strategic plan quarterly priorities workshop december 2014

Questions / Answers:#RealStrategy || @RESULTSdotcom

Strategic Plan Update -> Quarterly Priorities@StephenLynch @RESULTSdotcom


RESULTS.com


RESULTS.com - One Page Strategic Plan


Get the slide deck:www.RESULTS.com/slides

Check out our software:www.RESULTS.com

http://www.results.com/slides


http://www.results.com



Full participation


Ask for everyone’s point of view


Productive conflict is important


No “group think”


Make a clear decision


Everyone commits to the decision


Access your Strategic Plan from the software


Strategy Centre Thought Leadership Library


1. Reflection and lessons

2. Strategically analyze your industry

3. Confront your current reality like a VC

4. Create Strategic Projects and Tasks

Agenda


Review Strategic Execution


What were the notable achievements you / your team accomplished?

List your answers below:


What did you START doing that has been of value?



What did you STOP doing ?



How effectively did you measure progress and keep it visible?



In the past, we used Spreadsheets / MS Excel


Now we use software


Key Performance Indicators / Key Metrics


Everyone knows their own individual accountabilities


They can also see how the entire team is performing


Team leaders can drill down to identify the cause


Looks like one person is holding the team back


What are the reasons for this trend?


Take action to diagnose and solve the problem


How well did you hold each other accountable for hitting KPI “Green” thresholds, & achieving Task deadlines?



What valuable lessons did you learn during the last planning cycle?



1. Reflection and lessons2. Strategically analyze your industry



Agenda


What is Strategy?

"If everything you do needs to work on a 3 year time

horizon, you're competing against a lot of people.

But if you're willing to invest on a 7 year time horizon,

you're now competing against a fraction of those

people, because very few companies are willing to do

that.

We can't realize our potential as people or as

companies unless we plan for the long term."

“This is a fantastic time to be entering the business world, because business is going to change more in the next 10 years than it has in the last 50”

Bill Gates


“Companies need to operate with one eye focused on

the short-term, and one eye focused on the long-term.

Short-term is about projects related to improving

the current core business, and meeting the needs

of today’s target customers.”

Philip Kotler


“Long-term is NOT about performance improvement.

It is about forgetting the past and reshaping the business to compete more effectively

in the future.

Often, this demands bold, disruptive strategic moves

away from the present to reshape the company

for future success.”Philip Kotler


Gary Hamel


Digital Darwinism = when technology and society

evolve faster than your company’s ability to adapt

“It is not the strongest who survive, nor the most intelligent,

but the ones most responsiveto change”


Industry Analysis


“The questions remain the same.

It’s the answers that keep changing”

Albert Einstein


Don’t know the answer to a question?

You need to know!

What will you do to find out?


Rivalry between existing competitors


Who are your Key Competitors? (the “players”) What moves are they likely to make?

( Industry life cycle: introduction > growth > maturity > decline / Industry growth rate / Industry profitability / Number of competitors / Market share / Capital requirements / Globalization / Commoditization / Cost advantages / Economies of scale / Friendly vs. Aggressive competition)



New Entrants


Microsoft Office

Google Apps


“ Out there in some garage is an entrepreneur who's forging a bullet with your company's name on it.

You've got one option - shoot first ” Gary Hamel


What New Entrants could disrupt you?( Industry barriers / Capital requirements / Learning requirements / Access to supplies / Access to distribution / Performance vs. incumbents /

Perceived differentiation in customers’ mind / Loyalty to incumbents / Switching costs / Retaliation by incumbents / “Innovator’s dilemma”)



Substitutes


What Substitute products / services could disrupt you?( Technology changes / Industry structure changes / Availability of substitutes / Performance of substitutes / Perceived differentiation in

customers’ mind / Switching costs / Customer desire to seek out alternative solutions to satisfy their need)



Suppliers


“Who” or “What” do you need to pay for to run your business?


