………………….. 31
Assessment Tools……………………………………………………... 31
Process Steps for the Measurement Phase…………………………….. 31
Questions for the Measurement Phase………………………………… 32
May 2005 Page iii

SECTION SIX – APPENDIX A-1
Glossary of Terms- Strategic Planning Elements…………………… A-2

A-5
Texas Workforce Commission Vision, Mission, and Philosophy…... A-6
Web-site Resources…………………………………………………. A-7
Analytical Phase Worksheet – Record of Analysis………………….. A-8
A-9
Planning Phase Worksheet – Long Range Goals……………………. A-10
Balanced ScoreCard Worksheet……………………………………... A-11
Implementation Phase: Operational Plan /Sample Form……………………. A-12
Implementation Phase: Action Plan /Sample Form)………………………….. A-13
Implementation Phase: Performance (Project) Plan /Sample Form……… A-14
May 2005 Page iv

Strategic Planning Training and Development
STRATEGIC PLANNING
The purpose of this training is to describe the main steps required to develop
and begin implementing an effective strategic plan. The criteria,
terminology, and definitions in this guide are compatible with that provided
by the Governor’s Office of Budget and Planning, the Legislative Budget
Board, and the State Auditor’s Office.
Strategic planning methods are useful in two major Texas Workforce

Network (TWN) applications for:
1. managing - establishing direction and aligning resources to efficiently

manage operations that support your mission or core function
2. complying - defining standards and measuring program effectiveness.
Training Objectives
This training will enable you to:
• understand the purposes and benefits of strategic planning

• select a constructive strategic planning method for your work
environment
• identify and apply the main components of strategic and operational
planning processes.
May 2005 Page 1

Section One: Introduction

As a leader in the Texas Workforce Network (TWN), you are responsible for
some level of planning and oversight in at least one functional area. In the
chain of TWN professionals who provide benefits and services related to the
employment and training needs of Texans, you are accountable for results
rather than just efforts. Whether you are a leader with a local board, a
contractor, or the Texas Workforce Commission (TWC), producing effective
results requires careful planning.
A major competency of effective leaders is the skill to see the broad
perspective and to transform their long-range view into reality. One of the
best ways to develop this skill is through ongoing experience in strategic
planning. However, management surveys indicate that 85 percent of
executives spend less than one hour per month on strategy.
Many Texas Workforce Network leaders have visions and insights about
what it would take to make long-term improvements in their organization’s
performance, processes, or systems. But when the activities of a typical day
involve spending a great deal of valuable time “fighting fires” and reacting
to problems, crisis management can become a habitual replacement to
strategic management. A “vicious cycle” is then set in place that is difficult
to escape. Strategic Planning is an intervention to crisis management.
“Leaders in workforce development must create a culture of performance. That

has never been more critical than it is now. We must focus on results – a supply
of skilled workers and a world-class knowledge supply chain.
“We need to be in touch with the local employer’s needs and prepare or equip
workers to meet those demands. The stakes are high. The result is global
competitiveness, a strong economy, and high quality living for our citizens…”
Dr. David A. Sampson

Assistant Secretary of the U.S. Department of Commerce
May 2005 Page 2

Strategic solutions for statutory compliance
Strategic planning as a response to the requirements of the Texas Legislature

is the shared responsibility of the Texas Workforce Commission, its network
of 28 Local Workforce Development Area Boards, and Contractors.
As a state agency, The Texas Workforce Commission has the responsibility

for developing a system of performance accountability for its local boards
based on performance measures determined by the U.S. Department of
Labor and the state Legislative Budget Board. Local boards set priorities and
standards, and monitor the performance of their service contractors. And
contractors must plan processes and systems that allow them to meet their
performance objectives.
Background: The State of Texas Strategic Planning Process
State of Texas House Bill 2009 inaugurated the requirements and

House Bill 2009, time frames for a state wide strategic planning
Regular Session, process. Senate Bill 1332, 73rd Legislature, Regular
1991 Session, 1993 amended the statute to consolidate
requirements and change the minimum required
planning range from a six year to a five year cycle.
Strategic Planning The 1991 legislation established the SPB system

and Budgeting which bases funding and other decisions on an
System (SPB) organization’s accomplishments rather than on its
activities. The system promotes a mission/goal-
driven management approach that connects funding to
results.
Legislative Budget The LBB is a legislative committee that has

Board (LBB) responsibility to continuously review state spending.
It conducts comprehensive evaluations and reports to
the Legislature on results of state agency programs,
and identifies probable costs for implementing
legislation. All state agencies submit their budget
requests to the LBB.
May 2005 Page 3

