business to better: strategic planning

Full Steam Ahead:Strategic Planning for Success

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www.mygenfcu.org/education-center

Stephen Oliver, CPA, CVA, CFEManagerPadgett Stratemann & Co.210.253.1565 [email protected]

Full Steam Ahead:Strategic Planning for Success

Agenda

• What is Strategic Planning• Considerations when developing a plan• Embedding into daily practice• Making it a “Living Document?”• Automating your plan to “Bring it Alive”

4Full Steam Ahead: Strategic Planning for Success

“The real path to greatness, it

turns out, requires simplicity and

diligence. It requires clarity, not

instant illumination. It demands each

of us to focus on what is vital and to eliminate all of the extraneous

distractions.”- Jim Collins,

author5Full Steam Ahead: Strategic

Planning for Success

Full Steam Ahead: Strategic Planning for Success

What is Strategic Planning?

7

Strategic PlanningHelps you pave the most direct path towards your vision, saving you time

and money

By the book (sort of)


What is Strategic Planning?

Getting there faster…


Your Business

Your Vision


Focus, Focus, Focus

The bottom line…


11% net profit

12% sales volume

17% bottom-line

performance

25% employee

commitment

Enhances leadership’s organization performance

Impact of strategic planning

Impact of market & community focus

Strategic Planning is…

11

Organizational history

Logical & brief

Straightforward

Understanding momentum

Strategy & tactics

A statement of direction

Action plans


Sharpen the Saw

Synergize

Seek to understand

Think win-win

First things first

The end game

Be proactive

Strategic Planning Cycle


Goals

Desired outcomes

StrategiesMeasures & targets

ResultsMission

Where do we want to go?

How do we get there?

How do we measure success?

How did we do?

How can we improve?

Considerations when developing

a plan

Developing a Strategic Plan


Establish strategic direction & guidelines – who and what, vision is constant until complete, mission never changes, core values

Formulate corporate strategy and target setting – goals and objectives

Conduct external and internal analysis – competitors, customers and industry

Create and align business unit strategies – bottom-up/360 ⁰analysis

Build the Budget – level of detail and timeframe considerations

Celebrate the strategic plan – communicate clearly, create support for execution

Establishing Strategic Direction


Establishing direction

Where are we now?

Where do we want to be?

How do we get there?

Objective: clarify vision, validate mission, defineplanning process steps and responsibilities


NatureSweet Tomatoes “On a Mission From Good”

Goodness – found in land & people

Starts with land from Central Mexico

Harvesting through teamwork: (people, families, &

communities)

Two goals: 1. Employee home purchase2. Educational opportunities

through funding

Goodness comes from a World of Efforts – One Company

Target Setting: Goals & Objectives

Picture source: http://www.cmadesign.com/naturesweet/

How Strategic Plans Work


Historical Assessment

Internal Environment

External Environment

How it works

Historical Assessment


What have we accomplished?

Financials &Budgets

(3-5 years of data)

Customers

(Are we listening & serving)

Markets &Demographics

(Needs & wants)

Products & Services

(Offer the best with value)

Growth

(Personnel & facilities)

Internal Factors

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Internal Factors

Organizational structure

Markets served

Training & compensation

programs

Growth patterns

Information systems &

communications

Customer satisfaction

Facilities & equipment


External Factors

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External Factors

The economy

The customer

The competition

Regulatory considerations

Technological advances

International impact


Embedding into daily practice

1. Performance vs. Mission

2. Environmental Scanning

3. Issue Determination

4. Planning Assumptions Capabilities

5. Company Objectives

6. Strategy Development

7. Resources Budgets

9. Accountability

8. Revise Objectives Plans

10. Feedback & Analysis

Embedding Your Plan - Continuous


Planning Assumptions


• Core values and mission• Product/Service offerings• Financial, operational, people• Opportunity – Markets and community

World1960 $3 Billion

2015$7 Billion

Implementing the Plan

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Goals

How are we going to do it?

Objectives

What is to be accomplished?

Action Plan

Who, what, & when will tasks be

accomplished?


Discover Design Develop Demonstrate Deploy Disengage

PLAN AND GO – Build it and they will come!

• Operational• Financial• Marketing• People & Processes• Technology

Goals – First Things First

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S Specific

M Measurable

A Attainable

R Realistic

T Timely


Planning Assumptions


Objectives – Be Proactive

• Financial performance• New products/services• New markets• Diversification• Growth: organic or acquisition• Productivity and quality• Culture and change

Periodic Measurement & Accountability

Make it a “Living Document”

A Living Document

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Build an effective

budget for all areas

Measure results (First

things first)

Develop accountability (compensation)

Create scorecards (Synergize)

Communicate (Monthly & quarterly meetings

360 ⁰feedback

(Listen to your team and

customers)

Reassess direction

(Be proactive)


Celebrate each success

BIG DEAL!

Automating your plan to

“Bring it Alive”

Automation


msp

Strategy Development

Goal Setting/ Goal

Cascading

Performance Tracking

Financial Budgeting

Balanced Scorecard

Action Planning & Alignment

One-Click Reporting

360 Degree Analysis

http://onstrategyhq.com/

Benefits to Your Company


• Consistency in planning• Easily adaptable and revisable• Eliminates various versions of your plan• Provides people with the information they need to execute• Ability to develop consistent reports• Improves accountability• See progress on achieving goals & outcomes

Envisioned Structure


How goals & actions cascade & rollup

DivisionPlan

DepartmentPlan

Unit Plan Unit Plan

DepartmentPlan

Unit Plan

CorporatePlan

• Division Purpose Statement • Long-Term Initiatives• Division Goals & KPIs• Division Actions/Dept.Goals

• Dept. Purpose Statement• Dept. Actions/Unit Goals• KPIs

• Unit Actions

Permissions by User Level (write access)

Types of Reports

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Report TypesFull strategic plan: “The Living Document”

Executive Summary: Good for management teams and boards

Strategy Map: Full-color overview of your entire strategic plan

One-Page Strategic Plan: Ideal for communicating your plan to the entire organization

Action Plan: A quick view of unit goals and action items


Automation


Why automate?

Flexible

Simplify

Execute

Consistent

Accountability

Feedback


Know what mountain you are climbing


To your path of success, wherever it may lead you


Stewardship = Achieving the Strategic Plan

Thank You

Stephen Oliver, CPA, CFE, CVAPadgett, Stratemann & Co., LLPManager210.253.1565 | [email protected]

Austin811 Barton Springs, Suite 550Austin, TX 78704512.476.0717

Houston1980 Post Oak Blvd., Suite 1100Houston, TX 77056713.335.8630

San Antonio100 NE Loop 410, Suite 1100San Antonio, TX 78216210.828.6281

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