United States Office of Policy, EPA/230/R-92/004
Environmental Protection Planning and Evaluation June 1990
Agency Washington, DC 20460
xvEPA Overview of Strategic
Planning at the
Environmental Protection
Agency
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EPA/230/R-92/004
June 26,1990
Overview of Strategic
Planning at the Environmental
Protection Agency
Office of Policy, Planning and Evaluation
U.S. Environmental Protection Agency
Washington, DC 20460
Printed on Recycled Paper
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TABLE OF CONTENTS
WHAT IS STRATEGIC PLANNING? 1
WHY STRATEGIC PLANNING AT EPA? 2
HOW DO WE DEVELOP A STRATEGIC PLAN? 4
IMPLEMENTATION 5
THE STRATEGIC PLANNING PROCESS
FOR FY 1992 AND FY 1993 10
COMMON QUESTIONS 12
CREATING A DOCUMENTED PLAN 17
CALENDAR 25
SUGGESTED FORMAT 26
BIBLIOIGRAPHY 27
EXHIBITS:
THE STRATEGIC PLANNING PROCESS 8
THE ENVIRONMENTAL SCAN 9
STRATEGIC PLANNING AFFECTS ALL ASPECTS OF THE
ORGANIZATION 13
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WHAT IS STRATEGIC PLANNING?
EPA is using strategic planning to chart its course, set priorities,
^^^1^^^^^_____^___ make decisions, and manage
resources to achieve the Agency's
Strategic planning is: mission. Used frequently in the
private sector and other government
* A clear and simple vision of agencies, strategic planning means
what we are striving to making choices about what we will
...
accomplish. ancj ^^ not ^Q .. cnoices regarding
our purpose and activities. It is a
* Choices about what we will management tool, a gradual and
and will not do - choices iterative process for effecting
regarding our purpose and organizational change, and has the
activities. potential to involve all levels of
MH^MM^^^^MH^^H^M^^^M management.
The goal of strategic planning is to improve the way EPA -- from
existing programs to new initiatives, and from headquarters to regional
offices - does its job. The outcome of strategic planning is a shared
vision of what we are striving to ^^^^^^^^^^^^^^^^^^^
accomplish, and the will to take the
steps necessary to get there. Strategic Thinking strategically requires
planning can be undertaken at the questioning assumptions, and
Agency, Region, program, office, taldnS nothing for
division and branch levels. ^^^^^^^^^^^
The EPA strategic planning process is linked to the budget
formulation process, so that strategic decisions drive the distribution of
funds. It also links to everyday management decisions, because it underlies
the setting of priorities and the allocation of scarce human and financial
resources. Operational planning translates the themes and vision of the
strategic plan into organizational reality.
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WHY STRATEGIC PLANNING AT EPA?
Administrator William Reilly initiated the strategic planning process
in 1989 to set clear priorities and effectively manage the challenges facing
^^H^M_i^^M^M EPA. The eff°rt was launched to
help us set a thoughtful and
The challenges facing EPA are responsible course for the Agency
enormous, and it is essential over the long term> Qne that [s
that the Agency set its own influenced less by specific crises and
agenda and keep its own more by professional judgment
scorecard. We must make regarding actions that are likely to
decisions while looking to the bring the greatest benefit over time.
future rather than to the past.
^M^HMMMBiMMBMHBi^^BMM Successfully implemented, strategic
planning can influence the Agency in
many ways. For example, strategic planning can help us to focus first on
areas of the greatest risk and risk reduction potential, and to integrate
pollution prevention techniques into our decision making. It can help us
think across statutes in terms of tangible ^^^^^^^^^^^^^^^^^^_
environmental results. Furthermore,
strategic planning can help direct Strategic planning directs
budgetary decisions, and determine, our maJor activities.
anticipate, and meet human resource __^MHH^_i^^_^^_M_
needs. It can help direct research
priorities, focus management information systems, develop regulatory
agendas and priorities, and assess and meet statutory requirements. It will
help us communicate the results of our work to those in and outside the
Agency (including EPA HQ, EPA Regions, States, Congress,
environmental groups and industry.).
Strategic planning can be the linchpin of good public sector
management because it provides the kind of focus that accomplishment
and performance require in a large organization. While good strategic
planning is very difficult, the barriers to developing a useful strategic plan
are not insurmountable.
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Strategic planning will help EPA:
o Focus on risk and risk reduction potential.
o Establish priorities and set future course.
o Allocate resources cost-effectively.
o Anticipate and meet human resource needs.
o Direct research and development priorities.
o Participate more effectively in the regulatory
development and legislative processes.
o Integrate cross-cutting themes, like preventing
pollution, strengthening enforcement, and
building international leadership into everyday
decision-making.
o Communicate effectively with internal and
outside constituencies.
o Break down institutional barriers and
bureaucratic logjams, and identify and-resolve
problems.
o Turn ideas into organizational realities.
o Get environmental results.
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HOW DO WE DEVELOP A STRATEGIC PLAN?
