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Casual Articles - Footprints to Success: The Five Priorities of Strategic Planning in Wholesale Distribution
Most of the eye contact research being done recently is around people telling the truth. And there is substantial research that eye contact communicates caring and interest. For introverts in one to one communications this is a naturally strong asset.I have good eye contact when listening.In the medical field and in the professional speaking profession, the statistics bear out that if you want someone to know, feel or see that you are listening to them, then you want to have eye contact with them 60% to 80% of the time. More than this is staring and deceptive. Less than this is lack of sincerity or caring. This may differ in cultures outside of the USA; actually, it does differ to degrees and by gender.On one side, statistics state that 75% of our stimulation is, you guessed it, through our eyes. It’s probably helpful to our energy reserves to increase our eye contact in conversation; it keeps the surrounding activity out of sight.And the critical point in sales and business is that eye contact when listening is a positive trait.At the next networking meeting you attend, once you have an extrovert on your radar screen, notice how much eye contact they give you. If they are in this 60% to 80% of the time there’s a high degree of likelihood this is a learned trait in their behavior. Remember extroverts are stimulated by surrounding happenings. So their darting eyes may not be as much disinterest in listening but it also can appear that way. As introverts wanting to reserve our energy, we naturally make eye contact one to one and hold it longer.Regardless of the reason that we behave this way naturally, our tendency to have good eye contact is part of who we are as introverts, and quite sought after in communications!
Everyone must understand and share the same set of expectations. It is very helpful if one or two key staff members are skilled in project management.
A team leader will facilitate the development of a work plan which is an outline of the steps and activities that will take place during the planning process. The plan specifies the tasks, outcomes and resources to be expended, as well as the people responsible for each phase of the process.
How do you get started?
1st Priority:
If you have determined your readiness factors through assessment and you have performed the necessary preparatory research, then you are ready to launch the process. The following items should become your first priority.
• Create a Planning Committee
• Assign a team leader
• Identify specific ongoing initiatives
• Clarify roles (who does what in the process)
• Identify any additional research or outside resources necessary to assist you during the process
2nd Priority:
The second priority is to create the end game vision with clarification from ownership and the executive staff. The core strategy statement is an introductory paragraph that clearly defines the end game in understandable and measurable terms; it lets the reader know where the company intends to go. The end game must communicate the essence of the organization. Articulating the end game indicates your focus and purposefulness. The end game and its clarifying core strategy statement should contain:
• Purpose – why the organization exists and what it seeks to accomplish
• Business – the main method or activity through which the organization tries to fulfill this purpose
• Values – the principles or beliefs that guide an organization’s members as they pursue the organization’s purpose
• Specific-long term financial objectives
The core strategy statement summarizes the what, why and how much of an organization’s objectives. It presents an image of the character, the culture and the core values of the organization.
3rd Priority:
The third priority entails performing the S.W.O.T. analysis (strengths, weaknesses, opportunities and threats). A S.W.O.T. analysis means obt
What is the number one way to prevent failure in business? Take a minute to really think about your answer. What comes to mind? Increasing patients or customers served? … Effective marketing? … Location, location, location? … Improving patient or customer care? … Being the best in your industry?Although these are all essential aspects of business, the answer isn't any of the above. The number one way to prevent business failure is to properly manage your working capital.To ensure that we're all on the same page, working capital is simply defined as the difference between your current assets and current liabilities. If this figure is positive, you have working capital available. This working capital may exist as inventory, accounts receivable, or cash on hand.Working capital management is a critical management issue for growing businesses or medical practices. Take the example of a growing doctor's office: As expenses rise with patient-load increases, you accrue more outstanding cash, particularly before receiving reimbursement from the health insurance payors. At this point, your incoming cash does not nearly offset your costs going out. This may be manageable while you work with payments for past services; however, eventually the time lag may become a significant stress-point for your business.By adopting a few working capital management strategies, you can make your assets work for you, without becoming beholden to banks.Strategy #1: Get Paid NowLet's take a look at the most obvious area: accounts receivable. What do your receivables do for you when they are not being paid? While your profit margins may look stellar if you have a lot of orders, you have essentially loaned all of your clients the amounts of your invoices-until th
Discipline is a prerequisite to this process because it requires laser-like persistence to bring about a productive strategic planning initiative. The process raises a sequence of questions that helps planners examine current reality, test assumptions, gather and incorporate information about the present, and perform trend analysis on the future industry environment.
