STRATEGIC PLANNING is a collective process of building a strategy for a project phase.

STRATEGY Strategy is organizing action in a constructed, consensual manner to achieve an objectives. The definition emphasizes: y Realizing the objective which is the keystone of the strategy. Objectives must be constructed with as much as possible. y The condition for producing planning is an effort of collective construction. y The need to build action on basis of in-depth reflection not as a reaction to a problem or mere intuition. y The need to arrive at consensus so that all partners feel involved in choices made. y The fact that the main aim of planning is to work out a strategy. WHY PLAN? y Improve project quality. y Improve project effectiveness. y Improve project efficiency. y To facilitate monitoring and evaluation of project progress. y To facilitate communication between the Foundation and its partners (clarity and transparency) y To ensure continuity. y To ensure exchange between the various partners and take their views into account. y To reduce any bias in terms of definition of target population. y To facilitate optimization of the methods applied. y To facilitate comparison between similar projects. y To have an opportunity of obtaining funding from international institutions. y To facilitation on projects and project results. STRATEGY y MISSION y OBJECTIVES y VISION The planning process rests on three pillars MISSION y Which tells who we are as an institutions and sets out our basic values. VISION y Expresses how we seethe future of the situation of which we wish to intervene and its context. PROJECT OBJECTIVE y The status of the situation we are to create Main stages of the process y Definition of our vision y Situation analysis y Building Intervention Logic y Clarifying the model of action y Project appreciation criteria SITUATION ANALYSIS y Analysis of unsatisfactory situation (PROBLEM) y Analysis of stakeholders y What are resources and potentialities y Limits, obstacles and risks Building Intervention Logic y Building description of the situation to which our intervention will contribute. y Building y The objective: description of the situation which we want to attain. y Building strategy: imagining possible ways to attain the objective in order to choose the best to guarantee success. Strategy is made up of strategic axes entailing a series of intermediary and final results. Each result is the outcome of one or more action and represent so many steps to pass through in order to achieve the objective.

Defining external assumptions (or critical conditions): are there any factors external to the intervention over which we have no control but which may determine achievement of objective? y Defining indicators and means of verification: How will we monitor and measure progress along the path we have mapped out? Clarifying the model or action y The way in which the project intends to intervene with regard to beneficiaries. y Rendering specific and describing which model of action a project will prioritize. y Indicating technological and methodological tools to be used for this purpose. Project Appreciation Criteria y Consistency or coherence with national policies. y Degree of participation: is the target beneficiary to be involved at every stage? y Sustainability Analysis: the way the project goes about guaranteeing that substantial advantages (beneficial effects) for the target population extend beyond of project intervention. y Strengthening local capacities description of capacity and institutional building among existing and emerging partners. y Reflection about positive and negative impact anticipated: effect of intervention on its environment (population, institutions, surroundings). Impact typically comprises beyond control of project. y Gender Analysis: project approach to social economic gender relations; possible measures to ensure equal access to project. y Networking: stakeholder analysis(primary-family, friends, neighbours and secondary networks (formal or informal groups) y Project cycle management model: mode of organization, functioning and planned development of the project. THE MISSION STATEMENT Where there is no vision, people perish.(proverbs 29:18) y The mission is the creation of an orientation bringing people together and arguing them to accomplish their deepest aspirations. Reasons for defining a Mission y To contribute to selecting suitable strategies so as to disregard strategies not in line with the mission. y To ensure that objectives of the institution head in the same direction. y To provide a clear picture for all concerned of the direction the institution is taking. y To create a spirit of belonging and motivate all staff in the institution. y To transmit a positive image through publicity or public relations. Characteristics of a Mission y Must enable the institution to differentiate itself from others. Asks: What do we have that is unique? y Forward Looking: we are we going in the future? y It should be motivating, contain a unifying concept bringing all concern together and unifying them. y Clear, transparent and communicated to all stakeholders. y Defines what we are competent to act on. How to Test the validity of a mission y What would happen if our project or organization ceases to exist? y If all members won a sum of money which makes them able not to work. y

