Workbook for Policy and Strategy

Case Studies
 
 
 

Table of Contents



 
 
 
 
 
 
 
Pages
Introduction
2
Step 1 - Develop a Mission Statement
3
Step 2 - Perform External Audit
5
Step 3 - Perform Internal Audit
8
Step 4 - Establish Objectives
11
Step 5 - Establish Strategies
13
A. Sample TOWS
14
B. Guidelines
15
C. TOWS, IE, and QSPM Worksheets
17
Step 6 - Implement Strategies
26
Step 7 - Evaluate Strategies
32

 
 

Strategic Planning Workbook

The Strategic Planning Workbook can be used to develop a strategic plan for any organization. Simply read the narrative and directions, collect relevant external and internal information, and then complete the worksheets herein.

A strategic plan is a document that reveals an organization's mission, objectives, and strategies for the future. The process of developing that document is called strategic planning. Why is strategic planning important? Because people and organizations that plan ahead are much more likely to become what they want to become than those who do not plan at all. A good manager plans and controls the plans, while a bad manager never plans and then tries to control people. Without a strategic plan, an organization is like a ship without a rudder. Strategic planning provides direction and purpose. It allows an organization to influence, initiate, anticipate, and be proactive, rather than simply reacting to events as they occur. When managers and employees are given the opportunity to participate in strategic planning, they become more motivated and committed to the firm. They understand more fully what the company is trying to accomplish and why.

Dun & Bradstreet reports that nearly 100,000 businesses in the U.S. fail every year. Many different factors can lead to business failure. Strategic planning can lead to business success.
 

Seven major steps are necessary in strategic planning:

Step 1 - Develop Mission Statement

Step 2 - Perform External Audit

Step 3 - Perform Internal Audit

Step 4 - Establish Objectives

Step 5 - Establish Strategies

Step 6 - Implement Strategies

Step 7 - Evaluate Strategies

These seven steps represent a systematic, rational, objective approach for developing a strategic plan, rather than relying upon politics, emotions, opinions, and subjectivity to determine the firm's future.
 
 

Step 1 - Develop A Mission Statement

Step 1 in strategic planning is to develop a mission statement. A mission statement is an enduring statement of purpose that distinguishes one organization from other similar enterprises. Sometimes called a creed statement or a vision statement, about 60% of organizations today have a written mission statement. Some firms publish their mission statement in their Annual Report and some place the mission statement on their web page. But most managers in most companies do not know whether the organization has a mission statement or not. This is unfortunate because developing a mission statement can yield great benefits.

A mission statement is important to insure unanimity of purpose, arouse positive feelings about the firm, provide direction, provide a basis for objectives and strategies, serve as a focal point, and resolve divergent views among managers. In every organization, there are divergent views among managers regarding direction and strategies. Discussing issues in developing a mission statement can help resolve divergent views.

Some guidelines for writing a mission statement are as follows. The statement should not be too lengthy - about 150 words is best. The statement needs to be longer than a phrase or sentence, but not a two page document. A mission statement also should not be too specific. Do not include $, %, #'s, goals, or strategies. In a strategic plan, objectives, strategies, and policies should be specific, but not the mission statement. Too much detail in a mission statement can alienate managers and stifle creativity. A mission statement should be inspiring. The reader should want to be a part of that organization after reading the mission statement. A mission statement should be enduring though not cast in stone. The statement should project a sense of worth, intent, and shared expectations and should state intrinsic value of the firm's products/services. Regarding intrinsic value, Avon for example sells beauty not just cosmetics, and Exxon sells energy, not just gas.

In writing a mission statement, include the following nine components to describe the company:

1. Customers (specify who is target market)

2. Products/Services (specify offerings and value provided to customers)

3. Geographic Markets (specify where firm seeks customers)

4. Technology (specify technology used to produce/market products)

5. Concern for Survival/Growth/Profits (specify concern for financial soundness)

6. Philosophy (specify values, ethics, beliefs)

7. Public Image (specify contributions being made to communities)

8. Employees (specify importance of managers/employees)

9. Distinctive Competence (specify how firm is different/better than competitors)
 
 
 

Mission Statement Worksheet

In the space provided, write a mission statement for your organization. Be sure to include the nine components listed above and follow the guidelines.