The general framework (see Exhibit 1) for a strategic plan has six
interwoven, dynamic parts:
1. Mission: Define our purpose, or mission: What services do
we (the unit doing the planning) offer? What is our business?
2. Critical Issues Assessment: Allows us to develop an
understanding of our organization, the environment in which it
functions, and issues which affect performance -- all crucial
information to planning for the future. It seeks to answer
questions such as: What are our strengths and weaknesses?
Opportunities? Threats? Who are major stakeholders?
3. Goals and Objectives: Articulate our goals (to accomplish our
mission), and objectives (more specific, to achieve goals).
4. Strategies: Use knowledge of organizational strengths and
weaknesses and external constraints (critical issues) to develop
strategies (also referred to as strategic options, policy options,
choices or approaches) to meet goals and objectives. What
alternative policies are available, and what are the advantages
and disadvantages of each?
5. Decision and Action: Decide which strategy(ies) to pursue,
and determine the specific activities required to implement it
(them). What mix of activities meets our goals and objectives,
and is the most practical course of action given what we know
about our organization? Does the course of action we have
chosen take into account our expectations regarding the
future?
6. Monitoring and Modification: Monitor activities and adjust
strategies, objectives or goals as necessary, on a regular basis.
Update critical issues assessment to account for changing
circumstances.
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IMPLEMENTATION
As the first step in a management process, strategic planning needs
to be supported by an integrated management system that ensures
accountability, and continual monitoring of results. Many strategic
planning efforts derail when it comes to putting them into practice. When
__^^_^^_^^^^^^^^^^ strategies lack the understanding,
support and commitment of key players.
Strategic planning means Qr where organizations are not equipped
developing a process, and to implement them, they end up on a
carrying it through from shelf> victims of paper rather than living
conception to results. processes. Writing the plan is only one
^_M^__^___H. step; changing the way an organization
like EPA does business as a result of
the plan is a much more involved process. It is therefore important to
focus on the process by which strategic planning evolves.
The following identifies four key components of successful
implementation:
TOP LEVEL SUPPORT AND INVOLVEMENT
FULL PARTICIPATION OF DECISION MAKERS
COMMUNICATION OF PURPOSE, PROCESS, AND
RESULTS TO ALL MEMBERS OF THE AGENCY
COMMITMENT AND FLEXIBILITY TO SEE THINGS
THROUGH
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LEADERSHIP
Top level involvement and support are crucial to a successful
strategic planning process. A strong leader sets the tone for changing
organizational culture, providing clear direction for future accomplishments
and ensuring accountability. He/she convenes, and sets the boundaries of.
the strategic planning process. By consistently emphasizing the importance
of making choices and setting priorities, top level management can create
conditions conducive to change, and amenable to taking risks. This is true
whether the strategic planning effort is being undertaken at the Agency,
Region, program, office, division or branch level.
PARTICIPATION
The key to successful planning often lies in determining who should
participate and how. The primary responsibility for developing strategy
^^^^^^^^^^^^^^^^^^ belongs to those managers directly
responsible for implementation. The
The notion that an critical role of non_iine staff is to
effective strategy can be facilitate the process whereby decision
constructed by someone in makers leam to approach their
an ivory tower is totally responsibilities strategically.
bankrupt" Business Week
9/17/84 Developing capacity for strategic
^^^MM^^^^^^^^^^^M thinking is relevant to individuals at all
levels of the organization. It is
therefore important to include a broad spectrum of participants in strategic
planning efforts. Participation has a large impact on the quality of
decisions and ownership in them, and also reduces resistance to change.
Who has information that would be useful to plan development? Who has
a stake in implementation? Who could make the planning effort succeed
or fail? In government organizations, strategies that call for changes in
policy and operations may require support from outside officials.
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COMMUNICATION
Communicating the purpose, process, and results of the strategic
plan to the entire organization is key to its success and acceptance.
Recording, tracking, and communicating
decisions therefore deserve considerable
attention. Everyone in EPA, or in the
unit undertaking a strategic plan, needs
a broad understanding of why there is a
»_«__. strategy, why it is this strategy, and how
it affects what the organization does.
Continual reinforcement of the "strategic thinking" message is critical to
avoid reverting back to the old way of doing things. In addition, the focus
provided by the strategic plan will improve communication of
organizational purpose and goals both inside and outside the Agency.
We need a shared
understanding of what we
are doing and why.
COMMITMENT AND FLEXIBILITY
Strategic planning is DYNAMIC, ONGOING, ITERATIVE. It
therefore requires adjustment, and a hefty dose of stick-to-it-iveness. Not
only must the leaders of the strategic ^^^^^^^^^^^^^^^^^^
planning initiative demonstrate constancy
of purpose, but also they must be openly
amenable to change. Strategic planning
is not a quick fix: rather it is a patient
and disciplined process for setting a
deliberate course of action. The process
also must be viewed as systematic and
fair.
With constancy of purpose,
instability and change are
not threats to the strategic
planning process.
