15 Minutes FREE Strategic Planning Keys to Successful Planning & Implementation.

Transcription

1 Strategic Planning Keys to Successful Planning & Implementation April 23, Minutes FREE jerry@esselstein.com Culture is TOP Down Driven Growth 1 Everything is permitted unless specifically forbidden Aging Everything is forbidden unless specifically permitted 2 Get what we want Want what we get 3 Political power in Sales & Marketing Political power in Accounting & Legal 4 Era of Intuition Era of Judgment 5 Contribution despite personality Personality despite contribution 6 Problems are seen as Opportunities Opportunities are seen as Problems 7 Success comes to those who take risk Success comes to those who avoid risk 8 What trumps How How trumps What 3 1

2 Long Term Planning Years vs. BAG Margin fade wins too many times Distributions trump reinvestment Incentive systems reward short term actions Political & economic uncertainty Customer attrition increasing External variables overwhelm strategies Buggy whips, Phone Booths, Kodak Film, Borders Books, Blockbuster Video, MySpace, Brookstone, Cord Camera reason to plan or not to plan?? 4 Key Questions. (think in terms of 1 to 10) How many do-overs corrections mistakes & inefficiencies burn hours & hours Are systems person dependent of functional across many minds Are Key Systems & Processes Scalable Will they work at twice our size Do you have department or system Integration problems Do Key People Lack Operational insight Would staff say you have the ability to leverage technology Would a five year study say you failed to improve employee performance productivity Is there lack of analysis as a tool to improve customer experience -- loyalty Is your Structure holding you back 5 Managing Risk -- ERM Assessment Business Policies, Procedures & Processes Unknown Risks Non-Controllable Variables Framework for insure, transfer, absorb Avoidance Reduction Alternatives Accept External Factors Customers and Supplies Monitoring --- Ongoing Commitment 6 2

3 Never Forget the Value Equation is Dynamic PROCESS DECISION MAKING IMPORTANT VALUE Process (important) to Value (decision-making) Yesterday s Value is today s Task/Process Today s Value is Tomorrow s Task/Process The only consistent Value is Decision Making 7 Key Strategic Issues Market Share & Margin Market Priorities that will Stabilize Revenues & assure Competitive Industry Positioning Balancing Growth & Allocation of Resources Setting Agreed to Priorities Agreement on Firm Brand & Key Components of Reputation -- viewed internally & externally BD -- Networking & Key Relationship Building Ongoing Succession & Critical Position and/or Function Backup --- Bench Strength --- Difference Makers 8 Enhanced Planning and Execution Continual Assessment of Traction Killers Benchmark Current Organizational Effectiveness Set Three Critical Priorities for the next 12 months Reflect on Your Leadership Potential Assess Roles & Responsibilities against Goals Commit to Timeframes & Feedback Periods 20% Enhancement 9 3

4 Scenario Planning (Options & Alternatives) Business Modeling Innovation -- Are You 1. Assessing Changing Distribution Channels 2. Reaching New Markets 3. Remaining in the Top 25% (best practices) 4. Using NEW Technologies 5. Hiring Talent 6. Described as Competitive, Innovative, having Vision 7. Measuring & looking at Data in New Ways 8. Balancing Risk 9. Involved in Maintaining & Developing Key Relationships Your Planning Framework 1. Frame issues essential to be proactive 2. Highlight relevant topics for more detail 3. Set Priorities --- Minimize Opportunity Costs 4. Differentiate Actions Short & Long Term 5. Agree on Critical Success Factors (CSFs) 6. Agree on time-frames, metrics & feedback periods 7. Improve Communication & Commitment to Collaboration & Crucial Conversations 11 Traction Killers 1 of 3 Too many just average employees- Tolerance has turned to acceptance New generation of key decision makers lacks marketing & sales orientation Competition seems to always be one-step ahead of us Working on the urgent always takes priority over the critical Failure to measure, benchmark & support Difference Makers 12 4

5 Traction Killers 2 of 3 Tough decisions made when time runs out or under stress An absence of trust exists Fear of Conflict Fear of Consequence Key difference makers have differing agendas & no common vision Hidden or Conflicting Agendas The double standard gap is wider than ever Failure to set and manage expectations 13 Traction Killers 3 of 3 Environment & culture lacks enthusiasm just not fun Key drivers no longer drive they are too comfortable Risk-adverse thinking polarizes any potential synergies Creativity is not rewarded Limited resources/capital are misallocated Owner draws equal distributions Limited reinvestment 14 Understand Company Dynamics Dysfunctions & Pressures Trust Level Fear of Conflict Commitment Level Accountability & Discipline 15 5

