Strategic Planning for LSPs

Transcription

1 Strategic Planning for LSPs A Guide to Annual Business Planning By Hélène Pielmeier and Donald A. DePalma

2 Strategic Planning for LSPs By Hélène Pielmeier and Donald A. DePalma Copyright 2013 by Common Sense Advisory, Inc., Cambridge, Massachusetts, United States of America. Published by: Common Sense Advisory, Inc. 100 Cambridgepark Drive Cambridge, MA USA No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without the prior written permission of the Publisher. Permission requests should be addressed to the Permissions Department, Common Sense Advisory, Inc., 100 Cambridgepark Drive, Cambridge, MA 02140, , info@commonsenseadvisory.com. See for usage guidelines. Trademarks: Common Sense Advisory, Global Watchtower, Global DataSet, DataPoint, Globa Vista, Quick Take, and Technical Take are trademarks of Common Sense Advisory, Inc. All other trademarks are the property of their respective owners. Information is based on the best available resources at the time of analysis. Opinions reflect the best judgment of Common Sense Advisory s analysts at the time, and are subject to change.

3 Strategic Planning for LSPs i Table of Contents Topic... 1 Overview... 3 What Is Strategic Planning?... 3 Why Should You Take a Formal Approach to Planning?... 4 When Should You Start Planning?... 5 Who Should Be Involved?... 7 Situation Assessment Revisit Why Your Company Exists Review the Performance of Functional Areas of Your Company Develop a Solid Understanding of Your Overall Business Performance Map the Market Landscape Investigate Your Sales and Marketing Efforts Evaluate the State of Your Production Scrutinize Your Support Functions Perform a SWOT Analysis Strategic Direction Define Your Desired State Formalize Your Vision Statement Define Values for Your Organization Dissect Your Vision into Objectives Leverage Your Differentiators to Target Clients Decide on Differentiators to Exploit Firm Up the Client Base You Want to Pursue Plan Design Compare Present and Future States Perform a Gap Analysis on What You Need to Reach the Desired State Identify Barriers that Stand in the Way Determine Which Factors Can Help You Meet Your Objectives Develop a Roadmap to Achieve the Vision Design Plans by Functional Area Prioritize Resource Allocation Align Your Company and Promote Your Strategy Internally Monitor the Performance of Your Plan Document Your Strategic Plan Act as the Compass that Keeps the Team on Target Recognize the Signs of a Poorly Executed Strategy Live by the Plan but Readjust When Needed The Hardest Step Is Getting Started Related Research About Common Sense Advisory Future Research Applied Research and Advisory Services Copyright 2013 by Common Sense Advisory, Inc.

4 ii Strategic Planning for LSPs Figures Figure 1: The Strategic Planning Process... 4 Figure 2: Build a Strategic Planning Team... 7 Figure 3: Executives Should Take a Staged Approach to Strategic Planning... 9 Figure 4: How to Structure a SWOT Analysis Figure 5: How Objectives Lead to Functional Goals Figure 6: Create a Profile of Your Most Wanted Buyer Types Figure 7: The Hurdles an LSP Has to Jump Over to Ensure Success Figure 8: The Elements that Drive Organizations toward Success Figure 9: Strategies to Boost Growth Figure 10: Elements You Should Include in Your Strategic Plan Figure 11: Factors in Managing Complex Change Tables Table 1: Assess Your Readiness for Strategic Planning... 6 Table 2: Sample Metrics to Assess Business Performance Table 3: Sample Metrics to Assess the Client and Competitive Landscape Table 4: Sample Metrics about Sales and Marketing Table 5: Sample Metrics for Production-Related Functions Table 6: Sample Metrics for Operational Functions Table 7: Objectives Can Come from Many Areas Table 8: Estimate the Gap between the Present and Your Vision Table 9: Set Revenue Targets by Type of Revenue Source Table 10: Elements to Include in an Action Plan Copyright 2013 by Common Sense Advisory, Inc.

5 Strategic Planning for LSPs 1 Topic Executives at language service providers (LSPs) must periodically take a step back and look at the full picture of their service or technology business. They should do that at least once a year. However, given the fast pace of projects or the lack of business skills, these best intentions for strategic planning often fall by the wayside. This report lays out a methodology that will allow any LSP executives to reach their objectives. In Common Sense Advisory s partner program, we guide LSPs through the journey of strategic planning. This report uses that experience and feedback from participants in the program to provide a framework to do it on your own. It also relies on our qualitative and quantitative research from the last 11 years. Take note: It is not realistic for someone new to strategic planning to perform everything listed in this research report. Ramp up your planning over time. Also, keep in mind that this is a high-level guide. You will need to complement your reading of this report with other Common Sense Advisory research to fine-tune your knowledge of sub-topics such as differentiation or marketing. The guide is especially useful for small to mid-sized LSPs that don t do any formal strategic planning today, have not updated their plan in a while, or are struggling to do so. Larger organizations will find this report helpful as they refine their analysis and planning or formalize their process. The report includes the following sections: Overview. Why do you need strategic planning? This section describes the basics, from benefits to the process to follow. Situation Assessment. Who are you? Where are you now? In this section, LSPs learn how to write a solid mission statement, perform an in-depth assessment of the state of their company, and complete a SWOT analysis. Strategic Direction. What do you want to become? This section covers vision statement, objectives, and goals. It guides you to identify differentiators and select markets, assisting LSPs with determining what they can become. Plan Design. How will you achieve your vision and get to the next level? We show LSPs how to convert the information from the two previous sections Copyright 2013 by Common Sense Advisory, Inc.

6 2 Strategic Planning for LSPs into strategies to achieve the objectives. We wrap it up by showing you how to monitor progress and make in-flight adjustments. Related Research. We recommend other Common Sense Advisory research reports and briefs related to this topic. Copyright 2013 by Common Sense Advisory, Inc.