DIY-Strategic Planning

Let's start by talking about strategic focus.members fill in the gaps. On the contrary, it
Leadership models and new business models aremeans carefully coaching the management team
key ingredients to success in the 21st century.through a thinking process. Often, the actual
The successful 21st century business model isstrategic plan is even less important than the
built around servant style leadership with a focusdevelopment and growth of the team members
on strategic thinking by harnessing the creativityparticipating in the process. The strategy team
and innovation of the employees. The vehicle toshould be trained on the process you intend to
accomplish this is the strategic planning processfollow in developing the strategic plan. Once that is
Strategy serves as the organization compass andcompeted the CEO/President should present the
roadmap to future success. Strategic thinkingvision of the future with copies for everyone and
must be clear and communicated effectivelythen excuse himself from the meeting to allow
throughout the organization. It is not somethingthe strategy team to tear the end game apart
you can leverage with technology. It isn'tand put it back together. The President will have
something you will find in the latest businessexplained that they have the right and the
manual. It is embedded in the minds of yourobligation to challenge the end game if they do
management team and most of your employees.not agree with any part of it. However, any
It is your employees who are on the front linechallenge to any portion must be accompanied by
and know what is really going on with youralternative recommendations. The concept is to
customers and your markets. It requiresfinalize a "Vision for the Future" that everyone
effective leadership to release the power of theowns.
employees in building a strategic roadmap to theStep Four---- The SWOT analysis
future.The team will conduct a SWOT (strengths,
Defining objectives and developing initiatives andweaknesses, opportunities and threats) analysis to
action plans to meet those objectives is the basisidentify critical constraints and potential
of strategic planning. However, it all starts with anopportunities for growth.
end game, a "Vision for the Future."Step Five --- Developing the Critical Core
Strategic planning is a management tool. It is usedInitiatives from the Vision for the Future
to help an organization clarify its future direction -Critical core initiatives are over arching initiatives
to focus its energy, and to help members of thethat are found within the Vision for the Future. An
organization work toward the same goals. Theexample may be defined as a human resource
planning process adjusts the organization'sinitiative for becoming employer of choice. There
direction in response to a changing environment.are many independent action steps (Strategic
Strategic planning is a disciplined effort to supportImplementation Plans - SIPs) that will be required
fundamental decisions and actions that shape andto accomplish the Critical Core Initiative (CCI).
guide what an organization is, what it does andThey may include training, education, leadership
why it does it, with a focus on where it wants todevelopment, compensation and benefits etc.
go and how it is going to get there.Identifying the CCI's first is necessary to move
Fundamental decisions, actions and choices muston to the next step which is creating SIPs for
be made in order to develop a plan that provideseach CCI.
a Roadmap on "How to get there from Here."."Step Six--- Prioritize the CCI's and identify
The plan is ultimately no more, and no less, than aindividual SIPs for each CCI
set of decisions about what to do, why to do it,A Strategic Implementation Plan (SIP) is a set of
and when and how to do it.tasks that supports a Critical Core Initiative and
The scope of the strategy development processtherefore creates fundamental change in the way
for any company is dependent upon individualyou do things. SIP work deals with long-term
business needs. The strategic planning process is aimprovement and change, balancing concern for
time and resource-consuming endeavor thattoday with concern for the future and is a
involves many people in the organization. Thisfundamental task of managerial decision-making.
process includes both tactical and strategicWork against SIPs deals with improving things for
application. The DIY process assumes that youtomorrow.
have a good handle on both your internal andEach Critical Core Initiative is supported by a set
external environment. If you don't you may wantof SIPs that contain a sequenced set of tasks,
to consider hiring a consultant to do an internalschedules, and named responsible individuals. The
assessment and survey your customers andcreation of SIPs indicates that the chosen area is
vendors to analyze your external environment.one that provides a high payoff in terms of
Hiring a consulting firm can cost as little asinnovation and managed change.
$10,000 for a simple two day facilitation toStep Seven --- Assign sections of the strategy
upwards of $100,000 for comprehensivetemplate to be completed by different team
involvement by the consulting firm during themembers
entire process.Developing the strategy document from team
So, if you are not inclined to hire an outsidehomework assignments completed over the
consultant, you may want to follow this ten stepprevious weeks is a matter of following the
process for DIY (Do It Yourself) Strategictemplate that has been modified to meet your
Planning. Although it isn't possible to describe inspecific company needs.
great detail the entire process in an article (itStep Eight --- The accountability process
would require 50 pages) the following is anThe key managerial tool to ensure steady,
overview of the process.consistent progress on SIP tasks is the formal
The Ten Step ProcessOperational Review Meeting (ORM). This is the
Let's identify the steps first and then we'll discussfoundation to insure that the strategic plan is
each one in a little more detail . I cannotsuccessful. The ORM is held monthly. The purpose
emphasize enough that the true value of aof the ORM is to:o Clearly understand the status
strategic plan is not in the document itself. It is inof your key initiatives.o Keep executive focus on
the process of creating it, involving many of yourstrategic, rather than just urgent, issues.o
employees from the bottom up. This empowersFacilitate communication and support throughout
them to be more effective and better-informedthe executive team and the company.o Formulate
leaders, managers and decision makers.emergency responses to company-wide threats