State agency performance measures that accomplish the mission of state

government must represent the interests of both the Legislature and the
Governor. On this behalf, the Legislative Budget Board (LBB) and the
Governor’s Office of Budget and Planning (GOBP) collaborate to:
• issue instructions for preparing and submitting agency strategic plans

• issue statewide vision, mission, philosophy, functional goals, and
benchmarks
• negotiate performance criteria with state agencies
• assess reported performance data.
The State Auditor’s Office (SAO) acts as staffing agent for LBB and GOBP
oversight of the performance-based budgeting system by:
• collecting agency documentation of key measures

• performing audits to certify performance results
• giving feedback to agencies and the LBB.
May 2005 Page 4

Purposes of the
Strategic Planning and Budgeting System (SPB)
The purpose of the Texas Strategic Planning and Budgeting System is to:
• establish statewide direction in key policy or functional areas to move

away from crisis-driven decision-making
• provide a basis for aligning resources in a rational manner to address the

critical issues facing the state now and in the future
• make state government more responsive to the needs of Texans by

placing greater emphasis on benefits and results rather than just service
efforts and workload
• bring focused issues to policy-makers for review and debate
• provide a context to link the budget process and other legislative

processes with priority issues, and to improve accountability for the use
of state resources
• establish a means of coordinating the policy concerns of public officials

with agency efforts
• build interagency, intergovernmental, and public/private/nonprofit

partnerships
• provide a forum for communication between service providers and the

constituents they serve.
Governor’s Center for Management Development

“Strategic Planning and Performance Measures”
May 2005 Page 5

Section Two: Overview
What is strategic Successful strategic plans are working

planning? documents that explain where you are going and
promote the constructive change that will get you
there.
Planning is setting the direction for something.

Usually, we start with preferred results and work
backward to identify what will produce those
results.
Strategies are methods to achieve goals and

objectives.
Strategic planning allows organizations to make

fundamental decisions that guide them to a
developed vision of the future.
The result of this effort, the strategic plan,

serves as the basis for action that directs all
resources toward that future. The plan, which
must be practical and flexible, guides daily
decisions.
May 2005 Page 6

Benefits of The benefits of strategic planning are that it:

planning
• provides orderly growth and competitive
survival
• stimulates the organization to be more
responsive to the needs of customers
• focuses on results and benefits rather than
service efforts and workload
• simulates the future
• forces the setting of goals and objectives
• increases efficiency
• applies a systems approach to reviewing
projections and consequences
• creates a basis for performance measures and
accountability
• provides effective personnel management
because the process establishes relevant and
practical performance benchmarks
• provides a decision making framework
• mitigates crisis management and crisis-driven
decision making
• anticipates effects of change and influences of
external forces
• improves employee morale because of clarity
of focus, direction, communication, and
inclusion
• builds a communication network.
May 2005 Page 7

Limitations of Strategic planning can be difficult to accomplish

Strategic Planning because:
• planning requires the commitment and

sponsorship of an executive leader
• planning requires an appropriation of time,
people, and resources
• planning can be perceived as an inflexible
process
• the organization may experience internal
resistance to the process or strategy
• the process can become too focused on
measurements and compliance
• people who do the work may not be included
in the planning process
• unexpected events or current crises preempt
planning time and resources.
May 2005 Page 8

Section Three: Strategic Planning Models

There is no one perfect strategic planning model for every organization.
Each organization selects, modifies, or integrates a model to develop a
process that compliments its needs and outlook.
The Balanced Scorecard model is highlighted because of its popularity as a

performance improvement tool and because the Texas Legislature has
mandated pilots in several state agencies. Among those agencies that
established organization-wide scorecards, there is enthusiastic approval of
the processes and outcomes of this model.
The following models demonstrate a range of alternatives. With the

exception of the fifth model, the traditional strategic planning models
presented below are generally considered “linear”. They are general-to-
specific or cause-and-effect in nature. The processes often begin by
conducting some form of assessment of the external and internal
environments, performing strategic analysis, prioritizing issues, and then
developing strategies to address specific issues.
1. Basic Strategic Use the following straightforward process steps for

Planning small, busy organizations:
• Identify your purpose.

