1. SII 2010 Strategic Thinking& Planning

2. SII 2010 For those that are prepared chaos brings opportunity 3. SII 2010Learning Objectives: Address key elements of a business plan that align your firms critical objectives with those of your individuals business units objectives. Discuss common mistakes in writing strategic business plans. Identify guidelines on how often to review your strategy, adjust and change or be flexible. Provide each participant with numerous tools, ideas and skills to apply when creating a detailed and realistic strategic business plan. 4. SII 2010 Do NOT freak out! I have a ton to cover and I will go pretty fast. Please take notes and ask questions. I am happy to answer any of your questions, offer advice and recommend books at any time.The slides and a full strategic planning workbook are already posted at:www.SlideShare.net/johnspence 5. SII 2010 6. SII 2010Most people think of:S.W.O.T.Competitive PositioningCustomer Intimacy / CRMIndustry trends Global trends Regulatory / Political IssuesM.E.C.E. KRAs Strategic Thrusts Corporate Objectives SMART GoalsMBO 7. SII 2010 8. SII 2010What strategy is not More, better, faster is not a strategy. Effectiveness and efficiency are necessary but not sufficient. Superb execution of fundamental business processes is expected. Being extremely good at what you are supposed to be good at gets you no extra credit at all. 9. SII 2010 Effective Strategy = Valued Differentiation x Execution 10. SII 2010Key Point: Strategy is INTERNALas well as EXTERNAL 11. SII 2010Five Foundations of Effective Strategic ThinkingBusiness AcumenPersonal ExperiencePattern RecognitionStrategic InsightDisciplined Execution 12. SII 2010 The Four Is Ignorance Inflexibility Indifference Inconsistency 13. SII 2010How to avoid the Four Is Aggressive external market focus. Aggressive customer focus. Keep the Main Things the main things. Bullish on knowledge sharing and learning. Passion and commitment at all levels. Foster a healthy paranoia. Revel in change. 14. SII 2010From the CEO of a little 182 billion dollar companyLook, what is strategy but resource allocation? When you strip away all the noise, thats what it comes down to. Strategy means making clear-cut choices about how to compete. You cannot be everything to everybody, no matter what the size your business or how deep its pockets. You have to figure out what to say NO to. Jeffrey Immelt 15. SII 2010 A short diatribe before we get to the business models I dont like benchmarking. I think copying other businesses is stupid! Typically, by the time people start benchmarking acompany five years has past since they initiated theirstrategies. There is no way to guarantee that what worked for them willwork for you But what I absolutely can guarantee is you will not comeup with any innovative, effective or remarkable strategiescompletely on your own. You must look around you to findgood ideas then take those ideas and make them betteras you apply them to your specific challenges andopportunities. 16. SII 2010 17. SII 2010Breakthrough Strategies GE: 1- 2 or F.S.C. Intel: memory to processors Microsoft: installed base Apple: chaos to elegance Saturn: no haggling 18. SII 2010Southwest 1 type of plane Point-to-pointFast turns Low fares / no frillsFriendly staff 19. SII 2010BTOJIT Inventory turns Logistics vs. Technology VOCDell 20. SII 2010 100,00ELPNo Frills Logistics 21. SII 2010Educated Guess Focus Resource Allocation Bold not Risky What NOT to do 22. SII 2010 Thinking to Planning 23. SII 2010 24. SII 2010 25. SII 2010What Business Planning is Not ! Business planning does not attempt to make future decisions. Business planning is not forecasting. Business planning is not an attempt to blueprint the future. Business planning is not necessarily the preparation of massive plans and reports. Business planning is not an effort to replace good management judgment. 26. SII 2010 Why Planning Pays Off Asks & answers questions of importance. Simulates the future. Forces the setting of objectives. Gives a framework for decisions. Develops performance measurements. Improves communications. 27. SII 2010 28. SII 2010 Common Problems Putting It Off Idea inflation Diluted priorities Vague goals No execution plan!!! 29. SII 2010 10 15 % 30. SII 2010What Inhibits Execution? National Survey of 4,000 Senior Executives4. Inability to work together (21%)3. Company culture (23%)2. Economic climate (29%)1. Holding onto the past /unwillingness to CHANGE (35%) 31. SII 2010 Where are we going + how will we behave on the way? Praise + CelebrationFocus andDifferentiationEliminate MediocrityNo Measure / Track 9 Steps forCommunicateStakeholders +TransparencyEnsuring guiding collation Renewal Effective ExecutionVision + Values Training +Strategy time / money /Plans supplies /Goals / peopleObjectives Tactics / ActionsProcedures / ProtocolsClear / consistent / Repeatable Process relentless 32. SII 2010Some thoughts on measurement Less is more Results not activity Easy / Hard Post and review Help not punishment 33. SII 2010 Assessing the Strategic Situation Simplicity Complexity CertaintyUncertainty KnowingForecasting ProactiveAdaptive StrategicScenario Planning Planning 34. SII 2010Scenario Planning Is a process that stimulates imaginative and creative thinking to better prepare an organization by rehearsing for the future toavoid surprises and break through the illusion of certainty.Probability / Impact ---- Trigger Points 35. SII 2010Review of the plan? Twice yearly Strategic Planning Retreat 1 to 2 days Monthly quick check meetings 2 3 hours Weekly Senior team alignment review 1 hour or less Carry plan to every strategic meeting 36. SII 2010 Summary of Key Ideas Major elements: thinking, planning, execution, review Strategic thinking = study + experience + pattern recognition Strategy = bold bets on resource allocation. What you say No to is a big part of strategy. Planning is a process. Analysis is critical but it is not strategy. More, better, faster is not a strategy. This is not blueprinting the future. Keep it simple, focused and extremely well communicated. A plan for execution MUST be part of the Strategic Plan. Alignment + support + measurement + tracking + reward / punishment Contingency planning = probability & impact / trigger points 37. SII 2010 THANK YOUIf you have any questions at all please do not hesitate to send a note or call.My email address is: john@johnspence.com Also, you might find value in the ideas I share in my blog. You can sign up for it at:www.johnspence.com/blogThese slides and the workbook have already been uploaded to: www.slideshare.net/johnspence