6 Understand Company Dynamics Dysfunctions & Pressures Dominate Personalities Conflicting Personal Agendas Organizational Competition Communication & Groupthink 16 Benchmark Today Your Organizational & Planning Effectiveness 17 Benchmark #1 How do others view your collective contribution? What are you known for inside the organization? 18 6

7 Benchmark #2 Do you get the cooperation and timely information necessary to be efficient and effective? 19 Benchmark #3 How well is the succession plan communicated & understood? 20 Benchmark #4 Are you staffed adequately to deploy the right people when new opportunities arise? 21 7

8 Benchmark #5 Are individuals on your Team ready, willing & able to accept new & challenging opportunities? 22 Benchmark #6 Are individuals on your Team ready, willing & able to move into more senior management roles? 23 Benchmark #7 Do you offer managerial and executive developmental experiences to others? 24 8

9 Benchmark #8 If I ask Executive or Senior management, Would they say you have demonstrated that you are fully committed to accepting new challenges? 25 Benchmark #9 Would your Industry peers consider you actively engaged & committed to the growth of the company? 26 Benchmark #10 Do you hold your senior management accountable for identifying and developing talent? 27 9

10 Company Edge Product, Price or People 1. Commoditization 2. Customer Loyalty 3. Expectation of Quality Differentiators Response Knowledge Attitude Innovation/Development Creativity 28 Poor Communication Slow to Terminate Slow to GROW No one Setting & Managing Expectations Fostering Conflicting Personal Agendas Lack of Trust among & between Associates Failure to deliver Consistently Tolerance for Mediocre Performance (Aptitude & Attitude) What does it tell solid performers? Lack of Consequence GROUPTHINK at all levels Too few 8,9,10 s s are ok 29 Mobile Technology Applications Vendor Expectations New Uses Customer Expectations Integration with personal 24/

11 Your Executive Alignment o Set & Manage Expectations o Know where you spend your Time o Understand Major Constraints holding you back o Think in SWOT Assessment Terms o Increase your Value o Have Crucial Conversations o Ask Questions o Minimize Groupthink o o 31 Understand the role time plays in the process Establish milestones for assessment Living with the Result Curse of the ifs Know what outcomes are acceptable DECISION MAKING No Fear of Blame Champion or Single Source Responsibility Understanding Fear of Consequence 32 Personal Challenge Marketing Orientation Product Orientation MAINTAIN Business Perspective Consistency in your Communication 33 11

12 Your Role Global Economic & Business Monitoring Continuous Improvement & Alignment Benchmarking & Trending Visibility & Modeling New Ventures & Products Strategic Analysis Process Redesign Expectation Management Succession 34 Succession Planning Departmental Company Ownership Pros & Cons for Communicating a Plan Law of Unintended Consequence 35 Not Urgent Critical Rolling, Rolling, Rolling Critical Not Urgent 30 Days 12 Months Paint a year picture 3 Year 36 12

13 Summary Key Elements of Planning Desired Culture --- what must change to achieve Agreement on Brand & Key Components of Reputation -- viewed internally & externally Five year & Ten year Picture (vision) Set Three Critical Priorities for the next 12 months Market Priorities that will stabilize Revenues & assure Competitive Industry Positioning Strategic Initiatives Need Traction Mutual Agreement on Traction Killers & Constraints Agreement on Resources & Allocation (Capital, Personnel, Systems) Exposures & Risks Summary of Assumptions 37 Summary Key Elements of Planning Critical Position and/or Function Backup --- Bench Strength -- Difference Makers Set Priorities with Buy-In Differentiate Important from Value -- Urgent from Critical Communication Ease of Crucial Conversations Minimize Groupthink Measurement Metrics, KPIs, SPMs, et.al. (Opportunity Costs) Set & Manage Expectations All levels Succession 38 Summary Leadership, Collaboration, Team & KSAs Crucial Conversations Accepted & Encouraged Groupthink is Minimalized Measurement & Assessment are Embedded Expectations are Clear & Communicated Roles & Responsibilities are Aligned Time-frames & Feedback Periods are Established Morale & Motivation are evident in the Culture The Solution is Always in the Structure20% Enhancement 20% Enhancement 39 13

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