Terra Grande District Meeting STRATEGIC PLANNING January, 2016 Mauricio A. Hernandez, MBA, CPIM, CSCP

Terra Grande District MeetingSTRATEGIC PLANNING

January, 2016

Mauricio A. Hernandez, MBA, CPIM, CSCP

2 © APICS Confidential and Proprietary

Agenda Objective What is Strategic Planning Why Strategic Planning is needed The process Lessons Learned Q&A


Objective of this presentation

Some benefits

• Revisit our vision and mission statements

• Clarify our objectives

• People and resources working towards common strategies and goals

Share the strategic planning methodology used by the APICS Houston Chapter


What is Strategic Planning• For an APICS chapter, strategic planning is the process of

deciding WHAT it intends to be in the future and HOW it will get there.

• Strategic planning is finding the best future for your chapter and the best path to reach that destination.

• According to Henry Mintzberg, professor of management at McGill University in Montreal, Quebec, most of what is commonly called strategic planning is actually strategic programming,” ...the articulation and elaboration of strategies, or visions, that already exist”.


Why Strategic Planning

Changes in local/regional economy APICS Corporate evolution Competition Re-energize the mission of your chapter Formalize goals Many more


Strategic Planning 4 Steps1. Situation analysis2. Define/select the strategic priorities3. Define functional goals4. Implement/Revisit


Strategic Planning session• Before the meeting

• Input from board is gathered before the meeting• Pre-read documents sent before the session

• Day of the meeting• Typically a Saturday meeting ( 4 hrs)• Face to Face• Time management is critical

• Objective of the planning session are:• Define top 5-7 strategic priorities• Define functional goals for each VP• Agreement/commitment for next steps

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwib8v3q7M_KAhUkvYMKHWoGB4sQjRwIBw&url=http%3A%2F%2Fdubai-computer-services.com%2Fstrategic_planning.html&psig=AFQjCNG_naqP1ltzEPhc668FJvcqG7cgNg&ust=1454185323526284


Strategic Planning 4 Steps1. Situation analysis

APICS Corporate Facts and their Strategic Priorities Chapter Facts Vision/Mission Opportunities and Threats Client’s, Customer’s, and Stakeholder’s Needs Competitors and Allies Strengths and Weaknesses Critical Issues for the Future

2. Define the strategic priorities Select 5-7 key priorities for your chapter

3. Define functional goals Associate goals to different functions of the chapter(VP,

Treasurer, etc)

4. Implement/Revisit Associate goals to different functions of the chapter(VP,

Treasurer, etc)


APICS Corporate Facts – Financials

* As of end of 2014

* As of end of 2014


2016 to 2018 Budget Overview

$2,883 $2,911

$977 $498 ($1,277)($1,064)

$1,960

$3,426 12.6% 12.1%

4.1%1.9%

-4.6% -3.3%

5.6%

9.1%

-6.0%-4.0%-2.0%0.0%2.0%4.0%6.0%8.0%10.0%12.0%14.0%

-2,500

-1,000

500

2,000

3,500

5,000

2011 2012 2013 2014 2015 LBE2016B 2017B 2018B

Net Operating Income (Loss) Trends

Operating Income ($000s) Operating Margin

22,901 24,031 23,70926,654

27,600

31,82534,759

37,506

+22.4% +4.9% -1.3% +12.4% +3.5% +15.3% +9.2% +7.9%-10.0%-5.0%0.0%5.0%10.0%15.0%20.0%25.0%

20,00022,50025,00027,50030,00032,50035,00037,50040,000

2011 2012 2013 2014 2015LBE

2016B 2017B 2018B

Revenue Trends

Revenue ($000s)% change vs. prior year


A Very Successful 2015

2015 was highest performing year ever for CSCP with over 5,838 Learning Systems sold!

And 2016 is off to a very strong start!


APICS Corporate– Key programs/Areas of Investment

* As of end of 2014


APICS Corporate – Five Strategic Priorities Enhance capabilities to sell to corporations Increase focus on international markets Optimize and enhance the current North American chapter model Address workforce development opportunities Ensure relevance to millennials globally

In addition to the strategic priorities, the Board asked the staff to develop a new membership strategy and complete the operational and strategic integration of the APICS SCC.