Who are your Key Suppliers? What moves are they likely to make?( Cost of supplies / Negotiating power of suppliers / Access to alternative sources of supply / Switching costs /

Forward integration – supplier becomes competitor)



Customers


Who are your Key Customers? What moves are they likely to make?

( Customer demographic and psychographic description / Power to dictate prices or terms / Ability to influence other customers / Customer reviews / Perception of differentiation between vendors / Loyalty / Switching costs / Backward integration – customer becomes competitor)



Political Factors


What political factors / laws / regulations are likely to impact you? ( Industry specific regulations / political spectrum left vs. right / political stability / laws / taxes / trade policy / wars / environmental issues /

health / safety / consumer laws / employment laws)



EconomicFactors


What economic factors / changes in buying behaviors are likely to impact you?

( Economic growth / interest rates / exchange rates / inflation / availability of credit / investor interest in your industry / discretionary spending changes in customer purchasing habits / use of debt and leverage vs. more frugal spending / new forms of payment)



Social Factors

Baby Boomer1946 -1964

Generation X1965 - 1980

Millennial / Gen Y1981 - 2000

Key life influences Cold War nuclear threat, NASA moon landing, Vietnam, Civil rights, Hippie culture

AIDS, Divorce, MTV, Cold War ending, Personal computer, Microsoft

Internet, Always connected, Share everything online, Facebook, Apple and Google

Work environment Long hours, Office only Formally, Office, Increasingly working from home

Office, Home, Wherever, Desires flexible schedule

Work ethic Workaholic, Quality focus, Team player

Clear direction, Get tasks done, Self reliant, Free agent

Entrepreneurial, Variety, Multitasking, What’s next?

Management style Hierarchy, Chain of command Everyone should manage themselves, Challenge people

Collaboration, Consensus

Personal Motivators Salary, Job title, Feeling valued and respected

Money, Freedom, Break the rules and do it your own way

Meaningful work, Work with creative people, Maintain personal life

Mentoring Does not like feedback. Does not take negative feedback very well

Does not think feedback is necessary. Will ask for it they want it

Wants constant feedback, on demand at the push of a button

Internal communication

Face to face meetings focused on process, Memos

Face to face meetings focused on results, Emails

Face to face participative discussions, Emails, Collaboration software

Client communication

Face to face, Phone Face to face, Phone, Email Email, Social Media, Instant messaging

Career Goals Climb the ladder at one company, Job security

Build transferable career with variety of skills & experiences, Build a business.

Build several parallel careers or businesses simultaneously

STANDARDIZED

Industrial age

work

CUSTOMIZEDNetwork age

work

LABOUR:obediencesystemsprocessesproductivity

TALENT:initiative

innovationcreativitypassion

Management 1.0

Management 2.0

“We are going to have to reinvent management; the way we lead, we plan, we organise, we hire, we motivate... because today, organisations are facing a set of challenges that are truly unprecedented."

– Gary Hamel

http://info.results.com/


What social factors / trends / attitudes / behaviors are likely to impact you?

( Demographic trends / career attitudes / health issues / environmental concerns / communication styles / social behaviors / online behaviors / media consumption / purchasing behaviors / cultural differences / generational differences / income equality / society’s evolving attitudes, values

& beliefs)



Technology Factors


What technological factors / trends / are likely to impact you?(New technologies / Rate of technology adoption / Impact of internet and mobile / Social media / New devices & interfaces / Jobs replaced by

technology / Business models disrupted by technology)



“Leaders must decide:

What is our business?

What should it be?

What is not our business?

What should it not be?” Peter Drucker


“Strategy is resource allocation. When you strip away all the noise,

that’s what it comes down to.

Strategy means making clear cut choices about how to compete.

You cannot be everything to everybody.

You have to figure out what to say NO to”

Jeff Immelt


“Many managers do not understand the importance of having a clear strategy.

Strategy is about making trade-offs.

The essence of strategy is choosing what NOT to do.”

Michael Porter


“The difference between successful people

and very successful people is that very successful people

say "no" to almost everything”

Warren Buffett


What do you need to START doing? (Because it is strategically important for your long term success = “Core”)



What do you need to STOP doing? (Because it no longer serves you / not working out / purposeful abandonment = “Non Core”)







Agenda


Describe your current reality and make it obvious !!


