Strategic Planning Clarify your business objectives and improve the way you deliver for your customers and employees
Session overview Why undertake Strategic Planning? How to approach and structure your plan Undertaking thorough analysis A framework to create your plan Communication and implementation Theory in practice maximising opportunity for success
Why undertake Strategic Planning?
How to approach and structure your plan Analysis Governance Planning Implementation Communication
Undertaking thorough analysis
1) Analysis: Porters 5 Forces New Market Entrants entry ease/barriers geographical factors incumbents resistance new entrant strategy routes to market Supplier Power brand reputation geographical coverage product/service level quality relationships with customers bidding processes / capabilities distribution Competitive Rivalry number and size of firms industry size and trends fixed v variable cost bases product/service ranges differentiation, strategy Buyer Power buyer choice buyers size/number change cost/frequency product/service importance Threat of substitute alternatives price/quality market distribution changes & alternatives legislative effects
2) Analysis: PEST
3) Analysis: SWOT Strengths Things that are good now, maintain them, build on them, and use as leverage Weaknesses Things that are bad now, remedy, change or stop them Internal Origin Facts/factors of the organisation Opportunities Things that are good for the future, prioritise them, capture them, build on them and optimise Threats Things that are bad for the future, put in plans to manage them or counter them External Origin Facts/factors of the external environment in which the organisation operates
A framework to create your plan
Framework: AcdB A Where are we now? Internal Issues/Opportunities External Issues/Opportunities C What do we do to get there? Strategic Themes D How will we make this happen? Action Plan B Where do we want to be? Where do we want to be by 20xx? Vision Key Aspiration Aspects to be known for Focusing Question
Intermediated Distribution Strategy A Where are we now? c How do we get there? B Where do we want to be? Almost 60% of the $24B Australian General Insurance industry GWP is sourced through intermediated channels A wide variety of intermediated distribution models exist End-customer size is a strong indicator of reliance on intermediaries Brokers are highly sought after by insurers Numerous trends in Australian general insurance industry include consolidation, skills shortage / ageing broker principals and technological advances Suncorp derives approx $1.8B in GWP through a range of Intermediaries across CI, CTP and PI 92% is sourced via Brokers Vero has core strengths and capabilities across the portfolios that could be better leveraged Vero s approach to brokers is inconsistent, with pockets of strong isolated relationships, with areas of improvement FOCUSING QUESTION How can Vero be the key solution to the major challenges and opportunities brokers face in the next 3-5 years? Differentiating through User-based Design A single Service Proposition for Brokers D Generating value through partnering with Brokers Ticket to play Getting the basics right Effect cultural change to alter HOW we service Brokers STRATEGIC THEMES How do we make this happen? ACTION PLAN Invest in Our People, IT Systems and Processes Embed principles of User-based Design in our approach to Brokers We help people build and protect their dreams Vero will be the Broker s primary choice when seeking solutions for their customers and their business Delivering/ Execution Strength of our relationships VISION ASPIRATION ASPECTS TO BE KNOWN FOR Being down to earth Supporting our people
Thoughts on communication & implementation
In practice, what really works?
Questions
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