september 17, 2015 strategic preparation …ready your business for 2016
TRANSCRIPT
September 17, 2015
Strategic Preparat ion…Ready Your Bus iness For
2016
A Fact
PEOPLE (AND BUSINESSES) DON'T PLAN TO FAIL.
THEY FAIL TO PLAN.
McKinsey & Co Says…
Only 23% of companies use a formal strategic planning process to make important strategic decisions. In 52% of companies, these decisions are made by a small senior group.
In companies surveyed who use formal strategic planning processes, 64% of leaders say the planning leads to strategic decisions that allow the company to meet its goals and challenges.
Why Managers Don’t Plan
Dislike constraints of any kind Assume crisis management is inevitable Don’t make time in their schedule to plan Have been successful without any real planning Lack self-discipline Too focused on results alone No system for planning
Fundamental Guiding Questions
1. Why do we exist?2. Where are we going? What do we want
to achieve?3. How will we accomplish this?4. How will we measure our success?5. How will we communicate our plan?
How Does This Apply to You?
Do you have a plan for success?
Understand Your Mission
Question #1
Why do we exist? Mission Statement: The core purpose and focus of your organization over a given period of time.
Customers: Who do you serve? Include customers and stakeholders – both internal and external.
State Your Goals & Objectives
Question #2
Where are we going? What do we want to achieve?
Business Goals: Where the business wants to go in the future. It is a statement of purpose.
Example: We want to grow our business domestically and in Europe.
Business Objectives: Objectives give the business a clearly defined target. Plans can then be made to achieve these targets. This can motivate the employees. It also enables the business to measure the progress towards to its stated business goals.
Example: We want to achieve 20% sales increase in European markets within the next 18 months.
Create Your Roadmap
Question #3
How will we accomplish this?
1. Assess: Which areas of your business need to perform?
2. Improve: What needs to be fixed or enhanced?
3. Apply: How should you effectively deploy your people?
For each stated business goal…
Business Process
Organizational Structure
Management Systems
Define Success Indicators
Question #4
How will we measure our success?
Financial perspective – revenue, expense, cost savings
Customer perspective – customer satisfaction, your image
Operations perspective – processes where you should excel to succeed
Culture & Innovation perspective – learning and changing to improve
KPI = Key Performance Indicator
Customers Culture
Operations Financial
Encourage Participation
Question #5
How will we communicate our plan?
Horizontal Integration Vertical Integration
Share with:• Cross functional representatives• Other Stakeholders
Desired Outcome:Agreement on shared responsibility for achieving results.
Share with:• Team members• Management
Desired Outcome:Create buy-in to the achievement of the plan in support of the company business plan.
Thank You for Your Time!
David Liddell
603-881-9999
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