Stategic Planning Summary 091610
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This document provides an overview of strategic planning concepts and processes. It defines key terms like vision and intent statements, core competencies, layers of advantage, and strategic mapping. Tools for strategic planning like the four quadrant chart and SWOT analysis are also introduced to help assess opportunities, strengths, weaknesses and threats. The overall aim is to help companies develop a strategic plan to achieve their vision and goals.
Stategic Planning Summary 091610
- 1. Strategic Planning The missing piece to profitability & growth! S tr at e gic P l an Strategic Planning Summary G. Berthelson September 2010
- 2. Strategic Planning Process Overview Company Strategic Corporate Balanced Strategic Vision & Intent Vision & Goals Scorecard Planning Goals Process This session’s Focus
- 3. Strategic Planning Mind Map Corporate Financial Goals Strategic Relationships Vertical Market Opportunities Other Horizontal Core Competencies Market Opportunities SWOT Analysis Layers of 5 Year Plan Strategic 4 Quad Chart Advantage Sustaining Market Opportunities Plan Enablers Existing Market Share Competitive Analysis Strategic Intent Statement Vision Statement
- 4. 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.
- 5. 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.
- 6. 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. Deliver Outstanding Shareholder Value 0 FINANCIAL Generate Strong ROCE Build Strategy Map 3 1 Grow in Non- Maintain Our 0 Traditional Markets 1 Sustain Organic Profitability 3 Growth 3 www.pm2.ca CUSTOMER Preferred/Required 2 System & Component 5 Supplier 8 Be the Problem Solver Deliver Value through: Quality; Time; and 5 Service 12 Innovation Operational Excellence Continually Improve INTERNAL Develop New Customer Satisfaction Component & System on Cost, Quality & Solutions 12 Be easy to do business Time Requirements 4 with 17 5 Innovatively add 6 Be Successful at new competencies 8 Integrating new competencies 2 ENABLERS Attract, Grow and Nurture a High Enhance Tools & Enable Our Strategy 2 Retain the Right Performance Processes Through Technology 0 People Culture 5 5 5 5
- 7. 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.
- 8. 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.
- 9. Layers of Advantage COMPETITIVE 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
- 10. 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?
- 11. 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.
- 12. 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.
- 13. Four Quadrant Chart Extend our capabilities Mega opportunities (Premier Plus 10) New Core Competencies Strengthen the core Enter new markets (Fill in the blanks) (White spaces) Existing (1) Existing New Market (1) Bottom boxes can be Layers of Advantaged based
- 14. SWOT Analysis Internal Strengths Weaknesses External Opportunities Threats