strategy planner big store - home | learninhub...big store kpi targets and thresholds some of the...
TRANSCRIPT
Strategy Planner
Big Store
LearnInHub Template#SP01
2
LearnInHub.com © All rights reserved
Table of Contents The three musketeers .................................................................................................................................................. 4
Vision ........................................................................................................................................................................... 5
VISION STATEMENT (Big Store): .............................................................................................................................. 5
VISION STATEMENT ................................................................................................................................................. 5
Mission......................................................................................................................................................................... 5
MISSION STATEMENT (Big Store): ........................................................................................................................... 5
MISSION STATEMENT .............................................................................................................................................. 5
Goals ............................................................................................................................................................................ 6
GOAL STATEMENT (Big Store): ................................................................................................................................ 6
GOAL STATEMENT ................................................................................................................................................... 6
Bring the change .......................................................................................................................................................... 7
Let us do the change analysis ...................................................................................................................................... 8
Purpose .................................................................................................................................................................... 8
Tasks to do: .............................................................................................................................................................. 8
Big Store Change Analysis ........................................................................................................................................ 8
Your turn: ................................................................................................................................................................. 9
Strategy is the key ..................................................................................................................................................... 10
Strategy Mapping ...................................................................................................................................................... 11
Purpose .................................................................................................................................................................. 11
Tasks to do: ............................................................................................................................................................ 11
A. Big Store Strategic Objectives ........................................................................................................................... 11
a. Your turn ........................................................................................................................................................... 12
B. Big Store Strategy Mapping ............................................................................................................................... 13
b. Your turn ........................................................................................................................................................... 14
Measure what you treasure ...................................................................................................................................... 15
From Objectives to Key Measures ............................................................................................................................. 16
Purpose: ................................................................................................................................................................. 16
Tasks: ..................................................................................................................................................................... 16
Big Store KPIs ......................................................................................................................................................... 17
Your Turn ............................................................................................................................................................... 18
No stopping here! ...................................................................................................................................................... 19
3
LearnInHub.com © All rights reserved
Add targets ................................................................................................................................................................ 19
Target and Threshold Setting .................................................................................................................................... 20
Purpose .................................................................................................................................................................. 20
Tasks to do: ............................................................................................................................................................ 20
Big Store KPI Targets and Thresholds .................................................................................................................... 20
Your turn ............................................................................................................................................................... 21
Deadlines will keep it running ................................................................................................................................... 22
Deadlines and Initiatives ............................................................................................................................................ 23
Purpose .................................................................................................................................................................. 23
Tasks to do: ............................................................................................................................................................ 23
Big Store Deadlines and Initiatives ........................................................................................................................ 23
Start with measurement planning & implementation .............................................................................................. 25
APPENDIX 1 ........................................................................................................................................................... 27
Note: This document makes use of the Balance Score Card methodology to derive KPIs for the given goal.
5
LearnInHub.com © All rights reserved
Vision Definition of Vision
A statement describing what the organization wants to achieve in the future i.e. Destination/ desire
VISION STATEMENT (Big Store): To be world's most customer-centric company.
Write your Vision Statement below:
VISION STATEMENT
Mission Definition of Mission
The statement of purpose of any organization. What do you do+ Whom you do this for+ Why do you do it? E.g. to
provide products, services and solutions of the highest quality, and deliver more value to customers that earns their
respect and loyalty
MISSION STATEMENT (Big Store): To build a place where people can come to find and discover anything they might want to buy.
Write your Mission Statement below:
MISSION STATEMENT
Note: Refer excel workbook/ pdfs for checklists and decision tree matrix if you want to choose one from several Statements.
6
LearnInHub.com © All rights reserved
Goals Definition of Goal
Business goals are the broad level primary, tangible outcome of the organization, aligned to the mission. They provide specifics about how much of what will be accomplished and by when.
GOAL STATEMENT (Big Store): To increase new customers base on our online platform by 50% in next 1 year.
