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Developing A Strategic Business Plan


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This is a great toolbox of slides for putting together a strategic planning or business planning presentation - either in businesses or as a consultant. It took ages to collect this all and put in one place.

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Developing A Strategic Business Plan

  2. 2. Strategic Planning …is the managerial process of developing and maintaining a strategic fit between the organization's objectives and resources and its changing market opportunities. Resources Strategic Fit Org Objectives Changing Environment
  3. 3. The Role of Strategy Strategy: Corporate •Corporate Operating Mission & •Business Plans Objectives •Functional
  4. 4. Vision and Strategy
  5. 5. Sun Tze on Strategy “Know your enemy, know yourself, and  your victory will not be threatened. Know the terrain, know the weather, and your victory will be complete.”
  6. 6. Strategic Marketing ―Marketing Strategy is a series of integrated actions leading to a sustainable competitive advantage.” John Scully
  7. 7. Corporate Mission Broad purposes of the organization   General criteria for assessing the long-term organizational effectiveness  Driven by heritage & environment  Mission statements are increasingly being developed at the SBU level as well
  8. 8. Examples of Corporate Mission SINGAPORE AIRLINES is engaged in air transportation and related businesses. It operates world-wide as the flag carrier of the Republic of Singapore, aiming to provide services of the highest quality at reasonable prices for customers and a profit for the company
  9. 9. Examples of Corporate Mission (cont’d) MARRIOTT’S Mission Statement: We are committed to being the best lodging and food service company in the world, by treating employees in ways that create extraordinary customer service and shareholder value
  10. 10. Corporate Culture The most abstract level of managerial  thinking  How do you define culture?  What is the significance of culture to an organization?  How does marketing affect culture in the organization?
  11. 11. Corporate Objectives & Goals An objective is a long-range purpose  ◦ Not quantified and not limited to a time period ◦ E.g. increasing the return on shareholders’ equity A goal is a measurable objective of the  business ◦ Attainable at some specific future date through planned actions ◦ E.g. 10% growth in the next two years
  12. 12. Strategic planning Goals / Objectives SWOT Analysis Strategy Implementation Measurement and Evaluation
  13. 13. STRATEGIC PLAN DEVELOPMENT Environmental and internal assessment Strategic definition and implications • What are the major • What strategy will you Industry Strategy changes in industry pursue over the next 3 dynamics and articulation dynamics and years? implications resulting opportunities and risks? + + • What are your • What will be the impact of Competitive Strategic competitive strengths major strategic initiatives? assessment initiatives and weaknesses? + + • How does your current • What are the expected Internal Financial business emphasis fit financial returns of your assessment projections with industry strategy? opportunity and competitive + landscape? • What strategic alternatives Risk/contingen- have you considered? cies & strategic alternatives
  14. 14. The Usual Business Planning Hierarchy Vision Mission Objectives Strategies Tactics Plans
  15. 15. Strategic Planning – Many Sub Plans Vision Mission Objectives Strategies Tactics Plans Objectives Strategies Tactics Plans Objectives Strategies Tactics Plans
  16. 16. Framework of a Successful Organisation
  17. 17. Business Planning and Delivery Strategic Plan New Information Business Plan Feed Back Regional or Sales & Industry Marketing Sales Plan Plan State Sales Plans
  18. 18. Vision is a Critical Driver To succeed in the long  term, our business VISION needs a vision of how we will change and Consistently Provides future improve in the future. followed and direction measured ―without a vision, the  people perish‖ The vision of the  business gives its energy. Expresses a Must be fully consumer ◦ It helps motivate us. communicated benefit ◦ It helps set the direction of corporate and marketing strategy. Is motivating Is realistic
