Corporate Strategic Planning

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Corporate Strategic Planning

Presented by: Mike Monar

2+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

3+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

4

+Session One Introduction to Strategic Planning & Preparation

5+Session Objectives

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

This session will prepare you to:

6+Session Agenda

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

7+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

8

9+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”

10+Group Exercise

What is the difference between a plan and a strategic plan?

What has been your experience with strategic planning?

Laying the Foundation

11+Laying the FoundationPlan: 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.


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

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

The Importance of a Strategic Plan:

14+Group Exercise

How do you think strategic planning is changing?

How can you help to develop your organization's approach to strategic planning …………?

15+Three Key Elements of a Fresh Perspective on Strategic Planning

Strengths-based thinking (Appreciative Inquiry)Open-source Decision MakingDynamic Approach

16+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

17+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

18+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


Maintain

Prepare

Where are we now?

What are our




Implement

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Maintain

Prepare

Where are we now?

What are our




Implement

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21+Preparation

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

22+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

23+Session Review

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

In this session we have learned…

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+Session TwoScanning the Environment


Maintain

Prepare

Where are we now?

What are our




Implement

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Maintain

Prepare

Where are we now?

What are our




Implement

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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

This session will prepare you to…

28+Session Agenda

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

29+Group Exercise

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?

What is your experience with strategic planning?

30+Scanning the Business Environment1. Discovering the right priorities2. Validating ideas3. Stopping history from repeating itself

31+Scanning the Business Environment

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

1. Discovering the Right Priorities

2. Validating Ideas

32+Scanning the Business Environment

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

3. Stopping History from Repeating Itself

33+Group Exercise

To collect relevant data, you must know what information to collect

What should you know before you begin forming strategic goals?

Collecting Relevant Data

34+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

35+SWOT Analysis

36+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

37+Analyzing DataMapping Opportunities: Another approach to understanding your data

Products/Services

MarketsCurrent Related Unrelated

Current Product/Service Development

Related

Market Developmen

tUnrelated

38+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

39+Group Exercise

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?

Focused Data Collection and Analysis

40+Session Review

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


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+Session ThreeMission, Vision, and Values


Maintain

Prepare

Where are we now?

What are our




Implement

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Maintain

Prepare

Where are we now?

What are our




Implement

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Define your organization’s mission, vision, and values

Utilize seven steps to developing an effective vision

Develop more effective company statements


45+Session Agenda

Strategic Company Statements: Mission, Vision, and Values

Developing Effective Company Statements Case Study: Society of Actuaries

46+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?

47+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

48+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

49+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?


Categorize future

developmentsList

expectations

Ascertain the expectations that are most likely to occur

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?


5. Develop future scenarios Use previous expectations as predictors of what could

happen in the future6. 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

54+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

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Strategic Company Statements: Values

Complete package Cutting edge Established leader Grow aggressively Grow conservatively Leading edge No-compromise

Accountability Community Economy Global Minority Responsibility Risk World

Vague, overused, misleading terms to avoid

56+Developing Effective Values

Survey of senior executives at 365 companies in 30 countries in five regions

Values covered in values statements

57+Group Exercise

What are your company values now? What do you want them to be? Are these two areas distinct within your

company values?

Strategic Company Statements: Current or Aspirational Values?

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Case Study

59+ Case Study: SOA Competency Framework

Board of DirectorsMarch 16, 2009

Stacy Lin – Deputy Executive Director and Chief Financial Officer

Mike Monar – President, Monar Consulting

Ken Guthrie – Education Managing Director

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61+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

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Process

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Members

“Continually supply me with highly qualified experts relevant to my needs”

“Promote Sections as knowledge

communities and networking facilitators”

“Provide me with opportunities to

continually evolve and leverage my skill set”

“Preserve our trust and

contribute to the common good”

Employers/ClientsPublic

Transfer KnowledgeOffer a prestigious credential and maintain its value through leading- edge and relevant educational systems and programsLeverage a variety of delivery channels to disseminate and facilitate knowledge transfer

64+Wide Participation

Over 2,300 members*Guidance from Advisory/Validation Groups, Section

Leadership and Staff Leadership

*of 13,675

65+Stakeholder Input

Qualitative and quantitative data collection Stakeholder interviews “Pulse” survey Data Collection/Analysis

Brainstorming, rating and structuring Consensus building

66+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

67

Structuring/SortingPoint Map

Each number corresponds to a knowledge/skill/ability.The map shows the relationships among these.