Fundamental decisions, actions and choices must be made in order to develop a plan that provides the “Footprints to Success.” The plan is ultimately no more, and no less, than a set of decisions about what to do, why to do it, and when and how to do it.
The scope of the strategy development process for any distributor is dependent upon individual business needs. The strategic planning process is a time and resource-consuming endeavor that involves many people in the organization. This process includes both tactical and strategic application.
A critical factor in developing a strategic plan is looking at the end game first. Just exactly what do you want your company to be when it grows up? Ask yourself the following questions from the perspective of looking five years into the future.
1. What markets will your company be serving five years from now?
2. What products will you be distributing?
3. Who are your primary competitors?
4. What are your strengths?
5. What are your competitors’ strengths?
6. How has your marketing strategy changed?
7. What are your core competencies?
8. What is the size of your revenue stream?
9. How is your revenue stream segmented?
These are just a few sample questions, but don’t stop there. After you’ve tried to visualize your corporate profile five years in the future, the next step is scenario planning. It’s the old “What If” analysis. What if you lose your major product line? What if your three biggest competitors become part of a consolidator roll up? What if you dramatically change your product offering so it doesn’t even resemble the industry you represent today? How will e-business impact your strategy? Recognize that an e-strategy should not exist in isolation from your overall company strategy. Remember that e-anything is only a tool while your company vision is the guide on how you use your tools.
Follow the Strategic Thinking Process
Strategic thinking by a strategy team leader provides a platform for the distributor that identifies the “end game” vision, determines core initiatives to achieve the vision, develops associated SIPs (Strategic Implementation Plans), and coaches the executive strategy team in preparing a presentation of their strategic document to the ownership or Board for approval. After approval is granted, this document becomes the basis for launching the total company planning process. Tactical issues such as sales strategies, performance accountability and compensation issues may also be included.
The Strategy Development Process
Phase I: Company Internal Survey
Preparation
A web-based survey is developed focusing on all aspects of the organization. This generates valuable, precise feedback from the employees. This survey is synthesized, analyzed and discussed at the strategy kickoff meeting.
End Game Definition
Through the use of brainstorming and scenario planning, the CEO and ownership create a picture of what the company will be and how it will function 5 to 10 years into the future. This process can be as simplistic as developing a well thought out visionary mission statement to doing actual “what if” scenario analysis identifying specific desirable future objectives.
Phase II:
Kick off Strategy Development Meeting – End Game Presentation
The CEO/Owner presents the end game analysis developed to the strategy team. Open discussion may or may not occur at this juncture. However, further discussion will take place after the CEO excuses himself from the meeting. This discussion will be moderated by a facilitator to get consensus of the end game by the strategy team. The end game may be challenged only if another alternative is offered.
Survey Presentation
A copy of the completed survey is handed out. A facilitator presents the analysis of the survey identifying key issues. A discussion of the issues is conducted but the discussion is controlled and kept informal without trying to solve world hunger at this one-day meeting.
Strategy Development Kickoff
A brief 60-minute strategy planning presentation is conducted by the facilitator to walk the participants through the process. The end game exercise is discussed and defined. This is meant to explain the beginning of the process. After the plan is completed a presentation will be made to the ownership, President and Board, gaining approval of the strategic plan prior to actual launch and execution of the strategy.
Doing nothing is not an option
As we’ve discussed, strategic planning involves anticipating the future environment and creating an end game analysis so the decisions are made in the present. This means that over time, the organization must regularly perform trend analysis in order to make the best decisions it can at any given point – it must manage, as well as plan, strategically.
Strategic planning is not a substitute for the exercise of judgment by leadership. Ultimately “the buck stops somewhere.” The strategic planning process does not make the organization work – it can only support the sound judgment and reasoning skills that people bring to the organization.
Strategic planning is a creative process. The fresh insight it engenders might very well alter past initiatives. Planning also consumes resources which are precious commodities. It can be an overwhelming and daunting task, but it is a process that eventually defines the direction and activities of the organization. Despite its overwhelming nature, the benefits of planning can far outweigh the hard work and pain involved in the process.