  19. 19. Values underpin all we do Values form the foundation of a business’ management style. Values provide the justification of behaviour and, therefore, exert significant influence on  marketing decisions. An example is provided by BT Group - defining its values: BT's activities are underpinned by a set of values that all BT people are asked to  respect: ◦ We put customers first ◦ We are professional ◦ We respect each other ◦ We work as one team ◦ We are committed to continuous improvement. These are supported by our vision of a communications-rich world - a world in which  everyone can benefit from the power of communication skills and technology. A society in which individuals, organisations and communities have unlimited access to  one another and to a world of knowledge, via a multiplicity of communications technologies including voice, data, mobile, internet - regardless of nationality, culture, class or education. Our job is to facilitate effective communication, irrespective of geography, distance, time  or complexity. Source: BT Group plc website
  20. 20. Has the Company got a strong Clear Mission? The Business Mission  is important to our PURPOSE – why sales & marketing the business exists planning It provides an outline of  how the marketing plan should seek to fulfil the mission STRATEGY & VALUES & SCOPE – what CULTURE – what It provides a means of  business are we in management evaluating and screening and how? believes in the marketing plan; are marketing decisions consistent with the mission? STANDARDS & It provides an incentive to  BEHAVIOUR – the rules that guide implement the marketing how we operate plan
  21. 21. quot;Strategy is the direction and scope of an organisation over the long-term: which achieves advantage for the organisation through its configuration of resources within a challenging environment, to meet the needs of markets and to fulfil stakeholder expectationsquot;.
  22. 22. Strategic Audit - ensuring that the Company resources and competencies are understood and evaluated Resource Audit Value Chain Analysis Core Competence Analysis Performance Analysis Portfolio Analysis SWOT / PEST Analysis
  23. 23. Need to work within Company Resources & Constraints Financial • Existing Funds • New Funds Physical • Production • Marketing • Sales • R&D & Technical • Information Technology Human • Existing Staff • Future Staff Requirements • Training & Development Intangible • Goodwill • Reputation • Brands • Intellectual Property
  24. 24. Objectives - Corporate & Functional • Examples might include: Corporate • We aim for a return on investment of at least 15% • We aim to achieve an operating profit of over $10 million on sales of at least $100 million These are objectives that • We aim to increase earnings per share by at concern the business or least 10% every year for the foreseeable future organisation as a whole • Examples might include: • We aim to build customer database of at least Functional 250,000 households within the next 12 months • We aim to achieve a market share of 10% • We aim to achieve 75% customer awareness of Specific objectives for sales & our brand in our target markets • We aim to sell $2m of xyz product into ABC marketing activities market over the next 6 months
  25. 25. Value Chain Analysis Value Chain Analysis describes the activities that take place in a business and  relates them to an analysis of the competitive strength of the business. Michael Porter suggested that the activities of a business could be grouped under  two headings: 1. Primary Activities - those that are directly concerned with creating and delivering a product (e.g. component assembly); and 2. Support Activities, which whilst they are not directly involved in production, may increase effectiveness or efficiency (e.g. human resource management). It is rare for a business to undertake all primary and support activities. Value Chain Analysis is one way of identifying which activities are best undertaken  by our business and which are best provided by others (quot;outsourcedquot;). Linking Value Chain Analysis to Competitive Advantage  What activities a business undertakes is directly linked to achieving competitive  advantage. For example, if we wish to outperform our competitors through differentiating  ourselves through higher quality then we will have to perform our value chain activities better than the opposition. But if we adopt a strategy based on seeking cost leadership this will require a  reduction in the costs associated with the value chain activities, or a reduction in the total amount of resources used.