_______________________________________________________________________________________________
_______________________________________________________________________________________________
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_______________________________________________________________________________________________
 
 

Step 2 - Perform External Audit

Step 2 in strategic planning is to perform an external audit. This activity involves identifying and evaluating opportunities and threats facing the firm in six key focus areas:

1. Economic Conditions

2. Social, Cultural, Demographic Trends

3. Political, Legal, Governmental Factors

4. Technological Changes

5. Natural Environment Issues

6. Competitors

External opportunities and threats in these areas may include economic turmoil in Asia, declining value of the dollar, rising interest rates, demographic shift in population to the Southwest, passage of a new law, introduction of a new product by a competitor, merger of two competitors, or even flooding due to El Nino. Any factors beyond control of a single company yet that significantly affect consumption of the firm's products/services should be considered in the external audit.

An external audit is important in developing a strategic plan because changes in these focus areas, especially competitors, translate into changes in consumer demand for the firm's products and services. This is important information for the firm. Also, strategies must take advantage of opportunities and must avoid the impact of threats. The nature of opportunities and threats change rapidly because the world rapidly changes, customers rapidly change, and competitors rapidly change. This all means that demand for the firm's products/services can rapidly change, so an organization must continually monitor external trends and events in order to pursue effective strategies. Performing an external audit is vital for staying abreast of changing conditions that affect the company.

In performing an external audit, gather information in all six focus areas, especially information about competitors. Determine facts, trends, statistics, and projections that affect consumption of the firms products/services. Excellent sources of information include the Internet, investment reports, trade publications, chambers of commerce, government documents, magazines, newspapers, constituencies, and any other sources available. Develop a complete list of all external factors. Be specific in stating factors Categorize these factors into opportunities and threats. Then reduce the list to a set of the most important factors. Twenty is a recommended number. Strategies will be formulated based on the most important factors, not your exhaustive list.

External Audit Worksheets

In the space provided below, list up to sixteen external opportunities and up to sixteen external threats that face your organization. Focus upon the six focus areas listed above.

Be as specific as possible in stating each factor. Then in the left margin, rank all factors you listed in terms of importance to the firm in formulating strategies. Let 1 be the most important, 2 next most important, ... to 20, the 20th most important. Threats can receive a high ranking if a particular factor is important for the organization to consider.

External Opportunities

1. ____________________________________________________________________________________

2. ____________________________________________________________________________________

3. ____________________________________________________________________________________

4. ____________________________________________________________________________________

5. ____________________________________________________________________________________

6. ____________________________________________________________________________________

7. ____________________________________________________________________________________

8. ____________________________________________________________________________________

9. ____________________________________________________________________________________

10. ___________________________________________________________________________________

11. ___________________________________________________________________________________

12. ___________________________________________________________________________________

13. ___________________________________________________________________________________

14. ___________________________________________________________________________________

15. ___________________________________________________________________________________

16. ___________________________________________________________________________________
 
 

External Threats

1. ____________________________________________________________________________________

2. ____________________________________________________________________________________

3. ____________________________________________________________________________________

4. ____________________________________________________________________________________

5. ____________________________________________________________________________________

6. ____________________________________________________________________________________

7. ____________________________________________________________________________________

8. ____________________________________________________________________________________

9. ____________________________________________________________________________________

10. ___________________________________________________________________________________

11. ___________________________________________________________________________________

12. ___________________________________________________________________________________

13. ___________________________________________________________________________________

14. ___________________________________________________________________________________

15. ___________________________________________________________________________________

16. ___________________________________________________________________________________
 
 

Step 3 - Perform Internal Audit

Step 3 in strategic planning is to perform an internal audit. The internal audit is very similar to the external audit except the focus in on internal factors, that is areas the firm can control such as its own marketing. The internal audit is not an accounting audit, but rather an assessment of all internal activities. Performing an internal audit requires the organization to determine the firm's strengths and weaknesses in management, marketing, finance, computer information systems, and all other internal areas of the firm. An assessment of strengths and weaknesses is needed before objectives or strategies can be established.

Management focus areas to assess in performing an internal audit include human resources, organizational structure, manager/employee relations, vendor relations, production/operations, inventory control, packaging, shipping, and distribution. Obviously these areas can and do vary by type of firm. For example in a hospital, areas would include radiology, urology, cardiology, nursing, outpatient, etc. In a university, areas would include alumni relations, food service, curriculum, athletic facilities, and student activities.