I cannot emphasize enough that the true value of a strategic plan is not in the document itself. It is in the process of creating it, involving many of your employees from the bottom up. This empowers them to be more effective and better-informed leaders, managers and decision makers. The time devoted to the planning process varies from organization to organization and you must decide how much time you will devote to the kick off planning process meeting. This can take the form of a two-day retreat or it can be an extended process. The organization will begin to realize benefits from the start. Fundamental benefits to the planning process include:
• A framework and a clearly defined direction with unified support
• A clear vision and purpose that is owned by all employees
• Commitment to the organization and its goals by the employees
• Set priorities that match company resources
• Trend analysis that creates confidence in the ability to take risks
• Accountability
Readiness Factors
The planning process is a major endeavor and timing is critical. There are certain organizational elements that must be in place in order to ensure that the planning process will provide the maximum benefit to the organization. You must clearly understand the organization’s current state and readiness to engage in the planning process. There are a number of preparatory steps that should be concluded prior to the start. An internal honest-gut-check assessment is recommended. Preferably an outside consultant with a fresh pair of eyes does this. Additionally, as mentioned earlier, third party customer, vendor and employee surveys should be conducted. Other items to secure at the onset include:
• A commitment on the part of executive management and ownership
• Resolution of all crises and life threatening issues
• Ownership and board support
• A commitment of necessary resources
• A willingness to think outside the box and to look at new approaches to performing and evaluating the “business”
• A basic understanding of scenario planning
The key resources required for planning include staff time, executive management time and finances (e.g., market research, consultants, etc.).
Staffing demands include:
• Collecting and analyzing data
• Scenario planning
• Engaging key stakeholders
• Gathering historical financial information, projecting future budgets and cash flow projections
• Analyzing options and consequences for potential organizational and program strategies
• End game analysis
Project Management
Project management becomes critical to the strategic planning process. Execution is the key to success. People have different expectations when they hear the word “planning.”
Everyone must understand and share the same set of expectations. It is very helpful if one or two key staff members are skilled in project management.
A team leader will facilitate the development of a work plan which is an outline of the steps and activities that will take place during the planning process. The plan specifies the tasks, outcomes and resources to be expended, as well as the people responsible for each phase of the process.
How do you get started?
1st Priority:
If you have determined your readiness factors through assessment and you have performed the necessary preparatory research, then you are ready to launch the process. The following items should become your first priority.
• Create a Planning Committee
• Assign a team leader
• Identify specific ongoing initiatives
• Clarify roles (who does what in the process)
• Identify any additional research or outside resources necessary to assist you during the process
2nd Priority:
The second priority is to create the end game vision with clarification from ownership and the executive staff. The core strategy statement is an introductory paragraph that clearly defines the end game in understandable and measurable terms; it lets the reader know where the company intends to go. The end game must communicate the essence of the organization. Articulating the end game indicates your focus and purposefulness. The end game and its clarifying core strategy statement should contain:
• Purpose – why the organization exists and what it seeks to accomplish
• Business – the main method or activity through which the organization tries to fulfill this purpose
• Values – the principles or beliefs that guide an organization’s members as they pursue the organization’s purpose
• Specific-long term financial objectives
The core strategy statement summarizes the what, why and how much of an organization’s objectives. It presents an image of the character, the culture and the core values of the organization.
3rd Priority:
The third priority entails performing the S.W.O.T. analysis (strengths, weaknesses, opportunities and threats). A S.W.O.T. analysis means obta
If it seems that big government and big business are in bed together it is only because they are - father and child. Government defines a corporation as an artificial person. Amen! What if we chose not to do business with artificial persons and traded only with real people? Incorporation is a privilege sold to business by governments. The business receives limited liability, which is to say, limited responsibility. As we have recently seen, a corporation can make fortunes for its operators while stealing from everyone else. The owners are safe from prosecution because they have a government immunity privilege they may have paid millions for, over the years, paid by taxes collected for their creators.They are the tentacles of the government octopus and major tax collectors. That the creators would bend over backwards to help and protect them is a matter of self preservation and public record. Outlaw incorporation or irresponsibility and the father/child incest comes to an end. So does the whole industry of corporate law. Don't you just love it when a single solution solves many problems? What would things cost if lawyers didn't get a cut of everything?Easier said than done, huh? Government wants it. Business wants it. Who doesn't? Only those who are tired of the rip offs, poisonings, degraded environment, social repression and all the negative isms, bald faced self interests have created. Protesters are a minority and we all know this is "democracy" where majority rules. That deadly, silent majority that never quite joined the party. Why, if it was not for government and corporations, we would have no jobs and we would all die. Other paid work is just not reliable enough for us. It makes us insecure. We live for paydays. Aaah - there is the rub.We ente
Follow the Strategic Thinking Process
Strategic thinking by a strategy team leader provides a platform for the distributor that identifies the “end game” vision, determines core initiatives to achieve the vision, develops associated SIPs (Strategic Implementation Plans), and coaches the executive strategy team in preparing a presentation of their strategic document to the ownership or Board for approval. After approval is granted, this document becomes the basis for launching the total company planning process. Tactical issues such as sales strategies, performance accountability and compensation issues may also be included.
