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Planning in 12 St12 Steps

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60 Minute Strategic Plang

SimpleSimple Flexible

C b li d t i l ll Can be applied to any issue large or small It’s a proven process that’s been used with

much success by over 10,000 businesses since 1997

Strategic Planningg g

Vision RealityVision Reality

Intentions Results

Purpose Performance

THINKINGPLANNINGACTINGACTING

Strategic Planningg g

A course of action ProductivityA course of action to address problems or

Productivity Profitability Revenuesproblems or

opportunities Identifies the

Management succession Market positioning Geographic expansion Identifies the

desired vision and the objectives

Geographic expansion New products and

servicesthe objectives, strategies, tactics, measures andmeasures, and actions

The Process

HowWhere

Step 1: Issue

Issue

An opportunity for or obstacle to growth An opportunity for, or obstacle to, growth

Which to choose? Highest priority

Most impact Most impact

Strategic Issues…g

Improve competitivenessImprove competitiveness Create a customer benefit

N d t ff t f Need extra effort or performance Ability to implement

Clues to Your Issues

Culture Customers Purpose and direction Structure and

People Production

delegation Information and

t l

Service

control Finances

Indigo, Inc.g ,

200 employees200 employees Employee average age = 43

30% ill ti i 5 30% will retire in 5 years 49% will retire in 10 years They must prepare for the turnover and

loss of knowledgeg

Indigo, Inc.g ,

IIssue:Workforce Planning

d L d hi D l tand Leadership Development

St 2Step 2: AssumptionsAssumptions

Assumptionsp

Beliefs as to why your strategic issue isBeliefs as to why your strategic issue is important

InactionWorst-case scenario Unsolved

Action Best-case scenario Solved

Assumptions…p

Are reasons to finish regardless of theAre reasons to finish regardless of the obstacles

Answer: “Why are we spending the extra Answer: Why are we spending the extra effort and resources?”A ROI Are your ROI

$ Difference

Financial business impact over timeFinancial business impact over time Rationalizes the ROI for diverting and spending

resourcesresources

$100K X 3 $300K$100K X 3 years = $300K

Indigo, Inc.g ,

IIssue:Workforce Planning

d L d hi D l tand Leadership Development

Indigo, Inc.g ,

Unsolved:Unsolved:• Declining skills and lost knowledge• Lack of leadership• Lack of leadership• Employees bored and may leave

S l d Solved:• Transfer of skills and knowledge• Leaders developed• Employees challenged and motivated

Indigo, Inc.g ,

$200K/year X 10 years = $2M$200K/year X 10 years $2M

Step 3: Values

Values

Operating philosophies or principles thatOperating philosophies or principles that guide an organization's conduct

• Integrity• Integrity• Customers are #1• Risk Tolerance• Risk Tolerance• Results

O C i ti• Open Communication

Values

Beliefs and behaviors needed to resolveBeliefs and behaviors needed to resolve this specific issue Example Example

Issue: Create an employee ownership equity program

Value: Marketplace agility xValue: Share the rewards

How Measured?

Measure = ManageMeasure = Manage Example

V l H E l• Value: Happy Employees• How Measured?

R d l t b 50% Reduce employee turnover by 50% Increase job satisfaction to 100% Moral improved by 10% a year Moral improved by 10% a year

Measuring Valuesg

How do you know if your values areHow do you know if your values are exemplified by your workers if you don’t measure them?measure them? So, make sure you can measure your

values because you choose two to trackvalues because you choose two to track and measure in an upcoming step.

Indigo, Inc.g ,

IIssue:Workforce Planning

d L d hi D l tand Leadership Development

Indigo, Inc.g ,

Effective and knowledgeable leadershipEffective and knowledgeable leadership Personal accountability Teamwork and cooperation

Step 4: Vision

Vision

The best imaginable outcomes for the issueThe best imaginable outcomes for the issue

AB FAB BHAGsABsolutelyFABulousBigHairyyAudaciousGoals S t t hS t r e t c h

Currently Impossibley p You already be doing them if they weren’tYou already be doing them if they weren t Don’t constrain yourself with realistic or

practicalpracticalAB FAB BHAGs

Doable

QuantifyySpecific

MeasurableMeasurableAmbitious

ReviewableReviewableTime bound

If d ’t k If you don’t know, guessThe more clear and precise your vision, the more compelling

Vague vs. Quantifiableg

Vague:Vague: Increase revenue

Quantifiable:Double sales force productivity in 3 years from $200K to $400K per salesperson; $ $ p p ;gross margin no lower than 50%.

