Navigating Strategic Growth

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Navigating Strategic Growth
October, 2014
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Todays Objectives and Agenda

• Objective
• Understand the importance of strategic choices in
  driving profitable growth
• Learn how to create a simple, easily
  internalized, democratized roadmap to navigate a
  winning strategy for your business
• Agenda
• Weve Got This Covered We Have a Strategy
• Ok, Do We Really Need a Strategy?
• Benefits of a Strategic Plan
• Why Strategies Fail
• Elements of a Strong Strategic Business Plan
• Building a Plan _at_ a Glance
• OGSA (Objectives, Goals, Strategies, Actions)
  Examples
• Cascading Functional Strategies
• Whats Required For This Process to Work
• Check Up/Check In Process
• QA

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Weve Got This Covered We Have a Strategy

• Three Types of CEOs
• Those who think they have a strategy the most
  abundant
• Those who pretend to think that they have a
  strategy, but deep down are really hesitant
  because they fear they dont actually have one
  fewer in number
• Those who do have a strategy very few of them,
  but often heads of very successful companies

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Were You Not Listening in Elementary School?
Would you tell me, please, which way I ought to
go from here? That depends a good deal on where
you want to get to, said the Cat. I dont much
care where--- said Alice. Then it doesnt
matter which way you go, said the Cat. so long
as I get SOMEWHERE, Alice added as an
explanation. Oh, youre sure to do that, said
the cat, if you only walk long enough. Alices
Adventures in Wonderland, Chapter 6 If you
dont know where youre going, any road will get
you there. Lewis Carroll
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Ok, Do We Really Need a Strategy?
Leaders have many options they can pursue to grow
their business. A strong strategy identifies the
critical few choices that will allow them to
achieve their goals. It helps the entire
organization focus on what really matters.
"If you're a CEO, you're bombarded every minute
of every day with things that need your
attention. Unfortunately, that puts you in the
here and now, short-term thinking. What you
really need to do is find the time and have the
discipline to step back and think through what
winning is, where you are going to play, how you
are going to play.
A.G. Lafley, CEO,
Procter Gamble
What is strategy but resource allocation? When
you strip away all the noise, thats what it
comes down to. Strategy means making clear-cut
choices about how to compete. You cannot be
everything to everybody, no matter what the size
of your business or how deep its pockets

Jack Welch, former CEO, General Electric
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Benefits of a Strategic Plan

• Improved odds of success/risk reduction
• Strong, informed choices
• Everyone is on the same page
• Improved alignment and understanding
• One page summary is easy to follow and share
• Works well with employees and other stakeholders
• Improved productivity
• Less time wasted on low value activity
• All resources moving in the same direction
• Improved accountability
• Goals are clear to all
• Action plans have owners and deadlines

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Why Strategies Fail

• Not Really Making Choices
• Focus and concentrate on specific markets,
  customers, consumers
• What will you do, what will you stop doing?
• Stuck in the Moment
• Strategies are a summary/to do list of
  everything youre currently doing
• Or did last year
• Have No Relationship to Value Creation
• How do stakeholders benefit from the strategic
  choices measurement
• Its Too Complicated
• Its In a Book On the Shelf
• Nobody Knows About It
• Mistaking Objectives and Tactics for Strategy
• Objective Get in Shape. Strategy Focus on
  Nutrition and Exercise. Tactics Limit fats
  and sugars, Fitness Classes 3x/week. Goal 160
  lbs. by New Years Day

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Getting the Terminology Straight
Discussion Examples Objectives, Strategies,
Goals, Tactics

• Expand distribution into Latin America
• Close the deal with xyz company
• Deliver profitable growth in the top quartile of
  our competitive set
• Reduce cost structure by 10, generating savings
  of 1M in 2015
• Increase marketing investment by reducing cost
  structure 10, generating savings of 1M in 2015
• Leverage 6 sigma throughout the organization
• Open new manufacturing facility by January 2016
• Develop medicines that reduce suffering and serve
  as a source of affordable care for children in
  the developing world
• Improve throughput by 15
• Enter adjacent category with premium product

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Elements of a Strong Strategic Business Plan

• Organizations often miss the opportunity to
  propel their business to the next level by
  failing to create and deploy a simple,
  disciplined strategic plan. Four key elements
  support the achievement of your business
  objectives and goals.
• What To Be. The companys purpose-driven
  mission. It defines what success looks like.
  What business are we in? What purpose do we
  serve?
• Where To Play. Where the company will compete.
  What categories and markets will we play in?
  What channels and price tiers?
• How To Win. How the organization will deliver
  success. How will we organize for success? Who
  will we partner with?
• What To Do. The action plans support the above
  Where to Play and How to Win choices. Each
  choice should have a few priority initiatives.
  Each initiative must have an assigned leader.
• These elements can and should be defined on a
  single page, along with specific measurable goals
  for the planning horizon.

