2013 Strategic Leader Survey results 8-29-2013

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2 | P a g e © Forrest Consulting, 2013. Permission to reproduce this report is granted, so long as credit is given to Forrest Consulting.
EEXXEECCUUTTIIVVEE SSUUMMMMAARRYY
The 2013 Strategic Leader Survey digs into the use of strategic planning and plan
implementation by companies and other organizations to identify strategy development and
execution approaches that are working, as well as those that are problematic. Survey findings
are based on responses to our e-survey by 314 organizational leaders in decision-making roles.
Key findings from the strategic leaders' responses include:
 60% report that a formal strategic planning process plays a "very significant" or "extremely
significant" role in developing their organization's strategy.
 Almost 60% say strategic planning is "very important" or "extremely important" in the
success of their organization.
However, the glass remains little more than half full, looking at the lesser use of and less value
attributed to strategic planning in the other 40% or so of organizations. And 7% of leaders
report that their organization does not have a strategic plan.
Examining the link between use of strategic planning and value derived from strategic planning
shows that leaders whose organizations place more importance on the role of planning in
strategy development are more likely to say it is more important in organizational success.
Further, for their latest strategic plan, organizations whose leaders say planning has little
importance in organizational success were:
 Much less likely to use strategic planning "best practices."
 Less likely to consider global risks.
 Less likely to consider global trends that offer major opportunities.
Yet, survey evidence suggests that using "best practices" and considering global risks and
opportunities are keys to deriving greater success through strategic planning. The 40% of
organizations that see little success from planning may see more success by using best strategic
planning practices and paying greater attention to risks and opportunities.
A final note on best practices: Even for those organizations whose leaders attribute success to
planning, use of best practices is highly inconsistent. All leaders are encouraged to revisit their
organization's planning practices as an avenue to achieving even better results from planning.
Lee Crumbaugh, SMP, President
Office 630-469-8088 Cell 630-730-9619
leec@strategicbusinessleader.com
www.forrestconsult.com
www.strategicbusinessleader.com

For 25 years Forrest Consulting has promoted strategic thinking, planning and action. Our vision is "every
organization creates and is acting on a plan with strategies leading to a vision of greater success."
The case for strategic planning is compelling, yet, according to our prior research (which confirmed earlier
findings by McKinsey & Co.), three-quarters of organizations don't develop and implement strategies leading to
a shared vision of success. Much of leaders' time and focus is directed to daily operations and problem-solving.
Our 2012 Strategic Leader Survey focused on how to help leaders be more effective strategic managers.
The responses confirmed that leaders believe peer support, experienced counsel and expert knowledge can help
them think and act strategically and instill strategic planning and effective implementation in their organizations.
Our 2013 Strategic Leader Survey digs deeper into use of strategic planning and implementation in
companies and other organizations. Our aim is to identify strategy development and execution approaches that
are working, as well as those that are problematic. We are especially interested in assessing how leaders
evaluate strategic risks and opportunities and how this lines up with how their organizations approach planning.
Lee Crumbaugh, SMP, President
Office 630-469-8088 Cell 630-730-9619
leec@strategicbusinessleader.com
www.forrestconsult.com
www,strategicbusinessleader.com

CONTENTS
THREE VITAL ASPECTS...............................................................................................................................5
TO START: MANY FIND PLANNING A SIGNIFICANT PROCESS ................................................6
THE PAYOFF: MANY FIND PLANNING IMPORTANT TO SUCCESS ..........................................7
KEY QUESTIONS ABOUT THE OTHER 40 PERCENT ......................................................................8
MOST LEADERS FACE SIGNIFICANT STRATEGY CHALLENGES.................................................9
MORE FREQUENT STRATEGY DEVELOPMENT? ............................................................................ 10
PLANNING FOR MOST IS SIGNIFICANT AND IMPORTANT..................................................... 11
THOSE THAT EMPHASIZE PLANNING FIND IT BRINGS SUCCESS ......................................... 12
USE OF BEST PRACTICES VARIES......................................................................................................... 13
PLANNING PREPARATION: LOTS OF "DO IT YOURSELF"......................................................... 14
PLAN CREATION: NOT EVERYONE FINDS A VISION ................................................................. 15
PLANNED IMPLEMENTATION: WHY NOT HAVE A TIMELINE?............................................... 16
ACTUAL IMPLEMENTATION: WHY NOT TRACK PROGRESS? ................................................ 17
POOR EXECUTION BY A SIZABLE SEGMENT................................................................................. 18
THOSE WITH PLANNING SUCCESS FOCUS ON BEST PRACTICES........................................ 19
LEADERS WANT THE NEXT PLAN TO CONSIDER THESE RISKS............................................ 20
THOSE WITH PLANNING SUCCESS FOCUS MORE ON RISKS................................................. 21
LEADERS SAY THESE TRENDS OFFER A MAJOR OPPORTUNITY............................................ 22
THOSE WITH PLANNING SUCCESS FOCUS MORE ON TRENDS........................................... 24
DO DIFFERENT ORGANIZATION TYPES PLAN DIFFERENTLY?............................................... 25
WHERE TO GO FROM HERE................................................................................................................. 26
APPENDIX 1: Additional Exhibits............................................................................................................ 27
APPENDIX II: Response Analysis and Respondents' Characteristics .............................................. 41

TTHHRREEEE VVIITTAALL AASSPPEECCTTSS
To better understand the prevalence and use of strategic planning and its effectiveness, the
2013 Strategic Leader Survey focuses on three vital aspects of planning and implementation:
1. The extent to which leaders report their organizations engage in strategy development,
value use of strategic planning for strategy setting, and attribute success to use of
planning.
2. The practices strategic leaders report using in their organizations for planning
preparation, plan creation and plan implementation - and the sufficiency and rigor of
these practices.
3. Important external factors that strategic leaders believe their organizations need to
consider in creating its next strategic plan.

