strategy planning for small digital companies
DESCRIPTION
I have used this presentation to help small companies get an understanding how to setup a strategy that is user friendly and can apply to their project modelTRANSCRIPT
Strategic Planning
Overview
Strategic planning is one of the most important responsibilities of the senior
management of an organization. It is the vehicle that senior management should use to
set the organizational vision, determine the strategies required to achieve that vision,
make the resource deployment decisions to achieve the selected strategies, and build
alignment to the vision and strategic direction throughout all levels of the organization.
Unfortunately, strategic planning is also one of the most misunderstood and poorly used
tools in many organizations. Strategic plans are often large documents with detailed
plans created arduously over months at great effort...only to gather dust and languish
after they have been duly acknowledged and then filed away.
Overview
There are several reasons why strategic plans are not developed properly, or not implemented properly. Among the most common are:• Senior management does not follow a defined process to
accomplish this task. As a consequence, months of effort are wasted in creating reams of paper that do not have strategic import.
• The process is delegated to a planning group, or assigned to the various functional leaders to complete for their respective areas. If completed in individual functional areas, the plan may work for individual departments, but is likely to sub-optimize the whole organization. If assigned to a planning group, the result is often not truly embraced and endorsed by senior leadership.
• Senior management does not set aside the time to develop the strategic plan as a collective team work product.
Overview
There are several reasons why strategic plans are not developed properly, or not implemented properly. Among the most common are:• The organization does not understand what a strategic plan is
actually designed to provide. Therefore, the strategic plan is a tactical business plan with multiple year extrapolations. There is very little about it that addresses actual strategic direction.
• Senior management does to follow a defined process or methodology that will result in a strategic plan in a timely and efficient yet comprehensive manner.
• The plan is developed but there is no process to communicate it throughout the organization and build organization-wide alignment to its implementation.
• The plan is developed with no implementation guidelines at all. At best, it is implemented in pieces. At worst, it is unfunded and ignored.
Aligning the Strategic Approach
Balanced Scorecard
Aligning the Strategic Approach
Stakeholder Analysis
Management Organisation
Strategic Clients
Strategic Partners
Employees
Shareholders
Guideline
Identify your stakeholders
Name Job Title Main Interest
Influence Level (HML)
• Are all of our key stakeholders clearly identified?• Who will become key stakeholders in the near
future?• Are their expectations and requirements clearly
understood?• Are they regularly consulted?• Are they kept updated, and involved in those
business decisions that will affect them?
Stakeholder Analysis
Guideline
Develop a matrix to measureStakeholderse.g. Interest , Power
Output Stakeholder plan showing how you engage with your stakeholders and what your communication strategy is
Vision Mission and Objectives
“Strategic planning is worthless—unless there is first a strategic vision.”— John Naisbitt, Author of “Megatrends”
A clear vision and mission statement, objectives, and business description are important points of departure. The vision is what guides your social enterprise and energizes your stakeholders; it is the “big picture” illustrating what you expect to achieve.
Vision and Mission
Mission Statement
To be number 1 catalyst in developing countries for improving the quantity and quality on social action by creating a social network that works seamlessly aligning it to the real needs as identified by the end of 2013
Guideline
Use Smart Language• Specific• Measurable • Achievable• Realistic• Timeous
The mission statement is the heart of your social enterprise.
It describes its central purpose and the basic principles that guide the actions of employees, partners, and management. As well, it articulates the strategy you will use to accomplish your goals and objectives. A mission statement also defines your target population and embodies the organizational values of your social enterprise.
The mission statement also provides direction to your social enterprise. If the business plan can be considered the road map of your social enterprise and the vision is the direction in which you are going, then the mission statement consists of the street signs to get there. Your business plan must be consistent with your mission statement, so use it as an anchoring guide in each step of the planning process.
Business Objectives
Business objectives are a way for an organization to define its goals and direction. A company uses a combined strategy at every level of its operation to achieve its objective. It determines how a company will allocate its resources and what strengths, weaknesses and opportunities it may have. A business objective is usually not altered once implemented, unless changes in circumstances arise; setting a clear course for the organization it key to its success
Guideline
The balanced scorecard method can help define your company objectives
The Balanced Scorecard – Key Benefits
• Better Strategic Planning• Improved Strategy Communication• Better Management Information• Improved Performance Reporting
Why should small companies use a Balanced Scorecard Approach
• A Balanced Scorecard guides managers to dedicate scarce resources such as their
“management focus” and the company’s manpower (and even money!) to achieving the
planned results, as opposed to being distracted by the many “focus thieves” that
constantly try to steal their attention.
• A Balanced Scorecard makes employees aware of how the various tasks in an organization
are connected—and exactly how their day-to-day operations fit into the big picture. This
knowledge empowers responsible employees to spend their resources in the most
beneficial ways.
• A Balanced Scorecard introduces a result-focused sense of urgency and peer pressure in
the organization, prompting the employees to pull together and concentrate on the vital
issues.
Paul BergquistCEO, Axsellit AS
What is our purpose
What is our picture of the future
What are our main focus areas
How do we know we are achieving our results
What projects will be rolled out to meet our goals and targets
Planning the Company Scorecard
Financial
Customer Relations
Learning and Growth
Internal Service Process
Vision and Strategy
The Scorecard as a Measuring System
The Financial Scorecard
Identifying the areas to define your objectives
Market share
Revenue growth
Profit ratioReturn on investment
Profitability
Categorised into
Strategy and goals
Performance Measures/Targets
Strategic Initiatives
How do we measure quality in our financial scorecard• Efficiency• Meeting our targets
Brainstorming topics
What financial steps are necessary to ensure
the execution of our strategy/goals?
Are we meeting our bottom line?
