Strategic planning in Finnish companiesProcesses, practices and the challenges of the downturn economyExecutive summary<br...
Study Overview<br />Objectives<br />This study was designed to discover:<br />How strategy is formulated in Finnish compan...
Who are involved in strategic planning? <br />3<br />Strategic planning in Finnish companies<br /><ul><li>The number of pe...
The most relevant variables appear to be corporate culture and tradition, company structure and to some extent also owners...
Company size alone does not determine participation
Companies who sell expert services stand out here, for them participatory strategy creation is an essential part of implem...
A typical strategy round begins in the winter and culminates to a presentation to the board of directors in June
From there, the cycle continues towards budgeting and corporate planning for the next financial year in the fall, to then ...
Very few companies run exactly the same process from year to year, most alternate between small updates and major revision...
Experience is that running the same process every year produces more or less the same results
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Strategic Planning In Finnish Companies Summary

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Strategic Planning In Finnish Companies Summary

  1. 1. Strategic planning in Finnish companiesProcesses, practices and the challenges of the downturn economyExecutive summary<br />Helsinki, 10/2009<br />
  2. 2. Study Overview<br />Objectives<br />This study was designed to discover:<br />How strategy is formulated in Finnish companies (e.g. processes and practices)?<br />When and where did companies first see the current economic downturn, and how did it affect their strategic planning?<br />What are the key lessons learned from the downturn for strategy work?<br />Execution<br /> The study was conducted in Finland in the summer of 2009 by interviewing 22 executives from Finnish companies in various industries, including <br />Telecom, media and technology<br />Energy and resources<br />Manufacturing<br />Financial services<br />Consumer business<br />Construction and infrastructure<br />Logistics<br />Business consulting and IT<br />2<br />Strategic planning in Finnish companies<br />
  3. 3. Who are involved in strategic planning? <br />3<br />Strategic planning in Finnish companies<br /><ul><li>The number of people involved in strategy setting varies immensely between companies
  4. 4. The most relevant variables appear to be corporate culture and tradition, company structure and to some extent also ownership structure
  5. 5. Company size alone does not determine participation
  6. 6. Companies who sell expert services stand out here, for them participatory strategy creation is an essential part of implementation as well</li></li></ul><li>Strategy cycle<br />4<br />Strategic planning in Finnish companies<br /><ul><li>Calendar-driven strategy work is still the dominant model
  7. 7. A typical strategy round begins in the winter and culminates to a presentation to the board of directors in June
  8. 8. From there, the cycle continues towards budgeting and corporate planning for the next financial year in the fall, to then start over again in February
  9. 9. Very few companies run exactly the same process from year to year, most alternate between small updates and major revisions every 3-5 years
  10. 10. Experience is that running the same process every year produces more or less the same results
  11. 11. Companies are increasingly using strategic projects to accommodate emerging issues and to keep their strategic thinking alert at all times
  12. 12. One company in the sample does strategy only in projects</li></ul>Formal annual Situational<br />
  13. 13. Strategy horizon<br />5<br />Strategic planning in Finnish companies<br />
  14. 14. Onset of the recession - What were the first signals of change?<br /><ul><li>Huge jumps in commodity prices</li></ul>Unusual increases in unusual markets<br /><ul><li>Problems in foreign markets</li></ul>Baltic countries fell earlier and harder<br /><ul><li>Financial market data and commentary</li></ul>Interbank markets, institutional investors<br />Noted quickly by banks, but not by too many others<br /><ul><li>Speculation in the business press</li></ul>At first reported only as a US problem<br />Official commentary in Finland reassuring for too long<br /><ul><li>Intuition
  15. 15. Executives who remembered the year 1990 or 2001</li></ul>All this led to more information gathering, more analysis and more planning, but only very few companies were able to take action early enough to make a difference. Construction industry was among the quickest, perhaps they are accustomed to revenue volatility.<br />6<br />Strategic planning in Finnish companies<br />
  16. 16. Most important future developments of strategic planning<br /><ul><li>Market information analysis and sensemaking
  17. 17. Insufficient information is not the problem!
  18. 18. Executive have a very adequate supply of short-term backward-looking data from company internal systems, combined with general macro data
  19. 19. Most common problem is identifying and tracking fewer but more relevant variables
  20. 20. More effort needed in understanding the data and drawing conclusions from it
  21. 21. BI and DW not always well connected with strategy executives
  22. 22.  Gaining increased flexibility in strategymaking
  23. 23. Quicker reaction time is needed to deal with new upcoming issues and developments, annual strategy development process may no longer be enough
  24. 24. Continuous strategy work, usually in projects, is becoming more common. This work is often done in ad hoc- and project-specific teams, which collect the best available internal and external expertise to focus on deep understanding of the underlying causes and effects.
  25. 25. Communication of the strategy to the personnel
  26. 26. Strategy communication is an important part of implementation
  27. 27. For knowledge-based companies, involving employees in strategy setting is the first step and an essential part of strategy implementation</li></ul>7<br />Strategic planning in Finnish companies<br />
  28. 28. 8<br />Strategic planning in Finnish companies<br />SummaryKey findings and recommendations<br />
  29. 29. 9<br />Strategic planning in Finnish companies<br />SummaryKey findings and recommendations<br />
  30. 30. For more information, please contact: <br /> <br />Ilkka Huikko<br />Partner, Deloitte<br />Consulting, Strategy & Operations<br />Tel. + 358 40 7403529<br />Email: ilkka.huikko@deloitte.fi<br /> <br />Teppo Nieminen<br />Senior Consultant, Fountain Park Ltd.<br />Tel. +358 50 5441623<br />Email: teppo.nieminen@fountainpark.fi<br /> <br />Mika Ruokonen<br />Senior Consultant, Deloitte<br />Consulting, Strategy & Operations<br />Tel. + 358 41 4475652<br />Email: mika.ruokonen@deloitte.fi<br />10<br />Strategic planning in Finnish companies<br />
  31. 31. Our collaboration<br />11<br />DELOITTE<br /><ul><li>Industry / market insight
  32. 32. Market / competition strategy development
  33. 33. Sparring and facilitation of strategic planning
  34. 34. Strategic action planning and management of the development portfolio</li></ul>FOUNTAIN PARK<br /><ul><li>Unique expertise in web-based tools and methods
  35. 35. Web interviews for information collection and strategic sensemaking among stakeholder groups
  36. 36. Web-based dialogue methods in strategy setting and communication</li></ul>This collaboration provides a wide variety of services to support your strategic planning!<br />

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