| Let's start by talking about strategic focus. | | | | having the team members fill in the gaps. On |
| Leadership models and new business models are | | | | the contrary, it means carefully coaching the |
| key ingredients to success in the 21st | | | | management team through a thinking process. |
| century. The successful 21st century business | | | | Often, the actual strategic plan is even less |
| model is built around servant style | | | | important than the development and growth of |
| leadership with a focus on strategic thinking | | | | the team members participating in the |
| by harnessing the creativity and innovation | | | | process. The strategy team should be trained |
| of the employees. The vehicle to accomplish | | | | on the process you intend to follow in |
| this is the strategic planning process | | | | developing the strategic plan. Once that is |
| | | | competed the CEO/President should present the |
| Strategy serves as the organization compass | | | | vision of the future with copies for everyone |
| and roadmap to future success. Strategic | | | | and then excuse himself from the meeting to |
| thinking must be clear and communicated | | | | allow the strategy team to tear the end game |
| effectively throughout the organization. It | | | | apart and put it back together. The President |
| is not something you can leverage with | | | | will have explained that they have the right |
| technology. It isn't something you will find | | | | and the obligation to challenge the end game |
| in the latest business manual. It is embedded | | | | if they do not agree with any part of it. |
| in the minds of your management team and most | | | | However, any challenge to any portion must be |
| of your employees. It is your employees who | | | | accompanied by alternative recommendations. |
| are on the front line and know what is really | | | | The concept is to finalize a "Vision for the |
| going on with your customers and your | | | | Future" that everyone owns.Step Four---- The |
| markets. It requires effective leadership to | | | | SWOT analysisThe team will conduct a SWOT |
| release the power of the employees in | | | | (strengths, weaknesses, opportunities and |
| building a strategic roadmap to the | | | | threats) analysis to identify critical |
| future.Defining objectives and developing | | | | constraints and potential opportunities for |
| initiatives and action plans to meet those | | | | growth.Step Five --- Developing the Critical |
| objectives is the basis of strategic | | | | Core Initiatives from the Vision for the |
| planning. However, it all starts with an end | | | | FutureCritical core initiatives are over |
| game, a "Vision for the Future."Strategic | | | | arching initiatives that are found within the |
| planning is a management tool. It is used to | | | | Vision for the Future. An example may be |
| help an organization clarify its future | | | | defined as a human resource initiative for |
| direction - to focus its energy, and to help | | | | becoming employer of choice. There are many |
| members of the organization work toward the | | | | independent action steps (Strategic |
| same goals. The planning process adjusts the | | | | Implementation Plans - SIPs) that will be |
| organization's direction in response to a | | | | required to accomplish the Critical Core |
| changing environment. Strategic planning is a | | | | Initiative (CCI). They may include training, |
| disciplined effort to support fundamental | | | | education, leadership development, |
| decisions and actions that shape and guide | | | | compensation and benefits etc.Identifying the |
| what an organization is, what it does and why | | | | CCI's first is necessary to move on to the |
| it does it, with a focus on where it wants to | | | | next step which is creating SIPs for each |
| go and how it is going to get | | | | CCI.Step Six--- Prioritize the CCI's and |
| there.Fundamental decisions, actions and | | | | identify individual SIPs for each CCIA |
| choices must be made in order to develop a | | | | Strategic Implementation Plan (SIP) is a set |
| plan that provides a Roadmap on "How to get | | | | of tasks that supports a Critical Core |
| there from Here."." The plan is ultimately no | | | | Initiative and therefore creates fundamental |
| more, and no less, than a set of decisions | | | | change in the way you do things. SIP work |
| about what to do, why to do it, and when and | | | | deals with long-term improvement and change, |
| how to do it.The scope of the strategy | | | | balancing concern for today with concern for |
| development process for any company is | | | | the future and is a fundamental task of |
| dependent upon individual business needs. The | | | | managerial decision-making. Work against |
| strategic planning process is a time and | | | | SIPs deals with improving things for |
| resource-consuming endeavor that involves | | | | tomorrow.Each Critical Core Initiative is |
| many people in the organization. This process | | | | supported by a set of SIPs that contain a |
| includes both tactical and strategic | | | | sequenced set of tasks, schedules, and named |
| application. The DIY process assumes that you | | | | responsible individuals. The creation of |
| have a good handle on both your internal and | | | | SIPs indicates that the chosen area is one |
| external environment. If you don't you may | | | | that provides a high payoff in terms of |
| want to consider hiring a consultant to do an | | | | innovation and managed change.Step Seven --- |
