Strategic Planning and Dynamic Management

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Strategic Planning and Dynamic Management

The Luffy Framework is divided into two segments, one devoted to Strategic Planning and the other to Dynamic Management. Both segments are composed of a number of blocks which represent areas of management focus. Strategic Planning consists of those areas that represent and require active planning. Dynamic Management consists of those areas which represent and require reactive management.

Strategic Planning is independent of Dynamic Management whereas Dynamic Management is in response to the setup and design of the Strategic Plan. Don’t worry, Jack and Jill are going to help me explain this.

To best explain these concepts and others throughout these pages, I want to introduce Jack and Jill, two kids that are trying to start a lemonade stand. I will turn often to these two in order to illustrate and clarify the points I am trying to make. While a lemonade stand might sound simple and in no way is meant to compare with what you might be managing, the framework remains the same. You just have a lot more to fit into the framework then they do.

Jack and Jill’s plan for their lemonade stand includes what they want to accomplish, how they will accomplish it, what they need to know how to do, what they will actually do, and what they need to have in order to do it. These are the blocks within Strategic Planning. You can build a actionable plan based on the answers to those questions.

Let’s see Jack and Jill’s answers to these Strategic Planning questions.

  1. What do Jack and Jill want to accomplish? “Objectives”

A: Jack and Jill want to make $50 by providing fresh lemonade to their neighbors and friends.

  1. How will they accomplish it? “Courses of Action”

A: They will open a lemonade stand in front of Jack’s house.

  1. What will they have to do? “Activities”

A: They will set up and take down the stand, make lemonade, serve it, count money, and make change.

  1. What do they need to know how to do? “Capabilities”

A: They need to know how to make lemonade, market the lemonade, and count money.

  1. What will they need to have in order to do it? “Resources”

A: They will require a table, ingredients, containers, serving cups, change jar, chairs, 5 days of time, and a sign board.

Based on the answers above you have the basis of starting the lemonade stand. In a perfect world this would be sufficient to have a successful lemonade stand. However the world is imperfect and Jack and Jill will find themselves facing a host of challenges as soon as they start up. It is these challenges and the management of them that fall under Dynamic Management.  Dynamic Management brings with it a new set of questions that may require actionable solutions “tactics” or even modification within the blocks of Strategic Planning.

First let’s assume that Jack and Jill are able to satisfy all of the requirements they set out for themselves in the Strategic Planning segment.

Let’s see this set of Dynamic Management questions.

  1. What is the market, weather, competition, etc like? “Environment”

A: Crowded street, summertime, a fruit juice stand down the street, etc.

  1. How is the lemonade stand doing currently? “Current Situation”

A: N/A

  1. What is affecting how the lemonade stand is currently doing? “Current Issues”

A: N/A

  1. What can we do to improve the performance of the lemonade stand? “Tactics”

A: N/A

As you can see these questions provide a snapshot of the lemonade stand at any point in time. Since they have not opened yet they can only really plan a bit around the conditions they observe, which is the market, weather, etc.

Let’s go to the same lemonade stand three days later with the same questions.

  1. What is the market, weather, competition, etc like? “Environment”

A: Crowded street, summertime, a fruit juice stand down the street, etc.

  1. How is the lemonade stand doing currently? “Current Situation”

A: The lemonade stand has only made $13 dollars so far this week.

  1. What is affecting how the lemonade stand is currently doing? “Current Issues”

A: It has been raining the last two days.

  1. What can we do to improve the performance of the lemonade stand? “Tactics”

A: Move the lemonade stand to the back porch so people can stay dry while enjoying the lemonade. Offer rainy day discounts to increase sales.

As you can see Dynamic Management is all about observing and reacting to the ever shifting realities that challenge the Strategic Plan. Each time you ask these questions, with the possible exception of the environment, the answers will most likely be different.

It is not exceptionally difficult to come up with answers to Strategic Planning questions. The answers to the Strategic Planning questions earlier are quite applicable regardless of where Jack and Jill set up the lemonade stand. Successful Dynamic Management ensures that the lemonade stand is just as successful in Alaska in the middle of winter, as it is in Florida in the middle of a heat wave.

Let’s take a look at how I define Vision and Mission, within the context of the Luffy Framework, before we start looking at blocks that make up the Strategic Planning segment in the next section.

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