  26. 26. Primary Activities Primary value chain activities include: Primary Description Activity Inbound All those activities concerned with receiving and storing externally sourced logistics materials Operations The manufacture of products and services - the way in which resource inputs (e.g. materials) are converted to outputs (e.g. products) Outbound All those activities associated with getting finished goods and services to buyers logistics Marketing and Essentially an information activity - informing buyers and consumers about sales products and services (benefits, use, price etc.) Service All those activities associated with maintaining product performance after the product has been sold
  27. 27. Support Activities Support activities include: Secondary Description Activity Procurement This concerns how resources are acquired for a business (e.g. sourcing and negotiating with materials suppliers) Human Resource Those activities concerned with recruiting, developing, motivating and Management rewarding the workforce of a business Technology Activities concerned with managing information processing and the Development development and protection of quot;knowledgequot; in a business Infrastructure Concerned with a wide range of support systems and functions such as finance, planning, quality control and general senior management
  28. 28. Steps in a Value Chain Analysis Break down a market / organisation into its key activities Assess the potential for adding value via cost advantage or differentiation, or identify current activities where a business appears to be at a competitive disadvantage; Determine strategies built around focusing on activities where competitive advantage can be sustained
  29. 29. Core competencies Core competencies are those capabilities that are critical to a business  achieving competitive advantage. The starting point for analysing core competencies is recognising that  competition between businesses is as much a race for competence mastery as it is for market position and market power. Senior management cannot focus on all activities of a business and the  competencies required to undertake them. So the goal is for management to focus attention on competencies that really  affect competitive advantage. Core Competencies are not seen as being fixed. Core Competencies should  change in response to changes in the company's environment. They are flexible and evolve over time. As a business evolves and adapts to new circumstances and opportunities, so its Core Competencies will have to adapt and change. We need to understand what we are good and what makes us better and to  hone these advantages and to develop new ones to underpin the business strategy
  30. 30. Identifying Core Competencies Prahalad and Hamel suggest three factors to help identify core competencies in any business: What does the Core Competence Comments Achieve? Provides potential The key core competencies are those that enable the creation of new access to a wide products and services. variety of markets Makes a significant Core competencies are the skills that enable a business to deliver a contribution to the fundamental customer benefit - in other words: what is it that causes perceived customer customers to choose one product over another? To identify core benefits of the end competencies in a particular market, ask questions such as quot;why is the product customer willing to pay more or less for one product or service than another?quot; quot;What is a customer actually paying for? Difficult for A core competence should be quot;competitively uniquequot;: In many competitors to industries, most skills can be considered a prerequisite for participation imitate and do not provide any significant competitor differentiation. To qualify as quot;corequot;, a competence should be something that other competitors wish they had within their own business.
  31. 31. What is Competitive Advantage? “Competitive advantage is a  company’s ability to perform in one or more ways that competitors cannot or will not match.” Philip Kotler “If you don’t have a competitive  advantage, don’t compete.” Jack Welch, GE
  32. 32. Four Generic Strategies Lower Cost Differentiation Broad Cost Target Differentiation Leadership Scope Differentiation Cost Focus Narrow Focus Target
  33. 33. Other Characteristics of Competitive Advantage Substantiality  ◦ Is it substantial enough to make a difference? Sustainability  ◦ Can it be neutralized by competitors quickly? Ability to be leveraged into visible  business attributes that will influence customers (Source: Strategic Marketing Management, Aakers)
  34. 34. Seeking Competitive Advantages Positions of advantage  ◦ Superior customer value ◦ Lower relative total cost Performance advantages  ◦ Customer satisfaction, Loyalty, Market Share, Profit Sources of advantages  ◦ Superior skills & knowledge, Superior resources, Superior business process
  35. 35. WHERE TO COMPETE? Target customers and segments • Which customers are you trying to target or attract? • Which are you willing to serve, but will not spend resources to attract? • Which would you prefer not to serve? Customers Geographical scope of business activities How does the entity • Geographic limits to the reach its target business? Geographic customers • Local, regional, multi- Channels • Which distribution channels markets local, national, will you use? international, or global • What customer segments player? can they reach? • If local, which localities? Products Quality and breadth of the product line • Breadth of the product line? • Quality of the product line? • Product bundles or a series of unrelated products?
