Strategic Planning Defining and Creating an Exceptional Company Phillip Rosebrook JR, CR Business Mentors Defining and Creating an Exceptional Company.

Strategic PlanningStrategic Planning

Defining and Creating an Exceptional Company

Phillip Rosebrook JR, CRBusiness Mentors

Defining and Creating an Exceptional Company

Phillip Rosebrook JR, CRBusiness Mentors

Imagine Imagine

• 1 year• 3 years • 5 years• 10 years

• 1 year• 3 years • 5 years• 10 years

… Planning to Fail… Planning to Fail

• What are you doing substantially different this year

• Are you experiencing the same day– Life is a series of choices - so is your business

• There is very little that you have to doYour position is the result of your plan or lack of

• What are you doing substantially different this year

• Are you experiencing the same day– Life is a series of choices - so is your business

• There is very little that you have to doYour position is the result of your plan or lack of

Proactive BusinessesProactive Businesses

• Synergistically working toward shared destination

• Lack of plan forces subjective & reactive decisions

• Synergistically working toward shared destination

• Lack of plan forces subjective & reactive decisions

What You Want to be When You Grow up?What You Want to be When You Grow up?

• Benefits •Communicated •Measured•Implemented•Coached •Celebrated•A comprehensive Approach

• Benefits •Communicated •Measured•Implemented•Coached •Celebrated•A comprehensive Approach

Your Business is Not about Jobs or AccountsYour Business is Not

about Jobs or Accounts• Big picture framework• Details paint the picture• Predictable decisions

• Big picture framework• Details paint the picture• Predictable decisions

Components of an effective planComponents of an effective plan

• Destination• Partnership alignment• Vision• Strategic Goals• Financial and objective measurements

• Destination• Partnership alignment• Vision• Strategic Goals• Financial and objective measurements

Plan ComponentsPlan Components

• Cash plan• Personnel plan• Operating budget • Staff development• Marketing action plan • Plan review and realignment

• Cash plan• Personnel plan• Operating budget • Staff development• Marketing action plan • Plan review and realignment

DestinationDestination

• Owner motivations• What is truly important to you?

• What does it look and feel like - more detail the better

• When things are working well…

• Owner motivations• What is truly important to you?

• What does it look and feel like - more detail the better

• When things are working well…

Partnership AlignmentPartnership Alignment

• Values• What are you working for? • Imagine your life in 10 years• Are you on the same page• Job descriptions• Compensation• Skills and needs• Exit plan and strategy

• Values• What are you working for? • Imagine your life in 10 years• Are you on the same page• Job descriptions• Compensation• Skills and needs• Exit plan and strategy

VisionVision

• People want to be a part of something bigger

• More clearly defines destination• Easily communicated to your staff

• Potentially more subjective than goals

• How are you perceived

• People want to be a part of something bigger

• More clearly defines destination• Easily communicated to your staff

• Potentially more subjective than goals

• How are you perceived

Strategic GoalsStrategic Goals

• Core goals about 5 total• Goal definition• Longer term big picture with short term component

• Focus on core business activities and needs.

• Core goals about 5 total• Goal definition• Longer term big picture with short term component

• Focus on core business activities and needs.

Modeling your OrganizationModeling your Organization

• Production capabilities• Gross and net margins• Key operational expenses• Capital requirements

• Production capabilities• Gross and net margins• Key operational expenses• Capital requirements

Financial and Objective Measurements

Financial and Objective Measurements“In order to effectively manage you need to have effective measurements.”

• Financial understanding required• Dynamic measurements needed• Objective measurements prevent subjective decisions

• Roadmap to your destination• Individual, team, departmental expectations• Enables easy performance management• Allows you to model your company• Core of effective management

“In order to effectively manage you need to have effective measurements.”

