Transcript of Navigating Strategic Growth October, 2014. Today’s Objectives and Agenda Objective: Understand the...
- Slide 1
- Navigating Strategic Growth October, 2014
- Slide 2
- Todays Objectives and Agenda Objective: Understand the
importance of strategic choices in driving profitable growth Learn
how to create a simple, easily internalized, democratized roadmap
to navigate a winning strategy for your business Agenda: Weve Got
This Covered We Have a Strategy Ok, Do We Really Need a Strategy?
Benefits of a Strategic Plan Why Strategies Fail Elements of a
Strong Strategic Business Plan Building a Plan @ a Glance OGSA
(Objectives, Goals, Strategies, Actions) Examples Cascading
Functional Strategies Whats Required For This Process to Work Check
Up/Check In Process Q&A 2 Quintessent Marketing
- Slide 3
- Weve Got This Covered We Have a Strategy Three Types of CEOs:
Those who think they have a strategy the most abundant Those who
pretend to think that they have a strategy, but deep down are
really hesitant because they fear they dont actually have one fewer
in number Those who do have a strategy very few of them, but often
heads of very successful companies Quintessent Marketing 3
- Slide 4
- Were You Not Listening in Elementary School? 4 Quintessent
Marketing Would you tell me, please, which way I ought to go from
here? That depends a good deal on where you want to get to, said
the Cat. I dont much care where--- said Alice. Then it doesnt
matter which way you go, said the Cat. so long as I get SOMEWHERE,
Alice added as an explanation. Oh, youre sure to do that, said the
cat, if you only walk long enough. Alices Adventures in Wonderland,
Chapter 6 If you dont know where youre going, any road will get you
there. Lewis Carroll
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- Ok, Do We Really Need a Strategy? Leaders have many options
they can pursue to grow their business. A strong strategy
identifies the critical few choices that will allow them to achieve
their goals. It helps the entire organization focus on what really
matters. 5 "If you're a CEO, you're bombarded every minute of every
day with things that need your attention. Unfortunately, that puts
you in the here and now, short-term thinking. What you really need
to do is find the time and have the discipline to step back and
think through what winning is, where you are going to play, how you
are going to play. A.G. Lafley, CEO, Procter & Gamble What is
strategy but resource allocation? When you strip away all the
noise, thats what it comes down to. Strategy means making clear-cut
choices about how to compete. You cannot be everything to
everybody, no matter what the size of your business or how deep its
pockets Jack Welch, former CEO, General Electric Quintessent
Marketing
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- Benefits of a Strategic Plan 1.Improved odds of success/risk
reduction Strong, informed choices Everyone is on the same page
2.Improved alignment and understanding One page summary is easy to
follow and share Works well with employees and other stakeholders
3.Improved productivity Less time wasted on low value activity All
resources moving in the same direction 4.Improved accountability
Goals are clear to all Action plans have owners and deadlines 6
Quintessent Marketing
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- Why Strategies Fail Not Really Making Choices Focus and
concentrate on specific markets, customers, consumers What will you
do, what will you stop doing? Stuck in the Moment Strategies are a
summary/to do list of everything youre currently doing Or did last
year Have No Relationship to Value Creation How do stakeholders
benefit from the strategic choices measurement Its Too Complicated
Its In a Book On the Shelf Nobody Knows About It Mistaking
Objectives and Tactics for Strategy Objective: Get in Shape.
Strategy: Focus on Nutrition and Exercise. Tactics: Limit fats and
sugars, Fitness Classes 3x/week. Goal: 160 lbs. by New Years Day 7
Quintessent Marketing
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- Getting the Terminology Straight Expand distribution into Latin
America Close the deal with xyz company Deliver profitable growth
in the top quartile of our competitive set Reduce cost structure by
10%, generating savings of $1M in 2015 Increase marketing
investment by reducing cost structure 10%, generating savings of
$1M in 2015 Leverage 6 sigma throughout the organization Open new
manufacturing facility by January 2016 Develop medicines that
reduce suffering and serve as a source of affordable care for
children in the developing world Improve throughput by 15% Enter
adjacent category with premium product 8 8 Discussion Examples:
Objectives, Strategies, Goals, Tactics
- Slide 9
- Elements of a Strong Strategic Business Plan Organizations
often miss the opportunity to propel their business to the next
level by failing to create and deploy a simple, disciplined
strategic plan. Four key elements support the achievement of your
business objectives and goals. 1.What To Be. The companys
purpose-driven mission. It defines what success looks like. What
business are we in? What purpose do we serve? 2.Where To Play.