  36. 36. Capability platform: assessment of sources of competitive advantage (1/2) Example • BHP’s low-cost mines Physical asset • Telecomm/media company with rights Location/quot;spacequot; radio spectrum Privileged assets • Avon’s representatives Distribution/sales network • Coca-Cola Brand/reputation • Pharmaceutical company with a quot;wonder Patent Necessary drug‖ capabilities in order to • quot;Favored nationquot; status with a key Relationship with quot;licensequot; succeed in allocator minister in liberalizing economy the industry • 3M with new products Innovation • McDonald’s with QSC&V Cross-functional Distinctive coordination competencies • J&J with branded consumer health products Market positioning • Emerson Electric’s Best Cost Producer Cost/efficiency program management • P&G brand management program Talent development
  37. 37. Extremely relevant Capability platform: assessment of Somewhat relevant sources of competitive advantage (2/2) Irrelevant Segments BU Overall A B C Physical asset Location/quot;spacequot; Privileged assets Distribution/sales network Brand/reputation Necessary Patent capabilities in order to Relationship with quot;licensequot; succeed in the allocator industry Innovation Cross-functional coordination Distinctive competencies Market positioning Cost/efficiency management Talent development Step 2: Assess your overall position relative to Step 1: Ensure that these are the the capabilities required to succeed in the industry. capabilities required to succeed in the Also, determine if these capabilities are relevant to industry. Use this list as a thought the segments you serve starter, add and delete as you see appropriate
  38. 38. Competitor capability comparison Competitors BU Overall A B C • Physical asset • Location/quot;spacequot; Privileged • assets Distribution/sales network • Brand/reputation Necessary Patent capabilities in order to Relationship with quot;licensequot; succeed in allocator the Innovation industry Cross-functional coordination Distinctive competencies Market positioning Cost/efficiency management Talent development Step 3: Compare the strengths and weaknesses of your competitive position vs. the necessary skills
  39. 39. Porter’s 5 Forces of Competitive Position Diagram New Market Entrants Supplier Competitive Buyer Power Power Rivalry Product & Technology Development
  40. 40. Porter 5 Forces
  41. 41. Porter’s 5 Forces of Competitive Position version #2
  42. 42. Porter’s 5 Forces of Competitive Position #3 Entry Barriers Economies of Scale Brand Identity Rivalry Determinants Capital Requirements Industry Growth Fixed Costs New Product Differences Entrants Determinants of Supplier Power Brand Identity Switching Costs Exit Barriers Supplier Volume Impact Forward Integration Industry Competitors Suppliers Buyers Intensity of Rivalry Determinants of Buyer Power Buyer Concentration Determinants of Buyer Volume Substitution Threat Backward Integration Relative Price Performance Substitutes Switching Costs
  43. 43. Forces at work framework 2. Determinants of barriers to entry 1. Determinants of supplier power • Economies of scale • Differentiation of inputs • Proprietary product differences • Switching costs of suppliers and firms in the • Brand identity industry • Switching costs • Presence of substitute inputs • Capital requirements • Supplier concentration • Access to distribution • Importance of volume to supplier • Absolute cost advantages • Cost relative to total purchases in the industry 2. New entrants – Proprietary learning curve • Impact of inputs on cost or differentiation – Access to necessary inputs • Threat of forward integration relative to threat – Proprietary, low-cost product design of backward integration by firms in the industry • Government policy 5. Industry competitors • Expected retaliation 1. Suppliers 3. Buyers Intensity of rivalry 3. Determinants of buying power • Bargaining leverage 5. Rivalry determinants – Buyer concentration vs. firm • Industry growth • Fixed (or storage) cost/value added concentration 4. Substitutes – Buyer volume • Intermittent overcapacity – Buyer switching costs relative to firm • Product differences • Brand identity switching costs 4. Determinants of – Buyer information • Switching costs substitution threat – Ability to backward integrate • Concentration and balance • Relative price performance of – Substitute products • Informational complexity substitutes – Pull-through • Diversity of competitors • Switching costs • Price sensitivity • Corporate stakes • Buyer propensity to substitute – Price/total purchases • Exit barriers – Product differences – Brand Identity – Impact on quality perception – Buyer profits – Decision makers' incentives