APICS Corporate – Five Strategic Priorities Enhance capabilities to sell to corporations

STRATEGIC INTENT o Address a full range of benefits that advance corporate supply chain performance delivered both by

APICS and via the APICS partner networko Tailor benefits delivered based on specific corporate needso Increase value proposition to individual corporate customers as they increase their engagement with

APICSo Firmly establish APICS as the preferred partner enabling supply chain success for corporations across

the globe Optimize and enhance the current North American chapter model

STRATEGIC INTENTo Build a North America channel to meet needs of end-customers ando Fulfills unmet market potentialo Ensures coverage across current and future APICS product and serviceso Incentivizes channel partners (chapters) based on their market successo Enables channel partner and end-customer flexibility in working with APICSo Simplifies and standardizes business models

OBJECTIVESo Implement a tiered channel structure based on behavioral and financial performanceo Expected Impact: Tier structure will incentivize high performing chapters to do more and motivate

low performing chapters to improve or make alternative decisions.o Add new channels; APICS direct, consulting firms or training organizations.o Expected Impact: New channel partners will improve coverage, give companies alternative ways

to buy and provide (healthy) competition in the marketplace.o Allow APICS qualified instructors to affiliate with multiple channelso Expected Impact: Instructors affiliating with multiple channels increases access and allows all

channels to use APICS qualified instructors to deliver training.


APICS Corporate – Five Strategic Priorities Address workforce development opportunities

STRATEGIC INTENTo To create pathways for high demand supply chain management careers; partner to prepare individuals

for those careers in the most effective way possible; and ultimately give them the knowledge they need to do strategic work and advance.

o Strategy tenets:o Grow the number of individuals pursuing careers in supply chain and operations management.o Assure that graduating students are able to apply their education on the job.o Certify professionals to validate their knowledge and skills.o Advance professionals throughout their careers by offering content and programming individuals need to

move into more strategic positions. Ensure relevance to millennials globally

STRATEGIC INTENTo Closely aligned with our membership and workforce strategies, our aim is to clearly differentiate our

products, ensure the relevancy of our marketing and experiences, and fuel growth and continued organizational success by meeting the need of this key –and growing –customer segment.

o Strategy tenets:o Increase millennial engagement with APICSo Grow the number of millennial memberso Leverage new membership strategy to better define millennial value propositiono Offer more meaningful content and experiences to create lifelong members and advocateso Apply previously defined guideposts across product planso Objectives and metrics related to this strategy measure our progress on successfully executing the

strategy tenets.


APICS Corporate – Five Strategic Priorities Membership

STRATEGIC INTENTThe strategic intent of the membership strategy is to build a customer-centric membership strategy that Demonstrates we understand what our individual and corporate members are seeking to accomplisho Enables APICS and our affiliated organizations to be their partner in success.o Delivers a membership benefits package that can be customized to meet specific individual and

corporate member needs; and evolves as the member advances in his or her careero The membership strategy is highly dependent on having in place the technology that allows APICS to

mass customize membership benefits to meet the specific needs of each individual member.o The strategy will be implemented over the course of the next two years.


2015 Strategic PrioritiesPriority Status MetWorkforce Development 3 of 4

metrics

Membership 2 of 3 metrics

Corporate 1 of 3 metrics

Millennial 3 of 4 metrics

North American Channel 2 of 4 metrics

International 2 of 3 metrics


Houston Chapter FactsTGD 2014 Revenues

Chapter APICS Houston Chapter APICS Monterrey Chapter APICS ColoradoChapter APICS Mexico S.A. De C.V.

Chapter APICS Capitulo Queretaro

Chapter APICS Chihuahua

Chapter APICS Capitulo Guadalajara AC

Chapter APICS El Paso/Juarez

Chapter APICS Oklahoma City

Chapter APICS North Texas Chapter APICS Tulsa Chapter APICS Greater Fort Worth

Chapter APICS Rio Grande Valley

Chapter APICS Northern Colorado

Chapter APICS Al-buquerque

Chapter APICS Pike's Peak Chapter APICS Ark-LA-Tex Chapter APICS Puebla Tlaxcala

Chapter APICS Austin Chapter APICS South Cen-tral Texas

Chapter APICS Northwest Arkansas

Chapter APICS First Ar-kansas

Chapter APICS Northeast Arkansas

Chapter APICS East Texas

TGD 2013 Revenues

Chapter APICS Houston Chapter APICS Monterrey Chapter APICS ColoradoChapter APICS Mexico S.A. De C.V.