TTOO SSTTAARRTT:: MMAANNYY FFIINNDD PPLLAANNNNIINNGG AA SSIIGGNNIIFFIICCAANNTT PPRROOCCEESSSS
A prime question asked
in the 2013 Strategic
Leader Survey is the
extent to which
organizations find formal
strategic planning a
significant process to
develop their strategy.
The baseline finding from
this survey, echoing
results of other surveys
including our 2012
Strategic Leader
Survey, is that 60% of
leaders report that a
formal strategic
planning process plays
a "very significant" or
"extremely significant"
role in developing
their organization's
strategy.
6.8%
3.2%
6.8%
23.4%
35.6%
24.1%
0.0% 10.0% 20.0% 30.0% 40.0%
Don't Have A Formal Strategic Plan
Not At All Significant
Slightly Significant
Somewhat Significant
Very Significant
Extremely Significant
Role that a formal strategic planning
process plays in developing the
organization's strategy

TTHHEE PPAAYYOOFFFF:: MMAANNYY FFIINNDD PPLLAANNNNIINNGG IIMMPPOORRTTAANNTT TTOO SSUUCCCCEESSSS
Another prime question
asked in the 2013
Strategic Leader
Survey is to what extent
leaders attribute the
success of their
organization to use
of strategic planning.
That question leads to the
second baseline finding,
which is that just under
60% of leaders say
strategic planning is
very or extremely
important in the
success of their
organization.
0.8%
10.4%
30.8%
42.9%
15.0%
0.0% 10.0% 20.0% 30.0% 40.0% 50.0%
Not At All Important
Slightly Important
Moderately Important
Very Important
Extremely Important
Importance of strategic planning
in the success of the organization

KKEEYY QQUUEESSTTIIOONNSS AABBOOUUTT TTHHEE OOTTHHEERR 4400 PPEERRCCEENNTT
That six of every 10 leaders place high value on strategic planning in organizational success is
an important and positive finding. But we cannot ignore the fact that the glass remains
little more than half full when it comes to reported use of and value attributed to
strategic planning. This lack of unanimity regarding the use and value of strategic planning
raises key questions:
 In what way, if at all, do organizations for which strategic planning plays a less
significant role in strategy development engage in strategic planning? Is how they
use planning why it is less significant in their development of strategy?
 Are the organizations whose leaders see strategic planning contributing little or
nothing to the success of the organization using strategic planning "best practices"?
Might lack of use of "best practices" in planning be a prime reason why strategic
planning does not contribute to the success of these organizations?
Evidence to answer these key questions emerges from the 2013 Strategic Leader Survey
results. But before considering differences in planning usage and acceptance, we need to
acknowledge both a common view of the strategy-related challenges faced by strategic leaders
and the general acceptance by leaders of strategy development as an organizational imperative.

MMOOSSTT LLEEAADDEERRSS FFAACCEE SSIIGGNNIIFFIICCAANNTT SSTTRRAATTEEGGYY CCHHAALLLLEENNGGEESS
Prior to asking about strategy making and implementation processes, the leaders were asked
which of any of five strategy challenges they found to be significant for their organizations.
 Only 10% of leaders said none of the challenges were significant.
 90% identified at least one challenge as significant; the share of leaders that found each
of the challenges significant were closely distributed in a range of 32% to 42%, and the
typical leader identified two of the challenges as significant.
As the chart shows,
the challenge most
frequently identified
as significant was
"Allocating resources
in a way that really
supports the strategy," and was closely
followed by "Setting a
clear and differentiating
strategy" and "Ensuring
day-to-day decisions are
in line with the strategy."
These problematic
strategy challenges cover
strategy creation through
implementation. The
prevalence with which
leaders encounter
these challenges suggests
that the planning and
implementation processes
most organizations use fall
short in significant ways.
37.9%
31.8%
36.1%
42.1%
33.2%
9.6%
0.0% 10.0% 20.0% 30.0% 40.0%
Setting a clear and differentiating
strategy
Communicating the strategy and
getting buy-in for it
Ensuring day-to-day decisions are in
line with the strategy
Allocating resources in a way that really
supports the strategy
Quickly translating strategic and
operational decisions into action
None of the above
Significant challenges for
organization's leaders

MMOORREE FFRREEQQUUEENNTT SSTTRRAATTEEGGYY DDEEVVEELLOOPPMMEENNTT??
We tend to think of strategy development as an annual process leading to budgeting. Yet the
2013 Strategic Leader Survey results suggest many organizations develop strategy
more frequently than annually. Further, many leaders want even more frequent strategy
development than practiced by their organization.
 54% of
organizations
develop strategy
more often than
annually; 73% of
leaders believe
strategy should
be developed
more often than
annually if not on
an on-going basis.
 39% develop
strategy "on an
on-going basis";
55% of leaders
believe strategy
should be
developed "on
an on-going basis."
 15% of organizations develop strategy "more than once per year"; 18% of leaders
believe strategy should be developed "more than once per year."
Of course, saying the organization develops or should develop strategy frequently or
continually does not address the sufficiency of the strategy development process, nor the
effectiveness of the strategies developed.
39.2%
14.6%
24.2%
6.1%
5.0%
4.6%
6.4%
55.0%
18.4%
16.7%
6.0%
0.7%
0.7%
2.5%
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0%
On an on-going basis
More than once per year
Annually
Every 2-3 years
Every 4-5 years
Less than every 5 years
Other or don't know
Frequency of strategy development
How often the organization engages in organizational strategy development
How often leaders believe the organization should engage in organizational
strategy development

