NAWBO-LA PEAK LEADERSHIP ACADEMY
Strategic Planning Workbook
NAWBO-LA PEAK LEADERSHIP ACADEMY
Strategic Planning
Workbook
Management Systems Consulting Corporation
10990 Wilshire Blvd., Suite 1420
Los Angeles, CA 90024
(310) 477-0444
www.mgtsystems.com
© Copyright Management Systems Consulting Corporation, 1989; Revised 2007.
These materials are not to be reproduced in any form without the prior consent of
Management Systems Consulting Corporation, 10990 Wilshire Blvd.,
Suite 1420, Los Angeles, CA 90024, (310) 477-0444. www.mgtsystems.com.
NAWBO-LA PEAK LEADERSHIP ACADEMY
Strategic Planning Workbook
TABLE OF CONTENTS
INTRODUCTION .......................................................................................... 2
MANAGEMENT SYSTEMS’ STRATEGIC PLANNING PROCESSSM ...................... 3
STEP #1: COMPLETE THE ENVIRONMENTAL SCAN ...................................... 4
STEP #2: COMPLETE THE ORGANIZATIONAL ASSESSMENT ........................ 6
STEP #3: CREATE YOUR PLAN .................................................................. 14
STEP 3A: BUSINESS DEFINITION/CONCEPT: WHO AM I? ................................ 15
STEP 3B: STRATEGIC MISSION STATEMENT: WHERE DO I WANT TO BE? .......... 18
STEP 3C: CORE STRATEGY OF YOUR BUSINESS: HOW WILL I COMPETE? .......... 22
STEP #4: FINALIZING YOUR PLAN ........................................................... 46
STEP #5: PLAN IMPLEMENTATION AND MONITORING ............................. 48
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Strategic Planning Workbook
INTRODUCTION
Over the past 27 years, Management Systems Consulting Corporation has helped
hundreds of companies like yours improve their effectiveness and build the
foundation for long-term success through developing effective business plans. The
Management Systems approach to strategic planning has been applied in many
companies and business units, including Starbucks, Countrywide Financial
Corporation, Amgen, Neutrogena, and Baskin Robbins.1
This “workbook” is intended to help you develop a plan to promote the success of
your business, building upon the information you collected in completing the
Environmental Scan and Organizational Assessment (that is, by completing the
Planning Survey, Growing Pains Survey, and Organizational Effectiveness Survey).
The diagram on the next page presents an overview of Management Systems’
Strategic Planning ProcessSM that is used throughout the remainder of this
workbook.
See Growing Pains by Eric G. Flamholtz and Yvonne Randle (Jossey-Bass, 2000) for more
information on this process.
1
2
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MANAGEMENT SYSTEMS’ STRATEGIC PLANNING PROCESSSM
Step 1: Environmental Scan
Step 2: Organizational Assessment
•
•
•
•
•
•
•
•
•
Market Analysis
Competitive Analysis
Trend Analysis
Markets
Products/Services
Resources
Operational Systems
Management Systems
Culture
Step 3: Create Your Business Plan
•
•
•
•
•
•
Business Definition/Concept
Strategic Mission
Core Strategy
Key Results Areas
Objectives
Goals
Step 4: Develop Your Budget
Step 5: Implement and Monitor Your Plan
•
Quarterly Review and Update
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STEP #1: COMPLETE THE ENVIRONMENTAL SCAN
The first step in developing your business plan is to identify the opportunities and
threats presented by your market to your business. This involves:
•
Identifying your Target Market (Customers) and your strengths and
limitations with respect to meeting market needs
•
Identifying the strengths and limitations of Your Competitors
•
Identifying Key Market Trends and the threats and opportunities they
present for your business
•
Developing strategies to promote success by maximizing opportunities and
minimizing threat identified through your analysis
In completing this step, you will draw upon the information you collected using the
“Planning Survey” – specifically the Competitor Analysis (Section 1.1), Trend
Analysis (Section 1.2), and Market Analysis (Section 3.1).
Completing Your Environmental Scan
Begin by reviewing the information you recorded in Sections 1.1, 1.2, and 3.1 of
your planning survey.
In the worksheet on the next page:
•
Identify the most significant findings from your “Environmental Scan.” These
findings might relate to:
o Specific strengths or limitations possessed by your competitors;
o Significant opportunities or threats presented by specific trends;
and/or
o Significant opportunities or threats to your business created by your
customers’ needs/changing needs and the extent to which your
products/services meet these needs.
•
For each key finding, identify one or more strategies for maximizing the
opportunity or minimizing the threat. That is, identify what you might do or
do differently to promote the long-term success of your business.
You might consider involving other members of your team in this
analysis/discussion.
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ENVIRONMENTAL SCAN – ANALYSIS OF RESULTS
Key Finding
Strategies to Promote Success: Maximizing Opportunities
and Minimizing Threats
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STEP #2: COMPLETE THE ORGANIZATIONAL ASSESSMENT
To understand your company’s capabilities, you need to complete an
“Organizational Assessment.” This involves identifying your company’s strengths
and limitations at each level in a framework called the “Pyramid of Organizational
Development” shown below.
The Pyramid of Organizational Development
CORPORATE
CULTURE
Values
Beliefs
Norms
MANAGEMENT
SYSTEMS
Planning
Organization
Management
Development
Control
OPERATIONAL
SYSTEMS
Accounting:
Production:
Marketing:
? Billing
? Payroll
? Shipping
? Selling
Personnel:
? Hiring
? Compensation
RESOURCE
MANAGEMENT
Financial
Resources
Technological and
Physical Resources
Human
Resources
PRODUCTS &
SERVICES
Develop Products (Services)
MARKETS
Define Market Segments and Niche
© Copyright Management Systems Consulting Corporation 1986, revised 2004. All Rights Reserved.
Management Systems’ work and research with companies over the past 27 years
suggests that an organization’s success over the long-term depends, to a great
extent, on its ability to successfully design and manage these six dimensions. (See
"Organizational Success and Failure: An Empirical Test of a Holistic Model" by Eric
G. Flamholtz, European Management Journal, October 2000). Completing the
organizational assessment, then, involves systematically assessing the extent to
which you have the systems and processes in place to support your current and
anticipated growth.
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The levels in the Pyramid are defined below, along with the keys to success at each
level.
Pyramid Level
Markets:
Definition: The customers that a company is targeting.
Keys to Success at This Level:
Products/
Services:

