VANTAGE
ASSOCIATES, INC.
MANAGEMENT CONSULTANTS




    STRATEGIC PLANNING
                     Strategy    Structure


  ...
VANTAGE
ASSOCIATES, INC.
 MANAGEMENT CONSULTANTS




         An Introduction
      to Strategic Planning
Top Management Defined

 The task of thinking through the mission of the
business, that is, of asking the question "What i...
Strategy Vs. Planning


Strategy = A coherent set of time-sequenced
           actions aimed at gaining a sustainable
    ...
Strategic Planning



If you do what you have always done
you will get what you have always got

             -- or less.
...
Definition of Insanity



 Insanity is doing the same thing
     over and over again ...


each time expecting different r...
Strategic Planning


            Planning is a tool for
             managing the change
             every organization ...
Requirements for Successful
            Change

  COMMON       1. You must have a common
   VISION      Vision of what you...
The Planning Process Should:


                 Manage change proactively
                 Improved trust and
          ...
Our Planning Philosophy


   The only purpose of planning is to improve performance.

   Planning is an evolutionary pro...
Characteristics of High-Performing
              Organizations

   Leadership                   Teamwork

   Common    ...
Strategic Planning


   The strategic planning process can be
    effectively used to:

    – Generate information
    – ...
Planning is a Part of a Cycle


               Board/Top
                 Mgmt




Input         PLANNING          Directi...
Strategic Planning is a Function and Responsibility
  of All Managers at All Levels of an Organization


TOP MANAGEMENT


...
Three Basic Questions




  A Strategic Plan answers
three basic questions about
      the organization




              ...
Strategic Planning Process
            Three Basic Questions


                                                   Long-
PH...
Components of a Strategic Plan


                  The “Three Questions”
                   are too difficult to
        ...
Overview of The
              Strategic Planning Process

PHASE I: Where We Want To Go?
                                  ...
The Planning Pyramid


                     VISION

                     MISSION

                    VALUES

            ...
Evolution of Strategic Management
         EFFECTIVENESS OF STRATEGIC
         DECISION MAKING
                           ...
VANTAGE
ASSOCIATES, INC.
 MANAGEMENT CONSULTANTS




         Strategic Analysis
Characteristics of Strategic
                 Decisions

   Multiple objectives            Interdisciplinary
           ...
Three Generic Strategies

                                             STRATEGIC ADVANTAGE
                               ...
SALES VOLUME         Business Life Cycle




         EMBRYONIC       GROWTH   MATURITY   DECLINE

                       ...
Industry Structure Analysis

             THREAT OF NEW ENTRANTS




                COMPETITORS
               JOCKEYING ...
Threat of New Entrants


   Economies of scale

   Product differentiation

   Capital requirements

   Switching cost...
Power of Suppliers


   Relative number of suppliers

   Existence of potential substitutes

   Importance of the indus...
Power of Customers


   Relative size of customer purchases

   Importance of the input to the customer

   Differentia...
Threat of Substitutes


   Price performance of alternatives

   Technology innovations

   Total product concept

   ...
Competitive Rivalry


   Numerous or equally balanced competitors
   Slow industry growth
   High fixed or storage cost...
VANTAGE
ASSOCIATES, INC.
 MANAGEMENT CONSULTANTS




                Components
                 of a Plan
The Planning Pyramid


                     VISION

                     MISSION

                    VALUES

            ...
Vision Statement



A Vision Statement is a statement of what the
organization would like to be in the future. A
 vision i...
A Vision Statement Should:


                Inspire the management
                 team
                Motivate emplo...
Vision (Examples)


   We will be one of the leading producers and
    marketers of product X in the Southeast.

   We w...
Mission or Purpose Statement



  A Mission or Purpose Statement is a
statement of why the organization exist.
  What need...
A Mission Statement Should:


                 Focus on the “now”
                 Define the product or
               ...
Purpose (Examples)


   To research, develop, and bring to market
    products which enhance the leisure time of
    our ...
Values



An organization’s Values are the core beliefs
 that drive the behaviors of everyone in the
                organ...
A List of Values Should:


                Contain a list of five or
                 six core beliefs

                ...
Values (Examples)


   Excellence in customer service
   Financial stability
   Personal and business integrity
   Pro...
Constituents



  An organization’s Constituents are those
individuals or groups that can have a positive
  or negative im...
Constituents Should Include:


                 Groups internal or
                  external to the
                  or...
Constituent Groups (Examples)


   Stockholders

   Employees

   Competitors

   Media

   Professional/trade associ...
Goals



Goals are the things the organization is
  trying to achieve over the long term.

Goals are developed to address ...
Goals Should:


          Address each of the
           constituent groups
           already identified

          Be ...
Goals (Examples)


   We will make sound investment decisions
    such that we maximize the long-term return
    to our s...
Goals (Examples)


   We will develop a proactive approach to the
    media such that it helps us communicate
    with ou...
Assumptions



Assumptions are things that you think will
happen but over which you have no direct
                 contro...
Assumptions Should:


             Reveal your expectations for
              the economy, the industry,
              th...
Assumptions (Examples)


   The national economy will continue to grow
    at 2% per year.