• Select goals.
• Identify specific implementation strategies.
• Identify action plans to implement each
strategy.
• Monitor and update the plan.
May 2005 Page 9

2. Scenario You may use this approach in conjunction with

Planning other models to ensure that you apply strategic
thinking to critical issues and goals.
• Identify several important external forces and

project the influences they might have on the
organization.
• Discuss three different future scenarios for each
change from an external force, and review the
worst case scenarios.
• Suggest potential strategies to respond to the
changes of each scenario.
• Detect common considerations in strategies.
• Select the most likely external changes and
identify the most responsive strategies.
3. Alignment You may use this model for organizations that

Planning need to fine tune their strategies or that experience
issues around internal efficiencies. The purpose is
to align the organization’s Mission and its
resources for more effective operations. Planning
groups must accomplish several tasks:
• Outline the mission, programs, resources, and

needed support.
• Identify what is working well and what needs
adjustment.
• Identify how to make adjustments.
• Include the adjustments in the strategic plan.
May 2005 Page 10

4. Issue Based Larger, more experienced organizations use this

Planning comprehensive and effective planning model.
Processes include:
• conducting an external/internal assessment

• designing major strategies to address issues and
goals
• developing or updating vision, mission, values
• establishing action plans
• recording assessment issues, goals, and
strategies, mission, vision, and action plans in a
Strategic Plan document
• developing a yearly operating plan document
• developing and authorizing a year-one budget
• conducting the year-one operations
• monitoring/reviewing/evaluating/updating the
Strategic Plan document.
5. Self-Organizing Rather than the linear processes of the other

Planning models, self-organizing planning evolves through
a more natural unfolding process. It requires
continual reference to common values, and shared
reflection around the system’s current processes.
This process uses dialogues, exploratory, and
storyboarding techniques. General steps include:
• clarifying and articulating the organization’s

cultural values
• articulating the group’s vision
• holding quarterly dialogues about what the
organization requires to arrive at the vision and
decide what the group is going to do
• focusing on learning rather than on linear
methods
• cultivating patience for these ongoing processes
• deciding how to portray the strategic plan to
stakeholders.
May 2005 Page 11

6. “Hybrid” Combining processes from two or more models

Integrated produces a hybrid effect. One example is the
Planning Balanced Score Card model, which integrates
elements of issues-based and alignment planning
processes.
May 2005 Page 12

Balanced Scorecard
Performance Management Model
Robert Kaplan of the Harvard Business School, and business consultant,

David Norton, developed the Balanced Scorecard strategic planning model
in 1992. More than half of the Fortune 500 corporations in the US and a
growing number of governmental agencies at all levels use this model.
During the 77th Legislative Session of 2001, a Rider to the General

Appropriations Act required Texas Education Agency (TEA), Department of
Public Safety (DPS), and Parks and Wildlife (TPWD) to develop Balanced
Scorecards (BSC) and report results during the 2003 session. Each of these
state agencies implemented a pilot. Other agencies, including the State
Auditor’s Office voluntarily implemented agency-wide BSC strategic
planning and management systems.
Kaplan and Norton assert that, “What you measure is what you get”.
Because the public sector does not generate profits, these organizations must
apply strategic principles to a different bottom line. That bottom line for
most government organizations relates to achieving their mission within the
context of the satisfaction of their customers, stakeholders, and employees.
The Balanced Scorecard model directs the organization’s strategic focus to

“perspectives” that frame its critical success factors. Strategic management
translates performance measures and targets into action initiatives.
The BSC model facilitates developing performance improvement objectives,

measures, and targets through a framework of five perspectives:
1. Mission
2. Customer focus
3. Internal processes
4. Learning and knowledge
5. Financial.
May 2005 Page 13

Advantages of the Implementing a BSC yields numerous

BSC advantages. It:
• emphasizes those processes that are most

crucial for obtaining high performance
• drives organizational change by focusing on
things that will have the biggest impact
• links the improvement of internal business
processes to specific external customer needs
• aligns the performance objectives of all people
in the organization
• organizes the allocation of resources
• focuses on performance measures that turn
strategy into action
• allows management to clarify priorities
• produces a clear path to the future vision.
BSC Process Process steps for the BSC are:
• define the mission or core function

• conduct an environmental scan
• conduct an internal/external assessment
• create a vision
• identify long-range goals
• identify objectives
• identify performance measures
• identify performance targets
• develop action plans
• implement
• assess
• modify
• report.
May 2005 Page 14

Section Four: Strategic Planning Processes

A Strategic Plan is a detailed scheme or method worked out as preparation
for the accomplishment of important business goals or objectives.
Planning To lay the foundation for a successful strategic

Guidelines planning process:
• Establish a planning team.