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Exhibit 1
THE STRATEGIC PLANNING PROCESS
Agreement
to Launch
Planning Process
Internal
Organizational
Mission
Critical Issues
Assessment
External
Scan
Goals and
Objectives
Strategies/
Approaches/
Options
Activities
(Operating Plan)
\
Monitoring
and Measuring
Success
J Adapted from Bryson. Freeman & Roering. 1000
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Exhibit 2
CRITICAL ISSUES ASSESSMENT
Strengths
\
Organizational
Culture
Organizational
Structure
Human
Resources
Financial
Resources
T
Internal
Scan
A
Present
Strategy
Data
Resources
Weaknesses
Opportunities
Environmental
Trends
Political. Economic and
Social Trends
Public
Opinion"
Statutory
Constraints
External
Scan
I
Stakeholders
Trends in
Technology
Threats
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THE STRATEGIC PLANNING PROCESS FOR FY 1992 AND FY 1993
EPA's Strategic Planning Process1
In November 1989, the media offices - Air and Radiation, Water, Solid Waste
and Emergency Response, and Pesticides and Toxic Substances - completed four-year
strategic plans outlining their goals, objectives and activities. These major efforts
brought together managers across each program to discuss future direction, priorities,
and problems.
The agenda of the 1990 Annual Planning Meeting, held at Easton, MD in late
February 1990, was built almost entirely around the four media strategic plans. In
addition, Regions 1, 3 and 10 v^re invited to present their risk-based priorities and the
results of their comparative risk inalyses. The meeting itself was an important step
toward achieving implementation of the four year plans. Work groups for each media,
made up on managers from national program offices, support offices and regions,
identified high priority areas, which will be emphasized in the FY 1992 budget. To
date, this process has provided direction for budget formulation, and for allocating pur
limited resources to the areas of greatest risk and risk reduction potential, as well as a
new context for discussing our budget with OMB and the Congress.
The first round of strategic planning that the Agency undertook was designed to
be media based and to influence the FY 1992 budget. As we look toward FY 1993,
the strategic planning process will have broader objectives, and proceed on three levels:
media planning, support office planning and regional planning. As strategic planning
develops at the Agency, efforts are continuing on many other levels. We are linking
planning, budgeting and management systems and processes to assure that priorities are
reflected in practice. We are developing Agency-wide plans for global warming and
enforcement, and for other cross-cutting and multi-media issues. The Agency is also
re-examining its Annual Guidance process and program tracking systems to help them
reflect the results of strategic thinking and management. Broad participation in
strategic planning efforts across the Agency, and coordination among these efforts, will
be critical to our success.
1 Past EPA Planning Efforts; Traditionally, planning at EPA has meant limited
discussion of long term goals, objectives and measures of progress. Budgets are often
developed on the basis of past years - without systematic review in the context of
environmental priorities, risk, risk reduction potential, and other important Agency themes.
This type of national planning and budgeting may also limit the recognition of region-
specific problems. It may also unintentionally protect the status quo. Administrator Re illy
is using the strategic planning process to equip EPA to meet the future.
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Among those strategic planning initiatives underway and planned are:
o Refining the media specific plans for greater consistency in the
comprehensiveness and quality of the media planning efforts, including:
Fuller development of strategies for reaching program goals and
objectives. These strategies will address the critical issues that we
identify that affect each program's ability to achieve its goals,
including operational and external constraints.
More explicit plans for implementation of strategies, including their
implications for other EPA offices and regions, states and other
federal agencies.
Stronger development of indicators and other measures of
environmental impact, making explicit how programmatic success
will be measured.
o Launching strategic planning for each support office (OARM, ORD, OLA.
OE, OGC, OPPE, OROSLR, OCLA, and OCPA) that will take
advantage of the lessons that the media offices have learned about
strategic planning to date, and integrate support office efforts with those
of each media. These support office plans will be developed on the same
schedule as the media plans (i.e., targeted completion by November 30,
1990).
o Identifying regional priorities, recognizing regional differences, and
involving the Regions more actively in headquarter's planning process.
The regional planning process consists of two main components:
comparative risk analysis for priority setting, and strategic planning.
Regions I, III and X have completed comparative risk analyses and FY
1992 operating plans, and will be developing four year strategic plans for
their highest priority problems. Regions II, IV, V, VI, VII and VIII will
be completing comparative risk studies by November, 1990, and will
identify areas of potential investment and disinvestment for FY 1993
budget formulation. These Regions will follow the same process as
Regions L, in and X did in preparing for the last Annual Planning
Meeting, specifically identifying priority risk reduction opportunities that
will not be addressed by the national strategy. These proposals shall be
reviewed for incorporation into the FY 1993 budget. Four year strategic
plans for highest priority areas will therefore be developed by Regions II,
IV, V, VI, VII, VIII, and DC as part of the FY 1994 cycle.
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COMMON QUESTIONS
How does strategic planning tie in with the budget process?