| internal assessment and survey your customers | | | | Assign sections of the strategy template to |
| and vendors to analyze your external | | | | be completed by different team |
| environment.Hiring a consulting firm can cost | | | | membersDeveloping the strategy document from |
| as little as $10,000 for a simple two day | | | | team homework assignments completed over the |
| facilitation to upwards of $100,000 for | | | | previous weeks is a matter of following the |
| comprehensive involvement by the consulting | | | | template that has been modified to meet your |
| firm during the entire process.So, if you are | | | | specific company needs.Step Eight --- The |
| not inclined to hire an outside consultant, | | | | accountability processThe key managerial tool |
| you may want to follow this ten step process | | | | to ensure steady, consistent progress on SIP |
| for DIY (Do It Yourself) Strategic Planning. | | | | tasks is the formal Operational Review |
| Although it isn't possible to describe in | | | | Meeting (ORM). This is the foundation to |
| great detail the entire process in an article | | | | insure that the strategic plan is successful. |
| (it would require 50 pages) the following is | | | | The ORM is held monthly. The purpose of the |
| an overview of the process.The Ten Step | | | | ORM is to: |
| ProcessLet's identify the steps first and | | | | |
| then we'll discuss each one in a little more | | | | - Clearly understand the status of your key |
| detail . I cannot emphasize enough that the | | | | initiatives. |
| true value of a strategic plan is not in the | | | | |
| document itself. It is in the process of | | | | - Keep executive focus on strategic, rather |
| creating it, involving many of your employees | | | | than just urgent, issues. |
| from the bottom up. This empowers them to be | | | | |
| more effective and better-informed leaders, | | | | - Facilitate communication and support |
| managers and decision makers.1. Select the | | | | throughout the executive team and the |
| strategy team and send a company wide | | | | company. |
| communication | | | | |
| | | | - Formulate emergency responses to |
| 2. Create a Vision for the Future (End Game) | | | | company-wide threats or opportunities. |
| | | | |
| 3. Preparation -----Secure an off site | | | | - Leverage all appropriate company resources |
| location for the kick off meeting which | | | | while maintaining proper accountability for |
| includes training the team on the strategic | | | | performance.The ORM should be attended by |
| planning process. Purchase a strategic | | | | members of the Strategy Team, executive |
| planning template, download one from the web | | | | management and other senior managers. It |
| or e-mail for a generic sample. | | | | will follow a formal agenda and discussions |
| | | | will be driven by two objective measurements: |
| 4. Complete a SWOT analysis. (Strengths, | | | | performance of Key Performance Indicators |
| Weaknesses, Opportunities & Threats) | | | | (KPIs) and progress of SIP task completion. |
| | | | SIP and action item owners will be held |
| 5. Identify the critical core initiatives | | | | accountable for achieving the desired results |
| that are necessary to support the vision for | | | | by the due date indicated on the plan. The |
| the future and to achieve its objectives | | | | entire team will be held accountable for |
| | | | meeting SIP goals.Step Nine --- Developing |
| 6. Develop strategic implementation plans | | | | the presentation for approvalThe strategy |
| (SIPs) that support the identified critical | | | | team will provide the strategy document to |
| core initiatives | | | | ownership at least one week in advance of the |
| | | | formal presentation. Representatives of the |
| 7. Prioritize the CCI's and SIP's based on | | | | strategy team will present the plan and |
| the biggest impact on the bottom line in the | | | | defend it from a considered corporate |
| shortest period of time. Modify and complete | | | | challenge. The purpose of the challenge is |
| the document template to fit your company | | | | to ensure that the plan is well thought out |
| strategy | | | | and based on a realistic assessment of the |
| | | | company's risks and constraints. The |
| 8. Develop an accountability process based | | | | presentation will also demonstrate the degree |
| on a structured monthly strategic review | | | | of commitment and ownership by the team. The |
| | | | objective of the meeting is to formally |
| 9. Develop a presentation of the strategy | | | | endorse the strategy for the company. If |
| for approval by the CEO, owners or Board of | | | | necessary, the team will revise and |
| Directors. | | | | re-present the plan to obtain ownership |
| | | | approval.Step Ten ---- The Roll Out |
| 10. Develop a Roll Out Strategy to explain | | | | ProcessAfter formal acceptance, the President |
| the strategic plan to the entire companyStep | | | | and two to three strategy team members should |
| One --------- Selection and CommunicationIt | | | | schedule meetings to introduce the strategy |
| all starts with communication. The very first | | | | to the entire management team and all other |
| piece of information should be the | | | | employees, thus formally launching the |
| announcement to all employees that the | | | | strategy. This should be a big deal and |
| company is embarking on a planning process | | | | should be completed as quickly as possible. |
| for the future. This memo should be sent from | | | | In person presentations by executive |
