“ The real path to greatness , it turns out, requires simplicity and diligence. It requires clarity , not instant illumination. It demands each of us to focus on what is vital and to eliminate all of the extraneous distractions” - Jim Collins, author

AGENDA What is strategic planning? Benefits of a clear strategic direction The “Top Ten Tips” Key elements in your plan Best practices in execution Q&A and Feedback

What is strategic planning?

Benefits of a clear strategic direction

The “Top Ten Tips”

Key elements in your plan

Best practices in execution

Q&A and Feedback

The One Thing… It’s 2008. What one thing did you accomplish in 2007 that you are most proud of?

What is it? Strategic Planning

By the book (sort of) Strategic planning helps you pave the most direct path towards your vision, saving you time and money.

Getting there faster

Getting there faster

Why it matters Strategic Planning

Intentional or unintentional

Focus, Focus, Focus

Leads the pack in tools Source: 2005 Bain & Co. Management Tools study

WHAT’S HE DO ALL DAY? Characteristics of INC 500 CEOs: Spend an average of 60 hrs/week building the business Hardworking Goal setting first , action second 50% to 90% time spent on strategy and business development ** To be eligible for Inc. 500 , companies have to be independent and privately held, have had at least $200,000 in net sales in Year 1 and $2 million in Year 5.

Characteristics of INC 500 CEOs:

Spend an average of 60 hrs/week building the business

Hardworking

Goal setting first , action second

50% to 90% time spent on strategy and business development

The bottom line…. Impact of strategic planning: 12.3% increase in sales volume 11.1% increase in net profit Impact of market/community focus: 17% increase bottom-line performance 25% increase in employee commitment Impact of balanced scorecard: Allows for 2.5 times more complete management of firm performance

Impact of strategic planning:

12.3% increase in sales volume

11.1% increase in net profit

Impact of market/community focus:

17% increase bottom-line performance

25% increase in employee commitment

Impact of balanced scorecard:

Allows for 2.5 times more complete management of firm performance

… and the front door

“ The nicest thing about not planning is that failure comes as a complete surprise and is not preceded by a period of worry and depression .” Richard Palmer

Erica’s Top Ten

Being strategic is the end, planning is merely the means.

Decide if you are organizing your thoughts or determining your strategic direction.

Don’t mix them up. Strategy Tactics & Business as Usual

Know what mountain you are climbing.

Don’t plan in a vacuum. Get the right data.

Be the Best. “ You don’t want to be considered the best at what you do. You want to be known as the only one who does what you do.” Bill Graham, entertainer and concert promoter

Figure out execution before the strategy. 95% of a typical workforce does not understand its organization’s strategy 90% of organizations fail to execute their strategies successfully 86% of executive teams spend less than one hour per month discussing strategy

Get real.

Strategy does not matter, if your culture is askew.

It’s messy, don’t strive for perfection.

Use a strategy framework. Balanced Scorecard Revenue Generation Profitability Improvement Malcolm Baldridge High-performance organizations http://www.quality.nist.gov/ Your Industry Best practices from the top performers Industry associations

Balanced Scorecard

Revenue Generation

Profitability Improvement

Malcolm Baldridge

High-performance organizations

http://www.quality.nist.gov/

Your Industry

Best practices from the top performers

Industry associations

Key Elements in your Plan Strategic Planning

Skip the semantics. Where are we now? How will we get there? Where are we going?

Where are we now? Mission statement: To define the organization’s core purpose. Why do we exist? Values statement or guiding principals: To clarify what you stand for and believe in. SWOT: To assess the particular strengths, weaknesses, opportunities, and threats that are strategically important to your organization.

Where are we going? Sustainable competitive advantage: To define what you are best at. What can your organization potentially do better than any other organization? Vision statement: To explain where you are headed, your future state. To formulate a picture of what your organization’s future makeup will be and where the organization is headed. What will our organization look like in 5-10 years from now?

How will we get there? Strategic objectives/priorities: Long-term, continuous strategic areas that get you moving from your mission to achieving your vision. (3-5 year) Short-term goals/initiatives: Effective goals clearly state what, when, how, who and are specifically measurable. (1-3 year) Action items: To set specific actions items that lead to implementing your goals. How will we being to achieve our goals in the next 90 days?

Example – Parks Dept.

How do I grow? Current Products/Services New Products/Services Market Penetration Product and Service Development Geographic, Segment and/or Channel Expansion Innovation/ Diversification

Execution, Execution, Execution Strategic Planning

So now you have a plan… Accountability Put someone in charge – not you Hold monthly strategy meetings Find someone to hold you accountable WIIFM – link performance to compensation Leadership Don’t cancel meetings Commit to the process Celebrate! Reward and praise where appropriate Celebrate often

Accountability

Put someone in charge – not you

Hold monthly strategy meetings

Find someone to hold you accountable

WIIFM – link performance to compensation

Leadership

Don’t cancel meetings

Commit to the process

Celebrate!

Reward and praise where appropriate

Celebrate often

How to get your plan moving? Delegate it internally Someone with clout Detail and process oriented Outsource it Local resources Vistage site – search the directory Balanced Scorecard Collaborative Your industry associations DIY The Dummies Book Our site – MyStrategicPlan.com Center for Simplified Strategic Planning

Delegate it internally

Someone with clout

Detail and process oriented

Outsource it

Local resources

Vistage site – search the directory

Balanced Scorecard Collaborative

Your industry associations

DIY

The Dummies Book

Our site – MyStrategicPlan.com

Center for Simplified Strategic Planning

Success is not a matter of chance, but rather success is a matter of choice.

Success is not a matter of chance, but rather success is a matter of choice.

To your path of success, wherever it may lead you

Erica Olsen M3 Planning 775.747.7407 erica@m3planning.com MyStrategicPlan.com www.MyStrategicPlan.com/dummies/plan

Erica Olsen

M3 Planning

775.747.7407

erica@m3planning.com

MyStrategicPlan.com

www.MyStrategicPlan.com/dummies/plan