The Strategy Development Process
Phase I: Company Internal Survey
Preparation
A web-based survey is developed focusing on all aspects of the organization. This generates valuable, precise feedback from the employees. This survey is synthesized, analyzed and discussed at the strategy kickoff meeting.
End Game Definition
Through the use of brainstorming and scenario planning, the CEO and ownership create a picture of what the company will be and how it will function 5 to 10 years into the future. This process can be as simplistic as developing a well thought out visionary mission statement to doing actual “what if” scenario analysis identifying specific desirable future objectives.
Phase II:
Kick off Strategy Development Meeting – End Game Presentation
The CEO/Owner presents the end game analysis developed to the strategy team. Open discussion may or may not occur at this juncture. However, further discussion will take place after the CEO excuses himself from the meeting. This discussion will be moderated by a facilitator to get consensus of the end game by the strategy team. The end game may be challenged only if another alternative is offered.
Survey Presentation
A copy of the completed survey is handed out. A facilitator presents the analysis of the survey identifying key issues. A discussion of the issues is conducted but the discussion is controlled and kept informal without trying to solve world hunger at this one-day meeting.
Strategy Development Kickoff
A brief 60-minute strategy planning presentation is conducted by the facilitator to walk the participants through the process. The end game exercise is discussed and defined. This is meant to explain the beginning of the process. After the plan is completed a presentation will be made to the ownership, President and Board, gaining approval of the strategic plan prior to actual launch and execution of the strategy.
Doing nothing is not an option
As we’ve discussed, strategic planning involves anticipating the future environment and creating an end game analysis so the decisions are made in the present. This means that over time, the organization must regularly perform trend analysis in order to make the best decisions it can at any given point – it must manage, as well as plan, strategically.
Strategic planning is not a substitute for the exercise of judgment by leadership. Ultimately “the buck stops somewhere.” The strategic planning process does not make the organization work – it can only support the sound judgment and reasoning skills that people bring to the organization.
Strategic planning is a creative process. The fresh insight it engenders might very well alter past initiatives. Planning also consumes resources which are precious commodities. It can be an overwhelming and daunting task, but it is a process that eventually defines the direction and activities of the organization. Despite its overwhelming nature, the benefits of planning can far outweigh the hard work and pain involved in the process.
I cannot emphasize enough that the true value of a strategic plan is not in the document itself. It is in the process of creating it, involving many of your employees from the bottom up. This empowers them to be more effective and better-informed leaders, managers and decision makers. The time devoted to the planning process varies from organization to organization and you must decide how much time you will devote to the kick off planning process meeting. This can take the form of a two-day retreat or it can be an extended process. The organization will begin to realize benefits from the start. Fundamental benefits to the planning process include:
• A framework and a clearly defined direction with unified support
• A clear vision and purpose that is owned by all employees
• Commitment to the organization and its goals by the employees
• Set priorities that match company resources
• Trend analysis that creates confidence in the ability to take risks
• Accountability
Readiness Factors
The planning process is a major endeavor and timing is critical. There are certain organizational elements that must be in place in order to ensure that the planning process will provide the maximum benefit to the organization. You must clearly understand the organization’s current state and readiness to engage in the planning process. There are a number of preparatory steps that should be concluded prior to the start. An internal honest-gut-check assessment is recommended. Preferably an outside consultant with a fresh pair of eyes does this. Additionally, as mentioned earlier, third party customer, vendor and employee surveys should be conducted. Other items to secure at the onset include:
• A commitment on the part of executive management and ownership
• Resolution of all crises and life threatening issues
• Ownership and board support
• A commitment of necessary resources
• A willingness to think outside the box and to look at new approaches to performing and evaluating the “business”
• A basic understanding of scenario planning
The key resources required for planning include staff time, executive management time and finances (e.g., market research, consultants, etc.).
