Devising A Strategy for Growth Mission, Vision, Values Brian O’Connell

Think!! Can you out think your competitors?

A business needs strategic thinking before any strategic planning. “If today was the last day of your life, would you do what you are about to do today” Steve Jobs Take Time to Think

The purpose of the business Strength of the Business Strength of the team Current effectiveness Financial resources of the company Target market trends Current market position. Ask and Answer

Real planning and growth strategies are founded on “Business Purpose” Vision: where the business is going in the long-term Mission: the business purpose and reason WHY for existing Values: Who and what the business stands for Know Why

Think about the Business Mission The business mission concentrates on the here and now. A mission statement defines the fundamental purpose of any business. It identifies who the company is, what it does, and who it serves. Business Mission

Why Plan? Die Quickly, Die slowly, Survive or Thrive

Business Planning IneffectivelyEffectively DIE QUICKLY “A poor plan executed well” THRIVE “ A great plan well executed” DIE SLOWLY “ A poor plan executed poorly” SURVIVE “ A great plan executed poorly” Strategy for Growth – Doing the Right things Tactics- Do things right Inefficiently Efficiently

1.Start with goals – what do I want out of this business? 2.Create a vision of what the business needs to look like in order to accomplish your goals. 3.Create a business mission to guide you along the way. 4.Develop strategies to get you from where you are now to where you want to be in the future. Strategies require investments – which means budgets, resources and timelines. Take the Thrive Option

Strategic planning is the process of determining the primary business purpose (the “WHY”), putting in place goals and tactics, then adopting courses of action and allocating resources to achieve the selected goals and tactics. Strategic Planning

Steps in the Strategic Planning Process

Building Blocks for a Successful Business The Team The Product or Service The Market. Each factor or a combination will most likely determine the success or failure of any individual business with a particular focus on the product to market fit.

What causes business success? Has history shown us that the No.1 business killer is lack of market? great business teamgreat marketWhen a great business team meets a stagnant market, market wins. When an average business team meets a great market, market wins. But when a great business team meets a great market, then something really special happens.

Ideal Growth Plan Differentiated Business Strategy Desirable products or Services Big enough market An economical way to target and serve it. A Strategy borne out of your greatest strengths Note: Product quality will not create market size; Steve Jobs learned that lesson with his NeXT business.

How do you Differentiate from your competitors? BUSINESS STRATEGY OPTIONS

Business Strategy Selection

Market PenetrationMarket Penetration – selling more of the same things to more of the same customers Market DevelopmentMarket Development – selling more of the same things to different customers Product DevelopmentProduct Development – selling new products or services to the same customers DiversificationDiversification – selling new products or services to different customers Strategy Drives the Plan

Market penetration is the name given to a growth strategy where the business focuses on selling existing products into existing markets. Market penetration

A market penetration strategy is about focusing on markets and products you know well Maintain or increase the market share Secure dominance of market Driving or buy out competitors Increase Customer Usage Cash Cow – Lower Risk - Smaller Growth Market penetration

Market development is the name given to a growth strategy where the business seeks to sell its existing products into new markets. Market development

New geographical markets Product variations New distribution channels Different pricing to attract different customers or create new market segments Investment – Higher Risk - Bigger Market Market development

Product development is the name given to a growth strategy where a business aims to introduce new products into existing markets Product to Market Fit!! Product development

Research & development and innovation Detailed insights into customer needs Being first to market with new product Investment – New Competentices – Big Enough Market Product development

Diversification is the name given to the growth strategy where a business markets new products in new markets. Product to Market Fit!! Diversification

Research & development and innovation Market research and customer acquisition Team execution Skill upgrading Bigger Investment – Time - Highest Risk – Biggest Rewards Diversification

1. Money To fund cash flow, product, materials and resources 2. Information Market and product research, market trends, market size, customer profiling, customer acquisition 3. People The team needed to facilitate the growth plan, to execute the plan, to manage the costs All Plans need Resources

Growth-Share Matrix

The Planning Process Thinking Done Know Why Business Mission Business Strategy

5 Step Planning Process Imagine – what products or services Dissect – data and customer feedback Expand – market research and tasks Analyse – results, information, investment Sell – customer acquisition, marketing, sales IDEAS

Develop a "strategic hypothesis" and test it out making very small bets. Try to sell the idea to a customer before it’s built, look for a supplier, ask a mentor or advisor who has some expertise in the new area. Test the Plan

Strengths to Leverage: Three to five key strengths you will need to use to achieve the plan. Strengths to Develop: Three to five strengths you will need to develop to achieve the plan. Strategy Planning Tactics

ThriveBusiness Priorities: List out the priorities you will focus on to Thrive Tactical Priorities: Three to five monthly priorities that support the business priorities. SMART Objectives: Projects and/or tasks that are required to accomplish the monthly priorities. Strategy Planning Tactics

Life is a series of investments…this is about you deciding where to spend your time, money and energy. Schedule a steady rhythm of productive meetings— quarterly, monthly, weekly and daily. Evaluate the plan, what’s working and what needs to be adjusted. Establish A Rhythm for Success

Grounded in your Business Purpose, Mission and Core Values, a solid business strategy will help you develop a plan of action and maximise your likelihood of success in achieving your vision. Best Wishes to you in 2015 and beyond. People don’t plan to fail, they just fail to plan