Exhibit 3 shows how strategic planning is related to the annual budget process,
program accountability, and other components of the EPA management system. To be
successful, strategic planning must have an impact on the Agency's resource allocation
decisions. Basically, areas of emphasis and de-emphasis identified during strategic
planning efforts are reflected in program budgets. For 1992, for example, the Deputy
Administrator requested that 1992 budget proposals be developed that reflect the
program priorities outlined at the Easton Annual Planning Meeting. Similarly, Regions
I, III and X identified areas of increased or decreased emphasis that will be reflected
in national program budgets.
How are Regions involved in strategic planning?
Regional involvement in EPA strategic planning takes place on many levels.
National media programs, for example, have been asked to ensure regional
participation in development of their plans. The "Lead Region" mechanism provides a
mechanism for Regions to affect the planning process at Headquarters Regions
themselves are undertaking strategic planning efforts. As described above, these begin
with comparative risk analyses, and then focus on developing strategies for high risk
areas. Long term strategies will give the Regions, states, and local government a
picture of where EPA is headed, and how and when it is going to get there. The goal
is to develop a national strategy with full regional input. Once national strategies that
focus on environmental results and accommodate regional and state concerns have
been developed, Headquarters should find it easier to provide flexibility for inclusion of
Region-specific high risk priorities where the situation warrants.
How does strategic planning relate to program accountability?
Because strategic plans are a statement about the direction an organization -
whether Region, Office, Division, Branch or Agency - has chosen to take, they are
useful in assessing progress. Quantitative measures of performance should also have
qualitative components, and should be developed to create incentives that bolster
program results, not hinder them. Through a regular process of revisiting the plans,
coupled with the Agency's other program monitoring and evaluation tools, strategic
planning can be translated into results.
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Exhibit 3
STRATEGIC PLANNING AFFECTS ALL ASPECTS OF THE ORGANIZATION
Draft
Strategic
Plan
Annual
Meeting
Budget
Policy
Internal Assessment
External Assessment
Measurable Goals
Priority Development
Internal Consensus
i Budget
I Formulation
Guidance
Development
Target
Setting
Program
Implemen
tation
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i
I i Review
/ Environmental
Trends
Review
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Strategic plans identify goals for a program area, then measurable objectives to
reach "within a certain time period (four years), and indicators by which to measure
progress towards those goals. Program accountability must deal with both specific
actions taken to positively affect progress towards goals, and the environmental
indicators which indicate how much progress has been made. It is important to kpow
when progress is being made, as well as when strategies or activities undertaken with
the best intentions seem not to make a difference. This may indicate that the strategy
or activity is flawed, that more research is needed to establish better indicators, or that
the monitoring system needs improvement. Both success and lack of success are
equally important to effective management of EPA.
What is the OPPE role in strategic planning?
The Deputy Administrator has designated the Strategic Planning and
Management Division to help staff strategic planning across the Agency. This Division
is therefore available to answer questions, provide guidance and technical assistance,
and facilitate the process in whatever way they can. For example, if a media office
wants to know what part of their previous plan needs more attention, OPPE can work
with the media policy office to establish specific needs. Perhaps a support office wants
advice on what is an appropriate way measurable objective, or who to contact for help
in developing indicators (which may be administrative). OPPE staff can provide the
support office with advice and guidance on how to develop their own approach to
answering these questions. Maybe a Regional office wants help in developing their
comparative risk study or strategic plan. OPPE can find appropriate help for them in
the Region, or provide technical assistance in person.
In particular, the Planning and Management Branch will serve as liaison to
National Program Offices in the development of their strategies. .This branch also
staffs the Agency management systems, and will be instrumental in reworking these
systems to reflect the results of strategic planning. The Regional and State Planning
Branch serves as liaison to Regions and states in the development of risk-based
planning, and its incorporation into Headquarters' budgets. This branch also assists
Regions in conducting comparative risk analyses, and will continue to provide guidance
on this subject The Environmental Results and Forecasting Branch provides technical
assistance to National Programs and other headquarters offices on the development of
indicators for measuiring environmental results. This branch is also developing
expertise in environmental forecasting to help guide long-term Agency planning, and
will be assisting Regions in developing indicators in the future.
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What is the Agencv-wide plan, and isn't it redundant with other efforts?
EPA is engaged in an Agency-wide planning process that is occurring on a
number of different levels. The development of a specific Agency-wide plan is
currently under consideration. One view of the Agency-wide plan is that it is several
things rolled into one. First, it will articulate a vision for the Agency, and provide an
overarching framework for the planning efforts of program offices, support offices and
Regions, to: a shared mission that will motivate our activities into the next century. It
will be a statement of overarching goals, and summarize the highest priority
environmental problem areas, and media strategies. It will also be a vehicle for
considering multi-office environmental problems, such as Climate Change and
Groundwater, which might not be adequately addressed otherwise. Finally, it will be a
concise summary of agency directions and policies that will be used for broad
discussion and support inside and outside the Agency with our various stakeholders.
%
How long should our strategic plan be?
The Deputy Administrator has asked that plans be limited to approximately 20
pages per AAship the purpose of strategic planning is to set priorities for future
action, not to produce a lengthy treatise. Each strategic plan should be only as long as
it needs to be to get its message across.
Do we have to rewrite our strategic plan every year?
