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Strategy planning for small digital companies
 

Strategy planning for small digital companies

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I have used this presentation to help small companies get an understanding how to setup a strategy that is user friendly and can apply to their project model

I have used this presentation to help small companies get an understanding how to setup a strategy that is user friendly and can apply to their project model

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  • 006 The Business Planning Process MapSuccessfully launching a new business or initiative requires careful planning and the results of a business planning process are usually captured in a business plan. Any investor or those in an existing business responsible for approving new initiatives will invariably want to see a business plan before making any financial commitment. The business plan, besides being a prerequisite for gaining access to finance, also provides the blueprint for successfully creating and running a new venture. Even in fast-moving markets where the plan itself may quickly become outdated the insight gained from the planning process that created it remains invaluable. A business plan describes the business’s vision and objectives as well as the strategy and tactics that will be employed to achieve them. A plan may also provide the basis for operational budgets, targets, procedures and management controls. No two businesses are identical and no two business plans are ever exactly the same. There are different reasons for preparing a business plan and different audiences. The task of writing a business plan is a lot easier if you have a template that can be tailored to the specific needs of your business. The book “Guide to Business Planning” by Graham Friend and Stefan Zehle provides such template. It also explains how to design and present a business plan to maximise the likelihood of its gaining approval or funding.Although the presentation of the final business plan is important, ultimately the substance of the plan is most crucial. The strategies and tactics described in the plan should be the outputs from a logical and appropriately comprehensive business planning process. The book provides apractical step-by-step business planning process and a reference for the tools and techniques necessary to complete it. The stages of the business planning process are shown on the chart. The process should begin by evaluating the environment in which the business operates before analysing the specific industry and the suppliers, competitors and customers within it. The insight from this analysis and an understanding of the strengths and weaknesses of the business or new venture, combined with a set of expectations about the future, can becoupled with creative and innovative thinking to develop a range of strategic options for evaluation. The evaluation stage includes developing forecasts (notably for market demand), financial projections and, in some cases, a range of valuations, as well as calculating various measures of performance with which to validate and benchmark the forecasts. The business planning process should test alternative ideas and assumptions, as one of the main reasons for planning is to help the business prepare for an uncertain future.

Strategy planning for small digital companies Strategy planning for small digital companies Presentation Transcript

