Corporate Strategic Planning

Corporate Strategic Planning
Presented by: Mike Monar

Strategic Planning: Course Objectives
Session One: Introduction to Strategic Planning & Preparation Session Two: Where Are We Now? Session Three: Mission, Vision, and Values Session Four: Where Do We Want to Be? Day One

Strategic Planning: Course Objectives
Session One: How Do We Get There? Session Two: Strategic Plan Implementation Session Three: Maintaining the Plan Session Four: Conclusion Day Two Session 4 - Presentations

Session One Introduction to Strategic Planning & Preparation

Session Objectives This session will prepare you to:
Evolve processes by redefining stretegic planning in a new light Identify the importance of strategic planning Think “outside the box” to ensure flexibility and practicality in crafting your strategy

Session Agenda Introductions Strategic Planning Model
Laying the Foundation Three Key Elements of a Fresh Perspective Preparation

Introductions Where are you from? Within what industry do you work?
What do hope to learn during this session? What is your greatest challenge in terms of strategic planning in your organization?

Strategic Planning Model
Maintain Prepare Where are we now? What are our mission, vision, values? Where do we want to be? How do we get there? Implement

- Jim Collins from “Good to Great”
Laying the Foundation “The real path to greatness, it turns out, requires simplicity and diligence. It requires clarity, not instant illumination. It demands each of us to focus on what is vital —and to eliminate all of the extraneous distractions.” - Jim Collins from “Good to Great”

Group Exercise Laying the Foundation
What is the difference between a plan and a strategic plan? What has been your experience with strategic planning?

Laying the Foundation Plan: Strategy:
A plan is an arrangement, a pattern, a program, or a scheme for a definite purpose. A plan is very concrete in nature and doesn’t allow for deviation. If “Plan A” doesn’t work, you don’t alter “Plan A” and try again. Rather, you move to “Plan B;” something totally different. Strategy: A strategy, on the other hand, is a blueprint, layout, design, or idea used to accomplish a specific goal. A strategy is very flexible and open for adaptation and change when needed.

Laying the Foundation The Importance of a Strategic Plan:
Informs operational plans Inspires and excites employees, customers, partners, shareholders, and others about the organization Directs and predicts how the customer base and product line will react or change in the future

Laying the Foundation The Importance of a Strategic Plan:
Identifies risks the organization will have to manage in order to move in a determined direction Serves as a communication mechanism for the company's mission, vision, values and long-term objectives Based on strengths in previous knowledge

Group Exercise How do you think strategic planning is changing?
How can you help to develop your organization's approach to strategic planning …………? Example: globalization

Three Key Elements of a Fresh Perspective on Strategic Planning
Strengths-based thinking (Appreciative Inquiry) Open-source Decision Making Dynamic Approach

Strengths-Based Thinking: Appreciative Inquiry
Focuses on core strengths of an organization rather than its weaknesses Elicits enhanced performance at both an individual and an organizational level Creates a heightened sense of momentum and positive energy Example: HP

Open-Source Decision Making
Creates collective ownership and a greater wealth of ideas Creates synergy in large groups where there are many complex and diverse ideas Must extend outside the organization

Dynamic Approach Modern strategic plans should be dynamic and adaptive, not static: “Strategy, as we knew it, is dead. Corporate clients decided that increased flexibility and accelerated decision making are much more important than simply predicting the future.” -Walt Shill, North American Management Consulting at Accenture

Preparation Consider the scope General outcomes, goals, and objectives
Timeframe for developing the plan Extent of changes

Preparation Use criteria to identify and select key stakeholders
People involved with the formation of a strategic plan People willing and able to commit time and energy to the process Initiate the marketing of the plan Fix bullet points

Session Review In this session we have learned…
The components of the strategic planning model The value in differentiating between a strategic plan and an action plan Three Key Elements that we can apply in the strategic planning process Strength based thinking Open source decision making Dynamic approach When preparing your strategic plan consider general outcomes, goals, objectives, time frame, and stakeholders

Session Two Scanning the Environment

Session Objectives This session will prepare you to…
Examine your organization critically with SWOT Analysis Evaluate your organization’s strengths and weaknesses with internal analysis Perform an environmental scan to identify true opportunities and threats with external analysis Stay one step ahead of the competition by forecasting future trends and market evolution

Session Agenda Scanning the Business Environment
Collecting Relevant Data SWOT Analysis Analyzing Data Staying One Step Ahead

Group Exercise What is your experience with strategic planning?
What role have you taken in strategic planning initiatives in the past? What are some examples of strategic planning efforts that you have seen that were particularly problematic? What has not worked? What are some examples of strategic planning efforts that you have seen that were particularly successful? What has worked?