• Discuss the constructive purposes of the
planning model you will adapt.
• Make sure everyone understands the process
and expected outcomes.
• Allow sufficient time to go through the process.
• Discuss the agency Mission and your
contribution to it.
• Build a foundation of information to lead to
specific outcomes and outputs.
The strategic planning process consists of a series of formative steps that

begin with the contrast between present reality and a vision of the future. Its
practicality and applicability determine the effectiveness of a Strategic Plan.
Strategic phases Strategic steps from vision to outcomes are:
• Phase One: Analyze
• Phase Two: Plan
• Phase Three: Implement
• Phase Four: Measure
May 2005 Page 15

Strategic Planning Questions
Planning An effective strategic process provokes answers

to the following questions:
Questions
• What is our purpose for existing?
• Who are our customers and stakeholders?
• What are our strengths and weaknesses?
• What trends affect our work environment?
• What factors are critical to our success?
• What fundamental policy decisions must we
make?
• What values and principles must guide our
decisions?
• What actions are required to implement our
decisions?
• What are our priorities; what resources will
we need?
• What will be the impact on our target groups
or customers?
• How will we know that it is worthwhile?
• How will we analyze and explain that we are
on or off track?
• How will we make necessary corrections
during implementation?
May 2005 Page 16

PHASE ONE: ANALYZE
The first phase analytical activities ground your plan in the realities of the
current situation so you can apply practical criteria to the goals and
objectives of the Strategic Plan. Think in terms of what it takes to do the
work.
Process steps for the Analytical Phase
1. Define the core Your statement of core function is a succinct

functions expression of the reason your unit exists. Link
your core function to your organizational
mission. This statement will:
• identify your customers and their

expectations
• clarify your responsibility for providing
meaningful products or services.
2. Conduct an Ground the plan by examining your current

environmental environment. Consider economic, political,
scan and SWOT social, and technological trends that influence
Analysis your work. Identify Strengths and Weaknesses/
Opportunities and Threats.
• Strengths and Opportunities are positive

factors that suggest competitive advantages,
support current strategies and improved
performance.
• Weaknesses and Threats impede
performance and suggest risks in the current
strategies.
• Strengths and Weaknesses indicate internal
conditions.
• Opportunities and Threats indicate external
conditions.
May 2005 Page 17

3. Create a A realistic vision should accomplish improvements

realistic vision in efficiency or effectiveness to support your
(organizational) mission or (unit) core function.
The vision is:
• an inspiring view of your desired future state

• the basis for your goals and objectives.
4. Develop a This description of the vision you want to

vision achieve is a concise statement of what the
statement organization wants to be at the end of the
planning cycle.
The vision statement:
• becomes your benchmark or blueprint for

the future
• extends the range of your performance
potential to improve or be efficient
• advances the mission with goals emerging
from the vision.
May 2005 Page 18

Questions for the Analytical Phase
Analytical Answers to these questions support the creation of a

Questions: vision.
• What is our purpose for existing?

• Who are our customers and stakeholders?
• What are our positive factors?
• What are our negative factors?
• What trends affect our work environment?
• What factors are critical to our success?
• How would we look and be at our best?
May 2005 Page 19

PHASE TWO: PLAN
The strategic plan presents the opportunity to focus on solving problems,

increasing productivity, efficiency, and effectiveness in daily operations. A
strategic plan is your essential scheme.
Develop the Strategic Progress through an orderly sequence that

Plan allows the team to:
• clarify
• document
• communicate
• implement priorities.
Determine who will facilitate the process. The

TWC Training and Development Department
offers consulting and facilitation services.
However, anyone on the local team who
understands the concepts and processes can
also lead the process. It is important to have
roundtable discussions for getting input and
consensus about critical issues and possible
improvements.
May 2004 Page 20

Process Steps for the Planning Phase
1. Identify motivating To reflect priorities established in your vision:

long-range goals
• Test goals against the reality of your
business environment.
• Determine whether it is possible to achieve
your goals within a reasonable timeframe.
• Decide whether they are worth pursuing
and whether they give you what you really
want.
2. Identify Objectives are:

performance
(tactical) • specific steps to the achievement of your
objectives long-range goals
• intentions that convert to performance
activities.
3. Identify Performance measures and targets are tools to:

performance
measures and • benchmark your progress toward your
targets for each goals
objective • assess the effectiveness of performance.
May 2005 Page 21

Questions for the Planning Phase
Plan Development • What fundamental policy decisions must

Questions we make?
• What values and principles must guide our
decisions?
• What actions are required to implement
them?
• What are our priorities; what resources will
we need?
• What will be the impact on our target
groups or customers?
May 2005 Page 22