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The Strategic Plan on One Page
Mission (What to Be) Mission (What to Be) Mission (What to Be)
Objective (Define Winning) Strategy (Where to Play) (How to Win) Action Plans (What to Do)
Goals (Measure Winning) Strategy (Where to Play) (How to Win) Action Plans (What to Do)
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Building a Plan at a Glance

• An Example
• Your sixteen year old son/daughter tells you they
  are beginning to contemplate moving out, enjoying
  their independence and finding their way in the
  world as a soon-to-be adult.
• Lets assume you think your son/daughter belongs
  in college as a next step. How can you help them
  create a winning strategic life plan that they
  will buy into to guide them through the next
  couple of years?
• Key Questions
• Who do you want to become, what interests you, do
  you hope to leave the world a better place
  What is your purpose/mission?
• How do you define winning/how will you know
  youve successfully moved in the direction of
  your mission What is your Objective?
• How will you measure winning
  
  What are your measurable
  Goals that link to your Objective?
• What strategies will you employ to achieve your
  objective?
  Where to Play/How to Win
• What specific actions will you take to deliver on
  your strategic choices?

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The Strategic College Plan on One Page
Mission (What to Be) Leave the world a better place for future generations by improving the health of marine animals and of our waterways. Mission (What to Be) Leave the world a better place for future generations by improving the health of marine animals and of our waterways. Mission (What to Be) Leave the world a better place for future generations by improving the health of marine animals and of our waterways.


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The Strategic College Plan on One Page
Mission (What to Be) Leave the world a better place for future generations by improving the health of marine animals and of our waterways. Mission (What to Be) Leave the world a better place for future generations by improving the health of marine animals and of our waterways. Mission (What to Be) Leave the world a better place for future generations by improving the health of marine animals and of our waterways.
Objective (Define Winning) Gain acceptance into a top tier Marine Biology program at a school where I can enjoy a balanced college experience including college athletics Greek life