Staffing demands include:
• Collecting and analyzing data
• Scenario planning
• Engaging key stakeholders
• Gathering historical financial information, projecting future budgets and cash flow projections
• Analyzing options and consequences for potential organizational and program strategies
• End game analysis
Project Management
Project management becomes critical to the strategic planning process. Execution is the key to success. People have different expectations when they hear the word “planning.”
Everyone must understand and share the same set of expectations. It is very helpful if one or two key staff members are skilled in project management.
A team leader will facilitate the development of a work plan which is an outline of the steps and activities that will take place during the planning process. The plan specifies the tasks, outcomes and resources to be expended, as well as the people responsible for each phase of the process.
How do you get started?
1st Priority:
If you have determined your readiness factors through assessment and you have performed the necessary preparatory research, then you are ready to launch the process. The following items should become your first priority.
• Create a Planning Committee
• Assign a team leader
• Identify specific ongoing initiatives
• Clarify roles (who does what in the process)
• Identify any additional research or outside resources necessary to assist you during the process
2nd Priority:
The second priority is to create the end game vision with clarification from ownership and the executive staff. The core strategy statement is an introductory paragraph that clearly defines the end game in understandable and measurable terms; it lets the reader know where the company intends to go. The end game must communicate the essence of the organization. Articulating the end game indicates your focus and purposefulness. The end game and its clarifying core strategy statement should contain:
• Purpose – why the organization exists and what it seeks to accomplish
• Business – the main method or activity through which the organization tries to fulfill this purpose
• Values – the principles or beliefs that guide an organization’s members as they pursue the organization’s purpose
• Specific-long term financial objectives
The core strategy statement summarizes the what, why and how much of an organization’s objectives. It presents an image of the character, the culture and the core values of the organization.
3rd Priority:
The third priority entails performing the S.W.O.T. analysis (strengths, weaknesses, opportunities and threats). A S.W.O.T. analysis means obt
If you are organising an exhibition, event or even exhibiting your own stands display at an event, you will want to ensure that people are aware of your presence, ahead of time. Making your presence known at an exhibition ahead of time can help to drive interest and visitor numbers. So what can you do? One idea is to submit an electronic press release online to one of the many websites who now specialise in electronic press releases. Before submitting the press release though, you need to know how to write one. Below are 8 tips to help you write the online press release to promote your exhibition or exhibition stand.1. Ensure that you give clear information about the exhibition in the first paragraph. This can be expanded upon in later paragraphs in the article. This first paragraph though is crucial and will also enable you to make clear who the target audience are, i.e. the people you are looking to attract to your exhibition.2. Make sure you give clear information about where and when the exhibition is and also if possible, details on how to get to the venue. If the press releases is about one exhibition stand only then be sure to give details on how to find your stand in the exhibition, i.e. stand number and aisle number.3. Using a bulleted list can be a very good way to break points down and to make information clear.4. Ensure that you use your keywords in the title of the press releases so that it attracts the right people.5. Do not try and over-complicate the press release with over-complicated words, unless needed. Keep the electronic press release simple.6. Ensure that you add one or two links to your website, in the press release. Most electronic press release sites allow you to add in a few links. The link/s will benefi
Survey Presentation
A copy of the completed survey is handed out. A facilitator presents the analysis of the survey identifying key issues. A discussion of the issues is conducted but the discussion is controlled and kept informal without trying to solve world hunger at this one-day meeting.
Strategy Development Kickoff
A brief 60-minute strategy planning presentation is conducted by the facilitator to walk the participants through the process. The end game exercise is discussed and defined. This is meant to explain the beginning of the process. After the plan is completed a presentation will be made to the ownership, President and Board, gaining approval of the strategic plan prior to actual launch and execution of the strategy.
Doing nothing is not an option
As we’ve discussed, strategic planning involves anticipating the future environment and creating an end game analysis so the decisions are made in the present. This means that over time, the organization must regularly perform trend analysis in order to make the best decisions it can at any given point – it must manage, as well as plan, strategically.