Marketing focus areas to assess include advertising, promotion, customer service, salespersons, test marketing, target marketing, pricing, Internet marketing, customer loyalty, and product quality. Finance and computer information systems areas may include ratios, budgeting, accounting, costs, expenses, cash flow, leverage, liquidity, profitability, equity, management information systems, Internet, web site, hardware and software.

An internal audit is important in strategic planning because strategies must capitalize on strengths and must improve upon weaknesses. A firm's strengths and weaknesses evolve and change. Relative deficiency or superiority is important strategic information. Comparisons with competitors can change rapidly. Morale, attitudes, and opinions can change rapidly. Any of these changes can alter the firm's strengths and weaknesses.

In performing an internal audit, first gather information in all internal areas using benchmarks, performance data, and comparisons over time by product, division, territory, department, and individual. Make comparisons to competitors and to objectives. Conduct surveys as needed to monitor employee morale, customer loyalty, advertising effectiveness, etc. Share this information with managers who then should meet to jointly develop a complete list of important internal factors. Be as specific as possible in stating each strength and weakness. Include facts, figures, ratios, numbers, percentages - anything that moves decision making from the realm of mere opinion. Categorize the factors into strengths and weaknesses. Finally, narrow the list to the top twenty factors.
 

Internal Audit Worksheets

In the space provided below, list up to sixteen internal strengths and sixteen internal weaknesses that characterize your organization. Be as specific as possible in stating each factor. Then in the left margin, rank all factors you listed in terms of importance to the firm in formulating strategies. Let 1 be the most important factor to consider, 2 next most important, ... to 20, the 20th most important.

Internal Strengths

1. ____________________________________________________________________________________

2. ____________________________________________________________________________________

3. ____________________________________________________________________________________

4. ____________________________________________________________________________________

5. ____________________________________________________________________________________

6. ____________________________________________________________________________________

7. ____________________________________________________________________________________

8. ____________________________________________________________________________________

9. ____________________________________________________________________________________

10. ___________________________________________________________________________________

11. ___________________________________________________________________________________

12. ___________________________________________________________________________________

13. ___________________________________________________________________________________

14. ___________________________________________________________________________________

15. ___________________________________________________________________________________

16. ___________________________________________________________________________________
 

Internal Weaknesses

1. ____________________________________________________________________________________

2. ____________________________________________________________________________________

3. ____________________________________________________________________________________

4. ____________________________________________________________________________________

5. ____________________________________________________________________________________

6. ____________________________________________________________________________________

7. ____________________________________________________________________________________

8. ____________________________________________________________________________________

9. ____________________________________________________________________________________

10. ___________________________________________________________________________________

11. ___________________________________________________________________________________

12. ___________________________________________________________________________________

13. ___________________________________________________________________________________

14. ___________________________________________________________________________________

15. ___________________________________________________________________________________

16. ___________________________________________________________________________________
 
 

Step 4 - Establish Objectives

Step 4 in strategic planning is to establish objectives. Objectives are specific results an organization seeks to achieve in pursuing its basic mission. Objectives need to be established at the corporate, divisional, and departmental levels if an organization is structured in that manner. A corporate or divisional objective could be to achieve a 10% annual increase in revenues.

It is hard to imagine an organization or individual being successful without having clear objectives. Objectives can be compared to a compass by which a ship navigates. A compass bearing is firm, but in actual navigation, a ship may veer off its course for many miles. Without a compass, a ship would never find its port.

Objectives need to be challenging, understandable, obtainable, clear, reasonable, quantitative, specify a time element, prioritized, and consistent across departments. Consistent across departments means for example that if a marketing objective is to increase sales by 10%, then production must have a similar objective to increase output by 10%.

Objectives are important in strategic planning because they provide direction and purpose. They establish priorities, allow coordination, reduce uncertainty, aid in evaluation, stimulate exertion, minimize conflicts, are used to allocate resources, and to design jobs. For example as an aid in evaluation, a department or division should know up front what the objective or expectation is for the quarter or year.

On the next page, list ten objectives that you feel your organization, division, and/or department should try to obtain. Consider your mission statement, external audit, and internal audit in devising your objectives. Follow guidelines described above in establishing your objectives. Be as specific as possible in stating each objective.
 