  44. 44. Ninety ways to measure demand (6 x 5 x 3) World Geographical Level Region Country Territory Client Total sales Sector sales Company’s sales Product Product lines Level Product config Product items Short Medium Long term term term Timing Level
  45. 45. Strategic Planning Link with Marketing Planning Businesses that succeed do so by creating and keeping customers.  They do this by providing better value for the customer than the competition.  Marketing management constantly have to assess which customers they are  trying to reach and how they can design products and services that provide better value (―competitive advantage‖). The main problem with this process is that the ―environment‖ in which  businesses operate is constantly changing. So a business must adapt to reflect changes in the environment and make  decisions about how to change the marketing mix in order to succeed. This process of adapting and decision-making is known as marketing  planning. Key Strategic Business Marketing Regional Industry Account Sales Plan State Plan Plan Plan Plan Plan Plan Plan
  46. 46. Strategic vs. Marketing Plans Strategic planning is concerned about the overall direction of the  business. ◦ It is concerned with marketing, of course. ◦ But it also involves decision-making about production and operations, finance, human resource management and other business issues. The objective of a strategic plan is to set the direction of a  business and create its shape so that the products and services it provides meet the overall business objectives. Marketing has a key role to play in strategic planning, because it is  the job of marketing management to understand and manage the links between the business and the ―environment‖. Sometimes this is quite a straightforward task. ◦ For example, in many small businesses there is only one geographical market and a limited number of products (perhaps only one product!). ◦ However, consider the challenge faced by marketing management in a multinational business, with hundreds of business units located around the globe, producing a wide range of products. ◦ Keeping control of marketing decision-making in such a complex situation calls for well-organised marketing planning.
  47. 47. Key issues in strategic and marketing planning? The following questions are key in the marketing and strategic  planning process: ◦ Where are we now? ◦ How did we get there? ◦ Where are we heading? ◦ Where would we like to be? ◦ How do we get there? ◦ Are we on course? A marketing plan helps to:  ◦ The ability of a business to achieve profitable sales is impacted by dozens of environmental factors, many of which are inter-connected ◦ Identify sources of competitive advantage ◦ Gain commitment to a strategy ◦ Get resources needed to invest in and build the business ◦ Inform stakeholders in the business ◦ Set objectives and strategies ◦ Measure performance
  48. 48. Situation Analysis Internal Analysis—company; capability etc.  External Analysis—customers, market  definition, industry structure SWOT Analysis  ◦ Strengths, Weaknesses, Opportunities & Threats ◦ Identify & prioritize major problems and opportunities: selection of key issues Based on the firm’s core  competencies, decide on future options
  49. 49. SWOT Internal Environment Strengths Weaknesses World class product Technical support Financial resources Internal processes Know-how Channels network External Environment Opportunities Threats Water & Energy crises Competitors market share Environment awareness Euro X Dollar Productivity improvement Technology development
  50. 50. SWOT ANALYSIS Opportunities/Threats • How are demand and supply expected to NEUTRALIZE evolve? THREATS • How do you expect the industry chain economics to evolve? • What are the potential major industry discontinuities? YOUR • What competitor BUILD ON CONVERT BUSINESS actions do you expect? STRENGTHS OPPORTUNITIES Strengths/ Weaknesses • What are your BU’s Surfaces potential assets/competencies ADDRESS opportunities/threats arising that solidify your WEAK- from factors external to the competitive position? NESSES business • What are your BU’s assets/competencies that weaken your competitive position? Can be used as a thought starter for competitive analysis and internal assessment
  51. 51. SWOT Analysis is still a useful Tool
  52. 52. TOWS matrix Strengths Weaknesses Opportunities S-O strategies W-O strategies Threats S-T strategies W-T strategies S-O strategies pursue opportunities that are a good fit to the companies strengths. W-O strategies overcome weaknesses to pursue opportunities. S-T strategies identify ways that the firm can use its strengths to reduce its vulnerability to external threats. W-T strategies establish a defensive plan to prevent the firm's weaknesses from making it highly susceptible to external threats.
