Mislav VuÄ?ić PLIVA d.d., Strategic Planning Office mislav.vucic@pliva.hr
STRATEGIC PLANNING AND BALANCED SCORECARD AT PLIVA How and for what purpose PLIVA uses Balanced ScoreCard
Abstract: The strategic planning process at PLIVA attempts to answer where the company wants to be in 7-10 years and how to get there. It is dynamic process of continuously examining external environment and analyzing internal capabilities. Once the strategy is formulated, PLIVA uses Balanced Scorecard for implementing strategy and managing performance. Keywords: PLIVA, strategic planning, Balanced ScoreCard, performance management
1. Introduction to strategic planning at PLIVA The strategic planning process at PLIVA attempts to answer two very fundamental questions: Where do we want to be 7-10 years from now?, and How will we get there?
The process requires that PLIVA develop a vision of itself; how do we see ourselves in the future. It looks at the big picture from a long-range perspective, whereas the short-term planning/budgeting represent specific tactics for carrying out the Strategic Plan year to year.
Strategic planning is a dynamic process of continuously looking at our current situation and plotting the next move. This requires a solid understanding of the organization as well as an understanding about the environment that the organization operates in.
The best organizations are always engaged in some form of strategic planning. Although we at PLIVA have a regularly scheduled annual strategic planning exercise, strategy revision or update is performed whenever internal or external circumstances require it.
In a world of rapid change, it is becoming imperative for management to think strategically. And since the rate of change in pharmaceutical is escalating, the importance of strategic planning continues to grow. Some organizations have intuitive thinkers who almost seem to see into the future, whereas others employ more formal strategic planning process. We at PLIVA use both approaches.