| "body"> | | | | can be an extended process. The organization will |
| Strategic planning is a management tool. It is used | | | | begin to realize benefits from the start. |
| to help an organization clarify its future direction - | | | | Fundamental benefits to the planning process |
| to focus its energy, and to help members of the | | | | include:o A framework and a clearly defined |
| organization work toward the same goals. The | | | | direction with unified supporto A clear vision and |
| planning process adjusts the organization's | | | | purpose that is owned by all employeeso |
| direction in response to a changing environment. | | | | Commitment to the organization and its goals by |
| Strategic planning is a disciplined effort to support | | | | the employeeso Set priorities that match |
| fundamental decisions and actions that shape and | | | | company resourceso Trend analysis that creates |
| guide what an organization is, what it does and | | | | confidence in the ability to take riskso |
| why it does it, with a focus on where it wants to | | | | Accountability |
| go and how it is going to get there. | | | | Readiness Factors |
| Discipline is a prerequisite to this process because | | | | The planning process is a major endeavor and |
| it requires laser-like persistence to bring about a | | | | timing is critical. There are certain organizational |
| productive strategic planning initiative. The process | | | | elements that must be in place in order to ensure |
| raises a sequence of questions that helps planners | | | | that the planning process will provide the |
| examine current reality, test assumptions, gather | | | | maximum benefit to the organization. You must |
| and incorporate information about the present, | | | | clearly understand the organization's current state |
| and perform trend analysis on the future industry | | | | and readiness to engage in the planning process. |
| environment. | | | | There are a number of preparatory steps that |
| Fundamental decisions, actions and choices must | | | | should be concluded prior to the start. An internal |
| be made in order to develop a plan that provides | | | | honest-gut-check assessment is recommended. |
| the "Footprints to Success." The plan is ultimately | | | | Preferably an outside consultant with a fresh pair |
| no more, and no less, than a set of decisions | | | | of eyes does this. Additionally, as mentioned |
| about what to do, why to do it, and when and | | | | earlier, third party customer, vendor and |
| how to do it. | | | | employee surveys should be conducted. Other |
| The scope of the strategy development process | | | | items to secure at the onset include:o A |
| for any distributor is dependent upon individual | | | | commitment on the part of executive |
| business needs. The strategic planning process is a | | | | management and ownershipo Resolution of all |
| time and resource-consuming endeavor that | | | | crises and life threatening issueso Ownership and |
| involves many people in the organization. This | | | | board supporto A commitment of necessary |
| process includes both tactical and strategic | | | | resourceso A willingness to think outside the box |
| application. | | | | and to look at new approaches to performing and |
| A critical factor in developing a strategic plan is | | | | evaluating the "business"o A basic understanding |
| looking at the end game first. Just exactly what | | | | of scenario planning |
| do you want your company to be when it grows | | | | The key resources required for planning include |
| up? Ask yourself the following questions from the | | | | staff time, executive management time and |
| perspective of looking five years into the future. | | | | finances (e.g., market research, consultants, etc.). |
| 1. What markets will your company be serving | | | | Staffing demands include:o Collecting and analyzing |
| five years from now? | | | | datao Scenario planningo Engaging key |
| 2. What products will you be distributing? | | | | stakeholderso Gathering historical financial |
| 3. Who are your primary competitors? | | | | information, projecting future budgets and cash |
| 4. What are your strengths? | | | | flow projectionso Analyzing options and |
| 5. What are your competitors' strengths? | | | | consequences for potential organizational and |
| 6. How has your marketing strategy changed? | | | | program strategieso End game analysis |
| 7. What are your core competencies? | | | | Project Management |
| 8. What is the size of your revenue stream? | | | | Project management becomes critical to the |
| 9. How is your revenue stream segmented? | | | | strategic planning process. Execution is the key to |
| These are just a few sample questions, but don't | | | | success. People have different expectations when |
| stop there. After you've tried to visualize your | | | | they hear the word "planning." |
| corporate profile five years in the future, the | | | | Everyone must understand and share the same |
| next step is scenario planning. It's the old "What | | | | set of expectations. It is very helpful if one or |
| If" analysis. What if you lose your major product | | | | two key staff members are skilled in project |