Would the mission motivate them to continue? That business mission is so rarely given adequate thought is perhaps the most important single cause of business frustration . -Peter Drucker

A study comparing mission statements of Fortune 500 firms performing well and firms performing poorly concluded that high performers have more comprehensive mission statements than low performers. MISSION- What is our business? VISION- What do we want to become? A MISSION STATEMENT is an enduring statement of purpose that distinguishes one organization from similar enterprises. The mission statement is a declaration of an organization s reason for being . A good mission statement: y Describes an organization s purpose, customers, products or services, markets, philosophy, and basic technology. A mission statement should: y Describe what the organization is and what the organization aspires to be; y Be limited enough to exclude some ventures and broad enough to allow for creative growth; A mission statement distinguishes a given organization from all others; y Serve as a framework from evaluating both current and prospective activities; and y Be stated in terms sufficiently clear to be widely understood throughout the organization VISION STATEMENT Is a declaration of a desired future state Visioning uses the imagination to: Create a picture of y What you want to achieve Obtain answers to questions y Where aree we going? y What will it be like when we get there? VISION is having an acute sense of the possible. It is seeing what others don t see. What you can project to the future is your VISION- your long-term picture of what you want your organization TO BECCOME. IMPORTANCE OF A VISION y Provides direction and sustains people in moving to the future y Engages the spirit y Is an antidote to the feeling that the future will be very much like the past FEATURES OF A GOOD VISION STATEMENT y People can easily identify with it y People can easily commit to it y It grabs, moves, and uplifts people y It gets people moving in the same direction KEY TRAITS OF AN EFFECTIVE VISION y Clear and challenging y Makes sense and stands the test of time

y Aimed at empowering people in the organization y Prepares for the future, but honors past y Inspiring Vision Statement of Amoco Amoco will be a global business enterprise, recognized throughout the world as pre-eminent by employees, customers, competitors, investors and the public. We will be the standard by which other businesses measure their performance. Our hallmarks will be the innovation, initiative and teamwork of our people and our ability to anticipate and effectively respond to change and create opportunity. Vision Statement of Harley-Davidson Harley-Davidson Inc. is an action-oriented international company- a leader in its commitment to continuously improve the quality of profitable relationship with stakeholders (customers, employees, suppliers, shareholders, governments and society). Harley-Davidson believes that the key to success is to balance stakeholders interests through the empowerment of all employees to focus on value-added activities. Concern for employees Are employees a valuable asset of the firm? Examples of Nine Essential Components of a Mission Statement Customers y We believe our first responsibility is to the doctors, nurses, and patients, to mothers and all others who use our products and services. -Johnson&Johnson Products and Services y AMAX s principal products are molybdenum, coal, iron ore, copper, lead, zinc, petroleum and natural gas, potash, phosphates, nickel, tungsten, silver, silver, gold and magnesium. -AMAX Markets y We are dedicated to the success of Corning Glass Works as a worldwide competitor. -Corning Glass Works y Our emphasis is on North America, although global opportunities will be explored. -Blockway Technology y Control data applies micro-electronics and computer technology in two general areas: Computer-related hardware; and computing-enhancing services, which include computation, information, education and finance. -Control Data Concern for survival, growth, and profitability y To serve the worldwide need for knowledge at a fair profit by gathering, evaluating, producing and distributing valuable information in a way that benefits our customers, employees, authors, investors and our society. -McGraw-Hill

