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
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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