strategic planning key elements3
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Key Elements of EffectiveStrategic Planning
No Map
No Guide
No Direction
No Map
No Guide
No DirectionSound familiar?Sound familiar?
Failing to plan is planning to fail
What Keeps Us From Planning?
• I’m always firefighting• I’m too busy to plan• I’ve done ok so far• I can’t find the time to do what I know I
need to do, much less what I want to do.• Fear of failure
What is Strategic Planning?
• An organization’s process of defining its direction and making decisions on allocating its resources, including its capital and people.
• A framework for making choices about products and services provided, markets to be served and capabilities needed.
- Wikipedia- Mike Freedman and Benjamin Tregoe, The Art & Discipline of Strategic Leadership
Statistics
• 95% of the typical workforce doesn’t understand its organization’s strategy
• 70% of organizations fail to execute their strategies• 86% of executive teams spend <1 hour/month discussing
strategy• 60% of organizations don’t link strategy to budgeting• The top 10% of large companies surveyed experience
real and material benefits from their planning processes - increased profits, improved cost control, better foresight, improved performance, shared purpose
http://www.missionfacilitators.com/Articles/Organizational%20Development/Tools/Statistics%20about%20Strategic%20Planning.pdf
Why Plan Strategically?
• Peter Drucker, father of modern management:“A leader’s first job is strategic planning”
• Brian Tracey: “Excellence is not something that happens by accident; it happens by deliberate design”
• Enables your organization to be aligned and to play to your strengths
• Planning reduces risk (as measured by earnings variability)
Strategic Plan
Sales Plan Marketing Plan
Financial Plan
Annual Budget
Capital Budget
HR Plan
Strategic Plan Drives the Firm
Elements of Effective Strategic Plans
• Company Vision – What does the future look like and what will your
company look like in the future?What is your purpose, cause, passion & nicheFilter for new growth opportunitiesGuide for phasing out non-strategic activities
Where do you want to go?
VISION STATEMENT EXAMPLES
• Year after year, Westin and its people will be regarded as the best and most sought after hotel and resort management group in North America." (Westin Hotels)
• "To be recognized and respected as one of the premier associations of HR Professionals." (HR Association of Greater Detroit)
VISION
• Vision statement can be a one-liner:– “We sell beauty” Charles Revson (Revlon)
VISION: Innovative leadership in beautyMISSION: #1 Retail cosmetics companySTRATEGY: Multiple lines for multiple needs
An Inspiring Vision Starts with “WHY”
WHY
WHAT
HOW
“People don’t buy WHAT you do; they buy WHY you do it”- Simon Sinek
Elements of Effective Strategic Plans
• Company SWOT AnalysisStrengthsWeaknessesOpportunitiesThreats
Where are you now?
What are your Core Competencies?
Critical Success Factors
• What absolutely MUST happen for you to be successful in 2013?
• CSFs are conceptual in nature, not specific
• CSFs typically:Leverage a StrengthFix a WeaknessCapitalize on an OpportunityBlock a Threat
Critical Success Factors
• Improve Operating Cash Flow• Relocate to enable expansionFinancial• Hire General Manager• Develop New Hiring ProcessHR
• Develop New Customers• Develop Social Media StrategyMarketing• Develop Exit Strategy• Establish Partnership CharterPlanning
Elements of Effective Strategic Plans
• S.M.A.R.T. Goals Specific Measurable (KPIs) Achievable Relevant to a CSF Time-sensitive
Clarity
Feedback
But Challenging
Gain Commitment
Making Goals “Stick”
• Write the goal – physically – on paper• Public commitment
– Commit to a friend or supportive person
• Commit to regular progress reports– Written better than verbal– Regular = weekly, biweekly, monthly
“If you don’t know how you got there, you
probably won’t stay there”
Elements of Effective Strategic Plans
• StrategiesAnswer the question, “How?” for
each S.M.A.R.T. goal?” Conceptual – not quantitative
Update marketing materialBegin email marketing campaign
Elements of Effective Strategic Plans
• Action Plans Who will do what and when will
they do it?
The Planning Pyramid
S t r a t e g i e s
A c t i o n P l a n
G o a l
C r i t i c a l S u c c e s sFa c t o r
Vi s i o n
The Bedrock Foundation
S t r a t e g i e s
A c t i o n P l a n
G o a l
C r i t i c a l S u c c e s sFa c t o r
Vi s i o n
Owner’s Personal Vision
Strategic Planning Is A Continuous Process
Plan Development
Quarterly Review
Quarterly Review
Quarterly Review
Planning does not happen all by itself
Making it Happen!
• It starts with the business owner• Leadership is about coping with and
driving change• “We must take change by the hand or, rest assuredly,
change will take us by the throat.” - Winston Churchill
• Successful strategy implementation requires effective communication, teamwork & accountability
Everyone in the organization KNOWS what the strategy means to them
HOW DOES A BUSINESS OWNER STAY ON TRACK?
Here’s Where The Alternative Board Can
HelpThe TAB system includes:1. Monthly board meetings2. Business leadership
coaching3. Business education4. Resource network5. Proprietary web-based
tools including the Strategic Business Leadership planning tool
All designed for Business Owners
Thank You!
Tim Stoll, OwnerThe Alternative Board – Metro Baton Rouge
(225) 636-2091Tim@TABmetroBR.com
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