SSTRATEGIC TRATEGIC

BBUSINESSUSINESS

PPLANNINGLANNING

Designing the Future of Designing the Future of the Organizationthe Organization

Designing the Future of Designing the Future of the Organizationthe Organization

Our Goals for Today ...Explain and demonstrate the basics of

Strategic Business Planning.Get you “started” on the process.Provide a framework to continue the

process.Lots and lots of application - workshops

Set the tone: The 5 ways to run or ruin

a great business…

D= IOOp

NO !

NO !

NO !

NO !

NO !

NO !

NO !

NO !

YES!!!

The 5 Key Factors -/+

1. Lack of a clear, specific , vivid, compelling and realistic vision. What is your clear Intended Outcome?

2. Lack of urgency. You must turn the business plan…into a business reality.

3. Lack of open, honest communication. C-C-C-T

4. Allowing sub-par employees to remain. T.T.T.

5. Turning the focus inward. The customer MUST be the focus

Thinking Down Board

ACCEPT CHANGE

COMPLAIN

It will always be like thisI have no controlI can’t impact thisIt is out of my handsNo need to planIt has already happenedI don’t have the authorityIt is not worth the effort or riskI can’t fight it any longer

I must do something I can make a differenceI am willing to work and fightI can impact or influence thisI demand that things changeIt is worth the riskI must make a planThis is my responsibilityThis can’t go on

I wish…

They ought to…

I hate…

I am sick of…

Somebody should…

Why don’t they…

It is stupid…

What is What is Strategic Strategic Business Business Planning ?Planning ?

What is What is Strategic Strategic Business Business Planning ?Planning ?

The Elements of the Strategic Business Planning Model

External Appraisal

Threats and Opportunities in

Environment

Critical Success Indicators -

Contingencies

Internal Appraisal

Strengths and Weaknesses of

Organization

Distinctive Competencies -

Value Added P/S Creation of Strategy

Implementation of Strategy

Monitoring / Adjustment of Business Strategy

VisionDefine the business

GoalsTargets

Measurements

Page: 2

Read page 3 for the more simplistic view…

1. Long-term impact of 1. Long-term impact of decisionsdecisions

Strategic planning deals with Strategic planning deals with the future impact of current the future impact of current decisions. This means looking decisions. This means looking at the cause and effect at the cause and effect consequences, over time, of an consequences, over time, of an actual or intended decision.actual or intended decision.

Page: 4

2. Strategic Business 2. Strategic Business Planning is a processPlanning is a process It is a process that begins with the It is a process that begins with the

setting of organizational aims, setting of organizational aims, defines strategies and policies to defines strategies and policies to achieve them, and develops achieve them, and develops detailed plans to make sure that detailed plans to make sure that strategies are implemented so as to strategies are implemented so as to achieve the results sought.achieve the results sought.

Page: 4

3. It is a philosophy3. It is a philosophy

Strategic Planning is an attitude, a Strategic Planning is an attitude, a way of life. Planning necessitates way of life. Planning necessitates dedication to acting on the basis of dedication to acting on the basis of contemplation of the future, a contemplation of the future, a determination to plan constantly determination to plan constantly and systematically as an integral and systematically as an integral part of management.part of management.

Page: 4

4. It gives structure4. It gives structure

A formal strategic planning A formal strategic planning system links the three major system links the three major types of organizational plans:types of organizational plans: Long-range Strategic PlansLong-range Strategic PlansMedium-range ProgramsMedium-range ProgramsShort-range Budgets and Operating Short-range Budgets and Operating

PlansPlans

Page: 4

What Strategic Business What Strategic Business Planning is Not !Planning is Not !

Strategic planning does not attempt to make future decisions.

Strategic planning is not forecasting. Strategic planning is not an attempt to

blueprint the future. Strategic planning is not necessarily the

preparation of massive plans and reports. Strategic planning is not an effort to replace

good management judgement.

Page: 5

Why Planning Pays OffWhy Planning Pays OffWhy Planning Pays OffWhy Planning Pays Off Asks & answers questions of importanceAsks & answers questions of importance

Simulates the futureSimulates the future

Forces the setting of objectivesForces the setting of objectives

Gives a framework for decisionsGives a framework for decisions

Develops performance measurementsDevelops performance measurements

Improves communications Improves communications

Page: 6

Varied Goals for Strategic Business Planning

Go to page 7 and pick your top 3 or 4 reasons why you believe planning is of value to your team

Page: 7

The 5 tasks of Strategic The 5 tasks of Strategic Business PlanningBusiness Planning

Defining the business /

developing a Vision

Gap & SWOT

analysis -Setting

objectives

Crafting a strategic Action Plan

Implementing and

executing strategy

Evaluating performancereviewing - adjusting correcting

Page: 8

BusinessThinking

1. Check your ego at the door

2. Create Curiosity

3. Move off the solution

4. Get evidence

5. Calculate the impact

6. Explore the ripple effect

7. Slow down for yellow lights

Pages: 9 & 10

Task 1Task 1

Define the BusinessDefine the BusinessDevelop a VisionDevelop a Vision

You must create a clear, vivid, compelling and achievable VISION of where you want to take your business over the next 3-5 years.