Write your Goal Statement below:
GOAL STATEMENT
8
LearnInHub.com © All rights reserved
BRING THE CHANGE
Let us do the change analysis Purpose: To find out what do you need to do to achieve your goal
Tasks to do: 1. Write down the pain points in current state under each of the four perspective
2. Write the desired state against each of the points you just wrote.
Big Store Change Analysis GO TO STRATEGY MAPPING SHEET
Perspective Current State Desired State
Financial No online sales Increase online sales
Online site visits are very less in comparison to brick and mortar customer footfall
Increase online customer base
Perspective Current State Desired State
Customer Only electronic items and books sold To become a supplier for variety of products- Diversification
Perspective Current State Desired State
Processes & Products/ Services
High downtime of online portal Reduce the downtime to minimum
Perspective Current State Desired State
Learning and Growth
IT services dependency on vendors Create own IT unit with developers
9
LearnInHub.com © All rights reserved
BRING THE CHANGE
Your turn: GO TO STRATEGY MAPPING SHEET
Perspective Current State Desired State
Financial
Perspective Current State Desired State
Customer
Perspective Current State Desired State
Process & Products/ Services
Perspective Current State Desired State
Learning and Growth
11
LearnInHub.com © All rights reserved
STRATEGY IS THE KEY
Strategy Mapping Purpose: To document what is to be done to reach the desired state and to link all the objectives together so
that they align with the single goal.
Tasks to do: A. Writing the strategic objectives: Verb+ Adjective+ Noun (action+ description+ result)
B. Mapping the strategic objectives with each other (requires team effort)
C. Convert each objective into a statement as well, so that you can understand it at a later point in time.
A general thumb rule: Three to four objectives for each perspective
A. Big Store Strategic Objectives
REFER CHANGE ANALYSIS TABLE
Perspectives Desired State Objectives
Financial Increase online sales Increase+ monthly+ sales by 20%
Increase online customer base Increase+ monthly+ subscription rate by 20%
Customer To become a supplier for variety of products
Increase launching of new products every quarter by 15%
Process & Products/ Services
Reduce the downtime Decrease the portal downtime by 80%
Learning & Growth Creating own IT unit with developers
Increase IT developers count to 50 by EOQ
12
LearnInHub.com © All rights reserved
STRATEGY IS THE KEY
a. Your turn REFER YOUR CHANGE ANALYSIS TABLE
Perspectives Desired State Objectives
Financial
Customer
Process & Products/ Services
Learning & Growth
Note: In MS Word, add more rows by selecting a cell and right click> Insert table> choose from the options
13
LearnInHub.com © All rights reserved
STRATEGY IS THE KEY
B. Big Store Strategy Mapping
Perspectives Objectives
FINANCIAL
Wh
at
the
org
is
re
ce
ivin
g
CUSTOMER
PROCESS PRODUCT SERVICES
Wh
at
the
org
is p
rov
idin
g
LEARNING AND GROWTH
So, we can read this map as follows:
Big Store will invest in IT unit to make the online portal user friendly and reduce downtime, this will also help in
showing to masses, the increasing numbers of new products that Big Store plans to launch every quarter with an
objective to increase online business and sales.
Increase monthly sales
Increase monthly subscription rate
Increase launching of new
products
Decrease portal downtime
Increase IT developers count
14
LearnInHub.com © All rights reserved
STRATEGY IS THE KEY
b. Your turn
Perspectives Objectives
FINANCIAL
Wh
at
the
org
is
re
ce
ivin
g
CUSTOMER
PROCESS PRODUCT SERVICES
Wh
at
the
org
is p
rov
idin
g
LEARNING AND GROWTH
Note: you can insert boxes or add cells in the table. Boxes help in getting a hierarchical view of objectives.
Read you map:
15
LearnInHub.com © All rights reserved
Note: In MS Word, add more rows by selecting a cell and right click> Insert table> choose from the options
M
easu
re w
hat
yo
u t
reas
ure
16
LearnInHub.com © All rights reserved
MEASURE WHAT YOU TREASURE
From Objectives to Key Measures
Purpose: To monitor how well are we doing in meeting the objectives.
Tasks: 1. List down measures that will be SMART
2. Align and prioritise measures against each objective. A good way to do that is with the help of KPI
Tree.
A general thumb rule: Three to four objectives for each
perspective and two- three KPIs for each objective
Both the above steps can go simultaneously, order is not necessary. You
may want to check existing standard KPIs used in the industry. Also keep
in mind what you can measure, and hence you can derive your own
customized measures as well.
Fig. Sample KPI Tree
17
LearnInHub.com © All rights reserved
MEASURE WHAT YOU TREASURE
Big Store KPIs
Perspectives Objectives Enablers Tactical Enablers KPIs
Financial 1. Increase monthly sales by 20%
Grow number new of transactions per month
More new customers visiting and buying
Sales Average Order Value Conversion rate
Repeat customers New customer orders vs. returning customer orders
2. Increase monthly subscription rate by
20%
Expand reach
New subscribers Subscriber growth rate Subscriber Churn rate
Perspectives Objectives Enablers Tactical Enablers KPIs
Customer 1. Increase launching of new products every quarter by 15%
Suppliers Sustainability Quality
Count of new suppliers Product count / supplier Complaints/ supplier
Website Engagement Number of online transactions for new products
Products Product count Planned vs. Actual Products added pe month
2.