   The local economy will gr...
Assumptions (Examples)


   The technical skills required in the business
    will be more difficult to find.

   New te...
Strengths and Weaknesses



Strengths and Weaknesses are things that
are internal to the organization over which
  the org...
Strengths and Weaknesses Should:


                   Be significant enough to
                    make a real difference...
Strengths (Examples)


   Customer service         Strong market share

   Focus on specific        Wide range of
    ...
Weaknesses (Examples)


   Inexperience in sales

   Depth of the management team

   Systems and structures not keepin...
Opportunities and Threats



Opportunities and Threats are things that are
 external to the organization over which the
  ...
Opportunities and Threats Should:


                    Address the economy,
                     the industry, the
     ...
Opportunities (Examples)


   Rapid change of technology

   Deregulation

   New product applications

   Changing cu...
Threats (Examples)


   Increasing competition

   Modifications to tort reform

   Adverse federal initiatives

   In...
Short and Long-Term Objectives



Objectives are things that are measurable
 and achievable in a specific time frame.

 Sh...
Objectives Should:


            Always include a
             number and a date by
             which it will be
       ...
Objectives (Examples)


   Revenues                  Return on equity

   Profits                   Gross margin

   ...
Critical Issues



 Critical Issues are things that stand in the
way of you achieving your objectives. They
are the barrie...
Critical Issues Should:


               Help the organization
                focus its energy and
                resou...
Critical Issues (Examples)


   Internal communication

   Employee morale

   Sales capabilities

   Research and dev...
Action Plans



Action Plans are the steps you will take to
 resolve or eliminate the Critical Issues.




               ...
Action Plans Should:


             Identify the specific
              actions to be taken

             Identify the i...
Action Plans (Examples)


   Implement regular staff meetings beginning
    first quarter, next year. Responsibility:
   ...
Action Plans (Examples)


   Establish a Research & Development
    Department reporting directly to the President.
    H...
Strategic Plan

                                             CONSTITUENT
             VISION                            GR...
Strategic Plan

                                         CRITICAL ISSUES/              CRITICAL ISSUES/
        ASSUMPTION...
VANTAGE
ASSOCIATES, INC.
 MANAGEMENT CONSULTANTS




            Implementation
Strategic Planning Process

                    MISSION/PURPOSE
                    Define the Business
INTERNAL ANALYSIS ...
Strategic Planning Process

ANNOUNCE TO                  STRATEGIC PLANNING SESSIONS
ORGANIZATION
                        ...
Common Blunders in Business
             Strategy

   Making moves inappropriate to the position
   Building productivit...
Factors Affecting Implementation


   Perceived need           Clear benefits

   Quick results            Understood ...
Some Obstacles to Corporate
               Planning

   Difficult to predict future - i.e., competitive
    moves; new te...
Strategy/Implementation Matrix

                                                                                          ...
Emphasis Changes Over Time


Vision, Mission,
Values, Goals




 Critical Issues,
 Action Plans

                    Year ...
Typical Planning Schedule
                           (January 1 Fiscal Year)

                                 JUN   JUL A...
VANTAGE
ASSOCIATES, INC.
    MANAGEMENT CONSULTANTS




          FUNDAMENTALS OF
                SALESMANSHIP




       ...
THE MYTHOLOGY OF SELLING


   Salespeople are born, not made.

   Good salespeople are good talkers.

   The good sales...
A GOOD SALESPERSON MUST HAVE
 AT LEAST TWO BASIC QUALITIES

          Empathy



          Ego Drive




               ...
SALES PERFORMANCE

                KNOWLEDGE
                 Customer/Industry

                 Product/Service

     ...
WHAT IS SELLING?


   A PROFESSIONAL SALESPERSON:


    – Knowledgeable


    – Motivated to Serve


    – Personal Code ...
WHAT IS SELLING?


   KNOWLEDGE REQUIRED:


    – Product

    – Competition

    – Human Behavior

    – Customers

    ...
JOB OF A SALESPERSON


   Self-Management


   Administration


   Prospecting/Client Development


   Selling


     ...
CHARACTERISTICS OF
    PROFESSIONAL SALESPEOPLE

   Capacity for hard work

   Empathy

   Competitive

   Ability to ...
EFFECTIVE SELLING


   Define the product

   Define the market

   Identify and evaluate the competition

   Set obje...
HELPFUL PERSONALITY TRAITS
             IN SELLING

   Intelligence             Vocabulary

   Social intelligence    ...
NON-TRADITIONAL APPROACHES
      THAT WILL WORK IN THE 90s

   Salespeople must be in front of qualified
    buyers when ...
TO BE A SUCCESSFUL SALESPERSON,
        YOU NEED TO KNOW:

    Your customer and his/her business

    Your competitors ...
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VANTAGE ASSOCIATES, INC. MANAGEMENT CONSULTANTS