Absolutely not. The Administrator wants to have strategic plans developed
more comprehensively and consistently across the Agency. This may take two or three
attempts to get different parts of the Agency together on the same effort the same
year. Those parts which have been completed and fulfill general 'needs of a strategic
plan need only be updated annually by a systematic review by senior managers. The
media offices already have most parts of their strategic plans established, and need only
revise certain areas or fill in some missing pieces. The support offices and some
Regional offices will be joining the media offices in this year's cycle. Afterwards, the
Administrator may decide that other support offices, Regional offices, or special
programs may join the previous ones in developing strategic plans. Once everyone is
on the same wavelength, the Administrator may determine that the plans do not need
annual updates as much as there needs to be clear annual operating guidance to
implement the longer term plans. When the four or more year cycle is over, then the
Administrator may decide a whole new effort is needed, or at least the plans need
updating to their new timeframe.
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How will states and the general public be involved?
This is a question to which all the answers have not been worked out yet. The
Agency serves several publics: Congress, state and local governments, the business
community, environmental groups, and the general public. From the CEO of a major
corporation to a housewife, from the director of a state environmental agency to an
Earth Day volunteer, we all have an interest in and concern about the environment.
We want to provide for the involvement of all interested parties in an appropriate way,
and our strategy for doing this is currently being developed. We welcome your
suggestions.
You mentioned Congress. What does Congress say about EPA's strategic planning
efforts?
The Administrator has kept Congress informed of our strategic planning work.
In particular, he has discussed our approach to addressing environmental problems by
their comparative risks, and targeting our scarce resources towards those high priority
problems with the greatest risk reduction potential. Congressional committee members
have expressed their strong support for this approach, and are interested to learn
more. The Administrator is very hopeful that this strategic planning approach will help
address concerns about Agency direction, while garnering broader support from
Congress.
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CREATING A DOCUMENTED PLAN
An organization undertakes strategic planning to define its mission, establish
goals, set priorities, and develop and implement strategies for achieving those goals. At
EPA, strategic planning is taking place on many levels: the organizational unit
undertaking strategic planning may be large, such as an entire agency, program or
regional office, or small, such as a branch or division. Regardless of the size of the
planning unit, the strategic planning process moves through the same series of steps,
depicted in Exhibit 1:
o Decide to launch strategic planning, and "plan the planning".
o Define organizational purpose, or mission: What services does it offer?
What is its business?
o Identify and assess the critical issues affecting organizational performance.
Evaluate both internal and external influences, and modify mission if
necessary. What are our organization's strengths and weaknesses?
Opportunities and threats? Who are our clients? Major stakeholders?
Supporters? Detractors?
o Articulate goals (to accomplish mission), and objectives (shorter term
components of goals).
o Develop strategies/options/approaches to meet goals and objectives: What
alternatives are available for each service we wish to provide? What mix
of activities is optimal?
o Decide which approach to pursue, and determine the specific activities
necessary to do so.
o Monitor results and modify plan where necessary.
In addition to the descriptions below, the Strategic Planning and Management Division
is developing materials to help facilitate each of these steps.
Plan the
Begin with an effort to "plan the planning". This is an important step to
develop consensus among an organization's leaders regarding the purpose of the plan,
and to provide participants with a working definition of strategic planning, a clear sense
of what it involves, and a preliminary timetable.
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Strategic planning embraces a range of approaches that vary in applicability to
the public sector and EPA. It is NOT a single concept, procedure or tool. The
emphases of an Agency-wide plan will differ from those of regional, program, or office
plans. The process for a nascent program will differ substantially from that of a
mature one. A strategic plan will also vary according to the objectives of its
formulators. Strategic planning can involve major change. If leaders of the strategic
planning process are only willing to entertain minor variations on existing themes,
strategic planning is probably a waste of time.
There are important lessons to be learned from beginning strategic planning
from scratch and then adding reality's constraints. For example, programs might reach
a better understanding of their barriers to progress. Strategic planning that ignores
boundaries set by legislation and organizational structure may be better suited to newly
emerging programs, and to programs approaching reauthorization.
At EPA, organizational units do not always have sole responsibility for
addressing discrete environmental problems. It therefore may be difficult for these
organizations to adopt purely problem-based approaches to strategic planning. For
example, global warming falls under the jurisdiction of numerous offices at EPA;
several offices within and outside the Office of Water deal with non-point source
pollution; and multiple parties in the Office of Air and Radiation work on toxic air
pollutants. While cross-cutting issues are of growing importance and interest to EPA
and its constituents, the institution is more likely to respond to a strategic planning
approach that is organized around existing programs. Nevertheless, program oriented
plans need to be explicit about the problems they are intended to address, and plans
that are organized around particular environmental problems should consider
programmatic constraints as well. In any case, well developed communication and
coordination across the Agency is essential.
Mission
The mission statement, which describes an organization's business in broad and
timeless terms, serves as the focal point for the entire plan. It addresses what the
organization intends to do, and for whom, and specifies the major philosophical
premises that drive operations. The rest of the strategic planning process flows from
the mission statement, which serves to integrate the different elements of both the
organization and the plan. Mission statements vary in length and complexity, ranging
from a few sentences to several paragraphs. Because they provide focus, they are
generally quite brief.
