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Strategic Business Planning Methodology
Strategic Business Planning Methodology
Strategic Business Planning Methodology
Strategic Business Planning Methodology
Strategic Business Planning Methodology
Strategic Business Planning Methodology
Strategic Business Planning Methodology
Strategic Business Planning Methodology
Strategic Business Planning Methodology
Strategic Business Planning Methodology
Strategic Business Planning Methodology
Strategic Business Planning Methodology
Strategic Business Planning Methodology
Strategic Business Planning Methodology
Strategic Business Planning Methodology
Strategic Business Planning Methodology
Strategic Business Planning Methodology
Strategic Business Planning Methodology
Strategic Business Planning Methodology
Strategic Business Planning Methodology
Strategic Business Planning Methodology
Strategic Business Planning Methodology
Strategic Business Planning Methodology
Strategic Business Planning Methodology
Strategic Business Planning Methodology
Strategic Business Planning Methodology
Strategic Business Planning Methodology
Strategic Business Planning Methodology
Strategic Business Planning Methodology
Strategic Business Planning Methodology
Strategic Business Planning Methodology
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Strategic Business Planning Methodology

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This Slideshare presentation is a partial preview of the full business document. To view and download the full document, please go …

This Slideshare presentation is a partial preview of the full business document. To view and download the full document, please go here:
http://flevy.com/browse/business-document/strategic-business-planning-methodology-244

Strategic planning is the most essential and important part of a business cycle. Strategic business planning is the process by which the guiding members of an organization envision its future and develop the necessary processes and operations to achieve that future.

This Strategic Business Planning Methodology provides a framework for conducting a strategic business planning study and to map out an actionable plan for the business. This methodology can be easily incorporated into your organization's SOP and it comes with a Strategic Business Planning Study Report template.

CONTENTS:

1. Strategic Business Review
- Review current state
- Identify areas of competitive advantage
- Analyze industry trends and competition

2. Business Visioning
- Envision desired state

3. Business Strategy Development
- Identify and screen opportunities
- Analyze opportunity gaps
- Benchmark and make recommendations

4. Implementation Formulation
- Define blueprint
- Identify programs
- Define implementation plan

Strategic Business Planning Study Report Template (Word document)