Establish Objectives Worksheet
 
 

Objective 1 ____________________________________________________________________________  _____________________________________________________________________________________

Objective 2 ____________________________________________________________________________  _____________________________________________________________________________________

Objective 3 ____________________________________________________________________________  _____________________________________________________________________________________

Objective 4 ____________________________________________________________________________
_____________________________________________________________________________________

Objective 5 ____________________________________________________________________________ _____________________________________________________________________________________

Objective 6 ____________________________________________________________________________
_____________________________________________________________________________________

Objective 7 ____________________________________________________________________________
_____________________________________________________________________________________

Objective 8 ____________________________________________________________________________
_____________________________________________________________________________________

Objective 9 ____________________________________________________________________________
_____________________________________________________________________________________

Objective 10 ___________________________________________________________________________
_____________________________________________________________________________________
 
 

Step 5 - Establish Strategies

Step 5 in strategic planning is to establish strategies. Strategies are not something to nail together in slap-dash fashion by sitting around a conference table. Many companies unfortunately still formulate strategies this way, relying heavily on emotion, politics, opinion, subjectivity, and intuition, rather than conducting some research, collecting some facts and information, and performing some analyses. The penalty for pursuing the wrong strategies can severely cripple an organization, so research and analysis is needed to formulate strategies effectively. Use information gathered in the external and internal assessment.

Strategies are derived from an organization's underlying mission, external opportunities/threats, internal strengths/weaknesses, and objectives. An organization needs to use its strengths to capitalize on opportunities and improve upon weaknesses and avoid threats. Three analytical tools, the TOWS Matrix, the IE Matrix, and the OSPM should be constructed in formulating strategies. The first two matrices, TOWS and IE, are used to generate strategies. These two matrices utilize the earlier external and internal factors deemed most important. The QSPM is used to determine the relative attractiveness of strategies generated.

Guidelines For Constructing A TOWS Matrix

The Threats-Opportunities-Weaknesses-Strength (TOWS) Matrix is the most widely used strategic planning matrix among companies and organizations. To develop a

TOWS Matrix, simply list the firm's strengths, weaknesses, opportunities, and threats in boxes along the top and side of the matrix as indicated on the sample TOWS Matrix provided on the next page. These are the same factors you earlier determined (ranked) to be most important in your external and internal audits. Then in the four strategy quadrants labeled SO, WO, ST, and WT, list specific strategies that would benefit the firm in light of those underlying factors.

Some example strategies are shown on the next page. For example under SO which stands for Strength-Opportunity, you may feel that your firm should expand globally, or double the number of salespersons, or double advertising, or develop new products, or diversify. Using the weakness and threat factors, you may feel that your firm should liquidate, or divest, or retrench, or restructure, or downsize. The strategies for your firm will vary from these depending on your key external and internal factors. So in essence, the TOWS Matrix enables you to generate strategies based on important underlying factors. Be as specific as you can when listing your strategies.
 

A SAMPLE TOWS MATRIX
 
 
 

STRENGTHS WEAKNESSES
1. 1.
2. 2.
3. 3.
4. 4.
5. 5.

 
 
 
 
 
OPPORTUNITIES SO STRATEGIES WO STRATEGIES
1. 1. EXPAND GLOBALLY 1. JOINT VENTURE
2. 2. DOUBLE SALESPERSONS 2. ACQUIRE COMPETITOR
3. 3. DOUBLE ADVERTISING 3. EXPAND NATIONALLY
4. 4. DEVELOP NEW PRODUCTS 4. BACKWARD INTRAGATION
5. 5. DIVERSIFY 5. FORWARD INTEGRATION

 
 
 
 
 
 
THREATS ST STRATEGIES WT STRATEGIES
1. 1. DIVERSIFY 1. LIQUIDATION
2. 2. ACQUIRE COMPETITOR 2. DIVESTITURE
3. 3. EXPAND LOCALLY 3. RETRENCHMENT
4. 4. INCREASE PROMOTION 4. RESTRUCTURE
5. 5. RE-ENGINEER 5. DOWNSIZE

 
 
 

