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    Strategy development Strategy development Presentation Transcript

    • Chris Skinner @FSClub and @Chris_Skinner www.thefinanser.com © Chris Skinner. All rights reserved.
    • © Chris Skinner. All rights reserved.
    • © Chris Skinner. All rights reserved.
    • O C O EL O C CI N I HT O E NI M T OC I Y LA C OL G Y © Chris Skinner. All rights reserved.
    • POLITICAL FORCES FOR CHANGE• What are the industry rules, regulations and governmental controls that affect what you can an cannot do?• How does our country and governments policies affect our ability to trade domestically, regionally, globally?• How might governmental policy change in the future?…• Can we build scenarios of the extremes? © Chris Skinner. All rights reserved.
    • ECONOMIC FORCES FOR CHANGE• Where are the growth markets for our products and services? Are we positioned well to serve these markets?• Where are the contracting or weak markets for our products and services? Are we too strategically positioned in these markets?• How do we leverage for demand and control supply?• What economic forces will potentially disrupt our value or supply chains?…• Can we build scenarios of the extremes? © Chris Skinner. All rights reserved.
    • SOCIAL FORCES FOR CHANGE• How are our customers changing?• Is our services or product viewed as a force for good oin society?• Will people still want our product in five years from now and who will these people be?…• Can we model the extremes? © Chris Skinner. All rights reserved.
    • TECHNOLOGICAL FORCES FOR CHANGE• Are technologies going to assist our growth or decimate our business?• Can we leverage these technologies in our value and supply chains?• Can we find new technologies to innovate our offers or enhance our services?…• Can we model the extremes? © Chris Skinner. All rights reserved.
    • Define the Business Issues … … then work on the Strategy Economic Another Asia Crisis?Social Industry image PoliticalNew Generation of wireless kids Greenspan policy ECExtended family unit over time Impact of EMU - $, ¥, € Next US PresidentLongevity Reducing Margins Pensions exposureGene therapy Geographic Border Breakdown Regulatory ChangesCustomer Sophistication Direction Taking into account Culture (from sales culture to dealing with acquisitions) Organization (centralization vs. decentralization) Growth strategies Sales and Channel management New Products Competition Technological Foreign Players Integration of alternative delivery systems New Entrants eBusiness/eCommerce New Brands/Branding Technology Advances Industry Consolidation Wireless Finance Time to Market TV and Internet integration © Chris Skinner. All rights reserved.
    • © Chris Skinner. All rights reserved.
    • FINANCIAL STRATEGIC PLANAim = maximise the return on investment for StakeholdersMISSION – Defines the journey; destination and time frame, e.g. to be No. 1 in 3 yearsSTAKEHOLDERS – For whom in business to serve, eg. Shareholders, Customers, Employees, Suppliers, Local CommunityGOALS & OBJECTIVES – Major milestones for achieving the Mission, eg. 30% sales via new channel in 1 yearCRITICAL SUCCESS FACTORS – What has to happen to achieve Objectives, eg. faster to market by 50%Measured by: FINANCIAL RESULTS – Delivery of Financial Performance, eg. Expenses, Profit & Loss Account, Balance Sheet © Chris Skinner. All rights reserved.
    • Three Strategic Plans Financial Customer People
    • MONEY DESTINATION Create the Educational Theme Park by the year 2000 STAKEHOLDERS The University, Student Customers, Commercial Customers, Staff, Suppliers GOALS & OBJECTIVES - Outperforming every other University Hospitality in the UK - Being Commercially Viable and Successful - Leader of a Quality Environment - Providing a Great Quality of Life for Students CRITICAL SUCCESS FACTORSContribute 17% minimum towards University’s overall income Grow KUH’s business by 20% year on year Gain economies of scale Measured by: FINANCIAL RESULTS Bottom-line performance: costs, income, profitabilityBenchmarks against the Hotel Industry and other Universities ISO9002 Managing © Chris Skinner. All forreserved. Monies rights Stakeholders
    • CUSTOMER STRATEGIC PLANAim = optimising customer retentionRAISON DÊTRE – Nature of and reason for business, eg. Richard Branson -“We fly People, not Planes”IDENTITY – A unique and compelling reason to want do business with you, eg. Convenience, Corporate & Brand ImagORGANISATION – How to organise to Implement the above , eg. Process Owners, Budgets, Resources, StructureCAPABILITIES – Products, skills, technologies, that can be learnt or introduced and are required to deliver the Identity through that Organisation, eg. Teleservicing Training, Technical Knowledge, Programming,Measured by: CLIMATE – Strengths, Weaknesses, Opportunities and Threats, eg. Competition, Government, Press, European market, etc. © Chris Skinner. All rights reserved.