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  • 1. © Operational Excellence Consulting. All rights reserved. The guide serves as a framework for conducting a strategic business planning study and to map out an actionable plan for the business. Strategic Business Planning Methodology Step by step approach to strategic business planning
  • 2. © Operational Excellence Consulting. All rights reserved. 3 Introduction to Strategic Business Planning Methodology • The pace of change has accelerated considerably as organizations enter the electronic age of the new economy. And because the world changes constantly at a “click” rate, strategic planning is the most essential and important part of a business cycle. • Strategic business planning is the process by which the guiding members of an organization envision its future and develop the necessary processes and operations to achieve that future. • The model of strategic business planning presented in this methodology will help the organization to plan and create its future.
  • 3. © Operational Excellence Consulting. All rights reserved. 5 Overview of the Strategic Business Planning Methodology Implementation Formulation Business Strategy Development Business Visioning Strategic Business Review
  • 4. © Operational Excellence Consulting. All rights reserved. 7 The strategic business planning methodology provides a blueprint for achieving the organization’s future state vision Strategic Business Planning Methodology Strategic Business Review Business Visioning Business Strategy Development Implementation Formulation • Review current state • Identify areas of competitive advantage • Analyze industry trends and competition • Envision desired state • Identify and screen opportunities • Analyze opportunity gaps • Benchmark and make recommendations • Define blueprint • Identify programs • Define implementation plan
  • 5. © Operational Excellence Consulting. All rights reserved. 9 Strategic Business Planning Methodology Implementation Formulation Business Strategy Development Business Visioning Strategic Business Review • Review current state • Identify areas of competitive advantage • Analyze industry trends and competition
  • 6. © Operational Excellence Consulting. All rights reserved. 11 1.1 Review Current State • Review the organization’s current vision and mission. The primary questions to answer are:  Why does the organization exist?  What function does the organization perform? (What products or services does it offer?)  For whom does the organization perform this function?  How does the organization go about fulfilling this function? • Identify the major forces driving the organization. Examples of driving forces are products and services being offered, methods of distribution, the market being served, growth, etc.
  • 7. © Operational Excellence Consulting. All rights reserved. 13 1.1 Review Current State  Organizational values  Does the organization value profit more than growth, or how strongly is customer and quality valued?  Operating philosophy  What are the published and unwritten operating philosophies that employees understand? Are the assumptions in the operating philosophy valid and relevant?  Organizational culture  Organization culture is made up of the personal values, the organization values, the operating philosophies and the organization’s assumptions about the way the world works. What is the assumption upon which the organization culture is based and how has the assumption determined its values and norms?
  • 8. © Operational Excellence Consulting. All rights reserved. 15 1.1 Review Current State • Understand the organization’s current business model. (a) Customers/Market  Which markets are the organization targeting?  How are they segmented?  What are the key requirements for the various segments? (b) Alliances  Who are the organization’s alliances and partners?  How committed and reliable are they? (c) Products & Services  What are the organization’s ranges of product and service offerings for the various segments?
  • 9. © Operational Excellence Consulting. All rights reserved. 17 1.1 Review Current State • Conduct an organizational audit of the organization’s IT capabilities. Review the existing processes, application systems and the IT infrastructure. Take inventory of the organization’s existing hardware and software.
  • 10. © Operational Excellence Consulting. All rights reserved. 19 1.2 Identify Areas of Competitive Advantage  Who are the indirect competitors outside of the industry (i.e. those providing totally different alternative products or services which provide the same or similar benefits)?  What are the strengths and weaknesses of these competitors?  How does the organization compare on in terms of features/benefits of importance to the target market?
  • 11. © Operational Excellence Consulting. All rights reserved. 21 1.3 Analyze Industry Trends & Competition • Determine the sources of data/information collection for monitoring purposes, e.g.:  Employees with outside contacts  Suppliers and distributors  Vendors and suppliers of technology  Customers (current customers, former customers, competitors’ customers, prospective customers)  External consultants  Research organizations  Internet • Collect and analyze industry data/information to determine industry trends and competition.
  • 12. © Operational Excellence Consulting. All rights reserved. 23 Records – Phase 1 • Record of review of current state • Record of competitive assessment and analysis
  • 13. © Operational Excellence Consulting. All rights reserved. 25 Strategic Business Planning Methodology Implementation Formulation Business Strategy Development Business Visioning Strategic Business Review • Envision desired state
  • 14. © Operational Excellence Consulting. All rights reserved. 27 2.1 Envision Future State • Define the organization’s desired future vision and mission. The primary questions to address are:  Why should the organization exist?  What function should the organization perform? (What products or services should it offer?)  For whom should the organization perform this function?  How should the organization go about fulfilling this function?