Where the company will compete. What categories and markets will we
play in? What channels and price tiers? 3.How To Win. How the
organization will deliver success. How will we organize for
success? Who will we partner with? 4.What To Do. The action plans
support the above Where to Play and How to Win choices. Each choice
should have a few priority initiatives. Each initiative must have
an assigned leader. These elements can and should be defined on a
single page, along with specific measurable goals for the planning
horizon. Quintessent Marketing 9
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- The Strategic Plan on One Page Mission: (What to Be) Objective
(Define Winning) Strategy (Where to Play) (How to Win) Action Plans
(What to Do) Goals (Measure Winning) Quintessent Marketing 10
- Slide 11
- Building a Plan at a Glance An Example: Your sixteen year old
son/daughter tells you they are beginning to contemplate moving
out, enjoying their independence and finding their way in the world
as a soon-to-be adult. Lets assume you think your son/daughter
belongs in college as a next step. How can you help them create a
winning strategic life plan that they will buy into to guide them
through the next couple of years? Key Questions: Who do you want to
become, what interests you, do you hope to leave the world a better
place What is your purpose/mission? How do you define winning/how
will you know youve successfully moved in the direction of your
mission What is your Objective? How will you measure winning What
are your measurable Goals that link to your Objective? What
strategies will you employ to achieve your objective? Where to
Play/How to Win What specific actions will you take to deliver on
your strategic choices? 11 Quintessent Marketing
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- The Strategic College Plan on One Page Mission: (What to Be)
Leave the world a better place for future generations by improving
the health of marine animals and of our waterways. Quintessent
Marketing 12
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- The Strategic College Plan on One Page Mission: (What to Be)
Leave the world a better place for future generations by improving
the health of marine animals and of our waterways. Objective
(Define Winning) Gain acceptance into a top tier Marine Biology
program at a school where I can enjoy a balanced college experience
including college athletics & Greek life Quintessent Marketing
13
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- The Strategic College Plan on One Page Mission: (What to Be)
Leave the world a better place for future generations by improving
the health of marine animals and of our waterways. Objective
(Define Winning) Gain acceptance into a top tier Marine Biology
program at a school where I can enjoy a balanced college experience
including college athletics, Greek life and go a little crazy
Strategy (Where to Play) Public coastal university with a top 10
program in Marine Biology Midsize university (15k) with Greek Life
and a strong NCAA football program (How to Win) Pinpointed tutoring
biology, SAT/ACT scores Well rounded, unique resume with a focus on
environmental leadership Quintessent Marketing 14
- Slide 15
- The Strategic College Plan on One Page Mission: (What to Be)
Leave the world a better place for future generations by improving
the health of marine animals and of our waterways. Objective
(Define Winning) Gain acceptance into a top tier Marine Biology
program at a school where I can enjoy a balanced college experience
including college athletics & Greek life and general debauchery
Strategy (Where to Play) Public coastal university with a top 10
program in Marine Biology Midsize university (15k) with Greek Life
and a strong NCAA football program (How to Win) Pinpointed tutoring
biology, SAT/ACT scores Well rounded, unique resume with a focus on
environmental leadership Goals (Measure Winning) Visit 3 schools by
May 2015 Earn an unweighted high school GPA of 3.8 or higher
Achieve SAT/ACT scores in the top half of the range for my target
colleges Quarterly participation in relevant extracurricular
activity Gain early acceptance into 2-3 schools by 12/1 senior year
Quintessent Marketing 15
- Slide 16
- Mission: (What to Be) Leave the world a better place for future
generations by improving the health of marine animals and of our
waterways. Objective (Define Winning) Gain acceptance into a top
tier Marine Biology program at a school where I can enjoy a
balanced college experience including college athletics, Greek life
and unspeakable debauchery Strategy (Where to Play) Public coastal
university with a top 10 program in Marine Biology Midsize
university (15k) with Greek Life and a strong NCAA football program
(How to Win) Pinpointed tutoring biology, SAT/ACT scores Well
rounded, unique resume with a focus on environmental leadership
Action Plans (What to Do) Identify top 10 marine bio programs and
visit 3 SE/SW coastal schools Research social/athletics fit online
and by interviewing local grads of the university Get copies of
university student newspapers SAT/ACT practice tests Biology tutor