Scanning the Business Environment
Discovering the right priorities Validating ideas Stopping history from repeating itself

Discovering the Right Priorities Information gathered will inform you whether the outcomes, goals, and objectives identified in the preparation phase are the right priorities for your organization Information will reveal the appropriateness of your outcomes, goals and objectives Validating Ideas

Stopping History from Repeating Itself To best understand the information from your environment, it will be important to take your organization's past development and growth into consideration, identifying strengths and gaps

Group Exercise Collecting Relevant Data
To collect relevant data, you must know what information to collect What should you know before you begin forming strategic goals?

Collecting Relevant Data
Sources of relevant data: Can include departments within the organization (Global) Market History Benchmarking data Survey data Financial analysis External analysis SWOT analysis

SWOT Analysis

SWOT Analysis SWOT Factors Example Factors Present or Future Factors?
Strengths and Weaknesses Internal Products, pricing, quality, people, reputation, processes, etc. Present Opportunities and Threats External Markets, audience, seasonality, trends, culture, technology, government influences, economic conditions, shifts in the workforce, etc. Future

Product/Service Development
Analyzing Data Mapping Opportunities: Another approach to understanding your data Products/Services Markets Current Related Unrelated Product/Service Development Market Development

Stay One Step Ahead of Your Competition
Focus your attention toward growing trends both inside and out of your industry Look to new developments in technology Manufacturing Marketing Employee engagement Evaluate how competitors function Product development Employee engagement and retention Profitability and cost reduction Succession planning

Group Exercise Focused Data Collection and Analysis
Consider what goes into collecting relevant data from your department/organization. How might that data drive the development of the strategic plan? What information might be irrelevant to the strategic plan and become a burden ? What data have you been collecting until now?

How to examine your organization critically with SWOT Analysis How to evaluate your organization’s strengths and weaknesses with internal analysis How to perform an environmental scan to identify true opportunities and threats with external analysis How to stay one step ahead of the competition by forecasting future trends and market evolution

Session Three Mission, Vision, and Values

Define your organization’s mission, vision, and values Utilize seven steps to developing an effective vision Develop more effective company statements

Session Agenda Strategic Company Statements: Mission, Vision, and Values Developing Effective Company Statements Case Study: Society of Actuaries

Strategic Company Statements
Mission What is the purpose of your business? What does your organization do? Vision What do you aspire to be? What should your organization look like in the future? Values What are the values that you expect your company to exhibit at all times? How should your organization act?

Strategic Company Statements: Mission
Purpose of the organization Core function Organization’s reason for existing What the organization does uniquely well Who the organization serves The organization's intentions or values towards the clientele to be served

Strategic Company Statements: Vision
Realistic Based on dynamic business factors within the scope of your organization Credible Consistently reinforced by the employees and the organization Motivating Inspire employees within the organization to carryout the vision Impactful Demonstrate the ability to continuously thrive over time Slide 43 in the old one

Developing an Effective Vision
7. Select the final vision 6. Generate alternative visions 5. Develop future scenarios 4. Set the context of the vision 3. Target the vision 2. Conduct an audit of the vision 1. Understand the organization

1. Understand the organization What is the purpose? Mission? Values? What is the climate of the industry? Who are the internal and external stakeholders? 2. Conduct an audit of the vision Assess direction and momentum Does the organization have a clearly stated vision? Does the organization’s structure support the direction?

3. Target the vision What are the boundaries or constraints of the vision? What must the vision accomplish? 4. Set the context What might the future environment look like? Categorize future developments List expectations Ascertain the expectations that are most likely to occur

5. Develop future scenarios Use previous expectations as predictors of what could happen in the future 6. Generate alternative visions Create several different scenarios for future possibilities Generate several solutions for the same problem 7. Select the final vision Must be compatible with the organization’s values and culture Cannot be applied to alternative scenarios

7. Select the final vision 6. Generate alternative visions 5. Develop future scenarios 4. Set the context of the vision 3. Target the vision 2. Conduct an audit of the vision 1. Understand the organization

Strategic Company Statements: Values
Value statements should: Outline the core values, traits, and qualities the organization expects in its employees Define how individuals are expected to behave when representing the organization Define how decision making is done, how customers are treated, and what rewards/recognition is given

Strategic Company Statements: Values
Vague, overused, misleading terms to avoid Complete package Cutting edge Established leader Grow aggressively Grow conservatively Leading edge No-compromise Accountability Community Economy Global Minority Responsibility Risk World

Developing Effective Values
Survey of senior executives at companies in 30 countries in five regions Values covered in values statements

Group Exercise Strategic Company Statements: Current or Aspirational Values? What are your company values now? What do you want them to be? Are these two areas distinct within your company values?