Guidelines For Constructing An IE Matrix

Lets focus now on the second analytical tool used for formulating strategies, the Internal-External (IE) Matrix. To develop an IE Matrix, simply rate your company as being Excellent, Average, or Weak internally and externally as shown on the top and side axes on the IE Matrix. A sample IE Matrix is provided below. Base your ratings on your earlier internal and external assessments. The intersection of your ratings reveals the type of strategies best for your firm - Grow and Build, Hold and Maintain, or Harvest and Divest. For example, if you rated your company as weak both internally and externally, your company should pursue the Harvest and Divest strategies, which as you see include

No Expansion, Divestiture, Retrenchment, Diversification, Improve Weaknesses, or Joint

Venture. If you rated your company as excellent both internally and externally, your company should pursue the Grow and Build strategies. If you rated your company as average both internally and externally, your company should pursue Hold and Maintain strategies. In formulating strategies, an organization should develop both a TOWS Matrix and an IE Matrix.

SAMPLE IE MATRIX
 
 
   
Your Internal Assessment
    Excellent Average Weak
Your External Assessment
Excellent Grow/Build Grow/Build Hold/Maintain
Average Grow/Build Hold/Maintain Harvest/Divest
Weak Hold/Maintain Harvest/Divest Harvest/Divest

 
 

Recommended Strategies:
 
 
Grow & Build - Expand aggressively; Seek control over distributors or suppliers (vertical integration); Capitalize on strengths; Acquire competitors
Hold & Maintain - Expand, but not aggressively; Penetrate market further; Develop new products or modify existing products
Harvest & Divest - Do not expand; Divest; Retrench; Diversify; Improve weaknesses; Form joint ventures

 
 
 

Guidelines for Constructing A QSPM

The third and final matrix to develop in strategic planning is the Quantitative Strategic Planning Matrix (QSPM). A sample QSPM is provided on the next page. The

QSPM is designed to prioritize or determine the attractiveness of the strategies generated in the TOWS and IE matrices. An organization cannot implement all the strategies generated in the TOWS and IE, so the QSPM is needed and used to narrow the number of strategies down by determining the relative attractiveness of each one.

To develop a QSPM, simply list strategies across the top row that you feel are best for the firm to consider, based on your previous TOWS and IE Matrices. List as many strategies as you like. In the sample QSPM on the next page, note that eight strategies are evaluated. (Prepare a second QSPM if you have too many strategies for the top row).

Once listing the strategies in the top row of your QSPM, list your external opportunities/threats and internal strength/weaknesses down the left column. These are the same factors you earlier determined to be most important. Finally, in the QSPM cells rate each strategy according to how well it capitalizes on the particular opportunity or strength, or improves upon the particular weakness, or avoids the particular threat.

Develop the QSPM row by row asking yourself this question: "How attractive is this strategy to my organization in light of the particular factor in the left column?" Use a

1 to 4 scale as indicated where 4 = Very Attractive, 3 = Attractive, 2 = Somewhat Attractive, and 1 = Not Attractive. Assign a value to every cell. Finally, sum the columns. These sums reveal relative attractiveness of all strategies considered the higher the sum the more attractive the strategy. Use this information to establish a final set of strategies or recommendations for your organization to pursue.
 
 
 

SAMPLE QSPM
 
 
 
STRATEGIES
 
1
2
3
4
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7
8
External Opportunities                
1.
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External Threats                
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Internal Strengths                
1.
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Internal Weaknesses                
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TOTAL
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(4 = Very Attractive, 3 = Attractive, 2 = Somewhat Attractive, 1 = Not Attractive)

Use the worksheets provided on the next few pages to prepare a TOWS Matrix, and IE Matrix, and a QSPM for your organization. Transfer the external opportunities/threats and internal strengths/weaknesses that you earlier ranked as most important into your TOWS Matrix and QSPM. Abbreviate those external and internal factors (since space limited) in the TOWS Matrix and QSPM worksheets. List ten strategies in the TOWS Matrix that you feel would benefit the firm most. Match internal with external factors in devising these strategies.
 
 
 
 

 
 
 
 

TOWS MATRIX 

WORK SHEET

STRENGTHS WEAKNESSES
1. 1.
2. 2.
3. 3.
4. 4.
5. 5.
6. 6.
7. 7.
8. 8.
OPPORTUNITIES SO STRATEGIES WO STRATEGIES
1. 1. 1.
2. 2. 2.
3. 3. 3.
4. 4. 4.
THREATS ST STRATEGIES WT STRATEGIES
1. 1. 1.
2
3. 2. 2.
4.
5. 3. 3.
6.
7. 4. 4.
8.
9. 5. 5.

