60 Minute Strategic Plan Webinar
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Transcript of 60 Minute Strategic Plan Webinar
SmallSmall Business
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…
Most Strategic Plans Never Get Implemented
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