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