7 Habits Ppt - Strategic Business Planning-Part3

8/11/2019 7 Habits Ppt - Strategic Business Planning-Part3

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Session 3


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Strategic Business Planning

~ Session 3 ~

Knowing Your Market


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There is always a right way and a wrong way to

succeed!!

Two Jesuit priests both wanted a cigarette while

they prayed. They decided to ask their Bishop forpermission. The first asked but was told no. A

little while later he spotted his friend smoking,

Why did the Bishop allow you to smoke and notme? he asked.

Because you asked if you could smoke while you

prayed and I asked if I could pray while Ismoked! the friend replied.

John Capozzi

Knowing Your Market ~ Session 3 ~ July 2003


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THE SEVEN HABITS OF HIGHLY EFFECTIVE PEOPLEDr Stephen R. Covey

1. BE PROACTIVE

2. BEGIN WITH THE END IN MIND

3. PUT FIRST THINGS FIRST

4. THINK WIN / WIN

5. SEEK FIRST TO UNDERSTAND

THEN, TO BE UNDERSTOOD

6. SYNERGISE

7. RENEWAL / CONTINUOUS IMPROVEMENT



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1. BE PROACTIVE



4. THINK WIN / WIN



6. SYNERGISE




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1. BE PROACTIVE



4. THINK WIN / WIN



6. SYNERGISE




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SYNERGISE



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SYNERGY The Principle of Creative Co-operation

Synergy is the state in which the

whole is more than the sum ofthe parts.

In an environment of trust and open communication,people working interdependently are able to generate

creativity, improvement and innovation beyond the

total of their individual but separate capacities.Stephen R. Covey



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Development of an effective partnering relationship is

dependent upon:



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dependent upon:

Mutual respect



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dependent upon:

Mutual respect

Trust



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dependent upon:

Mutual respect

Trust

Openness



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dependent upon:

Mutual respect

Trust

Openness

Integrity



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dependent upon:

Mutual respect

Trust

Openness

Integrity

Compatible cultures and values



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dependent upon:

Mutual respect

Trust

Openness

Integrity


Communication



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dependent upon:

Mutual respect

Trust

Openness

Integrity


Communication



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The greater the contrast, the greaterthe potential.

Great energy only comes from a

correspondingly great tension between

opposites.Carl Jung



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Business Communication Styles ~ The Old Way

THEM

Your Clients

US

YourBusiness

ISSUES

PROBLE

MS

REQUIR

EMENTS



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Business Communication Styles ~ The New Way

Issues

&

Problems

Your Clients Team Your Business Team

PARTNERING

Purchasing

Marketing

Production

Receiving

Sales

Marketing

Production

Shipping

Opportunities for Improvement

Solutions

Actions



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The bitterness of poor

quality remains long after

the sweetness of meetingthe schedule has been

forgotten. John Capozzi


S P A l


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Strategic Position Analysis

How efficiently do you

manage your time and effort

~ as far as the totalchargeable hours are

concerned?


S P A l


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Strategic Position Analysis AVAILABILITY

e.g. 2000 hours per year

UTILISATION

e.g. 75%

EFFICIENCY

e.g. 75%

This yields only 1125 hours of work for the year .. !!

What is the situation within your business?

Do you know and / or measure these KPIs?



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Value = Price + Performance

If it is ~

ZERO COST

~ does it have any value?



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Strategic Position

AnalysisA few ideas for you to consider and then apply to theYOUR business plan/s




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Barriers to Entry

Intensity of Competition

Threat of Substitute

Suppliers Power

Buyers Power

Your own Company

* Culture * People




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LOWSelective

Investment

No

Investment

No

Investment

MEDCompetitive

Investment

Selective

Investment

No

Investment

HIGHCompetitive

Investment

Competitive

Investment

Selective

Investment

HIGHMEDLOW

Market Attractiveness

BusinessStrengths

~ SEGMENT ~ PRODUCT ~ CUSTOMER ~



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Where would you place YOUR business?


LOWMEDIUMHIGH

LOW

MEDIUM

HIGH

BUSINESS STRENGTHS

MAR

KET

ATTRACT

IVENESS



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LOWEST PRICEe.g. McDonalds / KMartOPERATIONAL EXCELLENCE

Through:

SYSTEMS & PROCEDURES




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Strategic Position AnalysisLOWEST PRICEe.g. McDonalds / KMart

OPERATIONAL EXCELLENCEThrough:


BEST PRODUCTSe.g. Motorola / Sony

PRODUCT INNOVATIONThrough:

MARKET FOCUS / DRIVERS

ENTREPRENEURIAL / RISK TAKERS




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BEST PRODUCTSe.g. Motorola / SonyPRODUCT INNOVATION

Through:



BEST SOLUTIONe.g. IBM

CUSTOMER INTIMATEThrough:

EXCELLENT COMMUNICATORS ( & Listeners )

SOLUTION DRIVEN ( Think Outside the Square )




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BEST PRODUCTSe.g. Motorola / SonyPRODUCT INNOVATION

Through:




CUSTOMER INTIMATEThrough:

EXCELLENT COMMUNICATORS ( & Listeners )SOLUTION DRIVEN ( Think Outside the Square )




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BEST PRODUCTSe.g. Motorola / Sony

PRODUCT INNOVATIONThrough:




CUSTOMER INTIMATEThrough:EXCELLENT COMMUNICATORS ( & Listeners )

SOLUTION DRIVEN ( Think Outside the Square )




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LOWEST PRICEOPERATIONAL EXCELLENCE

BEST PRODUCTSPRODUCT INNOVATION

BEST SOLUTION

CUSTOMER INTIMATE

Where does YOUR business currently see

itself and where does it want to positionitself in the future?



