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The Practical Strategic Plan: How To Make Sure Your Company Will Execute It

The Practical Strategic Plan: How To Make Sure Your Company Will Execute It. Sponsored by Cerius Interim Executive Solutions November 16, 2010. Sponsor & Introduction The Practical Strategic Plan: How To Make Sure Your Company Will Execute It Questions and Answers. Today’s Agenda.

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The Practical Strategic Plan: How To Make Sure Your Company Will Execute It

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  1. The Practical Strategic Plan: How To Make Sure Your Company Will Execute It Sponsored by Cerius Interim Executive Solutions November 16, 2010

  2. Sponsor & Introduction The Practical Strategic Plan: How To Make Sure Your Company Will Execute It Questions and Answers Today’s Agenda

  3. Cerius Interim Executive Solutions • The largest provider of interim executive solutions • Proven experience helping small to medium sized enterprises • We can help you when you needed an executive… • But thought you couldn't justify or afford a full time employee? • To drive a key initiative or overcome a critical issue? • While searching for the right long term replacement? We match business challenges with the ideal skill sets

  4. Today’s Presenter Steve Reber • A senior management expert specializing in helping entrepreneurial growing companies transition to a more disciplined, structured approach to management. Steve focuses on Strategic, Operational and Financial Planning Systems. During Mr. Reber's career, he has spent 20 years running growing entrepreneurial companies in 8 industries, including 2 startups and 2 turnarounds

  5. “If you don’t know where you’re going, it’ll take a long time to get there” -Yogi Berra

  6. A Question to Ponder:If Strategic Planning is Important, Why do So Many Companies do it Poorly?

  7. The Benefits of a Good Strategic Planning Process A Well-Articulated Vision and Strategy do the following: • Provide a Context for Key Decisions • Create Cohesion, Teamwork and Community • Inspire People to do Extraordinary Things • Allow the CEO to Make Sure Progress is Being Made

  8. The Strategic Planning Process Vision – The Goal (5-20 Years) Strategy (Roadmap) – Strategic Actions (3-5 Years) Tactical Plan – Detailed Actions by Individual (1 Year)

  9. The Strategic Planning Process Vision – The Goal (5-20 Years) Strategy (Roadmap) – Strategic Actions (3-5 Years) Tactical Plan – Detailed Actions by Individual (1 Year)

  10. Definitions • Vision Statement: A statement of what the firm will be in the future. It has 3 components: • Values: A Statement of the Company’s Core Values (Forever) • Purpose: A Higher Calling (20 Years) • Mission: The Target – A Yardstick (5-10 Years)

  11. How to Develop Your Company’s Values • Remember to distinguish today’s “real” Culture from the Culture you want in the future – Do a Culture Assessment • Conduct a Survey of all Employees • Have all Employees write a paragraph on their personal views of the company Culture • Conduct Focus Groups by Department • Summarize the Current Culture • Work with the Management Team to identify the Culture you want for the company in the future • Identify gaps and a plan to address them “Culture” = Values + Beliefs + Norms

  12. The Core Values of Zappos • Deliver WOW! Through Service • Embrace and Drive Change • Create Fun and a Little Weirdness • Be Adventurous, Creative and Open-Minded • Pursue Growth and Learning • Build Open and Honest Relationships with Communication • Build a Positive Team and Family Spirit • Do More with Less • Be Passionate and Determined • Be Humble Source:Delivering Happiness, by Tony Hsieh

  13. Purpose: A Higher Calling The Purpose is a Lofty Statement of the fundamental reason for the company’s existence. NOTE: Make sure you avoid Techno-Babble

  14. Examples of A Statement of Purpose Merck: We are in the business of preserving and improving human life. Schlage Lock: To make the world more secure. Telecare Corp: To help people with mental impairments realize their full potential. Stanford University: To enhance and disseminate knowledge that improves human kind. Mark Kay Cosmetics: To be a company that gives unlimited opportunity to women.

  15. The Mission Statement The Mission states a bold, compelling goal. It has a clear finish line and time frame within the next 10 years. Any employee in your company should be able to tell when the Mission has been completed.

  16. Examples of Mission Statements from the Past Merck: To establish Merck as the preeminent drug-maker in the 1990s. Coors: To be number 2 in the U.S. beer industry in the year 2000. Schlage Lock: To become the dominant lock supplier in the U.S. by the year 2000. Home Depot: To go national with $10 billion in sales and 350 locations by the 1990s. Source: Beyond Entrepreneurship, by Jim Collins

  17. Multiple Mission Statements I believe it is better to have three mission statements, one that addresses employees, one for customers and one for investors. For example: • To be the market share leader in our industry by 2015. • To be on the Best Companies to Work For list of the Washington Business Journal by 2015. • To score a Customer Satisfaction Rating of “Excellent” from 90% of our customers by 2013.