Clear definition/identification of who the target customer is.

Clear understanding of customer needs and how these needs
are changing.

Development of a market niche (i.e., a place in the market
where the company has a sustainable competitive
advantage).
Definition: What the company offers its customers in order to
meet their needs.
Keys to Success at This Level:
Resources:

Ability to offer products/services that meet the needs of the
company’s chosen customer base (i.e., market).

Having systems in place to adapt products/services to
changing customer needs.
Definition: The amount and quality of people, equipment,
facilities, and dollars available to support the company’s
continued operations and growth.
Keys to Success at This Level:

Identification of what resources are required to support the
company’s operations and growth.

Having enough of the “right” resources to support continued
operations and growth.

Having systems in place to acquire and effectively manage
company resources.
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Pyramid Level
Operational
Systems:
Definition: The day-to-day systems (e.g., production,
accounting, sales, marketing, human resource management,
research and development, communication, information
systems, etc.) that are needed to support effective and efficient
operations.
Keys to Success at This Level:

Management
Systems:
Ability to effectively design, implement, and continuously
refine the systems needed to support current day-to-day
operations and company growth.
Definition: The systems needed to support long-term growth.
There are four Management Systems:

Strategic Planning System – including operational planning,
scheduling, budgeting, and contingency planning.

Organizational Structure – how people are organized, who
reports to whom, and how activities are coordinated.

Management Development System – the processes that are
used to develop the company’s management capabilities.

Performance Management Systems – the set of processes
and mechanisms (including performance appraisal) used to
motivate employees to achieve organizational goals.
Keys to Success at This Level:

Company
Culture:
Ability to effectively design, implement, and continuously
refine (based on growth) the planning, structure,
management development, and performance management
systems needed to support effective operations and
company growth.
Definition: The values, beliefs and norms that govern the
behavior of people in the company.
Keys to Success at This Level:

Clear definition of the company’s culture.

Having systems in place to promote and reinforce behavior
consistent with the company’s culture.
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To complete this step, you will:
•
Analyze your Growing Pains and Organizational Effectiveness Survey Results.
•
Review and analyze the information you collected using the “Planning
Survey” – specifically the Products/Services Analysis (Section 3.2),
Resources and Operational Systems Analysis (Section 3.3), Management
Systems Analysis (Section 3.4), and Culture Analysis (Section 3.5).
Growing Pains Survey Results Analysis
Review your Growing Pains results.
•
In the first column of the table on page 11, identify the aspects of your
company’s infrastructure that might be contributing to these results.
•
In the second column, identify what you might do or do differently to address
the issues identified in the first column and, in turn, improve your company’s
effectiveness.
Organizational Effectiveness Survey Results Analysis
Review your Organizational Effectiveness Survey results.
•
In the first column of the table on page 12, identify your company’s most
significant strengths, as suggested by these results.
•
In the second column of the table on page 12, identify you company’s most
significant limitations (or opportunities to improve), as suggested by these
results.
•
In the third column of the table on page 12, identify what you might do to
maximize your company’s strengths (to create a competitive advantage) and
minimize your company’s limitations to support long-term growth and
success.
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Planning Survey Results Analysis
Begin by reviewing the information you recorded in Sections 3.2, 3.3, 3.4, and 3.5
of your planning survey.
In the worksheet on page 13:
•
Identify the most significant findings from the planning survey as they
related to your “Organizational Assessment.” Specifically, what are the key
strengths and limitations (or opportunities to improve) suggested by Planning
Survey results?
•
For each key finding, identify one or more strategies for maximizing the
strength or minimizing the limitation. That is, identify what you might do or
do differently to promote the long-term success of your business.
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ORGANIZATIONAL ASSESSMENT – GROWING PAINS RESULTS ANALYSIS
Infrastructure “Problems” The Might Be
Contributing to Results
Strategies to Promote Success: Addressing Growing Pains
“Problems”
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ORGANIZATIONAL ASSESSMENT – ORGANIZATIONAL EFFECTIVENESS SURVEY
RESULTS ANALYSIS
Most Significant Strengths
Most Significant Limitations
(Opportunities to Improve)
Strategies to Promote Success:
Maximizing Strengths and Minimizing
Limitations
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ORGANIZATIONAL ASSESSMENT – PLANNING SURVEY RESULTS ANALYSIS
Key Finding
Strategies to Promote Success: Maximizing Strengths and
Minimizing Limitations
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STEP #3: CREATE YOUR PLAN
You are now ready to begin creating your business plan. The Business Plan consists
of four components:

Your Business Definition/Concept

The Strategic Mission Statement

Core Strategy

Key Result Areas (KRAs)

Objectives

Goals
These components form a hierarchy that is shown below. In brief, in developing
your plan, you will move from a broad definition of who you are (as a business) and
what you want to become, to more specific strategies and tactics that will help you
get there.
Business Definition/Concept
Strategic Mission Statement
Core Strategy
Key Result Areas
Objectives
Goals
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STEP 3A: BUSINESS DEFINITION/CONCEPT: WHO AM I?
The Business Definition/Concept addresses the question, “What business are we
in?” This is a deceptively simply question, yet one of the most critical strategic
decisions that a company can make. Addressing this question provides the focus
for the business and its employees. It provides the boundaries in which your
business will operate. If the Business Definition/Concept is too broad or too
narrow, it is of no strategic value and can actually create problems for the company
or, in some cases, an entire industry.
Example: In the latter part of the nineteenth century and into the early twentieth
century, those in the railroad industry would have answered the question, “What
business are you in?” with the obvious answer, “We are in the railroad business.”
This was true, but it not “right.” New forms of transportation (i.e., cars, trucks,
buses, and airplanes) were being developed that were changing the face of the
railroads’ true business which was “transportation.” Failing to recognize that they
were really in the transportation business eventually eroded the entire industry’s
strength.
Quick Hints to Develop Your Business Definition/Concept:
•
The statement should address the following sub-questions:
o Who are your customers (present and potential)?
o What are their needs?
o How do they buy?
o What is value to them?
•
A lesson learned from the railroads is that in developing the Business
Definition/Concept for your company, you need to understand the
environment in which you operate (see the results of your Environmental
Scan), as well as your company’s internal capabilities (see the results of
your Organizational Assessment).
•
Avoid making the Business Definition/Concept too broad or too narrow.
The statement should be broad enough to allow you to take advantage of
opportunities presented by your market, but not so broad that it appears
you are trying to “be everything to everybody.”
•
Try to state your Business Definition/Concept in one to three sentences.
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Sample Business Definition/Concept Statements
(Based on real companies, but all have been genericized)
•
Premier Products, Inc. develops and distributes competitively priced, highly
functional, customer-driven products which are used to treat ( ) medical
conditions.
•
Techlink is in the business of partnering with the management of Fortune
1000 and high growth companies ($100M to $10B) to build and implement
information technology business solutions for sustainable business
advantage.
•
ABC Senior Programs is dedicated to excelling at understanding and meeting
the service and housing needs of older adults.
•
AtHome Lending, using a branch delivery system, provides a broad range of
home loan solutions to homeowners to support consumers’ personal financial
goals.
Creating Your Business Concept/Definition
In developing the Business Definition/Concept for your company, begin by
answering the questions below. Be sure to refer back to the Environmental Scan
and Organizational Assessment you completed in Steps 1 and 2.
1. Who are your target customer(s)?
• You may define who they are in any way that makes sense to you.
• Be sure to include potential customers.
2. What customer needs are you trying to satisfy through providing your
products/services?
3. How do you or will you provide your products/services to these customers?
4. What do your target customers consider to be of value in the
products/services you offer?
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Using the information you recorded on the previous page, write a Business
Definition/Concept statement for your company in the space below.
BUSINESS DEFINITION/CONCEPT FOR ____________
We are in business of
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STEP 3B: STRATEGIC MISSION STATEMENT: WHERE DO I WANT TO BE?
A Strategic Mission Statement is a broad statement of what a company wants to
achieve during the planning period (typically 3-5 years). The Strategic Mission is
important because it provides an overall sense of direction for employees – it lets
them know where you are going and when you expect to get there. In brief,
developing a Strategic Mission Statement involves answering the question, “What
do I want my business to be or become over the 3-5 years?”
The Strategic Mission Statement must include specific targets (e.g., revenue,
market share, profitability, expansion, reputation, etc.) against which performance
can be assessed and a date (3-5 years out) by which these targets should be
reached.
In this workbook, you will focus you on developing a 3-year Strategic Mission
Statement.
Quick Hints to Develop Your Strategic Mission Statement:
•
Use the results of your Environmental Scan and Organizational Assessment