  1. 1. VANTAGE ASSOCIATES, INC. MANAGEMENT CONSULTANTS STRATEGIC PLANNING Strategy Structure Vision Systems Culture Transforming Vision Into Action © Vantage Associates, Inc.
  2. 2. VANTAGE ASSOCIATES, INC. MANAGEMENT CONSULTANTS An Introduction to Strategic Planning
  3. 3. Top Management Defined The task of thinking through the mission of the business, that is, of asking the question "What is our business and what should it be?" This leads to the setting of objectives, the development of strategies and plans, and the making of today's decisions for tomorrow's results. Peter Drucker VANTAGE ASSOCIATES, INC. MANAGEMENT CONSULTANTS
  4. 4. Strategy Vs. Planning Strategy = A coherent set of time-sequenced actions aimed at gaining a sustainable advantage over competition and improving position with customers. Planning = The process of making decisions concerning the systematic allocation of resources. VANTAGE ASSOCIATES, INC. MANAGEMENT CONSULTANTS
  5. 5. Strategic Planning If you do what you have always done you will get what you have always got -- or less. VANTAGE ASSOCIATES, INC. MANAGEMENT CONSULTANTS
  6. 6. Definition of Insanity Insanity is doing the same thing over and over again ... each time expecting different results VANTAGE ASSOCIATES, INC. MANAGEMENT CONSULTANTS
  7. 7. Strategic Planning  Planning is a tool for managing the change every organization must undergo  Your planning process should recognize the key ingredients to successfully manage change VANTAGE ASSOCIATES, INC. MANAGEMENT CONSULTANTS
  8. 8. Requirements for Successful Change COMMON 1. You must have a common VISION Vision of what you are changing to and why + MANAGEMENT 2. Employees must see that COMMITMENT Management is committed to achieving the Vision + SPECIFIC 3. You must define the specific steps ACTION STEPS you will take to reach the Vision SUCCESSFUL Only then can you manage change CHANGE successfully VANTAGE ASSOCIATES, INC. MANAGEMENT CONSULTANTS
  9. 9. The Planning Process Should:  Manage change proactively  Improved trust and communications  Effective allocation of limited resources  Improved organizational performance  Increase focus  Provide a catalyst for action VANTAGE ASSOCIATES, INC. MANAGEMENT CONSULTANTS
  10. 10. Our Planning Philosophy  The only purpose of planning is to improve performance.  Planning is an evolutionary process that can be improved with each planning cycle.  Planning is a continuous process, not an activity to be completed in a month or two.  The real value in planning is in the process, not the document.  Uncertainty about the future is the reason for planning, not an excuse for not planning. VANTAGE ASSOCIATES, INC. MANAGEMENT CONSULTANTS
  11. 11. Characteristics of High-Performing Organizations  Leadership  Teamwork  Common  High morale understanding of mission/purpose  Commitment - sense of urgency  Enthusiastic about mission/purpose  Failure and success are viewed as learning  Open communications - experiences up, down, and laterally  High level of trust VANTAGE ASSOCIATES, INC. MANAGEMENT CONSULTANTS
  12. 12. Strategic Planning  The strategic planning process can be effectively used to: – Generate information – Identify issues – Improve communications – Reinforce culture; i.e., teamwork – Identify possible crisis points – Enhance decision making VANTAGE ASSOCIATES, INC. MANAGEMENT CONSULTANTS
  13. 13. Planning is a Part of a Cycle Board/Top Mgmt Input PLANNING Direction Mgr/Employees VANTAGE ASSOCIATES, INC. MANAGEMENT CONSULTANTS
  14. 14. Strategic Planning is a Function and Responsibility of All Managers at All Levels of an Organization TOP MANAGEMENT MID- MANAGEMENT/ SUPERVISION PRODUCTION/ ENTRY LEVEL TACTICAL STRATEGIC VANTAGE ASSOCIATES, INC. MANAGEMENT CONSULTANTS
  15. 15. Three Basic Questions A Strategic Plan answers three basic questions about the organization VANTAGE ASSOCIATES, INC. MANAGEMENT CONSULTANTS
  16. 16. Strategic Planning Process Three Basic Questions Long- PHASE I: Where Do We Want To Go? Term View Situation PHASE II: Where We Are Now? Analysis PHASE III: What We Must Do To Close The Gap? Strategy VANTAGE ASSOCIATES, INC. MANAGEMENT CONSULTANTS
  17. 17. Components of a Strategic Plan  The “Three Questions” are too difficult to answer all at once  Planners break these questions down into small components  These individual components add up to answer the “Three Questions” VANTAGE ASSOCIATES, INC. MANAGEMENT CONSULTANTS