• Financial understanding required• Dynamic measurements needed• Objective measurements prevent subjective decisions

• Roadmap to your destination• Individual, team, departmental expectations• Enables easy performance management• Allows you to model your company• Core of effective management

Cash PlanningCash Planning

• Understand the turn on receivables and how to turn revenue to cash

• Funding Options– Internally funded – Bank or other funding

• Understand the turn on receivables and how to turn revenue to cash

• Funding Options– Internally funded – Bank or other funding

Personnel PlanPersonnel Plan

• Hire to your weaknesses• Look to your business model• Financially justify each position

• Explore profiling to manage “fit”

• Hire to your weaknesses• Look to your business model• Financially justify each position

• Explore profiling to manage “fit”

Operational BudgetOperational Budget

• Start with goals and build backwards

• Expectations– Marketing - 2%-5% of revenue– Sales and production - less than 10%– Total overhead - 25%-40%

• Equipment, vehicles, facilities need to be justified financially

• Rent, lease, own?

• Start with goals and build backwards

• Expectations– Marketing - 2%-5% of revenue– Sales and production - less than 10%– Total overhead - 25%-40%

• Equipment, vehicles, facilities need to be justified financially

• Rent, lease, own?

Staff DevelopmentStaff Development

• Formal training - plan training activities and opportunities - strategic not reactive

• Ongoing internal training program• Scholarships and outside oportunities

• Upward mobility & develop a deep bench

• Formal training - plan training activities and opportunities - strategic not reactive

• Ongoing internal training program• Scholarships and outside oportunities

• Upward mobility & develop a deep bench

Marketing Action PlanMarketing Action Plan

• First step is goal setting• Match actions to goal acheivement• Set budget based on expectations - 1.5% -5% or revenue

• Team approach not department• Sales-based culture• Measure and reinforce • Create a strong online presence

• First step is goal setting• Match actions to goal acheivement• Set budget based on expectations - 1.5% -5% or revenue

• Team approach not department• Sales-based culture• Measure and reinforce • Create a strong online presence

Plan Review and Realignment

Plan Review and Realignment

• Bump into - review often• Market conditions• Quarterly review• Annual planning

• Bump into - review often• Market conditions• Quarterly review• Annual planning

Implementation Action Plan

Implementation Action Plan

• Planning is good - Execution is essential

• Unwrap and plan and prioritize• Strong communications• Short term victories with long term focus

• Expectations, modeling and coaching• Enjoy the journey• Plan and personnel assessments

– Don’t be afraid to make adjustments

• Planning is good - Execution is essential

• Unwrap and plan and prioritize• Strong communications• Short term victories with long term focus

• Expectations, modeling and coaching• Enjoy the journey• Plan and personnel assessments

– Don’t be afraid to make adjustments

Constraints of Growth Constraints of Growth

• Organizations are limited not by strengths but greatest weaknesses

• Plan needs to address and shore weaknesses

• Avoid hiring to strengths• Make your plan realistic• Cash considerations

• Organizations are limited not by strengths but greatest weaknesses

• Plan needs to address and shore weaknesses

• Avoid hiring to strengths• Make your plan realistic• Cash considerations

Effective organizations

Effective organizations

• Proactive • Strong leadership• Balanced approach• Clear communications• Coaching and celebration

• Proactive • Strong leadership• Balanced approach• Clear communications• Coaching and celebration

AdaptationAdaptation

• Maintain focus• Things change• Market conditions• Cash flow• Goal when things slow

• Maintain focus• Things change• Market conditions• Cash flow• Goal when things slow

Managing ChangesManaging Changes

• COMMUNICATION• What stays the same• Strategically plan the changes• Create contingencies• Know when to walk away from your plan

• LEADERSHIP

• COMMUNICATION• What stays the same• Strategically plan the changes• Create contingencies• Know when to walk away from your plan

• LEADERSHIP

Strategic Plan SummaryStrategic Plan Summary

• Begin with the end in mind• If you are not in control of your company - someone else is

• Proactive planning creates synergy

• A company or a job? • Make your time count

• Begin with the end in mind• If you are not in control of your company - someone else is

• Proactive planning creates synergy

• A company or a job? • Make your time count

Thank You Thank You

Phillip Rosebrook JR, [email protected] Rosebrook JR, CR

[email protected]