to identify significant opportunities you want to pursue and/or major internal
issues you want to address.
•
Identify the most significant measures of success for your business. These
will typically include financial targets (e.g., revenues/sales, profitability,
etc.). However, be sure to also think about other “big picture” things (e.g.,
improving your brand recognition, attracting different types of people,
improving key internal systems, etc.) that you would like to accomplish over
the next 3 years.
•
Avoid including EVERYTHING that you want to accomplish in your Strategic
Mission Statement. Instead, focus on the most critical determinants of
success.
•
Be sure that you can measure progress against the targets you include in the
Strategic Mission Statement. If, for example, you include something like,
“become the leading…” be sure that you know how you will assess whether
you have, in fact, become the “leader.”
•
The “due date” for the achievement of your Strategic Mission should be
whatever your fiscal year-end is, three years from now. For example, if your
fiscal year-end is March 31, the due date for your Strategic Mission
Statement would be: 3/31/this year + 3 years.
•
Try to present your Strategic Mission Statement in three to five sentences.
Avoid writing a book!
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Sample Strategic Mission Statements
•
By December 31, 200X, Premier Products will be recognized as an
industry leader, achieving minimum revenues of $27 to $33 million, while
maintaining our expense and margin targets. Each year, we will grow a
minimum of 15 percent in revenues. These targets will be achieved
without compromising our values.
•
By December 31, 200X, Techlink will achieve $20 million in revenues and
maintain a profit margin of 10%. We will increase our brand awareness
by 10% and be positioned for realizing value. In the process, we will
build and maintain an entrepreneurially-oriented culture that provides a
positive and challenging work environment.
•
By December 31, 200X, ABC Senior Programs will be providing quality
services and housing to at least 4,000 older adults in the Western United
States by way of Senior Communities, Nursing Facilities, Assisted Living,
Affordable Housing, and home and community-based services. We will
have improved and expanded existing programs, new developments,
acquisitions, and affiliations. ABC Senior Programs will have developed
and fully implemented the infrastructure needed to support this growth.
•
By FYE 200x, AtHome Lending will be one of the lowest cost
manufacturers of home loan permanent financing, while providing a
positive customer experience. We will deploy a product and channel mix
that reduces fluctuations in profitability throughout the interest rate cycle
and garner X% share of the U.S. mortgage market.
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Creating Your Strategic Mission Statement
To develop the Strategic Mission Statement for your company, begin by answering
the questions below. Be sure to refer back to the Environmental Scan and
Organizational Assessment you completed in Steps 1 and 2.
1. Identify the date by which you want to realize your Strategic Mission. This
date should be the end of your fiscal year, three years out. In brief, the due
date should be “X/30 or 31/current year + 3.”
2. Identify the total revenues or sales you would like to achieve by the due
date identified in question #1.
3. Identify a profit target (e.g., profit margin, $ profit, etc.) to be achieved by
the due date identified in question #1.
4. Identify significant opportunities you want to pursue and what you want to
achieve with respect to these opportunities by the due date identified in
question #1.
5. Identify any significant changes that you want to make to internal
operations and/or significant internal issues you want to address and what
you want to achieve in these areas by the due date identified in question #1.
6. Identify any other “Big Picture” things you want to achieve by the due
date identified in question #1.
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Using the information you recorded on the previous page, write a Strategic Mission
Statement for your company in the space below.
STRATEGIC MISSION STATEMENT FOR ______________
By _________________, we will
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STEP 3C: CORE STRATEGY OF YOUR BUSINESS: HOW WILL I COMPETE?
Your Core Strategy defines how you will compete to “win the game” in your market.
A Core Strategy should reflect the factors that differentiate or will differentiate you
from those with whom you compete for customers. These factors should be
truly unique. If, for example, everyone you compete with has a strong sales force
(or selling capability), this is not a differentiating factor. If, however, your
company has a reputation for providing a high level of customer service and none
of your competitors have a similar reputation, this would be a factor that truly
differentiates you.
Factors that might differentiate your business from others can include:

The types, range, or quality of the products/services you provide.

The resources you have and/or use to support your business.

Your approach to marketing, sales, etc.

Your skills or experience.

The reputation you have in the market.