Strategic planning is not a substitute for the exercise of judgment by leadership. Ultimately “the buck stops somewhere.” The strategic planning process does not make the organization work – it can only support the sound judgment and reasoning skills that people bring to the organization.
Strategic planning is a creative process. The fresh insight it engenders might very well alter past initiatives. Planning also consumes resources which are precious commodities. It can be an overwhelming and daunting task, but it is a process that eventually defines the direction and activities of the organization. Despite its overwhelming nature, the benefits of planning can far outweigh the hard work and pain involved in the process.
I cannot emphasize enough that the true value of a strategic plan is not in the document itself. It is in the process of creating it, involving many of your employees from the bottom up. This empowers them to be more effective and better-informed leaders, managers and decision makers. The time devoted to the planning process varies from organization to organization and you must decide how much time you will devote to the kick off planning process meeting. This can take the form of a two-day retreat or it can be an extended process. The organization will begin to realize benefits from the start. Fundamental benefits to the planning process include:
• A framework and a clearly defined direction with unified support
• A clear vision and purpose that is owned by all employees
• Commitment to the organization and its goals by the employees
• Set priorities that match company resources
• Trend analysis that creates confidence in the ability to take risks
• Accountability
Readiness Factors
The planning process is a major endeavor and timing is critical. There are certain organizational elements that must be in place in order to ensure that the planning process will provide the maximum benefit to the organization. You must clearly understand the organization’s current state and readiness to engage in the planning process. There are a number of preparatory steps that should be concluded prior to the start. An internal honest-gut-check assessment is recommended. Preferably an outside consultant with a fresh pair of eyes does this. Additionally, as mentioned earlier, third party customer, vendor and employee surveys should be conducted. Other items to secure at the onset include:
• A commitment on the part of executive management and ownership
• Resolution of all crises and life threatening issues
• Ownership and board support
• A commitment of necessary resources
• A willingness to think outside the box and to look at new approaches to performing and evaluating the “business”
• A basic understanding of scenario planning
The key resources required for planning include staff time, executive management time and finances (e.g., market research, consultants, etc.).
Staffing demands include:
• Collecting and analyzing data
• Scenario planning
• Engaging key stakeholders
• Gathering historical financial information, projecting future budgets and cash flow projections
• Analyzing options and consequences for potential organizational and program strategies
• End game analysis
Project Management
Project management becomes critical to the strategic planning process. Execution is the key to success. People have different expectations when they hear the word “planning.”
Everyone must understand and share the same set of expectations. It is very helpful if one or two key staff members are skilled in project management.
A team leader will facilitate the development of a work plan which is an outline of the steps and activities that will take place during the planning process. The plan specifies the tasks, outcomes and resources to be expended, as well as the people responsible for each phase of the process.
How do you get started?
1st Priority:
If you have determined your readiness factors through assessment and you have performed the necessary preparatory research, then you are ready to launch the process. The following items should become your first priority.
• Create a Planning Committee
• Assign a team leader
• Identify specific ongoing initiatives
• Clarify roles (who does what in the process)
• Identify any additional research or outside resources necessary to assist you during the process
2nd Priority:
The second priority is to create the end game vision with clarification from ownership and the executive staff. The core strategy statement is an introductory paragraph that clearly defines the end game in understandable and measurable terms; it lets the reader know where the company intends to go. The end game must communicate the essence of the organization. Articulating the end game indicates your focus and purposefulness. The end game and its clarifying core strategy statement should contain:
• Purpose – why the organization exists and what it seeks to accomplish
• Business – the main method or activity through which the organization tries to fulfill this purpose
• Values – the principles or beliefs that guide an organization’s members as they pursue the organization’s purpose
• Specific-long term financial objectives
The core strategy statement summarizes the what, why and how much of an organization’s objectives. It presents an image of the character, the culture and the core values of the organization.