Case Study

Case Study: SOA Competency Framework
Board of Directors March 16, 2009 Stacy Lin – Deputy Executive Director and Chief Financial Officer Mike Monar – President, Monar Consulting Ken Guthrie – Education Managing Director 59

Case Study: Framework Goals
Input for other strategic and operational goals Support to members as individuals Support to Sections Assist Education committees Support other volunteers 61

Process 62

“Preserve our trust and contribute to the common good”
“Provide me with opportunities to continually evolve and leverage my skill set” “Continually supply me with highly qualified experts relevant to my needs” Members “Preserve our trust and contribute to the common good” Employers/Clients Transfer Knowledge Offer a prestigious credential and maintain its value through leading- edge and relevant educational systems and programs Leverage a variety of delivery channels to disseminate and facilitate knowledge transfer Public “Promote Sections as knowledge communities and networking facilitators” 63

Wide Participation Over 2,300 members*
Guidance from Advisory/Validation Groups, Section Leadership and Staff Leadership *of 13,675

Stakeholder Input Qualitative and quantitative data collection
Stakeholder interviews “Pulse” survey Data Collection/Analysis Brainstorming, rating and structuring Consensus building 65

Brainstorming Focus Statement
"Looking three to five years into the future, to be valued for their professionalism, technical expertise and business acumen, actuaries must have or develop skills that include..." Generated over 1500 responses across all practice areas Narrowed to 100/practice 66

Structuring/Sorting Point Map
2 3 5 34 4 8 24 43 9 85 13 92 40 19 77 96 Each number corresponds to a knowledge/skill/ability. The map shows the relationships among these. 80 79 36 23 53 39 91 75 45 33 11 52 14 78 41 87 22 35 84 6 68 93 60 38 63 61 74 32 54 50 48 26 46 94 31 66 98 89 55 59 25 18 10 76 72 12 73 1 65 20 67 69 37 95 44 7 62 97 56 30 28 15 64 58 17 82 83 88 21 49 29 42 70 99 47 27 51 86 71 90 16 57 67 67

Cluster & Point Map 2 3 5 34 4 8 24 43 9 85 13 92 Cluster analysis is used to statistically group skills into distinct groups or competencies. 40 19 77 96 80 79 36 23 53 39 91 75 45 33 11 52 14 78 41 87 22 35 84 6 68 93 60 38 63 61 74 32 54 50 48 26 46 94 31 66 98 89 55 59 25 18 10 76 67 69 72 12 73 1 65 20 95 44 37 7 62 97 56 30 28 15 64 58 17 82 83 88 21 49 29 42 70 99 47 27 51 86 71 90 16 57 68 68

Rating Relative Importance
3. Communication 1. Professional Values 7. External Forces and Industry Knowledge 6. Leadership 8. Technical Skills and Analytical Problem Solving 4. Results-Oriented Solutions 5 Strategic Insight and Integration Layer Value to 4.38 to 4.14 to 3.90 to 3.66 to 3.42 Rating Relative Importance 2. Relationship Management and Interpersonal Collaboration Labels depict the theme within each competency cluster. Height = Level of importance 69 69

Rating Performance 1. Professional Values 2. Relationship Management
and Interpersonal Collaboration 6. Leadership 5 Strategic Insight and Integration 3. Communication 7. External Forces and Industry Knowledge Color Value 4. Results-Oriented Solutions █ to 4.17 █ to 3.92 █ to 3.67 8. Technical Skills and Analytical Problem Solving █ to 3.42 █ to 3.17 70 70

8. Technical Skills and Analytical Problem Solving
3. Communication 1. Professional Values 7. External Forces and Industry Knowledge 6. Leadership 8. Technical Skills and Analytical Problem Solving 5. Strategic Insight and Integration 4. Results Oriented Solutions Importance Performance 2. Relationship Management and Interpersonal Collaboration 1 2 3 4 5 71

