2. SII 2012For those that are preparedchaos brings opportunity
3. SII 2012 Learning Objectives: Address key elements of a business
plan that alignyour firms critical objectives with those of
yourindividuals business units objectives. Discuss common mistakes
in writing strategicbusiness plans. Identify guidelines on how
often to review yourstrategy, adjust and change or be flexible.
Provide each participant with numerous tools, ideasand skills to
apply when creating a detailed andrealistic strategic business
plan. 4. SII 2012 Do NOT freak out! I have a ton to cover and I
will go pretty fast. Please take notes and ask questions. I am
happy to answer any of your questions, offeradvice and recommend
books at any time.The slides and a full strategic planning workbook
are already posted at: www.SlideShare.net/johnspence 5. SII 2012 6.
SII 2012Most people think of: 7. SII 2012 8. SII 2012What strategy
is not More, better, faster is not a strategy. Effectiveness and
efficiency arenecessary but not sufficient. Superb execution of
fundamentalbusiness processes is expected. Being extremely good at
what you aresupposed to be good at gets you noextra credit at all.
9. Do you have a clearly focused and SII 2012well-communicated
strategy for success?Effective Strategy = Valued Differentiation x
Execution 10. SII 2012Key Point: Strategy is INTERNAL as well as
EXTERNAL 11. SII 2012Five Foundations ofEffective Strategic
Thinking Business AcumenPersonal ExperiencePattern
RecognitionStrategic InsightDisciplined Execution 12. SII 2012The
Four Is Ignorance Inflexibility Indifference Inconsistency 13. SII
2012 How to avoid the Four Is Aggressive external market focus.
Aggressive customer focus. Keep the Main Things the main things.
Bullish on knowledge sharing and learning. Passion and commitment
at all levels. Foster a healthy paranoia. Revel in change. 14. SII
2012From the CEO of a little 182 billion dollar companyLook, what
is strategy but resource allocation?When you strip away all the
noise, thats what itcomes down to. Strategy means making
clear-cutchoices about how to compete. You cannot beeverything to
everybody, no matter what the size yourbusiness or how deep its
pockets. You have to figureout what to say NO to. Jeffrey Immelt
15. SII 2012Simplicity isthe ultimatesophisticationLeonardo da
Vinci 16. SII 2012 Breakthrough Strategies GE: 1- 2 or F.S.C.
Intel: memory to processors Microsoft: installed base Apple: chaos
to elegance 17. SII 2012Southwest1 type of planePoint-to-point Fast
turnsLow fares / no frills Friendly staff 18. SII 2012BTO
JITInventory turnsLogistics vs. TechnologyVOC Dell 19. SII
2012100,00 ELP No FrillsLogistics 20. SII 2012Southwest Dell
Walmart What is the pattern? Extreme efficiency. Minimize costs to
as close tozero as possible withoutnegative impact. All focused on
deliveringcustomer value as definedby the customer. 21. SII 2012
Educated GuessFocusResource AllocationBold not RiskyWhat NOT to do
22. SII 2012Thinking to Planning 23. SII 2012 24. SII 2012 25. SII
2012What Business Planning is Not ! Business planning does not
attempt to makefuture decisions. Business planning is not
forecasting. Business planning is not an attempt to blueprintthe
future. Business planning is not necessarily thepreparation of
massive plans and reports. Business planning is not an effort to
replacegood management judgment. 26. SII 2012 Why Planning Pays
OffAsks & answers questions of importance.Simulates the
future.Forces the setting of objectives.Gives a framework for
decisions.Develops performance measurements.Improves
communications. 27. SII 2012 28. SII 2012The Organizational
Framework for Effective Execution WHO WHATHOWSenior Planning
RetreatLeadershipQuarterly WorkshopsGoalsCross-Functional
TrackingTeams DashboardStatus ReportsStatus MeetingsDepartments
WorkshopsStatus Reports Regular MeetingsIndividuals
CoachingTactical PlansIndividualsAction Items To-do Lists Adapted
from: Six Disciplines Execution Revolution 29. SII 201283% 30. SII
2012What makes a winning strategy?Unique Coherent Deliverable
Evolving32 31. SII 2012Common Problems Putting It Off Idea
inflation Diluted priorities Vague goals No execution plan!!! 32.
SII 201210 15 % 33. SII 2012What Inhibits Execution?National Survey
of 4,000 Senior Executives 4. Inability to work together (21%) 3.
Company culture (23%) 2. Economic climate (29%) 1. Holding onto the
past / unwillingness to CHANGE (35%) 34. SII 2012 Where are we
going + how will we behave on the way? Praise +
CelebrationFocusandDifferentiation Eliminate MediocrityNoMeasure /
Track CommunicateStakeholders + Transparency guiding collation
RenewalVision + Values Training + Strategy time / money /
Planssupplies / people GoalsObjectivesTactics /Actions Clear /
consistent / relentlessProcedures / ProtocolsAll available
channelsRepeatable Process 35. SII 2012Some thoughts on measurement
Less is more Results not activity Easy / Hard Post and review Help
not punishment 36. SII 2012Assessing the Strategic
SituationSimplicity
ComplexityCertaintyUncertaintyKnowingForecastingProactiveAdaptiveStrategicScenarioPlanning
Planning 37. SII 2012Scenario PlanningIs a process that stimulates
imaginative and creative thinking tobetter prepare an organization
by rehearsing for the future to avoid surprises and break through
the illusion of certainty. Probability / Impact ---- Trigger Points
38. SII 2012Review of the plan? Twice yearly Strategic
PlanningRetreat 1 to 2 days Monthly quick check meetings2 3 hours
Weekly Senior team alignmentreview 1 hour or less Carry plan to
every strategicmeeting 39. SII 2012 Summary of Key Ideas Major
elements: thinking, planning, execution, review Strategic thinking
= study + experience + pattern recognition Strategy = bold bets on
resource allocation. What you say No to is a big part of strategy.
Planning is a process. Analysis is critical but it is not strategy.
More, better, faster is not a strategy. This is not blueprinting
the future. Keep it simple, focused and extremely well
communicated. A plan for execution MUST be part of the strategic
plan. Alignment + support + measurement + tracking + reward /
punishment Contingency planning = probability & impact /
trigger points 40. SII 2012THANK YOU If you have any questions at
all please do not hesitate to send a note or call.My email address
is: [email protected] Also, you might find value in the ideas I
share in my blog. You can sign up for it
at:www.johnspence.com/blogThese slides and the workbook have
already been uploaded to:www.slideshare.net/johnspence