3x/week Take AP science courses junior and senior year Get summer
internship at Birch aquarium (La Jolla) Start environmental club
Volunteer for ocean/marine cleanup Engage Olivia Pope Goals
(Measure Winning) Visit 3 schools by May 2015 Earn an unweighted
high school GPA of 3.8 or higher Achieve SAT/ACT scores in the top
half of the range for my target colleges Quarterly participation in
relevant extracurricular activity Gain early acceptance into 2-3
schools by 12/1 senior year Quintessent Marketing 16
- Slide 17
- Objectives, Goals, Strategies, Actions (OGSA) - Service
Business Example 17 Quintessent Marketing Mission: Inspire Passion
for Nature and Save Wildlife for Future Generations Objective
Inspire every visitor w/wildlife everyday, by transforming all
elements of the experience to achieve our mission & build
financial stability to succeed long term Strategies 1. Engage
Visitors With Wildlife (Oehler) Improve passion for zoo and its
mission through more personalized & innovative experiences that
improve engagement with an outstanding animal and plant collection
2. Focus On The G.U.E.S.T. (Yelton) Create a visitor-focused
experience with outstanding customer service, facilities, and staff
that encourages repeat visits. 3. Create a Culture of Excellence
(Walton) Create a positive, customer- oriented culture by raising
expectations, empowering staff/volunteers and rewarding exceptional
performance. 4.Financial Strength (Smith) Support programs that
drive net membership, daily attendance and revenue, while enhancing
cost control everywhere in the organization. 5. Promote
Sustainability (Fisher) Develop & utilize innovative approaches
to continually reduce the environmental footprint of the zoo and
engage our visitors re: sustainability in their lives. Action Plans
1a Improve operant condition, integrated collection plan &
expand community participation (Oehler/Jun 14) 1b Inspire
Conservation Action through Wildlife Encounters (Jenike/Apr 14) 2a
Improve facilities and visitor amenities, particularly increased
parking plan (Smith/Nov 13) food quality & service, reptile
house roof, and misting (Fischer Jun 14) 2b Develop Signage Plan to
improve communications to our visitors (Alt/Mar 14) 3a Define the
goals, general principles, & initial elements of a Zoo health
& wellness program (Walton/Dec 13) 3b Refine and broaden reward
and recognition program for staff and volunteers to reinforce
strategic plan priorities (Walton) 4a Refine & implement 5 yr
integrated pricing structure for admissions, membership, group
sales, & education including discounts (Smith/Jan 14) 4b Build
a plan to grow renewals & new member HHs (Amrine/Dec 13) 5a
Continue to drive down usage of natural resources (Mark/Ongoing) 5b
Promote and solidify our standing as the greenest zoo in America,
including solar array; complete & distribute Green Print
material (Fisher/Apr 14) Goals
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- Objectives, Goals, Strategies, Actions (OGSA) - Mfg Business
Example 18 Quintessent Marketing Mission: Make boats owners proud
and loyal enthusiasts by making their maintenance experience easier
and more effective. Objective Accelerate global sales and profit
growth rates to increase shareholder value. Strategies 1. Expand
Global Footprint with new partners, with emphasis on Brazil and
China. (Miller) 2. Enter power tools category, building on liquid
cleaners and manual brush base (Garcia) 3. Consolidate minor brands
under Coralpure mega brand (Williams) 4. Simplify supply chain,
with fewer partners to leverage scale (Brown) 5. Improve employee
engagement, with special emphasis on acquired businesses (Davis)
Action Plans 1a) Define the right product lines, pricing, and brand
support based on test markets (Miller, Feb 14) 1b) Finalize
distribution agreements with key partners in Brazil and Hong Kong
(Fulks, Apr 14) 2a) Qualify new product, brand concepts for target
countries (Baxley, Apr 14) 2b) Qualify the right contract
manufacturers (Marshal, Jul 14) 3a) Complete brand architecture
study and risk assessment. (King, Feb 14) 3b) Finalize inventory
run-out plan. (Smark, Mar 14) 4a) Complete SKU rationalization and
transition forecast (Rodriguez, Apr 14) 4b) Rationalize supplier
base and inform suppliers of changes and timing (Barker, Jun 14)
5a) Establish employee task force with two executive sponsors
(Herbert, Mar 14) 5b)Run baseline measures of employee engagement
with third party supplier (Herbert, Jul 14) 5c) Develop and
implement improvement plans. Track progress. (Lesset, Nov 14)
Goals
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- Strategy Development is a Collaborative Process Top Down CEO
and Executive Team Mission, Objectives Shared Executive Team:
Corporate Strategy Functional Goals: Line Managers Bottoms Up Line
Managers, Direct Reports Tactics 19
- Slide 20
- Cascading Strategies Manufacturing Example Each discipline
creates an annual one page plan that adds functional specificity
and more detail to action plans that link to overall business plan
20 Quintessent Marketing Corporate Strategies 1. Expand Global
Footprint with new partners, with emphasis on Brazil and China.
