Download - Strategic Planning Overview[1]
Steve Bathe&
John F Petak
Lean Strategic Planning
“The Plan is nothing, planning is everything”
Lean Strategic Planning Phases
• Examine and analyze the current state• Create a strategy map and strategic plan• Create the building blocks of the plan• Implement the plan (PDCA)
Goal: a strategic plan that is fully understood and implemented leading to financial stability, organizational improvement, decreased cost and financial growth
Examining and analyzing the current state, “Understand the box before you get out of the box”
• Knowing threats and weaknesses guide the allocation of resources to protect critical elements of the business
• Knowing the processes and methods the organization has already invested in and it's core competencies provides a better understanding of what assets already exist and the investment needed to reach strategic objectives
• The future of the organization can be forecast based on solid factual evidence.
• It equips businesses to face the realities that have to be dealt with on the way to meeting future goals.
Examining and analyzing the current state
• Financial Analysis• Strengths / Weaknesses / Opportunities / Threats
(SWOT)• Identifying Mission Critical elements of the
organization• Risk Management Plan• Resource Evaluation• Benchmarking
Create a Strategy Map and Strategic Plan
• Start with the businesses value propositions
Price Quality Selection Function Service Brand Marketing
Price Quality Selection Function Service Brand Marketing
Price Quality Selection Function Service Brand Marketing
Availability Quality Service Brand Marketing
Availability Quality Service Brand Marketing
Availability Quality Service Brand Marketing
Operational Excellence
Customer Intimacy
Product Leadership
Product Characteristics Relationship Image
Product Leadership Strategy Focus
CustomizationCustomer Relationship Strategy Focus
Product Characteristics Relationship Image
Standard Value Propositions
Non-Profit Value Proposition
Deliver unique, market leading products High degree of customer knowledge and understands their needsCombination product, price, quality, and service
Strategy Templates
ImageCustomization
Operational Excellence Strategy Focus
Customization
Strategy TemplatesService Leadership Strategy Focus
Product Characteristics Relationship
Operational Excellence
Known for excellence in meeting needs as outlined by mission / visionHigh degree of customer knowledge, measuring outcomes, meeting needsMeasures performance and responds to metrics with plans for improvement
Service Leadership
Customer Intimacy
Customer Intimacy Strategy FocusService Characteristics Relationship Image
Service Characteristics Relationship Image
Effectiveness
Outcomes
Outcomes
Outcomes
EffectivenessOperational Excellence Strategy Focus
Service Characteristics Relationship Image
Effectiveness
Create a Strategy Map and Strategic Plan• The Strategy Map uses Value Proposition and
perspectives to create a framework for objectivesValue Proposition
Strategy Drive innovation Speed to market
Perspectives Objectives ObjectivesFinancial
Customer Tie smart grid tech to NPI
Reduce time to introduce new
products
Internal
Learning and Growth
Improve delivery performance
Provide minimum level of
training
Create knowledge mgmt system
Reduce inventory
Offer enhanced functions
Reduce labor cost
Improve operational performance In Mfg and log
Targeted new product introductions
Objectives Objectives
Operational Excellence
Increase Margin Increase Market Share
Product Leadership
Create the Building Blocks of the Plan
• Vision / Mission• Planning• Objectives Setting• Determining Tactics• Goal Setting• Creating Projects
Setting Objectives
• Create SMART Objectives• Strategic in intent• Meaningful • Aligned within the organization vertically and
horizontally• Rational• Team driven
Set goals with a Balanced Score Card
Value Proposition Strategy
Operational ExcellenceImprove operational performance In Mfg and log
Product LeadershipTargeted new product introductionsDrive innovationSpeed to market
Customer RelationshipImprove Customer satisfaction
Develop closer ties to targeted customer base
Objective Measure
Strategy Mapping
Increase Margin Average margin improved by X%Reduce Inventory Reduce by X m$
Improve delivery performance OTD > 98%Reduce labor cost Reduce labor by X% per unit
Provide minimum level of training Training hours / EECreate knowledge mgmt system 100% explictit and 35% tactic
Increase market share Market share inc by X%
Tie latest NPI to smartgrid tech Develop strategic relationshipsReduce time to introduce new
productsReduce time form 26 months
average to 20 months
Reduce days to answer complaints < 3 days to answer complaintImprove website launch revised site by 2Q
Additional store fronts
Increase number of store locations by15%
Design data collection system utilizing point of sale information
Select three demographics for targeted marketing
Implement the Plan
Ops Qual Eng Log Pur HR Sales Acc IT
P S S L S SP L P SP S L P SL S S S SP P P P P L S S SP P P P P L P P P
P S L SS P P S S L P
S L P P
P L S P SP S P S P L
P S L S S
L P
Functional Departments
Measure
Policy Deployment
Average margin improved by X%Reduce by X m$
OTD > 98%Reduce labor by X% per unit
Training hours / EE100% explictit and 35% tactic
Market share inc by X%
Develop strategic relationshipsReduce time form 26 months
average to 20 months
< 3 days to answer complaintlaunch revised site by 2Q
Increase number of store locations by15%
Select three demographics for targeted marketing
Plans are implemented with vertical and horizontal alignment of resources through policy deployment