Section Five: Implementation Processes
Implementation gives credibility to planning because this phase is the

crosswalk of strategic plans into daily operations.
A successful implementation mitigates crisis management by unifying daily

operations with strategic processes. Strategy implementation promotes
efficiency. Leaders cultivate a broader perspective and become more
experienced by setting and managing the long-range view through action
planning.
Leaders who direct implementation must create or adapt processes and tools
that support their efforts to set standards and expectations for performance,
and manage and track progress.
Implementation involves three essential components:
1. developing an operational plan (executive management tool)

2. developing performance action plans (management tool)
3. managing performance (supervision and project leadership tool).
May 2005 Page 23

Implementation During the implementation phase:

Guidelines
• Communicate planning results.
• Determine who needs to be involved.
• Make specific assignments.
• Convert objectives into performance activities.
• Formulate a comprehensive operational plan to
coordinate all performance activities.
• Define the scope of individual projects.
• Use project management tracking tools to
detail activities of all critical projects.
• Conduct regular project reviews and evaluate
progress.
• Integrate significant project tasks into
management tools such as the Individual
Development Plan (IDP) and the Performance
Planning and Review (PPR).
• Make changes and corrections necessary to
achieve targets.
• Extend and revise action plans for the next
phase.
May 2005 Page 24

PHASE THREE: IMPLEMENT
Operational planning sets the implementation phase of the strategic plan in

motion. This is the process through which we strategically manage the gap
between the present and the vision of the future.
Process Steps for the Implementation Phase
1. Develop an The Operational Plan coordinates the overall

Operational Plan scope of the implementation. It is the executive
management plan for translating performance
measures and targets from the strategic plan
into performance initiatives. It is also the
approved charter for authorizing initiatives and
appropriating resources.
Use operational planning tools to coordinate all

activities emerging from the Strategic Plan
including:
• operations (ongoing efforts or activities that

are built into the daily routine to generate
repetitive products or services)
• projects (temporary and unique initiatives
with definite perimeters)
• programs (service delivery systems).
May 2005 Page 25

2. Create Performance (action) plans define and clarify

performance details that link strategic plan objectives,
action plans performance measures, and targets to specific
tasks and performance milestones.
Action plans formulate:
• implementation activities into performance

projects, ongoing operations, and programs
• assignments and responsibilities
• communication tools and methods
• resources
• expected deliverables, timelines, and
completion deadlines.
3. Manage Effective communication systems are essential

performance to implementation. To maximize progress
toward achieving goals, communicate
standards, expectations, and guidelines for
performance. Monitor and document progress.
Prove results and ensure continuous progress

by:
• demonstrating supportive management

behaviors
• conducting ongoing appraisals of movement
toward projected goals and outcomes
• emphasizing feedback
• making necessary modifications in direction
• creating reports.
May 2005 Page 26

Questions for the Implementation Phase
Implementation • What is the overall scope of the work that we

Questions need to accomplish?
• What are our priorities?
• We will achieve our objectives as the result of
what actions?
• What is the starting point and sequence for
our actions?
• What projects, operations, or programs must
we design?
• What activities and processes must we
integrate into the daily operations?
• What resources will we need?
• What will be the impact of these actions on
our customers or target group?
• What will be the impact of these actions on
our internal organization?
• Who are the sponsors and stakeholders whose
interests are affected?
May 2005 Page 27

Action planning Many performance action plans can flow out of

the operational plan. These plans advance the
levels of detail and specific steps that are
required to implement the strategic plan. Action
plans:
• Link operational initiatives to performance

activities such as projects or ongoing
operations.
• Preplan each unique activity.
• Focus on what work it will take to accomplish
that performance activity.
• Organize the work into a series of progressive
steps or tasks that are logically related.
• Define completion dates for the delivery of
tangible outcomes, estimate time
requirements and material resources, and
identify necessary team members.
• Organize tasks into performance plans that
link the objective with individual or group
responsibilities for outcomes.
Action planning To create an action plan:

process steps
1. Break initiatives into manageable parts.
2. Sequence interdependent activities.
3. Coordinate human and material resources.
4. Create schedules for completion for periods
of up to a year.
May 2005 Page 28

Performance Communicate performance requirements to all

Management staff who do the work. Create reporting
processes and systems. When necessary
provide coaching, training, or performance
feedback to support effective individual and
group efforts. Use project management tools.
To manage performance, track and manage all

performance activities including:
• temporary projects, ongoing operations, or

programs that create specific outcomes or
outputs
• specific related tasks
• staff assignments and responsibilities
• resources
• expected deliverables
• timelines and completion deadlines.
Performance To manage performance:

management process
steps 1. Lay out specific initiatives to implement
objectives.
2. Sequence activities for periods of up to a
year.
3. Coordinate details such as tasks, staff
assignments, and material resources.
4. Create schedules for completion
5. Support performance efforts with necessary
material resources and skills training.
May 2005 Page 29