2. Relationship Management and Interpersonal
5. Strategic Insight and Integration 41. Demonstrate sound business judgment/acumen. 35. Recommend business decisions that are accurate, timely, actionable, and relevant based on the analysis results. 46. Make effective decisions using available facts. 78. Demonstrate big picture thinking: incorporating economic, political, and technological knowledge. 55. Understand a company’s risk tolerance and its impact. 60. Anticipate downstream consequences to business decisions. 38. Go beyond the technical aspect of a problem. 84. Look beyond traditional silos of knowledge to understand, and impact, the bigger picture for a business 87. Demonstrate knowledge of the clients core business model and the potential risks that may prevent financial success. 68. Align actuarial analysis and findings with the broader goals of an organization. 22. Develop strategies to add value to the business and company’s finances. 93. Develop a broader view in order to understand the actuarial issues of today’s social problems and not just focus on product sales or specific client concerns. 6. Leadership 77. Develop future actuaries with competencies of business leaders not just subject matter experts. 40. Build relationship of trust with the client by honoring commitments and seeking to understand issues from the client’s perspective. 19. Work collaboratively and across functions to solve complex financial problems. 45. Demonstrate an understanding/knowledge of the client’s environment and the issues the client is facing. 9. Be a trusted advisor. 33. Understand how the client looks at issues. 52. Anticipate and answer high level questions that impact business decisions. 80. Be flexible and open to change. 13. Demonstrate thought leadership - making things happen that are outside the bounds of the "way we’ve always done it". 43. Demonstrate leadership. 91. Expand the scope in which actuaries can play an important role. 85. Work co-operatively in a team environment with professionals from other disciplines. 36. Influence business decisions. 39. Partner with management to provide the vision to see a range of possibilities for the future. 24. Be recognized and admired as a forward-thinking thought leader, role model, and strategic business partner both within the industry and beyond. 96. Be more proactive and visible so that the market will become more aware of the contributions an actuary can make to the normal business process. 75. Understand, at a deep level, the client or the employers business and how the actuary’s work relates to it. 92. Work collaboratively with actuaries and non-actuaries in a business or regulatory environment. 79. Work effectively with many other professional groups that work in related areas such as accountants, economists, demographers, statisticians, computer specialists etc. 23. Serve and be viewed as a bridge and a multi-disciplinary facilitator to ensure enterprise wide profitable growth, financial integrity and shareholder/policy holder value. 8. Demonstrate strong, dynamic leadership providing inspiration, respect, and loyalty for others. 1. Professional Values 3. Demonstrate high ethical standards to ensure the profession is valued. 2. Display a high degree of honesty, loyalty, and integrity. 5. Apply high ethical standards in serving our clients and public. 4. Tell the truth about risk even when it is uncomfortable to do so. 34. Be professional, reliable, unbiased, and focused in serving client needs. 2. Relationship Management and Interpersonal Collaboration 53. Present difficult messages clearly despite pressure to withhold the message. 11. Listen and understand a clients needs before designing a solution. 14. Demonstrate strong interpersonal skills in order to interact effectively with non-actuaries. 1. Professional Values 3. Communication 1. Present complicated information in an organized, logical, and understandable manner. 10. Effectively communicate and present ideas and findings so that audiences such as clients, senior management and other non-actuaries can understand and utilize the information. 20. Communicate complex financial models to senior management in a way that enables them to understand risks and opportunities. 15. Condense complex actuarial calculations and risk analyses and present them to management so that they understand the impacts. 50. Clearly communicate opinions and solutions using language appropriate to the audience. 48. Communicate effectively with all levels of management. 63. Understand and explain business issues and alternative solutions to constituents in a way that results in informed decision making. 26. Effectively communicate information to several different audience levels and recognize the level of the audience in each situation. 6. Influence and persuade non-technical audiences. 72. Express complex ideas in simple terms. 32. Effectively communicate both the problem and solution to an audience. 66. Communicate effectively with different audiences: employees, employers (HR, finance), other professionals (accountants, lawyers). 73. Effectively communicate complex actuarial concepts to a diverse audience including business professionals and politicians not well versed in mathematical concepts. 81. Clearly, concisely, and passionately communicate ideas in a language that is meaningful to business leaders. 74. Communicate persuasively and concisely. 59. Deliver simple, summary level, financial models that effectively communicate business issues and risks. 65. Communicate technical findings to management and the public, both verbally and in writing. 61. Prioritize and communicate key issues in a timely manner and understandable fashion. 54. Write in a form that is grammatically correct, well organized, well reasoned, concise, and to the point. 12. Prepare structured reports covering technical topics for a non-technical audience. 2. Relationship Management and Interpersonal Collaboration 6. Leadership 7. External Forces and Industry Knowledge 7. Look at issues from an overall business framework, rather than only from a technical framework. 25. Understand bottom line impact of business decisions. 44. Understand the impacts to an organization from a variety of sources, not just the standard mortality, morbidity and interest rate impacts. 17. Being able to take new information (such as changes in standards or legislation) and applying it to client situations. 30. Translate complex actuarial issues/findings into business action. 76. Appropriately balance theoretical "correctness" with practical business realities. 58. Sort through a business problem and determine the underlying basic issue that needs to be addressed or resolved. 56. Strike a balance between actuarial exactness and reality. 28. Understand financial statements and drivers of product profitability. 62. Challenge basic assumptions, continually look for new and better ways of doing things instead of doing things the same old way. 89. Step outside actuarial core competencies and develop a broader business acumen. 64. Make the link between technical actuarial detail and the bottom line. 98. Understand the big picture of how businesses make money and the actuaries role in that picture. 18. Demonstrate general business skills to complement technical expertise. 95. Demonstrate creative problem solving that goes beyond traditional analysis. 37. Be able to access a situation from a high level, yet know when it is prudent to dive deeper. 94. Creatively apply technical and business skills to situations and issues beyond the traditional roles of an actuary. 88. Provide timely analysis to reach a recommendation, sometimes with incomplete data. 82. Develop non-traditional solutions to current challenges 97. Integrate complex actuarial concepts with other related technical disciplines. 5. Strategic Insight and Integration 3. Communication 7. External Forces and Industry Knowledge Layer Value to 4.38 to 4.14 to 3.90 to 3.66 to 3.42 Color Value █ to 4.17 █ to 3.92 █ to 3.67 █ to 3.42 █ to 3.17 4. Results-Oriented Solutions 8. Technical Skills and Analytical Problem Solving 8. Technical Skills and Analytical Problem Solving 16. Demonstrate superior analytical skills; the ability to take large amounts of complex information and synthesize it into something meaningful. 21. Understand and manage new risks as technology and/or society develops. 47. Demonstrate ability to answer the question "why?" - demonstrating a grasp of the underlying drivers of the given results. 86. Calculate risk in complex, ambiguous, or risky situations and understand the trade offs. 51. Keep abreast with the technical developments in the field of expertise, beyond the exam syllabus once studied. 42. Demonstrate practical problem solving skills. 57. Identify, set, and defend the key assumptions that go into an actuarial analysis. 71. Learn new methodologies (for example, reserving/capital) and understand the risks inherent in moving to these new methodologies. 27. Understand and interpret regulations governing the practice area and correctly apply them. 70. Be current with regulatory issues and development. 83. Demonstrate innovative and creative skills in problem solving taking into account broad issues beyond the specific subject matter at hand. 100. Demonstrate a complete and thorough understanding of the subject matter that constitutes an area of practice. 90. Produce financial analyses that take into consideration the distribution of risks appropriately associated with the current financial engagement. 49. Decipher complex, and often ambiguous, government regulations and distill the knowledge into clear and useful advice to clients. 99. Quickly and simply approximate an answer, without detailed analysis (a return to "back of the envelope"). 4. Results-Oriented Solutions 29. Demonstrate superior analytical skills that are combined (but not overshadowed) by the ability to communicate technical concepts to a non-technical audience. 67. Distill the results of complicated models and formulas into actionable recommendations (i.e. don’t just point out there is a problem--suggest a solution). 69. Explain the immediate ramifications of a decision and the potential long-term impact of the decision. 31. Provide creative business solutions and communicate them clearly to non-actuaries.