A shared sense of mission is important to an organization for a number of
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reasons. It enables members of an organization to focus their energies, and provides a
point of reference for major decisions. It ensures consistency of purpose, and helps
gain support of individuals and groups outside of the organization who are important to
success.
The first step toward developing a shared mission statement is to identify those
individuals who will participate in its development. Typically, this group is drawn from
an organization's top management. This group meets to discuss the format and
components of the mission statement.
There are several questions that could form the basis for discussions of the
mission statement:
o Why do we (Agency, division or branch; the organization developing the
strategic plan) exist? What is our purpose?
o What are our services and products?
o What problems do we seek to address?
o What will our services and products be in the future?
o How might the organization change?
o What are our philosophy and core values?
The mission statement meeting may either begin from scratch, or managers may each
be asked to think about the above questions in advance, and draft mission statements
that then serve as the basis for discussion. Once drafted, the mission statement should
be circulated for comment.
Identification and Assessment of Critical Issues
In this step in the strategic planning process, participants identify and evaluate
factors both internal and external to the organization that might affect its future,
referred to here as critical issues assessment Also referred to, with slight variations, as
an environmental scan, situation analysis, critical factor analysis, and SWOT (strengths,
weaknesses, opportunities, threats), this analysis allows us to develop an understanding
of our organization, the environment in which it must function, and the issues that
affect its performance - all crucial information to planning for the future.
There are two fundamental parts of critical issues assessment:
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o External Scan: Begin the critical issues assessment by examining the
outside world. Who are our clients? Major stakeholders? Supporters?
Detractors? What are the opportunities available to our organization?
What threatens our future success? This analysis might factor in public
opinion, political agendas, legal mandates and projected environmental
and economic conditions, and make explicit other expectations regarding
the future. For example, the critical issues assessment could reflect shifts
over time in EPA's regulatory mandate.
o Internal Scan: Then consider internal aspects of the organization that
affect its ability to act. What are our organization's strengths and
weaknesses? This analysis might address resource constraints, leadership,
organizational culture, policy consensus, attitudes toward change, staff
capacity, etc.
In both cases, ask:
o What are the critical issues that affect our performance?
o Which elements of the current internal and external environment are
most important?
o Which elements are likely to facilitate or impede consensus or problem
solving?
o What forces are at work that might change the environment in which we
operate?
o How might future forces change the nature of the issue at hand?
Collecting and evaluating information to help understand the factors that influence our
organization, depicted in Exhibit 2, is perhaps the most time-consuming part of the
strategic planning process. Careful identification and assessment of critical issues allows
the organization to identify those factors that are most important to address in the
strategic plan.
Goals
Goals are general statements of what an organization must accomplish to
achieve its mission. They are generally stated in broad and timeless terms, and may
describe, for example, prospective levels of attainment (e.g., to substantially reduce
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automobile emissions) or conditions to be pursued (e.g., to promote technology
transfer). Goals portray where the organization wants to be in the future. From this
point, the strategic plan works backwards to determine what needs to transpire in the
short term (objectives and activities).
Goals are developed from careful review of the mission statement, and modified
to reflect the findings of the critical issues assessment. They should be few: according
to one strategic planning expert, three to six goals is plenty. Too many goals can
diffuse organizational focus and impede the achievement of its mission.
To develop goals that are attainable and of use to the organization, it is useful
to keep in mind the following questions:
o Is the goal measurable and verifiable?
o Is the goal feasible?
o Is the goal flexible?
o Is the goal consistent with the rest of the strategic plan?
o Is the goal consistent with our knowledge about what other parts of the
organization are trying to achieve?
Objectives
Objectives are short term accomplishments that contribute to realizing each goal
for example, if the goal is to reduce emissions, an objective might be to reduce
industrial emissions by 10% in two years. When formulating objectives, the following
questions might prove useful:
o Will achieving the objectives help to achieve the goal?
o Are the objectives measurable?
o What time constraints should the objectives involve?
o Can activities be developed for each objective?
Like other parts of strategic planning, goals and objectives need to be
developed, or at least actively endorsed, by the organization's leaders. These managers
might be presented with a set of proposed goals to stimulate their thinking prior to
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meeting to develop them further. It is possible for the development of objectives to
necessitate modifying goals.
Strategies
Strategic options, approaches, or simply, strategies, describe an organization's
overall approach to achieving its mission, goals and objectives. For example, a few
general strategies for protecting sensitive lands might be to promulgate new regulations.
enforce existing ones, provide public information, or some combination thereof. These
options identify what the organization can do to meet the challenges it will face in the
future. They are at the heart or ?.ne strategic planning process, for they point to
fundamental policy choices that Tie organization must make regarding its future
direction.
There is not a one-to-one :orrespondence of goals and objectives to strategies.
For example, it may be possible :o have a strategy that addresses numerous objectives.