Are we meeting operational and financial
targets?
Guideline
You can add additional topics for your brainstorming session
The Customer Relations Scorecard
On time deliveries
Market share
Average time to process orders
Response time
Reliability
Value for money
Identifying the areas to define your objectives
Categorised into
Strategy and goals
Performance Measures/Targets
Strategic Initiatives
How do we measure quality in our customer relations scorecard? Accessibility Acceptability Continuity
Brainstorming Topics
Who are our target customers?
How do our customers see us?
How do customers rate our performance?
Guideline
You can add additional topics for your brainstorming session
The Process Management Scorecard
Procurement
Quality
Workforce
Technology
Operations
Productivity
Categorised into
Strategy and goals
Performance Measures/Targets
Strategic Initiatives
How do we measure quality in our process management scorecard• Efficiency• Reduction of rework• Increased productivity
Brainstorming Topics
What critical processes must we excel at to satisfy
our customers and stakeholders
What must be done internally to meet customer
expectations
Guideline
You can add additional topics for your brainstorming session
The Learning and Growth Scorecard
Career paths
Continuous Improvement
Technological Leadership
HR Management
Process alignment
Being competitive
Categorised into
Strategy and goals
Performance Measures/Targets
Strategic Initiatives
How do we measure quality in our learning and growth scorecard• Level of skilled employees• Increase in productivity• Allowing for employee assisting company to grow
Brainstorming Topics
How can we continue to improve?
What capabilities and tools do our employees
need to execute our strategy/goals?
Guideline
You can add additional topics for your brainstorming session
Analysis
SWOT Analysis Brainstorming Decision Tree Mapping
Guideline
• Involve as many people as possible during the analysis phase• Ensure that all ideas are documented • Have frequent breaks in the analysis process• Ensure that you identify the final document to be used for the
business plan
Analysis
The process The objective
Analysis of the Firm We will understand our core values and where we are going with the direction of the company
Marketing and Competitor Analysis We will clearly understand our competitors and ensure our marketing strategy is aligned to meet our targets and objectives
Understanding the environmental impact We will have a clear idea of the possible or probable effects of external forces and conditions on our organisations growth strategies
Defining your product Our products will meet our customer’s expectations and will be delivered in line with the agreed roadmap
• Analysis of the firm• Marketing and Competitor Analysis• Industry and Competitor Analysis• Environmental Analysis• Portfolio and Program Analysis
Selecting the strategy - Marketing
Our CustomerWe will ensure that we have a clear picture of our target customer using market research and analysis. Our MarketOur analysis will provide the correct data of our market and what the successful trends are to ensure that we have market growth Our CompetitionWe will have a clear idea of our competition and their strategies within our market range Our Distribution ChannelsWe will endeavour to distribute our product effectively to our target customers? Our Marketing MixOur marketing plan will correctly position Product, Price, Place and Promotion.Our FinancialsWe will ensure that our marketing budget is aligned to our overall financial strategy
Selecting your strategy - Product
Understanding the Product Life Cycle
Business Roadmap for calendar year
It begins with defining the company’s vision and mission
Planning the Product Roadmap
Defining the concept
Defining the business rules and product specifications
Developing and Launching the Product
Develop the Product
Project Initiation Project Planning Project Execution Project Closeout
Launch the final product
End of Product Lifecycle
Conduct Analysis and Research
Findings are documentedDocument is reviewed by nominated stakeholders
Stakeholders approve and sign off concept
Hold workshops to define the business rules and
userability of the product to be launched
Findings are documentedDocument is reviewed by nominated stakeholders
The business rules and product specifications are approved by
the Business Owners and nominated stakeholders
Document distributed to Development team
Identify concept for production
Team is appointed to proceed with
the marketing plan
TIME
SALES
Introductory stage
GrowthStage
MaturityStage
DeclineStage
Defining the Marketing Plan
Concept is aligned to the marketing strategy and financial planning for
calendar year
Findings are documentedDocument is reviewed by nominated stakeholders
The Marketing strategy and financial planning for the concept are approved
by the Business Owners and nominated stakeholders
Business rules and product specifications
commence
The objectives will outline· Who we are as a company· What do we want to achieve· How do we want to achieve this· The timeline to meet these objectives
These objectives are communicated
to the business units
TeamsManagersCustomers
Results in
Product Life Cycle
Defining the Product Process
What is our business product?
Who are our customers?
What is the demand for our product?
How will we sell and distribute our product?
What is the timeline for selling our product?
What price will we charge for our product?
Why this is importantWe will:• offer the right product or service for the market;• charge the right price for it; and• sell enough to achieve our strategic and financial goals
Guideline Ask the right questions
Aligning your project approach
Define your portfolio
Project Initiation
Project Planning
Project Execution
and Control
Project Close Out
Analysis
Design
DevelopmentTest
Deploy
Project Management
Product Development
Operations – a proposed approach
Understanding what our options are
Collate all of the info and document
Set a timeline to define your key focus areas analysis and results
Begin to document each focus area
Ensure that all documents are approved and reviewed
Present the final plan to your company
Documenting the Business Plan
• Confirm the template and table of contents• Setup a timeline to complete the document• Confirm who will compile the document• Confirm the signatories• Confirm who will view the document • Create a folder on your server to store the documents
Conclusions
• It is important to keep in mind that this presentation is a generic and high level approach to develop and document your business plan. You will go through various versions until you have reach the correct amount of detail and content that works for your company
• You can add or subtract where required from this presentation to align to your own individual approach for presenting to your audience
• The ultimate and key goal for this presentation is to have a business plan that will allow your business to grow and advance
• You should use the business process in this presentation as a roadmap to ensure that you cover all your business areas, goals and vision for your company