How to define your organization’s mission, vision, and values How to develop more effective company statements by understanding what should be included or avoided The importance of utilizing the seven steps to developing an effective vision

Session Four Where Do We Want to Be?

Use “think, focus, aim” to analyze direct challenges to formulating goals Explore important factors to create feasible, high impact goals Identify and appraise goals that will result in organizational growth and success Facilitate organizational commitment by building a business case for goals that addresses “what's in it for me” issues

Session Agenda Thinking Strategically
Considerations for Goal Formation Identifying Goals Shaping the Goals to Make a Lasting Impact

Thinking Strategically
Aim Focus

Thinking Strategically
The Laws of Nature and the Laws of Business: Surfing the Edge of Chaos Equilibrium is death Innovation usually takes place on the edge of chaos Self-organization and emergence occur naturally Organizations can only be disturbed, not directed

Considerations for Goal Formation
Encourage collective discussion What strengths can you use to pull ahead of your competitors? What goals can you set that will use your organization’s strengths? Which strengths can you develop? How can you use your organizational values to drive new goals?

Adapt your goals to the current business environment Be aware of assumptions you’ve made about the environment and its future Question your assumptions Are your goals realistic?

Group Exercise What assumptions were made the last time your organization devised a strategic plan? How did these assumptions guide the planning? How did they affect the outcome(s)? How would you challenge these assumptions going forward?

Consider the results of your potential goals Identify the effects a strategic plan will have on: Processes Behaviors Performance Financial indicators Business indicators Customers These categories can probably be used to create a new balanced scorecard Customer results: involves results that make an impact on service, delivery, or support involving the customer Business results: reflect the influence of tactics on the processes, procedures, research, and development of the organization as a whole Learning results: results improve the capabilities of employees inside the organization Financial results: improvement of revenue, reduced costs, increased production, reduced risk, etc.

Identifying Goals Goals Things to consider: How can they be attained?
Values Mission SWOT Taking values, data, and mission, to direct goal formation (creating goals consistent with these input factors) Things to consider: How can they be attained? When will they be realized? Who will be responsible?

Identifying Goals Goal: Increase customer satisfaction ratings by 30%
Value: Putting the customer first Mission: Provide best products with greatest service possible Strength: Prompt customer communication Taking values, data, and mission, to direct goal formation (creating goals consistent with these input factors) Things to consider: How can they be attained? When will they be realized? Who will be responsible?

