Skating to Where the Puck Will Be: The Questions You Must Answer to Get It Right (And How I ve Gotten It Wrong)

Transcription

1 Skating to Where the Puck Will Be: The Questions You Must Answer to Get It Right (And How I ve Gotten It Wrong)

2 2 Why Have a Plan?

3 1997 me 3

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6 -20% 6

7 A plan around which to improvise 7

8 What I Learned in School That Day No plan can prepare you for every possible event but a good plan can make life easier Adapt and overcome--build in flexibility and adjust on the fly Don t wait for things to get better, or to be told to make things better 8

9 Why Have a Plan? Resource allocation Assesses risk Public statement Commitment to a goal Creates alignment Motivate and discipline 9

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13 What Goes Into The Plan? 13

14 Characteristics of a Good Strategic Plan Measurable objectives Clarity Leads to implementation Can be translated into annual operational budgets Allows for contingencies Enables alignment of departmental goals with organizational objectives Provides imperatives and prioritizes resources 14

15 1. Who s the Audience For The Plan? 15

16 Organization? Management? Stakeholders? Public? All of the Above? 16

17 2. Who Needs To Be Involved in the Plan Development? 17

18 Keep It Smart and Simple 18

19 3. How Long Should the Plan Period Be? 19

20 4. Do I Need An Expert? 20

21 When to Bring in an Outside Expert The internal team doesn t have time to do it, or do it right Nasty politics (are there any other kind?) Big personalities involved Many stakeholders Public input is required You realize that all your previous plans look alike and nothing ever changes You feel threatened 21

22 5. Where Does It Begin? 22

23 Begin with Zero-Based Planning Be realistic, but don t start with how much money you have to invest. Start by asking what it is you want to accomplish your purpose--then determine how you re going to achieve it. Identify potential barriers and create contingency plans. Reflect strategic intent and aspiration. 23

24 Reflect Strategic Intent and Aspiration What do we want to be when we grow up?

25 The VISION articulates direction It s our impossible dream What the organization wants to be something to be pursued always Microsoft s original vision: A computer on every desk and in every home. 25

26 And should incorporate strategic intent In 1987 British Airways declared it wanted to be The World s Favourite Airline. By 1992 most customer satisfaction surveys placed it #2 in the world. 26

27 Elements Shaping the MISSION Our business Our customers Current preferences of owners and management Market environment Resources Distinctive competencies Must be motivating Simple and clear A measurable achievement Go beyond the obvious. 27

28 Some Famous Mission Statements Preamble to the Constitution

29 Star Trek Opening Theme

30 PERFECTING THE ENVIRONMENTAL SCAN

31 Identify Critical Issues Using a SWOT Environmental Analysis Strengths Weaknesses Opportunities Threats 31

32 Identify Critical Issues Using a TOWS Environmental Analysis Threats Opportunities Weaknesses Strengths Source: Michael Watkins, hbr.org, 3/27/07 32

33 Identify Critical Issues Using a SOAR Environmental Analysis Strengths Opportunities Aspirations Results (Sometimes Restraints) 33

34 Porter s Five Forces Model for Environmental Analysis Source: hbr.org 34

35 Next Three Elements OBJECTIVE SCOPE COMPETITIVE ADVANTAGE THE STRATEGY STATEMENT

36 Objective OBJECTIVE SCOPE COMPETITIVE ADVANTAGE OBJECTIVE IS: A single precise goal that will drive the business. Specific, measurable, and time bound. OBJECTIVE IS NOT: The same as mission or vision. Generic (e.g., We seek to grow profitably ).

37 Scope OBJECTIVE SCOPE COMPETITIVE ADVANTAGE SCOPE IS: Where the organization competes along three dimensions: Customers or offerings Geography Vertical integration Clear about where a organization will not compete. SCOPE IS NOT: A precise prescription for what to do within the specified bounds.

38 Competitive Advantage OBJECTIVE SCOPE COMPETITIVE ADVANTAGE Two parts of competitive advantage: CUSTOMER VALUE PROPOSITION UNIQUE ACTIVITIES

39 The Strategic Sweet Spot OBJECTIVE SCOPE COMPETITIVE ADVANTAGE ORGANIZATION S/ DESTINATION S Capabilities SWEET SPOT CUSTOMERS Needs COMPETITORS Offerings CONTEXT Technology, industry, demographics, regulation, etc.

40 The Other Components What Do All Those Other Words Mean? Strategery 40

41 What Do All Those Other Words Mean? Goals Realistic and matched to the environmental analysis: We will dominate the world market for widgets by Objectives Measurables of the plan: We will sell a million widgets by fiscal year Strategies How we re going to achieve goals and meet objectives: We will invest $100 million in a marketing plan for widgets. Tactics Specific action steps supporting the broader strategies: We will blow $4 million on a Super Bowl ad. We will blow $1 million on a Super Bowl party to watch our ad. 41

42 What Role Does Market Research Play? 42

43 What Role Does Market Research Play? Important for Benchmark metrics Market intelligence Input from stakeholders and public Building a solid foundation 43

44 Where Does It 44 End?

45 Where Does It End? Keys to Execution Regular monitoring and formal reporting of results essential Leadership matters So does accountability among multiple people It never ends 45

46 What Can You Learn From My Mistakes? 46

47 My Favorite Mistakes Allowing loudest voices to dominate Not leaving time for everyone to weigh in once, twice, even three times before it s final Not setting a timetable Not assigning responsibilities for execution Not creating a process for monitoring progress 47

48 What gets measured, gets managed. 48

49 The 10 Responses to the 10 Questions You Must Answer to Get It Right 1. A reason for having a plan 2. An audience identified for it 3. A smart, engaged team to develop it 4. A realistic timetable for accomplishing it 5. An outside expert to facilitate if the situation calls for it 6. An understanding of relevant environmental factors 7. A strategic aspiration and intent for the plan, and the organization 8. Lofty yet realistic goals, measurable objectives, action-oriented strategies, and specific plan initiatives 9. A research plan, if feasible 10. Leadership committed to implementation, measurement, and reporting 49

50 Two Critical Strategy Questions Can you summarize your company s strategy in 35 words or less? If so, would your colleagues put it the same way?

51 Solution: Clear, Succinct Strategy Statement Benefits: Aligned behaviors Empowered employees and stakeholders Increased effectiveness

52 Strategy, Not Strategery 52