Your company’s culture.
Quick Hints for Developing Your Core Strategy
•
Refer back to the Competitor Analysis you completed earlier (as part of your
Environmental Scan). Use these results to identify what you do that is truly
different from others and/or what you might do to “win” against these key
competitors.
•
If you cannot think of something that differentiates you today, think about
one or more strengths that you might turn into competitive advantages in
the future. In thinking about your Core Strategy, try to answer the question:
“Why should/would a customer choose to purchase from my company,
versus from one of my competitors?”
•
Be sure that your statement is “real.” That is, be sure that it reflects your
current capabilities and/or capabilities that you can realistically develop.
•
State your Core Strategy in one or two sentences.
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Sample Core Strategies
•
Premier Products
Be an extremely customer- and values-driven company, with a focus on
providing innovative, competitively priced products.
Use our state-of-the art technology to improve productivity, without
compromising our unique values.
•
TechLink
Solutions guaranteed to go live.
•
ABC Senior Programs
Leverage existing and continue to build new strong relationships with our
residents, our employees, and the communities in which we operate to
support our growth.
•
AtHome Lending
Re-engineer our mortgage process with a focus on speed, the customer
experience, and self-service options, supported by metrics-driven marketing.
Creating Your Core Strategy
To develop your Core Strategy, answer the following question:
•
What factors truly differentiate your company from your competitors?
Using your responses to the question above, craft a one to two sentence statement
that defines how you will compete to “win the game.”
Core Strategy for ______________
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STEP 3D: KEY RESULT AREAS, OBJECTIVES, AND GOALS: HOW WILL I GET
THERE?
You have now identified “what business you are in” (Business Definition/Concept)
“where you want to be” (Strategic Mission Statement) and have developed your
competitive (Core) strategy. The next step is to develop your plan for moving from
where you are to where you want to be – that is, what you will do to make your
Strategic Mission a reality.
In this phase of the planning process, you will focus on three components:
 Key Result Areas (KRAs)
 Objectives
 Goals
Key Result Areas
Key Result Areas are areas of a company’s operation in which performance has a
critical impact on the achievement of the overall Strategic Mission. In a very real
sense, Key Result Areas or “KRAs” are critical success factors. Since research
(referred to earlier in this workbook) suggests that organizations who successfully
manage the six levels in the Pyramid of Organizational Development dramatically
increase their probability of long-term success, we recommend that you use these
six levels – Markets, Products/Services, Resources, Operational Systems,
Management Systems, and Company Culture – plus “Financial Results” as the 7 Key
Result Areas in your plan. Doing so minimizes the possibility that a critical factor
that contributes to long-term success will be ignored.
In your plan, these Key Result Areas will be numbered and presented as follows:
1.0
Markets
2.0
Products/Services
3.0
Resources
4.0
Operational Systems
5.0
Management Systems
6.0
Company Culture
7.0
Financial Results
Developing Objectives
Objectives are broad statements of what a company wants to achieve in the long
run (that is, by the Strategic Mission’s due date). In a sense, Objectives reflect the
strategy that the company is adopting with respect to each Key Result Area (KRA).
Each KRA will have one or more Objectives.
Objectives should be stated as results to be achieved (versus actions to be taken)
and should be linked to the KRA that they support.
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Developing Goals
Goals are specific, measurable results that you want to or need to attain by a
specified due date to make progress in achieving a specific Objective. Goals are the
component of the plan that builds in accountability and helps you “see” very clearly
the progress you are making in achieving desired results. Goals should be SMART:
•
Specific – Define a specific outcome
•
Measurable – Targets against which progress can be assessed
•
Accountable – someone on the team has responsibility for each Goal – and
Actionable – action can be taken on the Goal
•
Realistic – a high probability that the Goal can be achieved by its due date –
and Results-Oriented – results to be achieved, versus action to be taken
•
Time-Dated – Specific due date
Organizing KRAs, Objectives, and Goals
We suggest that you organize your plan using the following numbering system:
X.0 – Key Result Area
X.X – Objective
X.X.X – Goal
This numbering system helps those who are responsible for specific Goals very
clearly see how what they are working to achieve “fits” in the context of your
overall company plan.
A sample page from a strategic plan, using this numbering system is presented on
the next page.
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SAMPLE PLANNING PAGE
KEY RESULT AREA:
Objective 1.1
1.0
Markets
Grow active buyer base at a rate consistent with overall sales
growth per year.
Goals
Who
When
Status
1.1.1 Increase our active
buyer base by 50%
from 10/1/0X to
9/30/0X through
existing strategies.
BH
10/1/0X
Pending
1.1.2 Increase active buyer
base by 40% from
10/1/0X to 9/30/0X
through new strategies.
LM
10/31/0X
1.1.3 Identify and evaluate at
least 2 new vehicles for
growth beyond FY ‘0X.
BH
9/30/0X
1.1.4 Develop and document
plan to attract
new
customers in FY ‘0X
through existing
strategies.
