strategic planning template
DESCRIPTION
Template to help people through a robust strategic planning processTRANSCRIPT
Strategic Planning Templates
Mission
What is our
purpose?
Vision
What will we become?
Values
What will govern us?
Align Talents & Passions
Understand and align the talents and passions of
associates with the plans and objectives
Cascade the Mission, Vision and Objectives
Translate, align and cascade the mission, vision and objectives to all levels and among all units
Empower and Create Positive Accountability
Establish empowerment, reviews, tracking and positive accountability
Communicate
Listen, involve, celebrate, and share lessons learned
Build the Core
Implement
Desired Results
Offerings Financials
Competition
Customers
Processes
Plan
Five Year Objectives
What is our clear finish line?
Customers
Define and prioritize
market segments based
on demand &
competitive advantage
Competition
Describe the
competition's
strategies, strengths,
and weaknesses
Offerings
Specify the new or enhanced
product and services offerings.
Outline a plan for the
development or purchase of
those offerings
Financial Analysis
Determine if financial
objectives can meet
offering plans
Processes &
Structures
Determine how the
processes and
structures should be
engineered to achieve
objectives
First-Year Planning
Develop an action plan for next twelve months to implement
the strategies and meet the objectives
Align
People & Culture
Outline the talents,
passions and cultural
strengths to be
leveraged to achieve
the vision and
objectives
Strategic Business Unit _____________________
Unit _____________________________________
Date Prepared:
Sponsor: ______________________________________
[Date] · 2
Tables of Contents
Overview of Planning Worksheet
3-5
PLAN
7-8
Mission, Values and Vision
7-8
Five Year Objectives
9-21
Customers
9-11
Competition
12-15
Offerings (Products & Services)
16-19
Financials 20
Processes and Structures
People
First-Year Plan
21
ALIGN
24 - 29
Align Talents and Passions
24
Cascade the Mission, Vision and Objectives
25-26
IMPLEMENT
27
Empower and Create Positive Accountability
28
Communicate
29
[Date] · 3
Overview of Planning Worksheet
This template is designed to help you develop a clear and well thought-out plan for your organization.
Moreover, this template helps you to align your people and your units. Finally, it provides tips to endure
higher success in implementing the plan. Note that:
Today, 85 percent of management teams spend less than one hour per month discussing strategy
An average worker only spends 30 – 40% of their time focused on top priorities of the
organization
Results from a 1999 survey (that included discussions with 800 training managers) indicate the
most pressing issue within organizations is “the effective use of staff”
1999 Fortune cover story of prominent CEO failures concluded that emphasis placed on strategy
and vision created a mistaken belief that the right strategy was all that was needed to succeed.
–Over 70% of the time, the problem isn’t bad strategy but bad execution
A survey of management consultants reported that fewer than 10 percent of effectively formulated
strategies were successfully implemented
Strategy implementation among most companies is often not aligned among all business units,
support units, and employees
Opportunities for creating value are shifting from managing tangible assets to managing
knowledge-based strategies. Foundational skills and tools needed to successfully manage
knowledge-based organizations must center around “focus, alignment and execution.”
Implem
ent
Align
Pla
n
The keys to addressing these and other organizational challenges include:
Plan
The ability to link what you’re passionate about delivering with what your customers
are passionate about getting
Align
The ability to understand and align the parts the whole to achieve the vision and
strategy
Implement
The ability to execute and achieve the vision and strategy
[Date] · 4
The following models are the basis for this template
Mission5-Y
ear
Vision
Valu
es
OVERARCHING FOCUS
Mission: What is our purpose?
Values: What values will govern us?
Vision: What will we become?
Five Year Objectives: What does the finish line
look like?
Customers
People
ProcessesF
inan
cia
ls
LAST-YEAR’S ASSESSMENT
Customers: How are we doing in the marketplace?
Financials: How are we financially performing?
Processes: Have we excelled at the processes we
should to achieve our customer and financial
objectives?
People: Have optimized the alignment and
development of our people to achieve the
objectives?
Pro
cesse
s
Financials Offe
rings
Com
petitio
n
Customers
LONG-RANGE PLANNING
Customers: Define and prioritize market segments
based on demand and competitive advantage.
Competition: Describe the competition’s strategies,
strengths and weaknesses.
Offerings: Specify the new or enhanced product
and services offerings. Outline a plan for the
development or purchase of those offerings.
Financials: Determine the financials associated
with the new or enhanced product & services
offerings.