(Miller) 2. Enter power tools category, building on liquid cleaners
and manual brush base (Garcia) 3. Consolidate minor brands under
Coralpure mega brand (Williams) 4. Simplify supply chain, with
fewer partners to leverage scale (Brown) 5. Improve employee
engagement, with special emphasis on acquired businesses (Davis)
Manufacturing Strategies 1. Expand Manufacturing capacity, in
Brazil and China. (Sheridan) 2. Develop more cost effective liquid
cleaner process to successfully enter power tools category (Herman)
3. Consolidate minor brands under Coralpure mega brand (Williams)
4. Simplify supply chain, with fewer contract manufacturers and
reduced SKU count to leverage scale (Brown) 5. Improve employee
engagement, emphasizing successful supply chain integration of XYZ
acquisition (Wilde) Manufacturing Action Plans 1a) Assess
competitive landscape to identify cost effective co-packers in
Brazil and China (Levy3/14) 1b) Renegotiate/finalize agreements
with selected strategic partners in regions (Fulks, Apr 14) 1c)
Finalize sourcing plan for lead items (Marshall, Apr 14) 1d) Start
up production facilities in lead markets (Wilson, Jul 14) 2a)
Evaluate and select best new liquid cleaner process options
including potential cost savings (Staff, Apr 14) 2b) Finalize
integration of production planning systems with new contract
manufacturers (Lerner Jun 14) 2c) Qualify new process at contract
manufacturers (Marshal, Jul 14) 2d) Build start up inventory (Swan,
Oct 14) 3a) Finalize inventory run-out plan. (Mill, Mar 14) 4a)
Complete SKU rationalization and transition forecast (Rodriguez,
Apr 14) 4b) Rationalize supplier base and inform suppliers of
changes and timing (Barker, Jun 14) 4c) Develop and execute optimal
transition plan (Barker, Sep 14) 5a)Run baseline measures of supply
chain employee engagement at XYZ (Hilton, Jul 14) 5b) Develop and
implement XYZ supply chain improvement plans. Track progress.
(Lite, Nov 14)
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- Whats Required for this Process to Work.... 1.Commitment and
active participation by the CEO Willingness to make hard calls
Clearly define success and stay on a consistent path Manage new
priorities through, not outside, the strategy 2.Commitment from
executive team to align around the strategic priorities Company
goals drive functional goals Recognize resources must migrate to
top priorities Recognize some projects/passion areas wont be
pursued 3.Acceptance that strategic planning is not a one-time
event Development and deployment goes beyond the kick-off session
Formal progress reviews done quarterly. Plan renewed annually.
Becomes the foundation for all you do; all other work and systems
must integrate with the strategic plan Quintessent Marketing
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- Checking Up, Checking In Process Mission Alignment is Job 1:
Who/what do we want to be and for what distinct, unique and
motivating purpose? - Creating the strategy is the next critical
step - Successful implementation follows Implementation requires a
clear, consistent communication of the strategic plans key elements
- employees, - business partners, - retailers, and - investors Get
everyone on the same page to unleash the power of your organization
- People focus on what is most important - People stop pursuing
attractive distractions Create a tracking system and follow up plan
to ensure the work of the organization is clearly connected to the
strategic choices 22 Quintessent Marketing
- Slide 23
- 23 Q & A Quintessent Marketing
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- LIZ HARVEY, Partner Scottsdale, AZ 85255 480 695 4092 Mobile
brian.shook@QuintessentMarketing.combrian.shook@QuintessentMarketing.com
www.QuintessentMarketing.com Scottsdale, AZ 85255 602 980 4634
Mobile
liz.harvey@QuintessentMarketing.comliz.harvey@QuintessentMarketing.com
www.QuintessentMarketing.com BRIAN SHOOK, Partner 24