  • Strategic Planning
  • Overview Strategic planning is one of the most important responsibilities of the senior management of an organization. It is the vehicle that senior management should use to set the organizational vision, determine the strategies required to achieve that vision, make the resource deployment decisions to achieve the selected strategies, and build alignment to the vision and strategic direction throughout all levels of the organization. Unfortunately, strategic planning is also one of the most misunderstood and poorly used tools in many organizations. Strategic plans are often large documents with detailed plans created arduously over months at great effort...only to gather dust and languish after they have been duly acknowledged and then filed away.
  • Overview There are several reasons why strategic plans are not developed properly, or not implemented properly. Among the most common are: • Senior management does not follow a defined process to accomplish this task. As a consequence, months of effort are wasted in creating reams of paper that do not have strategic import. • The process is delegated to a planning group, or assigned to the various functional leaders to complete for their respective areas. If completed in individual functional areas, the plan may work for individual departments, but is likely to sub-optimize the whole organization. If assigned to a planning group, the result is often not truly embraced and endorsed by senior leadership. • Senior management does not set aside the time to develop the strategic plan as a collective team work product.
  • Overview There are several reasons why strategic plans are not developed properly, or not implemented properly. Among the most common are: • The organization does not understand what a strategic plan is actually designed to provide. Therefore, the strategic plan is a tactical business plan with multiple year extrapolations. There is very little about it that addresses actual strategic direction. • Senior management does to follow a defined process or methodology that will result in a strategic plan in a timely and efficient yet comprehensive manner. • The plan is developed but there is no process to communicate it throughout the organization and build organization-wide alignment to its implementation. • The plan is developed with no implementation guidelines at all. At best, it is implemented in pieces. At worst, it is unfunded and ignored.
  • Aligning the Strategic Approach Balanced Scorecard
  • Aligning the Strategic Approach
  • Stakeholder Analysis Strategic Clients Guideline Identify your stakeholders Shareholders Management Organisation Strategic Partners • • • • • Are all of our key stakeholders clearly identified? Who will become key stakeholders in the near future? Are their expectations and requirements clearly understood? Are they regularly consulted? Are they kept updated, and involved in those business decisions that will affect them? Employees Name Job Title Main Interest Influence Level (HML)
  • Stakeholder Analysis Guideline Develop a matrix to measure Stakeholders e.g. Interest , Power Output Stakeholder plan showing how you engage with your stakeholders and what your communication strategy is
  • Vision Mission and Objectives “Strategic planning is worthless— unless there is first a strategic vision.” — John Naisbitt, Author of “Megatrends” A clear vision and mission statement, objectives, and business description are important points of departure. The vision is what guides your social enterprise and energizes your stakeholders; it is the “big picture” illustrating what you expect to achieve.
  • Vision and Mission The mission statement is the heart of your social enterprise. It describes its central purpose and the basic principles that guide the actions of employees, partners, and management. As well, it articulates the strategy you will use to accomplish your goals and objectives. A mission statement also defines your target population and embodies the organizational values of your social enterprise. The mission statement also provides direction to your social enterprise. If the business plan can be considered the road map of your social enterprise and the vision is the direction in which you are going, then the mission statement consists of the street signs to get there. Your business plan must be consistent with your mission statement, so use it as an anchoring guide in each step of the planning process. Guideline Mission Statement Use Smart Language • Specific • Measurable • Achievable • Realistic • Timeous To be number 1 catalyst in developing countries for improving the quantity and quality on social action by creating a social network that works seamlessly aligning it to the real needs as identified by the end of 2013
  • Business Objectives Business objectives are a way for an organization to define its goals and direction. A company uses a combined strategy at every level of its operation to achieve its objective. It determines how a company will allocate its resources and what strengths, weaknesses and opportunities it may have. A business objective is usually not altered once implemented, unless changes in circumstances arise; setting a clear course for the organization it key to its success Guideline The balanced scorecard method can help define your company objectives
  • The Balanced Scorecard – Key Benefits Why should small companies use a Balanced Scorecard Approach • A Balanced Scorecard guides managers to dedicate scarce resources such as their “management focus” and the company’s manpower (and even money!) to achieving the Paul Bergquist CEO, Axsellit AS planned results, as opposed to being distracted by the many “focus thieves” that constantly try to steal their attention. • A Balanced Scorecard makes employees aware of how the various tasks in an organization are connected—and exactly how their day-to-day operations fit into the big picture. This knowledge empowers responsible employees to spend their resources in the most beneficial ways. • A Balanced Scorecard introduces a result-focused sense of urgency and peer pressure in the organization, prompting the employees to pull together and concentrate on the vital issues. • • • • Better Strategic Planning Improved Strategy Communication Better Management Information Improved Performance Reporting
  • Planning the Company Scorecard What is our purpose What is our picture of the future What are our main focus areas How do we know we are achieving our results What projects will be rolled out to meet our goals and targets
  • The Scorecard as a Measuring System Financial Customer Relations Internal Service Process Learning and Growth
  • The Financial Scorecard Identifying the areas to define your objectives Guideline You can add additional topics for your brainstorming session Market share Brainstorming topics  What financial steps are necessary to ensure Profitability Revenue growth the execution of our strategy/goals?  Are we meeting our bottom line?  Are we meeting operational and financial targets? Return on investment Categorised into Profit ratio  Strategy and goals  Performance Measures/Targets  Strategic Initiatives How do we measure quality in our financial scorecard • Efficiency • Meeting our targets
