Your SlideShare is downloading. ×
0

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Integrating Scenario and Strategic Planning

873

Published on

Published in: Business, Technology
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
873
On Slideshare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
14
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. The contents of these pages are copyright © Frost & Sullivan. All rights reserved. growth team m e m b e rs h i p™ Integrating Scenario and Strategic Planning A three-page excerpt from our 13-page Best Practice Guidebook:
  • 2. The contents of these pages are copyright © Frost & Sullivan. All rights reserved. growth team m e m b e rs h i p™ 1 Integrating Scenario and Strategic Planning Best Practice Guidebook * Scenario planning is the process through which an organization develops a series of challenging and different—yet plausible—scenarios about the future and explores the risks and opportunities that each scenario offers. • Precede long-range/corporate strategy planning with scenario exercises • Tackle no more than four scenarios at a time • Identify triggers that are easy to monitor • Attain senior-level buy-in for the scenarios and their role in the planning process Olin Corporation’s leadership seeks to craft a long‑term strategy for the company. However, the planning team requires a far-reaching perspective on industry trends, the business environment, and legislation. READ MORE » To place long-term thinking at the forefront of its strategy-setting, Olin builds scenario planning* into the annual planning process. Olin’s Key Lessons Learned SolutionChallenge Corporate Strategy Corporate Development Marketing Competitive Intelligence Market Research Sales Leadership R&D/ Innovation Investors/ Finance CEO Corporate Strategy Applicability to Executive Functions Scenario Research and Preparation » Scenario Planning Exercises » Incorporating Scenarios into Annual Plans » Solution Components Understand » Analyze » Decide » Olin Corporation INDUSTRY Chemical and Ammunition Manufacturing REVENUE (2013) $2.52 billion USD
  • 3. 2 The contents of these pages are copyright © Frost & Sullivan. All rights reserved. best practice guidebookgrowth team m e m b e rs h i p™ Source: Olin Corporation; Growth Team Membership™ research. Overview Page . . . . . . . . 3 Olin’s Annual Planning Process . . . . . . . 4 Scenario Research and Preparation . . . . . . . 5 Scenario Planning Exercises . 6 Scenario Planning Exercises: Understand . . . . . . . . . 7 Scenario Planning Exercises: Analyze . . . . . . . . . . . 8 Scenario Planning Exercises: Decide . . . . . . . . . . . . 9 Incorporating Scenarios into Annual Plans . . . . . . 10 Business Results . . . . . . .11 Key Lessons Learned . . . . .12 Supporting Tools & Resources . . . . . . . . .13 Additional Scenario Planning Resources . . . . 13 Contents • Three to four months to gather and review scenario-related source materials • Dedicated member of the strategic planning team to collect data and create scenarios • Access to scenario-related materials produced by industry, government, and consulting associations • Scenario planning helped Olin pinpoint new market opportunities, which resulted in the company exiting declining markets (e.g., brass) and entering more profitable ones (e.g., Chlor Alkali). • Scenario planning helped Olin grow its bleach market by a factor of five between 2005 and 2012. • Olin increased its EBITDA from $78 million in 2004 to an estimated $415+ million for 2013. Business Results Resources Required HEADQUARTERS Clayton, Missouri, United States GEOGRAPHIC FOOTPRINT North America and Australia OWNERSHIP Public EMPLOYEES (2013) 4,130 Contact the Growth Team Membership™ (GTM) GTMresearch@frost.com www.gtm.frost.com twitter.com/Frost_GTM
  • 4. 3 The contents of these pages are copyright © Frost & Sullivan. All rights reserved. best practice guidebookgrowth team m e m b e rs h i p™ Source: Olin Corporation; Growth Team Membership™ research. Olin embeds scenario planning in its annual strategic planning process Scenario and Annual Planning Integration Process Understand DecideAnalyze Incorporating Scenarios into Annual Plans Scenario Research and Preparation Scenario Planning Exercises Objective Ensure annual plans incorporate scenario implications Objective Create an early warning system for the scenarios Objective Assess the implications of each scenario for Olin’s businesses Objective Introduce stakeholders to scenario planning in general and the prioritized scenarios in particular Objective Identify global trends that could influence Olin’s future profitability, revenue, footprint, and customer base Key Activities • Include scenario-based contingency plans in divisions’ strategic plans • Consider scenario implications when making corporate long-range and strategic plans Key Activities • Identify “triggers” that indicate a scenario is occurring • Devise detailed contingency plans to implement if a scenario comes to pass Key Activity • Discuss each scenario using key factors, including regional growth rates, energy prices, and currency rates Key Activity • Prepare corporate- and division-level decision makers for a series of scenario-based discussions Key Activities • Collect and analyze future scenarios by third-party research organizations • Prioritize scenarios with the highest degree of impact and uncertainty • Develop a range of scenarios for corporate- and division‑level decision- makers to consider VP of Strategic Planning and IT Role: • Facilitate division- and corporate-level planning, including operational and scenario planning • Manage and coordinate annual strategy implementation • Inform planning activities, scenario planning, implementation, and M&A Division Planning Team Role: • Formulate business-level strategic and operational plans • Participate in scenario planning exercises Composition: VPs/General Managers and functional leaders within each division (approximately 6–12 people) Corporate Planning Team Role: • Formulate corporate strategic and operational plans • Approve strategic and operational division‑level plans • Participate in scenario planning exercises Composition: The corporate team (C-Suite) and heads of key functions, such as HR, Legal, and Finance (approximately 10 people) Key Players
  • 5. The contents of these pages are copyright © Frost & Sullivan. All rights reserved. growth team m e m b e rs h i p™ Please contact us to learn how to access the full Best Practice Guidebook or for information on Growth Team Membership.™ Email us GTMresearch@frost.com Visit us online www.gtm.frost.com Follow us on Twitter

×