  18. 18. Overview of The Strategic Planning Process PHASE I: Where We Want To Go? Objectives Long- Constituent Vision Mission Values Goals (Short & Long Term Groups Term) View PHASE II: Where We Are Now? Assumptions Strengths Weaknesses Opportunities Threats Situation Analysis PHASE III: What We Must Do To Close The Gap? Key Decisions Action Strategic Critical Issues and Strategies Plans Plan VANTAGE ASSOCIATES, INC. MANAGEMENT CONSULTANTS
  19. 19. The Planning Pyramid VISION MISSION VALUES CONSTITUENTS GOALS ENVIRONMENTAL SCAN ASSUMPTIONS SITUATION ANALYSIS STRENGTHS, WEAKNESSES, THREATS, & OPPORTUNITIES OBJECTIVES (SHORT & LONG TERM)/STRATEGIES CRITICAL ISSUES/KEY DECISIONS VANTAGE ASSOCIATES, INC. MANAGEMENT CONSULTANTS
  20. 20. Evolution of Strategic Management EFFECTIVENESS OF STRATEGIC DECISION MAKING WELL-DEFINED STRATEGIC FRAMEWORK STRATEGICALLY FOCUSED ORGANIZATION THOROUGH SITUATION ANALYSIS AND WIDESPREAD STRATEGIC MULTIYEAR BUDGETS COMPETITIVE THINKING CAPABILITY ASSESSMENTS GAP ANALYSIS COHERENT REINFORCING MANAGEMENT PROCESSES "STATIC" ALLOCATION EVALUATION OF ANNUAL BUDGETS OF RESOURCES - NEGOTIATIONS OF STRATEGIC FUNCTIONAL FOCUS ALTERNATIVES OBJECTIVES - REVIEW OF PROGRESS "DYNAMIC" - INCENTIVES ALLOCATION OF RESOURCES SUPPORTIVE VALUE SYSTEM AND CLIMATE PHASE 1 PHASE 2 PHASE 3 PHASE 4 FINANCIAL PLANNING FORECAST-BASED EXTERNALLY ORIENTED STRATEGIC MANAGEMENT PLANNING PLANNING VALUE SYSTEM MEET BUDGET PREDICT THE FUTURE THINK STRATEGICALLY CREATE THE FUTURE VANTAGE ASSOCIATES, INC. MANAGEMENT CONSULTANTS
  21. 21. VANTAGE ASSOCIATES, INC. MANAGEMENT CONSULTANTS Strategic Analysis
  22. 22. Characteristics of Strategic Decisions  Multiple objectives  Interdisciplinary problems  Difficulty of identifying good alternatives  Several decision makers  Intangibles  Value trade-offs  Long-time horizons  Risk attitude  Many interested factions  Sequential nature of decisions  Risk and uncertainty VANTAGE ASSOCIATES, INC. MANAGEMENT CONSULTANTS
  23. 23. Three Generic Strategies STRATEGIC ADVANTAGE UNIQUENESS PERCEIVED BY THE CUSTOMER LOW COST POSITION STRATEGIC TARGET OVERALL INDUSTRYWIDE DIFFERENTIATION COST LEADERSHIP PARTICULAR SEGMENT ONLY F OCU S VANTAGE ASSOCIATES, INC. MANAGEMENT CONSULTANTS
  24. 24. SALES VOLUME Business Life Cycle EMBRYONIC GROWTH MATURITY DECLINE VANTAGE ASSOCIATES, INC. MANAGEMENT CONSULTANTS
  25. 25. Industry Structure Analysis THREAT OF NEW ENTRANTS COMPETITORS JOCKEYING FOR BARGAINING POSITION BARGAINING POWER OF POWER OF SUPPLIERS CUSTOMERS THREAT OF SUBSTITUTE VANTAGE PRODUCTS OR SERVICES ASSOCIATES, INC. MANAGEMENT CONSULTANTS
  26. 26. Threat of New Entrants  Economies of scale  Product differentiation  Capital requirements  Switching cost  Access to distribution  Non-scale cost advantages VANTAGE ASSOCIATES, INC. MANAGEMENT CONSULTANTS
  27. 27. Power of Suppliers  Relative number of suppliers  Existence of potential substitutes  Importance of the industry to the supplier  Importance of the input to the industry  Differentiation or switching costs  Threat of forward integration VANTAGE ASSOCIATES, INC. MANAGEMENT CONSULTANTS
  28. 28. Power of Customers  Relative size of customer purchases  Importance of the input to the customer  Differentiation or switching costs  Customer profitability or price sensitivity  Importance of quality  Customer information VANTAGE ASSOCIATES, INC. MANAGEMENT CONSULTANTS
  29. 29. Threat of Substitutes  Price performance of alternatives  Technology innovations  Total product concept  Customer perceptions VANTAGE ASSOCIATES, INC. MANAGEMENT CONSULTANTS
  30. 30. Competitive Rivalry  Numerous or equally balanced competitors  Slow industry growth  High fixed or storage costs  Lack of differentiation or switching costs  Capacity added in large increments  Diverse competitors  High strategic stakes  High exit barriers VANTAGE ASSOCIATES, INC. MANAGEMENT CONSULTANTS
  31. 31. VANTAGE ASSOCIATES, INC. MANAGEMENT CONSULTANTS Components of a Plan
  32. 32. The Planning Pyramid VISION MISSION VALUES CONSTITUENTS GOALS ENVIRONMENTAL SCAN ASSUMPTIONS SITUATION ANALYSIS STRENGTHS, WEAKNESSES, THREATS, & OPPORTUNITIES OBJECTIVES (SHORT & LONG TERM)/STRATEGIES CRITICAL ISSUES/KEY DECISIONS VANTAGE ASSOCIATES, INC. MANAGEMENT CONSULTANTS
  33. 33. Vision Statement A Vision Statement is a statement of what the organization would like to be in the future. A vision is not a statement of who we are or what we do, but of what we would like to become. VANTAGE ASSOCIATES, INC. MANAGEMENT CONSULTANTS
  34. 34. A Vision Statement Should:  Inspire the management team  Motivate employees  Focus the organization  Communicate the direction of the organization  Challenge everyone to perform at higher levels  Look beyond the organizations current limitations VANTAGE ASSOCIATES, INC. MANAGEMENT CONSULTANTS