6967

31

29

93

87

84

78

6860

5546

41

38

3522

99

90

86

83

71

70

57

51

49

4742

27

21

16

53

14

11

96

92

91

85

80 7977

75

52

45

43

40

3936

33

24

23

1913

9

8

98

9795

9489

8882

76

64

62

5856

443730

28

25 18

17

7

345

4

32

74

7372

6665

63 61

59

5450 4832 26

20

15

12 10

6

1

68

6967

31

29

93

87

84

78

6860

5546

41

38

3522

99

90

86

83

71

70

57

51

49

4742

27

21

16

53

14

11

96

92

91

85

80 7977

75

52

45

43

40

3936

33

24

23

1913

9

8

98

9795

9489

8882

76

64

62

5856

443730

28

25 18

17

7

345

4

32

74

7372

6665

63 61

59

5450 4832 26

20

15

12 10

6

1

Cluster & Point Map

Cluster analysis is used tostatistically group skills into distinct groups or competencies.

69

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 5 4.15 to 4.38 4 3.91 to 4.14 3 3.67 to 3.90 2 3.43 to 3.66 1 3.19 to 3.42

Rating Relative Importance

2. Relationship Management and Interpersonal Collaboration

Labels depict the themewithin each competency cluster.Height = Level of importance

70Rating Performance

Color Value █ 3.93 to 4.17 █ 3.68 to 3.92 █ 3.43 to 3.67 █ 3.18 to 3.42 █ 2.93 to 3.17



3. Communication




5 Strategic Insight and Integration

6. Leadership

71

3. Communication



6. Leadership


5. Strategic Insight and Integration

4. Results Oriented Solutions

Importance

Performance


1 2 3 4 5

72

7. External Forces and Industry Knowledge7. 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 challenges97. Integrate complex actuarial concepts with other related technical disciplines.

3. Communication1. 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.

4. Results-Oriented Solutions29. 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.

8. Technical Skills and Analytical Problem Solving16. 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").

6. Leadership77. 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.

Color Value █ 3.93 to 4.17 █ 3.68 to 3.92 █ 3.43 to 3.67 █ 3.18 to 3.42 █ 2.93 to 3.17

3. Communication



6. Leadership




5. Strategic Insight and Integration

1. Professional Values3. 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.

5. Strategic Insight and Integration41. 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 business87. 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.


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.

Layer Value 5 4.15 to 4.38 4 3.91 to 4.14 3 3.67 to 3.90 2 3.43 to 3.66 1 3.19 to 3.42

73+Session Review

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


74

+Session FourWhere Do We Want to Be?


Maintain

Prepare

Where are we now?

What are our




Implement

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Maintain

Prepare

Where are we now?

What are our




Implement

76


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


78+Session Agenda

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

79

Think

Focus

Aim

Thinking Strategically

80+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

81+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?

82+Considerations for Goal Formation 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?

83+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?

84+Considerations for Goal FormationConsider the results of your potential

goals Identify the effects a strategic plan will have

on: Processes Behaviors Performance Financial indicators Business indicators Customers

85+Identifying Goals

Goals

Values

Mission

SWOT

Things to consider:1. How can they be attained?2. When will they be realized?3. Who will be responsible?

86+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 communicati

on

Things to consider:1. How can they be attained?2. When will they be realized?3. Who will be responsible?

87+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

88+Shaping the Goals

Build a business caseAnalyze information and develop

scenariosAddress “what’s in it for me” issues

89

Case Study

90+Merck: Case Study

“To ensure that _____ is successful over the next five years, ______ must…” Initial

Focus Statement

SurveyCollect

Responses

Focus Statement

Rating

Analyze Results

Small Group

Activity

Large Group

Activity

Small Group

Activity

91+Session Review

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


92+Day 1 Review

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

By this point in the strategic plan development you have:

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Day TwoStrategic Corporate Planning

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Maintain

Prepare

Where are we now?

What are our




Implement

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95+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

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+Session OneHow Do We Get There?


Maintain

Prepare

Where are we now?

What are our




Implement

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Maintain

Prepare

Where are we now?

What are our




Implement

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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


100+Session Agenda

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

101+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


Identify the expected results for each tactic Exactly what should happen if the action is

taken? Consider potential outcomes?


In order for our plans to get us where we want to go, they should address the impact to the following areas:1. Organization and Structure2. Standards and Evaluation3. Processes4. Products and Services5. Marketing and Sales6. Customers


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

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



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


107+Validating Tactics

Three key criteria must be met for tactics to be valid:1. Tactics should work to fulfill the organization’s

mission2. The tactics should be related to the goals and

objectives that were identified as part of the organization’s strategic outcomes

3. Tactics should be measurable and their results meaningful to the organization

108+Creating your Strategic Plan Content of your strategic plan should include:

1. Recommendations - how the tactics link or support the strategic outcomes2. Tactics - the actions that will be implemented to support the recommendations3. Timeline - a schedule for implementing the tactics4. Metrics - the measures that will be used to determine the success of the tactics5. Resources - the resources required to complete the tactics6. Assigned responsibility - the leader of the action

109+Practicality

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

110+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

111+Prioritizing Tactic Initiation

Consider your resources: What is needed to

support the plan? How long will it take to

gain support/approval for the resources?