Group Exercise What are some measurable goals you could set that are based on strengths and align with the strategic vision? Goals Values Mission SWOT

Shaping the Goals Build a business case
Analyze information and develop scenarios Address “what’s in it for me” issues Five Steps to Achieving Agility Create shared need. • Assemble a high-level executive task force of information technology, real estate, and human resources executives. • Develop an integrated value proposition. • Identify strategic outcomes. • Align strategy among functions. Shape the vision. • Build a business case. • Assess current workspace utilization. • Analyze information and develop scenarios. • Identify necessary changes in processes and systems. • Address “what’s in it for me” issues. Mobilize commitment. • Involve stakeholders in the design process. • Engage key process enablers. • Establish a blitz team. • Plan rollout. • Manage the change. Monitor progress. • Define shared metrics to gauge progress against goals. • Monitor feedback. • Conduct post-occupancy surveys. • Communicate successes. Make it last. • Engage in continuous program improvement. • Re-evaluate and improve. • Revise rewards systems to remove siloed compensation structures.

Case Study Or shall we use

Merck: Case Study “To ensure that _____ is successful over the next five years, ______ must…” Initial Focus Statement Survey Collect Responses Focus Statement Rating Analyze Results Small Group Activity Large Group Activity

How to use “think, focus, aim” to analyze direct challenges to formulating goals The value in exploring important factors to create feasible, high impact goals How to identify and appraise goals that will result in organizational growth and success The importance of facilitating organizational commitment by building a business case for goals that addresses “what's in it for me” issues

Day 1 Review By this point in the strategic plan development you have:
Reflected on past outcomes, goals, and objectives Considered the value of SWOT, current market data, other indicators Evaluated your organizations mission, vision, and values Identified and developed organizational goals Designed and validated tactics for implementing succession plan Identified risks and how to manage them

Strategic Corporate Planning
Day Two Strategic Corporate Planning

Strategic Planning: Day Two Course Objectives
Session One: How Do We Get There? Session Two: Strategic Plan Implementation Session Three: Maintaining the Plan Session Four: Conclusion Day Two

Session One How Do We Get There?

Design and validate appropriate tactics to achieve desired outcomes Develop a formal draft of your unique strategic plan comprised of specified content Strengthen the strategic plan by focusing on features that make it practical Assess internal and external risks according to business needs and priorities Establish risk management strategies to ensure a successful approach towards achieving goals

Session Agenda Designing Tactics Validating Tactics
Creating Strategic Plan Practicality Prioritizing Tactics Identifying and Managing Risk

Designing Tactics Tactics: the actions that will be implemented to support the recommendations Why categorize tactics? Helps you link tactics back to mission, vision, and values Helps you group tactics and write one plan that focuses on several interrelated tactics Helps you recognize major themes Helps you identify forms of measurement

Designing Tactics Identify the expected results for each tactic
Exactly what should happen if the action is taken? Consider potential outcomes?

Designing Tactics In order for our plans to get us where we want to go, they should address the impact to the following areas: Organization and Structure Standards and Evaluation Processes Products and Services Marketing and Sales Customers Are the next 6-8 slides discussing tactics that help create a strategic plan? Or did we take content from somewhere that was using the word tactics and we should change it to SPs?

Designing Tactics Our strategic plan needs to address:
1. Organization and Structure The need to support a new function or area of business Example: Reorganization of human resources to better fit and support organizational culture and structure 2. Standards and Evaluation Efforts to control quality Example: Developing standards to control quality of manufacturer output

Designing Tactics Our strategic plan needs to address: 3. Processes
Building a better process for customers, delivering technology, operational improvement, etc. Example: New design of the process for an internal accounting system 4. Products and services Design and delivery of new or enhanced services, products, and programs Example: Redesign of a product for new customer demographic

Designing Tactics Our strategic plan needs to address:
5. Marketing and Sales Management of branding, marketing, and sales Example: Developing new sales incentive program 6. Customers Focus toward the customer Example: Revision of a product to better fit a changing demographic

Validating Tactics Three key criteria must be met for tactics to be valid: Tactics should work to fulfill the organization’s mission The tactics should be related to the goals and objectives that were identified as part of the organization’s strategic outcomes Tactics should be measurable and their results meaningful to the organization

Creating your Strategic Plan
Content of your strategic plan should include: 1. Recommendations - how the tactics link or support the strategic outcomes 2. Tactics - the actions that will be implemented to support the recommendations 3. Timeline - a schedule for implementing the tactics 4. Metrics - the measures that will be used to determine the success of the tactics 5. Resources - the resources required to complete the tactics 6. Assigned responsibility - the leader of the action Are these tactics or strategies that we’re discussing? 1-6 used to be in 3 separate slides

Practicality Symptoms of Weak Strategic Plans Overly long Lack focus
Full of fluff Short on actions