  35. 35. Vision (Examples)  We will be one of the leading producers and marketers of product X in the Southeast.  We will be recognized by our customers as a company that provides superior customer service.  We will exploit our advantage of vertical integration to achieve the lowest cost position and become the dominant supplier in our industry. VANTAGE ASSOCIATES, INC. MANAGEMENT CONSULTANTS
  36. 36. Mission or Purpose Statement A Mission or Purpose Statement is a statement of why the organization exist. What need is it designed to satisfy? Mission and Purpose are the same thing. They are used interchangeably. VANTAGE ASSOCIATES, INC. MANAGEMENT CONSULTANTS
  37. 37. A Mission Statement Should:  Focus on the “now”  Define the product or service provided  Recognize the target market or customer base  Begin to distinguish your organization from others  Recognize current limitations VANTAGE ASSOCIATES, INC. MANAGEMENT CONSULTANTS
  38. 38. Purpose (Examples)  To research, develop, and bring to market products which enhance the leisure time of our customers.  To develop economic alternatives to waste disposal and recycling.  To provide to our customers the full range of hardware and software products and services in a way that maximizes long-term profitability VANTAGE ASSOCIATES, INC. MANAGEMENT CONSULTANTS
  39. 39. Values An organization’s Values are the core beliefs that drive the behaviors of everyone in the organization? Values describe the culture of the organization. Values tell employees what it is like to be a part of the organization. VANTAGE ASSOCIATES, INC. MANAGEMENT CONSULTANTS
  40. 40. A List of Values Should:  Contain a list of five or six core beliefs  Include the values you already share as well as other values you are working to develop  Identify principals that guide your personal and professional life VANTAGE ASSOCIATES, INC. MANAGEMENT CONSULTANTS
  41. 41. Values (Examples)  Excellence in customer service  Financial stability  Personal and business integrity  Professionalism  Teamwork  Trust  Mutual Respect VANTAGE ASSOCIATES, INC. MANAGEMENT CONSULTANTS
  42. 42. Constituents An organization’s Constituents are those individuals or groups that can have a positive or negative impact on your organization? Constituents usually cannot dictate what you do, but they can create problems when they disagree with what you want to do. VANTAGE ASSOCIATES, INC. MANAGEMENT CONSULTANTS
  43. 43. Constituents Should Include:  Groups internal or external to the organization  Groups that are directly or indirectly involved  Groups that want you to success or  Groups that want you to fail VANTAGE ASSOCIATES, INC. MANAGEMENT CONSULTANTS
  44. 44. Constituent Groups (Examples)  Stockholders  Employees  Competitors  Media  Professional/trade associations VANTAGE ASSOCIATES, INC. MANAGEMENT CONSULTANTS
  45. 45. Goals Goals are the things the organization is trying to achieve over the long term. Goals are developed to address specific constituent groups and are enduring and timeless. VANTAGE ASSOCIATES, INC. MANAGEMENT CONSULTANTS
  46. 46. Goals Should:  Address each of the constituent groups already identified  Be unique for each group or the groups can be combined  Define what we are willing to strive for with that Constituent VANTAGE ASSOCIATES, INC. MANAGEMENT CONSULTANTS
  47. 47. Goals (Examples)  We will make sound investment decisions such that we maximize the long-term return to our stockholders.  We will create an environment which challenges our employees and encourages their development.  We will monitor and develop aggressive responses to competitors’ moves. VANTAGE ASSOCIATES, INC. MANAGEMENT CONSULTANTS
  48. 48. Goals (Examples)  We will develop a proactive approach to the media such that it helps us communicate with our customers.  We will participate in trade and professional associations in an effort to shape the structure of the industry. VANTAGE ASSOCIATES, INC. MANAGEMENT CONSULTANTS
  49. 49. Assumptions Assumptions are things that you think will happen but over which you have no direct control. Assumptions are the collective view of the future you are anticipating for your organization. VANTAGE ASSOCIATES, INC. MANAGEMENT CONSULTANTS
  50. 50. Assumptions Should:  Reveal your expectations for the economy, the industry, the market or the need for your product or service  Address important areas of uncertainty even if they must change later  Form a foundation for decisions about organization’s future VANTAGE ASSOCIATES, INC. MANAGEMENT CONSULTANTS