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The Strategic College Plan on One Page
Mission (What to Be) Leave the world a better place for future generations by improving the health of marine animals and of our waterways. Mission (What to Be) Leave the world a better place for future generations by improving the health of marine animals and of our waterways. Mission (What to Be) Leave the world a better place for future generations by improving the health of marine animals and of our waterways.
Objective (Define Winning) Gain acceptance into a top tier Marine Biology program at a school where I can enjoy a balanced college experience including college athletics, Greek life and go a little crazy Strategy (Where to Play) Public coastal university with a top 10 program in Marine Biology Midsize university (15k) with Greek Life and a strong NCAA football program (How to Win) Pinpointed tutoring biology, SAT/ACT scores Well rounded, unique resume with a focus on environmental leadership
Strategy (Where to Play) Public coastal university with a top 10 program in Marine Biology Midsize university (15k) with Greek Life and a strong NCAA football program (How to Win) Pinpointed tutoring biology, SAT/ACT scores Well rounded, unique resume with a focus on environmental leadership
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The Strategic College Plan on One Page
Mission (What to Be) Leave the world a better place for future generations by improving the health of marine animals and of our waterways. Mission (What to Be) Leave the world a better place for future generations by improving the health of marine animals and of our waterways. Mission (What to Be) Leave the world a better place for future generations by improving the health of marine animals and of our waterways.
Objective (Define Winning) Gain acceptance into a top tier Marine Biology program at a school where I can enjoy a balanced college experience including college athletics Greek life and general debauchery Strategy (Where to Play) Public coastal university with a top 10 program in Marine Biology Midsize university (15k) with Greek Life and a strong NCAA football program (How to Win) Pinpointed tutoring biology, SAT/ACT scores Well rounded, unique resume with a focus on environmental leadership
Goals (Measure Winning) Visit 3 schools by May 2015 Earn an unweighted high school GPA of 3.8 or higher Achieve SAT/ACT scores in the top half of the range for my target colleges Quarterly participation in relevant extracurricular activity Gain early acceptance into 2-3 schools by 12/1 senior year Strategy (Where to Play) Public coastal university with a top 10 program in Marine Biology Midsize university (15k) with Greek Life and a strong NCAA football program (How to Win) Pinpointed tutoring biology, SAT/ACT scores Well rounded, unique resume with a focus on environmental leadership
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Mission (What to Be) Leave the world a better place for future generations by improving the health of marine animals and of our waterways. Mission (What to Be) Leave the world a better place for future generations by improving the health of marine animals and of our waterways. Mission (What to Be) Leave the world a better place for future generations by improving the health of marine animals and of our waterways.
Objective (Define Winning) Gain acceptance into a top tier Marine Biology program at a school where I can enjoy a balanced college experience including college athletics, Greek life and unspeakable debauchery Strategy (Where to Play) Public coastal university with a top 10 program in Marine Biology Midsize university (15k) with Greek Life and a strong NCAA football program (How to Win) Pinpointed tutoring biology, SAT/ACT scores Well rounded, unique resume with a focus on environmental leadership Action Plans (What to Do) Identify top 10 marine bio programs and visit 3 SE/SW coastal schools Research social/athletics fit online and by interviewing local grads of the university Get copies of university student newspapers SAT/ACT practice tests Biology tutor 3x/week Take AP science courses junior and senior year Get summer internship at Birch aquarium (La Jolla) Start environmental club Volunteer for ocean/marine cleanup Engage Olivia Pope
Goals (Measure Winning) Visit 3 schools by May 2015 Earn an unweighted high school GPA of 3.8 or higher Achieve SAT/ACT scores in the top half of the range for my target colleges Quarterly participation in relevant extracurricular activity Gain early acceptance into 2-3 schools by 12/1 senior year Strategy (Where to Play) Public coastal university with a top 10 program in Marine Biology Midsize university (15k) with Greek Life and a strong NCAA football program (How to Win) Pinpointed tutoring biology, SAT/ACT scores Well rounded, unique resume with a focus on environmental leadership Action Plans (What to Do) Identify top 10 marine bio programs and visit 3 SE/SW coastal schools Research social/athletics fit online and by interviewing local grads of the university Get copies of university student newspapers SAT/ACT practice tests Biology tutor 3x/week Take AP science courses junior and senior year Get summer internship at Birch aquarium (La Jolla) Start environmental club Volunteer for ocean/marine cleanup Engage Olivia Pope
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Objectives, Goals, Strategies, Actions (OGSA) -
Service Business Example
Mission Inspire Passion for Nature and Save Wildlife for Future Generations Mission Inspire Passion for Nature and Save Wildlife for Future Generations Mission Inspire Passion for Nature and Save Wildlife for Future Generations