Practicality A practical strategy should:
Emphasize a few priorities that directly drive business Include a plan that coordinates between functions and business partners Feature tight integration between customer and business Have a long term focus Maintain flexibility Demonstrate a unique strategic advantage

Prioritizing Tactic Initiation
Consider your resources: Consider the results: What is needed to support the plan? Identify the effects tactics will have on: How long will it take to gain support/approval for the resources? Processes Behaviors Performance Financial indicators Business indicators Customers Formerly “Prioritizing Needs”

Prioritizing Tactic Initiation
Create a worksheet blending these ideas Tactic Resources Required Results Expected Importance of Results to Organization Development of training program on equipment safety 5 subject matter experts to study current system 2 HR admins to develop new system Decrease in absenteeism, turnover 5  4☐ 3☐ 2☐ 1☐

Identifying & Managing Risk
Each time you recognize a business need, assign it a priority and consider the degree of risk posed by the suggested tactic Create a unique risk assessment tool for your goals Risk Statement Risk Level Employee morale is at stake because of how employees view the company and their jobs 5  4☐ 3☐ 2☐ 1☐ ? 5 ☐4☐ 3☐ 2☐ 1☐

Group Exercise Identifying & Managing Risk
Risk Statement Example: Employee morale is at stake because of how employees view the company and their jobs Create a risk management strategy for the risk statement given above What are some possible relationships or interdependencies that should be considered while implementating risk management strategies?

How to design and validate appropriate tactics to achieve desired outcomes The value in developing a formal draft of your unique strategic plan comprised of specified content How to strengthen the strategic plan by focusing on features that make it practical About assessing internal and external risks according to business needs and priorities How to establish risk management strategies to ensure a successful approach towards achieving goals

Session 2 Strategic Plan Implementation

Understand and establish the stages of implementing your strategic plan Include stakeholders to help advocate for your strategic plan while it is in its initial stages Communicate the background, roles, expected results, and planned follow-up for your strategic plan Facilitate internal changes to speed up and smooth the organizational transition

Session Agenda Plan Implementation Designating Strategy Advocates
Communicating the Plan Creating a Strategy Road Map Addressing the Logistics of Implementation Driving Organizational Change

Plan Implementation “Effective implementation of an average strategy beats mediocre implementation of a great strategy every time.” John Sterling, Management Consultant and Strategic Planning Expert According to the Balanced Scorecard Collective, more than 70% of companies with strategic plans never successfully execute their plans. How can you set yourself apart?

Plan Implementation: Preliminary Thoughts
Highlight and be aware of challenging elements that may occur throughout the implementation of your action plan Link budget and time to strategy Recognize which elements of the plan may be particularly challenging, costly, and time consuming Link budget and time to strategy Recognize which elements of the plan that may be particularly challenging, costly, and time consuming

Strategic Plan Implementation
Designate strategy process advocates Communicate strategy to organization Follow strategy road map Omitted step: Establish an evaluation and monitoring system

Designate Strategy Advocates
Select a powerful guiding coalition Assemble a group with enough power to lead the change effort - group should include more than just senior management Encourage innovation and a shared commitment to the company’s success in order to keep the business responsive to changing conditions Ensure there are clearly defined roles Make sure progress stays on focus Keep key team members alert to new opportunities

Communicating the Plan
Elements to Include: Strategy Overview Description of Current Environment Findings from Research Tactical Plan Team Roles & Accountability Expected Results Next Steps & Follow-up Action Number this and next few slide categories Everyone must understand the anticipated end result and why each step is important Use your resources: Meetings, s, memos, telephone conferences, etc.

Elements to Include Strategy Overview Mission and objectives Executive summary of full report Description of Current Environment Overview of services and products Discussion of missed opportunities and the resulting costs

Elements to Include Findings from Research Key results of SWOT analysis Description of how the findings were used to build the strategy Tactical Plan Description of the tactics Explanation of the plan for implementing each tactic

Elements to Include Team Roles & Accountability Description of the duties of and benefits for those identified to help with implementation Expected Results Identification of potential measures and/or signs of success of the strategy Next Steps & Follow-up Action Timeline Maintenance plan Accountability: Accountability and high visibility help drive change. Each measure, objective, data source, and initiative must have an owner.

Encourage questions at every level Create a strategy-supportive work climate and corporate culture Encourage ideas from employees at all levels so that everyone feels they are involved in the implementation

Create a Strategy Road Map
Align day-to-day operations with strategic goals Actionable Steps Strategic Actions Daily Actions Policies Strategic Goals Vision Values Objectives

Address the Logistics of Implementation
Who is responsible for what action steps? When will key steps be completed? Where will these steps take place? Internally or externally? Is everyone aware of why this change needs to take place? How will actionable steps be linked to the long-term strategic plan?