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The Marketing Ps to Rememberand Utilise

The traditional 5 Ps plus a

couple of new ones


The Marketing Ps to Remember and Utilise


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PRODUCTS

PRICE




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g U

PRODUCTS

PRICE

POSITION (or Placement)

PROMOTION




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g

PRODUCTS

PRICE


PROMOTION

PEOPLE

PSYCHOLOGY




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g

PRODUCTS

PRICE


PROMOTION

PEOPLE

PSYCHOLOGY

PROCESS (or Procedures)




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g

PRODUCTS

PRICE


PROMOTION

PEOPLE

PSYCHOLOGY

PROCESS (or Procedures)



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The McKinsey Groups 7 Ss for success


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STRATEGY




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STRATEGY

STRUCTURE




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STRATEGY

STRUCTURE

SYSTEMS




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STRATEGY

STRUCTURE

SYSTEMS

STAFFING




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STRATEGY

STRUCTURE

SYSTEMS

STAFFING

SKILLING




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STRATEGY

STRUCTURE

SYSTEMS

STAFFING

SKILLING

STYLE




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STRATEGY

STRUCTURE

SYSTEMS

STAFFING

SKILLING

STYLE

SHARED BELIEFS




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STRATEGY

STRUCTURE

SYSTEMS

STAFFING

SKILLING

STYLE

SHARED BELIEFS



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MARKET SEGMENTATION

Understanding your client base




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Do you know what your Marketand Client Segmentation split-up

is for YOUR business?


20%

Understanding your client baseHigh $s


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20%

80%

Number of Clients

The Pareto factor or 80/20% effectVilfredo Pareto 1848 ~ 1923



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45 clients (20%) came from across the threesegments with medium to high revenue performance

being enjoyed.




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45 clients (20%) came from across the three segments withmedium to high revenue performance being enjoyed.

70 clients (31%) came from two of the segments

with lower revenue offerings than the 20 clients in the

light blue segment but they would probably have

higher demands on your time.




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70 clients (31%) came from two of the segments with lower

revenue offerings than the 20 clients in the light blue segmentbut they would probably have higher demands on your time.

110 clients (49%) came from two segments ~ but

predominantly the light blue ~ where you would have

been working very hard over a number of projects for

little income potential.




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70 clients (31%) came from two of the segments with lower

revenue offerings than the 20 clients in the light blue segmentbut they would probably have higher demands on your time.

110 clients (49%) came from two segments ~ but

predominantly the light blue ~ where you would have beenworking very hard over a number of projects for little income

potential.

Where would you rather position your business in the future?


20%

Understanding your client baseHigh $s


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80%

Number of Clients


High $sMarket/ClientSegm

ents 3 Clients

17 Clients

20 Clients

5 Clients

50 Clients

5 Clients

20 Clients

5 Clients

100 Clients

Low $s



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Data Gathering Sources

Customers you trust

Government statistics

Industry statistics

Company data ~ past work

Trade Associations

Extrapolation from other data ($s / employee ~ competitor analysis)

Market evaluation (SWOT)

Other industry suppliers (e.g. Printers)



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What do you think I mean by STC?

~SIZE (& Shape)

TEXTURE (or Things)

COLOUR~




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~ STC ~SIZE (& Shape)

Physical characteristics / boundaries of the

region / area in which you operate.

Physical / Perceived Boundaries

Location

Population Centres

N.B. NOT $s or Capacity




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~ STC ~TEXTURE (or Things)

Things that influence (or impact upon) the way a

market (segment) works / operates.

Technological Change

Competitive Action

Government Regulation

Growth Potential




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~ STC ~COLOUR

Identified PLAYERS in the Market (by Segment).* Customers * Competitors * Key Influencers * Industry Innovators * Regulators

DRIVERS ~ Key issues or mindsets that createtheir own directional activity.

PEOPLE ~ Key people within the Players groupswho influence your thoughts and processes.

