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Strategic Planning Overview[1]


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Prepared by Steve Bathe and John F Petak

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Strategic Planning Overview[1]

  1. 1. Steve Bathe & John F PetakLean Strategic Planning “The Plan is nothing, planning is everything”
  2. 2. Lean Strategic Planning Phases• Examine and analyze the current state• Create a strategy map and strategic plan• Create the building blocks of the plan• Implement the plan (PDCA)Goal: a strategic plan that is fully understoodand implemented leading to financial stability,organizational improvement, decreased cost andfinancial growth
  3. 3. Examining and analyzing the current state, “Understand the box before you get out of the box”• Knowing threats and weaknesses guide the allocation of resources to protect critical elements of the business• Knowing the processes and methods the organization has already invested in and its core competencies provides a better understanding of what assets already exist and the investment needed to reach strategic objectives• The future of the organization can be forecast based on solid factual evidence.• It equips businesses to face the realities that have to be dealt with on the way to meeting future goals.
  4. 4. Examining and analyzing the current state• Financial Analysis• Strengths / Weaknesses / Opportunities / Threats (SWOT)• Identifying Mission Critical elements of the organization• Risk Management Plan• Resource Evaluation• Benchmarking
  5. 5. Create a Strategy Map and Strategic Plan• Start with the businesses value propositions Standard Value Propositions Product Leadership Deliver unique, market leading products High degree of customer knowledge and Customer Intimacy understands their needs Combination product, price, quality, and Operational Excellence service Strategy Templates Product Leadership Strategy Focus Product Characteristics Relationship Image Price Quality Selection Function Service Customization Brand Marketing Customer Relationship Strategy Focus Product Characteristics Relationship Image Price Quality Selection Function Service Customization Brand Marketing Operational Excellence Strategy Focus Product Characteristics Relationship Image Price Quality Selection Function Service Customization Brand Marketing Non-Profit Value Proposition Service Leadership Known for excellence in meeting needs as outlined by mission / vision High degree of customer knowledge, Customer Intimacy measuring outcomes, meeting needs
  6. 6. Create a Strategy Map and Strategic Plan• The Strategy Map uses Value Proposition and perspectives to create a framework for objectivesValue Proposition Operational Excellence Product Leadership Improve operational Targeted new product Drive innovation Speed to market Strategy performance In Mfg and log introductions Perspectives Objectives Objectives Objectives Objectives Financial Increase Margin Increase Market Share Customer Improve delivery performance Offer enhanced functions Tie smart grid tech Reduce time to to NPI introduce new products Internal Reduce inventory Reduce labor cost Learning and Growth Provide minimum level of training Create knowledge mgmt system
  7. 7. Create the Building Blocks of the Plan• Vision / Mission• Planning• Objectives Setting• Determining Tactics• Goal Setting• Creating Projects
  8. 8. Setting Objectives• Create SMART Objectives• Strategic in intent• Meaningful• Aligned within the organization vertically and horizontally• Rational• Team driven
  9. 9. Set goals with a Balanced Score Card
  10. 10. Implement the PlanPlans are implemented with vertical and horizontal alignment of resourcesthrough policy deployment Policy Deployment Functional Departments Measure Ops Qual Eng Log Pur HR Sales Acc IT Average margin improved by X% P S S L S S Reduce by X m$ P L P S OTD > 98% P S L P S Reduce labor by X% per unit L S S S S Training hours / EE P P P P P L S S S 100% explictit and 35% tactic P P P P P L P P P Market share inc by X% P S L S Develop strategic relationships S P P S S L P Reduce time form 26 months average to 20 months S L P P < 3 days to answer complaint P L S P S launch revised site by 2Q P S P S P L Increase number of store locations by15% P S L S S Select three demographics for targeted marketing L P