Careful assessment of an organization's strengths and weaknesses, and factors that
effect the probability of its success (see critical issues assessment, above) inform the
choice among strategic options.
Developing an explicit strategy forces managers to consider how external events
and trends, and internal characteristics, could affect the organization in the future.
Without these options, managers are more likely to overlook obstacles that might
stymie attainment of goals.
Among the questions that might be useful in developing strategies are:
o What are the policy options available to us? (This is an opportunity to
think creatively about alternatives).
o What are the likely pitfalls inherent in each option if it is chosen?
o What are the likely benefits of each?
Activities
Activities are specific programmatic actions and tactics that are implied by each
strategy, and undertaken to achieve goals and objectives. Together, activities comprise
an operating plan.
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The following questions may facilitate the development of activities:
o Given your choice of strategy (i.e., to build state capacity), what specific
actions are required to achieve each objective?
o Who is responsible for each activity?
o What resources are available to ensure follow-through?
o How will progress be monitored?
o Do the activities achieve the objective? Do they reflect the organization's
strategic choices?
Monitoring. Follow-Up and Modification
Measures, or environmental indicators, provide a means of tracking progress,
and of modifying components of the plan to reflect changes in operating environment.
They identify problem areas, and can be used to communicate program
accomplishments. Measures demonstrate the link between an organization's activities
and its mission. The most useful indicators, admittably difficult to develop,
demonstrate a causal relationship between EPA actions and environmental results.
STARS is one method that EPA uses to measure success.
Answering the following questions can help refine a list of proposed measures:
o What information that could measure progress is currently being
collected?
o Is this information readily accessible in a form matching the organization's
needs? Are data available consistently across regions?
o Will data be available over time?
o Are data accurate, precise and complete?
o Where data is not available, can it be collected without excessively
burdening its source?
o How might measures unexpectedly influence behavior? For example, will
a critical aspect of a program that is not measured be ignored?
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o How much will it cost? How long will the measure take to develop?
o What are our constituents looking for to show our progress?
Follow-up, including sound environmental indicators, periodic monitoring and
other activities, is necessary to assure that the plan is implemented, and that it is
altered over time to reflect changing realities. Without a concerted follow-up, the
strategic plan is likely to stray off course, be forgotten, or simply sit on a shelf. The
planning process should be repeated every few years to incorporate changes to the
organization's internal and external environment. Many organizations update their
plans annually.
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Schedule
1990
June
Deputy Administrator issues "next steps" call letter and
guidance.
OPPE provides additional guidance to program offices, other
headquarters offices, and regions.
June &
July
Media offices, cross-cutting offices and regions
begin planning cycle.
Technical assistance available from OPPE.
August
Cross-cutting offices and regions work with program offices to
ensure consistency.
September 30
Drafts of program office, other headquarters office and Regions
I, III and X strategic plans, and Regions II, IV, V, VI, VII, VIII
and DC preliminary rankings due to Deputy Administrator.
November 30 Strategic plans and regional rankings due.
1991
January 15
Implications of strategic plans for FY 1993 program priorities
doe.
February 25
Annual planning meeting.
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EPA STRATEGIC PLANS
BASIC COMPONENTS/SUGGESTED FORMAT
I. Mission Statement
II. Critical Issues Assessment
III. Goals and Objectives
IV. Strategies and Policy Options
V. Environmental Indicators
* For details regarding each of these basic components, please refer to the
attached overview and contact OPPE's Strategic Planning and Management
Division (382-5449) for additional materials and information.
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STRATEGIC PLANNING
SELECTED BIBLIOGRAPHY
Books and Articles
Bryson, John M., Strategic Planning for Public and Non-Profit
Organizations: A Guide to Strengthening and Sustaining
Organizational Achievement. San Francisco: Jossey-Basee
Publishers, 1989.
, "A Strategic Planning Process for Public and Non-Profit
Organizations", Long Range Planning. February 1988.
and Robert C. Einsweiler, Strategic Planning; Threats
and Opportunities for Planners. Chicago and Washington, D.C.:
American Planning Association Planners Press, 1988.
and William D. Roering, "Applying Strategic Planning in
the Public Sector", American Planning Association Journal.
winter, 1987, pp. 9-22.
Catoline, James E., "Getting at Strategic Change", Training and
Development Journal. November 1989, pp. 74-78.
Cook, Lauren, Anticipating Tomorrow's Issues; A Handbook for
Policy Makers. Washington, D.C.: Council of State Policy and
Planning Agencies, 1988.
"Crystal Balls-up: Whatever Happened to Strategic Planning", The
Economist. February 4, 1989, p. 67.
Eadie, Douglas C., " Putting a Powerful Tool in Practical Use:
The Application of Strategic Planning in the Public Sector,
Public Administration Review. September/October 1983, pp. 447-
452.
Gair, Robert B., "Back to the Future: Strategic Planning", The
Bureaucrat. Spring 1987, pp. 7-10.
Gluck, Frederick, "Strategic Management: An Overview", in James
Gardner et al.. Handbook of Strategic Planning. 1986.