  18. The Strategic Planning Process Vision – The Goal (5-20 Years) Strategy (Roadmap) – Strategic Actions (3-5 Years) Tactical Plan – Detailed Actions by Individual (1 Year)

  19. Definitions (cont.) Strategy: This is the firm’s roadmap for achieving the Strategic Vision. It is the firm’s operational plan and includes a list of Key Strategic Actions for the company. Should also include a statement of the firm’s Unique Selling Proposition; i.e., how it will differentiate itself from the competition.

  20. The Strategy in a For-Profit Company

  21. External Assessment • Market Segmentation, Size by Segment and Growth or Decline by Segment • Technology Trends • Regulatory and Societal Trends • Industry Consolidation Effects • Supplier Trends • Changes in Customer Buying Behavior • In-house vs. Outsourcing • Competition – size, strengths and weaknesses for each • Key customer unmet needs • External Opportunities and Threats

  22. Internal Assessment • Skills/Knowledge • Resources • Business Processes • Organizational Alignment • Leadership and Development • Culture • Internal Strengths and Weaknesses

  23. Choosing a Strategic Option • List a few strategic options, given the Internal and External analysis. • Pick one strategic option that best fits your Vision and the Internal/External Analysis

  24. Strategy Map

  25. Product/Service Attributes Price Quality Availability Selection/Breadth Functionality Relationships Service Partnership Customer Perspective

  26. Customer Management Process Selection Acquisition Retention Growth Innovation Process Opportunity ID R&D Portfolio Design/Develop Launch Internal Perspective

  27. Learning and Growth Perspective Organizational Capital • Culture • Leadership • Alignment • Teamwork • Workforce Engagement and Productivity

  28. The Strategic Plan is Expressed as a Set of Strategic Actions from the Company Perspective • Financial Perspective • Action A • Action B • Action C • Customer Perspective • Action A • Action B • Internal Perspective • Action A • Action B • Learning and Growth Perspective • Action A • Action B

  29. An Example for Acme IT Services Company • Financial Perspective • Grow the company >40% per year by expanding Direct Sales, Expanding the SAAS Marketing Effort, and more Intensive Marketing • Reduce Revenue Volatility by Fully Developing Recurring Revenue Streams • Customer Perspective • Become a Trusted Advisor to Large Corporations by Employing Consulting Services and Educational Events to help Customers Control Data and Manage Overall Cost • Differentiate through Technology Excellence and Independence; Team Consulting; Strong Security; and Flexible, Competitive Pricing • Internal Perspective • Identify and Document Key Business Processes and Provide Relevant Training to All Affected Employees • Significantly Improve Operational Excellence through High-Quality Staff Additions, Sound Processes, and Quality Improvements • Learning and Growth Perspective • Develop a Strong Marketing Function to Build Awareness, Generate and Qualify Leads and Enhance the Brand • Understand and Actively Manage the Company’s Culture

  30. The Strategic Planning Process Vision – The Goal (5-20 Years) Strategy (Roadmap) – Strategic Actions (3-5 Years) Tactical Plan – Detailed Actions by Individual (1 Year)

  31. The Tactical Plan Allows You to Monitor Progress • For each Company Strategic Action, there should be a set of actions that will be completed in the next year. For each of these Tactical Actions there must be: • An Individual who is Responsible for its Completion • A Date by When it will be Completed • A Metric to Determine its Completion • Compile a Dashboard Report and Update the Progress of Every Tactical Action Each Quarter • Build the Completion of Tactical Actions into the Compensation System for Your Executives

  32. Tactical Plan Example for Acme IT Services • Develop a Strong Marketing Function to Build Awareness, Generate and Qualify Leads and Enhance the Brand • CEO: Recruit a VP, Marketing, with Significant Marketing Experience in the Industry to be on board by July 31, 2010 • Director, Applications: Develop Tools and Methodology for Educational Webinars and for Regional Breakfast and Lunch Workshops – to be completed by October 31, 2010 • VP, Sales: Develop Process and Tools to Ensure Thorough Lead Follow-up – to be Completed by December 31, 2010

  33. The Benefits of a Good Strategic Planning Process A Well-Articulated Vision and Strategy do the following: • Provide a Context for Key Decisions • Create Cohesion, Teamwork and Community • Inspire People to do Extraordinary Things • Allow the CEO to Make Sure Progress is Being Made

  34. What Employees Want from the CEO • Trust: Communicating the Strategic Plan builds Trust by honestly and openly communicating the Values, Vision and Strategic Roadmap for the Company. • Compassion: Taking the time to carefully communicate the Vision and Strategy shows Employees You Care about them. • Stability: Having a Good Vision and Strategic Planning Process demonstrates to employees that the company is well-managed • Hope: If your Employees Buy into the Vision and Strategic Plan, they will know there is a bright future for the company.

  35. Thank you for attending: The Practical Strategic Plan: How To Make Sure Your Company Will Execute It Sponsored by Cerius Interim Executive Solutions To contact us: 949-250-0500 www.ceriusinterim.com CeriusMarketing@ceriusinterim.com

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