 
 
 
 

IE MATRIX WORKSHEET
 
 
   
Your Internal Assessment
    Excellent Average Weak
Your External Assessment
Excellent Grow/Build Grow/Build Hold/Maintain
Average Grow/Build Hold/Maintain Harvest/Divest
Weak Hold/Maintain Harvest/Divest Harvest/Divest

 
 

Recommended Strategies:
 
 
Grow & Build - Expand aggressively; Seek control over distributors or suppliers (vertical integration); Capitalize on strengths; Acquire competitors
Hold & Maintain - Expand, but not aggressively; Penetrate market further; Develop new products or modify existing products
Harvest & Divest - Do not expand; Divest; Retrench; Diversify; Improve weaknesses; Form joint ventures

 
 

PLACE AN X MARK AT THE INERSECTION OF YOUR INTERNAL AND EXTERNAL EVALUATION OF YOUR COMPANY. WHICH TYPE OF STRATEGIES DOES THAT INDICATE TO BE BEST FOR YOUR COMPANY, G&B OR H&M OR H&D? ________ IN THE SPACE PROVIDED BELOW, LIST EIGHT STRATEGIES THAT YOU FEEL WOULD BENEFIT YOUR ORGANIZATION IN LIGHT OF THIS G&B, H&M, OR H&D DETERMINATION.

STRATEGY 1 ____________________________________________________________________________________

STRATEGY 2 ____________________________________________________________________________________

STRATEGY 3 ____________________________________________________________________________________

STRATEGY 4 ____________________________________________________________________________________

STRATEGY 5 ____________________________________________________________________________________

STRATEGY 6 ____________________________________________________________________________________

STRATEGY 7 ____________________________________________________________________________________

STRATEGY 8 ____________________________________________________________________________________
 
 

QSPM WORKSHEETS (page 1)

From your TOWS strategies and your IE strategies, select eight strategies now that you feel are attractive enough to carry forward to the QSPM. The eight need to be derived from both the TOWS and IE analyses. List the eight strategies below that you feel are best from your TOWS and IE analyses. Elaborate on each strategy as needed:
 

STRATEGY 1 __________________________________________________________________________________
__________________________________________________________________________________

STRATEGY 2 __________________________________________________________________________________
__________________________________________________________________________________

STRATEGY 3 __________________________________________________________________________________
__________________________________________________________________________________

STRATEGY 4 __________________________________________________________________________________
__________________________________________________________________________________

STRATEGY 5 __________________________________________________________________________________
__________________________________________________________________________________

STRATEGY 6 __________________________________________________________________________________
__________________________________________________________________________________

STRATEGY 7 __________________________________________________________________________________
__________________________________________________________________________________

STRATEGY 8 __________________________________________________________________________________
__________________________________________________________________________________
 

  QSPM WORKSHEETS (page 2)

Evaluate the eight strategies listed on prior page by preparing a QSPM worksheet given below and continued on the next two pages. Let strategy numbers 1 to 8 on prior page correspond to strategies 1 to 8 in the top row of your QSPM below. In the left column of your QSPM below and continued, list in abbreviated form the external opportunities/threats and internal strengths/weaknesses you earlier determined to be most important in rank and included in your TOWS Matrix. In the evaluation cells inside the

QSPM, place a 1, 2, 3, or 4 to indicate how attractive that strategy is given the particular factor, where 4 Very Attractive, 3 = Attractive, 2 = Somewhat Attractive, and 1 = Not Attractive. Finally, sum the columns. These sums reveal relative attractiveness of all strategies considered - the higher the sum the more attractive the strategy.
 