Objective Inspire every visitor w/wildlife everyday, by transforming all elements of the experience to achieve our mission build financial stability to succeed long term Strategies Engage Visitors With Wildlife (Oehler) Improve passion for zoo and its mission through more personalized innovative experiences that improve engagement with an outstanding animal and plant collection 2. Focus On The G.U.E.S.T. (Yelton) Create a visitor-focused experience with outstanding customer service, facilities, and staff that encourages repeat visits. 3. Create a Culture of Excellence (Walton) Create a positive, customer- oriented culture by raising expectations, empowering staff/volunteers and rewarding exceptional performance. Financial Strength (Smith) Support programs that drive net membership, daily attendance and revenue, while enhancing cost control everywhere in the organization. 5. Promote Sustainability (Fisher) Develop utilize innovative approaches to continually reduce the environmental footprint of the zoo and engage our visitors re sustainability in their lives. Action Plans 1a Improve operant condition, integrated collection plan expand community participation (Oehler/Jun 14) 1b Inspire Conservation Action through Wildlife Encounters (Jenike/Apr 14) 2a Improve facilities and visitor amenities, particularly increased parking plan (Smith/Nov 13) food quality service, reptile house roof, and misting (Fischer Jun 14) 2b Develop Signage Plan to improve communications to our visitors (Alt/Mar 14) 3a Define the goals, general principles, initial elements of a Zoo health wellness program (Walton/Dec 13) 3b Refine and broaden reward and recognition program for staff and volunteers to reinforce strategic plan priorities (Walton) 4a Refine implement 5 yr integrated pricing structure for admissions, membership, group sales, education including discounts (Smith/Jan 14) 4b Build a plan to grow renewals new member HHs (Amrine/Dec 13) 5a Continue to drive down usage of natural resources (Mark/Ongoing) 5b Promote and solidify our standing as the greenest zoo in America, including solar array complete distribute Green Print material (Fisher/Apr 14)
Goals Strategies Engage Visitors With Wildlife (Oehler) Improve passion for zoo and its mission through more personalized innovative experiences that improve engagement with an outstanding animal and plant collection 2. Focus On The G.U.E.S.T. (Yelton) Create a visitor-focused experience with outstanding customer service, facilities, and staff that encourages repeat visits. 3. Create a Culture of Excellence (Walton) Create a positive, customer- oriented culture by raising expectations, empowering staff/volunteers and rewarding exceptional performance. Financial Strength (Smith) Support programs that drive net membership, daily attendance and revenue, while enhancing cost control everywhere in the organization. 5. Promote Sustainability (Fisher) Develop utilize innovative approaches to continually reduce the environmental footprint of the zoo and engage our visitors re sustainability in their lives. Action Plans 1a Improve operant condition, integrated collection plan expand community participation (Oehler/Jun 14) 1b Inspire Conservation Action through Wildlife Encounters (Jenike/Apr 14) 2a Improve facilities and visitor amenities, particularly increased parking plan (Smith/Nov 13) food quality service, reptile house roof, and misting (Fischer Jun 14) 2b Develop Signage Plan to improve communications to our visitors (Alt/Mar 14) 3a Define the goals, general principles, initial elements of a Zoo health wellness program (Walton/Dec 13) 3b Refine and broaden reward and recognition program for staff and volunteers to reinforce strategic plan priorities (Walton) 4a Refine implement 5 yr integrated pricing structure for admissions, membership, group sales, education including discounts (Smith/Jan 14) 4b Build a plan to grow renewals new member HHs (Amrine/Dec 13) 5a Continue to drive down usage of natural resources (Mark/Ongoing) 5b Promote and solidify our standing as the greenest zoo in America, including solar array complete distribute Green Print material (Fisher/Apr 14)
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Objectives, Goals, Strategies, Actions (OGSA) -
Mfg Business Example
Mission Make boats owners proud and loyal enthusiasts by making their maintenance experience easier and more effective. Mission Make boats owners proud and loyal enthusiasts by making their maintenance experience easier and more effective. Mission Make boats owners proud and loyal enthusiasts by making their maintenance experience easier and more effective.
Objective Accelerate global sales and profit growth rates to increase shareholder value. Strategies 1. Expand Global Footprint with new partners, with emphasis on Brazil and China. (Miller) 2. Enter power tools category, building on liquid cleaners and manual brush base (Garcia) 3. Consolidate minor brands under Coralpure mega brand (Williams) 4. Simplify supply chain, with fewer partners to leverage scale (Brown) 5. Improve employee engagement, with special emphasis on acquired businesses (Davis) Action Plans 1a) Define the right product lines, pricing, and brand support based on test markets (Miller, Feb 14) 1b) Finalize distribution agreements with key partners in Brazil and Hong Kong (Fulks, Apr 14) 2a) Qualify new product, brand concepts for target countries (Baxley, Apr 14) 2b) Qualify the right contract manufacturers (Marshal, Jul 14) 3a) Complete brand architecture study and risk assessment. (King, Feb 14) 3b) Finalize inventory run-out plan. (Smark, Mar 14) 4a) Complete SKU rationalization and transition forecast (Rodriguez, Apr 14) 4b) Rationalize supplier base and inform suppliers of changes and timing (Barker, Jun 14) 5a) Establish employee task force with two executive sponsors (Herbert, Mar 14) 5b)Run baseline measures of employee engagement with third party supplier (Herbert, Jul 14) 5c) Develop and implement improvement plans. Track progress. (Lesset, Nov 14)
Goals Strategies 1. Expand Global Footprint with new partners, with emphasis on Brazil and China. (Miller) 2. Enter power tools category, building on liquid cleaners and manual brush base (Garcia) 3. Consolidate minor brands under Coralpure mega brand (Williams) 4. Simplify supply chain, with fewer partners to leverage scale (Brown) 5. Improve employee engagement, with special emphasis on acquired businesses (Davis) Action Plans 1a) Define the right product lines, pricing, and brand support based on test markets (Miller, Feb 14) 1b) Finalize distribution agreements with key partners in Brazil and Hong Kong (Fulks, Apr 14) 2a) Qualify new product, brand concepts for target countries (Baxley, Apr 14) 2b) Qualify the right contract manufacturers (Marshal, Jul 14) 3a) Complete brand architecture study and risk assessment. (King, Feb 14) 3b) Finalize inventory run-out plan. (Smark, Mar 14) 4a) Complete SKU rationalization and transition forecast (Rodriguez, Apr 14) 4b) Rationalize supplier base and inform suppliers of changes and timing (Barker, Jun 14) 5a) Establish employee task force with two executive sponsors (Herbert, Mar 14) 5b)Run baseline measures of employee engagement with third party supplier (Herbert, Jul 14) 5c) Develop and implement improvement plans. Track progress. (Lesset, Nov 14)
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Strategy Development is a Collaborative Process
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Cascading Strategies Manufacturing Example