    • CUSTOMERS RAISON DÊTRE Providing our customers with “A Lifetime Gain” IDENTITY Quality of educational experience/ Quality of life experience/ Safe and secure/ The sixth most popular campus in the country/ A cashless society CAPABILITIES An Educational Theme Park/ Practical skills/ Facilities for the regular student and the corporate visitor/ A year round Conference Park facility/ Attractive, village atmosphere in an inviting environment/ The opportunity to meet at a University in Quality surroundings/ An Educational Village providing a range of facilities for a mixed community/ Our raw material is beauty of surroundings and environment - the rural location/ Create a self- selecting approach that caters for all markets/ The biggest campus in the UK ORGANISATIONMeasured by: BUSINESS CLIMATE (SWOT) Exceeding Customer Expectations © Chris Skinner. All rights reserved.
    • PEOPLE STRATEGIC PLANAim = motivating people to release their full potential)VISION – A lasting picture inspiring hearts and mindsCHARACTER (Value Gap Analysis) – Philosophies, Values and Beliefs required to support the Vision, eg. Trust is Vital (philosophy), We Trust our Staff (value), Our Staff are Trustworthy (belief)COMPETENCIES – The innate qualities required in people to fulfill the Character, eg. Leadership, Intuition, Initiative, Creativity, EmpathyRECOGNITION AND REWARD – To support and nurture the Competencies - What gets measured and rewarded first gets done first, eg. Quality not QuantityMeasured by: INDIVIDUAL BEHAVIOURS – The culture that determines how people act and react eg. We are never too busy for our Customers © Chris Skinner. All rights reserved.
    • PEOPLE INSPIRATION I am Extraordinary CHARACTER Focus upon The Customer/Move from institutional to empowered/Ensure right people are in the right job/Be involved and participate/Manage through inner strength/Look for the positives/You make the difference/Interact, talk, communicate/ Say what you feel/There is no rule book/Have fun/Be a friend first COMPETENCIES Communicate/Seek opportunity/Common sense Leadership/Creativity/Enterprise/Vision/Initiative/Dynamism RECOGNITION AND REWARD Reward by Profit SharingRecognise the TEAM EFFORT and the INDIVIDUAL EFFORT Measured by: INDIVIDUAL BEHAVIOURS Performance measurement ISO9002 Investors in people Motivating People © Chris Skinner. All rights reserved.
    • MONEY DESTINATION Create the Educational Theme Park by the year 2000 STAKEHOLDERS The University, Student Customers, Commercial Customers, Staff, Suppliers GOALS & OBJECTIVES - Outperforming every other University Hospitality in the UK - Being Commercially Viable and Successful - Leader of a Quality Environment - Providing a Great Quality of Life for Students CRITICAL SUCCESS FACTORSContribute 17% minimum towards University’s overall income Grow KUH’s business by 20% year on year Gain economies of scale Measured by: FINANCIAL RESULTS Bottom-line performance: costs, income, profitabilityBenchmarks against the Hotel Industry and other Universities ISO9002 Managing Monies for Stakeholders © Chris Skinner. All rights reserved.
    • Define the Strategy DirectionMoney Customer People(ROI) (Channels) (Employees)Balanced Scorecard Critical Success factors Key Performance Indicators © Chris Skinner. All rights reserved.
    • Direction Maximise shareholder value by following these strategic themes: leader in chosen markets first choice for our customers driving down day-to-day operational costs Money Customers People (Employees) Lowest unit cost retail Continuously improving Well-managed, strongly distribution and branch quality customer service motivated people. Create service delivery comparable with the best highly- productive, customer- retailers. Enhance lasting needs-focused, fully- customer relationships compliant, salesforce through effective segmentation. Critical Success factors & Key Performance Indicatorscost-income ratio customer satisfaction index staff viewpoint measure groupwide CARE index for alloperational standards index complaint monitoring leadership indexactivity migration index (measure of sahre of wallet (average empathy index at all levels product holdings) moving customer activity to appropriate customer attrition staff turnover means) ... ...… © Chris Skinner. All rights reserved.
    • © Chris Skinner. All rights reserved.
    • Commu- -nicating © Chris Skinner. All rights reserved.