3rd Priority:
The third priority entails performing the S.W.O.T. analysis (strengths, weaknesses, opportunities and threats). A S.W.O.T. analysis means obt
Having good governance principles in place ensures success and builds trust in the marketplace over the long term. Customers and investors alike gravitate toward companies and businesses that are seen to be well-managed, well-governed and operate under a clearly defined set of standards.Effective small business owners and managers are well aware of the need to secure their business and protect it against legal exposure and any potentially damaging publicity. Making effective strategic and operational decisions is critical in achieving this objective.Being aware of the issues at stake and being well-informed in regard to the standards that need to be attained and maintained are givens. Objective decision making in regard to these risk factors is a sign that the qualities of good leadership are being exercised within a business.Further, there are three key factors that need to be observed and considered in building good governance principles into your small business.Ownership and Trust Most small business environments are created by an individual or a family. In the case of a small family business, relationships can be close and intense. This means that such businesses can often be emotionally laden environments. When families have interpersonal difficulties, emotional intelligence in business can be difficult to maintain.As such, this particular form of ownership can create potential risks. These risks can often be exacerbated when there is a high degree of power concentrated in one person, usually the founder of the business, or in one or two other family members. Such concentration can lead to poor decision-making, a myopic mindset and/or an unclear focus.Therefore, it is incumbent upon successful and effective
• A framework and a clearly defined direction with unified support
• A clear vision and purpose that is owned by all employees
• Commitment to the organization and its goals by the employees
• Set priorities that match company resources
• Trend analysis that creates confidence in the ability to take risks
• Accountability
Readiness Factors
The planning process is a major endeavor and timing is critical. There are certain organizational elements that must be in place in order to ensure that the planning process will provide the maximum benefit to the organization. You must clearly understand the organization’s current state and readiness to engage in the planning process. There are a number of preparatory steps that should be concluded prior to the start. An internal honest-gut-check assessment is recommended. Preferably an outside consultant with a fresh pair of eyes does this. Additionally, as mentioned earlier, third party customer, vendor and employee surveys should be conducted. Other items to secure at the onset include:
• A commitment on the part of executive management and ownership
• Resolution of all crises and life threatening issues
• Ownership and board support
• A commitment of necessary resources
• A willingness to think outside the box and to look at new approaches to performing and evaluating the “business”
• A basic understanding of scenario planning
The key resources required for planning include staff time, executive management time and finances (e.g., market research, consultants, etc.).
Staffing demands include:
• Collecting and analyzing data
• Scenario planning
• Engaging key stakeholders
• Gathering historical financial information, projecting future budgets and cash flow projections
• Analyzing options and consequences for potential organizational and program strategies
• End game analysis
Project Management
Project management becomes critical to the strategic planning process. Execution is the key to success. People have different expectations when they hear the word “planning.”
Everyone must understand and share the same set of expectations. It is very helpful if one or two key staff members are skilled in project management.
A team leader will facilitate the development of a work plan which is an outline of the steps and activities that will take place during the planning process. The plan specifies the tasks, outcomes and resources to be expended, as well as the people responsible for each phase of the process.
How do you get started?
1st Priority:
If you have determined your readiness factors through assessment and you have performed the necessary preparatory research, then you are ready to launch the process. The following items should become your first priority.
• Create a Planning Committee
• Assign a team leader
• Identify specific ongoing initiatives
• Clarify roles (who does what in the process)
• Identify any additional research or outside resources necessary to assist you during the process
2nd Priority:
The second priority is to create the end game vision with clarification from ownership and the executive staff. The core strategy statement is an introductory paragraph that clearly defines the end game in understandable and measurable terms; it lets the reader know where the company intends to go. The end game must communicate the essence of the organization. Articulating the end game indicates your focus and purposefulness. The end game and its clarifying core strategy statement should contain:
• Purpose – why the organization exists and what it seeks to accomplish
• Business – the main method or activity through which the organization tries to fulfill this purpose
• Values – the principles or beliefs that guide an organization’s members as they pursue the organization’s purpose
• Specific-long term financial objectives
The core strategy statement summarizes the what, why and how much of an organization’s objectives. It presents an image of the character, the culture and the core values of the organization.
