Navigating Strategic Growth
October, 2014
Today’s Objectives and Agenda
Objective:
Understand the importance of strategic choices in driving profitable growth
Learn how to create a simple, easily internalized, democratized roadmap to navigate a winning strategy
for your business
Agenda:
•
•
•
•
•
•
•
•
•
•
•
We’ve Got This Covered … We Have a Strategy
Ok, Do We Really Need a Strategy?
Benefits of a Strategic Plan
Why Strategies Fail
Elements of a Strong Strategic Business Plan
Building a Plan @ a Glance
OGSA (Objectives, Goals, Strategies, Actions) Examples
Cascading Functional Strategies
What’s Required For This Process to Work
Check Up/Check In Process
Q&A
Quintessent Marketing
2
We’ve Got This Covered … We Have a Strategy
Three Types of CEOs:
•
Those who think they have a strategy — the most abundant
•
Those who pretend to think that they have a strategy, but deep down are really
hesitant because they fear they don’t actually have one — fewer in number
•
Those who do have a strategy — very few of them, but often heads of very
successful companies
Quintessent Marketing
3
Were You Not Listening in Elementary School?
“Would you tell me, please, which way I ought to go from here?”
“That depends a good deal on where you want to get to,” said the Cat.
“I don’t much care where---” said Alice.
“Then it doesn’t matter which way you go,’ said the Cat.
“—so long as I get SOMEWHERE,” Alice added as an explanation.
“Oh, you’re sure to do that,” said the cat, “if you only walk long enough.”
Alice’s Adventures in Wonderland, Chapter 6
“If you don’t know where you’re going, any road will get you there.”
Lewis Carroll
Quintessent Marketing
4
Ok, Do We Really Need a Strategy?
Leaders have many options they can pursue to grow their business. A strong
strategy identifies the critical few choices that will allow them to achieve their
goals. It helps the entire organization focus on what really matters.
"If you're a CEO, you're bombarded every minute of every day with
things that need your attention. Unfortunately, that puts you in the
here and now, short-term thinking. What you really need to do is find
the time and have the discipline to step back and think through what
winning is, where you are going to play, how you are going to play.”
A.G. Lafley, CEO, Procter & Gamble
“What is strategy but resource allocation? When you strip away all the
noise, that’s what it comes down to. Strategy means making clear-cut
choices about how to compete. You cannot be everything to everybody,
no matter what the size of your business or how deep its pockets”
Jack Welch, former CEO, General Electric
Quintessent Marketing
5
Benefits of a Strategic Plan
1.
Improved odds of success/risk reduction
– Strong, informed choices
– Everyone is on the same page
2.
Improved alignment and understanding
– One page summary is easy to follow and share
– Works well with employees and other stakeholders
3.
Improved productivity
– Less time wasted on low value activity
– All resources moving in the same direction
4.
Improved accountability
– Goals are clear to all
– Action plans have owners and deadlines
Quintessent Marketing
6
Why Strategies Fail
• Not Really Making Choices
• Focus and concentrate on specific markets, customers, consumers
• What will you do, what will you stop doing?
• Stuck in the Moment
• “Strategies” are a summary/to do list of everything you’re currently doing
• Or did last year
• Have No Relationship to Value Creation
• How do stakeholders benefit from the strategic choices – measurement
• It’s Too Complicated
• It’s In a Book On the Shelf
• Nobody Knows About It
• Mistaking Objectives and Tactics for Strategy
• Objective: Get in Shape. Strategy: Focus on Nutrition and Exercise.
Tactics: Limit fats and sugars, Fitness Classes 3x/week. Goal: 160 lbs. by New
Year’s Day
Quintessent Marketing
7
Getting the Terminology Straight
Discussion Examples: Objectives, Strategies, Goals, Tactics
•
Expand distribution into Latin America
•
Close the deal with xyz company
•
Deliver profitable growth in the top quartile of our competitive set
•
Reduce cost structure by 10%, generating savings of $1M in 2015
•
Increase marketing investment by reducing cost structure 10%, generating savings of
$1M in 2015
•
Leverage 6 sigma throughout the organization
•
Open new manufacturing facility by January 2016
•
Develop medicines that reduce suffering and serve as a source of affordable care for
children in the developing world
•
Improve throughput by 15%
•
Enter adjacent category with premium product
8
8
Elements of a Strong Strategic Business Plan
Organizations often miss the opportunity to propel their business to the next level by
failing to create and deploy a simple, disciplined strategic plan. Four key elements support
the achievement of your business objectives and goals.
1.