BH
6/1/0X
1.1.5 Identify new prospecting
strategies to test during
FY ‘0X.
AF
4/30/0X
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Quick Hints for Developing Objectives and Goals
•
Develop all Objectives first. Then, develop Goals to support each Objective.
•
When developing Objectives, think 3 years out.
•
When developing Goals, think 12 (or, perhaps 18) months out only. It is
impossible and impractical to develop SMART Goals for the entire planning
period (that is, three years). Trying to do so will lead to an enormous plan,
with most of the Goals that are due in year 2 and year 3 needing to be
changed frequently.
•
To develop both Objectives and Goals, refer back to the “Strategies to
Promote Success” you developed as an output of your Environmental Scan
and Organizational Assessment. Convert these strategies into Objectives.
Initially, don’t worry about organizing Objectives by KRA. You can do this
later; but, be sure that Objectives read as results to be achieved.
•
Once you have developed all Objectives, sort them by KRA.
•
Use the “Strategies to Promote Success” sections of the Environmental Scan
and Organizational Assessment as input to develop Goals. When developing
Goals to support the achievement of each Objective, it sometimes helps to
begin by answering the question, “What will be different (or what will have
changed) in my company relative to this Objective by the end of this fiscal
year?” You can also simply address the question, “What do we want to
achieve relative to this Objective?”
Using whatever method you find most helpful, focus on generating ideas for
what you want to achieve first. Then, go back and make these ideas SMART
– by ensuring that they are measurable, that someone on your team has
been assigned responsibility for achieving each Goal, and be identifying the
date by which the Goal should be achieved.
•
When setting due dates for Goals:
o
Be sure that not every Goal is due on the last day of your fiscal year.
There must be some things that you need to accomplish during
the year!
o
Adopt a standard of either using the first (X/1/0x) or last day of the
month (X/30/0x or X/31/0x).
o
If the due date for a Goal is recurring (e.g., “Address all customer
requests within 2 days of their receipt,” “Maintain 95% customer
satisfaction ratings,” etc.), avoid using “on-going” as the due date.
Instead, specify the frequency with which you will assess performance
(e.g., measured monthly, quarterly, etc.).
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Quick Hints for Developing Objectives and Goals (cont’d)
•
To minimize the possibility of overwhelming you and your team, try to limit
the number of Goals you set for each Objective to those that are most
important to your success. This is especially important if you and your team
have never developed a formal comprehensive written strategic plan for your
business. If this is your first attempt at formal strategic planning, a good
rule of thumb is to have no more than 3 to 5 Goals per Objective.
Sample Key Result Areas, Objectives, and Goals
Key Result Area 1.0: Markets
Objective 1.1 Increase our market share year over year.
Goal 1.1.1 Achieve 10% market share in market segment Y by
12/31/0x. (Bob)
Key Result Area 2.0: Products/Services
Objective 2.1
Develop and successfully launch highly functional,
innovative, competitively priced products based on specific
customer needs.
Goal 2.1.1 Achieve quality levels (built to spec) of 95% or better on
product X by 6/30/0x. (Carol)
Key Result Area 3.0: Resources
Objective 3.1
Be fully staffed with people who possess the skills to help
grow the business.
Goal 3.1.1 Successfully recruit and hire 3 new sales associates with a
minimum of three years experience in our own or a
related industry by 3/31/0x. (Jerry)
Key Result Area 4.0: Operational Systems
Objective 4.1
Continuously improve our forecasting systems to improve
our ability to react to actual sales trends.
Goal 4.1.1 Achieve a 95% unit accuracy rate on existing product
forecasts by 9/30/0x. (Beth)
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Sample Key Result Areas, Objectives, and Goals (cont’d)
Key Result Area 5.0: Management Systems
Objective 5.1
Develop and effectively implement strategic planning
processes that are consistent with our culture and support
our growth.
Goal 5.1.1 Have action plans developed for all Goals (no later than
120 days before their due date). (All managers)
Key Result Area 6.0: Company Culture
Objective 6.1
Effectively manage our company’s culture to support our
Strategic Mission.
Goal 6.1.1 Develop a formal (written) statement of our company’s
culture and communicate it to all employees by 6/30/0x.
(Juan)
Key Result Area 7.0: Financial Results
Objective 7.1 Achieve acceptable revenue growth.
Goal 7.1.1 Achieve $10 million in revenues by 12/31/0x. (Catherine)
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Developing Your Objectives and Goals
Begin by reviewing the “Strategies to Promote Success” identified as a part of your
Environmental Scan and your Organizational Assessment.
Developing Objectives
Using this information as input, in the space below, develop Objectives that reflect
what your company needs to do or achieve over the next three years to maximize
opportunities/strengths, minimize threats, and overcome internal
limitations/weaknesses. Note: Objectives frequently begin with statements
like, “To achieve…,” “To improve…,” “To develop and implement…,” “To
increase…,” “To maximize…,” etc. Think RESULTS! Feel free to use another
sheet of paper or to generate your ideas on a flip chart (if you are working with a
team).
DRAFT OBJECTIVES
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Take the Objectives you developed on the previous page and categorize them by