PPLLAANNNNIINNGG FFOORR MMOOSSTT IISS SSIIGGNNIIFFIICCAANNTT AANNDD IIMMPPOORRTTAANNTT
As stated earlier, the
2013 Strategic Leader
Survey asked about the
role that formal strategic
planning plays in
developing the
organization's strategy.
The red bar on the chart
shows leaders' weighted
average rating of the
significance that a formal
strategic planning
process plays in
developing their
organization's strategy.
The rating, on a 1-5 scale,
with 1 being "not at all
significant" and 5 being
"extremely significant,"
is 3.8, close to "very
significant."
Of course, also as stated earlier, this overall rating masks the flip side, that for 40% of leaders'
organizations strategic planning does not play a very significant role in strategy development.
And, notably, 7% of leaders report that their organization does not have a strategic plan.
The blue bar on the chart shows leaders' weighted average rating of the importance of
strategic planning in the success of their organization. The rating, on a 1-5 scale, with 1 being
"not at all import" and 5 being "extremely important," is 3.8, about halfway between
"moderately important" and "very important."
However, again, the flip side is that for just over 40% of leaders strategic planning is not
viewed as having high importance in their organization's success.
3.8
3.6
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0
Significance of planning in
developing strategy: 1 =
Not at all significant, 5 =
Extremely significant
Importance of planning in
organization's success: 1 =
Not at all important, 5 =
Extremely important
Weighted
average rating
on a 1-5 scale
Leader ratings of strategic planning 's
significance in developing strategy
and its importance in the
organization's success

TTHHOOSSEE TTHHAATT EEMMPPHHAASSIIZZEE PPLLAANNNNIINNGG FFIINNDD IITT BBRRIINNGGSS SSUUCCCCEESSSS
So what does the evidence say about the relationship between the leaders for whom planning
does not play an important role and those who attribute little value to planning in success?
This chart shows very clearly that leaders who place more significance on planning in
strategy development are the most likely to say it is more important in
organizational success. How highly leaders rate the significance of planning in their
organization directly corresponds with how highly they rate the importance of planning in the
success of their organization.
In fact, leaders who rate planning "not at all important" in success also rate it "not at all
significant in strategy development." And conversely, leaders who rate planning extremely
important in success also rate it close to "extremely significant" in strategy development."
Bottom line: Those who downplay the benefit of strategic planning are those who don't use
it to develop strategy.
1.0
2.5
3.4
4.0
4.7
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0
Not at all
important
Slightly
important
Moderately
important
Very
Important
Extremely
important
Weighted average
rating of
significance of
planning in
developing
strategy on a 1-5
scale: 1 = Not at
all significant, 5 =
Extremely
significant
Rating of the importance of planning in organizational success
Significance of strategic planning in developing
organization's strategy, by leader rating of
importance of planning in organizational success

UUSSEE OOFF BBEESSTT PPRRAACCTTIICCEESS VVAARRIIEESS
Much of the 2013 Strategic Leader Survey focused on use of commonly accepted strategic
planning "best practices," as identified in the Association for Strategic Planning's Body of
Knowledge and other references. The survey investigated how leaders' organizations:
 Prepare for strategic planning.
 Create the strategic plan.
 Plan to implement the strategic plan.
 Actually implement the strategic plan.
Meaningful differences among organizations can be seen from the results of this investigation.
And these differences raise important questions about why more organizations do not use
best practices when they engage in strategic planning.

PPLLAANNNNIINNGG PPRREEPPAARRAATTIIOONN:: LLOOTTSS OOFF ""DDOO IITT YYOOUURRSSEELLFF""
The following chart shows how organizations prepared to develop their most recent strategic
plan. Especially notable findings are:
 Three times
as many
organizations
used a strategic
planning
process that
they developed
than used one
developed
outside of the
organization.
Many proven
planning
processes exist:
Why use
home-grown
processes?
Are the processes
used rigorous,
proven, best of
class?
 Only one in five organizations used an outside facilitator to lead their strategic planning
process. Why not more, given the proven benefits of using an outside facilitator?
 Half of the organizations gathered pre-planning input from organizational stakeholders.
Why didn't the other half ask for stakeholder input up front?
 44% of organizations developed pre-planning information on the external environment.
Why didn't the rest conduct an environmental scan of important trends and forecasts?
50.7%
43.7%
17.8%
54.6%
20.4%
39.4%
33.8%
23.4%
31.2%
0.0% 20.0% 40.0% 60.0%
Gathered pre-planning input from
organization stakeholders
Developed pre-planning information on
the external environment
Used a planning process primarily
developed outside the organization
Used a planning process primarily
developed inside the organization
Used an outside facilitator to lead the
planning
Used an executive or Director to lead the
planning
Formed a planning team of 8 or fewer
individuals
Formed a planning team of more than 8
individuals
Included Directors, funders or other non-
staff stakeholders on the planning team
How the organization prepared to
develop its most recent strategic plan

PPLLAANN CCRREEAATTIIOONN:: NNOOTT EEVVEERRYYOONNEE FFIINNDDSS AA VVIISSIIOONN
At the most fundamental level, strategic planning can be distilled to acting based on the
organization's current situation to move to a better position. In common planning parlance,
this would be finding a shared vision of success; assessing strengths, weaknesses, opportunities
and threats; and developing strategies and action steps (tactics) to move toward the vision.
The following chart shows practices that leaders report their organizations used to
created its most recent strategic plan. Especially notable findings are:
 Just over half of
the organizations
developed a
shared vision of
future success.
What did the others
aim at in their plan?
 64% identified key
strategies to move
toward the vision.
If strategic planning
hinges on strategies,
then one must
conclude that a
third of the
organizations did
not truly engage in
strategic planning
to create what they
call their "most
recent strategic plan."
 54% developed action steps for implementing each key strategy. An obvious conclusion:
Developing a strategy is meaningless if it is not implemented.
52.6%
40.8%
32.0%
64.5%
59.2%
41.7%
64.0%
54.0%
0.0% 20.0% 40.0% 60.0%
Developed a shared vision of future
success for the organization
Developed a mission / purpose
statement for the organization
Developed a statement of shared
values for the organization
Identified the organization's strengths
/ opportunities
Identified the organization's
weaknesses / threats
Identifed the strategic gaps versus the
shared vision of future success
Developed key strategies to move
toward the vision of future success
Developed specific action steps /
tactics for implementing each key
strategy
How the organization created
its most recent strategic plan