 
 
STRATEGIES
 
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External Opportunities                
1. ________________
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SUBTOTALS
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(continued)
 
 
 

QSPM WORKSHEETS (page 3)
 
 
 
STRATEGIES
 
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External Threats                
1. ________________
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SUBTOTALS
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(continued)
 
 

QSPM WORKSHEETS (page 4)
 
 
 
STRATEGIES
 
1
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Internal Strenghts                
1. ________________
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SUBTOTALS
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(continued)
 
 

QSPM WORKSHEETS (page 5)
 
 
 
STRATEGIES
 
1
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6
7
8
Internal Weaknesses                
1. ________________
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2. ________________
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3. ________________
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4. ________________
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5. ________________
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6. ________________
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7. ________________
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8. ________________
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9. ________________
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10. _______________
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SUBTOTALS
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GRAND TOTALS
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(add the four subtotals)
 
 

QSPM WORKSHEETS (page 6)

In the space provided below, list from most attractive to least attractive the eight strategies that your QSPM suggests are best for your organization. This is the most important page in the Strategic Planning Workbook because you are listing the strategies you feel your organization should pursue in the next few years.
 

Most Attractive Strategy
 

Strategy 1

Strategy 2

Strategy 3

Strategy 4

Strategy 5

Strategy 6

Strategy 7

Strategy 8
 
 

Least Attractive Strategy
 
 
 
 
 
 
 
 

Step 6 - Implement Strategies

Step 6 in strategic planning is to Implement Strategies. Implementing strategies is much more difficult than formulating strategies because it involves motivating everyone to execute and perform. Vince Lombardi, the legendary coach of the Green Bay Packers, once said "The best game in the world never blocked or tackled anyone." Of course he was saying you can formulate the best strategy possible, but that does not mean it will result in success. It must be implemented well. The greatest strategy is doomed if implemented badly.

When Dwight Eisenhower took office, former president Harry Truman said "Poor Ike; when he was a general, he gave an order and it was carried out. Now, he's going to sit in that office and give an order and not a dam thing is going to happen." Truman of course was saying that unlike the military, managers and employees in organizations today do not (may not) execute on demand. They are much more likely to execute if have participated in establishing the organization's mission, objectives, and strategies. Managers and employees need to be fully informed about the firm's mission, objectives, and strategies.

Implementing strategies requires a shift in responsibility from top mangers to middle and lower level managers. Strategy implementation requires making decisions in management, marketing, finance, computer information systems, and other areas. Management actions that may be needed to implement strategies include establish goals, devise policies, allocate resources, restructure, reengineer, build new facilities, merge operations, train new employees, manage inventory, minimize resistance to change, develop supportive culture, downsize, develop effective human resources, adapt production/operations process, improve vendor relations, and link compensation to performance. Organizations of all sizes need to link pay of managers and employees with performance of the firm using bonus, stock options, profit sharing, gain sharing, or some other approach. For example, Wal-Mart encourages all employees to purchase stock in the firm and the company purchases an additional fifteen percent more stock for the employee with each purchase.

Marketing issues or actions that may be needed to implement strategies include to alter sales territories, add/reduce salespersons, segment markets, alter pricing, increase advertising/promotion, conduct market research, do test marketing, revamp packaging/warranties, and improve distributor relations.

Some important finance/accounting and computer information systems actions needed to implement strategies include develop budgets, acquire capital, assure cost control, monitor cash flow, create proforma statements, improve investor relations, and develop and manage web sites.
 
 
 
 
 

Strategy Implementation Worksheets

In these worksheets, list some actions that you feel will be needed to implement the eight strategies recommended by your QSPM analysis. Include costs (or savings) needed as well as financial and human resources needed. State each strategy in the top underlined area.
 

Strategy 1 __________________________________________________________________________________
 
 

Actions and Resources Needed To Implement /Estimated Cost

1. ___________________________________________________________________________________
_____________________________________________________________________________________

2. ___________________________________________________________________________________
_____________________________________________________________________________________

3. ___________________________________________________________________________________
_____________________________________________________________________________________

4. ___________________________________________________________________________________
_____________________________________________________________________________________

5.  ___________________________________________________________________________________
_____________________________________________________________________________________
 
 

Strategy 2 ___________________________________________________________________________________

Actions and Resources Needed To Implement /Estimated Cost

1.  ___________________________________________________________________________________
_____________________________________________________________________________________

2.  ___________________________________________________________________________________
_____________________________________________________________________________________

3.  ___________________________________________________________________________________
_____________________________________________________________________________________

4.  ___________________________________________________________________________________
_____________________________________________________________________________________

5.  ___________________________________________________________________________________
_____________________________________________________________________________________
 