Performance Management Questions
Performance • What will be new or different as a result of

Management the initiative?
Questions • What tangible, measurable, verifiable
outcome will be delivered?
• Are there project phases of related
activities?
• Are there milestones or significant events
or completions within the project?
• Who are the sponsors and stakeholders
whose interests are affected by it?
• Which individuals will be actively
involved?
• Which equipment and materials are needed
to execute the project?
• What are the specific timeframes and
completion end dates?
May 2005 Page 30

PHASE FOUR: MEASURE
Measuring results is essential to the achievement of long-range goals. Your

assessment data will reflect the direct effects of each strategy on your
organization and on your customers. Continuous assessment of the impact of
actions and strategic operations is critical to the success of plans because
monitoring keeps plans on track. The process requires systems to measure
results, monitor progress, and compile management information.
Assessment Tools A variety of assessment tools and software may

track:
• processes related to performance of services or

products
• internal and external customer satisfaction and
feedback
• employee performance
• employee satisfaction
• quality matrixes for error rates, efficiency, and
effectiveness.
Process Steps for the Measurement Phase
Process steps To measure results:
1. Decide which aspects of your projects would

benefit from comparative or benchmark
information and data.
2. Determine the appropriate quantity and type of
data to collect.
3. Select methods to assess and report progress.
May 2005 Page 31

Questions for the Measurement Phase
Project Assessment • How will we measure results against our

Questions: targets?
• How will we monitor and document
progress?
• What will the impact be on our target groups
or customers?
• How will we analyze and explain that we are
on or off track?
• How will we make necessary corrections
during implementation?
May 2005 Page 32

Section Six: Appendix
Glossary of Terms
Strategic Planning Elements
Action Plans
The Action Plan is a management tool for structuring the sustained efforts
necessary to implement goals and objectives. They organize the actions that
result in the transformation of vision into outcomes and outputs.
Core Functions
The core function is a unit’s reason for existence similar to how a mission
defines the organization’s purpose. Core functions align divisions,
departments, and units with the mission.
Critical Success Factors

CSF describe organizational capabilities or competencies that must be in
place for the organization to achieve (be in) the vision.
Deliverable
A deliverable is any measurable, tangible, verifiable outcome, result, or item
the organization must produce to complete a project or part of a project.
Deliverables are usually subject to approval by the project sponsor or
customer.
Environmental Scan
An environmental scan permits us to examine external and internal trends
and important factors that influence our work. Relevant factors include
economic, political, social, and technological trends. Analysis of trends and
management issues reveal important priorities affecting the direction of
strategic improvements.
Goals
Goals are high-level general results toward which the organization directs its
efforts and resources. Goals signify the scope and boundaries of each key
area. They define intentions relative to the primary issues represented in the
vision and mission.
May 2005 Page A-2

Mission
The mission is a succinct, comprehensive statement of the organization’s
purpose for existing, or a statement of its enabling legal statue. Mission
statements identify customers and stakeholders and reinforce the
organization’s responsibility.
Objectives
Objectives are concrete steps toward achieving goals. Objectives are
milestones that drive the organization toward the vision. They may
represent improvements in performing the core functions. They are
measurable results of actions that answer the question: “We will base our
success on….” Objectives identify what you can do to define your success
that will be faster, better, or cheaper. Objectives identify priority initiatives
that mobilize the strategy. A well-worded objective is Specific, Measurable,
Attainable/Achievable, Realistic, and Time bound (SMART).
Tactical Objectives
Tactical Objectives are action-oriented objectives.
Operational Plan
An operational plan is the formal document that coordinates the overall
scope for implementing the strategic plan. It is the tool of executive
management. It translates performance and target measures into
performance activities for daily operations. The operational plan serves as a
charter for authorizing initiatives and appropriating resources.
Performance Measures
Performance measures, or indicators, are measurable characteristics of
products, services, processes, and operations that can be used to track and
improve performance. These indicators represent the most significant
factors for achieving high levels of performance. Measuring performance
ensures progress toward goals. If you do not measure results, you cannot
distinguish success from failure. Performance measures answer the question:
“What must we measure to demonstrate our success?”
Efficiency Measures are indicators of cost or productivity associated

with an action. Efficiency measures generally justify unit costs or
time.
May 2005 Page A-3