  • 15. © Operational Excellence Consulting. All rights reserved. 29 2.1 Envision Future State • Define the organization’s future business model. Consider the following:  People  Process  Products and services  Technology (including IT)
  • 16. © Operational Excellence Consulting. All rights reserved. 31 Deliverables – Phase 2 • Definition of desired state • Future business model documentation • Definition of critical success factors
  • 17. © Operational Excellence Consulting. All rights reserved. Phase 3: Business Strategy Development
  • 18. © Operational Excellence Consulting. All rights reserved. 35 Objective – Phase 3 • To formulate business strategies to realize the business vision.
  • 19. © Operational Excellence Consulting. All rights reserved. 37 3.1 Identify & Screen Opportunities  Areas that would give the organization a competitive advantage over its competitors, e.g. e-business, POS systems, personalized customer service  Availability of resources • Screen the opportunities according to the defined criteria. Analyze and prioritize the screened opportunities.
  • 20. © Operational Excellence Consulting. All rights reserved. 39 3.3 Benchmark & Make Recommendations • Benchmark the industries for various business excellence models and best/leading practices in the market and incorporate good ideas into the recommendations. • Formulate strategies and make recommendations for bridging the gaps. • Define Key Performance Indicators (KPIs) for tracking and ensure alignment to the organization’s strategies and objectives.
  • 21. © Operational Excellence Consulting. All rights reserved. 41 Records – Phase 3 • Organization’s confirmation of strategies
  • 22. © Operational Excellence Consulting. All rights reserved. 43 Strategic Business Planning Methodology Implementation Formulation Business Strategy Development Business Visioning Strategic Business Review • Define blueprint • Identify programs • Define implementation plan
  • 23. © Operational Excellence Consulting. All rights reserved. 45 4.1 Define Blueprint • Define blueprint for implementation. Consider the following:  People  Process  Products and services  Technology (including IT architecture)  Consulting support  Outsourcing of IT development • Define the new organization structure, roles and responsibilities to support the implementation plan.
  • 24. © Operational Excellence Consulting. All rights reserved. 47 4.2 Identify Programs • Estimate the benefits and costs of implementing the proposed programs and the IT architecture. The costs should cover hardware cost, software cost, installation cost, maintenance cost and organizational change management cost. For the IT architecture, the cost can be estimated by:  Soliciting inputs from various vendors  Compare with other projects of similar size and functionality for application systems
  • 25. © Operational Excellence Consulting. All rights reserved. 49 4.3 Define Implementation Plan • Develop an implementation plan taking into consideration the impact on the business environment, encompassing all key activities and schedule. • Make contingency plans based on some possible internal and external scenarios. • Communicate the implementation plan to the functional units (department, section, etc.). • Consolidate and review the Strategic Business Planning Study Report to ensure completeness.
  • 26. © Operational Excellence Consulting. All rights reserved. 51 Deliverables – Phase 4 • Strategic Business Planning Study Report (refer to Word document template)
  • 27. © Operational Excellence Consulting. All rights reserved. www.oeconsulting.co m.sg END OF PRESENTATION For more presentations and templates, please visit us at:
  • 28. © Operational Excellence Consulting. All rights reserved. 55 A.1 Information Architecture • Define the major data entities that are required to make business decisions. Consider the following:  Input and output of the key business processes  Information required to monitor the CSFs and the KPIs • Identify the relationship and dependencies among the data entities, including interfaces with external organizations and customers.
  • 29. © Operational Excellence Consulting. All rights reserved. 57 A.3 Technology Architecture • Review the following infrastructure for the development of the IT architecture for the organization: (a) Desktop architecture  Analyze and summarize the technologies required for operating the desktop based on the application architecture. This should include office systems, user interface devices, user access methods and query/report services.  Determine quantitative information of the desktops and the services that each category of desktop should provide.
  • 30. © Operational Excellence Consulting. All rights reserved. 59 A.3 Technology Architecture  (c) Server/Host architecture  Determine the technological platform, including hardware and system software, required for operating the application architecture.  (d) Information system policies, standards and processes  Determine the adequacy of the existing information system policies, standards and processes to support the proposed IT architecture.  Determine to what extent the IT architecture components support the detailed business transactions, i.e. review adequacy by mapping the IT architecture against the business processes. • Review the IT architectural design and approaches with relevant technology specialists and refine the design if necessary.
  • 31. 1 Flevy (www.flevy.com) is the marketplace for premium documents. These documents can range from Business Frameworks to Financial Models to PowerPoint Templates. Flevy was founded under the principle that companies waste a lot of time and money recreating the same foundational business documents. Our vision is for Flevy to become a comprehensive knowledge base of business documents. All organizations, from startups to large enterprises, can use Flevy— whether it's to jumpstart projects, to find reference or comparison materials, or just to learn. Contact Us Please contact us with any questions you may have about our company. • General Inquiries support@flevy.com • Media/PR press@flevy.com • Billing billing@flevy.com

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