  51. 51. Assumptions (Examples)  The national economy will continue to grow at 2% per year.  The local economy will grow faster than the national economy.  Raw materials will be available at today’s prices.  New and different types of competitors will enter the market. VANTAGE ASSOCIATES, INC. MANAGEMENT CONSULTANTS
  52. 52. Assumptions (Examples)  The technical skills required in the business will be more difficult to find.  New technologies will create new production methods.  The demand for quality will continue to increase. VANTAGE ASSOCIATES, INC. MANAGEMENT CONSULTANTS
  53. 53. Strengths and Weaknesses Strengths and Weaknesses are things that are internal to the organization over which the organization has some control or influence. Strengths are things that are positive. Weaknesses are things that are negative. VANTAGE ASSOCIATES, INC. MANAGEMENT CONSULTANTS
  54. 54. Strengths and Weaknesses Should:  Be significant enough to make a real difference in the long-term success of the organization  Be measured relative to other similar or competitive organizations  Be limited to those things you would be willing to invest in or try to improve over time VANTAGE ASSOCIATES, INC. MANAGEMENT CONSULTANTS
  55. 55. Strengths (Examples)  Customer service  Strong market share  Focus on specific  Wide range of markets products  Financial stability  Technical leadership  Quality employees VANTAGE ASSOCIATES, INC. MANAGEMENT CONSULTANTS
  56. 56. Weaknesses (Examples)  Inexperience in sales  Depth of the management team  Systems and structures not keeping up with growth  Poor internal communications  High employee turnover  High cost structure VANTAGE ASSOCIATES, INC. MANAGEMENT CONSULTANTS
  57. 57. Opportunities and Threats Opportunities and Threats are things that are external to the organization over which the organization has little or no control or influence. Opportunities are things that are positive. Threats are things that are negative. VANTAGE ASSOCIATES, INC. MANAGEMENT CONSULTANTS
  58. 58. Opportunities and Threats Should:  Address the economy, the industry, the marketplace, or the social environment  Include things you might want to take advantage of or things you will want to avoid or manage around  Focus on those things that matter VANTAGE ASSOCIATES, INC. MANAGEMENT CONSULTANTS
  59. 59. Opportunities (Examples)  Rapid change of technology  Deregulation  New product applications  Changing customer tastes  Growing customer base  International markets VANTAGE ASSOCIATES, INC. MANAGEMENT CONSULTANTS
  60. 60. Threats (Examples)  Increasing competition  Modifications to tort reform  Adverse federal initiatives  Increasing environmental concerns  Growing price sensitivity  Aging customer base VANTAGE ASSOCIATES, INC. MANAGEMENT CONSULTANTS
  61. 61. Short and Long-Term Objectives Objectives are things that are measurable and achievable in a specific time frame. Short-Term is usually one year or less. Long-Term is usually three to five years. VANTAGE ASSOCIATES, INC. MANAGEMENT CONSULTANTS
  62. 62. Objectives Should:  Always include a number and a date by which it will be achieved  Usually include both a long-term and a short- term component  Focus on those areas of the organization that are truly measures of success VANTAGE ASSOCIATES, INC. MANAGEMENT CONSULTANTS
  63. 63. Objectives (Examples)  Revenues  Return on equity  Profits  Gross margin  Number of employees  Error rate  Volume of business VANTAGE ASSOCIATES, INC. MANAGEMENT CONSULTANTS
  64. 64. Critical Issues Critical Issues are things that stand in the way of you achieving your objectives. They are the barriers to achieving the success you defined by your Objectives If you have no Critical Issues, your Objectives are set too low. VANTAGE ASSOCIATES, INC. MANAGEMENT CONSULTANTS
  65. 65. Critical Issues Should:  Help the organization focus its energy and resources on the most important areas  Be limited to the vital few items that must be addressed to achieve your objectives  Be identified by referring back to other components of the plan VANTAGE ASSOCIATES, INC. MANAGEMENT CONSULTANTS
  66. 66. Critical Issues (Examples)  Internal communication  Employee morale  Sales capabilities  Research and development  New markets VANTAGE ASSOCIATES, INC. MANAGEMENT CONSULTANTS
  67. 67. Action Plans Action Plans are the steps you will take to resolve or eliminate the Critical Issues. VANTAGE ASSOCIATES, INC. MANAGEMENT CONSULTANTS
  68. 68. Action Plans Should:  Identify the specific actions to be taken  Identify the individual responsible for seeing that the actions are accomplished  Include the time frame or milestones for completing the actions VANTAGE ASSOCIATES, INC. MANAGEMENT CONSULTANTS
