This document provides an overview of strategic planning concepts and processes. It defines key terms like vision and intent statements, core competencies, layers of advantage, and strategic mapping. Tools for strategic planning like the four quadrant chart and SWOT analysis are also introduced to help assess opportunities, strengths, weaknesses and threats. The overall aim is to help companies develop a strategic plan to achieve their vision and goals.

1. Strategic Planning
The missing piece to profitability & growth!
S tr
at e
gic
P l an
Strategic Planning Summary
G. Berthelson
September 2010

2. Strategic Planning Process Overview
Company Strategic
Corporate Balanced Strategic
Vision & Intent
Vision & Goals Scorecard Planning
Goals Process
This session’s
Focus

3. Strategic Planning Mind Map
Corporate Financial
Goals
Strategic
Relationships
Vertical Market
Opportunities
Other Horizontal Core Competencies
Market
Opportunities
SWOT Analysis Layers of
5 Year Plan Strategic 4 Quad Chart Advantage
Sustaining Market
Opportunities Plan
Enablers
Existing Market
Share
Competitive
Analysis
Strategic Intent
Statement
Vision Statement

4. Strategic Mapping
• The following is a sample map of a company’s
strategy addressing how it will meet its vision
statement contained at the top of the map.
• The map is structured into four key categories of
performance.
1. Enablers at the bottom define the key elements of your
foundation that will enable your company to execute its
strategy.
2. Internal defines the key tactical elements that you need to
execute to meet your vision statement
3. Customer is how you want your customers to view your value
4. Financial defines how you are going to be financially
successful in achieving your goals.

5. Strategic Mapping
•Layout your map to meet your company’s unique set of
needs.
•Once laid out allocate a numerical rating for each of the
nodes based upon their ranking of importance to your
success. The sum total of all the rankings on the map
must total 100.
•Having ranked each of the nodes you now know what
areas of the map you need to focus upon to be
successful.
•Lay out an execution plan based on your strategic map
and its rankings.

6. To become the preferred and required supplier in the worldwide (xxx) and (xxx) Marketplace by
developing unique, high quality, high reliability, low cost products for (xxx) and (xxx) users.
Deliver Outstanding
Shareholder Value 0
FINANCIAL
Generate Strong ROCE
Build Strategy Map
3
1 Grow in Non- Maintain Our
0 Traditional Markets 1 Sustain Organic Profitability 3
Growth 3
www.pm2.ca
CUSTOMER
Preferred/Required
2 System & Component
5 Supplier 8
Be the Problem Solver Deliver Value through:
Quality; Time; and
5 Service 12
Innovation Operational Excellence
Continually Improve
INTERNAL
Develop New Customer Satisfaction
Component & System on Cost, Quality &
Solutions 12 Be easy to do business Time Requirements
4 with 17
5 Innovatively add 6
Be Successful at
new competencies
8 Integrating new
competencies 2
ENABLERS
Attract, Grow and Nurture a High Enhance Tools & Enable Our Strategy
2 Retain the Right Performance Processes Through Technology
0 People Culture
5 5 5 5

7. Strategic Planning Definitions
• Strategic Intent
– An obsession with winning at all levels of the organization and
then sustain that obsession over the years during the quest for
global leadership. Focused on the ends with flexible means.
Large long term investment in human capital.
• Strategic Planning
– An obsession with winning at all levels and is based upon
available resources and the tactics required to achieve
increased sales in the shorter term. Focused on the means to
the end and less human capital intense.

8. Strategic Planning Definitions
• Layers of Advantage
– A competitive advantage which supplements your core
competencies and or helps to differentiate you from your
competitors. Rate the following chart categories and work on
your deficiencies and enhance your strengths.
• Core Competency
– Skills, processes and or knowledge that by their uniqueness
differentiates the company from its competitors.
• Relevance: Must give customers strong influence to select your
products.
• Difficulty of Imitation: The core competence must be difficult to
duplicate and through continual improvement you can maintain its
competitive position.
• Breadth of Application: It opens up and allows you to sell to a
variety of markets.

9. Layers of Advantage
COMPETITIVE LAYERS OF ADVANTAGE STRENGTH DEFICIENT ACCEPTABLE
Quality
Process capabilities
Continual improvement systems
Research and development
New product development cycle time
Technology (manufacturing and product)
Ability to drive cost out of product & process
Lead times
Distribution channels
Plant capacity
On time delivery
Proximity to customers and markets
Name recognition
Technical service speed and quality
Customer service
Ease of doing business with us
Warranty and returns resolution
Vendor qualification and management
Information systems
Implementation of change
Pricing
Product mix
Sales and marketing presence
Employee workforce
Intellectual property
Company culture
Customer relationship management
Competitive intelligence processes
Working with customers on tech roadmaps

10. Core Competencies
• Understanding core competencies is understanding that you
must have something that customers uniquely value if it is to
make good profits. (Me too companies can only compete on price
or service)
• What factors influence your customers in deciding to buy
your products and services?
• What do you have to offer for each of those factors?
• Of those offerings which are unique, if any, to you?
• Of those unique offerings how do each stand up against the
tests for: Relevance, Difficulty of Imitation and Breadth of
Application
• What additional core competencies do you want to develop
or acquire?

11. Strategic Planning Definitions
• Vision Statement
– A statement that defines to your customers and employees
what the company wants to become and how it wants to be
viewed in the marketplace.
Example: To become the preferred and required supplier in the
worldwide (xxx) and (xxx) Marketplace by developing unique, high
quality, high reliability, low cost products for (xxx) and (xxx) users.
• Strategic Intent Statement
– A statement that defines how your company is going to
implement its vision in a form that behind which, all
employees can identify and invest their efforts.
Example:
– To unseat the best and remain the best worldwide.

12. Strategic Planning Definitions
• Four Quadrant Chart
– Identifies existing core competencies; new competencies
that your company wishes to acquire; identifies market
opportunities on the basis of those competencies
• SWOT
– Strengths, Weaknesses, Opportunities and Threats
• Usually addressed as an analysis of a company’s competitive
position; opportunities your strengths bring to you; identifies
what competitive threats your weaknesses expose you to.

13. Four Quadrant Chart
Extend our capabilities
Mega opportunities
(Premier Plus 10)
New
Core
Competencies Strengthen the core Enter new markets
(Fill in the blanks) (White spaces)
Existing (1)
Existing New
Market
(1) Bottom boxes can be Layers of Advantaged based

14. SWOT Analysis
Internal
Strengths Weaknesses
External
Opportunities Threats