the following Key Result Areas:
1.0
Markets.
2.0
Products/Services
3.0
Resources
4.0
Operational Systems
5.0
Management Systems
6.0
Company Culture
7.0
Financial Results
Record these Objectives within the appropriate KRA on the plan pages that begin on
page 34 of this workbook.
For each KRA, identify any additional Objectives that reflect, broadly, what you
want to achieve over the next 3 years.
Creating Goals
To develop Goals, work on each Objective individually. You may start with any
Objective that makes sense. (Be sure to keep Environmental Scan and
Organizational Assessment results in mind). For each Objective (in turn):
•
Identify what you want to achieve by the end of your next fiscal year (no
more than 18 months from now) to support the Objective. Initially, keep
your ideas broad and record them on a separate piece of paper (or a flip
chart if you are working with a team). At this stage, you are looking for
concepts, versus making the Goals SMART.
•
Once you have generated all ideas – and they don’t have to be many – for
what you want to or need to achieve in the coming 12 months, convert the
ideas into one or more SMART Goals. To do this:
o
Make the Goal results-oriented (to the extent possible). In some cases
(particularly if it focuses on developing new systems), the Goal will
tend to read more like a “To Do” (e.g., “To develop and implement X
system”) versus something to be achieved. To make these types of
Goals more specific and measurable, try to specify the criteria that
need to be met for completing the Goal (e.g., “To develop and
implement a new computer system that meets the following
specifications:”).
o
Establish a “measurement” (or target) for the Goal. One “test” for
whether the Goal is, in fact, measurable is to ask yourself the
question, “Would two independent parties assessing performance
against this Goal at its due date give it the same rating?” If the answer
is, “Yes,” chances are that the Goal is measurable enough. If there is
a significant chance that performance would differ between the two
parties, the Goal is probably not as clear or as measurable as it needs
to be.
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o
Specify the date by which the Goal needs to be achieved – using a
month, day, and the year.
o
Identify who on your team will be responsible for achieving the Goal.
This person does not need to “do it all.” However, this person will be
responsible for driving toward and reporting on results. You can use
initials, first names, etc. to identify the responsible party, but use a
consistent approach throughout your plan.
•
Record the Goal, its due date, and person responsible under the Objective on
the planning pages that begin on page 44 of this workbook.
•
Feel free to go beyond the number of Objectives and Goals provided in these
worksheets under each KRA, if needed.
After you have completed the development of your Objectives and Goals, review all
of them one more time. During this review, ask yourself whether it is reasonable to
assume that all Goals can be completed by their due dates, given what you know
about current and anticipated resources. If you feel that due dates or the targets
you have established in your Goals are unrealistic, change them. You want your
plan to be as realistic as possible.
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KEY RESULT AREAS, OBJECTIVES, AND GOALS
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KRA 1.0 Markets
Objective 1.1
Goals
Priority
Who
When
Status
Goals
Priority
Who
When
Status
1.1.1
1.1.2
1.1.3
Objective 1.2
1.2.1
1.2.2
1.2.3
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Objective 1.3
Goals
Priority
Who
When
Status
Goals
Priority
Who
When
Status
1.3.1
1.3.2
1.3.3
Objective 1.4
1.4.1
1.4.2
1.4.3
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KRA 2.0 Product/Services
Objective 2.1
Goals
Priority
Who
When
Status
Goals
Priority
Who
When
Status
2.1.1
2.1.2
2.1.3
Objective 2.2
2.2.1
2.2.2
2.2.3
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Objective 2.3
Goals
Priority
Who
When
Status
Goals
Priority
Who
When
Status
2.3.1
2.3.2
2.3.3
Objective 2.4
2.4.1
2.4.2
2.4.3
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KRA 3.0 Resources
Objective 3.1
Goals
Priority
Who
When
Status
Goals
Priority
Who
When
Status
3.1.1
3.1.2
3.1.3
Objective 3.2
3.2.1
3.2.2
3.2.3
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Objective 3.3
Goals
Priority
Who
When
Status
Goals
Priority
Who
When
Status
3.3.1
3.3.2
3.3.3
Objective 3.4
3.4.1
3.4.2
3.4.3
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KRA 4.0 Operational Systems
Objective 4.1
Goals
Priority
Who
When
Status
Goals
Priority
Who
When
Status
4.1.1
4.1.2
4.1.3
Objective 4.2
4.2.1
4.2.2
4.2.3
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Objective 4.3
Goals
Priority
Who
When
Status
Goals
Priority
Who
When
Status
4.3.1
4.3.2
4.3.3
Objective 4.4
4.4.1
4.4.2
4.4.3
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KRA 5.0 Management Systems
Objective 5.1
Goals
Priority
Who
When
Status
Goals
Priority
Who
When
Status
5.1.1
5.1.2
5.1.3
Objective 5.2
5.2.1
5.2.2
5.2.3
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Objective 5.3
Goals
Priority
Who
When
Status
Goals
Priority
Who
When
Status
5.3.1
5.3.2
5.3.3
Objective 5.4
5.4.1
5.4.2
5.4.3
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KRA 6.0 Company Culture
Objective 6.1
Goals
Priority
Who
When
Status
Goals
Priority
Who
When
Status
6.1.1
6.1.2
6.1.3
Objective 6.2
6.2.1
6.2.2
6.2.3
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KRA 7.0 Financial Results
Objective 7.1
Goals
Priority
Who
When
Status
Goals
Priority
Who
When
Status
7.1.1
7.1.2
7.1.3
Objective 7.2
7.2.1
7.2.2
7.2.3
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STEP #4: FINALIZING YOUR PLAN
To finalize your plan:

Review and finalize the Business Definition/Concept you developed on
page 17 of this workbook. Record the final version of the Business
Definition/Concept in the appropriate space on the next page.

Review and finalize the Strategic Mission Statement you developed on
page 21 of this workbook. Record the final version of the Strategic
Mission in the appropriate space on the next page.

Review and finalize the Core Strategy you developed on page 23 of this
workbook. Record the final version of the Core Strategy in the
appropriate space on the next page.

Remove the next page from this workbook – this will be the start of your
plan.

Remove pages 33 to 45 of this workbook and put this information behind
the information that is recorded on the following page.

Review/refine your company’s budget to ensure that it is aligned with
your strategic plan. If you do not already have a company budget,
develop one.

If desired, create a title page for your plan.

Put your plan – including your Business Definition/Concept, Strategic
Mission Statement, Core Strategy, Objectives, and Goals – and your
budget in a binder so that you can refer to it often. Store the electronic
version of your plan – the pages identified above – in a place where you
can periodically access and update it.
Congratulations! Your strategic plan is complete!
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Business Foundation For ________________
Business Definition/Concept
Strategic Mission
Core Strategy
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STEP #5: PLAN IMPLEMENTATION AND MONITORING
You have now completed your Business Plan. Be sure that you have a printout of
your entire plan and that you keep it in a place where you can refer to and use it
often.
Plan Implementation
Successful plan implementation depends, to a great extent, on ensuring that your
own and your team’s time is being invested in ways consistent with your Goals.
The best way to make this happen is to adopt and learn how to use a formal time
management system.
There are a variety of systems available, ranging from paper and pencil systems
(e.g., Day Timers, Franklin-Covey, etc.) to PDAs (including Palm Pilots, Compaq
IPAQ, etc.) You should choose a system that will be effective for you. If you have
never used a time management system before, you will probably want to start with
a simple (probably paper and pencil) system.
The key is to find something that will work for you and then learn how to use it
effectively.
Plan Monitoring
Plan monitoring provides you with the opportunity to assess how you (and your
team, if appropriate) are performing relative to your Goals and to make
adjustments, as needed, to increase your probability of success.
We recommend that you (and your team, if appropriate) schedule a half- to full-day
meeting at least once a quarter. The purpose of these meeting is to:

Review progress being made against Goals.

Celebrate successes with respect to achieving Goals.

Identify any problems or anticipated problems with respect to achieving
Goals and develop plans to address these problems.

Discuss and work to resolve any other issues that might affect company
performance. These include new opportunities or threats presented by the
market and changes to the company’s internal operations.
The output of the meeting will be an updated plan that includes documentation of
progress against Goals, changes to Goals, and new Goals. In addition, many teams
prepare minutes that include more detail about the discussion that has taken place.
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Note: The rest of this section describes how to manage the plan
monitoring process when a team is involved. If you are the sole owner of
the plan, the above information should provide you with what you need.
In preparation for these quarterly review/implementing meetings, each team
member should document the progress being made and any problems he or she is
facing with respect to his or her Goals (that is, those Goals for which he or she is
responsible). This information should be recorded in the “Status” column of the
plan. This formal update should be completed no later than 2 weeks before the
scheduled meeting. There are any number of ways to collect and summarize this
information, but it typically works best to have a single person responsible for
collecting all input and recording it in the plan document – versus having every
individual record his or her updates directly into the plan.
Team members should also be prepared to discuss strategies for overcoming
problems in achieving their Goals and should be asked to submit any issues that
they feel require the entire team’s input.
One team member should be given responsibility for preparing the meeting’s
agenda which should be circulated, along with the updated plan, at least one week
before the scheduled meeting. All team members should be asked to review the
agenda and the plan before the meeting. During their review of the plan, they
should identify any questions or concerns that they have about progress being
made and be prepared to share this information with the larger team during the
meeting.
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