Explanatory Measures place factors in context by explaining their

relevance, reliability, or practicality in relation to other contributing
factors.
Outcome Measures are results that indicate the actual impact of
planned actions. They are tools to assess the effectiveness of
performance and the benefit derived from it. Outcome measures
typically quantify a percentage, rate, or ratio of effect upon a
condition or problem.
Output Measures are indicators that count workload and work
products or services. Output measures quantify the actual numbers of
people receiving services, or the amount of goods produced.
Performance Plans
The performance plan is the tool of the project team leader. It is a formal
document used to guide both the execution and control of projects, ongoing
operations, or programs. This tool organizes the day to day implementation
tasks. It tracks progress on specific deliverables. The performance plan is a
type of action plan.
Scope
The scope defines what is within the boundaries of a project and what is
outside those boundaries. The purpose of defining scope is to clearly
describe and gain agreement on the logical boundaries of the
implementation.
Strategic Plan
The strategic plan is the written documentation of the planning process, its
methods, and results. This record of the long-range plan contains
performance measures and targets that identify projected achievements that
unfold from three to five years. It captures the comprehensiveness, validity,
and relevance of planned objectives. We implement the strategy to reach the
objective.
Strategic Planning Process

Strategic planning is a long-term, future-oriented process of assessment, goal
setting, and decision-making that maps a path between the present and a
vision of the future. It is a structured effort to produce actions that shape and
guide what an organization is, what it does, why and how it does it. The
process applies strategies (methods) to achieve goals and objectives.
May 2005 Page A-4

SWOT Analysis
Review of strengths, weaknesses, opportunities, and threats affecting the
mission, core function, goals or objectives. SWOT items correlate to the
organization’s position in the business environment. Discussion and SWOT
analysis yields necessary facts to consider when developing a vision. The
positive factors (strengths and opportunities) suggest competitive advantage,
support current strategies and improved performance. The negative factors
(weaknesses and threats) impede performance and suggest risks in the
current strategies. Strengths and weaknesses indicate internal conditions;
Opportunities and threats indicate external conditions.
Targets
Targets are indicators of success as well as specific benchmarks, numbers, or
thresholds of accomplishment. They determine effectiveness by measuring
tangible and specific performance goals against actual achievements or other
standards. Targets drive the action plan.
Vision
Vision is an inspiring view of the preferred future. It is a forecast of the
future based on leader intuition and judgement; it becomes the foundation
for a system of strategic changes.
May 2005 Page A-5

Texas Workforce Commission

Vision, Mission, and Philosophy
Vision
Texans will view local workforce development boards, the Texas Workforce
Commission and their partners as a quality supplier of workforce solutions.
Mission
To promote and support a workforce system that offers employers,
individuals and communities the opportunity to achieve and sustain
economic prosperity.
Philosophy
Our work is guided by the following core beliefs:
We believe that local communities are in the best position to address
local workforce needs.

We believe that the workforce system of Texas must be employer-driven.
We believe that individuals must assume personal responsibility for
making decisions about their lives and be accountable for their actions.
We believe in collaboration and partnership.
We believe in conducting business in accordance with the highest
standards of ethics, accountability and efficiency.
Our success will be based on the following organizational values:

We are committed to excellence in everything we deliver or guide.
We are committed to making the Texas Workforce Commission an
exemplary employer.
We are committed to treating people with respect and dignity and in a
fair and equitable manner.

We are committed to becoming an entrepreneurial, flexible and learning
organization.
We are committed to open and honest internal and external
communication.
May 2005 Page A-6

Web-site Resources
for
Strategic Planning and Performance Measurement
Legislative Budget Board (instructions for agency strategic plans and other
resources)
http:/www.lbb.state.tx.us
Governor’s Office
http:/www.governor.state.tx.us
American Society for Public Administration’s Center for Accountability and

Performance
http:/www.theroundtable.org
American Society for Public Administration, CenTex Chapter

http:/www.main.org/aspa
Council of State Governments (research reports, benchmarking, awards, etc.)

http:/www.csg.org
State Auditor’s Office

http://www.sao.state.tx.us
University of Texas at Austin LBJ School of Public Affairs – Professional

Development
http://www.utexas.edu/lbj/profdev
May 2005 Page A-7

Analytical Phase Worksheet - Record of Analysis
Core Function
______________________________________________________
______________________________________________________
______________________________________________________
______________________________________________________
Positive Factors Negative Factors

Strengths Weaknesses
__________________________ __________________________
__________________________ __________________________
__________________________ __________________________
__________________________ __________________________
__________________________ __________________________
__________________________ __________________________
Opportunities Threats
__________________________ __________________________
__________________________ __________________________
__________________________ __________________________
__________________________ __________________________
__________________________ __________________________
__________________________ __________________________
Environmental Trends
Economic
Political
Social
May 2005 Page A-8