| line? What if your three biggest competitors | | | | management. |
| become part of a consolidator roll up? What if | | | | A team leader will facilitate the development of a |
| you dramatically change your product offering so | | | | work plan which is an outline of the steps and |
| it doesn't even resemble the industry you | | | | activities that will take place during the planning |
| represent today? How will e-business impact your | | | | process. The plan specifies the tasks, outcomes |
| strategy? Recognize that an e-strategy should | | | | and resources to be expended, as well as the |
| not exist in isolation from your overall company | | | | people responsible for each phase of the process. |
| strategy. Remember that e-anything is only a tool | | | | How do you get started? |
| while your company vision is the guide on how | | | | 1st Priority: |
| you use your tools. | | | | If you have determined your readiness factors |
| Follow the Strategic Thinking Process | | | | through assessment and you have performed the |
| Strategic thinking by a strategy team leader | | | | necessary preparatory research, then you are |
| provides a platform for the distributor that | | | | ready to launch the process. The following items |
| identifies the "end game" vision, determines core | | | | should become your first priority.o Create a |
| initiatives to achieve the vision, develops | | | | Planning Committeeo Assign a team leadero |
| associated SIPs (Strategic Implementation Plans), | | | | Identify specific ongoing initiativeso Clarify roles |
| and coaches the executive strategy team in | | | | (who does what in the process)o Identify any |
| preparing a presentation of their strategic | | | | additional research or outside resources necessary |
| document to the ownership or Board for approval. | | | | to assist you during the process |
| After approval is granted, this document becomes | | | | 2nd Priority: |
| the basis for launching the total company planning | | | | The second priority is to create the end game |
| process. | | | | vision with clarification from ownership and the |
| Tactical issues such as sales strategies, | | | | executive staff. The core strategy statement is |
| performance accountability and compensation | | | | an introductory paragraph that clearly defines the |
| issues may also be included. | | | | end game in understandable and measurable |
| The Strategy Development Process | | | | terms; it lets the reader know where the |
| Phase I: Company Internal Survey | | | | company intends to go. The end game must |
| Preparation | | | | communicate the essence of the organization. |
| A web-based survey is developed focusing on all | | | | Articulating the end game indicates your focus |
| aspects of the organization. This generates | | | | and purposefulness. The end game and its |
| valuable, precise feedback from the employees. | | | | clarifying core strategy statement should contain:o |
| This survey is synthesized, analyzed and | | | | Purpose - why the organization exists and what it |
| discussed at the strategy kickoff meeting. | | | | seeks to accomplisho Business - the main method |
| End Game Definition | | | | or activity through which the organization tries to |
| Through the use of brainstorming and scenario | | | | fulfill this purposeo Values - the principles or beliefs |
| planning, the CEO and ownership create a picture | | | | that guide an organization's members as they |
| of what the company will be and how it will | | | | pursue the organization's purposeo Specific-long |
| function 5 to 10 years into the future. This | | | | term financial objectives |
| process can be as simplistic as developing a well | | | | The core strategy statement summarizes the |
| thought out visionary mission statement to doing | | | | what, why and how much of an organization's |
| actual "what if" scenario analysis identifying specific | | | | objectives. It presents an image of the character, |
| desirable future objectives. | | | | the culture and the core values of the |
| Phase II: | | | | organization. |
| Kick off Strategy Development Meeting - End | | | | 3rd Priority: |
| Game Presentation | | | | The third priority entails performing the S.W.O.T. |
| The CEO/Owner presents the end game analysis | | | | analysis (strengths, weaknesses, opportunities and |
| developed to the strategy team. Open discussion | | | | threats). A S.W.O.T. analysis means obtaining |
| may or may not occur at this juncture. However, | | | | current information about the organization's |
| further discussion will take place after the CEO | | | | strengths, weaknesses and performance |
| excuses himself from the meeting. This discussion | | | | information that will highlight the critical issues that |
| will be moderated by a facilitator to get | | | | the organization faces. These become key issues |
| consensus of the end game by the strategy | | | | the strategic plan must address. These could |
| team. The end game may be challenged only if | | | | include a variety of primary concerns, such as |
| another alternative is offered. | | | | funding issues, new program opportunities, |
| Survey Presentation | | | | changing regulations or changing needs in the client |
