PMI NEW Chapter November 13, 2018 Program Strategic Planning - - PowerPoint PPT Presentation

PMI NEW Chapter November 13, 2018 Program Strategic Planning

A Great Performing Organization

Strong, positive leadership culture

Solid Business Planning - current year, 3-year plan and 5-year plans “Employee Centric” engagement promotes

• utstanding

customer service

Environment of recognition

Sustainable: transition /positive relationships; succession planning; sound financials; strong employee development/growth

Highly visible contributor

• f

community

Assumption: we are here because we recognize the importance of strategic planning!

Our Agenda for tonight…

• What is Strategy and Strategic Thinking?
• Find Your “Why?” (discussion of importance)
• Value Proposition (Core Values)
• Mission/Vision (statements)
• Strategic Planning Process

A Dream written down with a date becomes a Goal. A Goal broken down into steps becomes a Plan. A Plan backed by action becomes REALITY.

Strategic Planning (www.en.Wikipedia.org) Strategic planning is an organization’s process of defining its strategy, or direction, and making decisions

• n allocating its resources to pursue this strategy.

Strategy has many definitions, but generally involves setting goals, determining actions to achieve the goals, and mobilizing resources to execute the actions. A strategy describes how the ends (goals) will be achieved by the means (resources).

Thinking Outside the Box

Learn to Read the World - tomorrow's marketplace, not yesterday's reality.

• Set aside 30 minutes per week to:

– Flip thru magazine you would normally never read (related to a similar organization or discipline) – Watch Webinar for unrelated industry/professional area – Visit a business that you've never seen before – Google a topic that you've never googled before – Spend a few hours with a group of people who are from an age, culture industry different from yours

Thinking Outside the Box

• Structured Innovation Sessions every quarter (New Ideas)

– What can I/we do today that I/we could not do yesterday? (possibilities) – What do I observe in the world that...

• Startles and surprises me? (relevant changes)
• Delights and intrigues me? (help your customer)
• Terrifies me? (threats)
• Internal & External SWOT Analysis…

The Strategic Plan (Dave Barrett/ http://davidbarrett.ca/david/)

The Action Plan for Your Business

• The as-is state…

» What are we? Where are we? » SWOT (see appendix for additional information on SWOT)

• Where do we want to be?

» Time Frame » Describe the state – customers, products, etc.

• Gap Analysis

» What do we need to get there? Team, Funding, Operations

• The Plan

» How do we get there?

https://managementhelp.org/blogs/business-planning/2014/05/01/business-plans-vs-strategic-plans//

See Appendix for more details… HOW… WHAT…

PMI Chapter / PM Forum Based on Simon Sinek’s Why?

To improve personal and corporate outcomes so that people are empowered to make ideas a reality.

More information contained in Appendix

Take five minutes to document your Mission statement

Sample Mission Statement: XYZ is committed first and foremost to meeting the exact specifications of

• ur customers. We believe customer

satisfaction can only be obtained by relentless precision in what we do, and in turn we pass that perfection

• n to our clients.

Create Your Value Proposition

• Think about your target audience
• What do they care about?
• What challenges do they face?
• What values or benefits will your organization

bring them?

• Why should they choose you?
• How will engaging with you leave them stronger?

Value Proposition

• Starting point for a strong brand
• Sum up in a few words

– What value do you promise to bring to your customers – The reason why your audience should choose you (over the competition)

Structure of a Value Proposition

• Headline (Grab attention, describe value)
• 1-3 Top Benefits

– One or two supporting sentences (what you

• ffer, why it is unique, why customer should

choose you)

Take five minutes to document your value proposition/vision statement

Sample VISION Statement: North American Industry Leader of Manufacturing Support

The 5 second rule!

The Smartest Way to Get Around

• One tap and a car comes directly to you
• Your driver knows exactly where to go
• Payment is completely cashless

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The 5 second rule!

Soundtrack your life

• Let us bring you the right music for every mood

and moment.

• The perfect songs for your workout, your night in,
• r your journey to work.

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Take five minutes to document your values/value statement

• 1. Quality First
• 2. Proactive Can Do Attitude
• 3. Drive Satisfaction through family values
• 4. High Integrity in all transactions
• 5. Culture of Team
• 6. Solution-focused

sample VALUE Statement:

Recognition is related to performance, Appreciation is related to the Person Appreciation should be considered as a core value…

The Strategic Planning Process

• 1. Vision Statement
• 2. Organizational Values
• 3. Focus Areas for Strategy
• 4. Strategic Objectives/Organizational Goals
• 5. Share Your Plan

How do you identify strategic focus areas?

Focus Area Rules of Thumb:

• Identify 3-6 that really matter here and now for

your organization

• Approximately 5 words each

– Not to broad (i.e., be profitable) – No jargon (i.e., maximize) – No metrics

Simple Format for Business & Strategic Focus Areas

CEO Tools - Processes to Optimize Autonomy 2019 2020 2021-2023 Customer Acquisition Revenue Generation Cash and Financing Operational Execution Human Resources Digital and IT Administrative Support

Simple Format for Business & Strategic Focus Areas

“Cascade Strategy” Categories 2019 2020 2021-2023 Expansion/Growth – e.g. Expand network to Asia Pacific Revenue/Cost – e.g. Increase sales Customer Satisfaction – e.g. Repeat business from customers Compliance – e.g. Zero regulatory issues Innovation – e.g. Launch new product lines Engagement with a Stakeholder Group – e.g. Engage with our community Employee Happiness – e.g. Proud and Happy Staff

Execution

Organizational Goals:

• 2-4 Goals per Focus Area
• Contents: Action + Detail + Metric + Units + Deadline
• Goals rule of thumb:

– Clearly stated outcome and a deadline – Specific and Measurable – Tangibly achievable

Project Goals (The What!)