Technological
Vision
______________________________________________________
______________________________________________________
______________________________________________________
______________________________________________________
______________________________________________________
May 2005 Page A-9

Planning Phase Worksheet – Long Range Goals
Motivating Goals
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
May 2005 Page A-10

Balanced ScoreCard Worksheet

Planning Phase – Performance Objectives
Perspective/ Tactic Objectives Measures Targets

Core Function
Customer Focus
Internal Processes
Learning & Knowledge
Financial
May 2005 Page A-11

Strategic Planning Training and DevelopmentMayMay
Implementation Phase: Operational Plan

Executive Management’s Overall Scope
Overall Time Frame: ___________________________
Strategic Objective Major Performance Responsible Manager Resources Deliverables

Initiatives Outcomes/Outputs
May 2005 Sample Form Page A-12

Implementation Phase: Action Plan

Manager’s Tool
Description of Strategic Objective Measures:

_______________________________ 1. ________________________________
_______________________________ ________________________________
_______________________________ ________________________________
2. ________________________________
_______________________________ ________________________________
________________________________
3. ________________________________
________________________________
________________________________
Performance Activities Project Leaders Resources Status Timeframe

Projects/Operations/
(Start Date/End Date)
Programs

Strategic Planning Training and DevelopmentMay
Implementation Phase: Performance (Project) Plan

Project Leaders’ Tool
Team Leader _______________________ Overall Time Frame ________________ Due Date _________
Performance Activity Deliverables (Tangible Outcomes or Outputs) Strategic Plan Objective (Link for Impact )
Project/Operations/Program)
Tasks Responsible Staff Progress Status Issues Date

Finished
1.
2.
3.
4.
5.
6.

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STRATEGIC PLANNING

Louis LeDoux, Department Director

Training and Development Department Curriculum Writer

Training and Development Department Editor

TRAINING PURPOSE AND OBJECTIVES 1

SECTION ONE - INTRODUCTION 2

SECTION TWO - OVERVIEW 6

What is Strategic Planning?…………………………………………… 6

SECTION THREE - STRATEGIC PLANNING MODELS 9

Basic Strategic Planning………………………………………………. 9

May 2005 Page ii

Phase Two: Plan………………………………………………………. 20

SECTION FIVE – IMPLEMENTATION PROCESSES 23

May 2005 Page iii

Glossary of Terms- Strategic Planning Elements…………………… A-2

May 2005 Page iv

Strategic planning methods are useful in two major Texas Workforce

1. managing - establishing direction and aligning resources to efficiently

This training will enable you to:

• understand the purposes and benefits of strategic planning

May 2005 Page 1

Section One: Introduction

“Leaders in workforce development must create a culture of performance. That

Dr. David A. Sampson

May 2005 Page 2

Strategic solutions for statutory compliance

Strategic planning as a response to the requirements of the Texas Legislature

As a state agency, The Texas Workforce Commission has the responsibility

Background: The State of Texas Strategic Planning Process

State of Texas House Bill 2009 inaugurated the requirements and

Strategic Planning The 1991 legislation established the SPB system

Legislative Budget The LBB is a legislative committee that has

May 2005 Page 3

State agency performance measures that accomplish the mission of state

• issue instructions for preparing and submitting agency strategic plans

• collecting agency documentation of key measures

May 2005 Page 4

• establish statewide direction in key policy or functional areas to move

• provide a basis for aligning resources in a rational manner to address the

• make state government more responsive to the needs of Texans by

• bring focused issues to policy-makers for review and debate

• provide a context to link the budget process and other legislative

• establish a means of coordinating the policy concerns of public officials

• build interagency, intergovernmental, and public/private/nonprofit

• provide a forum for communication between service providers and the

Governor’s Center for Management Development

May 2005 Page 5

Section Two: Overview

What is strategic Successful strategic plans are working

Planning is setting the direction for something.

Strategies are methods to achieve goals and

Strategic planning allows organizations to make

The result of this effort, the strategic plan,

May 2005 Page 6

Benefits of The benefits of strategic planning are that it:

May 2005 Page 7

Limitations of Strategic planning can be difficult to accomplish

• planning requires the commitment and

May 2005 Page 8

Section Three: Strategic Planning Models

The Balanced Scorecard model is highlighted because of its popularity as a

The following models demonstrate a range of alternatives. With the

1. Basic Strategic Use the following straightforward process steps for