The document outlines the phases of lean strategic planning including examining the current state, creating a strategy map and plan, and building the plan's elements. It describes analyzing strengths, weaknesses, opportunities and threats (SWOT), setting SMART objectives, and implementing the plan through policy deployment across departments. The overall goal is to create a strategic plan that leads to organizational improvement, lower costs, and financial growth through understanding the current situation and implementing initiatives.

1. Steve Bathe
&
John F Petak
Lean Strategic Planning
“The Plan is nothing, planning is everything”

2. Lean Strategic Planning Phases
• Examine and analyze the current state
• Create a strategy map and strategic plan
• Create the building blocks of the plan
• Implement the plan (PDCA)
Goal: a strategic plan that is fully understood
and implemented leading to financial stability,
organizational improvement, decreased cost and
financial growth

3. Examining and analyzing the current
state, “Understand the box before you get out of
the box”
• Knowing threats and weaknesses guide the allocation of
resources to protect critical elements of the business
• Knowing the processes and methods the organization has
already invested in and it's core competencies provides a
better understanding of what assets already exist and the
investment needed to reach strategic objectives
• The future of the organization can be forecast based on
solid factual evidence.
• It equips businesses to face the realities that have to be
dealt with on the way to meeting future goals.

4. Examining and analyzing the current
state
• Financial Analysis
• Strengths / Weaknesses / Opportunities / Threats
(SWOT)
• Identifying Mission Critical elements of the
organization
• Risk Management Plan
• Resource Evaluation
• Benchmarking

5. Create a Strategy Map and
Strategic Plan
• Start with the businesses value propositions
Standard Value Propositions
Product Leadership Deliver unique, market leading products
High degree of customer knowledge and
Customer Intimacy understands their needs
Combination product, price, quality, and
Operational Excellence service
Strategy Templates
Product Leadership Strategy Focus
Product Characteristics Relationship Image
Price Quality Selection Function Service Customization Brand Marketing
Customer Relationship Strategy Focus
Product Characteristics Relationship Image
Price Quality Selection Function Service Customization Brand Marketing
Operational Excellence Strategy Focus
Product Characteristics Relationship Image
Price Quality Selection Function Service Customization Brand Marketing
Non-Profit Value Proposition
Service Leadership Known for excellence in meeting needs
as outlined by mission / vision
High degree of customer knowledge,
Customer Intimacy measuring outcomes, meeting needs

6. Create a Strategy Map and Strategic Plan
• The Strategy Map uses Value Proposition and
perspectives to create a framework for objectives
Value Proposition Operational Excellence Product Leadership
Improve operational Targeted new product Drive innovation Speed to market
Strategy performance In Mfg and log introductions
Perspectives Objectives Objectives Objectives Objectives
Financial Increase Margin Increase Market Share
Customer Improve delivery performance Offer enhanced functions Tie smart grid tech Reduce time to
to NPI introduce new
products
Internal Reduce inventory
Reduce labor cost
Learning and Growth Provide minimum level of
training
Create knowledge mgmt
system

7. Create the Building Blocks of the Plan
• Vision / Mission
• Planning
• Objectives Setting
• Determining Tactics
• Goal Setting
• Creating Projects

8. Setting Objectives
• Create SMART Objectives
• Strategic in intent
• Meaningful
• Aligned within the organization vertically and
horizontally
• Rational
• Team driven

9. Set goals with a Balanced Score Card

10. Implement the Plan
Plans are implemented with vertical and horizontal alignment of resources
through policy deployment
Policy Deployment
Functional Departments
Measure Ops Qual Eng Log Pur HR Sales Acc IT
Average margin improved by X% P S S L S S
Reduce by X m$ P L P S
OTD > 98% P S L P S
Reduce labor by X% per unit L S S S S
Training hours / EE P P P P P L S S S
100% explictit and 35% tactic P P P P P L P P P
Market share inc by X%
P S L S
Develop strategic relationships S P P S S L P
Reduce time form 26 months
average to 20 months S L P P
< 3 days to answer complaint P L S P S
launch revised site by 2Q P S P S P L
Increase number of store locations
by15% P S L S S
Select three demographics for
targeted marketing L P