Neal has spoken about maximising the value of your business and the defined steps in the process of realising that value from a sale of the business. These steps don’t happen without proper planning. Whether the sale of the business is the strategic objective or whether it is a case of building a business to provide sustainable income and a capital value the process by which this is to be achieved requires effort and commitment. Before we consider this it’s important to focus on TIME
Covey – where we spend our time – URGENT [IMPORTANT & NOT IMPORTANT] IMPORTANT [URGENT & NOT URGENT] Focus on Q 2 Stephen Covey talks about where we spend our time – the 4 Quadrants Two of them are Urgent – (important Urgent and Not important Urgent) Two of them are Non- Urgent (Import non-urgent and not important non urgent) We need to reassess the way we allocate our time to these quadrants and rather than looking only at the urgent we need to look at the important Important quadrants 1 & 2 are divided into: Urgent – this needs your urgent attention today Non-urgent – this needs your attention Not necessariliy today
Quadrant 2 is about the important things that are not Urgent Planning is important but it is generally not urgent We often fail to make sufficient time availble for planning. Why – Perhaps we don’t recognise it as important we tried it before and it didn’t work we just became too busy – doing what – focussing on Urgent issues whether they are important or not important we felt it was not our responsibility we didn’t do it in the past It’s never too late to begin
What causes us to plan for the future? Unhappiness with the present Concern about the future In planning we automatically open ourselves to change Generally speaking the level of unhappiness with the present determines the drive towards change – This unhappiness may only exist in one person – This person may have a clear vision of what is achievable What are the factors that influence the likelihood of success in achieving change Assuming we have sufficient desire to change (Dissatisfaction with the present) there are two other ingredients We need Clarity of the Vision as to what it would look like when we’ve fixed it We also need a good implementation plan If we are reasonably happy with the present situation and even though we might have a clear vision of what an improved outcome might bring and even if we have a great plan to implement and achieve the vision the change has little chance of succeeding – WHY because we are not sufficiently motivated to achieve it – our level of dissatisfaction with the current situation is not high enough In order for the score on vision to be high it needs to be written down and communicated throughout the organisation.
When looking to grow the business The sustainable competitive advantage should drive your strategy – what are we better at than our competitors? Use that competitive advantage to inform and drive the marketing strategy – market and sell those features that makes this business unique Our marketing strategy should drive our operations strategy – focus our operations around giving the customer the product or service in the best possible way that adds to our competitive advantage When we have clarity around our competitive advantage – our marketing and your operations then we can focus on developing strategies in Innovation HR and Finance to support the marketing and operations strategies Develop One Page Plans around each element of the strategy – this is strategic planning
The top left is where we are now and the top right is where we want to be . The bottom is the how we are going to get there. The strategies will the Top 3 identified from the planning process. You can have a one page plan for each element of the plan Reward Success – Keep people accountable – make yourself accountable – to whom do you report?
If we are going to focus on planning then we had better look at what works and what doesn’t work Strategy has evolved a great deal from what it used to be in the 90’s as doing a big thick business plan where all problems will be solved (i.e. seeing it pass the weight test!) through to “lets start implementing plans” in the 2000’s and now strategy has become about accountability. It is not about being strong-handed, it is about people sticking to their plans but it is now more about accountability to the strategy process itself and allowing plans to evolve whilst staying focused on the ultimate vision/direction. Remember – it’s not about perfection - It’s about setting goals - It’s about charting the right direction – it’s about assembling teams to tackle specific tasks –it’s about getting the team contributing to and buying into the plan – it’s about giving authority to the team to modify the plan in the light of their experience of implementing it Having a series of one page plans built around fixing the most important issues towards achieving the vision is the strategic plan of the business.
We all need some breaks in our business – some bit of good fortune – some bit of support from those we know. We should recognise that giving and sharing is important in business. Effecting business introductions is extremely important – it benefits the person making the recommendation – it benefits the person who receives the recommendation and it also benefits the person who is recommended. People do business with people It’s important to network effectively It’s also important to do a good job for people because today’s recommendations will be based on the degree of satisfaction with the last job done It can take time to build a good reputation – it can be lost very quickly If someone has done a good job for you – recommend them where you can – be on the lookout for opportunities to recommend. Ask for recommendations when you do a good job.
