1. The New Manager’s Course
Management 1:
The New Manager’s Course
Strategic and Business Planning
Alan Kennedy
November 2013
© 2013 Alan W. Kennedy on behalf of Schulich Executive Education Centre (SEEC). All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, recording, photocopying or otherwise, without written permission of the copyright holder
Manager 1: Strategic & Business Planning 1

2. Manager 1: Strategic & Business Planning
About the Presenter
Alan Kennedy B.A. LLB. CMC
Alan is a partner with Gibson Kennedy & Company, a Toronto consulting firm offering Canadian clients strategy counsel and competitive research services since Gibson Kennedy is the authorized correspondent in Canada for Kaiser Associates Inc., a Washington-based consultancy offering global competitive research services to North American based clients. Alan’s practice focuses exclusively on matters of strategy, risk, and capital projects planning and communication using The Alpha Strategies model he pioneered.
Alan has been teaching strategy for the Schulich Executive Education Centre since His principal course is Strategic Management, a three day course on Situation Analysis, Strategic Planning, and Business Planning. In addition to being a member of the faculty for Management I, Alan also teaches in the Insurance Industry Leadership Program, a one week program for insurance industry executives. Alan is a frequent speaker on matters of strategy. Alan’s book, The Alpha Strategies – Understanding Strategy, Risk, and Values in Any Organization was published in February is now available at all online retailers and for free in pdf format at
Alan is a Honor Roll member of the Canadian Association of Management Consultants. Alan received his degrees from Dalhousie University and served as Senior Vice President & General Counsel for both Oxford Development Group and Campeau Corporation and as a member of the Board of Directors for both companies.
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3. Manager 1: Strategic & Business Planning
The Day’s Objectives
how strategic planning differs from business planning
how stakeholder identification & expectations analysis factor in strategy decisions
how a business plan implements the intent of the
strategic plan
Manager 1: Strategic & Business Planning

4. Your Issues / what do you want to learn more about?

5. Module One A Brief Introduction to Strategy & its History
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6. The Issues in Strategy
Source: Robert F. Felton and Pamela Keenan Fritz, The View from the Boardroom
McKinsey Quarterly 2005 Special Edition: Value and Performance
Manager 1: Strategic & Business Planning

7. Manager 1: Strategic & Business Planning
June 4, 2013
A majority of leaders (64 percent) said the biggest frustration for managers is having too many conflicting priorities.
Most executives (54 percent) said they do not believe that their company’s strategy will lead to success.
Most (53 percent) could not say their strategy is understood by employees and customers.
Only a third (33 percent) said they feel the company’s core capabilities fully support the company’s strategy.
Only 21 percent could say all of their businesses leverage their core capabilities.
Manager 1: Strategic & Business Planning

8. “Strategy is a description of a chosen course of action”
Strategy Definition
“Strategy is a description of a chosen course of action”
“Our long term strategy is to be around for the long term. Our short term strategy is to not do anything that would screw-up our long term strategy”
Stanfield’s, The Underwear Company Truro, Nova Scotia
Manager 1: Strategic & Business Planning

9. A Competitive Researcher’s Perspective on Strategy
- 8 strategies are common to all organizations
- 3 types of strategy are common to all organizations
- 1 strategy is the organization’s dominant strategy
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10. 8 strategies are the source of all subsequent implementation strategy
and organization design 10
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11. Origin of The 8 Strategies
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12. The 8 Strategy Definitions
Business Definition /
Mandate
Focus on positioning the business / on interpreting the mandate parameters
Risk
Focus on the unacceptable and ways to manage it
Growth
Focus on type and rate of growth
Financial Management
Focus on sourcing, allocation, and management of capital and revenues
R&D / Technology
Focus on the creation and/or use of intellectual capital / technology
Organization Mgmt
Focus on sourcing, allocation, and management of personnel
Marketing / Communications
Focus on identifying and capturing customers and clients (i.e marketing through to sales)
Service Delivery / Production / Manufacturing
Focus on fulfilling the marketing promise of value / relevance
Manager 1: Strategic & Business Planning

