15 minutes free jerry@esselstein - oswald companies · jerry l. esselstein company, llc 2 15...

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Strategic PlanningKeys to Successful

Planning & Implementation

April 23, 2014

Jerry L. Esselstein Company, LLC

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15 Minutes FREE

[email protected]

614.306.5555

Culture is TOP Down Driven

Growth Aging1 Everything is permitted unless

specifically forbidden

Everything is forbidden unless

specifically permitted

2 Get what we want Want what we get

3 Political power in Sales & Marketing Political power in Accounting & Legal

4 Era of Intuition Era of Judgment

5 Contribution despite personality Personality despite contribution

6 Problems are seen as Opportunities Opportunities are seen as Problems

7 Success comes to those who take risk Success comes to those who avoid risk

8“What” trumps “How” “How” trumps “What”

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Long Term Planning ---1- 5 Years vs. BAG

Distributions trump

reinvestment

Incentive systems

reward short term actions

Customer attrition

increasing

Buggy whips, Phone Booths, Kodak Film, Borders Books,

Blockbuster Video, MySpace, Brookstone, Cord Camera

reason to plan or not to plan??

External variables

overwhelm strategies

Political &economic

uncertainty

Margin “fade” wins too

many times


How many do-overs correctionsmistakes &

inefficiencies burn hours & hours

Are systems “person” dependent of functional across

many minds

Are Key Systems & Processes Scalable

Will they work at twice our size

Do you have department or

system Integration problems

Do Key People Lack Operational insight

Would staff say you have the ability to

leverage technology

Would a five year study say you failed to improve employee

performance productivity

Is there lack of analysis as a tool to improve customer

experience -- loyalty

Is your Structure holding you back

Key Questions…. (think in terms of 1 to 10)

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Managing Risk -- ERMAssessment

Business Policies, Procedures & Processes

Unknown Risks – Non-Controllable Variables

Framework for insure, transfer, absorb

• Avoidance• Reduction• Alternatives• Accept

External Factors – Customers and Supplies

Monitoring --- Ongoing Commitment


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Never Forget the Value Equation

is Dynamic


DECISIONPROCESS MAKING

IMPORTANT VALUE

Process (important) to Value (decision-making)

Yesterday’s Value is today’s Task/ProcessToday’s Value is Tomorrow’s Task/Process

The only consistent Value is Decision Making

Key Strategic Issues

• Market Share & Margin

• Market Priorities that will Stabilize Revenues & assure Competitive Industry Positioning

• Balancing Growth & Allocation of Resources

• Setting “Agreed to” Priorities

• Agreement on “Firm Brand” & “Key Components of Reputation” -- viewed internally & externally

• BD -- Networking & Key Relationship Building

• Ongoing Succession & Critical Position and/or Function Backup --- Bench Strength --- Difference Makers


Continual Assessment of Traction Killers

Benchmark Current

Organizational Effectiveness

Set Three Critical

Priorities for the next 12 months

Reflect on Your Leadership Potential

Assess Roles & Responsibilities against Goals

Commit to Time-frames & Feedback Periods

Enhanced Planning and Execution


20% Enhancement

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Scenario Planning (Options & Alternatives)

Business Modeling Innovation -- Are You…

1. Assessing Changing Distribution Channels2. Reaching New Markets3. Remaining in the Top 25% (best practices)4. Using NEW Technologies5. Hiring Talent6. Described as Competitive, Innovative, having Vision7. Measuring & looking at Data in New Ways8. Balancing Risk9. Involved in Maintaining & Developing Key

Relationships10.______________________________________


Your Planning Framework

1. Frame issues essential to be proactive

2. Highlight relevant topics for more detail

3. Set Priorities --- Minimize Opportunity Costs

4. Differentiate Actions – Short & Long Term

5. Agree on Critical Success Factors (CSFs)

6. Agree on time-frames, metrics & feedback periods

7. Improve Communication & Commitment to Collaboration & Crucial Conversations


Traction Killers 1 of 3

Too many“just average” employees-

Tolerance has turned to

acceptance

New generation of key decision makers

lacks marketing & sales orientation

Competition seems to always be

one-step ahead of us

Working on the “urgent” always

takes priority over the “critical”

Failure to measure, benchmark &

support Difference Makers


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Tough decisions made when “time

runs out” or under stress

An absence of trust exists

Fear of Conflict Fear of

Consequence

Key “difference makers” have

differing agendas & no common

vision

Hidden or Conflicting Agendas

The “double standard” gap is wider than ever

Failure to “…set and manage expectations…”



Environment & culture lacks enthusiasm

“just not fun”

Key “drivers” no longer drive –

they are too comfortable

Risk-adverse thinking polarizes

any potential synergies

Creativity is not rewarded

Limited resources/capital are misallocated

Owner draws equal distributions

Limitedreinvestment


Understand Company Dynamics

Dysfunctions & Pressures

Trust Level

Fear of Conflict

Commitment Level

Accountability & Discipline


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Understand Company Dynamics

Dysfunctions & Pressures

Dominate Personalities

Conflicting Personal Agendas

Organizational Competition

Communication & Groupthink



Benchmark TodayYour Organizational & Planning Effectiveness

1 – 2 – 3 – 4 – 5 – 6 – 7 – 8 – 9 - 10


Benchmark #1How do others view your

collective contribution?

What are you known for inside the organization?

