Practical Strategic Planning This presentation will give you an overview of how to do a strategic planning initiative.
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Practical Strategic Planning
This presentation will give you an overview of how to do a strategic planning initiative.
What is strategic planning?
• Create, plan and motivate to execute actions that will achieve an specific business mission.
Contents:
1. Define context
2.Rank ideas
3.Balance and index
4. Plan & motivate 5.Control
1. Define Context
a) Set a Frameb) Key Factors & Tools
• Define “What we want” (Mision)• Define “Why we want it” (Vision)• Define “What is allowed” (Values)• Define a “Time frame” (Levels)
a) Set a frame but dream big
1. Define Context
b) Key Factors & Tools
• All levels of the organization share their perspective about the past, present and future, internally and externally .
• All participants are present during the hole planning or there will be no commitment.
Swot Analysis
Porter´s 5 forces
Political Economical
Social Technological
Legal
Pestel AnalysisMental maps & questions
All the Tools are inputs for the session + the balance results
• Output of the milestone:
The light after the tunnel id Defined(What, why and when: Mission, vision and timeframe)
• A Brainstorm of good, bad, and the ugly(what to increase, decrease, avoid, etc. defined)
• Do clusters of information (Use the categorization to balance: Financial, customers, processes and learning and
growth)
b) Key Factors & Tools
c) Add numbers to the statements d) Rank by importancee) find relationships.f) Break it down in to a path
2.Measure &
Compare
Example:
The Mission states: …”be one of the TOP 3 in the industry by cost and quality ”
SWOT analysis showed: our price is not the best in the market we do not have any share in Asian marketOur warranty rate is 1/100 for early life and 1/300 mid to end of life
Factor Average We best
Prices $ 3.5 $ 4.2 $ 2.99
PPMs 650 10000 140
c) Add numbers to the statments
Not all the statements will have numbers but we encourage to find them in order to have A real proportion of the truth, where you are and where you want to go.
d) Rank by importance
Make a database of factors: Worksheet or list (Output)• From the SWOT & PESTEL you will find several ideas.
Rank them and set a limit or scope.• Define an action to mitigate the harm or increase
the helpful factors
SWOT Factor Weight Importance Total Rank ActionS Factor 1 10 9 90 1 Get the certifi cation
O Factor 2 8 6 48 2 Present product draft
S Factor 3 4 1 4 4 Brand display
W Factor 4 6 3 18 3 develop suppl iers
Source Name (use a decision matrix: importance, score and rank)
Set a limit: You won’t be able to do everything at once
e) Find relationships
Go deeper: From the Ideas, SWOT, Maps and PESTEL
Take all your weaknesses and see if there are relationships between them, Are they one cause of the other? It´s a fact or a perception? Why they have this perception? . Map all this ideas, make a conclusion and address the findings as one to three projects. (you can do the same for the strengths or opportunities)
Make the same thing within groups and between groups in order to improve your organization: How we work together?
Output: 1 to 3 projects defined for the yearMayor problems exposed and known (adjust)
f) Break it down in to a path and located it in a timeline
• Use this only if the magnitude or duration of the task is not known or if the actions needed to achieve it, and if it falls in different years.
• Define the year when the actions will be made and the departments involved.• Add a sign if investment of special resources are needed
Get CertificationPrepare
for Audit2 months
Apply On time1 week
Have the Audit1 week
•Once you have your Mayor tasks defined to achieve your Mission: break them in to a tasks within a timeframe
Balance and index
You have already selected the mayor drivers to the year (Projects, actions, and end of year desired state)
i) Balance them in the “Porter´s perspectives”.j) Assign the Key performance Index that will be
impact by the project.k) Assure that those are present in the balance
scored card (Macro and micro)
Balance and índex
Balance and index
High level clusters should fall in one of the four Porter´s perspectives. This is theCore structure of the plan
Financial•Increase revenue•Lower costs•investments
Customers
•Suppliers, internal customers•Immediate customers, end users
Processes•How we do things. •Eliminate waste•Technology
Learn & Growth
•Learning curve•Trainings•Employees demands•Culture
Balance and index
The balance will assure the success of the company, we need Happy customers and happy employees with effective process and financial success.
Financial•EBIT > 5%•Scrap < 0.5% over sales•variation over budgets < 5%
Customers
•Quality indexes < X% or PPMs•Returns, warranties, stops, urgent demands, etc
Processes•Productivity •OEE > 70%•Rework < 3%•Maintenance, corrective and preventive, TPM, etc
Learn & Growth
•Training > 80%•Employee survey index > 90%•Employees demands covered to 50%•Personal certifications > 80%
You can only improve what you can measureYou can have 3 levels of the same metric: To assure involvment
Scrap over sales from the plant / from the division/ from the project
• At this point you can built a structure:Set a general Board and feed it with subsystems, for example you
can have a company board feed by an operational, R&D and Central function board
Balance and index
Financial Customers Processes Learn & Growth
Financial Customers Processes Learn & Growth
GENERAL
Financial Customers Processes Learn & Growth
Financial Customers Processes Learn & Growth
R&D OPERATIONS Central
• Define a Balance scored card per Area, assure alignment between each level.
• No less than 8 Key performance index not more than 10.
• Translate the BSC into personal targets.
Balance and index
Example of three KPIs in a BSC
4. Plan & motivate
Communicate & Motivate
• Make a kick off of the Strategy and its indexes to all the organization:
communication plan (Output)
• Develop a personal goal sign in Each employee with their bosses Each employee agrees their contribution to the grater
good
Go!
Control
• Evaluate results and adjust:
Month by month follow you Balance Score Card.
At the middle of the period go back and evaluate the
performance and adjust the plan if needed.
Control• Go virtual: Make the score cards available for everyone.
• Learn: Adjust the strategy system after learning from the process
• Routine: be sure the eyes are over the objectives every step of the way
• Interactive and interaction: People is Key, listen, respect agreements.
• Reward: Establish a reward system based in three factors: Recognition, monetary reward and access to knowledge
Summary
Where we
want to be
Where we are
DreamBe realistic
At the end of
the period
Summary
Where we
want to be
Where we are
DreamBe realistic
At the end of
the period
Tools: e.g SWOTMarket analysis
Mission Vision
Set Iniciatives
Define macro-projectsAction plans
Battle plansSub projects
Balance Score cardTargets per employeesTime
Evaluation system
Targets Achieved
People needs to believe, in order to believe they need to be part of the input.
Group management and empowerment are key to have a successful business
If you want your business is driven by its own, teach to everyone to be a CEO
Comments welcomed: [email protected]
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