Strength

s

Weaknesses

Opportunitie

s

Threats


“Our people” is not a strength What is it about your people that makes your team strong?

E.g. “Highly qualified software engineers”

“Marketing” is not a weakness What is it about marketing that is weak currently?

E.g. “Insufficient # of target customer leads”

“Communication” is not a weakness What is not being communicated? E.g. “Strategy not well understood”

Be specific with your SWOT: Use 3-5 word phrases


Think like a VC


What are the top strengths / assets / competencies within your business you can leverage (or build) in the next 12 months?

Rank your Top 5 Strengths in order:


What are the biggest weaknesses within your current business that could be fixed or improved in the next 12 months?

Rank your Top 5 Weaknesses in order:


What opportunities can you pursue over the next 12 monthsthat will position your company for future success?

Rank your Top 5 Opportunities in order:


What external threats do you need to reduce (or closely monitor) to ensure they do not derail your plans?

Rank your Top 5 Threats in order:






Agenda


Current Strategic Projects


“Every leader needs to clearly explain the top 3 things

the company is working on. If you can't,

then you're not leading well”

Jeffrey Immelt


Strategic Projects & their associated Tasks


“Help” menu - How to set up Projects and Tasks


SpecificMeasurableAchievableRelevantTime bound

S

AM

RT

“SMART” Projects


What are the top 3 Strategic Projects your company (or team) needs to execute in the coming period?

- Each must address 1 or more issues described in your SWOT analysis (relevant)

- Describe the tangible end-point milestones (so you know when to celebrate)

- Balance short-term business improvement initiatives ( = improving “what is”)

vs. building long-term strategic capability for the future ( = creating “what will be”)

Current Strategic Project DueDate

Person Accountable

1.

2.

3.


Many people can be involved in executing each Strategic Project, but only 1 person can be named accountable for the overall outcome

The project leader makes sure everything “gets done” (it does not necessarily mean they do it all themselves)

You may be leader in some projects and a follower in others

Single Point Accountability


Set yourself up to succeed. “Stuff happens”. Fires need fighting.

Set realistic outcomes and due dates that take into account “stuff happens” - yet still achieve your milestones.

Don’t underestimate the difficulties and challenges you will face.

Your colleagues are counting on you. Only make promises that you know you will be able to keep.

Balance Optimism with Realism


90% of those who join health and fitness clubs will stop going within the first 90 days.

International Health Club Association


Strategic Project #1 Due Date Person Accountable

Associated Individual Tasks


90% of your time is spent on “Business as usual” activities

You still need to create opportunities, make sales, deliver products and services, and collect money….

i.e. the things you do every day to pay the bills.

Set aside 10% of your time ( ½ day) every week for strategic execution. Aim to complete 1 specific meaningful Task

“the #1 thing” that will move each Strategic Project forward.

Make time for Strategic Execution: The #1 Thing


What does being accountable overall for the execution of a Strategic Project mean?

– You make sure everything “gets done” related to this Project

– Colleagues with associated Tasks report to you as “project leader”

– You meet with the project team on a weekly basis to make sure:

– Current status of the Project is up to date (% complete / color / commentary)

– You are aware of issues / delays - and know when it will actually be completed

– The #1 TASK to move each project forward each week is agreed and visible

– You help source the necessary support to keep things on track

– You report to the company leadership once per week showing that you fully

understand what is happening and have things under control


Using software to track projects


Strategic Projects


How will you keep progress visible on your Projects?How will you hold people accountable for Task achievement?



Get the slide deck:www.RESULTS.com/slides

Check out the software:www.RESULTS.com

Connect with Stephen Lynch:





http://www.linkedin.com/in/stephengeoffreylynch/

https://plus.google.com/u/0/+StephenLynchXXX/about?hl=en

http://twitter.com/stephenlynch

strategic plan quarterly priorities workshop december 2014

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