STRATEGIC BUSINESS PLANNING

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STRATEGIC BUSINESSPLANNING

• Designing the Future of the Organization

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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

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D IO
NO !
NO !
Op
NO !
NO !
NO !
YES!!!
NO !
NO !
NO !
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The 5 Key Factors -/

• Lack of a clear, specific , vivid, compelling
  and realistic vision. What is your clear Intended
  Outcome?
• Lack of urgency. You must turn the business
  planinto a business reality.
• Lack of open, honest communication.
  C-C-C-T
• Allowing sub-par employees to remain.
  T.T.T.
• Turning the focus inward. The customer MUST be
  the focus

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Thinking Down Board
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I hate
Somebody should
I wish
Why dont they
COMPLAIN
I am sick of
They ought to
It is stupid
ACCEPT
CHANGE
It will always be like this I have no control I
cant impact this It is out of my hands No need
to plan It has already happened I dont have the
authority It is not worth the effort or risk I
cant fight it any longer
I must do something I can make a difference I am
willing to work and fight I can impact or
influence this I demand that things change It is
worth the risk I must make a plan This is my
responsibility This cant go on
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What is Strategic Business Planning ?
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The Elements of the Strategic Business Planning
Model
Page 2
Vision Define the business Goals Targets Measureme
nts
Read page 3 for the more simplistic view
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1. Long-term impact of decisions
Page 4

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

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2. Strategic Business Planning is a process
Page 4

• It is a process that begins with the setting of
  organizational aims, defines strategies and
  policies to achieve them, and develops detailed
  plans to make sure that strategies are
  implemented so as to achieve the results sought.

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3. It is a philosophy
Page 4

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

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4. It gives structure
Page 4

• A formal strategic planning system links the
  three major types of organizational plans
• Long-range Strategic Plans
• Medium-range Programs
• Short-range Budgets and Operating Plans

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What Strategic Business Planning is Not !
Page 5

• 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.

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Why Planning Pays Off
Page 6

• Asks answers questions of importance
• Simulates the future
• Forces the setting of objectives
• Gives a framework for decisions
• Develops performance measurements
• Improves communications

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Varied Goals for Strategic Business Planning
Page 7

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

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The 5 tasks of Strategic Business Planning
Page 8
Gap SWOT analysis -Setting objectives
Defining the business / developing a Vision
Crafting a strategic Action Plan
Evaluating performance reviewing - adjusting
correcting
Implementing and executing strategy
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BusinessThinking
Pages 9 10

• Check your ego at the door
• Create Curiosity
• Move off the solution
• Get evidence
• Calculate the impact
• Explore the ripple effect
• Slow down for yellow lights

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Task 1Define the BusinessDevelop a Vision
Page 11

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

Some key questions to think about
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Page 11
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?
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Task 1 - Define the BusinessDevelop 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

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The GAP / SWOT Analysis
Page 15
The GAP
Vision 3-5 years
Situation Audit
Where you want to go.
Where you are today.
What you have to do to get there.
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This is the crucial stage of asking and honestly
answering dozens of very difficult questions
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Gap / SWOT Work Shop
Page 15

• Read and answer ALL the questions on pages 15-21
• Some will be redundant
• Some you wont know
• Many you will need more information in order to
  answer
• Some will not apply
• Write your answers on a separate sheet
• Write very clearly complete sentences
• This is supposed to be very hard work

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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
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Factors are
Page 22

• 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

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As you review the analysis
Page 22

• 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 Factor

Examples 1. Our major competitors are Acme and
Ajax. C 2. We currently have 15 market share.
A 3. The target is to reach 20 Market Share by
6/30/03 A 4. DK if Sun Systems is planning to
enter our market. B 5. DK if we can renegotiate
our supplier contracts. B 6. DK if we can
automate part of our production process. A 7.
Our current computer system is not sufficient for
our needs. A 8. DK the technical specs of an
acceptable computer system. B
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It may help to create Factor categories to keep
track of the major themes
Page 23

• Financial
• Technical
• Marketing
• Sales
• Personnel
• Customers
• Competitors

Factors workshop pages 22-25
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Business Objectives
Page 26

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

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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?

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Isnt 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.

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The setting of Business Objectives may take days
or even weeks

• Begin the workshop on pages 26 27

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The rubber meets the road
Page 28
Business Objectives drive the Strategic Action
Plan
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Delegation Empowerment MBO Strategic Plan
pecific
easurable
SMART
greed Upon
ealistic
Write them down
ime Bound
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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 date
• Cross-reference with key Factors
• Hold people accountable
• Track progress and failure
• Adjust as needed new info

Workshop pages 28 29
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Contingency Planning
Page 30

• Factors that could have a serious impact on
  your business.
• Probability - or H/L
• Impact - or H/L
• Trigger Point - measurable
• Contingency Plan - Action

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The final steps but the critical ones
Page 31

• Implementation
• Monitoring, review, adjustment
• New vision - new plan

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That is

• Strategic
• Business
• Planning

Thank You