What To Be. The company’s purpose-driven mission. It defines what success
looks like. What business are we in? What purpose do we serve?
2.
Where To Play. Where the company will compete. What categories and
markets will we play in? What channels and price tiers?
3.
How To Win. How the organization will deliver success. How will we
organize for success? Who will we partner with?
4.
What To Do. The action plans support the above “Where to Play” and “How
to Win” choices. Each choice should have a few priority initiatives. Each
initiative must have an assigned leader.
These elements can and should be defined on a single page, along with specific
measurable goals for the planning horizon.
Quintessent Marketing
9
The Strategic Plan on One Page
Mission: (What to Be)
Objective
(Define Winning)
Strategy
(Where to Play)
Goals
(Measure Winning)
(How to Win)
Quintessent Marketing
Action Plans
(What to Do)
10
Building a Plan at a Glance
An Example:
Your sixteen year old son/daughter tells you they are beginning to contemplate moving out,
enjoying their independence and finding their way in the world as a soon-to-be adult.
Let’s assume you think your son/daughter belongs in college as a next step. How can you help
them create a winning strategic life plan that they will buy into to guide them through the next
couple of years?
Key Questions:
• Who do you want to become, what interests you, do you hope to leave the world a
better place …
What is your purpose/mission?
• How do you define winning/how will you know you’ve successfully moved in the
direction of your mission …
What is your Objective?
• How will you measure winning …
What are your measurable Goals that
link to your Objective?
• What strategies will you employ to achieve your objective?
Where to Play/How to Win
• What specific actions will you take to deliver on your strategic choices?
Quintessent Marketing
11
The Strategic College Plan on One Page
Mission: (What to Be)
Leave the world a better place for future generations by improving the health of marine animals
and of our waterways.
Quintessent Marketing
12
The Strategic College Plan on One Page
Mission: (What to Be)
Leave the world a better place for future generations by improving the health of marine animals
and of our waterways.
Objective
(Define Winning)
Gain acceptance into a top tier
Marine Biology program at a
school where I can enjoy a
balanced college experience
including college athletics &
Greek life
Quintessent Marketing
13
The Strategic College Plan on One Page
Mission: (What to Be)
Leave the world a better place for future generations by improving the health of marine animals
and of our waterways.
Objective (Define Winning) Strategy
Gain acceptance into a top tier (Where to Play)
Marine Biology program at a
• Public coastal university
school where I can enjoy a
with a top 10 program
balanced college experience
in Marine Biology
including college athletics,
• Midsize university (15k)
Greek life and go a little crazy
with Greek Life and a
strong NCAA football
program
(How to Win)
• Pinpointed tutoring –
biology, SAT/ACT scores
• Well rounded, unique
resume with a focus on
environmental
leadership
Quintessent Marketing
14
The Strategic College Plan on One Page
Mission: (What to Be)
Leave the world a better place for future generations by improving the health of marine animals
and of our waterways.
Objective (Define Winning)
Strategy
(Where to Play)
Gain acceptance into a top tier
Marine Biology program at a school •
where I can enjoy a balanced
college experience including
college athletics & Greek life and
general debauchery
•
Goals (Measure Winning)
•
•
•
•
•
Visit 3 schools by May 2015
Earn an unweighted high school
GPA of 3.8 or higher
Achieve SAT/ACT scores in the
top half of the range for my
target colleges
Quarterly participation in
relevant extracurricular activity
Gain early acceptance into 2-3
schools by 12/1 senior year
Quintessent Marketing
Public coastal
university with a top
10 program in Marine
Biology
Midsize university
(15k) with Greek Life
and a strong NCAA
football program
(How to Win)
•
•
Pinpointed tutoring –
biology, SAT/ACT
scores
Well rounded, unique
resume with a focus
on environmental
leadership
15
Mission: (What to Be)
Leave the world a better place for future generations by improving the health of marine animals and of
our waterways.
