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Key Elements of EffectiveStrategic Planning
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No Map
No Guide
No Direction
No Map
No Guide
No DirectionSound familiar?Sound familiar?
Failing to plan is planning to fail
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What Keeps Us From Planning?
• I’m always firefighting• I’m too busy to plan• I’ve done ok so far• I can’t find the time to do what I know I
need to do, much less what I want to do.• Fear of failure
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What is Strategic Planning?
• An organization’s process of defining its direction and making decisions on allocating its resources, including its capital and people.
• A framework for making choices about products and services provided, markets to be served and capabilities needed.
- Wikipedia- Mike Freedman and Benjamin Tregoe, The Art & Discipline of Strategic Leadership
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Statistics
• 95% of the typical workforce doesn’t understand its organization’s strategy
• 70% of organizations fail to execute their strategies• 86% of executive teams spend <1 hour/month discussing
strategy• 60% of organizations don’t link strategy to budgeting• The top 10% of large companies surveyed experience
real and material benefits from their planning processes - increased profits, improved cost control, better foresight, improved performance, shared purpose
http://www.missionfacilitators.com/Articles/Organizational%20Development/Tools/Statistics%20about%20Strategic%20Planning.pdf
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Why Plan Strategically?
• Peter Drucker, father of modern management:“A leader’s first job is strategic planning”
• Brian Tracey: “Excellence is not something that happens by accident; it happens by deliberate design”
• Enables your organization to be aligned and to play to your strengths
• Planning reduces risk (as measured by earnings variability)
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Strategic Plan
Sales Plan Marketing Plan
Financial Plan
Annual Budget
Capital Budget
HR Plan
Strategic Plan Drives the Firm
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Elements of Effective Strategic Plans
• Company Vision – What does the future look like and what will your
company look like in the future?What is your purpose, cause, passion & nicheFilter for new growth opportunitiesGuide for phasing out non-strategic activities
Where do you want to go?
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VISION STATEMENT EXAMPLES
• Year after year, Westin and its people will be regarded as the best and most sought after hotel and resort management group in North America." (Westin Hotels)
• "To be recognized and respected as one of the premier associations of HR Professionals." (HR Association of Greater Detroit)
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VISION
• Vision statement can be a one-liner:– “We sell beauty” Charles Revson (Revlon)
VISION: Innovative leadership in beautyMISSION: #1 Retail cosmetics companySTRATEGY: Multiple lines for multiple needs
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An Inspiring Vision Starts with “WHY”
WHY
WHAT
HOW
“People don’t buy WHAT you do; they buy WHY you do it”- Simon Sinek
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Elements of Effective Strategic Plans
• Company SWOT AnalysisStrengthsWeaknessesOpportunitiesThreats
Where are you now?
What are your Core Competencies?
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Critical Success Factors
• What absolutely MUST happen for you to be successful in 2013?
• CSFs are conceptual in nature, not specific
• CSFs typically:Leverage a StrengthFix a WeaknessCapitalize on an OpportunityBlock a Threat
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Critical Success Factors
• Improve Operating Cash Flow• Relocate to enable expansionFinancial• Hire General Manager• Develop New Hiring ProcessHR
• Develop New Customers• Develop Social Media StrategyMarketing• Develop Exit Strategy• Establish Partnership CharterPlanning
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Elements of Effective Strategic Plans
• S.M.A.R.T. Goals Specific Measurable (KPIs) Achievable Relevant to a CSF Time-sensitive
Clarity
Feedback
But Challenging
Gain Commitment
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Making Goals “Stick”
• Write the goal – physically – on paper• Public commitment
– Commit to a friend or supportive person
• Commit to regular progress reports– Written better than verbal– Regular = weekly, biweekly, monthly
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“If you don’t know how you got there, you
probably won’t stay there”
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Elements of Effective Strategic Plans
• StrategiesAnswer the question, “How?” for
each S.M.A.R.T. goal?” Conceptual – not quantitative
Update marketing materialBegin email marketing campaign
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Elements of Effective Strategic Plans
• Action Plans Who will do what and when will
they do it?
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The Planning Pyramid
S t r a t e g i e s
A c t i o n P l a n
G o a l
C r i t i c a l S u c c e s sFa c t o r
Vi s i o n
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The Bedrock Foundation
S t r a t e g i e s
A c t i o n P l a n
G o a l
C r i t i c a l S u c c e s sFa c t o r
Vi s i o n
Owner’s Personal Vision
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Strategic Planning Is A Continuous Process
Plan Development
Quarterly Review
Quarterly Review
Quarterly Review
Planning does not happen all by itself
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Making it Happen!
• It starts with the business owner• Leadership is about coping with and
driving change• “We must take change by the hand or, rest assuredly,
change will take us by the throat.” - Winston Churchill
• Successful strategy implementation requires effective communication, teamwork & accountability
Everyone in the organization KNOWS what the strategy means to them
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HOW DOES A BUSINESS OWNER STAY ON TRACK?
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Here’s Where The Alternative Board Can
HelpThe TAB system includes:1. Monthly board meetings2. Business leadership
coaching3. Business education4. Resource network5. Proprietary web-based
tools including the Strategic Business Leadership planning tool
All designed for Business Owners