Indigo, Inc.g ,

IIssue:Workforce Planning

d L d hi D l tand Leadership Development

Indigo, Inc.g ,

Create a formal cross-training program byCreate a formal cross training program by the end of Q1 2012 C t d i l t t Create and implement a mentor program by end of Q2 2012

Reduce training redundancy by 50% by end of Q3 2012

St 5Step 5: CustomerCustomer Benefits

Customer Benefits

Customer payoff from the visionCustomer payoff from the vision Your company does not make money—it

provides products or services; inprovides products or services; in exchange, customers pay youC t lid t i i b Customers validate your vision by investing in it (that is, your company) They are, in effect the VC for your plan

Customer Benefits

Your vision must address your customers’Your vision must address your customers needs How do the outcomes for this strategic How do the outcomes for this strategic

issue measurably contribute to my customers’ success?customers success? Quantify your customers’ ROI in your

i i I it h f t d b tt ? Bvision. Is it cheaper, faster, and better? By how much?

Indigo, Inc.g ,

IIssue:Workforce Planning

d L d hi D l tand Leadership Development

Indigo, Inc.g ,

Answer questions in one phone callAnswer questions in one phone call Higher customer satisfaction than

tit b 25% icompetitors by 25% in one year

St 6 OthStep 6: Other BeneficiariesBeneficiaries

Other Beneficiaries

Co-workers and others needed to helpCo workers and others needed to help resolve the issue. This can include:• Employees• Employees• Shareholders• Vendors• Vendors• Alliance partners

B i i l t ti Buy in = implementation What payoff will they receive from the

vision?

Indigo, Inc.g ,

IIssue:Workforce Planning

d L d hi D l tand Leadership Development

Indigo, Inc.g ,

Employees: For each new verifiable skillEmployees: For each new verifiable skill employees learn within 18 months they will receive a bonus

Vendors: Will increase the volume of business they do with them on an average of 25% per y g pyear

Owners: The company will increase in value by p y y50% within 3 years, so the owners will see their financial equity increase

St 7Step 7:Vital SignsVital Signs

Vital Signsg

Measurements to audit track and adjustMeasurements to audit, track, and adjust your plan (key performance indicators) Track plan progress Track plan progress Indicate if corrective actions are needed

Which to Choose?

Those that reinforce the accomplishmentThose that reinforce the accomplishment of the issue’s visionary outcomes Select up to eight from: Select up to eight from:

• Values (step 3)Vi i ( t 4)• Vision (step 4)

• Customer Benefits (step 5)• Other Beneficiaries (step 6)

Indigo, Inc.g ,

IIssue:Workforce Planning

d L d hi D l tand Leadership Development

Values

Effective LeadershipEffective LeadershipMeasurement: Employee job satisfaction survey Accountability Accountability

Measurement: % of commitments every employee meets or exceedsemployee meets or exceeds

Vision

Cross training programCross training programMeasurement: In place by Q1 2012 Mentor program Mentor program

Measurement: In place by the end of Q2 2012

Customer Benefits

Customer questionsCustomer questionsMeasurement: Total percentage answered in one callone call Customer satisfaction

Measurement: 25% higher in one yearMeasurement: 25% higher in one year

Other Beneficiaries

Employee growth opportunitiesEmployee growth opportunitiesMeasurement: # new skills gained in 18 months Shareholder equity Shareholder equity

Measurement: 50% increase in 3 years

St 8Step 8: ObstaclesObstacles

Obstacles

Obstructions to the visionObstructions to the vision Make vision currently impossible