Objective (Define Winning)
Gain acceptance into a top tier
Marine Biology program at a
school where I can enjoy a
balanced college experience
including college athletics, Greek
life and unspeakable debauchery
Strategy
(Where to Play)
•
•
Goals (Measure Winning)
•
•
•
•
•
Visit 3 schools by May 2015
Earn an unweighted high
school GPA of 3.8 or higher
Achieve SAT/ACT scores in the
top half of the range for my
target colleges
Quarterly participation in
relevant extracurricular activity
Gain early acceptance into 2-3
schools by 12/1 senior year
Action Plans (What to Do)
Public coastal university
•
with a top 10 program in
Marine Biology
Midsize university (15k)
•
with Greek Life and a strong
NCAA football program
•
(How to Win)
•
•
Pinpointed tutoring –
biology, SAT/ACT scores
Well rounded, unique
resume with a focus on
environmental leadership
•
•
•
•
•
•
•
Quintessent Marketing
Identify top 10 marine bio
programs and visit 3 SE/SW
coastal schools
Research social/athletics fit
online and by interviewing
local grads of the university
Get copies of university
student newspapers
SAT/ACT practice tests
Biology tutor 3x/week
Take AP science courses
junior and senior year
Get summer internship at
Birch aquarium (La Jolla)
Start environmental club
Volunteer for ocean/marine
cleanup
Engage Olivia Pope
16
Objectives, Goals, Strategies, Actions (OGSA) - Service Business Example
Mission: Inspire Passion for Nature and Save Wildlife for Future Generations
Objective
Strategies
Action Plans
Inspire every visitor w/wildlife
everyday, by transforming all
elements of the experience to
achieve our mission & build financial
stability to succeed long term
1. Engage Visitors With Wildlife (Oehler)
Improve passion for zoo and its mission
through more personalized & innovative
experiences that improve engagement
with an outstanding animal and plant
collection
2. Focus On The G.U.E.S.T. (Yelton)
Create a visitor-focused experience with
outstanding customer service, facilities,
and staff that encourages repeat visits.
3. Create a Culture of Excellence
(Walton) Create a positive, customeroriented culture by raising expectations,
empowering staff/volunteers and
rewarding exceptional performance.
4.Financial Strength (Smith) Support
programs that drive net membership,
daily attendance and revenue, while
enhancing cost control everywhere in
the organization.
5. Promote Sustainability (Fisher)
Develop & utilize innovative approaches
to continually reduce the environmental
footprint of the zoo and engage our
visitors re: sustainability in their lives.
1a Improve operant condition, integrated
collection plan & expand community
participation (Oehler/Jun 14)
1b Inspire Conservation Action through Wildlife
Encounters (Jenike/Apr 14)
2a Improve facilities and visitor amenities,
particularly increased parking plan (Smith/Nov
13) food quality & service, reptile house roof,
and misting (Fischer Jun 14)
2b Develop Signage Plan to improve
communications to our visitors (Alt/Mar 14)
3a Define the goals, general principles, & initial
elements of a Zoo health & wellness program
(Walton/Dec 13)
3b Refine and broaden reward and recognition
program for staff and volunteers to reinforce
strategic plan priorities (Walton)
4a Refine & implement 5 yr integrated pricing
structure for admissions, membership, group
sales, & education including discounts
(Smith/Jan 14)
4b Build a plan to grow renewals & new
member HHs (Amrine/Dec 13)
5a Continue to drive down usage of natural
resources (Mark/Ongoing)
5b Promote and solidify our standing as the
greenest zoo in America, including solar array;
complete & distribute “Green Print” material
(Fisher/Apr 14)
Goals
Quintessent Marketing
17
Objectives, Goals, Strategies, Actions (OGSA) - Mfg Business Example
Mission: Make boats owners proud and loyal enthusiasts by making their maintenance experience
easier and more effective.
Objective
Strategies
Action Plans
Accelerate global sales and
profit growth rates to increase
shareholder value.
1. Expand Global Footprint with
new partners, with emphasis
on Brazil and China. (Miller)
Goals
2. Enter power tools category,
building on liquid cleaners and
manual brush base (Garcia)
1a) Define the right product lines, pricing,
and brand support based on test markets
(Miller, Feb ‘14)
1b) Finalize distribution agreements with
key partners in Brazil and Hong Kong
(Fulks, Apr ‘14)
2a) Qualify new product, brand concepts
for target countries (Baxley, Apr ‘14)
2b) Qualify the right contract
manufacturers (Marshal, Jul ‘14)
3a) Complete brand architecture study
and risk assessment. (King, Feb ‘14)
3b) Finalize inventory run-out plan.
