strategic planning that works

Strategic PlanningTHAT WORKS!

Rob Waite(502) 262-5910

robwaite.com, inc(502) 262-5910

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“Why can’t we just work on what we are doing and just see where it goes?”

“If you don’t know where you are going, you might not get there?” – Yogi Berra

• Resource sub-optimization• Wasted energy• Frustration• WASTED MONEY!


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Let’s get into a strategic frame of mind…

• Creativity – commoditization is the enemy and creativity is the solution.

• Open mind – creativity rarely results from a logical process. Great ideas come from everywhere.

• Open mouth – Everyone must participate.

• Perspective – What is the sum of 2+2?

• Courage - to be vulnerable, to be wrong

• Respect the company’s history, but don’t let the past be a boat anchor that holds the company from moving to its future.


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The evolution of a business

Start-up

Rapid Growth

Expansion

Survival

Maturity

Time


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Evolution of a business – Company Objectives per Stage

• Start-up• Obtaining customers and cash• Producing product

• Survival• Expanding revenues• Cost awareness• Quality consciousness

• Rapid Growth• Maintaining Perspective (Reality vs. Euphoria)• Coordinate resources• Balancing today’s and tomorrow’s needs• Start to develop a management team

• Expansion• Financing growth• Maintaining control, enthusiasm and commitment.• Hire a professional management team

• Maturity• Expense control• Productivity• Management of market niches• Strategic organizational structure• Succession planning• Entrepreneur as Chairmen

“One man band” strategy development

Ad hoc strategy development

Management team strategy development

Organizational wide strategic development process


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According to Fast Company, what are the two main reasons companies fail?

• Lack of a strategy

• In ability for the senior team to function as a team.


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The Strategic Planning Process

Who are we?

Where are we going?

How are we goingto get there?

Strategic Hypothesis

Fine tuning/course correction

Mission Statement

Vision

Testing and Revision of the Hypothesis

Implementing the Strategy


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The outcome of the session will yield the following:

The 6 Marketing Imperative

s Plan


s Plan

Green PlanGreen Plan

Strengths: Weaknesses:

Opportunities: Threats:

Mission Statement

Mission Statement

Internal and External

Communication Plan


Communication Plan

VisionStatement

VisionStatement

Who are we

Where we are goingHow we are going to get there

SWOT Analysis


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What is a Mission Statement?

• The mission statement tells customers and employees WHO you are.

• The vision statement tells customers and employees WHERE you are going.

• The mission statement is a broad description of the ballpark you want to play in.

• A platform for building the vision statement


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SWOT Analysis

• Strengths – What are your internal strengths?

• Weaknesses – What are your internal weaknesses?

• Opportunities – What are your external opportunities?

• Threats – What are your external threats?


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Questions to think about in developing the SWOT Analysis.

• What gives us the most problems?• What are the best things customers say about us?• What are the worst things they say?• What do our employees complain the most about?• What keeps me awake at night?• What is the “coolest” project we are working on? Why?• What keeps me motivated at my company?• What are those “if only we…” statements that have gone

through your mind?• Are we as profitable as I think we can be? Why or why not?• If your job was to destroy your company and not bankrupt your

company in the process, how would you do it?• What indicators do I look at for future trends and opportunities?• Why, based on all the competitive alternatives, should

customers buy from us???


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Outcome of the SWOT exercise




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Outcome of SWOT exercise

1. Rate Strengths and Weaknesses importance to business success – Leverage/Improvement Plan

High Probability Low Probability

High Attractiveness

Low Attractiveness

2. Create an Opportunities Matrix

High Probability Low Probability

High Seriousness

Low Seriousness

3. Create a Threat Matrix

4. Rate our competitors..\SWOT Worksheets\Competitive analysis using SWOT1.xls


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The Vision Thing…

• Lack of a vision ensures a lack of focus and direction for the company.

• A vision must be concise, simple, specific, narrow and clearly articulated. It’s job is to tell everyone what they are to be doing and what they can expect.

• A vision is not a vision unless it says yes to some ideas and no to others, inspires people and is a reason to get out of bed in the morning and come to work.


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An example of a bad vision statement:

• An example of a bad vision:

“Our vision is to realize a future where ingenuity and commitment can redefine what’s possible in the ABC industry. This is the opportunity for XYZ Company: Imagine it. We have the ability, the resources and the drive to achieve it.”