Philosophy y We believe human development to be the worthiest of the goals of civilization and independence to be the superior condition for nurturing growth in the capabilities of people. -Sun Company It s all part of the Mary Kay philosophy- a philosophy based on the golden rule. A spirit of caring and sharing where people give cheerfully of their time, knowledge, and experience. -Mary Kay Cosmetics Self-Concept y Crown Zellerbach is committed to leapfrogging competition within 1,000 days by unleashing the constructive and creative abilities and energies of each its employees. -Crown Zellerbach Concern for public image y To share the world s obligation for the protection of the environment. -Dow Chemical y To contribute to the economic strength of society and function as a good corporate citizen on a local, state, and national basis in all countries in which we do business. -Pfizer Concern for Employees y To recruit, develop, motivate, reward, and retain personnel of exceptional ability, character and dedication by providing good working conditions, superior leadership, compensation on the basis of performance, an attractive benefit program, opportunity for growth, and a high degree of employment security. -The Wachovia Corp. y To compensate its employees with remuneration and fringe benefits competitive with other employment opportunities in its geographical area and commensurate to their contribution toward efficient corporate operations. -Public Service Electric and Gas Vertical Integration Strategies y Forward Integration y Backward Integration y Horizontal Integration Forward Integration y Gaining ownership or increased control over distributors and retailers Backward Integration y Seeking ownership or increased control of a firm s suppliers y OUTSOURCING- the use of outside suppliers, going with the best deal, is becoming widely practiced Horizontal Integration y Strategy of seeking ownership or increased control over an organization s competitors y
y Used as a growth strategy.

Mergers, acquisitions and takeovers allow for increased economies of scale and enhanced transfer of resources and competencies. INTENSIVE STRATEGIES y Market Penetration y Market Development y Product Development MARKET PENETRATION y Seeks to increase market share for present products and services in present markets through greater marketing efforts. y Used alone or in combination with other strategies. y Examples: increasing publicity efforts, advertising campaign, increasing channels of information MARKET DEVELOPMENT y Introducing present products and services into geographical areas. PRODUCT DEVELOPMENT y Seeks increased patronage by improving or modifying present products and services. DIVERSIFICATION STRATEGIES y Concentric Diversification o Adding new but related products and services. y Horizontal Diversification o Adding new but unrelated products and services for present clients. y Conglomerate Diversification o Adding new, unrelated products and services. DEFENSIVE STRATEGIES y Joint Venture y Retrenchment y Divestiture JOINT VENTURE y A popular strategy that occurs when two or more companies form a temporary partnership or consortium for the purpose of capitalizing on some opportunity. y This strategy can be considered defensive only because the organization is not undertaking the [project alone. Other types of cooperative arrangements: y Research and development partnerships y Cross distribution agreements y Cross-licensing agreements y Cross-manufacturing agreements y Joint-bidding consortia For collaboration to succeed, both firms must contribute something distinctive such as technology, distribution, basic research, or manufacturing capacity. RETRENCHMENT y Occurs when an organization regroups through cost and asset reduction to reverse declining operations. y Sometimes called a turnaround or reorganizational strategy, retrenchment is designed to fortify an organizations basic distinctive competence. y Retrenchment can mean selling of land and buildings to raisi needed cash, pruning product lines, closing marginal or obsolete sectors, reducing the number of employees, instituting expense control systems. DIVESTITURE y Selling a division or part of an organization y Divestiture is used to raise capital for further strategic acquisitions or investments. y Can be part of an overall retrenchment strategy 1) to rid an organization of business that are unprofitable, 2) that require too much capital, and 3) that do not fit with the organizations other activities. y

LIQUIDATION y Selling all of organization assets, in parts for their tangible worth. GENERIC STRATEGIES y According to M. Porter strategies allow organizations to gain competitive advantage from three different bases: Cost leadership Differentiation Focus COST LEADERSHIP STRATEGIES THE PROCESS OF CORPORATE PLANNING A. EXTERNAL ENVIRONMENTAL ANALYSIS Includes: 1. An evaluation of the national/regional economic and social development plans, among others, as forces of change. 2. Markets and beneficiary analysis Part 1. An evaluation of the national/regional economic and social development plans Questions: What are the blueprints of national and regional development? What are the principal development thrusts of these plans? What are the underlying principles of development we can discern because of these plans and thrusts?

y y y

Note:; programs and projects selected should ideally conform to these thrusts. Note: these principles should likewise ideally govern the selection of programs and projects. Areas of concern of Philippine development: reduce poverty and empower the unprivileged food security minimize social injustice and level the playing field so long favoring the rich, the elite and politicobusiness class develop indigenous processes business class develop indigenous processes of development At the same time adapting practical global and regional technologies and approaches in economic and social progress. What the organization might do

y y y y y