Strategic Planning & Implementation

"If you don't know where you're going, any road'll take you there"

“ I am interested in the future because I will spend the rest of my life there.”C.F. Kettering, Seeds for Thought!

Hierarchy

Planning

“People like to win, to know they are making progress. Lay out a detailed map, then measure the milestones and celebrate forward motion.”Ralph Hargrow, Global chief people officer at Molson Coors

Elements of Planning

The What: These are descriptions of what the organization does and what it aspires to achieve—its organizational targets—including its goals, objectives, and quantitative performance measures.The Present: The present situation, or current environment, is typically described in terms of the organization’s mission, guiding principles (or values), organizational strengths (or enablers), and organizational barriers (weaknesses or challenges).The Future: The desired future is described by the organizational vision and targets.The How: The preferred route to achieving the organizational goals, objectives, and mission is communicated as a strategy or as strategic goals.

The Elements of the Plan

Strategic Planning

Who is your primary customer?How do your core values prioritize shareholders, employees and customers?What critical performance variables are you tracking?Which strategic boundaries have you set?How are you generating creative tension?How committed are your employees to helping each other?What strategic uncertainties keep you awake at night?

Need of Vision

"Without an appropriate vision, you end up with nothing more than a list of confusing, incompatible, and time-consuming projects that go in the wrong direction or nowhere at all.” John Kotter

Mission

Companies have developed mission statements for years. It helps guide them by defining who they are and why they do what they do. Coca-Cola’s mission statement, for example, is “To refresh the world. To inspire moments of optimism and happiness. To create value and make a difference.”For Google it’s “To organize the world’s information and make it universally accessible and useful.”

Values

Walt Disney

No cynicismNurturing and promulgation of “wholesome American values”Creativity, dreams, and imaginationFanatical attention to consistency and detailPreservation and control of theDisney magic

Core Purpose

3M: To solve unsolved problems innovativelyCargill: To improve the standard of living around the worldHewlett-Packard: To make technical contributions for the advancement and welfare of humanityMcKinsey & Company: To help leading corporations and governments be more successfulMerck: To preserve and improve human lifeNike: To experience the emotion of competition, winning, and crushing competitiorsSony: To experience the joy of advancing and applying technology for the benefit of the publicWal-Mart: To give ordinary folk the chance to buy the same things as richpeopleWalt Disney: To make people happy

Planning Summary

Is future focusedIs leadership drivenProvides for a high level of organizational involvementAllows contention within the broad framework of the organization’s goalsCreates broad objectives that encompass organization purpose and cultureProduces a plan that is widely understood and acceptedProduces a plan that is both comprehensive and detailedIs a model that can be rigorously appliedProvides the energizing force to drive the needed changesWill enable an organization to create and achieve its ideal futureAllows dialog to take place in a continuous and interac tive mannerIs measurable

We realized we didn’t have to come up with brilliant ideas. We needed brilliant ways of executing good ideas. —Mackey McDonald, CEO, VF Corporation

Implementation Questions

How do you know you are future focused, rather than today/to do focused?How will you free up time to do this?Do you have a method for rewarding efforts to make strategic change?How will you make new improvements?How will you keep track of the changing environment?What metrics will you use?

Five Major Elements

Steps

A Managed Innovation Process – Combining Non-Traditional andTraditional Approaches to Business Strategy

Strategic Alignment – Building Support

Industry Foresight – Understanding Emerging Trends

Consumer/Customer Insight – Understanding Articulated and Unarticulated NeedsCore Technologies and Competencies – Leveraging and Extending Corporate Assets

Organizational Readiness – The Ability to Take Action

Disciplined Implementation – Managing the Path From Inspiration ToBusiness Impact

Moving from Ideas to ExecutionBuilding Blocks

Management Tools-Usage & Satisfaction

Planning tools-big change after 9/11

Tuning For Better Decisions

Change-Fast, Focused & Simultaneous

Focus on the results, not the processChange Re-energize the ranksDo it fast and all at once

Accelerated Transition

Base the transition strategy on the economic value drivers.Launch small, fast–paced, short–term transition teams that will accelerate implementation of the value drivers.Aggressively manage communications in order to secure stakeholder support and acceptance.Align organizational roles and responsibilities to ensure clarity of direction.Select and deploy role models who support the desired culture

Making it Better

Barriers

BusinessModel

Value Proposition

How to Drive Initiatives

Strategy in Action

Distil business strategy to achieve clarity of intentWhat is the intent behind the strategy?What does it mean for each operational unit within the organisation?

Developing the strategic thrusts and broad based action plansWhat are the few important themes that need to be worked on to deliver the intent?What are the sub-themes and projects?What will success look like and how will it be measured?

Cascading out detailed work plansHow will the projects be led and resourced?Who will be responsible for each task?Are individual work plans aligned?What is the review process?

Strategy Tests

Will your strategy beat the market? We find that many so-called strategies are directed more toward “just playing along” than to overcoming the true power of market forces.

Does the strategy tap the true source of advantage? Do you know why y our company is successful? We go beyond superficial explanations to ensure that strategic decisions are built on a solid platform of positional and proprietary advantages.

Is the strategy granular about where to compete? We have discovered that winning players systematically out-position themselves by making better and more granular choices about where to compete, and by following through with resource allocations that translate those choices into reality . In other words, which market to choose is usually more important than how much market share.

Does the strategy put the enterprise ahead of trends and discontinuities? At its most basic, strategy is about seeing the writing on the wall and responding to it.

Does the strategy embed privileged insight and foresight? Do you see something or know something others don’t? If not, it will be hard to beat the market. Common math applied to common data will yield common wisdom.

Is uncertainty properly defined and accounted for? In these volatile times, we need no reminder that the world is uncertain. Is your strategy designed for multiple future scenarios or is it a bet on a “base case”?

Does the strategy balance high-commitment choices with flexibility and learning? Great strategists know that one of the most important decisions is “when to compete.” Our strategy methodology produces a portfolio of moves that allows y our company to develop a winning formula over time.

Have alternatives been evaluated without bias or false inference? The best analysis will not add value if the decision making is flawed. However, all people have biases in drawing conclusions from data. We use methods that help counteract these biases and increase the quality of decision making.

Is there true conviction to act? A new strategy demands new thinking and new beliefs, and must be incorporated early in the strategy process, because adults learn mostly by self-discovery .

Is the strategy translated into clear actions and reallocation of resources? Have you gone beyond vague statements of intent toward a strategy than can be driven down the line? A strategy is only implemented when resources move and pivotal roles behave differently

How to Mitigate Execution Risks

Mapping Activity Systems

Impossibile o Possibile?Impossible or Possible?

Industry– what can we not do in our industryOperations – what can we not do with our operations or business processesCompany– what can we not do within our company, culturally or organizationally?Clients– what would our customers say we would never do for them that they would like us to do?

Impossibile or Possibile?

Impossibile or Possibile?