PPLLAANNNNEEDD IIMMPPLLEEMMEENNTTAATTIIOONN:: WWHHYY NNOOTT HHAAVVEE AA TTIIMMEELLIINNEE??
More questions about organizations' use of best practices in the execution of strategic planning
emerge when planned implementation steps and the actual steps that leaders report their
organizations took to implement their most recent strategic plan are examined. The following
exhibits detail planned and actual implement steps.
The chart shows practices that leaders report their organizations planned to use to implement
the most recent strategic plan. Especially notable findings are:
 Six of every 10
organizations set
measurable
objectives for
plan tactics.
Why didn't the other
organizations set
measurable
objectives?
 Likewise, six of
every 10
organizations set
a plan
implementation
timeline. Why
didn't the other
organizations set an
implementation
timeline?
 Just over half of organizations reported on their planning progress and final plan to the
wider organization. Why didn't the other half build support for their plan by reporting on it?
71.8%
62.0%
60.7%
53.7%
41.2%
52.8%
0.0% 20.0% 40.0% 60.0% 80.0%
Assigned responsiblity for implementing
plan tactics to individuals
Set measureable objectives for each
plan tactic
Set an implement timeline
Included plan reporting, review and
adjustment in the implementation plan
Included the next plan update / re-
planning time in the implementation
plan
Reported on planning progress and final
plan to wider organization
Implementation steps in the
organization's most recent plan

AACCTTUUAALL IIMMPPLLEEMMEENNTTAATTIIOONN:: WWHHYY NNOOTT TTRRAACCKK PPRROOGGRREESSSS??
The next chart shows practices that leaders report their organizations actually used to
implement the most recent strategic plan. Especially notable findings are:
 Nearly two-thirds
of organizations
tracked
performance
against
measurable
objectives. How
did the other
third assess plan
impact and
progress?
 Just under half of
organizations
tracked
implementation
against a timeline.
Did the rest of the
organizations track
implementation
at all?
 Only four in ten organizations reviewed and adjusted plan implementation at pre-set
points. Did the rest review and adjust plan implementation in any fashion?
64.3%
47.0%
16.9%
23.5%
39.4%
62.0%
42.3%
0.0% 20.0% 40.0% 60.0%
Tracked plan performance against
measurable objectives
Tracked implementation against a pre-
set timeline
Tied senior executive compensation to
plan implementation
Tied senior executive compensation to
plan performance
Reported regularly to the wider
organization on plan implementation /
performance
Reported on plan performance to
executive team at regular intervals
Reviewed and adjusted plan
implementation at one or more pre-set
points
How the organization actually
implemented its most recent plan

PPOOOORR EEXXEECCUUTTIIOONN BBYY AA SSIIZZAABBLLEE SSEEGGMMEENNTT
The next implementation chart contrasts planned and actual implementation steps and further
reinforces a picture of poor execution in strategic planning for as many as half of organizations:
 While 60% of
organizations set
an implementation
timeline, only 47%
actually tracked
implementation
against a pre-set
timeline.
 While 53%
reported to the
wider organization
on plan
development
progress and the
final plan, only
39% reported
regularly to the
wider organization
on plan
implementation
and performance.
 While over half of organizations included plan reporting, review and adjustment in the
implementation plan, only 39% actually reviewed and adjusted plan implementation.
The one area where planned and actual implementation steps meshed was use of measurable
objectives: Just over 60% of organizations set measurable objectives for each plan tactic and
also tracked plan performance against measurable objectives.
60.7%
52.8%
53.7%
62.0%
47.0%
39.4%
42.3%
64.3%
0% 10% 20% 30% 40% 50% 60% 70%
Set an implement timeline / Tracked
implmentation against a timeline
Reported on planning progress and final
plan to wider organization / Reported
regularly on plan implementation and
performance to the wider organization
Included plan reporting, review and
adjustment in the implementation plan /
Reviewed and adjusted plan
implementation
Set measureable objectives for each plan
tactic / Tracked plan performance
against measurable objectives
Organizations' planned and actual
strategic plan implementation steps
Implementation step planned Implementation step taken

TTHHOOSSEE WWIITTHH PPLLAANNNNIINNGG SSUUCCCCEESSSS FFOOCCUUSS OONN BBEESSTT PPRRAACCTTIICCEESS
The final chart on implementation offers strong evidence that organizations whose leaders
say planning has little importance in organizational success are much less likely to
use planning "best practices." For the 11 planning practices listed, use in organizations
whose leaders rated planning "very important" to "extremely important" in organizational
success is at least 20 percentage points higher than use in organizations whose leaders rated
planning "not at all important" to "moderately important" in organizational success.
39%
36%
40%
34%
33%
50%
23%
28%
35%
41%
25%
70%
66%
65%
58%
56%
71%
44%
48%
55%
61%
45%
0% 20% 40% 60% 80%
Developed key strategies to move toward the vision
Set measureable objectives
Tracked plan performance against measurable
objectives
Developed action steps to implement key strategies
Developed shared vision of future success
Assigned responsiblity for implementing to individuals
Included plan for next plan update in the plan
Conducted scan of external environment
Included plan reporting, review and adjustment in the
plan
Reported on plan performance to executive team at
regular intervals
Reviewed and adjusted plan implementation at one or
more pre-set points
Major differences in use of planning "best practices"
by leader rating of planning's importance in success
Use in organizations whose leaders rated planning "not at all important" to "moderately important" in
organizational success
Use in organizations whose leaders rated planning "very important" to "extremely important" in
organizational success