BHAGS BH f BHAGS = BH performance gap

TA

C

BS

T CL

E

EffortInnovation

CurrentVi i

OB

S

Reality Vision

Performance Gap

Obstacles

Frame obstacles in a constructive mannerFrame obstacles in a constructive manner Turn them from negatives into positives

and excuses into challengesand excuses into challenges “How to” (or H2)

How to (H2)( )

We lack urgencyx

How to (H2) create

How to (H2) create a sense of urgency

Indigo, Inc.g ,

IIssue:Workforce Planning

d L d hi D l tand Leadership Development

Indigo, Inc.g ,

H2 obtain budget to create a mentor programH2 obtain budget to create a mentor program

H2 determine skills and competencies needed for leadership positionsfor leadership positions

H2 identify duplication of training efforts

H2 motivate employees to participate in programs

Step 9: Strengths, Weaknesses andWeaknesses, and

Opportunities

S, W, and O’s, ,

What you have going for and against yourWhat you have going for and against your issue/vision• What you have to work with (strengths you• What you have to work with (strengths you

can build on)• What you don’t have to work withWhat you don t have to work with

(weaknesses to correct or finesse)• Immediate opportunities that you canImmediate opportunities that you can

leverage Stay specific to your issue and visionStay specific to your issue and vision

Examplep

Vision: Develop a best-in-class R & DVision: Develop a best in class R & D facility

X Great dental coverage E l fi PhD Employ five PhDs

Indigo, Inc.g ,

IIssue:Workforce Planning

d L d hi D l tand Leadership Development

Strengthsg

Managers and supervisors are highly-Managers and supervisors are highlyskilled and well-educated Work culture supports innovation risk Work culture supports innovation, risk-

taking, and sustainable change

Weaknesses

No in-house training staffNo in house training staff Lack of training tracking system

Opportunitiespp

Distance learning technologyDistance learning technology Leverage local university continuing ed

leadership programleadership program

Step 10:StrategicStrategic Initiatives

Strategic Initiativesg

Performance gaps that need to be closedPerformance gaps that need to be closed. Select from:• Obstacles in step 8• Obstacles in step 8• Weaknesses in step 9

Identify up to three gaps (to start) Identify up to three gaps (to start) If you take on too many, you are all likely

t t l d dto get overloaded

Which gaps first?g p

Select those thatSelect those that…• Are of the highest priority• Must be closed first sequentially• Must be closed first sequentially

Example:S• Issue: Sell the business

• First gap to close: Determine market value Once you close a gap, replace it with

another open gap

Strategic Initiativesg

For each item you select describe:For each item you select, describe:• The status quo of the gap—the current From

state)state)• The successful transition needed—the

desired To statedesired To state

From ToFrom “As Is”

To “Want to Be”

Performance Gap

Initiative Championsp

Assign one strategic champion or ownerAssign one strategic champion, or owner, per initiative Responsible for executing and completing Responsible for executing and completing

the initiativeD l t t k d f ll Delegates tasks and follows up

Indigo, Inc.g ,

IIssue:Workforce Planning

d L d hi D l tand Leadership Development

Indigo, Inc.g , Mentor Programg

From: NoneTo: Formal program

Training BudgetFrom: MinimalTo: Adequate

Leadership CurriculumpFrom: Ad hocTo: Formal program

Step 11:ActionsActions

Actions

Activities necessary to close aActivities necessary to close a performance gap What must be done to take a From to a To What must be done to take a From to a To

Indigo, Inc.g ,

IIssue:Workforce Planning

d L d hi D l tand Leadership Development

Indigo, Inc.g ,Mentor Program

From: NoneTo: Formal program

Actions:• Define the scope and participation• Identify and train mentors• Create mentoring websiteg• Create definition of success• Create recognition programg p g• And so on…

Step 12:TitleTitle

Title

Gives the project an identityGives the project an identity Makes it easier to communicate about the

planplan Is a rallying cry Vision in 3 to 5 words

Indigo, Inc.g ,

IIssue:Workforce Planning

d L d hi D l tand Leadership Development

Indigo, Inc.g ,

Leaders Developing Leaders

We’re done!

You have learned a simple and flexibleYou have learned a simple and flexible planning process you can use to create a plan that you can begin to implement rightplan that you can begin to implement right away

except…except…

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