Halachmi, Arie, "Strategic Planning and Management? Not
Necessarily", Public Productivity Review. Winter 1986, pp. 35-50.
Haney, Glenn, "IRM in the Federal Government: Opinions and
Reflections", Information Management Review. Spring 1989, pp. 39-
45.
Howard, James S. and John Emery, "Strategic Planning Keeps You
Ahead of the Pack", D&B Reports. March/April 1985, pp. 18ff.
Karagozoglu, Necmi, and Ragnor Seglund, "Strategic Planning for a
Public Sector Enterprise", Long Range Planning. Vol. 22, No. 2,
1989, pp. 121-125.
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Kaufman, Jerome L. and Harvey M. Jacobs, "A Public Planning
Perspective on Strategic Planning", American Planning Association
Journal. Winter, 1987, pp. 23-33.
Kenny, Graham K. et al.. "Strategic Decision Making: Influence
Patterns in Public and Private Sector Organizations", Human
Relations. Vol. 40, No. 9, 1987, pp. 613-632.
Kiechel, Walter III, "Corporate Strategists Under Fire", Fortune,
December 27, 1982, pp. 34-39.
King, William R., "Strategic Planning in Nonprofit
Organizations", in Gerald Zaltman, ed., Management Principles for
Nonprofit Agencies. AMACOM, 1979.
Landy, Marc K., Marc J. Roberts and Stephen R. Thomas, The
Environmental Protection Agency: Asking the Wrong Questions. New
York: Oxford University Press, 1990.
Miller, Gerald, et al.. "Strategy, Values and Productivity",
Public Productivity Review. Fall, 1987., pp. 81-96.
Montari, John R. and Jeffrey S. Bracker, "The Strategic
Management Process at the Public Planning Unit Level", Strategic
Management Journal. Vol. 7, 1986, pp. 251-265.
Mushkat, Miron, " Improving the Prospects for Plan Acceptance in
Public Organizations", Long Range Planning. Vol. 20, No. 1, 1987,
pp. 52-66.
, "Towards Non-Incremental Strategic in Developing Public
Products and Services", European Journal of Marketing. Vol. 21,
No. 1, 1987, pp. 66-73.
"The New Breed of Strategic Planner", BusinessWeek. September 17,
1984, pp. 62-68.
Nutt, Paul C. and Robert W. Backoff, "A Strategic Management
Process for Public and Third Sector Organizations", American
Planning Association Journal. Winter, 1987, pp. 44-57.
Pflaum, Ann M. and Timothy J. Delmont, "External Scanning - A
Tool for Planners", American Planning Association Journal.
Winter, 1987 , pp. 58-68.
Richanbach, Paul H., and Frederick R. Riddell, "Strategic
Management and the Management of Participation", Alexandria, VA:
Institute for Defense Analyses, 1989 (unpublished).
Ring, Peter Smith, and James L. Perry, "Strategic Management in
Public and Private Organizations: Implications of Distinctive
Contexts and Constraints", Academy of Management Review. Vol. 10,
No. 2, 1985, pp. 276-286.
So, Frank, "Strategic Planning: Reinventing the Wheel", Planning.
February 1984, PP. 16-21.
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Stanford Research Institute, Alternative Futur?fi
Environmental Policy Making. 1975-2000. October 1975.
Steiner, G«orge A., Strategic Planning; What Every Manager Must
Know. New York: The Free Press.
Titens, Sherman Jay, "All the Right Moves", Association and
society Manager. October/November 1987, pp. 12-17.
U.S. Department of the Interior, U.S. Geological Surveym
"Mission, Goals and Authorities of the U.S. Geological Survey",
1985.
U.S. Environmental Protection Agency, internal documents,
memoranda and notes regarding strategic planning, program
evaluation, management systems, operational planning, etc.
Waddock, Sandra, "Core Strategy: End Result of Restructuring",
Business Horizons. May/June 1989, pp. 49-55.
Walter, Susan, and Pat Choate, Thinking Strategically; A Primer
for Public Leaders. Washington, D.C.: The Council of State
Planning Agencies, 1984.
Weschsler, Barton and Robert W. Backoff, "The Dynamics of
Strategy in Public Organizations", American Planning Association
Journal . Winter 1987, pp. 34-42.
Wold, Geoffrey, "Information Systems Planning", Government
Finance Review. June, 1989, pp. 23-26.
Interviews
Harrell, Jim, Deputy Administrator, Planning and Evaluation
, Public Health Service
Leone, Robert, Boston University School of Management
Muller, Kit, International Of., Div. Planning, BLM/ Interior
Richanbach, Paul, Institute for Defense Analyses
Smith, Ti«, Chief, Planning Branch, USGS/Interior
Souby, JBMS, Executive Director, Council of state Planning
Agencies
Stockman, Robert, Strategic Planner, NOAA/ Commerce
Witham, Don, Chief, Strategic Planning Unit, FBI
Numerous U.S. EPA staff
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6U.S. GOVERNMENT PUNTING OFFICE: 1*92 - 650-227
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