  69. 69. Action Plans (Examples)  Implement regular staff meetings beginning first quarter, next year. Responsibility: President  Develop task force to identify employee morale issues and implement programs to improve morale. Responsibility: VP, Human Resources  Identify potential sales seminars and select one for implementation this year. Responsibility: Director of Marketing VANTAGE ASSOCIATES, INC. MANAGEMENT CONSULTANTS
  70. 70. Action Plans (Examples)  Establish a Research & Development Department reporting directly to the President. Hire a Director from outside by second quarter, next year. Responsibility: VP, Engineering  Conduct a market opportunity analysis to be completed by first quarter, next year. Responsibility: Director of Marketing VANTAGE ASSOCIATES, INC. MANAGEMENT CONSULTANTS
  71. 71. Strategic Plan CONSTITUENT VISION GROUPS WEAKNESSES • ____________________________ • ____________________________ • ____________________________ • ____________________________ • ____________________________ • ____________________________ • ____________________________ • ____________________________ MISSION GOALS OPPORTUNITIES • ____________________________ • ____________________________ • ____________________________ • ____________________________ • ____________________________ • ____________________________ • ____________________________ VALUES • ____________________________ • ____________________________ STRENGTHS THREATS • ____________________________ • ____________________________ • ____________________________ • ____________________________ • ____________________________ • ____________________________ • ____________________________ • ____________________________ • ____________________________ • ____________________________ • ____________________________ VANTAGE ASSOCIATES, INC. MANAGEMENT CONSULTANTS
  72. 72. Strategic Plan CRITICAL ISSUES/ CRITICAL ISSUES/ ASSUMPTIONS ACTION PLANS ACTION PLANS (Con’t) •ISSUE: •ISSUE: • ____________________________ _______________________ _______________________ • ____________________________ • ____________________________ •ACTIONS: •ACTIONS: • ____________________________ • _____________________________ • _____________________________ • _____________________________ • _____________________________ • _____________________________ • _____________________________ •RESPON: •RESPON: OBJECTIVES _____________________ _____________________ Short & Long Term •TIMING: ______________________ •TIMING: ______________________ •ISSUE: •ISSUE: 1 YR 5 YR _______________________ _______________________ •Obj1 •ACTIONS: •ACTIONS: • _____________________________ • _____________________________ •Obj2 • _____________________________ • _____________________________ • _____________________________ • _____________________________ •Obj3 •RESPON: •RESPON: •Obj4 _____________________ _____________________ •TIMING: ______________________ •TIMING: ______________________ VANTAGE ASSOCIATES, INC. MANAGEMENT CONSULTANTS
  73. 73. VANTAGE ASSOCIATES, INC. MANAGEMENT CONSULTANTS Implementation
  74. 74. Strategic Planning Process MISSION/PURPOSE Define the Business INTERNAL ANALYSIS Identify the Market EXTERNAL ANALYSIS Strengths Opportunities Weaknesses Threats FORMULATE STRATEGY Set Goals Set Objectives Identify Critical Issues and Key Decisions Define Action Programs Identify Responsibility & VANTAGE Allocate Resources ASSOCIATES, INC. MANAGEMENT CONSULTANTS
  75. 75. Strategic Planning Process ANNOUNCE TO STRATEGIC PLANNING SESSIONS ORGANIZATION WHAT WE MUST WHERE WE WANT WHERE WE DO TO CLOSE TO GO ARE NOW THE GAP CONDUCT RESEARCH #1 #2 #3 VISION STRENGTHS STATEMENT OF ANALYZE MISSION WEAKNESSES STRATEGY DOCUMENT RESEARCH VALUES PLAN OPPORTUNITIES GOALS CRITICAL THREATS ISSUES LONG-TERM OBJECTIVES ASSUMPTIONS COMMUNICATE ACTION PLAN SHORT-TERM DISTINCTIVE PLANS OBJECTIVES COMPETENCE MONITOR PLAN FEEDBACK LOOP VANTAGE ASSOCIATES, INC. MANAGEMENT CONSULTANTS
  76. 76. Common Blunders in Business Strategy  Making moves inappropriate to the position  Building productivity in the wrong way  Underdeveloping strong positions  Underdeveloping weak positions  Going down with the flagship  "Zigzagging"  Joining the other lemmings  Inappropriate turnaround efforts VANTAGE ASSOCIATES, INC. MANAGEMENT CONSULTANTS
  77. 77. Factors Affecting Implementation  Perceived need  Clear benefits  Quick results  Understood concept  Endorsement of line  Manageable tasks managers  Past experience  Commitment of resources  Identified sponsor VANTAGE ASSOCIATES, INC. MANAGEMENT CONSULTANTS
