Strategic Planning Is Deciding What Not To Do!

"Strategy is rendering choices about what not to do is as important as choices about what to do. Setting limits is another function of leadership.

"Deciding which target group of cost, varieties, and needs company should serve is fundamental to developing strategy. But so is deciding not to serve other customers or needs and not to offer certain features or services. One of most important functions of an explicit, communicated strategy is to guide employees in making choices that arise because of trade-offs in their individual activities and in day-to-day decisions." Michael Porter Harvard Business Review Nov-Dec 1996, page 77

Strategic Planning Is About Choosing

• market/customer segments to serve
• critical internal business process to excel at
• what value proposition to deliver to customers in targeted market segments
• what individual/organizational capability is required

Strategy Focus

A strategy usually focused on:

• Customer relationships
• Core competencies
• Organizational capabilities

Strategic Goals Must Be Clearly Defined

• To create shared understanding throughout organization
• To motivate employees to successfully implement organization' strategy
• To focus on changes necessary to accomplish strategy

Strategic Planning Questions

• Where are we now?
• Where do we want to go?
• How do we create value in the marketplace/market space?
• How do we intend to get there?
• When will we arrive?
• Who is responsible?
• How much will it cost?

How Do We Intend To Get There?

• Customer service
• Acquisitions
• R&D
• Marketing
• Sales
• Operations
• Finance
• Organizational structure
• Increased customer satisfaction
• Trailblazer
• Me too

Strategic Planning Themes

1. Grow Sales and Market Share, Improve Product/Service Mix

• New products/services to:
  • current customers
  • new customers
  • new geographies
• Obtain new customers
• Increase sales to current customers
• Increase value-added of products/service;
• Re-price products/services
• New uses for current products/services
• New joint ventures
• Improve channel and product/service mix
• Delete unprofitable products/services, customers

2. Improve Productivity

• Increase sales per employee
• Reduce unit cost
• Reduce complaints

3. Improve Market Value

• Reduce unused capacity
• Reduce working capital
• Dispose of assets with poor returns
• Reduce cash-to-cash cycle
• Improve employee and customer knowledge

Strategic Planning Review Questions

• What is our strategy?
• Is our strategy actionable?
• Has our strategy been validated? How?
• Is the strategy tuned to our competitive position and  attractiveness of our markets?
• Will it pay off financially? How do we know?
• How will customers and competitors respond?
• Will competitors allow us to implement our strategy?

Call John Antos, Tom Devane, Maurice Greaver, Steve Peacock at ( 972-980-7407) to find out how to create a great strategic plan to help you reach your goals and give you peace of mind