Planning With The End In Mind
Planning with the end in mind 8 December 2011
WHERE do we want to be in the future? HOW do we get there? The Planning Process
Crisis Pressing Problems Deadlines 1 2 Interruptions Some phone calls Some mail Pressing Matters Popular Activities Meetings Reports 3 4 Trivia Some Mail Some phone calls Pleasant actions Time Wasters URGENT NOT - URGENT I M P O R T A N T N O T I M P O R T A N T COVEY – How we spend our time
Build Relationships Planning Strategy Training Fitness Family Self 2 NOT - URGENT I M P O R T A N T COVEY CATEGORY 2
WHAT TO WORK ON? <ul><li>What are the issues – the ‘Now’ </li></ul><ul><li>Prioritise </li></ul><ul><li>Determine the ‘Where’ </li></ul><ul><li>Establish teams to work on the ‘How’ </li></ul>
5/10 2/10 1/10 10/1000 = 1% What can be done to influence the improvement in the Change Potential? = Example: How can we increase the score in DVP? Dissatisfaction Vision Plan DVP CHANGE FORMULA
Strategic Planning Model OPERATIONS STRATEGY MARKETING STRATEGY SUSTAINABLE COMPETITIVE ADVANTAGE INNOVATION STRATEGY HUMAN RESOURCE STRATEGY FINANCIAL STRATEGY
One Page Plan T I M I N G - Who & When By A C T I O N P L A N S S T R A T E G I E S COMPANY XYZ GROWTH PLAN Date Revised: 8 th December ‘11 W H E R E – 12 months N O W <ul><li>Sales €10 million </li></ul><ul><li>Stagnant growth </li></ul><ul><li>Profit 4% </li></ul><ul><li>High turnover employees </li></ul><ul><li>Sales €12 million </li></ul><ul><li>Profit 5% </li></ul><ul><li>Clear Sales / Marketing strategy </li></ul><ul><li>Reduced product lines by 20% </li></ul><ul><li>Regular Team Projects </li></ul>IDENTIFY PROFITABLE PRODUCTS. ADOPT BUSINESS PLANNING PROCESS ACROSS ORG. ENGAGE NEW SALES MANAGER SURVEY CUSTOMERS 1. Activity Based Costing exercise 2. Make decision on cutting 20% of products 3. 1 Page Plan top 20% customers 4. Get leaders running 8 week project teams 5. Recruit new sales manager 6. Regional selling events 7. Survey customers re: needs / wants 8. Identify un-tapped new opportunities 1. MP Immediate 2. JS April 1. JS May 2. JS May 1. BM April 2. JS May 1. JS April 2. JS May
1990’S: 2000’S: 2010’S: BUSINESS PLANS IMPLEMENTATION ACCOUNTABILITY Evolution to Strategy
CONCLUSION <ul><li>HELP YOURSELF </li></ul><ul><li>EXCEED EXPECTATIONS </li></ul><ul><li>ASK FOR REFERRALS </li></ul><ul><li>NETWORK EFFECTIVELY </li></ul><ul><li>RECOMMEND OTHERS </li></ul>MUTUAL SUPPORT <ul><li>HELP OTHERS </li></ul><ul><li>RECOMMEND OTHERS </li></ul><ul><li>MAKE INTRODUCTIONS </li></ul><ul><li>SHARE INFORMATION </li></ul><ul><li>CORPORATE SOCIAL RESPONSIBILITY </li></ul>
Find Out More <ul><li>Visit us Online: </li></ul><ul><li>http://www.mcinerneysaunders.ie </li></ul><ul><li>Read More About Our Annual Networking Event & Budget 2012: </li></ul><ul><li>http://www.mcinerneysaunders.ie/blog/budget-2012-event/ </li></ul>