Text of Module 6 Environmental Scanning and Identification of Strategic Issues & Challenges
1. ME 217/DM 214 Strategic Planning
2. Prof. Jo B. Bitonio, DPA Princessita M. Fontanilla Michael
John Fontanilla Reporters/Discussants
3. If I had an hour to solve a problem and my life depended on
the solution, I would spend the first 55 minutes determining the
proper question to ask, for once I know the proper question, I
could solve the problem in less than five minutes.
4. How to identify Strategic Issues?
5. GETTING STARTED: IDENTIFYING ISSUES FACING THE ORGANIZATION
HOW TO IDENTIFY STRATEGIC ISSUES KEY ISSUES/CHALENGES IN PANELCO
III POSSIBLE WAYS TO RESOLVE THE STRATEGIC ISSUES
6. IDENTIFYING THE STRATEGIC ISSUES FACING THE ORGANIZATION
This step defines and describes the issues at hand succinctly,
pinpoints the factors that make a certain issue a fundamental
challenge.
7. IDENTIFYING THE STRATEGIC ISSUES FACING THE ORGANIZATION In
Brysons Strategic Planning Process, this phase will allow the
organization to determine a list of issues they face, divide that
list into categories of strategic or operational and finally,
arrange these issues in order, such as priority, logical or
temporal. (Bryson, 2004)
8. IDENTIFYING THE STRATEGIC ISSUES FACING THE ORGANIZATION
Identifying the strategic issues will help the stakeholders
determine what is most important to an organization and will help
them formulate strategies to address these issues.
9. WHAT IS THE DIFFERENCE BETWEEN ISSUE AND PROBLEM? Some
business managers mistakenly use the term issue and problem
interchangeably; however, doing so may complicate the daily
decision making processes by lumping all issues and problems
together and possibly make a bad situation worse. Separating issues
from problems helps to prevent smaller issues from becoming
problems. This business practice is so important that there is an
entire management discipline predictably called, issue management
(IM).
http://www.studymode.com/essays/Issues-Vs-Problems-648552.html
10. WHAT IS THE DIFFERENCE BETWEEN ISSUE AND PROBLEM? The Dow
Jones says that successful issue management depends on addressing
concerns before they become full blown problems. 1. Therefore, it
is deduced that issues are smaller, less threatening and require
minimal effort to find resolution but left unchecked could expose
the organization to greater risk. There is an analogy to help put
this concept into proper perspective forgetting your lunch is an
issue, but losing your job is a problem. 2. Therefore, the
difference between an Issue and a problem can be explained this
way, Problems are solved. Issues need to be resolved. To solve is
to explain and to resolve is to separate a thing into its component
parts or elements, then determine a course of action. (Jaques 2007.
P 36, 37)
11. HOW TO IDENTIFY STRATEGIC ISSUES 1. Brainstorm Potential
Strategic Issues Review vision, company values, opportunities,
strengths as well as threats. Frame issues in the form of questions
2. Develop an Understanding Why an Issue is Strategic Discuss each
identified issue Determine which issues are critical or strategic
Test for strategic quality of an issue.
12. TEST FOR STRATEGIC QUALITY OF AN ISSUE Does It: Pose a
threat? Present an opportunity? Require significant change? Involve
conflict/tension between choices? Tend to be complex? Generally
project well into the future?
13. 3. Determine the consequences of not addressing an issue:
Each strategic issue will generally fall into the following
categories: a) No action is currently required, but the issue
should be monitored for future action b) Action can be determined
through strategic planning process. c) The issue appears urgent and
requires an important response.
14. Failure to address the identified strategic issues
eventually results in the realization of an external threat, lost
opportunity, the lingering or worsening of an identified problem
and ultimately a failure to achieve the corporate vision.
15. 4. Consolidate overlapping or related issues: Combine
related issues Determine how are they related The fewer the issues,
the better.