| A copy of the completed survey is handed out. A | | | | population, and so on. The point is to choose the |
| facilitator presents the analysis of the survey | | | | most important issues to address. Critical |
| identifying key issues. A discussion of the issues is | | | | constraints should naturally emerge from this |
| conducted but the discussion is controlled and | | | | process. Identifying critical constraints is the |
| kept informal without trying to solve world hunger | | | | primary reason for doing a SWOT analysis. |
| at this one-day meeting. | | | | 4th Priority: |
| Strategy Development Kickoff | | | | The fourth priority is to begin to develop |
| A brief 60-minute strategy planning presentation is | | | | departmental initiatives required to support the |
| conducted by the facilitator to walk the | | | | end game. |
| participants through the process. The end game | | | | Strategies, goals and objectives may come from |
| exercise is discussed and defined. This is meant to | | | | individual inspiration, group discussion, formal |
| explain the beginning of the process. After the | | | | decision-making techniques and so on - but the |
| plan is completed a presentation will be made to | | | | bottom line is that leadership agrees on how to |
| the ownership, President and Board, gaining | | | | address the critical issues. |
| approval of the strategic plan prior to actual | | | | This can turn into a negotiating process and eat |
| launch and execution of the strategy. | | | | up considerable time and flexibility. It is possible |
| Doing nothing is not an option | | | | that new insights will emerge which change the |
| As we've discussed, strategic planning involves | | | | thrust of the end game. It is important that |
| anticipating the future environment and creating | | | | planners are not afraid to go back to an earlier |
| an end game analysis so the decisions are made | | | | step in the process and take advantage of |
| in the present. This means that over time, the | | | | available information to create the best possible |
| organization must regularly perform trend analysis | | | | plan. |
| in order to make the best decisions it can at any | | | | "Changing the end game is not a crime." |
| given point - it must manage, as well as plan, | | | | 5th Priority: |
| strategically. | | | | The fifth priority and conclusion to this explanation |
| Strategic planning is not a substitute for the | | | | of the process is producing the completed, |
| exercise of judgment by leadership. Ultimately | | | | documented plan. The end game has been |
| "the buck stops somewhere." The strategic | | | | articulated, the issues identified and the goals and |
| planning process does not make the organization | | | | strategies agreed upon. This step essentially |
| work - it can only support the sound judgment | | | | involves putting all that down on paper. A planning |
| and reasoning skills that people bring to the | | | | consultant can be used to draft the final |
| organization. | | | | document and submit it for review to all key |
| Strategic planning is a creative process. The fresh | | | | decision makers (usually the board, CEO and |
| insight it engenders might very well alter past | | | | ownership). This is now the beginning of the |
| initiatives. Planning also consumes resources which | | | | process of developing individual departmental |
| are precious commodities. It can be an | | | | business plans congruent to, and supportive of, |
| overwhelming and daunting task, but it is a | | | | the strategic plan. These business plans should |
| process that eventually defines the direction and | | | | include departmental budgets. |
| activities of the organization. Despite its | | | | Conclusion |
| overwhelming nature, the benefits of planning can | | | | Strategic planning involves looking at a longer time |
| far outweigh the hard work and pain involved in | | | | horizon, identifying future trends and developing |
| the process. | | | | action plans based on the highest probabilities. A |
| I cannot emphasize enough that the true value of | | | | good strategic planning process will enable a |
| a strategic plan is not in the document itself. It is | | | | business to anticipate changing trends and |
| in the process of creating it, involving many of | | | | implement actions that will enable them to gain or |
| your employees from the bottom up. This | | | | maintain competitive advantage. Add scenario |
| empowers them to be more effective and | | | | planning and they can be ready for just about any |
| better-informed leaders, managers and decision | | | | consequence the market may throw their way. |
| makers. The time devoted to the planning | | | | Developing a well thought out strategy that |
| process varies from organization to organization | | | | involves much of the entire organization provides |
| and you must decide how much time you will | | | | the "Footprints to Success." It is now up to the |
| devote to the kick off planning process meeting. | | | | executive team to lead the organization along the |
| This can take the form of a two-day retreat or it | | | | path these footprints follow. |