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60 Minute Strategic Plan
g
 Simple
 Flexible
 Can be
C b applied t any i
li d to issue llarge or small
ll
 It’s a proven process that’s been used with
much success by over 10,000 businesses
since 1997

Strategic Planning
g g
Vision  Reality

Intentions  Results

Purpose Performance

THINKING
PLANNING
ACTING

Strategic Planning
g g
 A course of action  Productivity
to address  Profitability
 Revenues
problems or
 Management succession
opportunities  Market positioning
 Identifies the  Geographic expansion
desired vision and  New products and
services
the objectives,
objectives
strategies, tactics,
measures,
measures and
actions

Issue
 An opportunity for, or obstacle to growth
for to,
 Which to choose?
 Highest priority

 Most impact

Strategic Issues…
g
 Improve competitiveness
 Create a customer benefit
 Need t
N d extra effort or performance
ff t f
 Ability to implement

Clues to Your Issues
 Culture  Customers
 Purpose and direction  People
 Structure and  Production
delegation  Service
 Information and
control
t l
 Finances

Indigo, Inc.
g ,
 200 employees
 Employee average age = 43
 30% will retire i 5 years
ill ti in
 49% will retire in 10 years
 They must prepare for the turnover and
loss of knowledgeg

Indigo, Inc.
g ,

Issue:
Workforce Planning
and L d hi D
d Leadership Development
l t

Assumptions
p
Beliefs as to why your strategic issue is
important
 Inaction Worst-case scenario  Unsolved
 Action  Best-case scenario  Solved

Assumptions…
p
 Are reasons to finish regardless of the
obstacles
 Answer: “Why are we spending the extra
Why
effort and resources?”
 A your ROI
Are

$ Difference
 Financial business impact over time
 Rationalizes the ROI for diverting and spending
resources

$100K X 3 years = $300K

Indigo, Inc.
g ,
 Unsolved:
• Declining skills and lost knowledge
• Lack of leadership
• Employees bored and may leave
 S l d
Solved:
• Transfer of skills and knowledge
• Leaders developed
• Employees challenged and motivated

Indigo, Inc.
g ,

$200K/year X 10 years = $2M

Values
Operating philosophies or principles that
guide an organization's conduct
• Integrity
• Customers are #1
• Risk Tolerance
• Results
• Open Communication
O C i ti

Values
 Beliefs and behaviors needed to resolve
this specific issue
 Example
Issue: Create an employee ownership equity
program
Value: Marketplace agility x
Value: Share the rewards 

How Measured?
 Measure = Manage
 Example
• V l
Value: H
Happy E l
Employees
• How Measured?
R d
Reduce employee t
l turnover b 50%
by
 Increase job satisfaction to 100%
 Moral improved by 10% a year

Measuring Values
g
 How do you know if your values are
exemplified by your workers if you don’t
measure them?
 So, make sure you can measure your
values because you choose two to track
and measure in an upcoming step.

Indigo, Inc.
g ,
 Effective and knowledgeable leadership
 Personal accountability
 Teamwork and cooperation

Vision
The best imaginable outcomes for the issue
AB FAB BHAGs
ABsolutely
FABulous
Big
y
Hairy
Audacious
Goals
Stretch

Currently Impossible
y p
 You already be doing them if they weren’t
weren t
 Don’t constrain yourself with realistic or
practical
AB FAB BHAGs

Doable

Quantify
y
Specific
Measurable
Ambitious
Reviewable
Time bound

If you don’t know, guess
If d ’t k
The more clear and precise your vision,
the more compelling

Vague vs. Quantifiable
g
Vague:
Increase revenue

Quantifiable:
Double sales force productivity in 3 years
from $200K to $
$ $400K p salesperson;
per p ;
gross margin no lower than 50%.

Indigo, Inc.
g ,
 Create a formal cross training program by
cross-training
the end of Q1 2012
 C t and i l
Create d implement a mentor program
t t
by end of Q2 2012
 Reduce training redundancy by 50% by
end of Q3 2012

Step 5:
St 5
Customer
Benefits

Customer Benefits
 Customer payoff from the vision
 Your company does not make money—it
provides products or services; in
exchange, customers pay you
C t
Customers validate your vision b
lid t i i by
investing in it (that is, your company)
 They are, in effect the VC for your plan

Customer Benefits
 Your vision must address your customers’
customers
needs
 How do the outcomes for this strategic
issue measurably contribute to my
customers
customers’ success?
 Quantify your customers’ ROI in your
vision. I it cheaper, f t and better? By
i i Is h faster, d b tt ? B
how much?

Indigo, Inc.
g ,
 Answer questions in one phone call
 Higher customer satisfaction than
competitors b 25% i one year
tit by in

Step 6: Other
St 6 Oth
Beneficiaries

Other Beneficiaries
 Co-workers and others needed to help
Co workers
resolve the issue. This can include:
• Employees
• Shareholders
• Vendors
• Alliance partners
 B i =i l
Buy in implementation
t ti
 What payoff will they receive from the
vision?