13. The Generic Strategies
Business Definition /
Mandate
Business Positioning: Niche, Specialty, Commodity
Mandate: Narrow Interpretation; Middle-of-the-Road; Broad Interpretation
Risk
Focus: Internal; External; Both
Management: Accept, Avoid, Transfer, Mitigate
Growth
Type: Internal, External (acquisitions, partnerships, alliances, joint ventures)
Rate: Bigger, Smaller, No Change
Financial Management
Sourcing: Capital markets, debt, equity, self-funding
Allocation: Strategies; Business Units
Management: Performance; Control, Both
R&D / Technology
Follower, Leader, Adapter
Organization Mgmt
Sourcing: Internal; External
Allocation: Employee; Contract; Outsourcing
Management: Entrepreneurial; Bureaucracy; Adhocracy; Centralized, Decentralized
Marketing / Communications
Identifying: (ie. Marketing): Product / Service; Price; Place; Promotion
Capturing: (ie. Sales): Targeting; Approaching; Pitching; Overcoming Objections; Closing; Follow-Up
Service Delivery / Production / Manufacturing
Delivering the Promise: Needs / Requirements; Inputs; Production; Quality; Delivery; Follow-up (Warranty)
Manager 1: Strategic & Business Planning

14. Management 1 Course Structure
The 8 Strategies
Wednesday
Business Definition / Mandate
Risk
Growth
Financial Management
Thursday
R&D / Technology
Organization Management
Monday, Tuesday, Friday
Marketing / Communications
Tuesday
Service Delivery / Production / Manufacturing
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15. Understanding Current Strategy
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16. Manager 1: Strategic & Business Planning
Module Two
How strategic planning differs from business planning
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17. Manager 1: Strategic & Business Planning
3 types of strategy are common to all organizations
Influencers
are the three strategies which most closely guide and constrain implementation of the Alpha and the remaining four strategies, the Enablers
Alpha
is the one strategy which leads the organization and sets its character.
e.g. Nike is Marketing
Enablers
are the remaining strategies
Manager 1: Strategic & Business Planning

18. Examples of Dominant Strategy
Organization
Dominant Strategy
IBM
Business Definition (but not Mandate)
WalMart, Stantec, McDonald’s
Growth
CHMC, Bank of Canada, RCMP, Sun Life, OTPP, CRA
Risk
Bank of Montreal, Ontario Financing Authority
Financial Management
Frank Gehry Architects
Organization Management
Google, Intel, NASA, NRC
R&D / Technology
Pepsi, Coca-Cola, Nike, The Bay, United Way
Marketing / Communications
Toyota, FedEx, Amazon, many Hospitals, much of Government
Service Delivery / Production /
Manufacturing
Manager 1: Strategic & Business Planning

19. How are your strategies organized?
Alpha
Influencers
Enablers
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20. Blackberry The Alphas Blackberry Business Definition
To be the global leader in wireless data communications
Risk
To protect our intellectual property and to protect network security and integrity
Growth
To focus on expanding our customer and subscriber base through marketing efforts, strategic alliances, and acquisitions
Financial Management
To access capital markets through TSX / NASDAQ listings
Technology
To focus research on broad market applications for products derived from the existing technology base.
Organization Mgmt
To use the strength of market position and value proposition to enable HR “pull” potential employees and to leverage proximity and relationship with University of Waterloo
Marketing
To encourage the adoption of our platform by wireless network service providers globally and their customers, and to focus on licensing components of the BlackBerry platform to key handset and service vendors
Manufacturing
To deliver wireless data security and network reliability
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21. Organization Management
Blackberry
Alpha
Influencers
Enablers
Organization Management
Manufacturing
Financial Management
Marketing
R&D / Technology
Risk
Growth
Business Definition
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22. Manager 1: Strategic & Business Planning
The Alphas
Tarion Strategic Plan
Mandate
Administration of the ONHWP Act.
Risk
Use of insurance industry practices and regulatory authority to manage risks to new homebuyers
Growth
Rise and fall with the new home building industry cycles
Financial
Use of insurance industry capital reserving practices; revenues from fees from sale of warranties and from builder licensing
Technology
Enable management productivity; e.g. call center, web-based services
Organization
Regulator decisions are isolated from interference by the Board or the Insurance function
Marketing
To educate new home buyers and home builders
Service Delivery
To deflect risk away from the program onto builders
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23. Manager 1: Strategic & Business Planning
Alpha
Influencers
Enablers
Organization Management
Mandate
R&D / Technology
Risk
Service Delivery
Marketing
Financial Management
Growth
Manager 1: Strategic & Business Planning