Chapter APICS Capitulo Queretaro

Chapter APICS Chihuahua

Chapter APICS Capitulo Guadalajara AC

Chapter APICS El Paso/Juarez

Chapter APICS Oklahoma City

Chapter APICS North Texas

Chapter APICS Tulsa Chapter APICS Greater Fort Worth

Chapter APICS Rio Grande Valley

Chapter APICS Northern Colorado

Chapter APICS Al-buquerque

Chapter APICS Pike's Peak Chapter APICS Ark-LA-Tex Chapter APICS Puebla Tlaxcala

Chapter APICS Austin Chapter APICS South Cen-tral Texas

Chapter APICS Northwest Arkansas

Chapter APICS First Arkansas

Chapter APICS Northeast Arkansas

Chapter APICS East Texas


Situation Analysis….cont’d1. Vision/Mission2. Opportunities and Threats3. Client’s, Customer’s, and Stakeholder’s Needs4. Competitors and Allies5. Strengths and Weaknesses6. Critical Issues for the Future


Vision examples1. Oxfam: A just world without poverty (5 words)2. Feeding America: A hunger-free America (4 words)3. Human Rights Campaign: Equality for everyone (3)4. National Multiple Sclerosis Society: A World Free of MS (5)5. Alzheimer’s Association: Our vision is a world without Alzheimer’s (7)6. Habitat for Humanity: A world where everyone has a decent place to live. (10)7. Oceana seeks to make our oceans as rich, healthy and abundant as they once were.

(14)8. Make-A-Wish: Our vision is that people everywhere. will share the power of a wish (13)9. San Diego Zoo: To become a world leader at connecting people to wildlife and

conservation. (12)10. The Nature Conservancy: Our vision is to leave a sustainable world for future

generations. (11)11. Ducks Unlimited is wetlands sufficient to fill the skies with waterfowl today, tomorrow

and forever. (13)12. In Touch Ministries: proclaiming the Gospel of Jesus Christ to people in every country

of the world. (14)13. NPR, with its network of independent member stations, is America’s pre-eminent news

institution (12)


Vision examplesA Vision Statement:• Defines the optimal desired future state of what an organization wants to achieve over time;• Provides guidance and inspiration as to what an organization is focused on achieving in five, ten, or

more years;• It is what all employees understand their work every day ultimately contributes towards accomplishing

over the long term;

A Mission statement:• Defines the present state or purpose of an organization. Answers three questions about why an

organization exists. Defines: WHAT it does, WHO it does it for and HOW it does what it does.

• Is written succinctly in the form of a sentence or two, but for a shorter timeframe (one to three years)

NPR Vision, with its network of independent member stations, is America’s pre-eminent news

institution Mission: To work in partnership with member stations to create a more informed public – one

challenged and invigorated by a deeper understanding and appreciation of events, ideas and cultures.

Toyota Vision Statement: To be the most successful and respected car company in America. Mission Statement: To attract and attain customers with high-valued products and services and

the most satisfying ownership experience in America.


Vision1) <<capture feedback from boards and volunteers>>2) <<capture feedback from boards and volunteers>>3) …4) …5) …


Mission1) <<capture feedback from boards and volunteers>>2) <<capture feedback from boards and volunteers>>3) …4) …5) …


Describe questions, ideas, or concerns you have about our present purpose

1) Example: It is not clear what our purpose is2) Example: low class registration3) Example: Difficulty to sell CSCP classes4) <<capture feedback from boards and volunteers>>5) <<capture feedback from boards and volunteers>>6) …7) …8) …


Identify what might be the best purpose for our organization in the future and Describe what our chapter might accomplish in the coming years