Processes and Structure: Determine how the
processes and structures should be engineered to
achieve the objectives.
People and Culture: Outline the talents, passions
and cultural strengths to be leveraged to achieve the
vision and objectives.
[Date] · 5
NEXT-YEAR’S PLAN
Develop an action plan for the next twelve months
to implement the strategies and meet the objectives
ESTABLISH ALIGNMENT
Align Talents & Passions: Understand and align
the talents and passions of associates with the
organization’s plans and objectives
Cascade the Mission, Vision and Objectives:
Translate, align and cascade the mission, vision and
objectives to all levels and among all units
SUCCESSFULLY IMPLEMENT
Empower and Create Positive Accountability:
Establish empowerment, reviews, tracking and
positive accountability
Communicate: Listen, involve, celebrate, and share
lessons learned
Mission, Vision, Values
[Date] · 6
Mission, Values, Vision, Five-Year Objectives, Measures
1. Mission Statement
Describe below what the unit’s purpose or mission is.
Example of Mission Statement
We are the Office of the Vice President and Graduate Dean of the University of Texas at Austin. Our
mission is to support the intellectual development of the University community in the following ways:
by facilitating advanced degrees through services to graduate students, faculty, undergraduates and
programs
by providing the community with access to knowledge through libraries, advanced information
systems, and museum exhibits and collections
by preserving, presenting, publishing and disseminating creative and research works for The
University, the world of learning, and the general public
by fostering international educational and research experiences for the University community
Measure
s
5 Year O
bjectives
Vision
Valu
es
Mission
Plan
[Date] · 7
2. Values
Values are those guiding principles that matter most to and govern your company.
Describe below what the unit’s values.
Example of Values
Respect - We treat those whom we have dealings as we, ourselves would except to be treated.
Teamwork – We work together, effectively in a positive and cooperative manner.
Integrity – We are honest. We honor our commitments. We are consistent and fair.
Quality – Are products meet high quality standards, so customer safety and enjoyment is maximized
Inspiration – We inspire change. We don’t change anybody’s life except our own. We act as a
catalyst to give courage to make change.
3. Vision Statement
Describe what your unit wants to achieve. Some define vision as the hope or dream around which plans,
actions, and resources are focused.
Example of Vision Statement
“We inspire change by igniting the power of proven principles so that people and organizations achieve
what matters most.“
[Date] · 8
4. Five-Year Objectives - First Draft
The purpose is to define a clear point of focus, or a finish line to work towards. The steps in developing
five-year objectives include:
Develop a tentative set of financial and marketing objectives
For each objective define “key success factor”
Describe the key strategies and measures for obtaining your vision. (Please note that your efforts to define
strategies and measures will be refined as you work through the “Aligning” portion of this planning
worksheet.)
Vision Element Measure Target By
When? Key Strategy(ies) Who
Target
Date
[Date] · 9
FINANCIALS
“To satisfy our shareholders, what financial objectives should we achieve?
1. Financial Performance Overview
Provide unit’s financial performance overview here
FY02
YTD
FY02
Forecast
FY02
Budget FY01 FY00 FY99
Revenue
COS
COS %
Margin
Margin%
SG&A
SG&A%
2. Financial Performance Variance Analysis
Identify reasons for not meeting unit budget estimates
Category Reasons
COS %
Variance
Margin %
Variance
SG&A %
Variance
Cultu
re
People
Prcess
es
Custo
mers
Shareholders
Aligning
[Date] · 10
3. Product/Service Mix for FY01 & FY02
Provide unit’s financials by product/service category for FY01 & FY02
Product or
Services
Categories
Rev.
Act.
Rev.
Fore-
Cast
Rev
%
COS
Act.
COS
Fore-
cast
COS
%
GM
Act.
GM
Fore-
cast
GM
%
4. Product/Services Variance Analysis
Provide reasons for variance from budget estimates – as applicable
Product/
Service Category Reasons
COS % Variance
Margin % Variance
SG&A % Variance
COS % Variance
Margin % Variance
SG&A % Variance
COS % Variance
Margin % Variance
SG&A % Variance
5. Capital Efficiency
Describe how the unit can reduce capital costs (e.g., A/R, Inventory, Property, Equipment)
6. Revenue
Identify how the unit can best increase revenue
7. Cost of Goods Sold
Identify how the unit can best reduce COGS
[Date] · 11
8. SG&A
Identify how the unit can best reduce SG&A costs
[Date] · 12
9. Financial Objectives
Identify the unit’s financial objectives, measures, targets, and most importantly, the initiatives to
meet the financial objectives. (Ensure the unit’s objectives align with the O-SBU objectives.)
