Strategic PlanningThe missing piece to profitability & growth!

Strategic Planning Summary

Strategic Plan

G. BerthelsonSeptember 2010

Strategic Planning Process Overview

CorporateVision & Goals

Company Vision &

Goals

StrategicIntent

Process

Strategic Planning

Balanced Scorecard

This session’s

Focus

Strategic Planning Mind Map

Strategic Plan

Vision Statement

Strategic IntentStatement

Corporate FinancialGoals

Sustaining Market Opportunities

Vertical MarketOpportunities

Existing Market Share

Other Horizontal Market

Opportunities

Core Competencies

Layers of Advantage

Enablers

Strategic Relationships

5 Year PlanSWOT Analysis4 Quad Chart

CompetitiveAnalysis

Strategic Mapping

• The following is a sample map of a company’s strategy addressing how it will meet its vision statement contained at the top of the map.

• The map is structured into four key categories of performance.1. Enablers at the bottom define the key elements of your

foundation that will enable your company to execute its strategy.

2. Internal defines the key tactical elements that you need to execute to meet your vision statement

3. Customer is how you want your customers to view your value

4. Financial defines how you are going to be financially successful in achieving your goals.

Strategic Mapping

•Layout your map to meet your company’s unique set of needs.•Once laid out allocate a numerical rating for each of the nodes based upon their ranking of importance to your success. The sum total of all the rankings on the map must total 100. •Having ranked each of the nodes you now know what areas of the map you need to focus upon to be successful. •Lay out an execution plan based on your strategic map and its rankings.

Build Strategy Map

www.pm2.ca

FINANCIAL

INTERNAL

ENABLERS

CUSTOMER

Preferred/Required System & Component

Supplier

Grow in Non-Traditional Markets Sustain Organic

Growth

Deliver Value through: Quality; Time; and

Service

Operational ExcellenceInnovation

Develop New Component & System

Solutions

Continually Improve on Cost, Quality & Time Requirements

Customer Satisfaction

Be easy to do business with

Attract, Grow and Retain the Right

People

Nurture a High Performance

Culture

Enable Our Strategy Through Technology

Enhance Tools & Processes

Innovatively add new competencies

To become the preferred and required supplier in the worldwide (xxx) and (xxx) Marketplace by developing unique, high quality, high reliability, low cost products for (xxx) and (xxx) users.

To become the preferred and required supplier in the worldwide (xxx) and (xxx) Marketplace by developing unique, high quality, high reliability, low cost products for (xxx) and (xxx) users.

Maintain Our Profitability

Be the Problem Solver

Be Successful at Integrating new competencies

1010

4545

2525

2020

12

3

3

12

8

55 55

5

6

2

17

1

8

Generate Strong ROCE

3

Deliver Outstanding Shareholder Value 0

Strategic Planning Definitions

• Strategic Intent– An obsession with winning at all levels of the organization and

then sustain that obsession over the years during the quest for global leadership. Focused on the ends with flexible means. Large long term investment in human capital.

• Strategic Planning– An obsession with winning at all levels and is based upon

available resources and the tactics required to achieve increased sales in the shorter term. Focused on the means to the end and less human capital intense.

Strategic Planning Definitions

• Layers of Advantage– A competitive advantage which supplements your core

competencies and or helps to differentiate you from your competitors. Rate the following chart categories and work on your deficiencies and enhance your strengths.

• Core Competency– Skills, processes and or knowledge that by their uniqueness

differentiates the company from its competitors.• Relevance: Must give customers strong influence to select your

products.• Difficulty of Imitation: The core competence must be difficult to

duplicate and through continual improvement you can maintain its competitive position.

• Breadth of Application: It opens up and allows you to sell to a variety of markets.

Layers of AdvantageCOMPETITIVE LAYERS OF ADVANTAGE STRENGTH DEFICIENT ACCEPTABLE

Quality

Process capabilities

Continual improvement systems

Research and development

New product development cycle time

Technology (manufacturing and product)

Ability to drive cost out of product & process

Lead times

Distribution channels

Plant capacity

On time delivery

Proximity to customers and markets

Name recognition

Technical service speed and quality

Customer service

Ease of doing business with us

Warranty and returns resolution

Vendor qualification and management

Information systems

Implementation of change

Pricing

Product mix

Sales and marketing presence

Employee workforce

Intellectual property

Company culture

Customer relationship management

Competitive intelligence processes

Working with customers on tech roadmaps

Core Competencies

• Understanding core competencies is understanding that you must have something that customers uniquely value if it is to make good profits. (Me too companies can only compete on price or service)

• What factors influence your customers in deciding to buy your products and services?

• What do you have to offer for each of those factors?• Of those offerings which are unique, if any, to you?• Of those unique offerings how do each stand up against the

tests for: Relevance, Difficulty of Imitation and Breadth of Application

• What additional core competencies do you want to develop or acquire?

Strategic Planning Definitions

• Vision Statement– A statement that defines to your customers and employees

what the company wants to become and how it wants to be viewed in the marketplace.

Example: To become the preferred and required supplier in the worldwide (xxx) and (xxx) Marketplace by developing unique, high quality, high reliability, low cost products for (xxx) and (xxx) users.

• Strategic Intent Statement– A statement that defines how your company is going to

implement its vision in a form that behind which, all employees can identify and invest their efforts.

Example:– To unseat the best and remain the best worldwide.

Strategic Planning Definitions

• Four Quadrant Chart– Identifies existing core competencies; new competencies

that your company wishes to acquire; identifies market opportunities on the basis of those competencies

• SWOT– Strengths, Weaknesses, Opportunities and Threats

• Usually addressed as an analysis of a company’s competitive position; opportunities your strengths bring to you; identifies what competitive threats your weaknesses expose you to.

Four Quadrant Chart

Extend our capabilities(Premier Plus 10)

Mega opportunities

Strengthen the core (Fill in the blanks)

Enter new markets(White spaces)

Existing New

Existing (1)

New

MarketMarket

Core Competencies

(1) Bottom boxes can be Layers of Advantaged based

SWOT Analysis

Strengths Weaknesses

Opportunities Threats

Internal

External