1) Example: Drawing millennials/new blood as members or board members2) Example: Attracting new members, especially recently graduated from

colleges3) Example: focus on retaining membership through the current downturn in

the O&G environment4) <<capture feedback from boards and volunteers>>5) <<capture feedback from boards and volunteers>>6) …7) …8) …


Identify who will be served(target groups)1) Example: Supply Chain students, young professionals, managers for selling

classes, current and potential members, members of other professional societies

2) Example: Young professionals, future and existing members3) <<capture feedback from boards and volunteers>>4) <<capture feedback from boards and volunteers>>5) …6) …7) …


Vision/Mission

APICS Houston Chapter VisionBe the leader of supply chain and operations management community

APICS Houston Chapter MissionMaximize the benefits for our community achieved through the SC and OM BoK


Opportunities and ThreatsClients, customers, stakeholders

1) Example: Young professionals – O/T2) Example : We need to become more effective in harnessing the energy of

people who want to volunteer. We are extremely weak in this area - O3) <<capture feedback from boards and volunteers>>4) <<capture feedback from boards and volunteers>>


Opportunities and ThreatsCompetitor and allies Social, cultural, economic, political, or

technological forces1. Example - Professional societies –

O/T1. Example - Inability to engage members willing to serve

on Board – T


Describe existing or possible new target

groups

Their needs Ways to meet those needs

1. Young professionals

2. Local businesses

3. Job-Seekers4. Employers

1. Cost effective education, networking, career guidance

2. Knowledgeable and professional employees

3. Find a job, expand their networks4. Find Qualified Candidates and avoid

headhunter fees

1. Public CPIM and CSCP classes, PDMs with increased young professional attendance

2. CPIM and CSCP classes, PDMs, conferences / job fairs

3. Job Boards, post resumes via our website4. Become a one-stop shop for candidates

Client’s, Customer’s, and Stakeholder’s Needs


Competitors Compete for Our relative advantages

Our relative disadvantages

1. ISM (Institute for Supply Management)

1. Membership, members’ time and attention

1. World-wide name recognition

1. No distinctive competencies or competitively superior Resources

Allies How might we team up ?

1. Colleges 1. Student chapters or student-focuscontact with school officials

Competitors and Allies


Strengths and assets Weaknesses and liabilities1. Strong and dedicated core group

of volunteers/board2. Strong instructor base

1. Company Coordinator program2. Chapter lacks membership value proposition outside of

discounts, Membership churn, Lack of value to certified members

Strengths and Weaknesses


Strategic Planning 4 Steps1. Situation analysis

Where is APICS Corporate now, what is their Strategy, what are their objectives?

Where is APICS Houston ? Vision/Mission Opportunities and Threats Client’s, Customer’s, and Stakeholder’s Needs Competitors and Allies Strengths and Weaknesses Critical Issues for the Future

2. Define the strategic priorities

3. Create the plan4. Implement the plan


Define strategic issues/priorities for the Future

1. Workshop activityo Based on the following slide we will define as a group the 5 to 7 Key

Strategic Priorities for the chaptero We will then define goals for each functional areao We will outline specific actions for each functional goal


Strategic Priorities

1. Example: We should keep doing the joint PDMs with other associations, need to find ways to energize the company coordinators

2. Example: More members, supporters, volunteers. Younger crowd is key. Maybe we can focus more on young professionals and make sure they keep attending activities.

3. Example: How can ensure the viability of the chapter amid new market conditions

Strategic Priorities for the Future


Strategic Priorities

1) <<SELECT YOR TOP STRATEGIC PRIORITIES>>2) Example: Improve APICS brand awareness(be present at more conferences,

More Plant Tours, functional goal), 3) Example: Reach out to other industries, 4) Example: Grow the Company Coordinator program

Strategic Priorities for the Future


Create the Strategic Plan


Lessons Learned1. This is not a Board meeting, focus on strategy2. Listen/Respect3. Compromise and reach consensus quickly4. Full day vs 4 hours5. Capture data before strategic planning meeting.6. Focus on a few strategic Priorities


Documents

Terra Grande District Meeting STRATEGIC PLANNING January, 2016 Mauricio A. Hernandez, MBA, CPIM, CSCP