Designing the Future of
Our Goals for Today ...
Explain and demonstrate the basics of
Strategic Business Planning.
Get you “started” on the process.
Provide a framework to continue the
Lots and lots of application - workshops
Set the tone:
The 5 ways to run or ruin
a great business…
D= IO NO !
Op NO !
The 5 Key Factors -/+
1. Lack of a clear, specific , vivid, compelling
and realistic vision. What is your clear
2. Lack of urgency. You must turn the
business plan…into a business reality.
3. Lack of open, honest communication.
4. Allowing sub-par employees to remain.
5. Turning the focus inward. The customer
MUST be the focus
I am sick of… Why don’t they…
It is stupid…
COMPLAIN They ought to…
It will always be like this I must do something
I have no control I can make a difference
I can’t impact this I am willing to work and fight
It is out of my hands I can impact or influence this
No need to plan I demand that things change
It has already happened It is worth the risk
I don’t have the authority I must make a plan
It is not worth the effort or risk This is my responsibility
I can’t fight it any longer This can’t go on
The Elements of the Strategic
Business Planning Model
External Appraisal Vision Internal Appraisal
Define the business
Threats and Goals Strengths and
Opportunities in Weaknesses of
Environment Targets Organization
Critical Success Distinctive
Indicators - Creation of Strategy Competencies -
Contingencies Value Added P/S
Monitoring / Adjustment of
Read page 3 for the more simplistic view…
1. Long-term impact of
Strategic planning deals with
the future impact of current
decisions. This means looking
at the cause and effect
consequences, over time, of an
actual or intended decision.
2. Strategic Business
Planning is a process
It is a process that begins with the
setting of organizational aims,
defines strategies and policies to
achieve them, and develops
detailed plans to make sure that
strategies are implemented so as to
achieve the results sought.
3. It is a philosophy
Strategic Planning is an attitude, a
way of life. Planning necessitates
dedication to acting on the basis of
contemplation of the future, a
determination to plan constantly
and systematically as an integral
part of management.
4. It gives structure
A formal strategic planning
system links the three major
types of organizational plans:
Long-range Strategic Plans
Short-range Budgets and Operating
What Strategic Business
Planning is Not !
Strategic planning does not attempt to make
Strategic planning is not forecasting.
Strategic planning is not an attempt to
blueprint the future.
Strategic planning is not necessarily the
preparation of massive plans and reports.
Strategic planning is not an effort to replace
good management judgement.
Why Planning Pays Off
Asks & answers questions of importance
Simulates the future
Forces the setting of objectives
Gives a framework for decisions
Develops performance measurements
Varied Goals for Strategic
Go to page 7 and pick your top 3
or 4 reasons why you believe
planning is of value to your team
The 5 tasks of Strategic
Defining the Crafting a
business / SWOT
analysis - strategic
a Vision Setting Action Plan
Pages: 9 & 10
1. Check your ego at the door
2. Create Curiosity
3. Move off the solution
4. Get evidence
5. Calculate the impact
6. Explore the ripple effect
7. Slow down for yellow lights
Define the Business
Develop a Vision
You must create a clear, vivid,
compelling and achievable VISION
of where you want to take your
business over the next 3-5 years.
Some key questions to think about…
1. What is the thrust or focus for future business
2. What is the scope of products and markets that will - and
will NOT - be considered.
3. What is the future emphasis or priority and mix for the
products and markets that fall within that scope?
4. What key capabilities / resources are required to make this
strategic Vision happen? (money, product, people, advertising, distribution…)
5. What does this Vision imply for growth and return
Task 1 - Define the Business
Develop the Vision
Read page 12 – see list of additional key
Read vision example for Adbiz
Do all or part of the ThinkSheet on page 13
Complete the workshop on page 14
The GAP / SWOT Analysis
Situation The Vision
Where you Where you
are today. What you have want to go.
to do to get there.
This is the crucial stage of
asking and honestly
answering dozens of very
Gap / SWOT Work Shop
Read and answer ALL the questions on
Some will be redundant
Some you won’t know
Many you will need more information in order
Some will not apply
Write your answers on a separate sheet
Write very clearly – complete sentences
This is supposed to be very hard work…
Now you should have a huge
collection of data, facts,
concerns and questions.
The next step is to convert
all of this random – but
important - information into
a list of key Factors
Anything that could positively or negatively
affect your ability to accomplish the vision.
Written in complete sentences.
Written as a statement of fact.
1. I DK our current market share. A
2. We have 3 new products that will launch this
A = Immediate action required – top priority
B = Requires action at some time
C= important information – but no action required
As you review the analysis…
You may address several items with
just a single well written Factor
It may take multiple factors to cover just
one piece of data.
When in doubt – write another Factor
1. Our major competitors are Acme and Ajax. C
2. We currently have 15% market share. A
3. The target is to reach 20 % Market Share by 6/30/03 A
4. DK if Sun Systems is planning to enter our market. B
5. DK if we can renegotiate our supplier contracts. B
6. DK if we can automate part of our production process. A
7. Our current computer system is not sufficient for our needs. A
8. DK the technical spec’s of an acceptable computer system. B
It may help to create Factor
categories to keep track of the
major themes Financial
Factors workshop pages: 22-25
Now come this most
difficult step – the
actual setting of
business strategy –
the creation of key
After looking at all of your
Factors and Factor
You must now create a handful of
strategic thrusts that will drive your
team for the next 3-5 years.
What are the main areas of focus?
Where will you deploy resources?
How will you measure success?
Isn’t this a little redundant –
Yes, we are going through a time
consuming but necessary screening
process. Form the broadest
examination of the business possible,
down to the few Key Result Areas that
must be accomplished to successfully
achieve the Vision.
The setting of Business
Objectives may take days
or even weeks…
Begin the workshop
on pages: 26 & 27
The rubber meets the road…
Business Objectives drive
the Strategic Action Plan
Write them down
Once again, this is time
consuming and difficult…
but vital to your success!
Actions must be clear and focused
Write them as output – not input
Assign responsibility and a due date
Cross-reference with key Factors
Hold people accountable
Track progress and failure
Adjust as needed – new info
Workshop pages: 28 & 29
Factors that could have a
serious impact on your business.
Probability - % or H/L
Impact - % or H/L
Trigger Point - measurable
Contingency Plan - Action
The final steps – but the
Monitoring, review, adjustment
New vision - new plan