(Smark, Mar ‘14)
4a) Complete SKU rationalization and
transition forecast (Rodriguez, Apr ‘14)
4b) Rationalize supplier base and inform
suppliers of changes and timing (Barker,
Jun ‘14)
5a) Establish employee task force with
two executive sponsors (Herbert, Mar ‘14)
5b)Run baseline measures of employee
engagement with third party supplier
(Herbert, Jul ‘14)
5c) Develop and implement improvement
plans. Track progress. (Lesset, Nov ‘14)
3. Consolidate minor brands
under Coralpure mega brand
(Williams)
4. Simplify supply chain, with
fewer partners to leverage
scale (Brown)
5. Improve employee
engagement, with special
emphasis on acquired
businesses (Davis)
Quintessent Marketing
18
Strategy Development is a Collaborative Process
• CEO and Executive Team
• Mission, Objectives
Top Down
Shared
• Executive Team: Corporate Strategy
• Functional Goals: Line Managers
• Line Managers, Direct Reports
• Tactics
19
19
Bottoms Up
Cascading Strategies – Manufacturing Example
Each discipline creates an annual one page plan that adds functional specificity
and more detail to action plans that link to overall business plan
Corporate Strategies
Manufacturing Strategies
Manufacturing Action Plans
1. Expand Global Footprint
with new partners, with
emphasis on Brazil and
China. (Miller)
1. Expand Manufacturing
capacity, in Brazil and China.
(Sheridan)
1a) Assess competitive landscape to identify cost
effective co-packers in Brazil and China (Levy3/14)
1b) Renegotiate/finalize agreements with selected
strategic partners in regions (Fulks, Apr ‘14)
1c) Finalize sourcing plan for lead items (Marshall,
Apr ‘14)
1d) Start up production facilities in lead markets
(Wilson, Jul ‘14)
2a) Evaluate and select best new liquid cleaner
process options including potential cost savings
(Staff, Apr 14)
2b) Finalize integration of production planning
systems with new contract manufacturers (Lerner
Jun 14)
2c) Qualify new process at contract manufacturers
(Marshal, Jul ‘14)
2d) Build start up inventory (Swan, Oct 14)
3a) Finalize inventory run-out plan. (Mill, Mar ‘14)
4a) Complete SKU rationalization and transition
forecast (Rodriguez, Apr ‘14)
4b) Rationalize supplier base and inform suppliers
of changes and timing (Barker, Jun ‘14)
4c) Develop and execute optimal transition plan
(Barker, Sep ‘14)
5a)Run baseline measures of supply chain
employee engagement at XYZ (Hilton, Jul ‘14)
5b) Develop and implement XYZ supply chain
20
improvement plans. Track progress. (Lite, Nov 14)
2. Enter power tools
category, building on liquid
cleaners and manual brush
base (Garcia)
3. Consolidate minor brands
under Coralpure mega brand
(Williams)
4. Simplify supply chain, with
fewer partners to leverage
scale (Brown)
5. Improve employee
engagement, with special
emphasis on acquired
businesses (Davis)
Quintessent Marketing
2. Develop more cost effective
liquid cleaner process to
successfully enter power tools
category (Herman)
3. Consolidate minor brands
under Coralpure mega brand
(Williams)
4. Simplify supply chain, with
fewer contract manufacturers
and reduced SKU count to
leverage scale (Brown)
5. Improve employee
engagement, emphasizing
successful supply chain
integration of XYZ acquisition
(Wilde)
What’s Required for this Process to Work . . . .
1.
Commitment and active participation by the CEO
– Willingness to make hard calls
– Clearly define success and stay on a consistent path
– Manage new priorities through, not outside, the strategy
2.
Commitment from executive team to align around the strategic priorities
– Company goals drive functional goals
– Recognize resources must migrate to top priorities
– Recognize some projects/passion areas won’t be pursued
3.
Acceptance that strategic planning is not a one-time event
– Development and deployment goes beyond the kick-off session
– Formal progress reviews done quarterly. Plan renewed annually.
– Becomes the foundation for all you do; all other work and systems must
integrate with the strategic plan
Quintessent Marketing
21
Checking Up, Checking In Process
•
Mission Alignment is Job 1: Who/what do we want to be and for what
distinct, unique and motivating purpose?
- Creating the strategy is the next critical step
- Successful implementation follows
•
Implementation requires a clear, consistent communication of the strategic
plan’s key elements
- employees,
- business partners,
- retailers, and
- investors
•
Get everyone on the same page to unleash the power of your organization
- People focus on what is most important
- People stop pursuing “attractive distractions”
•
Create a tracking system and follow up plan to ensure the work of the
organization is clearly connected to the strategic choices
Quintessent Marketing
22
Q&A
Quintessent Marketing
23
LIZ HARVEY, Partner
Scottsdale, AZ 85255
602 980 4634 – Mobile
liz.harvey@QuintessentMarketing.com
www.QuintessentMarketing.com
BRIAN SHOOK, Partner
Scottsdale, AZ 85255
480 695 4092 – Mobile
brian.shook@QuintessentMarketing.com
www.QuintessentMarketing.com
24