* Ego * Financial * Innovation * Technological Challenge/s




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Senior

Middle

Administrative or

Operational

Requirements

*************

************

***********

*********

********

*******

KPIs & MOPs

*************

************

***********

*********

********

*******

Management Structure



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CAPABILITY PLATFORM


CAPABILITY PLATFORM


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CULTURE


CAPABILITY PLATFORM


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CULTURE

STRUCTURE / SYSTEMS


CAPABILITY PLATFORM


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CULTURE

STRUCTURE / SYSTEMS

COMPETENCIES / EXPERIENCE


CAPABILITY PLATFORM


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CULTURE

STRUCTURE / SYSTEMS


PEOPLE / MANAGEMENT


CAPABILITY PLATFORM


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CULTURE

STRUCTURE / SYSTEMS


PEOPLE / MANAGEMENT


THE CAPABILITIES PLATFORM


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CU

LTUR

E

SYSTEM

SP

EOPLE

&

MA

NAGEM

ENT

COMPETENCIES


THE CAPABILITIES PLATFORMCOMPETENCIES


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The teams strengths / competencies upon which to BASE the

business ( i.e. The Foundation )




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SYSTEM / PROCEDURES

The TOOLS which we develop / have to ENABLE the team( i.e. Empowerment)




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SYSTEM / PROCEDURES


CULTURE

The way in which the team / business COMMUNICATES

internally and externally ( i.e. Ethics, etc )




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SYSTEM / PROCEDURES


CULTURE



MANAGEMENT / PEOPLEThe methods used to continuously review performance and

GROW your peoples skills / experience ( i.e. PDMI ~ Plan, DoMeasure, Improve )




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SYSTEM / PROCEDURES


CULTURE



MANAGEMENT / PEOPLEThe methods used to continuously review performance and

GROW your peoples skills / experience ( i.e. PDMI ~ Plan, DoMeasure, Improve )



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S.C.R.E.A.M.


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SKILLS (continuously learning / improving)

CULTURE (enlightened business philosophy)

RELATIONSHIPS (multi-level associations)

EXPERIENCE(learning & sharing)

AMBITION (a vision for success)

METHODOLOGY (excellent procedures)



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STRATEGY FORMATION


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1. OBJECTIVE

2. STRATEGIC FOCUS

3. CLIENT TARGETS

4. CORE STRATEGY

5. COMPETITORS REACTION

6. THE PROGRAMME


STRATEGY FORMATION

1. OBJECTIVE: A clear specific statement of the business

l b hi d f h k i d f


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results to be achieved for the market segment in order ofimportance (and measures). ~ PRIMARY & SECONDARY

OBJECTIVES ~


STRATEGY FORMATION

1. OBJECTIVE: A clear specific statement of the business results to be achieved for

the market segment in order of importance (and measures). ~ PRIMARY &

SECONDARY OBJECTIVES


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SECONDARY OBJECTIVES ~

2. STRATEGIC FOCUS: How will you achieve the objective

(what you intend to do and how you intend to do it).


STRATEGY FORMATION





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2. STRATEGIC FOCUS: How will you achieve the objective (what you intend to do

and how you intend to do it).

3. CLIENT TARGETS: Whom will you try to influence.


STRATEGY FORMATION





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4. CORE STRATEGY: State the specific benefits you will

promote to get your target client to buy from YOUR

business. How will you get that potential client to buy fromYour business rather than your competitors?


STRATEGY FORMATION





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3. CLIENT TARGETS: Whom will you try to influence.4. CORE STRATEGY: State the specific benefits you will promote to get your

target client to buy from YOUR business. How will you get that potential client to

buy from YOUR business rather than your competitors?

5. COMPETITORS REACTION: Which competitors will be

impacted by your strategy? What will they do?


STRATEGY FORMATION





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3. CLIENT TARGETS: Whom will you try to influence.4. CORE STRATEGY: State the specific benefits you will promote to get your

target client to buy from YOUR business. How will you get that potential client to

buy from YOUR business rather than your competitors?

5. COMPETITORS REACTION: Which competitors will be impacted by your

strategy? What will they do?

6. PROGRAMMES: What must be done to make the Core

Strategy operational? What programmes are required tocarry out the broad course of action?


STRATEGY FORMATION

1. OBJECTIVE: A clear specific statement of the business results to be

achieved for the market segment in order of importance (and measures).

~ PRIMARY & SECONDARY OBJECTIVES ~


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~ PRIMARY & SECONDARY OBJECTIVES ~

2. STRATEGIC FOCUS: How will you achieve the objective (what you

intend to do and how you intend to do it).


4. CORE STRATEGY: State the specific benefits you will promote to get

your target client to buy from YOUR business. How will you get that

potential client to buy from YOUR business rather than yourcompetitors?

5. COMPETITORS REACTION: Which competitors will be impacted by

your strategy? What will they do?

6. PROGRAMMES: What must be done to make the Core Strategy

operational? What programmes are required to carry out the broad

course of action?


Creating those SMART actions for your plan


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T.I.M.E.

T = THRUST What is the objective of the action?

I = INTENT How does this action support your goal?

M = MEASURE When do you know youre there?E = EVALUATE Have you achieved your objective?



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This is the end of our third session ~ and

pr b bl th m t h ll nging n t d t


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probably the most challenging one, to date ~but, now that youve got some real strategic

planning ideas to work with, you need to dosome more homework during the next week

~ but this time as a team.

Ill see you all again next week ~ Good luck !!!



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Mike Cameron ~ July 2003

7 Habits Ppt - Strategic Business Planning-Part3

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