Effective Strategic Planning

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Presentation on Strategic Planning. Takes some examples from Panbio during transformation to profit. Some elements developed from work of Bruce Peatey.

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Effective Strategic Planning

  1. 1. Strategic Planning Stuart Hazell PhD MASM GAICD Fusidium Pty Ltd
  2. 2. Strategic Planning <ul><li>The Chairman will be coming on the first day to provide a few words of inspiration. </li></ul><ul><li>We have hired a good facilitator and this will be a fun weekend that will show us the way forward for the next year. </li></ul><ul><li>After the weekend we have a week to write up a document for the Board meeting. </li></ul>We’re all going away for a weekend to the Sunshine Coast to do our strategic plan.
  3. 3. Strategic Groan <ul><li>Love fest </li></ul><ul><li>Glossy document full of self-serving motherhood statements </li></ul><ul><li>Ends up in the bottom drawer </li></ul>
  4. 4. Is Strategic Planning important?
  5. 5. Is Effective Strategic Planning important?
  6. 6. Panbio’s Performance 2002 - 2007
  7. 7. Panbio’s Performance 2002 - 2007
  8. 8. If Strategic Planning is so important why is it done so badly?
  9. 9. Overview <ul><li>Vision </li></ul><ul><li>Mission </li></ul><ul><li>The Strategic Plan </li></ul><ul><li>Operational Plans </li></ul><ul><li>Staff Action and Development Plans </li></ul>
  10. 10. Vision “ We shall not flag or fail. We shall go on to the end. We shall fight in France. We shall fight on the seas and oceans. We shall fight with growing strength in the air. We shall defend our island, whatever the cost may be. We shall fight on the beaches. We shall fight on the landing grounds. We shall fight in the fields and in the streets. We shall fight in the hills. We shall never surrender.”
  11. 11. Mission <ul><li>&quot;I believe that this nation should commit itself to achieving the goal, before this decade is out, of landing a man on the moon and returning him safely to the Earth.&quot; </li></ul><ul><li>Robert F Kennedy </li></ul>
  12. 12. Mission Landing a man on the moon and returning him safely to the Earth.
  13. 13. Strategic Plan <ul><li>The Vision and the Mission frame the Strategic Planning process; however, the outcome of the Strategic Planning may change the Vision and Mission. </li></ul><ul><li>Strategic Planning is hard work, which only pays off when you get it right. </li></ul>
  14. 14. Developing a Strategic Plan <ul><li>A Strategic Plan is an Outward Looking Document </li></ul><ul><li>Linked to those who will determine your success – your Strategic Partners </li></ul><ul><li>Note: your Strategic Partner may not be on your side! </li></ul>
  15. 15. Strategic Plan <ul><li>Long horizon </li></ul><ul><li>On the desktop with total buy-in </li></ul><ul><li>Measured and reported on </li></ul><ul><li>Reviewed regularly </li></ul><ul><li>Linked down to operational plans </li></ul><ul><li>Realistic and grounded in research </li></ul>
  16. 16. Developing a Strategic Plan <ul><li>Know your industry and where it is going </li></ul><ul><li>Know your business and where it wants to go </li></ul><ul><ul><li>SWOT </li></ul></ul><ul><ul><ul><li>Spend some money </li></ul></ul></ul><ul><ul><ul><li>Don’t reinforce your bias and blind spots </li></ul></ul></ul><ul><ul><ul><li>Don’t believe your own PR </li></ul></ul></ul><ul><ul><ul><li>Talk to at least 3 authoritative persons for each internal opinion </li></ul></ul></ul><ul><ul><ul><li>Break the circle </li></ul></ul></ul><ul><ul><ul><li>The strongest voice is not always right </li></ul></ul></ul><ul><ul><li>Where do you fit </li></ul></ul><ul><ul><li>Barriers to entry and cost of entry </li></ul></ul>
  17. 17. Developing a Strategic Plan <ul><ul><li>Customers </li></ul></ul><ul><ul><li>Staff </li></ul></ul><ul><ul><li>Shareholders </li></ul></ul><ul><ul><li>Suppliers </li></ul></ul><ul><ul><li>Tax office </li></ul></ul><ul><ul><li>Financial institution </li></ul></ul><ul><ul><li>Regulators </li></ul></ul><ul><ul><li>Distributors </li></ul></ul><ul><ul><li>Key opinion leaders </li></ul></ul><ul><ul><li>Competitors </li></ul></ul><ul><ul><li>Potential acquirer (M&A) </li></ul></ul><ul><ul><li>Granting body </li></ul></ul><ul><li>Who Determines Your Success (Strategic Partner) </li></ul>
  18. 18. Developing a Strategic Plan <ul><ul><li>Customers </li></ul></ul><ul><ul><li>Staff </li></ul></ul><ul><ul><li>Shareholders </li></ul></ul><ul><ul><li>Suppliers </li></ul></ul><ul><ul><li>Tax office </li></ul></ul><ul><ul><li>Financial institution </li></ul></ul><ul><ul><li>Regulators </li></ul></ul><ul><ul><li>Distributors </li></ul></ul><ul><ul><li>Key opinion leaders </li></ul></ul><ul><ul><li>Competitors </li></ul></ul><ul><ul><li>Potential acquirer (M&A) </li></ul></ul><ul><ul><li>Granting body </li></ul></ul><ul><li>Who Determines Your Success (Strategic Partner) </li></ul>