Consider the results: Identify the effects

tactics will have on: Processes Behaviors Performance Financial indicators Business indicators Customers

112+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☐ ☐ ☐ ☐

113+Identifying & Managing Risk

Each time you recognize a business need, assign it a priority and consider the degree of risk posed by the suggested tacticCreate a unique risk assessment tool for your

goalsRisk Statement Risk LevelEmployee morale is at stake because of how employees view the company and their jobs

5 4 3 2 1☐ ☐ ☐ ☐

? 5 4 3 2 1☐ ☐ ☐ ☐ ☐

? 5 4 3 2 1☐ ☐ ☐ ☐ ☐

114+Group Exercise

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?

Identifying & Managing Risk

115+Session Review

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


116

+Session 2Strategic Plan Implementation


Maintain

Prepare

Where are we now?

What are our




Implement

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Maintain

Prepare

Where are we now?

What are our




Implement

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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


120+Session Agenda

Plan ImplementationDesignating Strategy AdvocatesCommunicating the PlanCreating a Strategy Road MapAddressing the Logistics of ImplementationDriving Organizational Change

121+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?

122+Plan Implementation:

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

Preliminary Thoughts

123+Strategic Plan Implementation

Designate strategy process advocates

Communicate strategy to organization

Follow strategy road map

124+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

125+Communicating the Plan

Elements to Include:1. Strategy Overview2. Description of Current Environment3. Findings from Research4. Tactical Plan5. Team Roles & Accountability6. Expected Results7. Next Steps & Follow-up Action


1. Strategy OverviewA. Mission and objectivesB. Executive summary of full report

2. Description of Current EnvironmentA. Overview of services and productsB. Discussion of missed opportunities and the

resulting costs

Elements to Include


3. Findings from ResearchA. Key results of SWOT analysisB. Description of how the findings were used to build

the strategy

4. Tactical PlanA. Description of the tacticsB. Explanation of the plan for implementing each

tactic

Elements to Include


5. Team Roles & AccountabilityA. Description of the duties of and benefits for those

identified to help with implementation

6. Expected ResultsA. Identification of potential measures and/or signs of

success of the strategy

7. Next Steps & Follow-up ActionA. Timeline

B. Maintenance plan

Elements to Include


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

130+Create a Strategy Road Map

Align day-to-day operations with strategic goals

Actionable StepsStrategic Actions

Daily Actions Policies

Strategic Goals

Vision Values Objectives

131+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?

132+Drive Organizational Change

Effectively communicate change

Anticipate how your organization will adapt

Engage the attention of all individuals within the organization

133+Session Review

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


134

+Session ThreeMaintaining the Plan


Maintain

Prepare

Where are we now?

What are our




Implement

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Maintain

Prepare

Where are we now?

What are our




Implement

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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


138+Session Agenda

Maintaining the Plan Evaluating Success The Maintenance Process Make it Last

139+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


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


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

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.

Evaluate Success


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

144+The Maintenance Process

Overall Process: 1. Identify maintenance triggers2. Review the measurement results regarding

the strategic goals3. Review the strategic goals, objectives, and

outcomes4. Identify maintenance needs5. Prioritize the maintenance needs6. Initiate the maintenance

145+The Maintenance Process1. Identify maintenance triggers

Determine what has changed internally or externally Have these changes warranted edits to the plan?

External trigger Economic changes Global expansion Competition

Internal trigger Reorganization of

processes Human resources 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

150+Make It Last

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!

Living Your Strategic Plan

151+Make It Last

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

Living Your Strategic Plan

152+Session Review

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


153

+Session 4Conclusion and Presentations


Maintain

Prepare

Where are we now?

What are our




Implement

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155+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

156+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

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166+Gallup Q12

High Scores Drive Profitability, Value & Growth

1. Do you know what is expected of you at work?2. Do you have the materials and equipment to do your work right?3. At work, do you have the opportunity to do what you do best every

day?4. In the last seven days, have you received recognition or praise for

doing good work?5. Does your supervisor, or someone at work, seem to care about you as

a person?6. Is there someone at work who encourages your development?7. At work, do your opinions seem to count?8. Does the mission/purpose of your company make you feel your job is

important?9. Are your associates (fellow employees) committed to doing quality

work?10. Do you have a best friend at work?11. In the last six months, has someone at work talked to you about your

progress?12. In the last year, have you had opportunities to learn and grow?

From “First, Break All the Rules” by Buckingham

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Corporate Strategic Planning

Documents

strategic planning preparation

strategic planning model8

terms of strategic planning

stretegic planning

plan b

course objectives3 session

core strengths

corporate clients