Revenue
Objective Measure Target Initiative(s)
COS Objective Measure Target Initiative(s)
Margin Objective Measure Target Initiative(s)
SG&A Objective Measure Target Initiative(s)
Capital Efficiency
Objective
Measure Target Initiative(s)
EBITDA
Objectives
Measure Target Initiatives(s)
[Date] · 13
CUSTOMERS
“To achieve our vision and financial objectives, how should we align with our customers?”
1. Core Competencies
Identify the unit’s greatest skills or core competencies
2. Market Overview
Provide a description of your market (e.g., population, GDP, GDP growth) and related key market
trends (e.g., training, planners, consulting).
3. Competition Overview
Identify the key competitors in the market. Describe strengths and weakness of the competitors.
Also describe our threats and most importantly our opportunities
Competitor Their Strengths Their
Weaknesses
Threats to Us Opportunities
for Us
Cultu
re
People
Prcess
es
Custo
mers
Shareholders
Aligning
[Date] · 14
4. Product/Service Category Competitive Analysis
For each product/service category, identify the competitive product/service. Also, identify their strengths and
weaknesses. Most importantly, describe our threats and opportunities
Product/Service
Category
Competitor’s
Product
Their
Strengths
Their
Weaknesses
Threats to
Us
Opportunities
for Us
[Date] · 15
5. Target Customer
For each product/service category identify the most important target customer segment, their
needs, the customer measurements we have (or should have) in place, and what our value
proposition is.
Product/service
Category
Target
Customer
(Segment)
Customer Needs Customer
Measures
Our Value Proposition
6. New Product/Service Ideas
What new product/service ideas does your unit have meets customer needs and is aligned with
FC’s core competency or business plan. (Note: Refer to the “Product Lifecycle Process” on Pulse
to learn more about the product/service development process at FC)
NEW PRODUCT / SERVICE IDEAS
Title Description
[Date] · 16
7. Marketing Strategy
Describe generally the unit’s marketing strategy. (This would include a focus on, channels of
distribution, pricing, promotional concepts, distribution plans)
8. Customer Objectives
Identify unit’s customer objective, and related measures, targets, and initiatives needed to reach
the objectives. (Notes: The customer objectives should tie to the financial objectives; also, ensure
the unit objectives are aligned with O-SBU objectives.)
There are three customer strategies to differentiate oneself in the marketplace: 1.) Product
Leadership, 2.) Customer Intimacy, 3.) Operations Excellence. Generally successful companies
excel at one of these three dimensions while maintaining “threshold standards” on the other two.
Customer
Objectives Measure Target Initiative(s)
[Date] · 17
PROCESSES
To achieve customer and financial objectives, at what processes must we excel?
Michael Porter claims “activities are the basic units of competitive advantage.” The art of developing a
successful and sustainable strategy is ensuring alignment between the organization’s activities and its
customer value proposition. The activities of an organization are embodied in the process that comprise its
value chain.
Kaplan and Norton state there are four sets of processes. They note that companies generally excel at one
and maintain thresholds with the others.) These process categories include:
o Innovation Processes
o Customer Management Processes
o Operational Processes
o Regulatory & Environmental Processes
There are also support processes – which are many of the administrative and overhead functions necessary
to support daily operations.
It is important to identify the unit’s processes, and to define those processes critical to excel at to satisfy
customers. In addition, process should be identified that if improved, can contribute to the financial
objectives of the unit.
1. Identify your Innovation Processes (at a high-level)
Innovation
Processes
Solution
Development
Customer Service
Relationship
Management
Advisory Services
Customer
Management
Processes
Supply Chain
Management
Operations
Efficency: Cost,
Quality, Cycle Time
Capacity
Management
Operational
Processes
Health
Safety
Environment
Social
Regulatory &
Environmental
Processes
Invention
Product Development
Speed to Market
Partnerships
Cultu
re
People
Prcess
es
Custo
mers
Shareholders
Aligning
[Date] · 18
Process Type Process Title Process Objective Process Measures Current
Performance
To what extent will excelling at this process help us to achieve
our customer and financial
objectives? (High, Medium, Low)
Identify the
Innovation
Processes (at a high-
level)
2. Identify your Customer Management Processes (at a high-level)
Identify the
Customer
Management
Processes
Process Title Process Objective Process Measures Current
Performance
To what extent will excelling at
this process help us to achieve
our customer and financial objectives? (High, Medium,
Low)
[Date] · 19
3. Identify your Operational Processes (at a high-level)
Identify the
Operational
Processes
Process Title Process Objective Process Measures Current
Performance
To what extent will excelling at this process help us to achieve
our customer and financial
objectives? (High, Medium, Low)
4. Identify your Support Processes
Identify the Support
Processes
Process Title Process Objective Process Measures Current
Performance
To what extent will excelling at this process help us to achieve
our customer and financial
objectives? (High, Medium, Low)
[Date] · 20
5. Process Objectives
Identify processes to target to meet customer and financial objectives
Targeted Process(es)
Process Objective Measure Target Initiative(s)
[Date] · 21
PEOPLE
To achieve our vision and objectives, how must we develop our people?