  • The Customer Relations Scorecard Identifying the areas to define your objectives You can add additional topics for your brainstorming session On time deliveries Value for money Guideline Market share Brainstorming Topics Who are our target customers? How do our customers see us? How do customers rate our performance? Average time to process orders Reliability Response time Categorised into  Strategy and goals  Performance Measures/Targets  Strategic Initiatives How do we measure quality in our customer relations scorecard?  Accessibility  Acceptability  Continuity
  • The Process Management Scorecard Guideline Procurement Productivity You can add additional topics for your brainstorming session Quality Brainstorming Topics What critical processes must we excel at to satisfy our customers and stakeholders What must be done internally to meet customer expectations Operations Workforce Categorised into  Strategy and goals  Performance Measures/Targets Technology  Strategic Initiatives How do we measure quality in our process management scorecard • Efficiency • Reduction of rework • Increased productivity
  • The Learning and Growth Scorecard Guideline Career paths You can add additional topics for your brainstorming session Being competitive Continuous Improvement Brainstorming Topics How can we continue to improve? What capabilities and tools do our employees need to execute our strategy/goals? Categorised into Process alignment Technological Leadership  Strategy and goals  Performance Measures/Targets HR Management  Strategic Initiatives How do we measure quality in our learning and growth scorecard • Level of skilled employees • Increase in productivity • Allowing for employee assisting company to grow
  • Analysis  SWOT Analysis  Brainstorming  Decision Tree Mapping Guideline • • • • Involve as many people as possible during the analysis phase Ensure that all ideas are documented Have frequent breaks in the analysis process Ensure that you identify the final document to be used for the business plan
  • Analysis • • • • • Analysis of the firm Marketing and Competitor Analysis Industry and Competitor Analysis Environmental Analysis Portfolio and Program Analysis The process The objective Analysis of the Firm We will understand our core values and where we are going with the direction of the company Marketing and Competitor Analysis We will clearly understand our competitors and ensure our marketing strategy is aligned to meet our targets and objectives Understanding the environmental impact We will have a clear idea of the possible or probable effects of external forces and conditions on our organisations growth strategies Defining your product Our products will meet our customer’s expectations and will be delivered in line with the agreed roadmap
  • Selecting the strategy - Marketing Our Customer We will ensure that we have a clear picture of our target customer using market research and analysis. Our Market Our analysis will provide the correct data of our market and what the successful trends are to ensure that we have market growth Our Competition We will have a clear idea of our competition and their strategies within our market range Our Distribution Channels We will endeavour to distribute our product effectively to our target customers? Our Marketing Mix Our marketing plan will correctly position Product, Price, Place and Promotion. Our Financials We will ensure that our marketing budget is aligned to our overall financial strategy
  • Selecting your strategy - Product
  • Understanding the Product Life Cycle The objectives will outline Who we are as a company What do we want to achieve How do we want to achieve this The timeline to meet these objectives Planning the Product Roadmap These objectives are communicated to the business units Results in Teams Managers Customers It begins with defining the company’s vision and mission Defining the concept Defining the Marketing Plan Defining the business rules and product specifications Identify concept for production Conduct Analysis and Research Concept is aligned to the marketing strategy and financial planning for calendar year Hold workshops to define the business rules and userability of the product to be launched Findings are documented Document is reviewed by nominated stakeholders Document is reviewed by nominated stakeholders Findings are documented Document is reviewed by nominated stakeholders Findings are documented Project Initiation Project Planning Team is appointed to proceed with the marketing plan Stakeholders approve and sign off concept Business rules and product specifications commence The Marketing strategy and financial planning for the concept are approved by the Business Owners and nominated stakeholders The business rules and product specifications are approved by the Business Owners and nominated stakeholders Document distributed to Development team Product Life Cycle Develop the Product Developing and Launching the Product Business Roadmap for calendar year Introductory stage S Project Execution Project Closeout Growth Stage Maturity Stage A L E S Launch the final product TIME End of Product Lifecycle Decline Stage
  • Defining the Product Process Why this is important We will: • offer the right product or service for the market; • charge the right price for it; and • sell enough to achieve our strategic and financial goals Guideline Ask the right questions What is our business product? Who are our customers? What is the demand for our product? How will we sell and distribute our product? What is the timeline for selling our product? What price will we charge for our product?
  • Aligning your project approach
  • Define your portfolio Project Management Project Initiation Project Planning Project Execution and Control Project Close Out Analysis Product Development Deploy Design Test Development
  • Operations – a proposed approach
  • Understanding what our options are Begin to document each focus area Set a timeline to define your key focus areas analysis and Collate all of results the info and document Ensure that all documents are approved and reviewed Present the final plan to your company
  • Documenting the Business Plan • • • • • • Confirm the template and table of contents Setup a timeline to complete the document Confirm who will compile the document Confirm the signatories Confirm who will view the document Create a folder on your server to store the documents
  • Conclusions • It is important to keep in mind that this presentation is a generic and high level approach to develop and document your business plan. You will go through various versions until you have reach the correct amount of detail and content that works for your company • You can add or subtract where required from this presentation to align to your own individual approach for presenting to your audience • The ultimate and key goal for this presentation is to have a business plan that will allow your business to grow and advance • You should use the business process in this presentation as a roadmap to ensure that you cover all your business areas, goals and vision for your company