LLEEAADDEERRSS WWAANNTT TTHHEE NNEEXXTT PPLLAANN TTOO CCOONNSSIIDDEERR TTHHEESSEE RRIISSKKSS
Using a list of global risk factors identified by the Financial Times, the 2013 Strategic Leader
Survey asked leaders what they saw as the most important risks that their next strategic plan
should consider. Those named by at least a third of the leaders responding were:
 Economic risks
(credit crunch,
market/price
volatility, recession,
inflation, etc.) -
named by 91% of
leaders.
 Technological
change risks -
named by 60% of
leaders.
 Political risks
(regulation,
protectionism,
government
policies, etc.) -
named by 51% of
leaders.
Interestingly, supply chain,
terrorism, data security,
intellectual property,
energy and resource
security, natural disasters
and infectious disease risks
all were named by less
than a quarter of the
respondents.
90.9%
60.3%
51.1%
24.7%
20.1%
19.2%
16.4%
8.7%
8.2%
0.0% 20.0% 40.0% 60.0% 80.0% 100.0%
Economic Risks (credit crunch, market
/ price volatility, recession, inflation,
etc.)
Technological Change Risks
Political Risks (regulation,
protectionism, government policies,
etc.)
Supply Chain Risks
Cyber-Terrorism / Data / Intellectual
Property Theft Risks
Natural Catastrophe / Extreme
Weather / Climate Change Risks
Energy / Resource Security Risks
Terrorism / War Risks
Pandemics /Infectious Disease Risks
Risks leaders think their organization
should consider in next strategic plan

TTHHOOSSEE WWIITTHH PPLLAANNNNIINNGG SSUUCCCCEESSSS FFOOCCUUSS MMOORREE OONN RRIISSKKSS
When the leaders who identify risks that their organization should consider in its next plan are
separated by whether the leader believes strategic planning is important in organizational
success, a now-familiar pattern emerges.
As this chart shows, in every case a larger share of the leaders who attribute greater success
to planning think the risk should be considered in planning than do those who attribute lesser
success to planning.
70%
17%
35%
5%
8%
5%
14%
14%
46%
89%
26%
53%
9%
19%
9%
19%
19%
60%
0% 20% 40% 60% 80% 100%
Economic Risks
Supply Chain Risks
Political Risks
Terrorism / War Risks
Energy / Resource Security Risks
Pandemics / Infectious Disease Risks
Cyber-Terrorism / Data / Intellectual Property Theft
Risks
Natural Catastrophe / Extreme Weather / Climate
Change Risks
Technological Change Risks
Risks leaders think their organization should
consider, by leader rating of planning's importance
Leaders who rated planning "not at all important" to "moderately important" in organizational success
Leaders who rated planning "very important" to "extremely important" in organizational success

LLEEAADDEERRSS SSAAYY TTHHEESSEE TTRREENNDDSS OOFFFFEERR AA MMAAJJOORR OOPPPPOORRTTUUNNIITTYY
The 2013 Strategic Leader Survey asked leaders about 30 global trends identified through
an environmental scan. They were asked which of the trends they thought offered a major
opportunity that their organization should consider when developing the next strategic plan.
The trends leaders thought most important ran the gamut: technology trends; transportation,
energy, agricultural trends; demographic/social trends; and structural/market trends. Seven
trends that more half of the leaders thought their organizations should consider were:
1. Green product and services ( including energy efficient products, appliances,
buildings, etc.).
2. Social media.
3. Growing senior population.
4. Smart phones, tables, mobile computing.
5. Public/private partnerships and collaborative philanthropy (involving funders,
business and government).
6. Renewable energy.
7. Growing Hispanic population.
Of course, what might be key trend for one type of organization - e.g. digital healthcare
information for healthcare organizations or aging infrastructure for construction companies -
may not be important for other organizations. Nonetheless, being aware of a wide range of
trends and factoring what seem to be most significant and opportunity laden into planning will
broaden the reach and scope of the planning and offer more opportunities to be considered.
All of the trends are presented in the following table. Those that a third or more of leaders
identified as offering a major opportunity that should be considered in planning are highlighted.

72.7%
65.3%
65.2%
57.9%
57.6%
54.7%
50.8%
48.2%
47.1%
42.6%
40.7%
39.0%
38.4%
31.3%
29.4%
27.8%
27.8%
20.9%
20.7%
19.8%
18.7%
18.7%
18.5%
16.2%
11.9%
10.7%
9.3%
6.9%
6.9%
3.7%
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0%
Green Products/Services (energy efficiency, etc.)
Social Media
Growing Senior Population
Smart Phones, Tablets, Mobile Computing
Public/Private Partnerships, Collaborative Philanthropy
Renewable Energy
Growing Hispanic Population
Cloud Computing
Social Reputation Management
Data / Information Security
Aging Infrastructure
Mass Customization, Customer Co-Creation
Big Data, Analytical Tools, Modeling, Simulation
Water Conservation
Onshoring and In-sourcing
Personalized IT-based Education/Training
The New Local Movement
Content Curation
Electric Vehicles
Crowd Funding, Other Non-Bank Financing
High-Speed Rail
Organic Agriculture
Internet of Things
Digital Healthcare Information
Privitization of Space
Advanced Electrical Energy Storage
3-D Printing
Nanoscale Design of Materials
Robots and Smart Machines
Synthetic Biology and Metabolic Engineering
Trends that leaders think offer a major opportunity
their organization should consider in its next plan
Consider
in next
plan?
Keep an eye
on for growing
opportunity?