  53. 53. PEST analysis A scan of the external macro-  environment in which the company wants to operate (or operates) and can be expressed in terms of the following factors: ◦ Political ◦ Economic ◦ Social ◦ Technological
  54. 54. PEST Analysis - market, business, proposition, etc. POLITICAL ECONOMIC • • ecological/environmental issues home economy situation • • current legislation home market home economy trends • • future legislation overseas economies and trends • • European/international legislation general taxation issues • • regulatory bodies and processes taxation specific to product/services • • government policies seasonality/weather issues • • government term and change market and trade cycles • • trading policies specific industry factors • • funding, grants and initiatives market routes and distribution trends • • home market lobbying/pressure groups customer/end-user drivers • • international pressure groups interest and exchange rates • • wars and conflict international trade/monetary issues SOCIAL TECHNOLOGICAL • • lifestyle trends competing technology development • • demographics research funding • • consumer attitudes and opinions associated/dependent technologies • • media views replacement technology/solutions • • law changes affecting social factors maturity of technology • • brand, company, technology image manufacturing maturity and capacity • • consumer buying patterns information and communications • • fashion and role models consumer buying mechanisms/technology • • major events and influences technology legislation • • buying access and trends innovation potential • • ethnic/religious factors technology access, licencing, patents • • advertising and publicity intellectual property issues • • ethical issues global communications
  55. 55. PEST or SWOT A PEST analysis most commonly measures a market; a  SWOT analysis measures a business unit, a proposition or idea. Generally speaking a SWOT analysis measures a business  unit or proposition, whereas a PEST analysis measures the market potential and situation, particularly indicating growth or decline, and thereby market attractiveness, business potential, and suitability of access - market potential and 'fit' in other words. PEST analysis uses four perspectives, which give a logical  structure, in this case organized by the PEST format, that helps understanding, presentation, discussion and decision- making. PEST analysis can be used for marketing and business  development assessment and decision-making, and the PEST template encourages proactive thinking, rather than relying on habitual or instinctive reactions.
  56. 56. Structure-conduct-performance (SCP) model Industry Producers External S C P tructure onduct erformance shocks Feedback • Technology Economics of demand Marketing Finance • Availability of substitutes • Pricing • Profitability breakthroughs • Changes in • Differentiability of products • Volume • Value creation • Rate of growth • Advertising/promotion government Technological progress • Volatility/cyclicality • New products/R&D policy/regulations Employment objectives – Domestic • Distribution Economics of supply – International • Concentration of producers Capacity change • Import competition • Expansion/contraction • Diversity of producers • Entry/exit • Fixed/variable cost structure • Acquisition/merger/ divestiture • Capacity utilization Vertical integration • Entry/exit barriers • Forward/backward integration • Vertical joint ventures Industry chain economics • Bargaining power of input • Long-term contracts suppliers Internal efficiency • Bargaining power of customers • Cost control • Logistics • Process R&D • Organization effectiveness
  57. 57. Definition of risks Definition • Risk of loss due to changes in industry and competitive Business risk environment, as well as shifts in customer preferences • Risk due to changes in regulatory environment (e.g. Regulatory risk deregulation) • Risk due to major changes in technology Technology risk • Risk of failures due to business processes and Integrity risk operations or people’s behavior, either intentional (e.g. fraud) or unintentional (e.g. errors) • Risk of loss due to changes in the political, social, or Macroeconomic economic environments risk
  58. 58. Management Management, control and evaluation 
  59. 59. Five disciplines – Peter Senge Personal Mastery:  ◦ Aspiration involves formulating a coherent picture of the results people most desire to gain as individuals, alongside a realistic assessment of the current state of their lives today. ◦ Learning to cultivate the tension between vision and reality can expand people's capacity to make better choices, and to achieve more of the results that they have chosen. Mental Models:  ◦ Reflection and inquiry skills is focused around developing awareness of the attitudes and perceptions that influence thought and interaction. ◦ By continually reflecting upon, talking about, and reconsidering these internal pictures of the world, people can gain more capability in governing their actions and decisions.
