Strategic planning


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Methodology to implement strategic planning to achieve goals and objectives.

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Strategic planning

  1. 1. Practical Strategic Planning<br />This presentation will give you an overview of how to do a strategic planning initiative. <br />
  2. 2. What is strategic planning?<br />Create, plan and motivate to execute actions that will achieve an specific business mission. <br />
  3. 3. Contents: <br />
  4. 4. a) Set a Frameb) Key Factors & Tools <br />1. Define Context<br />
  5. 5. 1. Define Context<br />a) Set a framebutdreambig<br /><ul><li>Define “Whatwewant” (Mision)
  6. 6. Define “Whywewantit” (Vision)
  7. 7. Define “Whatisallowed” (Values)
  8. 8. Define a “Time frame” (Levels)</li></li></ul><li>b) Key Factors & Tools<br />Swot Analysis<br />All levels of the organization share their perspective about the past, present and future, internally and externally .<br />All participants are present during the hole planning or there will be no commitment.<br />Porter´s 5 forces<br />Pestel Analysis<br />Mental maps & questions<br />All the Tools are inputs for the session + the balance results<br />
  9. 9. Output of the milestone:<br />The light after the tunnel id Defined<br />(What, why and when: Mission, vision and timeframe)<br /> A Brainstorm of good, bad, and the ugly<br />(what to increase, decrease, avoid, etc. defined) <br />Do clusters of information <br />(Use the categorization to balance: Financial, customers, processes and learning and growth)<br />b) Key Factors & Tools<br />
  10. 10. 2.Measure & Compare<br />c) Add numbers to the statements d) Rank by importancee) find relationships.f) Break it down in to a path <br />
  11. 11. c) Add numbers to the statments<br />Example: <br />The Mission states: <br /> …”be one of the TOP 3 in the industry by cost and quality ” <br />SWOT analysis showed: <br /> our price is not the best in the market <br /> we do not have any share in Asian market<br /> Our warranty rate is 1/100 for early life and 1/300 mid to end of life<br />Not all the statements will have numbers but we encourage to find them in order to have <br />A real proportion of the truth, where you are and where you want to go.<br />
  12. 12. d) Rank by importance<br />Make a database of factors: Worksheet or list (Output)<br />From the SWOT & PESTEL you will find several ideas. Rank them and set a limit or scope.<br />Define an action to mitigate the harm or increase the helpful factors<br />Source Name (use a decision matrix: importance, score and rank)<br />Set a limit: You won’t be able to do everything at once<br />
  13. 13. e) Find relationships<br />Go deeper: From the Ideas, SWOT, Maps and PESTEL<br />Take all your weaknesses and see if there are relationships between them, <br />Are they one cause of the other? It´s a fact or a perception? Why they have this perception? . Map all this ideas, make a conclusion and address the findings as one to three projects. (you can do the same for the strengths or opportunities) <br />Make the same thing within groups and between groups in order to improve your organization: How we work together?<br />Output: <br />1 to 3 projects defined for the year<br />Mayor problems exposed and known (adjust)<br />
  14. 14. f) Break it down in to a path and located it in a timeline<br /><ul><li>Once you have your Mayor tasks defined to achieve your Mission: </li></ul>break them in to a tasks within a timeframe<br />Get <br />Certification<br />Have the Audit<br />1 week<br />Apply <br />On time<br />1 week<br />Prepare for Audit<br />2 months<br />Use this only if the magnitude or duration of the task is not known or if the actions needed to achieve it, and if it falls in different years. <br />Define the year when the actions will be made and the departments involved.<br />Add a sign if investment of special resources are needed<br />
  15. 15. Balance and index<br />You have already selected the mayor drivers to the year (Projects, actions, and end of year desired state)<br />i) Balance them in the “Porter´s perspectives”.<br />j) Assign the Key performance Index that will be impact by the project.<br />k) Assure that those are present in the balance scored card (Macro and micro) <br />Balance and índex<br />
  16. 16. Balance and index<br />High level clusters should fall in one of the four Porter´s perspectives. This is the<br />Core structure of the plan<br />
  17. 17. Balance and index<br />The balance will assure the success of the company, we need Happy customers and happy employees with effective process and financial success.<br />You can only improve what you can measure<br />You can have 3 levels of the same metric: Toassureinvolvment<br />Scrapover sales fromtheplant / fromthedivision/ fromtheproject<br />
  18. 18. At thispointyou can built a structure:<br />Set a general Board and feeditwithsubsystems, forexampleyou can have a companyboardfeedbyanoperational, R&D and Central functionboard<br />Balance and index<br />GENERAL<br />Central<br />R&D<br />Operations<br />
  19. 19. Define a Balance scored card per Area, assure alignment between each level.<br />No less than 8 Key performance index not more than 10.<br />Translate the BSC into personal targets. <br />Balance and index<br />Example of three KPIs in a BSC<br />
  20. 20. 4. Plan & motivate<br />
  21. 21. Communicate& Motivate<br />Make a kick off of the Strategy and its indexes to all the organization:<br /> communication plan (Output)<br />Develop a personal goal sign in <br />Each employee with their bosses<br /> Each employee agrees their contribution to the grater good<br />Go!<br />
  22. 22. Control<br />Evaluate results and adjust:<br />Month by month follow you Balance Score Card. <br />At the middle of the periodgo back andevaluate the performance andadjust the plan if needed.<br />
  23. 23. Control<br />Go virtual: Make the score cards available for everyone. <br />Learn: Adjust the strategy system after learning from the process<br />Routine: be sure the eyes are over the objectives every step of the way<br />Interactive and interaction: People is Key, listen, respect agreements.<br />Reward: Establish a reward system based in three factors: Recognition, monetary reward and access to knowledge<br />
  24. 24. Summary<br />Where we want to be<br />Dream<br />Be realistic<br />At the end of the period<br />Where we are<br />
  25. 25. Summary<br />Mission <br />Vision<br />Actionplans<br />Battleplans<br />Sub projects<br />Where we want to be<br />Set Iniciatives<br />Define macro-projects<br />Dream<br />Be realistic<br />At the end of the period<br />Where we are<br />Balance Score card<br />Targets per employees<br />Tools: e.g SWOT<br />Marketanalysis<br />Time<br />Evaluationsystem<br />
  26. 26. Targets Achieved<br />People needs to believe, in order to believe they need to be part of the input.<br />Group management and empowerment are key to have a successful business<br />If you want your business is driven by its own, teach to everyone to be a CEO<br />Comments welcomed:<br />