Perspectives Objectives Enablers Tactical Enablers KPIs
Process & Products
1. Decrease portal downtime
Maintenance Preventive maintenance
Server Downtime PM Compliance MTBF
Perspectives Objectives Enablers Tactical Enablers KPIs
Learning & Growth
1. Increase IT developers and testers count
Hiring more staff Planned vs. actual hired
Training existing staff
Enrolling in degree programs
Planned versus actual enrolment Planned vs. actual degree holders
18
LearnInHub.com © All rights reserved
MEASURE WHAT YOU TREASURE
Your Turn
Perspectives Objectives Enablers Tactical Enablers KPIs
Financial 1.
2.
3.
4.
Perspectives Objectives Enablers Tactical Enablers KPIs
Customer 1.
2.
3.
Perspectives Objectives Enablers Tactical Enablers KPIs
Process & Products
1.
2.
3.
Perspectives Objectives Enablers Tactical Enablers KPIs
Learning & Growth
1.
2.
3.
19
LearnInHub.com © All rights reserved
No
sto
pp
ing
her
e!
Ad
d t
arge
ts
20
LearnInHub.com © All rights reserved
ADD TARGETS
Target and Threshold Setting Purpose: To set the quantifiable target and limits to evaluate, monitor and ascertain that you are in the right
direction
Tasks to do: A. Writing the strategic objectives: Verb+ Adjective+ Noun
B. Mapping the strategic objectives with each other
To define targets, you may make use of benchmarking, or baselines
if you have your own reliable data.
Big Store KPI Targets and Thresholds Some of the examples taken from the KPI list:
Perspective Objectives KPIs Target Upper Limit
Lower Limit Remarks, if any
Financial Increase monthly sales by 20%
Sales Average Order Value
$5000/ month $100
- -
$5000/ month $100
Customer Increase launching of new products every quarter by 15%
Count of new suppliers Average Product count / supplier
50/ month 75/ supplier
70/ month -
30/ month 65/ supplier
Process & Products
Decrease portal downtime by 80%
Server Downtime PM Compliance
15% 95%
20% 100%
- 90%
Learning and Growth
Increase IT developers count
Planned versus actual enrolment%
95% 100% 90%
21
LearnInHub.com © All rights reserved
ADD TARGETS
Your turn
Perspective Objectives KPIs Target Upper Limit Lower Limit Remarks, if any
<Choose any one for the exercise>
22
LearnInHub.com © All rights reserved
Dea
dlin
es w
ill k
eep
it r
un
nin
g
23
LearnInHub.com © All rights reserved
DEADLINES AND INITIATIVES
Deadlines and Initiatives Purpose: To document how are we going to fill the gaps and by when.
Tasks to do: 1. Set deadlines for each of the objectives
2. Write down the actions that will be taken to achieve the objectives.
Initiatives are key action programs or projects that are performed
to achieve objectives.
Big Store Deadlines and Initiatives
Some of the examples of initiatives as follows:
Perspectives Objectives Deadlines Initiatives
Financial Increase+ monthly+ sales by 20% Negotiate with suppliers
Introduce offers for items with higher AOVs
Increase+ monthly+ subscription rate by 20%
Customer Increase launching of new products every quarter by 15%
MM-DD-YYYY Create an innovation and development committee
Process & Products
Decrease the portal downtime by 80%
MM-DD-YYYY Create a dedicated maintenance team
Learning & Growth
Increase IT developers and testers count to 50 by EOQ
MM-DD-YYYY Create a pool of existing employees to upgrade their skills as a developer
Hire new developers and testers in IT team
24
LearnInHub.com © All rights reserved
DEADLINES AND INITIATIVES
Your Turn
Perspectives Objectives Deadlines Initiatives
Financial
Customer
Process & Products
Learning & Growth
25
LearnInHub.com © All rights reserved
Star
t w
ith
mea
sure
men
t p
lan
nin
g &
imp
lem
enta
tio
n
26
LearnInHub.com © All rights reserved
ell done for coming up with the strategies,
objectives and KPIs. Now is the time you must detail out each KPI and create a
Measurement Plan. These KPIs should also be registered in the KPI library which will be helping you in future
selections and making changes whenever required at an org level.
Along with KPI description (a measurement plan), you must also be planning, and tracking the initiatives as
planned above.
W
27
LearnInHub.com © All rights reserved
APPENDIX 1 KPI Description Template
Objective name
KPI Name
Calculation Formula
Measures used in the calculation
Data source Frequency Targets Owner Updater Scope