1. Select the strategy team and send a companyor opportunities.o Leverage all appropriate
wide communicationcompany resources while maintaining proper
2. Create a Vision for the Future (End Game)accountability for performance.
3. Preparation -----Secure an off site location forThe ORM should be attended by members of the
the kick off meeting which includes training theStrategy Team, executive management and
team on the strategic planning process. Purchaseother senior managers. It will follow a formal
a strategic planning template, download one fromagenda and discussions will be driven by two
the web or e-mail for a generic sample.objective measurements: performance of Key
4. Complete a SWOT analysis. (Strengths,Performance Indicators (KPIs) and progress of
Weaknesses, Opportunities & Threats)SIP task completion. SIP and action item owners
5. Identify the critical core initiatives that arewill be held accountable for achieving the desired
necessary to support the vision for the futureresults by the due date indicated on the plan. The
and to achieve its objectivesentire team will be held accountable for meeting
6. Develop strategic implementation plans (SIPs)SIP goals.
that support the identified critical core initiativesStep Nine --- Developing the presentation for
7. Prioritize the CCI's and SIP's based on theapproval
biggest impact on the bottom line in the shortestThe strategy team will provide the strategy
period of time. Modify and complete thedocument to ownership at least one week in
document template to fit your company strategyadvance of the formal presentation.
8. Develop an accountability process based on aRepresentatives of the strategy team will present
structured monthly strategic reviewthe plan and defend it from a considered
9. Develop a presentation of the strategy forcorporate challenge. The purpose of the challenge
approval by the CEO, owners or Board ofis to ensure that the plan is well thought out and
Directors.based on a realistic assessment of the company's
10. Develop a Roll Out Strategy to explain therisks and constraints. The presentation will also
strategic plan to the entire companydemonstrate the degree of commitment and
Step One --------- Selection and Communicationownership by the team. The objective of the
It all starts with communication. The very firstmeeting is to formally endorse the strategy for
piece of information should be the announcementthe company. If necessary, the team will revise
to all employees that the company is embarkingand re-present the plan to obtain ownership
on a planning process for the future. This memoapproval.
should be sent from the President asking forStep Ten ---- The Roll Out Process
everyone's support. (A sample memo is availableAfter formal acceptance, the President and two
from ) The memo will likely announce who theto three strategy team members should schedule
strategy team members are and ask formeetings to introduce the strategy to the entire
everyone to congratulate them and provide inputmanagement team and all other employees, thus
at every opportunity. CAUTION: Make sure thatformally launching the strategy. This should be a
you have talked to any employee in advance thatbig deal and should be completed as quickly as
was not picked for the strategy team that maypossible. In person presentations by executive
feel that they should have been.management and strategy team members is
Once the team is announced and the processhighly recommended.
starts make sure you continue to keepStrategy Development Overview
employees aware of the progress and solicit theirStrategic planning is a management tool. It is used
input. A minimum of a monthly memo should beto help an organization clarify its future direction -
issued. The strategic planning process can taketo focus its energy, and to help members of the
from 6 weeks to 12 weeks so it is important toorganization work toward the same goals. The
keep everyone informed without releasing tooplanning process adjusts the organization's
much detail.direction in response to a changing environment.
The strategy team should include a seniorStrategic planning is a disciplined effort to support
accountant, and should consist of between sevenfundamental decisions and actions that shape and
and ten members. Team selection should beguide what an organization is, what it does and
based on competence, integrity, work ethic,why it does it, with a focus on where it wants to
leadership skills, and future growth potential withingo and how it is going to get there.
the Company. The team will formulate andDiscipline is a prerequisite to this process because
present the strategic document to the Presidentit requires laser like persistence to result in a
CEO and the Board of Directors. It is critical thatproductive strategic planning initiative. The process
all employees are empowered and encouraged toraises a sequence of questions that helps planners
communicate their ideas and issues with anyexamine current reality, test assumptions, gather
member of the strategy team. This processand incorporate information about the present and
ensures accountability and ownership of theperform trend analysis on the future industry
strategy at every level in the organization.environment. The prioritization of initiatives and
Step Two --- A Vision for the Future (The EndSIPs is an essential step. Although your strategic
Game)plan will cover a five to seven year period
The Vision for the Future (End Game) in businessprioritized SIPs are worked on during the first
is simply defining what winning the game in yourtwelve to eighteen month period based on
business is really about. What does winning mean.bandwidth and resources while other CCIs and
Just exactly what do you want your company toSIPs are deferred. It is much more effective to
be when it grows up? Ask yourself the followingcompletely finish three or four SIPs pertaining to
questions from the perspective of looking five toone or two CCI's than to work on ten or twelve
seven years into the future.SIPs and accomplish nothing.
1. What markets should your company be servingFundamental decisions, actions and choices must
five years from now?be made in order to develop a plan that provides
2. What products should you be distributing?the roadmap to the future. The plan is ultimately
3. Who are your primary competitors?no more, and no less, than a set of decisions
4. What are your strengths?about what to do, why to do it, when and how
5. What are your competitors' strengths?to do it. CEO Strategist is in the process of
6. How has your marketing strategy changed?producing a three CD set based on the strategic
7. What are your core competencies?pyramid methodology for release by 1/1/2007
8. What is the size of your revenue stream?with a workbook that will walk you through every
9. How is your revenue stream segmented?aspect of the DIY strategic planning process in
10. Do you have a Human Resource Developmentgreat detail and provide all the forms and
plan?templates necessary for you to successfully
The CEO/Owners should create the "Vision forcomplete a strategic plan with your team. E-mail
the Future" (End Game) for presentation to theto reserve an advance copy of this program. In
strategy team.the mean time, you can request a copy of a
Step Three --- Preparationgeneric template or get Rick's recently published
Running a strategic planning process is not justbook "Leading the Pack" which has six "end game
designing a template and having the teamvisions of the future examples" in the appendix.