Learning & Development Identify the job functions, and needed learning and growth that needs to occur to achieve the
vision and objectives of the unit?
Job Functions Needed Learning and Growth
How important is this
to achieve the
objectives? (High,
Medium, Low)
People Objectives
Identify the people related strategic initiatives needed to achieve the financial objectives, meet the
needs of the targeted customers, and carry out the processes aligned to the customers.
People Objective(s) Measure Target Initiative(s)
[Date] · 22
CULTURE
To achieve our vision and objectives, how must we align our culture?
What culture must we have to achieve our vision and objectives?
What are cultural barriers we have today?
How can we use our strengths to overcome our barriers?
Culture Objective(s) Measure Target Initiative(s)
[Date] · 23
ALIGNING
Review each initiative to ensure that there is a direct cause and effect relationship between initiatives to
improved shareholder value
Example of “Initiatives – Cause and Effect diagram”
Develop
Prepared
Employees
Create
Process
Excellence
Increase
Customer
Value
Improve
Shareholder
Value
Create New
Review
Increase
Customer Value
Improve Cost
Structure
Improve Asset
Utilization
New Customers
New Markets
New Products
Cross Selling
Improve COGS
Improve SG&A
Increase Pricing
Reduce Capital $
Improve A/R
Improve Inventory
Develop New
Products
Invention
Product Development
Speed to Market
Partnerships
Improve Customer
Relationships
Customer Service
Customer Solutions
Relationship
Management
Grow & Improve
Image
New Markets
Enhanced Marketing
Public Relations
Product
Development
Process
Implement World-
Class Product
Development
Process
Customer
Management
Sales & Marketing
Implement World-
Class Customer
Service
Customer
Management
Processes
Sales Processes
Marketing Processes
Operations
Supply Chain
Manufacturing
Strategic
Competencies
Strategic
Information
Climate for
Results
Close Skill Gap
Close Information
Gap
Create Results
Climate
Cultu
re
People
Prcess
es
Custo
mers
Shareholders
Aligning
[Date] · 24
Identify the priorities & resource requirements of the initiatives
Example of “Objectives Table”
FINANCIAL OBJECTIVES Objective ABC Measure Target Strategic
Initiatives
ABC FTE
Req.
Owner Target
Completion
Date
CUSTOMER OBJECTIVES Objective ABC Measure Target Strategic
Initiatives
ABC FTE
Req.
Owner Target
Completion
Date
PROCESS OBJECTIVES Objective ABC Measure Target Strategic
Initiatives
ABC FTE
Req.
Owner Target
Completion
Date
PEOPLE & CULTURAL OBJECTIVES Objective ABC Measure Target Strategic
Initiatives
ABC FTE
Req.