Page: 11

Some key questions to think about…

1. What is the thrust or focus for future business development?

2. What is the scope of products and markets that will - and will NOT - be considered.

3. What is the future emphasis or priority and mix for the products and markets that fall within that scope?

4. What key capabilities / resources are required to make this strategic Vision happen? (money, product, people, advertising, distribution…)

5. What does this Vision imply for growth and return expectations?

Page: 11

Task 1Task 1 - Define the Business - Define the BusinessDevelop the VisionDevelop the Vision

Read page 12 – see list of additional key questions.

Read vision example for Adbiz

Do all or part of the ThinkSheet on page 13

Complete the workshop on page 14

The GAP / SWOT AnalysisThe GAP / SWOT AnalysisThe GAP / SWOT AnalysisThe GAP / SWOT Analysis

Vision3-5 years

Situation Audit

The

“GAP”

Where you Where you want to go.want to go.

Where you Where you are today.are today. What you have What you have

to do to get thereto do to get there.

Page: 15

This is the crucial stage of asking and honestly answering dozens of very difficult questions

Gap / SWOT Work ShopRead and answer ALL the questions on pages 15-21Some will be redundantSome you won’t knowMany you will need more information in order to answerSome will not apply Write your answers on a separate sheetWrite very clearly – complete sentencesThis is supposed to be very hard work…

Page: 15

Now you should have a huge collection of data, facts, concerns and questions.

The next step is to convert all of this random – but important - information into

a list of key Factors

Factors are: Anything that could positively or negatively

affect your ability to accomplish the vision. Written in complete sentences. Written as a statement of fact.

Examples:

1. I DK our current market share. A

2. We have 3 new products that will launch this year. B

Prioritized: A = Immediate action required – top priority B = Requires action at some time C= important information – but no action required

Page: 22

As you review the analysis… You may address several items with

just a single well written Factor It may take multiple factors to cover just

one piece of data. When in doubt – write another FactorExamples:1. Our major competitors are Acme and Ajax. C2. We currently have 15% market share. A3. The target is to reach 20 % Market Share by 6/30/03 A4. DK if Sun Systems is planning to enter our market. B5. DK if we can renegotiate our supplier contracts. B6. DK if we can automate part of our production process. A7. Our current computer system is not sufficient for our

needs. A8. DK the technical spec’s of an acceptable computer system. B

Page: 22

It may help to create Factor categories to keep track of the major themes Financial

Technical Marketing Sales Personnel Customers Competitors

Page: 23

Factors workshop pages: 22-25

Business Objectives

Now come this most difficult step – the actual setting of business strategy – the creation of key Business Objectives

Page: 26

After looking at all of your Factors and Factor Categories…

You must now create a handful of strategic thrusts that will drive your team for the next 3-5 years.

What are the main areas of focus?Where will you deploy resources?How will you measure success?

Isn’t this a little redundant – again?

Yes, we are going through a time consuming but necessary screening process. Form the broadest examination of the business possible, down to the few Key Result Areas that must be accomplished to successfully achieve the Vision.

The setting of Business Objectives may take days or even weeks…

Begin the workshop on pages: 26 & 27

The rubber meets the road…

Business Objectives drive the Strategic Action Plan

Page: 28

pecific

easurable

greed Upon

ealistic

ime BoundWrite them down

DelegationEmpowerment

MBOStrategic Plan

Once again, this is time consuming and difficult… but vital to your success!Actions must be clear and focused Write them as output – not input Assign responsibility and a due dateCross-reference with key Factors Hold people accountableTrack progress and failureAdjust as needed – new info

Workshop pages: 28 & 29

Contingency Planning

Factors that could have a serious impact on your business.

Probability - % or H/L Impact - % or H/L Trigger Point - measurableContingency Plan - Action

Page: 30

The final steps – but the critical ones…

Implementation

Monitoring, review, adjustment

New vision - new plan

Page: 31

That is:

Strategic

Business

Planning

Thank You