Indigo, Inc.
g ,
 Employees: For each new verifiable skill
employees learn within 18 months they will
receive a bonus
 Vendors: Will increase the volume of business
they do with them on an average of 25% p
y g per
year
 Owners: The company will increase in value by
p y y
50% within 3 years, so the owners will see their
financial equity increase

Vital Signs
g
 Measurements to audit track and adjust
audit, track,
your plan (key performance indicators)
 Track plan progress
 Indicate if corrective actions are needed

Which to Choose?
 Those that reinforce the accomplishment
of the issue’s visionary outcomes
 Select up to eight from:
• Values (step 3)
• Vision (step
Vi i ( t 4)
• Customer Benefits (step 5)
• Other Beneficiaries (step 6)

Values
 Effective Leadership
Measurement: Employee job satisfaction survey
 Accountability
Measurement: % of commitments every
employee meets or exceeds

Vision
 Cross training program
Measurement: In place by Q1 2012
 Mentor program
Measurement: In place by the end of Q2 2012

Customer Benefits
 Customer questions
Measurement: Total percentage answered in
one call
 Customer satisfaction
Measurement: 25% higher in one year

Other Beneficiaries
 Employee growth opportunities
Measurement: # new skills gained in 18 months
 Shareholder equity
Measurement: 50% increase in 3 years

Obstacles
 Obstructions to the vision
 Make vision currently impossible
 BHAGS = BH performance gap
f
A
T C Effort
L
S
E
Innovation
B
O S
Current
Vision
Vi i
Reality
Performance Gap

Obstacles
 Frame obstacles in a constructive manner
 Turn them from negatives into positives
and excuses into challenges
 “How to” (or H2)

How to (H2)
( )

x
We lack urgency


How to (H2) create
a sense of urgency

Indigo, Inc.
g ,
 H2 obtain budget to create a mentor program
 H2 determine skills and competencies needed
for leadership positions
 H2 identify duplication of training efforts
 H2 motivate employees to participate in
programs

Step 9: Strengths,
Weaknesses,
Weaknesses and
Opportunities

S, W, and O’s
, ,
 What you have going for and against your
issue/vision
• What you have to work with (strengths you
can build on)
• What you don’t have to work with
don t
(weaknesses to correct or finesse)
• Immediate opportunities that you can
leverage
 Stay specific to your issue and vision

Example
p
 Vision: Develop a best-in-class R & D
best in class
facility

X Great dental coverage
 E l fi PhD
Employ five PhDs

Strengths
g
 Managers and supervisors are highly-
highly
skilled and well-educated
 Work culture supports innovation, risk
innovation risk-
taking, and sustainable change

Weaknesses
 No in-house training staff
in house
 Lack of training tracking system

Opportunities
pp
 Distance learning technology
 Leverage local university continuing ed
leadership program

Step 10:
Strategic
Initiatives

Strategic Initiatives
g
 Performance gaps that need to be closed
closed.
Select from:
• Obstacles in step 8
• Weaknesses in step 9
 Identify up to three gaps (to start)
 If you take on too many, you are all likely
to t
t get overloaded
l d d

Which gaps first?
g p
 Select those that
that…
• Are of the highest priority
• Must be closed first sequentially
 Example:
• Issue: S the business
Sell
• First gap to close: Determine market value
 Once you close a gap, replace it with
another open gap

Strategic Initiatives
g
 For each item you select describe:
select,
• The status quo of the gap—the current From
state)
• The successful transition needed—the
desired To state

From To
“As Is” “Want to Be”
Performance Gap

Initiative Champions
p
 Assign one strategic champion or owner
champion, owner,
per initiative
 Responsible for executing and completing
the initiative
D l
Delegates t k and f ll
t tasks d follows up

Indigo, Inc.
g ,
 Mentor Program
g
From: None
To: Formal program
 Training Budget
From: Minimal
To: Adequate
 Leadership Curriculum
p
From: Ad hoc
To: Formal program

Actions
 Activities necessary to close a
performance gap
 What must be done to take a From to a To

Indigo, Inc.
g ,
Mentor Program
From: None
To: Formal program
Actions:
• Define the scope and participation
• Identify and train mentors
• Create mentoring website
g
• Create definition of success
• Create recognition p g
g program
• And so on…

Title
 Gives the project an identity
 Makes it easier to communicate about the
plan
 Is a rallying cry
 Vision in 3 to 5 words

Indigo, Inc.
g ,

Leaders Developing Leaders

We’re done!
You have learned a simple and flexible
planning process you can use to create a
plan that you can begin to implement right
away
…except…
except

Most Strategic Plans Never Get
Implemented

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60 Minute Strategic Plan Webinar

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