  78. 78. Some Obstacles to Corporate Planning  Difficult to predict future - i.e., competitive moves; new technology  Internal resistance  Requires significant resources  Difficult exercise/hard work  Difficult to achieve common understanding  Requires management and supervisory education VANTAGE ASSOCIATES, INC. MANAGEMENT CONSULTANTS
  79. 79. Strategy/Implementation Matrix STRATEGY IS: APPROPRIATE INAPPROPRIATE SUCCESS: ROULETTE: - ALL THAT CAN BE DONE TO ASSURE - GOOD EXECUTION CAN MITIGATE GOOD SUCCESS HAS BEEN DONE.. POOR STRATEGY, FORCING IMPLEMENTATION IS: MANAGEMENT TO SUCCESS. OR - THE SAME GOOD EXECUTION CAN HASTEN FAILURE. TROUBLE: FAILURE: - POOR EXECUTION HAMPERS GOOD - VERY HARD TO DIAGNOSE, POOR STRATEGY. MANAGEMENT MAY BECAUSE BAD STRATEGY IS NEVER BECOME AWARE OF MASKED BY POOR EXECUTION. STRATEGIC SOUNDNESS BECAUSE OF EXECUTION INADEQUACIES. - EVEN HARDER TO FIX, BECAUSE TWO THINGS ARE WRONG. SOURCE: "THE MARKETING EDGE" BY THOMAS BONOMA VANTAGE ASSOCIATES, INC. MANAGEMENT CONSULTANTS
  80. 80. Emphasis Changes Over Time Vision, Mission, Values, Goals Critical Issues, Action Plans Year One Year Three VANTAGE ASSOCIATES, INC. MANAGEMENT CONSULTANTS
  81. 81. Typical Planning Schedule (January 1 Fiscal Year) JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY • Collect information and conduct preliminary analysis • Identify Strategic Issues • Conduct Strategic Planning Session • Document Output • Communicate the Plan • Develop Company Budgets • Conduct Quarterly Reviews VANTAGE ASSOCIATES, INC. MANAGEMENT CONSULTANTS
  82. 82. VANTAGE ASSOCIATES, INC. MANAGEMENT CONSULTANTS FUNDAMENTALS OF SALESMANSHIP VANTAGE ASSOCIATES, INC. MANAGEMENT CONSULTANTS
  83. 83. THE MYTHOLOGY OF SELLING  Salespeople are born, not made.  Good salespeople are good talkers.  The good salesperson can sell anything.  A good salesperson can sell to any prospect.  The good salesperson never takes no for an answer.  Selling is a bag of tricks.  People don't want to buy. VANTAGE ASSOCIATES, INC.  The get-rich-quick illusion. MANAGEMENT CONSULTANTS
  84. 84. A GOOD SALESPERSON MUST HAVE AT LEAST TWO BASIC QUALITIES  Empathy  Ego Drive VANTAGE ASSOCIATES, INC. MANAGEMENT CONSULTANTS
  85. 85. SALES PERFORMANCE KNOWLEDGE  Customer/Industry  Product/Service  Competition/Market ATTITUDE SKILL  Winner  Planning  Confidence  Presenting  Action  Closing VANTAGE ASSOCIATES, INC. MANAGEMENT CONSULTANTS
  86. 86. WHAT IS SELLING?  A PROFESSIONAL SALESPERSON: – Knowledgeable – Motivated to Serve – Personal Code of Ethics VANTAGE ASSOCIATES, INC. MANAGEMENT CONSULTANTS
  87. 87. WHAT IS SELLING?  KNOWLEDGE REQUIRED: – Product – Competition – Human Behavior – Customers – Buyer - Business, Company, Needs, Plans, Problems, and Buying Motivation VANTAGE ASSOCIATES, INC. MANAGEMENT CONSULTANTS
  88. 88. JOB OF A SALESPERSON  Self-Management  Administration  Prospecting/Client Development  Selling VANTAGE ASSOCIATES, INC. MANAGEMENT CONSULTANTS
  89. 89. CHARACTERISTICS OF PROFESSIONAL SALESPEOPLE  Capacity for hard work  Empathy  Competitive  Ability to live with rejection  Organized  Enthusiastic CAN SELLING BE PRACTICED PROFESSIONALLY?  Integrity VANTAGE ASSOCIATES, INC. MANAGEMENT CONSULTANTS
  90. 90. EFFECTIVE SELLING  Define the product  Define the market  Identify and evaluate the competition  Set objectives/develop a plan  Implement the plan  Evaluate results VANTAGE ASSOCIATES, INC. MANAGEMENT CONSULTANTS  Measure results/refine as required
  91. 91. HELPFUL PERSONALITY TRAITS IN SELLING  Intelligence  Vocabulary  Social intelligence  Imagination and tact  Determination  Dependability  Self-management -  Timing Discipline  Assertiveness  Responsibility VANTAGE ASSOCIATES, INC.  Self-confidence MANAGEMENT CONSULTANTS
  92. 92. NON-TRADITIONAL APPROACHES THAT WILL WORK IN THE 90s  Salespeople must be in front of qualified buyers when the buyer wants to buy.  More selling will occur in the “needs analysis” phase of the sales cycle.  All products and services must be differentiated in the mind of the buyer  Be customer driven VANTAGE  Remember the Four Fs: Be fast, friendly, ASSOCIATES, INC. MANAGEMENT CONSULTANTS
  93. 93. TO BE A SUCCESSFUL SALESPERSON, YOU NEED TO KNOW:  Your customer and his/her business  Your competitors and their products, services, programs, strengths, and weaknesses  Your trade allies and their products, services, programs, strengths, and weaknesses EVALUATE AND TAKE ACTION!  Your company and its policies VANTAGE ASSOCIATES, INC. MANAGEMENT CONSULTANTS

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