______1 – 2 – 3 – 4 – 5 – 6 – 7 – 8 – 9 - 10

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Benchmark #2Do you get the cooperation and

timely information necessary to be efficient and effective?

______1 – 2 – 3 – 4 – 5 – 6 – 7 – 8 – 9 - 10


Benchmark #3

How well is the succession plan communicated & understood?

______1 – 2 – 3 – 4 – 5 – 6 – 7 – 8 – 9 - 10


Benchmark #4

Are you staffed adequately to deploy the right people when

new opportunities arise?

______1 – 2 – 3 – 4 – 5 – 6 – 7 – 8 – 9 - 10

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Benchmark #5Are individuals on your Team ready, willing & able to accept

new & challenging opportunities?

______1 – 2 – 3 – 4 – 5 – 6 – 7 – 8 – 9 - 10


Benchmark #6

Are individuals on your Teamready, willing & able to move

into more senior management roles?

______1 – 2 – 3 – 4 – 5 – 6 – 7 – 8 – 9 - 10


Benchmark #7

Do you offer managerial and executive developmental

experiences to others?

______1 – 2 – 3 – 4 – 5 – 6 – 7 – 8 – 9 - 10

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Benchmark #8

If I ask Executive or Senior management, “Would they say you have demonstrated that you are

fully committed to accepting new challenges?”

______1 – 2 – 3 – 4 – 5 – 6 – 7 – 8 – 9 - 10


Benchmark #9

Would your Industry peers consider you actively engaged & committed

to the growth of the company?

______1 – 2 – 3 – 4 – 5 – 6 – 7 – 8 – 9 - 10


Benchmark #10

Do you hold your senior management accountable

for identifying and developing talent?

______1 – 2 – 3 – 4 – 5 – 6 – 7 – 8 – 9 - 10

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Company Edge Product, Price or People

1. Commoditization2. Customer Loyalty3. Expectation of Quality

Differentiators…ResponseKnowledgeAttitude

Innovation/DevelopmentCreativity


Slow to Terminate Slow to GROW

Poor Communication

No one Setting & Managing Expectations

Fostering Conflicting Personal Agendas

Lack of Trust among & between Associates

Failure to deliver Consistently

Tolerance for Mediocre Performance (Aptitude & Attitude)

• What does it tell solid performers?

Lack of Consequence

GROUPTHINK at all levels

Too few 8,9,10’s --- “7’s are ok”


Mobile Technology

Applications

New Uses

Integration with personal 24/7

Customer Expectations

Vendor Expectations


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Your Executive Alignment

o Set & Manage Expectations

o Know where you spend your Time

o Understand Major Constraints holding you back

o Think in SWOT Assessment Terms

o Increase your Value

o Have Crucial Conversations

o Ask Questions

o Minimize Groupthink

o ___________________________

o ___________________________

DECISION MAKING

Understand the role “time” plays in the

process

Living with the Result – Curse

of the “ifs”

No Fear of Blame

Understanding Fear of

Consequence

Champion or “Single Source Responsibility”

Know what outcomes are

acceptable

Establish “milestones”

for assessment


Personal Challenge…

Marketing Orientation Product Orientation

Business Perspective

Consistency in your

Communication

MAINTAIN


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• Global Economic & Business Monitoring

• Continuous Improvement & Alignment

• Benchmarking & Trending

• Visibility & Modeling

• New Ventures & Products

• Strategic Analysis

• Process Redesign

• Expectation Management

• Succession

Your Role

Succession Planning

Departmental Company Ownership

Pros & Cons for Communicating

a Plan

Law of Unintended

Consequence


Rolling, Rolling, Rolling…


Critical

30 Days

12 Months

3 Year

Paint a 15-20 year

picture

Not Urgent

Critical Not Urgent

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Desired Culture ---what must change to

achieve

Agreement on “Brand” & “Key Components of

Reputation” -- viewed internally & externally

Five year & Ten year Picture (vision)

Set Three Critical Priorities for the next

12 months

Market Priorities that will stabilize Revenues & assure Competitive Industry Positioning

Strategic Initiatives Need Traction –

Mutual Agreement on Traction Killers &

Constraints

Agreement on Resources &

Allocation (Capital, Personnel, Systems)

Exposures & Risks Summary of Assumptions

Summary – Key Elements of Planning


Critical Position and/or Function

Backup --- Bench Strength --

Difference Makers

Set Priorities with Buy-In

Differentiate “Important” from

“Value” --“Urgent” from

“Critical”

Communication –Ease of “Crucial”

Conversations

Minimize Groupthink

Measurement Metrics, KPIs, SPMs, et.al.

(Opportunity Costs)

Set & Manage Expectations – All

levelsSuccession

Summary – Key Elements of Planning


Crucial Conversations

Accepted & Encouraged

Groupthink is Minimalized

Measurement & Assessment

are Embedded

Expectations are Clear &

Communicated

Roles & Responsibilities

are Aligned

Time-frames & Feedback

Periods are Established

Morale & Motivation are evident in the

Culture

The Solution is Always in the Structure20% Enhancement

Summary – Leadership, Collaboration, Team & KSAs

39Jerry L. Esselstein Company, LLC 20% Enhancement

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Jerry L. Esselstein Company, [email protected]


15 minutes free jerry@esselstein - oswald companies · jerry l. esselstein company, llc 2 15...

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