• Specific
• Measurable

(DELIVERABLES?)

• Attainable
• Realistic (relevant)
• Time-bound

“Our goal is to improve customer satisfaction by 30% by 1st Jan 2021 by offering an extraordinary experience to all of our customers as measured by an improvement in

• ur Net Promoter Score”.

The Business Plan – Who and What What the business provides.

• Executive Summary
• Business Overview
• Sales & Marketing Plan
• Pricing and Distribution
• Operating Plan
• Human Resources Plan
• Action Plan
• Financial Plan

The Strategic Plan – How and When

How see self, How want others to see us, How measure success

• Executive Summary
• SWOT
• Goals
• KPI’s
• Industry Analysis
• Competitive Analysis & Advantage
• Marketing Plan
• Team
• Operations Plan
• Financial Projections

https://managementhelp.org/blogs/business-planning/2014/05/01/business-plans-vs-strategic-plans//

www.ceotools.com

Critical Success Factors

• Share The Plan
• Set clear expectations
• Build a culture of learning and innovation
• Create a supportive climate
• Believe that the impossible – isn’t
• Communicate, Communicate, Communicate…

Appendix – Extras for your use…

Finding Your Why?

Video

00:00 – 08:11 11:00 – 13:30 17:16 – End…

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THE WHY STATEMENT FORMAT

Simon and his team provide us with a simple format to use as we draft our WHY Statement: TO ____ SO THAT ____. The first blank represents your contribution — the contribution you make to the lives others through your

• WHY. And the second blank represents the impact of

your contribution.

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49

Golden Circle

Exercise

Take 20 minutes as a team to document your what, how and then your why.

Share your Why! Start from the inside and work your way out!

As you start or pursue your mission, you need to share your WHY with others. Worry less about the specs, products or services and more about why you're doing what you're doing. If you search for your WHY and don't find an answer, it's time to take a step back. Think about what excites you, what you want to see in the world and how you can feel fulfilled. Make sure that your day-to-day work and actions fit and are taking you towards this overall vision. Then try to articulate that vision into your WHY.

Strategic and Business Plans

• Business plan. Strategic plan. There’s a lot of overlap between the two, but

there are also some crucial differences you should understand.

• A business plan answers "what do I want to do?" questions. It includes your

company’s organizational structure, marketing plan and financial projections. Its purpose is to define where you want to take your business. It’s often the founding document of a new business.

• A strategic plan, on the other hand, answers "how will I do it?" questions. It

includes a detailed action plan for the next few years to achieve your company’s goals.

• Both should include a SWOT analysis (Strengths, Weaknesses, Opportunities,

Threats) and be reviewed regularly so that they’re up to date.

https://www.bdc.ca/en/articles-tools/business-strategy-planning/define-strategy/pages/business-plan-vs- strategic-plan-whats-difference.aspx/

Strategic and Business Plans

• While a strategic plan is a type of business plan, there are several

important distinctions between the two types that are worth noting.

• A strategic plan is primarily used for implementing and managing the

strategic direction of an existing organization. A business plan is used to initially start a business, obtain funding, or direct operations. The two plans cover different timeframes as well. A strategic plan generally covers a period of 3 to 5+ years, whereas a business plan is normally no more than one year.

• A strategic plan is for established businesses, organizations and

business owners that are serious about growing their organization. Whereas a business plan could be for new businesses and entrepreneurs who are startups.

https://onstrategyhq.com/resources/what-is-the-difference-between-a-business-plan-and-a-strategic-plan/

Strategic Plan

• A strategic plan is used to provide focus, direction and action in order to

move the organization from where they are now to where they want to

• go. Whereas a business plan is used to provide a structure for ideas in order

to initially define the business.

• A strategic plan is critical to prioritizing resources (time, money and people)

to grow the revenue and increase the return on investment. Whereas a business plan is critical if the business is seeking funding.

• A strategic plan focuses on building a sustainable competitive advantage and

is futuristic in nature. Whereas a business plan is used to assess the viability

• f a business opportunity, and is more tactical in nature.
• A strategic plan is used to communicate the direction of the organization to

the staff and stakeholders. However, a business plan is used to present the entrepreneur’s ideas to a bank.

https://onstrategyhq.com/resources/what-is-the-difference-between-a-business-plan-and-a-strategic-plan/

What a Business Plan Contains

Marketing plan

• This includes a specific description of the goods or services you propose to offer, your

target market and your unique selling proposition to customers. What’s compelling and different about what you’re offering compared to the competition? How will you market it? Operational plan

• What do you need to execute your vision? This is your organizational structure, HR

requirements to staff your team and your needs in terms of space, equipment and distribution. Financial plan

• Here’s where you outline your detailed financial projections, including growth

expectations over the next couple of years. Lenders and investors want to know they’re going to get paid back or make a return.

https://www.bdc.ca/en/articles-tools/business-strategy-planning/define-strategy/pages/business-plan-vs- strategic-plan-whats-difference.aspx

Where to get more detail:

https://www.atkearney.com/strategy-and-top-line- transformation/article?/a/the-a-t-kearney-strategy-chessboard