Foundations of Strategic Planning

The Roadmap for Growth

December 4, 2014

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9:00 -10:00am Strategic Planning Presentation 10:00 -10:15am Break/Case Studies 10:15 -11:00am Case Studies Continue 11:00 -11:30am Presentations

Agenda

• The Essence of Strategic Planning

• Effectively developing a strategic planning process—How?

– Key Components of a strategic plan

– Simple steps to create a Strategic (Marketing) Plan

– Key Criteria to use to Measure and Benchmark Success

• Case Study Discussion/Presentations

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Questions

• Why do you think small businesses are challenged when it comes to growth?

• How many of you have a strategic/marketing plan?

• If so, how often do you fine-tune it?

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Questions

• How would you define Strategic Planning & Marketing?

• And, why are these important to your business?

• What is the role of Strategic Marketing Planning and why is it important?

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Challenge

Business owners have a tendency to think in the business versus

thinking about the business

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In other words…

Bogged down with the daily details versus thinking longer-term

about the strategic approach focused on…

GROWTH

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Paradigm Adjustment

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Day to Day Longer-

term Planning

Strategic Planning

Case Study

• What happens if you don’t change or fine tune your plan? Think…

Blackberry

Polaroid

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Case Study

• What happens if you do change or fine tune your plan? Think…

American Red Cross

IBM

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American Red Cross

• Originally, focused primarily on blood programs/donations and then introduced its first aid, water safety, and public health nursing programs

• Since 2006, working with FEMA with disaster

• In 2007, shifted the Mission statement Supporting families in disaster

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American Red Cross

Vision Statement

• The American Red Cross, through its strong network of volunteers, donors and partners, is always there in times of need. We aspire to turn compassion into action so that:

– all people affected by disaster across the country and around the world receive care, shelter and hope;

– our communities are ready and prepared for disasters;

– everyone in our country has access to safe, lifesaving blood and blood products;

– all members of our armed services and their families find support and comfort whenever needed; and

– in an emergency, there are always trained individuals nearby, ready to use their Red Cross skills to save lives.

Source: American Red Cross

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American Red Cross

Mission Statement

The American Red Cross prevents and alleviates human suffering in the

face of emergencies by mobilizing the power of volunteers and the generosity of donors.

Source: American Red Cross

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IBM • Primarily focused on tabulating machines (International Business

Machines) desktops

• Market turmoil (advent of PC’s, et. al.) in the 80’s/90’s

• Hired Louis V. Gerstner in 2003 – Brought with him a customer-oriented sensibility and the strategic-

thinking expertise

• Software integration for Fortune 500 companies Source: IBM

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IBM

Vision Statement

We pledge boldness in the second century to create a company that never stops moving toward the future. Ever Onward.

Source: IBM

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Strategic Marketing Planning

• The role of strategic marketing is to:

– Determine a longer-term vision for your business

– Identify relevant consumers to target

– Identify/build/enhance ongoing relationships with

consumers and customers

-Strategically target customer segments and focus on profitable growth

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Strategic Plan Components

• Define…

– Vision/Mission

– Growth Opportunities

– Goals/Objectives

– Strategic Priorities

– Tactics

– Key Metrics, including resources required

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Vision Statement

• Longer-term

• More aspirational

• Focused, concise and precise

• Not to be confused with a Mission statement, objectives and strategies

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Examples

• As we move towards our goal of being a world-class university, we will support research on a global scale

• The XYZ Company will inspire its employees to be the best they can be.

• Our vision is to bring our students into the 21st century through innovation and modern technology.

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Mission

• The company’s purpose and reason for being

• Why your employees go to work everyday

• Reflects organizational mission and reinforces long-term direction

• Provides direction for goal-setting

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Examples

• Xerox

“Do Great Work”

• American Red Cross

“Provide for victims of disaster”

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Goals

• Provide you with an end-game

• SMART Objectives

– (S)pecific

– (M)easurable

– (A)ctionable

– (R)ealistic

– (T)ime-based

• Not to be confused with strategies

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Starts with a Situation Analysis

• Current assessment:

– Internal operations

– Competition

– Products/Services

– Pricing

• In essence, helps you to identify “gaps”

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Leads to SWOT Analysis

• (S)trengths

• (W)eaknesses

• (O)pportunities

• (T)hreats

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Types of Questions to Ask

• What do we do well?

• What’s the competition doing?

• What are clients seeking?

• Can we fill customer’s expectations?

• Environmental considerations?

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And, Then Identify…

• Points of Difference

• Uniqueness

• Skills, Technologies and Resources

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Why Important to YOU?

• Ever-changing, dynamic market

• Client expectations changing

• Demonstrates your understanding of the market and how to approach it

• Companies do business with those whom understand their business needs and expectations

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Plan Creation (Simple Steps)

• Understand who you are and what your business represents

• Identify or refine company’s vision and mission

• Establish realistic, measureable goals

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Simple Plan

• Clearly identify and target relevant customers

• Develop a marketing plan which addresses market segments identified and how you're going to reach them

• Establish budgetary resources

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Simple Steps

• Establish measurement criteria

• Track results in a timely manner

• Build contingency plans

• Be transparent and FLEXIBLE

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Key Performance Indicators (KPI’s) • Sales/Revenue

• Margins

– Cost of Goods Sold – Gross/Net Margins – Profitability

• Customers

– Acquisition/retained – Defections

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• Develop a Strategic Roadmap focused on achieving business goals including alternatives and fact-based recommendations

• Understand customer’s expectations and needs

• Develop Integrated Marketing Communications

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Improving Your Process

Tips

Case Study

for Discussion

• Review the case in detail and develop a strategic marketing plan which captures the following:

– Background

– Key Issues

– 2015 Objectives/Strategic Priorities

– Identify Two to Three Alternatives for Consideration

– Recommended Alternative Approach with Rationale

– Measurement Criteria

• Identify a presenter

• Final presentations

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Thank You! • Site: leegroupinnovation.com

• Phone: (734) 507-0866

• Email: mark@leegroupinnovation.com • Twitter: @leegroup

• Linked In: www.linkedin.com/in/leegroup

• Facebook: www.facebook.com/mark.s.lee.31

• “Small Talk” Radio/Blog: cbsdetroit.com, WXYT 1270/Crain’sDetroit.com

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