Barry MacKechnie www.ceo-services.com Copyright MC, Inc. 2010

Strategic Planning Retreat 1-2 days, offsite, entire executive team, facilitated Pre-Retreat Preparation Historical data Revenues Costs G & A Expenses Industry Trends Competitor data Copyright MC, Inc. 2010

Setting goals Method of Goal Setting Revenues Gross Margins G&A Expenses Profits Reality testing your goals Historical data Industry trends Competitor data Copyright MC, Inc. 2010

Revenues Product or service line Region Customer 80% of sales to 20% of your customers Identify those customers Develop sales plans for revenues Reality test the goals Set up systems to collect and report sales results Copyright MC, Inc. 2010

Manufacturing costs Cost analysis of elements Product costs Vendor analysis Inventory levels Service and warranty costs Labor, warranty defects Set up systems to collect and report results Copyright MC, Inc. 2010

Identify major expense items Set goals to achieve Identify how to decrease expense items Set up systems to collect and report results Copyright MC, Inc. 2010

Define goals with key performance indicators Sales by customer, by product or service line Sales by region, by customer, by product or service Purchasing by vendor, product, region Expenses by division, region, branch The smaller the tracking unit the better Set up data collection to trap information Copyright MC, Inc. 2010

Manufacturing costs, units produced, raw materials inventory, waste, labor per unit, cost per unit Inventory, turns, dollar level, vendor lead times, back orders Accounts Receivable, daily outstanding sales, aging Accounts Payable, daily outstanding purchases, vendor discounts Data per employee: sales, profit dollars Copyright MC, Inc. 2010

Achieving your strategic goals requires: Strategic Alignment = 100% of your resources are working on achieving your goals Frequency of reporting = consistent alignment Elevating awareness Copyright MC, Inc. 2010

Tracking and reporting on goals Daily dashboard reporting Sales vs. sales account plans, orders outstanding, inventory, etc. Weekly executive meetings (review KPIs) Monthly company meetings (report on progress and successes) Quarterly strategic plan reviews Track quarterly progress and reassess goals Analyze industry and competitor trends Copyright MC, Inc. 2010

Achieving your goals requires alignment Goals need to be clearly defined and measurable Meaningful key performance indicators Accurate data collection and reporting Consistent review the outcome Celebrations for successes Copyright MC, Inc. 2010

Barry MacKechnie www.ceo-services.com Copyright MC, Inc. 2010