• Each discipline creates an annual one page plan
  that adds functional specificity and more detail
  to action plans that link to overall business plan

Corporate Strategies 1. Expand Global Footprint with new partners, with emphasis on Brazil and China. (Miller) 2. Enter power tools category, building on liquid cleaners and manual brush base (Garcia) 3. Consolidate minor brands under Coralpure mega brand (Williams) 4. Simplify supply chain, with fewer partners to leverage scale (Brown) 5. Improve employee engagement, with special emphasis on acquired businesses (Davis) Manufacturing Strategies 1. Expand Manufacturing capacity, in Brazil and China. (Sheridan) 2. Develop more cost effective liquid cleaner process to successfully enter power tools category (Herman) 3. Consolidate minor brands under Coralpure mega brand (Williams) 4. Simplify supply chain, with fewer contract manufacturers and reduced SKU count to leverage scale (Brown) 5. Improve employee engagement, emphasizing successful supply chain integration of XYZ acquisition (Wilde) Manufacturing Action Plans 1a) Assess competitive landscape to identify cost effective co-packers in Brazil and China (Levy3/14) 1b) Renegotiate/finalize agreements with selected strategic partners in regions (Fulks, Apr 14) 1c) Finalize sourcing plan for lead items (Marshall, Apr 14) 1d) Start up production facilities in lead markets (Wilson, Jul 14) 2a) Evaluate and select best new liquid cleaner process options including potential cost savings (Staff, Apr 14) 2b) Finalize integration of production planning systems with new contract manufacturers (Lerner Jun 14) 2c) Qualify new process at contract manufacturers (Marshal, Jul 14) 2d) Build start up inventory (Swan, Oct 14) 3a) Finalize inventory run-out plan. (Mill, Mar 14) 4a) Complete SKU rationalization and transition forecast (Rodriguez, Apr 14) 4b) Rationalize supplier base and inform suppliers of changes and timing (Barker, Jun 14) 4c) Develop and execute optimal transition plan (Barker, Sep 14) 5a)Run baseline measures of supply chain employee engagement at XYZ (Hilton, Jul 14) 5b) Develop and implement XYZ supply chain improvement plans. Track progress. (Lite, Nov 14)
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Whats Required for this Process to Work . . . .

• Commitment and active participation by the CEO
• Willingness to make hard calls
• Clearly define success and stay on a consistent
  path
• Manage new priorities through, not outside, the
  strategy
• Commitment from executive team to align around
  the strategic priorities
• Company goals drive functional goals
• Recognize resources must migrate to top
  priorities
• Recognize some projects/passion areas wont be
  pursued
• Acceptance that strategic planning is not a
  one-time event
• Development and deployment goes beyond the
  kick-off session
• Formal progress reviews done quarterly. Plan
  renewed annually.
• Becomes the foundation for all you do all other
  work and systems must integrate with the
  strategic plan

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Checking Up, Checking In Process

• Mission Alignment is Job 1 Who/what do we want
  to be and for what distinct, unique and
  motivating purpose?
• - Creating the strategy is the next critical
  step
• - Successful implementation follows
• Implementation requires a clear, consistent
  communication of the strategic plans key
  elements
• - employees,
• - business partners,
• - retailers, and
• - investors
• Get everyone on the same page to unleash the
  power of your organization
• - People focus on what is most important
• - People stop pursuing attractive distractions
• Create a tracking system and follow up plan to
  ensure the work of the organization is clearly
  connected to the strategic choices

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Q A
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LIZ HARVEY, Partner
Scottsdale, AZ 85255 602 980 4634
Mobile liz.harvey_at_QuintessentMarketing.com
                                                  
                                                  
  www.QuintessentMarketing.com
BRIAN SHOOK, Partner
Scottsdale, AZ 85255 480 695 4092
Mobile brian.shook_at_QuintessentMarketing.com
                                                  
                                                  
  www.QuintessentMarketing.com
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