TTHHOOSSEE WWIITTHH PPLLAANNNNIINNGG SSUUCCCCEESSSS FFOOCCUUSS MMOORREE OONN TTRREENNDDSS
Yet again, separating responses from leaders who attribute greater success from planning from
those who attribute lesser success from planning shows a greater likelihood for those who
attribute success to planning to identify global trends that they think should be considered in
their organization's next strategic plan. The chart below highlights the differences for the
highest ranked trends. (Comparative ratings for all trends are in Appendix I.)
54%
42%
41%
37%
40%
39%
34%
60%
58%
58%
49%
45%
44%
44%
0% 10% 20% 30% 40% 50% 60%
Social Media
Green Products and Services (including energy efficient
equipment, appliances, buildings)
Public/Private Partnerships, Collaborative Philanthropy
(involving funders, business and government)
Cloud Computing, Big Data, Analytical Tools, Modeling,
Simulation
Highest ranked trends that leaders think their
organization should consider in its next plan, by
leader rating of planning's importance in success

DDOO DDIIFFFFEERREENNTT OORRGGAANNIIZZAATTIIOONN TTYYPPEESS PPLLAANN DDIIFFFFEERREENNTTLLYY??
One 2013 Strategic Leader
Survey aim was to spot
differences in planning by
type of organization:
for-profit, association,
non-profit and government.
Differences do emerge - but
with a caveat. In reviewing
the following summary of
major differences and the
related exhibits in
Appendix I, recognize that the sample size for all but for-profits is small, as the chart above
shows. Therefore, these observations are only suggestive, not conclusive:
 For-profits seem more likely to develop strategy on an on-going basis; non-profits
and government entities seem more likely to develop strategy annually or less often.
 For-profits seem more likely to attribute more significance to formal strategic
planning in their strategy development and associations seem least likely;
governmental entities seem to be split on formal strategic planning's significance.
 For-profit leaders seem more likely to say strategic planning is of high importance in
organizational success; leaders of non-profits and government entities seem less
likely to say strategic planning is of high importance in organizational success.
 For the latest strategic plan: For-profits seem more likely to have identified
opportunities and less likely to have used an outside facilitator and included non-staff
stakeholders on the team; Associations seem more likely to have gathered
stakeholder input, used a team of eight or fewer, included non-staff stakeholders on the
team, and developed a vision; and less likely to have developed a mission and identified
strengths; Non-profits seem less likely to have used an outside faciliator and identified
strengths; and Government entities seem more likely to have gathered stakeholder
input, used a planning process primarily developed within the organization, developed a
vision, developed a mission statement, and identified strengths and opportunities.
155
14
45
13 12
0
25
50
75
100
125
150
175
For-Profit
(corporation,
partnership,
etc.)
Association
(501c6)
Non-Profit
(501c3)
Government Other
Number of leaders completing
survey, by type of organization

WWHHEERREE TTOO GGOO FFRROOMM HHEERREE
Among all the findings of the 2013 Strategic Leader Survey, these seem most compelling:
 Leaders for whose organizations strategic planning plays a significant role in strategy
setting report that strategic planning plays an important role in organizational success.
 The importance attributed to strategic planning in organizational success appears to
correlate with the organization's use of strategic planning "best practices" for preparing
to plan, plan creation and plan implementation, and with consideration of global risks
and opportunities that may make a difference in the organization's future success.
 All organizations may find greater success through strategic planning with greater focus
on the use of "best practices" in planning.
Yet the results of the 2013 Strategic Leader Survey still leave us with questions:
 Why does a significant segment of organizations underutilize strategic planning for
strategy setting and implementation and not value its significance as a process
 Why does a significant segment of organizational leaders believe that strategic planning
is unimportant in organizational success?
Is the reason for not employing strategic planning and not believing it can bring success the
result of ignorance or cultural differences among leaders and organizations? Do the
environment in which leaders and organizations function and the incentives driving leaders and
organizations work against a planning mindset and approach?
Clearly, opportunities for and potential benefits from further research on strategic leaders' use
of and beliefs about strategic planning and planning implementation are large.
______________________________________________________________________
Forrest Consulting very much appreciates the 335 respondents from North America, Europe,
Australia, Asia, Africa and the Middle East who participated in our 2013 Strategic Leader Survey.
We are especially indebted to the 314 company and not-for-profit leaders in decision-making roles
who took the time to offer information on the use of strategic planning in their organizations and their
views on strategic planning's role in organizational success.
Two appendices follow, with additional exhibits of survey results, and analysis of response and
respondents' characteristics. We welcome your thoughts on this research.

______________________________________________________________________
AAPPPPEENNDDIIXX 11:: AAddddiittiioonnaall EExxhhiibbiittss
39.2%
14.6%
24.2%
6.1%
5.0%
4.6%
6.4%
0.0% 10.0% 20.0% 30.0% 40.0% 50.0%
Annually
Every 2-3 years
Every 4-5 years
Other or don't know
How often the organization engages in
organizational strategy development
55.0%
18.4%
16.7%
6.0%
0.7%
0.7%
2.5%
0.0% 10.0% 20.0% 30.0% 40.0% 50.0%
Annually
Every 2-3 years
Every 4-5 years
Other or don't know
How often leaders believe organization should
engage in organizational strategy development

42%
17%
26%
5%
1%
5%
5%
21%
21%
29%
7%
7%
0%
14%
27%
9%
29%
13%
13%
9%
0%
23%
8%
31%
15%
15%
8%
0%
33%
0%
25%
8%
8%
0%
25%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
Annually
Every 2-3 years
Every 4-5 years
Other or Don't Know
Frequency of organizational strategy
development by organization type
For Profit
Association
Non-Profit
Government
Other

Role that a formal strategic planning process plays in
developing the organization's strategy
2013 Strategic
Leader Survey
2012 Strategic
Leader Survey
2006 McKinsey
& Co. Survey
Average of
three surveys
Extremely
significant
24.1% 35.2% 14% 24%
Very significant 35.6% 33.3% 44% 38%
Somewhat
significant
23.4% 12.4% 29% 22%
Slightly
significant
6.8% 12.4% 10% 10%
Not at all
significant/
No plan
10.0% 6.7% 3% 7%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
45.00%
50.00%
Extremely
significant
Very significant Somewhat
significant
Slightly
significant
Not at all
significant
Role that a formal strategic planning process plays
in developing the organization's strategy
2013 survey
2012 survey
2006 survey

