Strategic Planning for the Effective Leader

Steve Holt

NWMSU SBTDC

Chillicothe, Missouri

Learning Objectives

• Be able to relate strategic planning to the roles of the leader

• Be able to describe a strategic planning process• Be able to describe two or three techniques that

will help busy leaders direct an effective strategic planning exercise

• Be able to describe two or three techniques to organizing and conducting a planning retreat

• Be able to describe two or three techniques to achieve the desired outcomes of strategic planning

Roles of the Leader

• Crystallize the mission

• Facilitate communications

• Develop subordinates

• Delegate

• Utilize resources wisely

Source: Training Handout Butler Manufacturing, circa 1980, author unknown

Nine Step Strategic Planning Process—Pre-Retreat Activities

• Review the organization’s vision

• Review the organization’s mission

• Identify the organization’s strengths and weaknesses

• Identify the organization’s threats and opportunities

• Evaluate the competition

• Set objectives or goals

• Identify strategies to achieve these objectives

• Identify actions utilizing the strategies to achieve objectives

• Establish controls

Nine Step Strategic Planning Process—Retreat Activities

Vision/Mission Statement

• For our context, assume it exists

• If not will have to develop

• Essential to the strategic planning process

• Review vision and mission statement to ensure they remain relevant

• Tip: Throughout you want to engage all of the organization in the process, communicate, and translate.

Vision Example

• Dairy equipment company

• “Our vision is to build milking equipment and milking parlors that are food processing facilities.”

Mission Samples

• Google: "To organize the world’s information and make it universally accessible and useful."

• Yahoo: “To connect people to their passions, their communities, and the world's knowledge.”

• Walmart: “We save people money so they can live better.”

• SW Airlines: “Southwest Airlines is dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit.”

SWOT

• Identify the organizations Strengths, Weaknesses, Opportunities, and Threats.

• What do we do well? What are the positive things about this organization?

• What do we not do well? What are the negative things about this organization?

• What are things that we can take advantage of? What are our opportunities?

• What are the threats to this organization? What are the roadblocks that stand in our way?

SWOT Process and Tips

• Opportunity to engage the entire organization

• Use email or a survey

• Give them some background/training, tell them how it fits

• Ask them to respond with two or three ideas comments on each

• Combine and group ideas

• Share results

Strengths Examples

• Chamber

– Ambassador program

– Positive image in the community

• Arts organization

– Commitment and strength of our grassroots network

• Food Company

– Award winning products

Weakness Examples

• Chamber

– Lack of strong focus and marketing message

• Arts organization

– An inactive board

• Food Company

– Lack of computerized control systems

Threat Examples

• Chamber

– Economy

• Arts organization

– Funding

• Food Company

– Flight of talent

Opportunity Examples

• Chamber– Build on collaborative relationships

– Strengthen our marketing message

• Arts Organization– Engage our board

– Utilize our grass-roots network to improve our funding situation

• Food Company– Stress our awards in our product marketing

Competitive Review

• Every one has competition– In the product and services that you offer

– For the budget dollar you want to tap into

• Competition has some influence on your organization’s activities

• Competitive review is an ongoing and constant activity

• Researching the competition might reveal opportunities or threats

Competitive Review Examples

• Chamber – Other service organizations

• Arts organization– Splinter group representing larger local art

organization members

• Food company– Catalog companies

– Fundraising companies

– Wholesale companies

Set Objectives/Goals

• Having taken a 360 degree look at the organization and its environment set goals.

• Look out one year and further as dictated by:– Business cycle – Length of time to bring to market

• Capitalize on opportunities and improve on weaknesses• Goals are SMART

– Strategic– Measurable– Attainable– Relevant– Time-bound

Select Strategies

• Strategies are the options that an organization has to choose from or methods that can be employed to achieve an objective

• Strategies should balance strengths and weaknesses

• Build on those things that the organization does well while recognizing those things that the organization doesn’t do well

Identify Actions to Achieve Objectives

• Actions are the steps that are required to achieve the set objectives and SMART goals.

• Someone is accountable

• Resources are allocated

• Someone monitors

• Target dates are set

Establish Controls

• Budgets

• Review schedules

– Monthly meetings

– Employee reviews

• Communicate, discuss goals and share progress

– MODOT: “Completed as Promised”

Examples--Chamber

• Goal: Increase membership to 300 in 2010• Strategy: Utilize strong ambassador group and

chamber sales representative to recruit new members.• Actions:

– Marketing committee develops marketing message –”Reasons why you should be a chamber member.”

– Board and ambassadors receive training on marketing message

• Controls– Budget supports activity– Review membership attainment at monthly board

meetings and quarterly ambassador meetings

Example—Food Company

• Goal: Incorporate award winning designation in all product promotion for this year’s promotional cycle.

• Strategy: Use competitive food awards to sell more products.

• Actions: – Marketing departments redesigns labels to include award

image

– Marketing department shoots new food photograph with new label and award

– Marketing department produces marketing brochure featuring award winning food items.

Planning Retreat—Review Portion

• Location—Relaxing and away from distractions• Tip—Assign responsibilities to team members

and do as much as possible as pre-work • Ice Breaker—help participants clear their minds

to get engaged—team member leader• Remind/Review pre-retreat group work—lay the

groundwork—team member leader– Mission/Vision– SWOT– Competitive analysis

Planning Retreat (cont.)

• Set objectives/goals– Divide into work groups– Assign task to identify two to three goals– Evaluate and select

• Select Strategies that support goals• Develop actions and responsibilities• Develop controls

– Budgets– Measures– Meeting dates

Realizing the Strategic Planning Outcomes

• Manage your SMART goals

• Manage your budget

• Manage your meetings

– Monthly/Quarterly operating reviews

– Department meetings

– Individual reviews

Questions

• Thanks!