Owner Target
Completion
Date
[Date] · 25
IMPLEMENTING
Assess: Understand and align the talents and passions of
associates with the objectives and initiatives
Cascade: Translate and cascade the objectives and
initiatives to all levels
Empower: Create the right conditions for people to make
their greatest contribution
Account: Institute accountability
Communicate: Listen, involve, communicate, celebrate
successes, and share lessons learned
ASSESS
“Understand and align the talents and passions of associates with the objectives and initiatives”
Determine the talents and passions needed to implement the objectives and initiatives
Fully understand the talents and passions of the associates (Note: An organization should have a
database of the talents and passion of their associates)
Determine where the best opportunities exist to align the needs of the organization with the talents
and passions of the associates
Create exciting opportunities for associates to apply their talents and passions
Example of “Initiatives - Talent and Passion Alignment Spreadsheet”
Top Initiatives Talent & Passion Needs Candidates Their Talents Their Passions
Com
munic
ate
Account Em
power
Cascade
Assess
Implementing
[Date] · 26
CASCADE
“Translate and cascade the objectives and initiatives to all levels”
a. Translate the Strategic Objectives and Initiatives into Unit Level
“Unit Alignment Spreadsheet”
Mission
Vision
Values
Strategic
Objectives &
Initiatives
Unit
Objectives &
Initiatives
Personal
Objectives &
Initiatives
Com
munic
ate
Account Em
power
Cascade
Assess
Implementing
Objectives Measure Target Q1 Target Q2 Target Q3 Target Q4 Initatives Owner Objectives Measure Target Q1 Target Q2 Target Q3 Target Q4 Initatives Owner
PEOPLE AND CULTURE OBJECTIVES
Identify Needed
Competencies
& Close Gap
Provide
Strategic
Information
Create Climate
for Results
Implement
World-Class
Product
Development
Improve
Customer
Management
Processes
Improve Sales
& Marketing
Processes
Improve
Operations
Processes
Create
Compelling
New Products
Improve
Customer
Intimacy
Grow &
Improve Image
PROCESS OBJECTIVES
Increase
Customer
Value
Improve Cost
Structure
Improve Asset
Utilization
CUSTOMER OBJECTIVES
Strategic Objectives & Initiatives Unit Objectives & Initiatives
FINANCIAL OBJECTIVES
Create New
Revenue
[Date] · 27
b. Translate the Unit Objectives and Initiatives into Personal Objectives and Initiatives
“Unit to Individual Alignment Sample”
c. Translate how the mission, vision and values specifically applies and will be adhered to by:
Each Unit
Each Individual
Objectives Measure Target Q1 Target Q2 Target Q3 Target Q4 Initatives Owner Objectives Measure Target Q1 Target Q2 Target Q3 Target Q4 Initatives
Create Climate
for Results
Provide
Strategic
Information
PEOPLE AND CULTURE OBJECTIVES
Identify
Needed
Competencies
& Close Gap
Increase
Customer
Value
Unit Objectives & Initiatives Individual Objectives & Initiatives
FINANCIAL OBJECTIVES
[Date] · 28
EMPOWER
(Refer to 4 Roles of Leadership Training Material)
Assess leadership styles
Understand the levels of empowerment
Evaluate what empowerment is needed for each person
Establish win-win agreements tied to personal work objectives & initiatives
Associates develop plans to implement win-win agreements
Com
munic
ate
Account Em
power
Cascade
Assess
Implementing
[Date] · 29
ACCOUNT
Establish a compensation and incentive program aligned to the accomplishment of objectives and
initiatives
Develop implementation and/or project plans clearly outlining key milestones and deliverables
Establish and maintain an effective tracking mechanism to assess progress towards targets,
objectives, initiatives, etc.
Institute and maintain a regular and frequent (e.g., weekly) progress checks at all levels
Conduct quarterly performance reviews with all associates
Action Who When
Establish a compensation and
incentive program aligned to the
accomplishment of objectives and
initiatives
Develop implementation and/or
project plans clearly outlining key
milestones and deliverables
Establish and maintain an
effective tracking mechanism to
assess progress towards targets,
objectives, initiatives, etc.
Institute and maintain a regular
and frequent (e.g., weekly)
progress checks at all levels
Conduct quarterly performance
reviews with all associates
Com
munic
ate
Account Em
power
Cascade
Assess
Implementing
[Date] · 30
COMMUNICATE
Create ongoing forums at all levels to solicit input and buy-in to help ensure accomplishment of
objectives
Promote a clear understanding of the objectives and initiatives
Establish a regular and frequent progress communication program at all levels
Institute an effective change notification process, so that when changes occur, those impacted can
make adjustments to ensure alignment
Action Who When
Create ongoing forums at all levels to
solicit input and buy-in to help ensure
accomplishment of objectives
Promote a clear understanding of the
objectives and initiatives
Establish a regular and frequent progress
communication program at all levels
Institute an effective change notification
process, so that when changes occur, those
impacted can make adjustments to ensure
alignment
Com
munic
ate
Account Em
power
Cascade
Assess
Implementing
[Date] · 31
MODELING
(Refer to 4 Roles of Leadership Training Material)
Modeling answers these four questions:
Who would follow me?
Do I take responsibility?
Do I “walk my talk”?
Am I trustworthy?
Implem
enting
Path
findin
g
Modeling
Aligning