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An example of a good vision statement:

“We will be the world leader in drywall and associated systems.

A world leader is the company that:

1. Has the low net delivered cost position.

2. Is the benchmark for innovation.

3. Offers the widest geographical coverage.

An ‘associated system’ is anything that touches drywall AND will enable us to sell more drywall.”


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The 6 Marketing Imperatives

• Pick Markets that matter• Select Segments (submarkets) to dominate• Design Market Offer to create value for the

customer and secure Differential Advantage• Integrate to serve the customer• Measure what matters (KPIs)• Answer the customers number one question:

“Why, based on all of the competitive alternatives, should I buy from you and your company?”

..\The 6 Marketing Imperatives Plan.doc


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Time to work!The 6 Marketing Imperatives


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Communication Plan

• Internal Communication Plan• Leadership presentations• Newsletter• Employee Feedback• Wiki/Intranet

• External Communication Plan• Leadership Travel and Phone Follow up• Customer Newsletters• Trade Shows/Associations• Company web site• Social Marketing

• Senior Management Communication Plan• Monthly review of the 6 Marketing Imperatives and the Green

Plan• “What’s going on meeting”• Twice yearly strategy review/planning• Avoiding the 5 Dysfunctions of a Team!


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The outcome of the session should yield the following:


s Plan


s PlanGreen PlanGreen Plan



Mission Statement

Mission Statement


Communication Plan


Communication Plan

VisionStatement

VisionStatement

SWOT Analysis


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Implementing the Strategy

• 25/50/25 Principal

• Align variable compensation to the strategy

• Stick with the game plan• “Leaving the game plan is a sign of panic

and panic is not in our game plan.” – Chuck Noll, 4 time Super Bowl head coach

• KPI Focus/Root Cause analysis…

• Avoid the 5 dysfunctions of a team!


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Fine tuning and course correction

• KPI monitoring and root cause analysis• Aiming corrective measures at root causes

is more effective than merely treating the symptoms of a problem.

• To be effective, RCA must be performed systematically, and conclusions must be backed up by evidence.

• There is usually more than one root cause for any given problem


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The Five Whys

• My car will not start. (the problem) 1. Why? - The battery is dead. (first why) 2. Why? - The alternator is not functioning.

(second why) 3. Why? - The alternator has broken beyond

repair. (third why) 4. Why? - The alternator is well beyond its

useful service life and has never been replaced. (fourth why)

5. Why? - I have not been maintaining my car according to the recommended service schedule. (fifth why, root cause)


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Dysfunction 1 – Absence of Trust

• Members of great teams trust one another on a fundamental, emotional level, and they are comfortable being vulnerable to each other about their weaknesses, mistakes, fears, and behaviors.

• They get to a point where they can be completely open with one another, without filters. This is essential because…


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Dysfunction 2 – Fear of Conflict

• … teams that trust one another are not afraid to engage in passionate dialogue around issues and decisions that are key to the organization’s success.

• They do not hesitate to disagree with, challenge and question one another, all in the spirit of finding the best answers, discovering the truth and making great decisions.

• This is important because…


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Dysfunction 3 – Lack of Commitment

• … teams that engage in unfiltered conflict are able to achieve genuine buy-in around important decisions, even when various members of the team initially disagree.

• That’s because they ensure that all opinions and ideas are put on the table and considered, giving confidence to team members that no stone has been left unturned.

• This is critical because…


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Dysfunction 4 – Avoidance of Accountability

• … teams that commit to decisions and standards of performance do not hesitate to hold one another accountable for adhering to those decisions and standards.

• What is more, they don’t rely on the team leader as the primary source of accountability, they go directly to their peers.

• This matters because…


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Dysfunction 5 – Inattention to Results

• … teams that trust one another, engage in conflict, commit to decisions and hold one another accountable are very likely to set aside their individual needs and agendas and focus almost exclusively on what is best for the team.

• They do not give in to the temptation to place their departments, career aspirations, or ego-driven status ahead of the collective results that define team success!

strategic planning that works

Business

bad vision statement

good vision statement

vision thinglack

vision statement10

xyz company

fast company

external opportunities

business company objectives