16. 5. Arrange issues into an ordered list: Three ways: a)
Logical order b) Impact order c) Temporal order
17. ABSTRACT: The soul of Strategic Planning is to identify the
Strategic Issues Facing the Organization. How? - Brainstorming
(Strengths and Weaknesses) - Understanding its importance and
relevance (Urgency) - Know its consequences (Pros and Cons) -
Consolidate concerns (Arrange in an ordered list) - Address the
issue
18. THE REAL SCENARIO
19. KEY ISSUES/CHALLENGES 1) ISSUES FACING THE COOPERATIVE:
Deregulation of Power Industry Passage of R.A. 10531, otherwise
known as An Act strengthening the NEA, further amending for the
purpose of P.D. 269, as amended Rampant pilferage/illegal
connection Increasing Account Receivables Exposure from local
politics Numerous reportorial requirements by the government
agencies
20. KEY ISSUES/CHALLENGES 2) ISSUES FACING THE MANAGEMENT/HEAD
OFFICE: Clamors against the implementation of the Reorganization
Employees Union Advocacies Subdued Interpersonal relationship among
heads and associates Controversies as to the duties and functions
of the BODs and the Management Partial implementation of policies
Technological Advancement is not one of the priorities
21. KEY ISSUES/CHALLENGES 3) ISSUES FACING THE AREA
OFFICES/SUB-OFFICES: Weak customer relations Diverse interpretation
of policies and/or other rules and regulations of the cooperative
Presence of language barrier
22. DISTINGUISH ISSUES & PROBLEMS
23. Environmental Analysis Issues Problem 1. Deregulation of
Power Industry 2. Passage of R.A. 10531, otherwise known as An Act
strengthening the NEA, further amending for the purpose of P.D.
269, as amended 3.Rampant pilferage/illegal connection 4.
Increasing Account Receivables 5. Numerous reportorial requirements
by the government agencies
24. Environmental Analysis Issues Problems 6. Clamors against
the implementation of the Reorganization 7. Employees Union
Advocacies 8. Subdued Interpersonal relationship among heads and
associates 9. Controversies as to the duties and functions of the
BODs and the Management 1o. Partial implementation of policies 11.
Technological Advancement is not one of the priorities
25. Environmental Analysis Issues Problems 12. Weak customer
relations 13. Diverse interpretation of policies and/or other rules
and regulations of the cooperative 14. Presence of language barrier
15. System lost too high (14%) 16. Violation of the BOD Term of
office 17. Too much Board meetings Note: 15, 16, 17 lifted from CDA
Findings during the inspection
26. DISTINGUISH BETWEEN TASK AND SOCIETY ENVIRONMENT
27. Environmental Analysis Task Environment Societal
Environment 1. Deregulation of Power Industry 2. Passage of R.A.
10531, otherwise known as An Act strengthening the NEA, further
amending for the purpose of P.D. 269, as amended 3.Rampant
pilferage/illegal connection 4. Increasing Account Receivables 5.
Numerous reportorial requirements by the government agencies
28. Environmental Analysis Task Environment Societal
Environment 6. Clamors against the implementation of the
Reorganization 7. Employees Union Advocacies 8. Subdued
Interpersonal relationship among heads and associates 9.
Controversies as to the duties and functions of the BODs and the
Management 1o. Partial implementation of policies 11. Technological
Advancement is not one of the priorities
29. Environmental Analysis Task Environment Societal
Environment 12. Weak customer relations 13. Diverse interpretation
of policies and/or other rules and regulations of the cooperative
14. Presence of language barrier 15. System lost too high (14%) 16.
Violation of the BOD Term of office 17. Too much Board meetings
Note: 15, 16, 17 lifted from CDA Findings during the
inspection
30. PRIORITIZATION
31. Task Environment Ranking 1. Rampant pilferage/illegal
connection 2.. Increasing Account Receivables 3. Numerous
reportorial requirements by the government agencies 4. Clamors
against the implementation of the Reorganization 5. Employees Union
Advocacies 6. Subdued Interpersonal relationship among heads and
associates 7. Controversies as to the duties and functions of the
BODs and the Management 8. Partial implementation of policies 9.
Technological Advancement is not one of the priorities 10. Weak
customer relations
32. Task Environment Ranking 11 . Diverse interpretation of
policies and/or other rules and regulations of the cooperative 12.
Presence of language barrier 13. System lost too high (14%) 14.
Violation of the BOD Term of office 15. Too much Board meetings
Rank the order of importance from 1-15 - most important to less
important
33. Society Environment Ranking 1. Deregulation of Power
Industry 2. Passage of R.A. 10531, otherwise known as An Act
strengthening the NEA, further amending for the purpose of P.D.
269, as amended
34. HOW TO ADDRESS STRATEGIC ISSUES? Areas to look at: I.
Achievements and Failures (Net Profit, Staff Retention, Gained
Market/Lost Clients, Low Sales, Low Efficiency) II. Profitable
Products and Services III. Financial Ratios (Key Ratios,
Benchmarks, Targets) IV. External Forces (PEST) by Elsa Richards
(EL)
35. Profitable Products and Services Illustration Company A
Company B Company C Gross Sales 125M 275M 75M Expenses 50M 280M 10M
Gross Profit 75M -5M 65M
36. External Factors: P POLITICAL E ECONOMIC S SOCIAL T
TECHNOLOGICAL E ENVIRONMENT L LEGAL
37. WHERE DO YOU BELONG? There are 3 kinds of people 1) those
who make things happen; 2) those who watch things happen; and 3)
those who wonder what happened.