8%
8%
17%
0%
33%
33%
8%
8%
8%
23%
8%
46%
4%
4%
4%
27%
44%
16%
7%
0%
0%
43%
43%
7%
9%
3%
6%
21%
34%
27%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
Don't Have A Formal Strategic Plan
Not At All Significant
Slightly Significant
Somewhat Significant
Very Significant
Extremely Significant
Role a formal strategic planning process plays in
developing strategy, by type of organization
For Profit
Association
Non-Profit
Government
Other

8%
0%
17%
8%
50%
17%
8%
0%
23%
23%
23%
23%
4%
0%
11%
42%
31%
11%
7%
0%
0%
43%
43%
7%
8%
1%
8%
23%
44%
15%
0% 10% 20% 30% 40% 50%
Did not rate
Not At All Important
Slightly Important
Somewhat Important
Very Important
Extremely Important
Leaders' rating of importance of strategic planning
in organization's success, by type of organization
For Profit
Association
Non-Profit
Government
Other

Significance of strategic planning in developing organization's
strategy, by how respondent rated importance of planning
Rating of significance of
planning in developing
strategy by respondent
rating of importance of
planning in success:
1 - Not at all
significant
2 - Slightly
significant
3 - Somewhat
significant
4 - Very
significant
5- Extremely
significant
Weighted
average
rating
Not at all important 100% 0% 0% 0% 0% 1.0
Slightly important 18% 32% 41% 5% 5% 2.5
Moderately important 3% 5% 46% 37% 9% 3.4
Very Important 1% 4% 15% 53% 27% 4.0
Extremely important 0% 3% 0% 20% 77% 4.7
How organization prepared for planning in developing most recent
plan: Usage difference by rating of planning importance
Pre-planning
information used
Where planning
process primarily
developed Planning leader Planning team
Usage of preparation
practice by
respondent rating of
importance of
strategic planning in
success:
Stake-
holder
input
Scan of
external
environ-
ment Outside Inside
Outside
facilitator
Senior
executive
8 or
fewer
More
than 8
Non-
staff
stake-
holders
included
Usage by those
who rate planning
not at all
important to
moderately
important 40% 28% 16% 39% 21% 25% 29% 15% 22%
Usage by those
who rate planning
very to extremely
important 50% 48% 17% 55% 17% 44% 32% 27% 32%
Difference in usage 10% 20% 1% 17% -4% 19% 3% 12% 10%

How organization created most recent strategic plan: Usage
difference by rating of planning importance
Developed Identified Created
Usage of preparation
practice by
importance of
strategic planning in
success:
Shared
vision
Mission/
purpose
Shared
values Strengths Weaknesses
Strategic
gaps
Key
strategies
to move
toward
the vision
Action
steps to
implement
key
strategies
Usage by those
who rate planning
not at all
important to
moderately
important 33% 28% 21% 47% 44% 26% 39% 34%
Usage by those
who rate planning
very to extremely
important 56% 43% 35% 65% 59% 43% 70% 58%
Difference in usage 23% 15% 14% 18% 15% 17% 31% 24%
Implementation steps included in most recent strategic plan:
Difference in inclusion by rating of planning importance
For each plan tactic Included in implementation plan
Reported on
planning
progress
and final
plan to
wider
organization
Inclusion of
implementation step by
importance of strategic
planning in success:
Assigned
responsibility
for
implementing
to individuals
Set
measureable
objectives
Implement
timeline
Plan
reporting,
review and
adjustment
Next
plan
update
Inclusion by those who
rate planning not at all
important to
moderately important 50% 36% 43% 35% 23% 36%
Inclusion by those who
rate planning very to
extremely important 71% 66% 60% 55% 44% 52%
Difference in inclusion 21% 30% 17% 20% 21% 16%

How actually implemented most recent plan: Difference in
implementation by rating of planning importance
Tracking
Senior executive
compensation
Reporting on plan implementation
and performance, and review and
adjustment of implementation
Usage of
implementation
step by
respondent
rating of
importance of
strategic
planning in
success:
Plan
perform-
ance
against
measurable
objectives
Implement-
ation
against
pre-set
timeline
Tied to
plan
implement-
ation
Tied to
plan
perform-
ance
Reported
regularly to
the wider
organization
Reported
to
executive
team at
regular
intervals
Reviewed
and
adjusted
at one or
more
pre-set
points
Usage by those
who rate
planning not at
all important
to moderately
important 40% 31% 9% 10% 27% 41% 25%
Usage by those
who rate
planning very
to extremely
important 65% 46% 19% 27% 40% 61% 45%
Difference in
usage 25% 15% 10% 17% 13% 20% 20%

17%
25%
42%
50%
33%
42%
58%
50%
42%
31%
23%
69%
62%
38%
69%
69%
69%
54%
38%
29%
42%
42%
24%
44%
44%
44%
38%
64%
57%
71%
36%
36%
64%
43%
43%
29%
21%
30%
42%
50%
12%
43%
61%
55%
35%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Include Directors, funders or other non-staff
stakeholders on the planning team
Form a planning team of 8 or fewer individuals
Gather pre-planning input from organization
stakeholders
Use a planning process primarily developed
inside the organization
Use an outside facilitator to lead the planning
Develop a shared vision of future success for
the organization
Identify the organization's strengths
Identify the organization's opportunities
Develop a mission/purpose statement for the
organization
Planning practices with greatest differences
in use, by type of organization
For Profit
Association
Non-Profit
Government
Other