24. The One-Page Strategic Plan
The 8 Strategies
Strategy Description
Alpha
Influencer
Enabler
Business Definition /
Mandate
How is the organization positioned?
What is the mandate? -
Risk
How are risks identified and managed ?
Growth
How does the organization grow?
Financial
How are the finances managed?
R&D / Technology
What is the focus of R&D / Technology ?
Organization
Where are people sourced; how are responsibilities and authority delegated; what is the culture i.e. alpha?
Marketing / Communications
How does the organization identify and capture customers / the perception of value?
Service Delivery / Production
How are products / services are produced?
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25. factor in strategy decisions Manager 1: Strategic & Business Planning
Module Three
How stakeholder identification & expectations analysis
factor in strategy decisions
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26. The Facts that Support Strategy Decisions
Current Strategy
Stakeholder Expectations
Customers (Users)
& Markets (Need Demand)
Industry Dynamics
Competitors
Trends
Best Practices
Manager 1: Strategic & Business Planning

27. Stakeholder Identification
Stakeholder Types
Actual Stakeholder Names 
The Authority Group
Those Stakeholders who approve the plan and authorize implementation
The Involve Group
Stakeholders who should be involved because of the role they will play in implementation
The Inform Group
Stakeholders who need to be told what to do so that their actions are consistent with implementation
The Consider Group
Any Stakeholders not falling in any of the above categories and who could have a response to implementation
Manager 1: Strategic & Business Planning

28. Expectations Are Widely Used for Individual Planning
Exceeding Expectations
Meeting Expectations
Not Meeting Expectations
Manager 1: Strategic & Business Planning

29. Expectations in Public Sector Planning
Manager 1: Strategic & Business Planning

30. Cabinet Implementation Expectations
Cabinet Strategy
Cabinet Implementation Expectations
Ministry Strategies
To Satisfy Expectations
Business Plan Detail
Manager 1: Strategic & Business Planning

31. Boeing Goal Flowdown / Expectations Process
See:
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32. Canadian Military Use of Expectations Based Planning
Source:
a.k.a. Expectations
See:
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33. The 3 Levels of Expectations
Which level applies to you?
Rigid
Clear & Rigid Expectations Set Across all 8 Strategies
Moderate
Expectations not set for 3 or 4 the 8 Strategies
Do Your Own Thing
Usually only 2 or 3 Expectations Identified
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34. Tell us about your functional area
The 8 Strategies
Expectations Imposed
on your function / department / business unit
Business Definition /
Mandate
What is the mandate of the function / business unit
/ department ? -
Risk
What expectations are imposed by risk?
Growth
What expectations are imposed by growth?
Financial Management
What expectations are imposed by financial management?
R&D / Technology
What expectations are imposed by R&D / Technology?
Organization Management
What are the expectations are imposed by Organization Management?
Marketing / Communications
What expectations are imposed by marketing / communications?
Service Delivery / Production
What expectations are imposed by service delivery / production?
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35. Manager 1: Strategic & Business Planning
Module Four
How business plans implement the intent of the strategic plan
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36. Building the Business Plan
You have just been made the manager of a facility within your organization.
Which expectations seem to be the most important achieving success
and what would be your plan to meet those expectations?
The 8 Strategies
Expectations imposed on the operator
Business Definition
To offer fast food services within a hospital
Risk
To comply with all mandated health and safety policies and procedures
Growth
- To grow the per capita spend
Financial
To follow mandated reporting requirements
To achieve imposed margin expectations
To make all required remittances to the VP Finance of the hospital on time
Technology
- To use mandated information systems
Organization
To maintain a staff of 25 – 30 to be able to run the location 24/7
To develop a customer-centric team
To hire and train employees to deliver to mandated service standards
To comply with the Collective Bargaining Agreement at all times
Marketing
- To follow all mandated promotions
Service Delivery
To be a 24 / 7 operation
To follow all mandated processes for service delivery
To deliver to mandated quality standards
To offer all mandated products and services
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37. Manager 1: Strategic & Business Planning
Pros & Cons Analysis
Expectation:
Pros
Cons
Manager 1: Strategic & Business Planning

38. Building the Action Plan – a Visual6.
Long Term
Short Term 4. F G 3. 2. 5. D E B C 1.
Today A
Steps
What
How
Who
Schedule
Metrics
Budget 1.
A to B - 2.
B to C 3.
C to D 4.
D to E 5.
E to F 6.
F to G
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39. Seeing the Plan as the Big Picture
Long Term 4. 6. F G 3. 2. 5. D E B C 1.
Mid Term
Today A
Short Term
Manager 1 Strategic & Business Planning

40. Manager 1: Strategic & Business Planning
The Day’s Objectives
how strategic planning differs from business planning
how stakeholder identification & expectations analysis factor in strategy decisions
3. how a business plan implements the intent of the strategic plan
Manager 1: Strategic & Business Planning