SII 2012For those that are prepared… …chaos brings opportunity
SII 2012 Learning Objectives:• Address key elements of a business plan that align your firm’s critical objectives with those of your individual’s business unit’s objectives.• Discuss common mistakes in writing strategic business plans.• Identify guidelines on how often to review your strategy, adjust and change or be flexible.• Provide each participant with numerous tools, ideas and skills to apply when creating a detailed and realistic strategic business plan.
SII 2012 Do NOT freak out!• I have a ton to cover and I will go pretty fast.• Please take notes and ask questions.• I am happy to answer any of your questions, offer advice and recommend books at any time.The slides and a full strategic planning workbook are already posted at: www.SlideShare.net/johnspence
SII 2012 What strategy is not…• More, better, faster is not a strategy.• Effectiveness and efficiency are necessary… but not sufficient.• Superb execution of fundamental business processes… is expected.• Being extremely good at what you are supposed to be good at… gets you no extra credit at all.
Do you have a clearly focused and SII 2012well-communicated strategy for success? Effective Strategy = Valued Differentiation x Execution
SII 2012Key Point: Strategy is INTERNAL as well as EXTERNAL
SII 2012 Five Foundations of Effective Strategic Thinking Business AcumenPersonal ExperiencePattern Recognition Strategic InsightDisciplined Execution
SII 2012 How to avoid the Four I’s• Aggressive external market focus.• Aggressive customer focus.• Keep the “Main Things” the main things.• Bullish on knowledge sharing and learning.• Passion and commitment at all levels.• Foster a healthy paranoia.• Revel in change.
SII 2012From the CEO of a little 182 billion dollar company…“Look, what is strategy but resource allocation?When you strip away all the noise, that’s what itcomes down to. Strategy means making clear-cutchoices about how to compete. You cannot beeverything to everybody, no matter what the size yourbusiness or how deep its pockets. You have to figureout what to say “NO” to.” Jeffrey Immelt
SII 2012“Simplicity isthe ultimatesophistication” Leonardo da Vinci
SII 2012 Breakthrough Strategies• GE: 1- 2 or F.S.C.• Intel: memory to processors• Microsoft: installed base• Apple: chaos to elegance
SII 2012 Southwest 1 type of plane Point-to-point Fast turnsLow fares / no frills Friendly staff
SII 2012 Southwest – Dell – Walmart What is the pattern?• Extreme efficiency.• Minimize costs to as close to zero as possible – without negative impact.• All focused on delivering customer value – as defined by the customer.
SII 2012 Educated Guess FocusResource Allocation Bold not Risky What NOT to do
SII 2012What Business Planning is Not !• Business planning does not attempt to make future decisions.• Business planning is not forecasting.• Business planning is not an attempt to blueprint the future.• Business planning is not necessarily the preparation of massive plans and reports.• Business planning is not an effort to replace good management judgment.
SII 2012 Why Planning Pays OffAsks & answers questions of importance.Simulates the future.Forces the setting of objectives.Gives a framework for decisions.Develops performance measurements.Improves communications.
SII 2012What Inhibits Execution? National Survey of 4,000 Senior Executives 4. Inability to work together (21%) 3. Company culture (23%) 2. Economic climate (29%) 1. Holding onto the past / unwillingness to CHANGE (35%)
SII 2012 Where are we going + how will we behave on the way? Praise + Celebration Focus and Differentiation Eliminate Mediocrity “No”Measure / Track Communicate Stakeholders + Transparency guiding collation Renewal Vision + Values Training + Strategy time / money / Planssupplies / people Goals Objectives Tactics / Actions Clear / consistent / relentless Procedures / Protocols All available channels Repeatable Process
SII 2012Some thoughts on measurement • Less is more • Results not activity • Easy / Hard • Post and review • Help not punishment
SII 2012 Scenario Planning…Is a process that stimulates imaginative and creative thinking to better prepare an organization by rehearsing for the future to avoid surprises and break through the illusion of certainty. Probability / Impact ---- Trigger Points
SII 2012 Review of the plan?• Twice yearly Strategic Planning Retreat – 1 to 2 days• Monthly “quick check” meetings 2 – 3 hours• Weekly Senior team alignment review – 1 hour or less• Carry plan to every strategic meeting
SII 2012 Summary of Key Ideas• Major elements: thinking, planning, execution, review• Strategic thinking = study + experience + pattern recognition• Strategy = bold bets on resource allocation.• What you say “No” to is a big part of strategy.• Planning is a process.• Analysis is critical – but it is not strategy.• More, better, faster is not a strategy.• This is not blueprinting the future.• Keep it simple, focused and extremely well communicated.• A plan for execution MUST be part of the strategic plan.• Alignment + support + measurement + tracking + reward / punishment• Contingency planning = probability & impact / trigger points
SII 2012 THANK YOU If you have any questions at all please do not hesitate to send a note or call. My email address is: email@example.com Also, you might find value in the ideas I share in my blog. You can sign up for it at: www.johnspence.com/blogThese slides and the workbook have already been uploaded to: www.slideshare.net/johnspence