Strategic Planning

Strategic Planning – Process 1. Update the strategic plans from last year. 2. Decide on the assumptions and guidelines and accordingly update SP.(growth rate, GDP, RM prices, Cyclical movements) 3. First Iteration of SP – first cut of SP by BU managers, incorporate more effective & efficient propositions than current plan, if any 4. Analysis of SP – (by Planning Staff at Corporate level.) to verify consistency of individual plans with corporate objectives. If there is GAP - improvement in BU’s plan or Acquisitions or Review Corporate Obj. 5. Second Iteration of SP – Analysis may suggest revision of any of the BU plans but may lead in revising the assumptions/guidelines and thereby it will affect the aggregate SP-all BU plans 6. Final Review and Approval – by CEO & BOD “Characteristics of Service Industry Determines the nature of MCS to be followed and strategy to be used to implement the said MCS.” Service Industry Differs from Mfg. Industry in terms of • Inventory building - cannot store the product • Different resources requirements - labor intensive • Quality of product – difficult to control (Relative concept and Professional Dependent) • Pricing of product – No sound cost base • Multi-unit organization setup – fast food chain Characteristics – 1. Very few tangible assets à ROI may be meaningless 2. Special class of labor à seeks more autonomy in working. 3. Input and output measurement is difficult à difficult to arrive at effectiveness and efficiency of a professional. 4. Usually of small size à Viability of elaborate MCS is in question. 5. Marketing of the services is usually informal à may lead to problem in arriving at inputs of revenues. 6. Cost of services is of flexible nature such as traveling expenses, communication expenses therefore building standards is difficult process. Performance Parameters for a Insurance Industry 1. Time and cost budgets 2. Revenue generated (to rank performance) 3. Quality control trough – Metrics such as Client Satisfaction, Number of complains and average complains received, Complain disposal rate, Claim settlement period (average) 4. Client profile of a branch/center 5. Product range sold/promoted 6. Client relationship and dealer relationship 7. Promotional campaigns undertaken 8. Number of defaulting Clients and Amount overdue 9. Number of policies revived 10. Number and amount of claims settled Performance Parameters for a Hospitality Industry 1. Occupancy rate, spread over a period 2. Revenue generated out of main activity 3. Revenue generated out of allied activities – cousin, bar, shops, parlor, boutique 4. HR budget 5. Cost per customer/per day – for cost control 6. Promotional efforts undertaken 7. Quality control through – customer feedback, customer referrals, repeat customers 8. Booking register position 9. No of tie-ups, corporate clients

10. Number of complains received and resolved 11. Time to taken to attend and render the desired service Performance Parameters for a Transportation Industry 1. Average plying/idle time, spread over a period 2. HR cost and fuel cost budget 3. Maintenance cost budget 4. revenue generated per vehicle/per employee 5. Number of customer complains 6. Cost of complain redress (Average and Total) 7. Number of breakdowns, accidents, insurance claims, average recovery period 8. Employee relationship/loyalty build 9. Average waiting time/loading/unloading 10. time schedule, fleet schedule management 11. Average load carried V/s Ideal load capacity Performance Parameters for a Tourism Industry 1. Number of customers, Revenue generated and spread over a period 2. Quality control through – Customer referrals, repeat customers 3. Time taken to attend and render the desired service 4. Cost and revenue per package/tours 5. Package mix 6. Allied services provided – pick-up, drop, food, beverages 7. Promotional campaigns undertaken 8. CRM and Liaison maintained 9. Average number of customers or revenue per package V/s Ideal numbers 10. Discounts offered and revenue spurred 11. Number of complains received and average time taken to resolve Organizations taking up Projects – Characteristics 1. Single objective – “ to built a flyover or supercomputer” 2. Project organization and project management 3. Management’s focus is project. 4. Need for trade off is vital - scope, schedule and cost. 5. Less Reliable standards 6. Frequent changes in plans. 7. Different rhythm in implementation of project 8. Greater external Environmental Influence Health Services Organization-Characteristics Availability & Cost is primary concern ,the performance efficiency comes latter. 2. Wide variety in Service Mix of facilities – many options are in offing. (Polyclinics, Total Health Care Centers) 3. Third party payers – the costs have being subsidized by govt., NGO institutions. 4. Professional’s loyalty is primarily to his profession rather than organization. 5. Quality control possible through peer review or through outside review agency. Financial Service Organization 1. Monetary assets – primary resource 2. Time period for transaction may range from hours, days to number of years – unsound base for input assessment 3. Risk and Rewards based trade –therefore knowing the risk component of transaction one can decide the reward. 4. Technology plays significant role – Automated teller machines -, Electronic market places for securities.