3rd Priority:
The third priority entails performing the S.W.O.T. analysis (strengths, weaknesses, opportunities and threats). A S.W.O.T. analysis means obt
THE STRUGGLE -- I was recently talking with one of my entrepreneur friends. He has started three businesses in the last several years—a budding entrepreneur. He was relating some of the joys he has experienced in those enterprises: a sense of freedom from the corporate world, pursuing his dreams and passions, setting his own schedule, controlling his destiny and a large potential for financial rewards.However, he did mention a few downsides: little to no outside accountability, lack of consistent capital, feelings of loneliness, no steady revenue stream, feeling disconnected from others who don’t understand his drive to succeed, constant struggles to survive and a severe lack of work-life balance. Sound familiar?I think most entrepreneurs struggle with similar issues, especially balance. There are many reasons they can give for their lack of life balance and low satisfaction: “I have too much work to do. I just need a few more hours to finish this project. I need more money. I have bills to pay. My business depends on my hard work. My family needs more income. I am solely responsible for developing, marketing, selling and servicing my product or service.”Any or all of these reasons may be true, which might lead entrepreneurs to find great difficulty in managing the two sides of entrepreneurship—balance and success. How often do you struggle with working longer hours than you know you should to try and secure the next sale? How many times has your family and friends tried to pull you away from your office this last month? Take a moment and count up the actual hours you have spent working this last week or month. There is always the temptation to do a little more, work a little harder, talk to one more potential customer in hopes of making one more sale
Everyone must understand and share the same set of expectations. It is very helpful if one or two key staff members are skilled in project management.
A team leader will facilitate the development of a work plan which is an outline of the steps and activities that will take place during the planning process. The plan specifies the tasks, outcomes and resources to be expended, as well as the people responsible for each phase of the process.
How do you get started?
1st Priority:
If you have determined your readiness factors through assessment and you have performed the necessary preparatory research, then you are ready to launch the process. The following items should become your first priority.
• Create a Planning Committee
• Assign a team leader
• Identify specific ongoing initiatives
• Clarify roles (who does what in the process)
• Identify any additional research or outside resources necessary to assist you during the process
2nd Priority:
The second priority is to create the end game vision with clarification from ownership and the executive staff. The core strategy statement is an introductory paragraph that clearly defines the end game in understandable and measurable terms; it lets the reader know where the company intends to go. The end game must communicate the essence of the organization. Articulating the end game indicates your focus and purposefulness. The end game and its clarifying core strategy statement should contain:
• Purpose – why the organization exists and what it seeks to accomplish
• Business – the main method or activity through which the organization tries to fulfill this purpose
• Values – the principles or beliefs that guide an organization’s members as they pursue the organization’s purpose
• Specific-long term financial objectives
The core strategy statement summarizes the what, why and how much of an organization’s objectives. It presents an image of the character, the culture and the core values of the organization.
3rd Priority:
The third priority entails performing the S.W.O.T. analysis (strengths, weaknesses, opportunities and threats). A S.W.O.T. analysis means obtaining current information about the organization’s strengths, weaknesses and performance information that will highlight the critical issues that the organization faces. These become key issues the strategic plan must address. These could include a variety of primary concerns, such as funding issues, new program opportunities, changing regulations or changing needs in the client population, and so on. The point is to choose the most important issues to address. Critical constraints should naturally emerge from this process. Identifying critical constraints is the primary reason for doing a SWOT analysis.
4th Priority:
The fourth priority is to begin to develop departmental initiatives required to support the end game.
Strategies, goals and objectives may come from individual inspiration, group discussion, formal decision-making techniques and so on – but the bottom line is that leadership agrees on how to address the critical issues.
This can turn into a negotiating process and eat up considerable time and flexibility. It is possible that new insights will emerge which change the thrust of the end game. It is important that planners are not afraid to go back to an earlier step in the process and take advantage of available information to create the best possible plan.
“Changing the end game is not a crime.”
5th Priority:
The fifth priority and conclusion to this explanation of the process is producing the completed, documented plan. The end game has been articulated, the issues identified and the goals and strategies agreed upon. This step essentially involves putting all that down on paper. A planning consultant can be used to draft the final document and submit it for review to all key decision makers (usually the board, CEO and ownership). This is now the beginning of the process of developing individual departmental business plans congruent to, and supportive of, the strategic plan. These business plans should include departmental budgets.
Conclusion
Strategic planning involves looking at a longer time horizon, identifying future trends and developing action plans based on the highest probabilities. A good strategic planning process will enable a business to anticipate changing trends and implement actions that will enable them to gain or maintain competitive advantage. Add scenario planning and they can be ready for just about any consequence the market may throw their way.
Developing a well thought out strategy that involves much of the entire organization provides the “Footprints to Success.” It is now up to the executive team to lead the organization along the path these footprints follow.
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