Strategic Planning


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Strategic Planning

  1. 1. STRATEGIC PLANNINGNOW MORE THAN EVER<br />Presented by:<br />K. Eugene Thurston<br />Source Capital & Consulting, LLC<br />1<br />
  2. 2. Corporate america today<br />Increased Government Intrusion<br />Demands of Wall Street<br />Greedy Executives <br />Generational Conflicts<br />Offshore Competition<br />Political Conflicts<br />Energy Crisis<br />Climate Change<br />Economic Recession<br />2<br />
  3. 3. Effects on small business<br />Financing/Credit<br />Sales<br />Collections<br />Health care cost<br />Limited exports<br />I AIN’T GOT NO BUSINESS DOING BUSINESS TODAY – Alabama<br />3<br />
  4. 4. Types of Plans <br />Daily Plan<br />Operating Plan including Budgets<br />Business Plan<br />Financing Plan<br />Profit Sharing Plan<br />Succession Plan<br />Exit Plan<br />Strategic Plan<br />4<br />
  5. 5. Strategic planning <br />Research has shown that strategic thinking and planning have a strong impact on the financial performance of Small and Medium Enterprises (SMEs).<br />The failure in small businesses often relates to an overall lack of strategic management skills and abilities.<br />5<br />
  6. 6. What is strategic planning?<br />An Organization’s Process of:<br />Defining its strategy or direction.<br />Making decisions on allocation of resources to pursue the strategy.<br />A Formal Action plan that is taken to attain one or more results.<br />6<br />
  7. 7. Another definition of strategic planning<br />Strategic Planning is a management tool that helps an organization focus its energy, to ensure that members of the organization are working toward the same goals, to assess and adjust the organization&apos;s direction in response to a changing environment. <br />7<br />
  8. 8. Another definition <br />In short, strategic planning is a disciplined effort to produce fundamental decisions and actions that shape and guide what an organization is, what it does, and why it does it, with a focus on the future. (Adapted from Bryson&apos;s Strategic Planning in Public and Nonprofit Organizations)<br />8<br />
  9. 9. Elements to the strategic planning process<br />Identification of the Core Values<br />Definition of Who we are<br />Definition of what we do best<br />Identification of who is the customer<br />Determination of what the customer expects<br />SWOT Analysis<br />Vision Statement<br />Mission Statement<br />Setting of Goals and Expectations<br />9<br />
  10. 10. The Core values <br />Integrity<br />Customers<br />Employees<br />Profit<br />Growth <br />Community<br />Management<br />The Core Values Define Who We Are<br />10<br />
  11. 11. What business are we in?<br />What do we do best?<br />Federal Express<br />What need to we meet?<br />The Window Shade<br />Whose need to we meet?<br />The Resort in Florida<br />11<br />
  12. 12. Airplanes<br />What do airplanes do best?<br />What needs do airplanes meet?<br />Whose needs do airplanes meet?<br />United Airlines<br />Southwest Airlines<br />Federal Express<br />12<br />
  13. 13. Who is the Customer<br />Is it the Name on the Sales Invoice?<br />Is it the Purchasing Agent?<br />Assisted Living<br />Teenagers<br />Amusement Park<br />WHO REALLY IS YOUR CUSTOMER?<br />13<br />
  14. 14. What is it that the customer expects?<br />Quality?<br />Timeliness of Delivery?<br />Price?<br />Warranty?<br />14<br />
  15. 15. Swot analysis<br />Strengths – Internal <br />Weaknesses – Internal<br />Opportunities – External<br />Threats – External<br />How can a Strength also be a Weakness?<br />15<br />
  16. 16. Where do you want to go?<br />What alternatives are available?<br />Consider the critical issues: <br />Growth<br />Profitability<br />New Markets<br />New Products<br />Financing<br />Personnel<br />Plant and Equipment<br />16<br />
  17. 17. How do we get there? <br />Who will be responsible for each course of action?<br />What time frames should we have?<br />What are the significant barriers to overcome?<br />What will it cost?<br />17<br />
  18. 18. How do we know when we are there?<br />Where performance is measured, performance improves. Where performance is measured and reported, the rate of improvement accelerates.<br /> – Thomas S. Monson<br />Visualize the end result. What will it look like?<br />Quantify your objectives.<br />Establish controls to measure performance.<br />18<br />
  19. 19. Pulling it all together<br />Where are you today?<br />How do you modify your core values to where your stated and perceived values are consistent?<br />Where do you need to be?<br />How can you use the Strengths and Opportunities and overcome the Weaknesses and the Threats to get you to that destination?<br />19<br />