Strategy 3 _____________________________________________________________________________________
 

1.  ___________________________________________________________________________________
_____________________________________________________________________________________

2.  ___________________________________________________________________________________
_____________________________________________________________________________________

3.  ___________________________________________________________________________________
_____________________________________________________________________________________

4.  ___________________________________________________________________________________
_____________________________________________________________________________________

5.  ___________________________________________________________________________________
_____________________________________________________________________________________
 
 
 

Strategy 4 ___________________________________________________________________________________

Actions and Resources Needed To Implement /Estimated Cost

1. ___________________________________________________________________________________
_____________________________________________________________________________________

2. ___________________________________________________________________________________
_____________________________________________________________________________________

3. ___________________________________________________________________________________
_____________________________________________________________________________________

4. ___________________________________________________________________________________
_____________________________________________________________________________________

5. ___________________________________________________________________________________
_____________________________________________________________________________________
 
 

Strategy 5 _____________________________________________________________________________________

1. _________________________________________________________________________________________
___________________________________________________________________________________________

2. _________________________________________________________________________________________
___________________________________________________________________________________________

3. _________________________________________________________________________________________
___________________________________________________________________________________________

4. _________________________________________________________________________________________
___________________________________________________________________________________________

5. _________________________________________________________________________________________
___________________________________________________________________________________________
 

Strategy 6 __________________________________________________________________________________

Actions and Resources Needed To Implement /Estimated Cost

1. _________________________________________________________________________________________
___________________________________________________________________________________________

2. _________________________________________________________________________________________
___________________________________________________________________________________________

3. _________________________________________________________________________________________
___________________________________________________________________________________________

4. _________________________________________________________________________________________
___________________________________________________________________________________________

5. _________________________________________________________________________________________
___________________________________________________________________________________________
 
 

Strategy 7 __________________________________________________________________________________

1. _________________________________________________________________________________________
___________________________________________________________________________________________

2. _________________________________________________________________________________________
___________________________________________________________________________________________

3. _________________________________________________________________________________________
___________________________________________________________________________________________

4. _________________________________________________________________________________________
___________________________________________________________________________________________

5. _________________________________________________________________________________________
___________________________________________________________________________________________
 

Strategy 8 __________________________________________________________________________________

Actions and Resources Needed To Implement /Estimated Cost

1. _________________________________________________________________________________________
___________________________________________________________________________________________

2. _________________________________________________________________________________________
___________________________________________________________________________________________

3. _________________________________________________________________________________________
___________________________________________________________________________________________

4. _________________________________________________________________________________________
___________________________________________________________________________________________

5. _________________________________________________________________________________________
___________________________________________________________________________________________
 
 
 

Step 7 - Evaluate Strategies

Strategy evaluation is critical for assuring that objectives are being achieved. Even the best formulated and implemented strategies become obsolete as a firm's external and internal environments change. Managers desperately need to know when strategies are not working well. Yet no one likes to be evaluated too closely. Evaluating strategies involves three activities:

1. Review underlying bases of strategy

2. Measure performance and make comparisons

3. Take corrective actions.

The first of these activities is somewhat new in that organizations today are not waiting to see the bottom line financials to determine whether the strategies are effective, but in fact are assessing the underlying external and internal factors to see if changes have occurred there that warrant mission/objective/strategy changes.

Strategy evaluation is essential for all organizations. Strategy evaluation activities should be widely understood and supported, should trigger a review of mission/objectives/strategies, should involve all managers and employees, and should not be overbearing. Strategy evaluation should be economical and meaningful, should provide a true picture, should provide timely information, should foster mutual trust, should be simple, and should consist of three activities.

In the next worksheet, list ten actions that you feel will be needed to effectively monitor progress being made toward achieving the objectives and strategies you have recommended herein.
 
 
 

Strategy Evaluation Worksheet

Actions Needed To Evaluate And Monitor Strategies

1. _________________________________________________________________________________________

2. _________________________________________________________________________________________

3. _________________________________________________________________________________________

4. _________________________________________________________________________________________

5. _________________________________________________________________________________________

6. _________________________________________________________________________________________

7. _________________________________________________________________________________________

8. _________________________________________________________________________________________

9. _________________________________________________________________________________________

10. ________________________________________________________________________________________