::strategic planning
 

This event took place in June 2003. It was a training organized by Microsoft and Hill International about the strategic planning. The presenter was Dr. Othmar Hill and his assistant Vera Djeric.  

We sat in circle. As an introduction, Mr. Hill asked each of us to introduce himself, to give a mark in percentage of mood he/she is in (mood barometar) and to tell about the expectations regarding the training.

Then, he gave is cards to write individual problem in daily management making thus a catalogue of problems. On the table, he clustered problems identifying the main problem fields of the group: Lack of management and Internal Relationship Cooperation.

Global Culture Revolution
- everybody can choose where or when will he work
- people work in home
- gathering on projects

We are living in a value light economy. It is a nomadic economy (you carry everything with yourself: your notebook, PDA, cell phone).

Profit

Profit is the triangle above the water (like the tip of the iceberg) and is the  "product" of the three triangles under the water:

- Internal climate,
- strategy - know-how - product,
- quality of external relations

We should invest in those three parts.

Success is:

- 25% strategy
- 50% people
- 25% spirit

Strategic Planning

Planning the next few years is of the utmost importance for any organization. Especially in highly dynamic markets, management must know in which direction the business should be developed. Chaos theory is a new technique for accomplishing your goals better: Using vision games and systematic evaluations, a clear view of the future can be created.

Chaos Theory

- Principles of Survival in Nature & Organization
   - Fractal Self-organization (self reflecting). It means that the same system is spread
      throughout the whole organization

   - Butterfly Effect  (when the butterfly in Africa swings with its wings it causes hurricane in North America)
      It means that 1x100% change is impossible, but 100x1% change is possible. It is better
      to make many small changes.

   - Rapid Feedback Loop
     Manager knows on the Thursday afternoon that the week's scheduled plan is almost done so he
     decides that the workers can work shorter time on Friday
 

MAIN TASK OF THE TOP MANAGEMENT

We should invest 5% of the time for the planning of the next year's business (it means 10 full days per year).

Classic planning is to look what happened last year (the business was going well last year, let's employ more people). It is wrong.

Strategic planning is to look forward, to examine multiple scenarios and to plan where we will be in the next 3 years.

Excercise:
Vision game

The group is split into two parts. The excercise is to visualise by drawing an optimistic and pessimistic scenario for the future of the project. (Why through pictures? Right side of the brain - creativity - expressed through drawing.)

During this our session we choose, as the project, Human Resources Satisfaction (flats as compensation for keeping the workers satisfied).

Optimistic market scenario:
Pessimistic market scenario:

Optimistic organisational scenario:
Pessimistic organisational scenario:

In the plenary session both groups present their results and explain their drawings.

Realistic Picture of the Future: The group reduces the extreme positive and negative inputs to a realistic point of view.

TIME MANAGEMENT

Parreto Principle - 20% of time solves 80% of all the important things, remaining 20% consumes 80% of the time. We should always look and evaluate what is important and easy.