| the President asking for everyone's support. | | | | management and strategy team members is |
| (A sample memo is available from ) The memo | | | | highly recommended.Strategy Development |
| will likely announce who the strategy team | | | | OverviewStrategic planning is a management |
| members are and ask for everyone to | | | | tool. It is used to help an organization |
| congratulate them and provide input at every | | | | clarify its future direction - to focus its |
| opportunity. CAUTION: Make sure that you | | | | energy, and to help members of the |
| have talked to any employee in advance that | | | | organization work toward the same goals. The |
| was not picked for the strategy team that may | | | | planning process adjusts the organization's |
| feel that they should have been.Once the team | | | | direction in response to a changing |
| is announced and the process starts make sure | | | | environment. Strategic planning is a |
| you continue to keep employees aware of the | | | | disciplined effort to support fundamental |
| progress and solicit their input. A minimum | | | | decisions and actions that shape and guide |
| of a monthly memo should be issued. The | | | | what an organization is, what it does and why |
| strategic planning process can take from 6 | | | | it does it, with a focus on where it wants to |
| weeks to 12 weeks so it is important to keep | | | | go and how it is going to get |
| everyone informed without releasing too much | | | | there.Discipline is a prerequisite to this |
| detail.The strategy team should include a | | | | process because it requires laser like |
| senior accountant, and should consist of | | | | persistence to result in a productive |
| between seven and ten members. Team | | | | strategic planning initiative. The process |
| selection should be based on competence, | | | | raises a sequence of questions that helps |
| integrity, work ethic, leadership skills, and | | | | planners examine current reality, test |
| future growth potential within the Company. | | | | assumptions, gather and incorporate |
| The team will formulate and present the | | | | information about the present and perform |
| strategic document to the President/CEO and | | | | trend analysis on the future industry |
| the Board of Directors. It is critical that | | | | environment. The prioritization of |
| all employees are empowered and encouraged to | | | | initiatives and SIPs is an essential step. |
| communicate their ideas and issues with any | | | | Although your strategic plan will cover a |
| member of the strategy team. This process | | | | five to seven year period prioritized SIPs |
| ensures accountability and ownership of the | | | | are worked on during the first twelve to |
| strategy at every level in the | | | | eighteen month period based on bandwidth and |
| organization.Step Two --- A Vision for the | | | | resources while other CCIs and SIPs are |
| Future (The End Game)The Vision for the | | | | deferred. It is much more effective to |
| Future (End Game) in business is simply | | | | completely finish three or four SIPs |
| defining what winning the game in your | | | | pertaining to one or two CCI's than to work |
| business is really about. What does winning | | | | on ten or twelve SIPs and accomplish |
| mean. Just exactly what do you want your | | | | nothing.Fundamental decisions, actions and |
| company to be when it grows up? Ask yourself | | | | choices must be made in order to develop a |
| the following questions from the perspective | | | | plan that provides the roadmap to the future. |
| of looking five to seven years into the | | | | The plan is ultimately no more, and no less, |
| future.1. What markets should your company be | | | | than a set of decisions about what to do, why |
| serving five years from now? | | | | to do it, when and how to do it. CEO |
| | | | Strategist is in the process of producing a |
| 2. What products should you be distributing? | | | | three CD set based on the strategic pyramid |
| | | | methodology for release by 1/1/2007 with a |
| 3. Who are your primary competitors? | | | | workbook that will walk you through every |
| | | | aspect of the DIY strategic planning process |
| 4. What are your strengths? | | | | in great detail and provide all the forms and |
| | | | templates necessary for you to successfully |
| 5. What are your competitors' strengths? | | | | complete a strategic plan with your team. |
| | | | E-mail to reserve an advance copy of this |
| 6. How has your marketing strategy changed? | | | | program. In the mean time, you can request a |
| | | | copy of a generic template or get Rick's |
| 7. What are your core competencies? | | | | recently published book "Leading the Pack" |
| | | | which has six "end game visions of the future |
| 8. What is the size of your revenue stream? | | | | examples" in the appendix. - Sign up to |
| | | | receive "The Howl" a free monthly newsletter |
| 9. How is your revenue stream segmented? | | | | that addresses real world industry issues. - |
| | | | Straight talk about today's issues. Rick |
| 10. Do you have a Human Resource | | | | Johnson, expert speaker, wholesale |
| Development plan?The CEO/Owners should create | | | | distribution's "Leadership Strategist", |
| the "Vision for the Future" (End Game) for | | | | founder of CEO Strategist, LLC a firm that |
| presentation to the strategy team.Step Three | | | | helps clients create and maintain competitive |
| --- PreparationRunning a strategic planning | | | | advantage. |
| process is not just designing a template and | | | | |