4. Planning
“People like to win, to know they are making
progress. Lay out a detailed map, then measure the
milestones and celebrate forward motion.”
Ralph Hargrow, Global chief people officer at Molson Coors
5. Elements of Planning
The What: These are descriptions of what the organization does and
what it aspires to achieve—its organizational targets—including its
goals, objectives, and quantitative performance measures.
The Present: The present situation, or current environment, is
typically described in terms of the organization’s mission, guiding
principles (or values), organizational strengths (or enablers), and
organizational barriers (weaknesses or challenges).
The Future: The desired future is described by the organizational
vision and targets.
The How: The preferred route to achieving the organizational goals,
objectives, and mission is communicated as a strategy or as
strategic goals.
7. Strategic Planning
Who is your primary customer?
How do your core values prioritize shareholders,
employees and customers?
What critical performance variables are you tracking?
Which strategic boundaries have you set?
How are you generating creative tension?
How committed are your employees to helping each
other?
What strategic uncertainties keep you awake at night?
8. Need of Vision
"Without an appropriate vision, you end up with
nothing more than a list of confusing,
incompatible, and time-consuming projects that go
in the wrong direction or nowhere at all.”
John Kotter
9. Mission
Companies have developed mission statements for years.
It helps guide them by defining who they are and why
they do what they do.
Coca-Cola’s mission statement, for example, is “To refresh
the world. To inspire moments of optimism and
happiness. To create value and make a difference.”
For Google it’s “To organize the world’s information and
make it universally accessible and useful.”
10. Values
Walt Disney
No cynicism
Nurturing and promulgation of “wholesome American
values”
Creativity, dreams, and imagination
Fanatical attention to consistency and detail
Preservation and control of the
Disney magic
11. Core Purpose
3M: To solve unsolved problems innovatively
Cargill: To improve the standard of living around the world
Hewlett-Packard: To make technical contributions for the advancement
and welfare of humanity
McKinsey & Company: To help leading corporations and governments be
more successful
Merck: To preserve and improve human life
Nike: To experience the emotion of competition, winning, and crushing
competitiors
Sony: To experience the joy of advancing and applying technology for the
benefit of the public
Wal-Mart: To give ordinary folk the chance to buy the same things as rich
people
Walt Disney: To make people happy
12. Planning Summary
Is future focused
Is leadership driven
Provides for a high level of organizational involvement
Allows contention within the broad framework of the organization’s goals
Creates broad objectives that encompass organization purpose and culture
Produces a plan that is widely understood and accepted
Produces a plan that is both comprehensive and detailed
Is a model that can be rigorously applied
Provides the energizing force to drive the needed changes
Will enable an organization to create and achieve its ideal future
Allows dialog to take place in a continuous and interac-tive manner
Is measurable
13. We realized we didn’t have to come up with brilliant
ideas. We needed brilliant ways of executing good
ideas. —Mackey McDonald, CEO, VF Corporation
14. Implementation Questions
How do you know you are future focused, rather than
today/to do focused?
How will you free up time to do this?
Do you have a method for rewarding efforts to make
strategic change?
How will you make new improvements?
How will you keep track of the changing environment?
What metrics will you use?
16. Steps
A Managed Innovation Process – Combining Non-Traditional and
Traditional Approaches to Business Strategy
Strategic Alignment – Building Support
Industry Foresight – Understanding Emerging Trends
Consumer/Customer Insight – Understanding Articulated and Unarticulated
Needs
Core Technologies and Competencies – Leveraging and Extending Corporate
Assets
Organizational Readiness – The Ability to Take Action
Disciplined Implementation – Managing the Path From Inspiration To
Business Impact
21. Change-Fast, Focused & Simultaneous
Focus on the results, not
the process
Change
Re-energize the ranks
Do it fast and all at once
22. Accelerated Transition
Base the transition strategy on the economic value
drivers.
Launch small, fast–paced, short–term transition teams
that will accelerate implementation of the value
drivers.
Aggressively manage communications in order to
secure stakeholder support and acceptance.
Align organizational roles and responsibilities to
ensure clarity of direction.
Select and deploy role models who support the
desired culture
28. Strategy in Action
Distil business strategy to achieve clarity of intent
What is the intent behind the strategy?
What does it mean for each operational unit within the organisation?
Developing the strategic thrusts and broad based action plans
What are the few important themes that need to be worked on to deliver
the intent?
What are the sub-themes and projects?
What will success look like and how will it be measured?
Cascading out detailed work plans
How will the projects be led and resourced?
Who will be responsible for each task?
Are individual work plans aligned?
What is the review process?
29. Strategy Tests
Will your strategy beat the market? We find that many so-called strategies
are directed more toward “just playing along” than to overcoming the true
power of market forces.
Does the strategy tap the true source of advantage? Do you know why y
our company is successful? We go beyond superficial explanations to
ensure that strategic decisions are built on a solid platform of positional
and proprietary advantages.
Is the strategy granular about where to compete? We have discovered
that winning players systematically out-position themselves by making
better and more granular choices about where to compete, and by
following through with resource allocations that translate those choices
into reality . In other words, which market to choose is usually more
important than how much market share.
30. Does the strategy put the enterprise ahead of trends and
discontinuities? At its most basic, strategy is about seeing the
writing on the wall and responding to it.
Does the strategy embed privileged insight and foresight? Do
you see something or know something others don’t? If not, it will
be hard to beat the market. Common math applied to common
data will yield common wisdom.
Is uncertainty properly defined and accounted for? In these
volatile times, we need no reminder that the world is uncertain. Is
your strategy designed for multiple future scenarios or is it a bet
on a “base case”?
31. Does the strategy balance high-commitment choices with flexibility and
learning? Great strategists know that one of the most important decisions is
“when to compete.” Our strategy methodology produces a portfolio of moves
that allows y our company to develop a winning formula over time.
Have alternatives been evaluated without bias or false inference? The best
analysis will not add value if the decision making is flawed. However, all people
have biases in drawing conclusions from data. We use methods that help
counteract these biases and increase the quality of decision making.
Is there true conviction to act? A new strategy demands new thinking and
new beliefs, and must be incorporated early in the strategy process, because
adults learn mostly by self-discovery .
Is the strategy translated into clear actions and reallocation of resources?
Have you gone beyond vague statements of intent toward a strategy than can
be driven down the line? A strategy is only implemented when resources move
and pivotal roles behave differently
35. Im
possi bi l e or Possi bi l e?
Industry– what can we not do in our industry
Operations – what can we not do with our
operations or business processes
Company– what can we not do within our
company, culturally or organizationally?
Clients– what would our customers say we
would never do for them that they would like us
to do?