65.3%
57.9%
48.2%
42.6%
38.4%
27.8%
18.5%
16.2%
10.7%
9.3%
6.9%
6.9%
3.7%
0.0% 20.0% 40.0% 60.0% 80.0% 100.0%
Social Media
Cloud Computing
Big Data, Analytical Tools, Modeling, Simulation
Personalized IT-based Approaches to Education and
Training
Internet of Things
3-D Printing
Nanoscale Design of Materials
Technology trends offering a major opportunity
that leaders think the organization should
consider in its next strategic plan

39%
28%
27%
14%
18%
54%
4%
6%
42%
10%
8%
1%
44%
37%
44%
15%
30%
60%
11%
6%
58%
22%
9%
4%
0% 10% 20% 30% 40% 50% 60%
Cloud Computing, Big Data, Analytical Tools,
Modeling, Simulation
Big Data, Analytical Tools, Modelling, Simulation
Personalized IT-based Approaches to Education and
Training
Social Media
3-D Printing
Internet of Things
Technology trends that leaders think the
organization should consider, by leader rating of
planning's importance in success

72.7%
54.7%
40.7%
31.3%
20.7%
18.7%
18.7%
0.0% 20.0% 40.0% 60.0% 80.0% 100.0%
Green Products and Services (including energy
efficient equipment, appliances, buildings)
Renewable Energy
Water Conservation
Electric Vehicles
High-Speed Rail
Organic Agriculture
Transportation, energy and agricultural trends
offering a major opportunity that leaders think
the organization should consider in its next plan
7%
10%
17%
37%
9%
15%
31%
14%
14%
31%
49%
12%
22%
35%
0% 10% 20% 30% 40% 50%
High-Speed Rail
Electric Vehicles
Green Products and Services (including energy
efficient equipment, appliances, buildings)
Organic Agriculture
Water Conservation
Renewable Energy
Transportation, energy and agricultural trends
leaders think the organization should consider, by
leader rating of planning's importance in success

65.2%
50.8%
47.1%
27.8%
20.9%
0.0% 20.0% 40.0% 60.0% 80.0% 100.0%
Content Curation
Demographic/social trends offering a major
opportunity that that leaders think the
organization should consider in its next plan
41%
34%
19%
17%
35%
58%
44%
24%
16%
38%
0% 10% 20% 30% 40% 50% 60%
Content Curation
Demographic/social trends leaders think the

57.6%
39.0%
29.4%
19.8%
11.9%
0.0% 20.0% 40.0% 60.0% 80.0% 100.0%
Public/Private Partnerships, Collaborative
Philanthropy (involving funders, business and
government)
Mass Customization, Customer Co-Creation
(enabling customers to "build their own" products)
Structural/market trends offering a major
opportunity that leaders think the organization
should consider in its next strategic plan
17%
14%
40%
24%
6%
25%
15%
45%
32%
11%
0% 10% 20% 30% 40% 50%
Public/Private Partnerships, Collaborative
Philanthropy (involving funders, business and
government)
Mass Customization, Customer Co-Creation (enabling
customers to "build their own" products)
Structural/market trends leaders think the

______________________________________________________________________
AAPPPPEENNDDIIXX IIII:: RReessppoonnssee AAnnaallyyssiiss aanndd RReessppoonnddeennttss'' CChhaarraacctteerriissttiiccss
Total initial respondents: 335
Respondents currently in leadership with decision-making role: 258
Respondents not now in leadership but responding about past role: 76
Respondents formerly in leadership with decision-making role: 56
Disqualified respondents not now or previously in leadership role: 20
Total qualified respondents: 314
Yes, 77.0%, 258
respondents
No, 23.0%, 77
respondents
In a leadership position with a
decision-making role with a company,
association or not-for-profit

Yes, 73.7%, 56
respondents
No, 26.3%, 20
respondents
(disqualified)
Not in a leadership position now, but have
previously been in a leadership position with a
decision-making role
20.3%
22.6%
5.6%
14.1%
2.0%
3.6%
1.3%
1.0%
1.3%
11.2%
26.6%
5.3%
13.8%
0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0%
Manager
Owner
Partner
CEO
COO
CFO
CIO
CMO
Other C-level
VP
Director
Senior
Other
Level of position in the company/organization

34.0%
15.2%
14.8%
8.8%
7.1%
8.4%
3.4%
8.4%
0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0%
1-10
11-50
51-200
201-500
501-1000
1001-5000
5001-10000
10000+
Number of people employed by
company/organization

66.2%
5.1%
19.6%
4.4%
4.7%
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0%
For-Profit (corporation, partnership, etc.)
Association (501c6)
Non-Profit (501c3)
Government
Other
Organization type

1.0%
2.4%
0.0%
1.0%
2.7%
9.5%
1.4%
1.7%
3.4%
3.0%
4.1%
4.1%
9.5%
0.7%
13.5%
0.7%
20.6%
1.7%
3.7%
3.0%
1.7%
0.3%
1.4%
9.1%
0.0% 2.5% 5.0% 7.5% 10.0% 12.5% 15.0% 17.5% 20.0%
Accommodation / Food
Aerospace / Aviation / Automotive
Agriculture / Forestry / Fishing / Hunting
Arts / Entertainment / Recreation
Association
Banking / Finance / Insurance
Computers (Hardware, Software)
Construction
Education
Government / Military
Healthcare / Medical
Information (Publishing, Telecom, Video, Software, DP,
Internet, etc.)
Manufacturing
Mining / Quarrying / Oil & Gas Extraction
Non-Profit
Pharmaceutical / Chemical
Professional / Technical Services (Accounting, Advert.,
Architecture, Consulting, Engineering, Legal, Marketing, etc.)
Research / Science / Biotechnology
Real Estate
Retail
Transportation / Distribution
Utilities
Wholesale
Other
Primary industry sector

2013 Strategic Leader Survey results 8-29-2013

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