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1
STRATEGIC PLANNINGNOW MORE THAN EVER
Presented by:K. Eugene ThurstonSource Capital & Consulting, LLC
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CORPORATE AMERICA TODAY
Increased Government Intrusion Demands of Wall Street Greedy Executives Generational Conflicts Offshore Competition Political Conflicts Energy Crisis Climate Change Economic Recession
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EFFECTS ON SMALL BUSINESS
Financing/Credit Sales Collections Health care cost Limited exports
I AIN’T GOT NO BUSINESS DOING BUSINESS TODAY – Alabama
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TYPES OF PLANS
Daily Plan Operating Plan including Budgets Business Plan Financing Plan Profit Sharing Plan Succession Plan Exit Plan Strategic Plan
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STRATEGIC PLANNING
Research has shown that strategic thinking and planning have a strong impact on the financial performance of Small and Medium Enterprises (SMEs).
The failure in small businesses often relates to an overall lack of strategic management skills and abilities.
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WHAT IS STRATEGIC PLANNING?
An Organization’s Process of: Defining its strategy or direction. Making decisions on allocation of resources
to pursue the strategy. A Formal Action plan that is taken to
attain one or more results.
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ANOTHER DEFINITION OF STRATEGIC PLANNING
Strategic Planning is a management tool that helps an organization focus its energy, to ensure that members of the organization are working toward the same goals, to assess and adjust the organization's direction in response to a changing environment.
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ANOTHER DEFINITION
In short, strategic planning is a disciplined effort to produce fundamental decisions and actions that shape and guide what an organization is, what it does, and why it does it, with a focus on the future. (Adapted from Bryson's Strategic Planning in Public and Nonprofit Organizations)
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ELEMENTS TO THE STRATEGIC PLANNING PROCESS
Identification of the Core Values Definition of Who we are Definition of what we do best Identification of who is the customer Determination of what the customer expects SWOT Analysis Vision Statement Mission Statement Setting of Goals and Expectations
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THE CORE VALUES
Integrity Customers Employees Profit Growth Community ManagementThe Core Values Define Who We Are
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WHAT BUSINESS ARE WE IN?
What do we do best? Federal Express
What need to we meet? The Window Shade
Whose need to we meet? The Resort in Florida
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AIRPLANES
What do airplanes do best? What needs do airplanes meet? Whose needs do airplanes meet?
United Airlines Southwest Airlines Federal Express
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WHO IS THE CUSTOMER
Is it the Name on the Sales Invoice? Is it the Purchasing Agent?
Assisted Living Teenagers Amusement Park
WHO REALLY IS YOUR CUSTOMER?
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WHAT IS IT THAT THE CUSTOMER EXPECTS?
Quality? Timeliness of Delivery? Price? Warranty?
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SWOT ANALYSIS
Strengths – Internal Weaknesses – Internal Opportunities – External Threats – External
How can a Strength also be a Weakness?
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WHERE DO YOU WANT TO GO?
What alternatives are available? Consider the critical issues:
Growth Profitability New Markets New Products Financing Personnel Plant and Equipment
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HOW DO WE GET THERE?
Who will be responsible for each course of action?
What time frames should we have? What are the significant barriers to
overcome? What will it cost?
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HOW DO WE KNOW WHEN WE ARE THERE?
Where performance is measured, performance improves. Where performance is measured and reported, the rate of improvement accelerates.
– Thomas S. Monson
Visualize the end result. What will it look like? Quantify your objectives. Establish controls to measure performance.
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PULLING IT ALL TOGETHER
Where are you today? How do you modify your core values to
where your stated and perceived values are consistent?
Where do you need to be? How can you use the Strengths and
Opportunities and overcome the Weaknesses and the Threats to get you to that destination?