Download Strategic Planning PPT - Strategy

Strategic Planning PPT
Strategic Management Model
Passion
Opportunity
Talent
Think
Growth for growth’s sake leads to mediocre performance
 The research that went into my books showed that mediocre
companies tend to focus on growth for growth's sake, whereas truly
great companies focus on making creative, profitable contributions
that are squarely focused on those three circles. Regardless of whether
the market is up or down, great companies that adhere to those circles
are, in the long run, likely to have more growth than they can handle—
indigestion, not starvation. The same holds true for creative people
who discover what they are passionate about, what they are
genetically encoded for, and how they can build an economic engine
based on their contributions. Those who operate at the intersection of
all three circles are more likely to face the problem of too much
opportunity in their lives, not too little.
Source: Jim Collins
Think
Let’s become creators NOT reactors
Creator
•Internally driven, externally aware
•Pursues creative strategy
•Discovers genetic talents and applies them
•Builds an economic engine to get things
done
•Many once-in-a-lifetime opportunities
•Growth follows from creative contribution
•Ambitious first and foremost for the work
•Focuses on building relationships
•Values self-improvement for its own sake
•Sets 10-to-25-year audacious goals
•Core values inform all efforts
•Seeks self-actualization
Reactor
•Externally driven, without intrinsic passion
•Pursues competitive strategy
•Agenda of competence set by the outside
world
•Gets things done to make a lot of money
•Few once-in-a-lifetime opportunities
•Seeks growth for growth's sake
•Ambitious first and foremost for self
•Focuses on transactions
•Driven largely by comparison to others
•Five years is long-term
•Nothing is sacred; expedience rules
•Seeks success
Source: Jim Collins - The Secret Life
Think
Focus on what we love and can be the best at
 Passions
 What important contributions are we deeply passionate
about making?
 Talents
 What can we be the best at and make the most important
contribution doing?
 Opportunities
 What economic opportunities at there where we can use
our passions and talents to make a difference?
Think
Three basic questions we need to ask
Who are our
customer?
How will we
provide these
products and
services?
What products
& services will
we provide?
Think
Key principles we need to remember
 Customers buy products and services to help them get functional and emotional jobs done. When at
home, a job may be to pay bills (for which you could use Quicken), stay in shape (possibly at
Curves), or whiten your teeth (Crest Whitestripes)
 When executing a job, customers have a set of metrics embedded in their subconscious that define
to them just what it means to get that job done efficiently and achieve the desired results. If a
specific product satisfies all of these metrics, they will have the ability to get the job done perfectly.
For example, a product designed to whiten teeth should minimize the length of the application,
increase the degree of whiteness that is achieved, minimize the likelihood of tooth sensitivity and
minimize the frequency with which the whitener must be applied
 Once these outcomes are known, companies are able to more effectively identify opportunities,
segment markets, conduct competitive analysis and brainstorm and evaluate ideas for new products
and services… By knowing how customers measure value we are able to create it with precisions
 Applying a systematic approach to deciphering the voice of the customer allows companies to
consistently innovate to both the current and future customer needs. This approach also allows
companies to consistently innovate to both the current and future customer needs. This approach
also allows organizations to prioritize their initiatives in light of the customers’ top priorities and
ensure the organization’s value proposition is aligned with these priorities
Source: Tony Ulwick
Research
Let’s conduct an external assessment
Customers
 Who are our customers?
 What functional or emotional jobs are our customers
focused on?
 What value can we provide to help our customers
complete their “jobs”
 What value can we provide that will motivate our
target customers to be strong advocates of our
offerings?
Research
Let’s conduct an external assessment
Offerings (Products and/or Services)
 What are the strengths of our offerings?
 What are the best related offerings out there?
 What are their weaknesses?
 What other customers would be interested in our
offerings?
 What decision-making and development processes do
we have in place?
Research
Let’s conduct an external assessment
 Competition
 What are our competitors?
 What are their strengths and weaknesses?
 Market
 What is our market?
 What are the market trends?
 What are the growth opportunities?
 How can we differentiate our offerings
 How can we improve our cost structure?
 What distribution channels can we use?
Research
Let’s conduct an external assessment
 Economics
 What will the economy be
like?
 Locally, nationally,
internationally?
 What impact could this
have on us?
 Technology
 What current and future
technologies could influence
or possibly redefine the
market?
 Political
 What legal factors could
impact us?
 Taxes, legal cases, trade
restrictions, labor laws,
environmental laws, political
direction
 Social Factors
 What social factors could
impact us?
 Population growth rate, age
distributions, expectations
 Disasters
 What disasters could occur?
Plan
Let’s define our direction
 What is our sweet spot?
 Do we know what our
passions and talents are?
 Are we building upon our
passions and talents?
 What is our vision?
 What are our values?
 What is our value
proposition?
 What goals should we set?
 What customer goals will we
focus on?
 What employee development
goals will we set?
 What process improvement
goals will we pursue?
 How will we evaluate our
progress?
 What evaluation or
measurement systems will
we put in place?
 What projects will we
launch to reach the goals?
 What projects will we stop?
 What processes will we
improve?
 What budget will we set
apart to achieve our goals?
Do
Create a culture of positive accountability and results
 A system of positive accountability considers both the needs of the
organization and of its employees. It ensures that win/win is a reality
and not just a concept.
 Truly effective leaders understand their people. They understand the
talents and passion of their employees. Most importantly, they align
talents and passions with the required work to create success.
 Weekly reviews occur at all levels of the organization.
 Each person has just a few goals and metrics to track progress.
Each goal is ranked relative to each other.
 Every person, every week, knows what they should be doing, and
how their goals relate to the goals of the people around them.