Steve Bathe&

John F Petak

Lean Strategic Planning

“The Plan is nothing, planning is everything”

Lean Strategic Planning Phases

• Examine and analyze the current state• Create a strategy map and strategic plan• Create the building blocks of the plan• Implement the plan (PDCA)

Goal: a strategic plan that is fully understood and implemented leading to financial stability, organizational improvement, decreased cost and financial growth

Examining and analyzing the current state, “Understand the box before you get out of the box”

• Knowing threats and weaknesses guide the allocation of resources to protect critical elements of the business

• Knowing the processes and methods the organization has already invested in and it's core competencies provides a better understanding of what assets already exist and the investment needed to reach strategic objectives

• The future of the organization can be forecast based on solid factual evidence.

• It equips businesses to face the realities that have to be dealt with on the way to meeting future goals.

Examining and analyzing the current state

• Financial Analysis• Strengths / Weaknesses / Opportunities / Threats

(SWOT)• Identifying Mission Critical elements of the

organization• Risk Management Plan• Resource Evaluation• Benchmarking

Create a Strategy Map and Strategic Plan

• Start with the businesses value propositions

Price Quality Selection Function Service Brand Marketing

Price Quality Selection Function Service Brand Marketing

Price Quality Selection Function Service Brand Marketing

Availability Quality Service Brand Marketing

Availability Quality Service Brand Marketing

Availability Quality Service Brand Marketing

Operational Excellence

Customer Intimacy

Product Leadership

Product Characteristics Relationship Image

Product Leadership Strategy Focus

CustomizationCustomer Relationship Strategy Focus

Product Characteristics Relationship Image

Standard Value Propositions

Non-Profit Value Proposition

Deliver unique, market leading products High degree of customer knowledge and understands their needsCombination product, price, quality, and service

Strategy Templates

ImageCustomization

Operational Excellence Strategy Focus

Customization

Strategy TemplatesService Leadership Strategy Focus

Product Characteristics Relationship

Operational Excellence

Known for excellence in meeting needs as outlined by mission / visionHigh degree of customer knowledge, measuring outcomes, meeting needsMeasures performance and responds to metrics with plans for improvement

Service Leadership

Customer Intimacy

Customer Intimacy Strategy FocusService Characteristics Relationship Image

Service Characteristics Relationship Image

Effectiveness

Outcomes

Outcomes

Outcomes

EffectivenessOperational Excellence Strategy Focus

Service Characteristics Relationship Image

Effectiveness

Create a Strategy Map and Strategic Plan• The Strategy Map uses Value Proposition and

perspectives to create a framework for objectivesValue Proposition

Strategy Drive innovation Speed to market

Perspectives Objectives ObjectivesFinancial

Customer Tie smart grid tech to NPI

Reduce time to introduce new

products

Internal

Learning and Growth

Improve delivery performance

Provide minimum level of

training

Create knowledge mgmt system

Reduce inventory

Offer enhanced functions

Reduce labor cost

Improve operational performance In Mfg and log

Targeted new product introductions

Objectives Objectives

Operational Excellence

Increase Margin Increase Market Share

Product Leadership

Create the Building Blocks of the Plan

• Vision / Mission• Planning• Objectives Setting• Determining Tactics• Goal Setting• Creating Projects

Setting Objectives

• Create SMART Objectives• Strategic in intent• Meaningful • Aligned within the organization vertically and

horizontally• Rational• Team driven

Set goals with a Balanced Score Card

Value Proposition Strategy

Operational ExcellenceImprove operational performance In Mfg and log

Product LeadershipTargeted new product introductionsDrive innovationSpeed to market

Customer RelationshipImprove Customer satisfaction

Develop closer ties to targeted customer base

Objective Measure

Strategy Mapping

Increase Margin Average margin improved by X%Reduce Inventory Reduce by X m$

Improve delivery performance OTD > 98%Reduce labor cost Reduce labor by X% per unit

Provide minimum level of training Training hours / EECreate knowledge mgmt system 100% explictit and 35% tactic

Increase market share Market share inc by X%

Tie latest NPI to smartgrid tech Develop strategic relationshipsReduce time to introduce new

productsReduce time form 26 months

average to 20 months

Reduce days to answer complaints < 3 days to answer complaintImprove website launch revised site by 2Q

Additional store fronts

Increase number of store locations by15%

Design data collection system utilizing point of sale information

Select three demographics for targeted marketing

Implement the Plan

Ops Qual Eng Log Pur HR Sales Acc IT

P S S L S SP L P SP S L P SL S S S SP P P P P L S S SP P P P P L P P P

P S L SS P P S S L P

S L P P

P L S P SP S P S P L

P S L S S

L P

Functional Departments

Measure

Policy Deployment

Average margin improved by X%Reduce by X m$

OTD > 98%Reduce labor by X% per unit

Training hours / EE100% explictit and 35% tactic

Market share inc by X%

Develop strategic relationshipsReduce time form 26 months

average to 20 months

< 3 days to answer complaintlaunch revised site by 2Q

Increase number of store locations by15%

Select three demographics for targeted marketing

Plans are implemented with vertical and horizontal alignment of resources through policy deployment