  19. 19. Strategic Partner Strategy Distributor Company Profit Product training Value for customers Reliable supply Marketing support Technical support Trading terms Exclusivity Price Profit Forecasts Market intelligence Improved sales of slow moving lines New product ideas Revenue growth Trading terms Price Stock levels
  20. 20. Strategic Partner Strategy
  21. 21. Strategic Plan <ul><li>Remember, not doing something or stopping an activity can be as an important outcome as planning a new action. </li></ul>
  22. 22. Biotech Start-up Strategic Plan <ul><ul><li>Customers </li></ul></ul><ul><ul><li>Staff </li></ul></ul><ul><ul><li>Shareholders </li></ul></ul><ul><ul><li>Suppliers </li></ul></ul><ul><ul><li>Tax office </li></ul></ul><ul><ul><li>Financial institution </li></ul></ul><ul><ul><li>Angel investors </li></ul></ul><ul><ul><li>Regulators </li></ul></ul><ul><ul><li>Distributors </li></ul></ul><ul><ul><li>Key opinion leaders </li></ul></ul><ul><ul><li>Competitors </li></ul></ul><ul><ul><li>Potential acquirer/IPO investors </li></ul></ul><ul><ul><li>Granting body </li></ul></ul><ul><ul><li>VC fund </li></ul></ul><ul><li>Who Determines Your Success (Strategic Partner) </li></ul>
  23. 23. Biotech Start-up Strategic Plan <ul><ul><li>Customers </li></ul></ul><ul><ul><li>Staff </li></ul></ul><ul><ul><li>Shareholders </li></ul></ul><ul><ul><li>Suppliers </li></ul></ul><ul><ul><li>Tax office </li></ul></ul><ul><ul><li>Financial institution </li></ul></ul><ul><ul><li>Angel investors </li></ul></ul><ul><li>Who Determines Your Success (Strategic Partner) </li></ul><ul><ul><li>Regulators </li></ul></ul><ul><ul><li>Distributors </li></ul></ul><ul><ul><li>Key opinion leaders </li></ul></ul><ul><ul><li>Competitors </li></ul></ul><ul><ul><li>Potential acquirer/IPO investors </li></ul></ul><ul><ul><li>Granting body </li></ul></ul><ul><ul><li>VC fund </li></ul></ul>
  24. 24. Strategic Partner Strategy Angel Investor Company Profit Exit Strategy Understand the Business Plan - Who, What & When Be involved Profit Management support Funding Business development and succession strategy Access to Networks
  25. 25. Developing a Strategic Plan <ul><li>When you have the Strategic Plan, set: </li></ul><ul><ul><li>Targets and timelines </li></ul></ul><ul><ul><li>Accountability </li></ul></ul><ul><ul><li>KPIs </li></ul></ul><ul><ul><li>Review framework </li></ul></ul>
  26. 26. Process So Far <ul><li>Vision – Framed by the Board and developed by the CEO (may take weeks, months or years) </li></ul><ul><li>Mission – Defined from and by the Vision. Developed by the CEO and Executive Team and approved by the Board (weeks or months) </li></ul>
  27. 27. Process So Far <ul><li>Strategic Plan – Driven from the Vision and Mission. Grounded in real work and solid intelligence. Developed by the CEO and Executive Team and approved by the Board (months). </li></ul><ul><li>The Strategic Plan may redefine the Vision and Mission. </li></ul>
  28. 28. When you have a Strategic Plan <ul><li>Push it down </li></ul>
  29. 29. Operational Plans <ul><li>The operational plan is in essence the actions that will improve the efficiency and performance of the business internally while serving the strategic objectives of the organisation. </li></ul>
  30. 30. Operational Plans <ul><li>Inward looking </li></ul><ul><li>Realistic and grounded </li></ul><ul><li>Competence based </li></ul><ul><li>Short horizon </li></ul><ul><li>On the desk top with total buy-in </li></ul><ul><li>Measured and reported on weekly and monthly </li></ul><ul><li>Reviewed regularly </li></ul><ul><li>Linked to individual goals of team members </li></ul><ul><li>Must be linked to Strategic Plan </li></ul>
  31. 31. Operational Plans Elements of a Marketing Operational Plan
  32. 32. Individual Goals and Employee Development <ul><li>Short horizon </li></ul><ul><li>Measure, review and report regularly (6 monthly cycle) </li></ul><ul><li>Critically assess competence </li></ul><ul><li>Link training needs to company objectives first, but look to personal development and succession planning also </li></ul><ul><li>Ensure staff understand linkage to their actions to overall vision and mission </li></ul><ul><li>Individual goals linked to Operational Plan </li></ul>
  33. 33. Performance Linkage Vision Mission Strategic Plan Unit Operational Plan Unit Operational Plan Individual Performance Goals Individual Performance Goals
  34. 34. The Fish Rots from the Head <ul><li>The CEO is accountable to the Board and Shareholders for the success or failure of any venture. </li></ul><ul><li>The CEO must lead. </li></ul><ul><li>The CEO should be the champion of the Strategic Planning process. </li></ul><ul><li>If members of the Executive Team are not onboard, they’re not onboard. </li></ul>
  35. 35. Recommended Reading <ul><li>Good to Great – Jim Collins (Harper Business) </li></ul><ul><li>Strategic Factors – Graham Kenny (President Press) </li></ul><ul><li>Monash: The Outsider Who Won a War – Roland Perry (Random House) </li></ul>

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