    • “Send reinforcements, we are going to advance”“Send three and four pence, we are going to a dance” © Chris Skinner. All rights reserved.
    • The Blunt Razor“The ABC Mach 3 solution provides aninnovation in sharing through the addition of ahighly robust, tungsten steel third blade. Thisthree blades systems is integrated with thelatest technology to enable the user to bring tobear the utensil in such a way as to allowfewer strokes to achieve a close shave. Theresult of the three blades, fixed headintegration is truly innovating in that thereduction of strokes to the face ensures theuser has less irritation when applying thistechnology.” © Chris Skinner. All rights reserved.
    • The Blunt Razor“The ABC Mach 3 solution provides aninnovation in sharing through the addition of ahighly robust, tungsten steel third blade. Thisthree blades systems is integrated with thelatest technology to enable the user to bring tobear the utensil in such a way as to allowfewer strokes to achieve a close shave. Theresult of the three blades, fixed headintegration is truly innovating in that thereduction of strokes to the face ensures theuser has less irritation when applying thistechnology.” © Chris Skinner. All rights reserved.
    • Razor Sharp FocusGillette Mach 3“3 blades, fewerstrokes, lessirritation” © Chris Skinner. All rights reserved.
    • Why is this so difficult BLAISE PASCAL 1623-1662 , (1657), xvi“I didn’t have time to write ashort letter, so I wrote a longone instead.”Mark Twain © Chris Skinner. All rights reserved.
    • © Chris Skinner. All rights reserved.
    • Credibility StatementsCredibility Statements are statements that position corporate strength.They provide key information about the organisation, its size and breadth,the range of customers, the value of revenues, the excellence of itspeople and systems.The aim of these statements is to build trust in the company for investingin their products. These statements should answer the question, “Willthey be around in five years from now if I buy from them today?”Examples:• more than 20,000 clients in over 50 countries• 47 of the world’s 50 largest financial services institutions.• $15 trillion in investment assets worldwide are accounted for and managed daily our systems
    • Capability StatementsCapability Statements are statements that position the product anddifferentiate the product from the competition. They tend to be product-centric, and focus upon highlighting the features, functionality, pricingand technical benefits of the product being offered.The aim of these statements is to attack the competitive offerings directand ensure that the product is clearly positioned as differentiated in thecustomer’s mind. These statements should answer the question, “Whyshould I buy this product rather than another one?”Examples:• First database to pass 15 industry standard security evaluations and first Real Application Clustering• First native XML support in a relational database• First fully integrated relational and multidimensional database
    • Value StatementsValue Statements focus upon the business benefits of the productsoffered. These are often customer testimonial based and are the mostimportant statements for closing business. Typically, such statementsfocus upon how clients gained cost savings, revenue increases, customerrelationship and retention improvements, employee productivity hikes,and related benefits.The aim of these statements is to demonstrate that not only is theproduct technically superior (capability statements) but also practicallysuperior. These statements should answer the question, “What will thisdo for my business?”Examples:• 50% increase in responses to followed up leads, Advance Bank• Response rates of 38% to 50%, Banco Populare di Navara• 14 million contacts per year, with response rates up from 10% to in excess of 25%, Royal Bank of Scotland
    • Example use“THE BEST A MAN CAN GET” – Credibility Statement – You can trust our brand because we’ve been around for over a cnetury and we have a globally recognised brand• THREE BLADES – Capability Statement – Three blades means that you get a 66% closer shave than with one blade – This gives the advantage of:• FEWER STROKES – Capability and Value Statement – Fewer strokes is provided by the three blades, so you only need to run the razor over the skin once, which leads to:• LESS IRRITATION – Value Statement – Less irritation means much nicer skin and better look © Chris Skinner. All rights reserved.
    • Layers of communicationHeadline• The Rationale: the Value Proposition and the Capability, Credibility and Value StatementsHeartline• The Story: the Value Proposition and the Capability, Credibility and Value Statements
    • Summary• Clear Direction – PEST and Competitive Landscape• Clear Internal Communication – A Financial Mission (the Objective) – A Vision for the People (the Journey) – A Customer Raison D’Etre (the Difference)• Clear External Communication – Razor sharp value propositions, supported by distinct and demonstrable • Credibility (The Company), • Capability (The People), and • Value (The Customer) statements © Chris Skinner. All rights reserved.
    • Chris Skinner @FSClub and @Chris_Skinner www.thefinanser.com © Chris Skinner. All rights reserved.