Drive Organizational Change
Effectively communicate change Anticipate how your organization will adapt Engage the attention of all individuals within the organization

The stages necessary for the implementation of your strategic plan To include employees at all levels to help advocate for your strategic plan To communicate the background, roles, expected results, and planned follow-up for your strategic plan The aspects involved in facilitating internal changes to speed up and ease the organizational transition

Session Three Maintaining the Plan

Consider the maintenance of your strategic plan and ensure it remains up-to-date and relevant Include regular review schedules in your strategic plan implementation Identify maintenance triggers and the procedure necessary to initiate positive maintenance actions Develop a culture within your organization that lives and reinforces your strategic plan

Session Agenda Maintaining the Plan Evaluating Success
The Maintenance Process Make it Last

Maintaining the Plan A strategic plan is a dynamic thing:
Needs to respond to changes that occur both within and outside the organization Needs to be maintained and updated

Maintaining the Plan Schedule Plan Reviews
Hold meetings with key team members to discuss the progress of implementation Determine how often each component of the plan will be reviewed Define what goals should be met before each meeting

Maintaining the Plan Evaluate Success
Are you meeting the goals you established when you created the strategic plan? Indicators of success Survey results Documentation ROI External benchmarks

Maintaining the Plan Evaluate Success
About 50% of Fortune 500 Companies currently use balanced scorecards (BSCs) BSCs combine financial and non-financial measures Key Performance Indicators (KPIs) Can include targets such as 100% customer satisfaction, zero product defects, etc.

Maintaining the Plan Consider how you will modify the plan in response to unexpected changes Example: adjusting the target population based on changes in the economy Have viable back-up plans for particularly challenging elements Assess the risk involved when reviewing alternatives or modifications for strategic goals

The Maintenance Process
Overall Process: Identify maintenance triggers Review the measurement results regarding the strategic goals Review the strategic goals, objectives, and outcomes Identify maintenance needs Prioritize the maintenance needs Initiate the maintenance

1. Identify maintenance triggers Determine what has changed internally or externally Have these changes warranted edits to the plan? External trigger Internal trigger Economic changes Reorganization of processes Global expansion Human resources Competition Leadership or structural change Resource availability

In reaction to the triggers, you will need to update core elements Objectives and goals Plan tactics Expected outcomes

2. Review the measurement results regarding the strategy Determine if the organization is on track to meeting the desired goals If not, decide what needs to be changed within the strategy

3. Review the strategic goals, outcomes, and objectives Focus on specific impact of each strategic element, not aggregate business performance Identify what new outcomes are necessary for the organization 4. Identify the maintenance needs Compare internal consistency of strategic elements

5. Prioritize the maintenance needs Identify which of the needs are the most important 6. Initiate the maintenance Initiate an updating of the strategic plan Keep in mind the scope of the maintenance

Make It Last Living Your Strategic Plan Ensure the plan sticks:
Consider using strategically relevant measures of performance as the basis for designing incentives, evaluating individual and group efforts, and recognizing exemplary performance Acknowledge employees working to achieve goals within the strategic plan Communicate success!

Make It Last Living Your Strategic Plan
Define shared metrics of strategic goals and communicate successes Encourage feedback from all employee levels Adjust rewards systems to span across departments and reflect your strategic goals Make your strategic plan part of your organizational culture and have it set the tone for daily business

How to consider the maintenance of your strategic plan and ensure it remains up-to-date and relevant To include regular review schedules in your strategic plan implementation To identify maintenance triggers and the procedure necessary to initiate positive maintenance actions Suggestions toward developing a culture within your organization that reinforces your strategic plan

Session 4 Conclusion and Presentations

Corporate Strategic Planning Review
By this point in the strategic plan development you have: Reflected on past outcomes, goals, and objectives Considered the value of SWOT, current market data, other indicators Evaluated your organizations mission, vision, and values Identified and developed organizational goals Designed and validated tactics for implementing succession plan Identified risks and how to work with them Created a formal draft of your strategic plan

Corporate Strategic Planning Review Continued
Developed and validated key tactics to ensure reaching organizational goals Evaluated risks and their implications on the plan implementation Informed employees and stakeholders on how to strategically plan various elements Explored methods on how to continuously maintain your plan

Presentations

Flip Charts

High Scores Drive Profitability, Value & Growth
Gallup Q12 Do you know what is expected of you at work? Do you have the materials and equipment to do your work right? At work, do you have the opportunity to do what you do best every day? In the last seven days, have you received recognition or praise for doing good work? Does your supervisor, or someone at work, seem to care about you as a person? Is there someone at work who encourages your development? At work, do your opinions seem to count? Does the mission/purpose of your company make you feel your job is important? Are your associates (fellow employees) committed to doing quality work? Do you have a best friend at work? In the last six months, has someone at work talked to you about your progress? In the last year, have you had opportunities to learn and grow? From “First, Break All the Rules” by Buckingham High Scores Drive Profitability, Value & Growth

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