  60. 60. Five disciplines – Peter Senge Shared Vision:  ◦ Establishes a focus on mutual purpose. ◦ People learn to nourish a sense of commitment in a group or organization by developing shared images of the future they seek to create, and the principles and guiding practices by which they hope to get there. Team Learning:  ◦ Group interaction. ◦ Through techniques like dialogue and skillful discussion, teams transform their collective thinking, learning to mobilize their energies and actions to achieve common goals, and drawing forth an intelligence and ability greater than the sum of individual members' talents.
  61. 61. Five disciplines – Peter Senge Systems Thinking:  ◦ People learn to better understand interdependency and change, and thereby to deal more effectively with the forces that shape the consequences of our actions. ◦ Systems thinking is based upon a growing body of theory about the behavior of feedback and complexity - the innate tendencies of a system that lead to growth or stability over time. ◦ To help people see how to change systems more effectively and how to act more in tune with the larger processes of the natural and economic world.
  62. 62. Project management - processes
  63. 63. Project management – a process
  64. 64. Project management – process chain
  65. 65. Project management – risk analysis
  66. 66. Success Keys - Deployment Deployment - Completing the Plan Success Failure >Assign roles and responsibilities >No accountability for deployment >Establish priorities >Too many goals, strategies, or objectives - no apparent priority >Involve mid-level management as >Plan in a vacuum-functional focus active participants >Think it through - decide how to >No overall strategy to implement manage implementation >Charge mid-level management with >Make no attempt to link with day-to-day aligning lower-level plans operations >Make careful choices about the >Not being thorough-glossing over the contents of the plan and form it will details take
  67. 67. Success Keys - Communication Deployment - Communicating Success Failure Assign roles and responsibilities No accountability Communicate the plan constantly Never talk about the plan and consistently Recognize the change process Ignore the emotional impact of change Help people through the change process Focus only on task accomplishment
  68. 68. Success Keys - Implementation Implementing - I Success Failure Assign roles and responsibilities No accountability Involve senior leaders Disengagement from process Define an infrastructure Unmanaged activity Link goal groups Fragmented accomplishment of objectives leads to sub-optimization Phase integration of Force people to choose between implementation implementation and daily work; too actions with workload many teams Involve everyone within the No alignment of strategies organization
  69. 69. Success Keys - Implementation Implementing - II Success Failure Allocate resources for Focus only on short term need for implementation resources Ignore or avoid change Manage the change process No measurement system Evaluate results Hide mistakes/lay blame; Share lessons learned; limited/no communication acknowledge successes through open and frequent communication
  70. 70. Success Keys - Measurement Strategic Measurement - I Success Failure Assign roles and responsibilities No accountability Use measurement to understand Sub-optimization: focus only on the organization efficiencies Use measurement to provide a Use measures that provide no real consistent viewpoint from which to information on performance; use gauge performance too many measures Use measurement to provide an Use measurement to focus on the integrated, focused view of the bottom-line only future
  71. 71. Success Keys - Measurement Strategic Measurement - II Success Failure Use measurement to communicate Use measurement to control policy (new strategic direction) Update the measurement system Never review measures Use measurement to provide Fail to use measurement to make quality feedback to the strategic strategic, fact-based decisions; use management process only for control
  72. 72. Success Keys - Evaluation Evaluation Success Failure Assign roles and responsibilities No accountability Recognize when to update the plan Poor timing and not recognizing external forces Modify strategic planning process to Rigid application of strategic accommodate the more mature planning process; ignore lessons organization learned from previous efforts Ignore impact of new leaders Incorporate new leaders into the strategic planning process Don't use measurement Integrate measurement with strategic information planning Shortcut the process Use experienced strategic planning facilitators
  73. 73. Best Companies Spend more time on Forward Planning than Historical Analysis Achieving Agility Through a New Approach to Forecasting In today’s turbulent economy, rolling forecasts are proving to be an important new tool in changing the way budgeting and planning has traditionally been handled. Mary Brandel
  74. 74. Benefits of Rolling Forecasts