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Company X
Who thought strategic planning was fun?
Image source: http://www.eastwestdaily.com/win-east-west-essentials-every-week/happy-people1
Strategic Context
Vision: Outlines what the organization wants to be, or how it wants the world in which it operates to be (an "idealised" view of the world). It is long-term view and concentrates on the future.
Mission: Defines the fundamental purpose of an organization, why it exists and what it does to achieve its vision.
Values: Beliefs that are shared among the stakeholders, drive an organization's culture & priorities, and provides a framework in which decisions are made.
Strategic Thrusts: broad statements of intended actions that provide a theme that knits together independent activities focusing energies on things that matter in the market. source: www.marketingpower.com
1. [category: revenue & EBITDA growth] Drive …2. [efficiency & effectiveness] Optimize …3. [customer experience] Enhance …4. [power our people] Engage …5. [channel & coverage] Develop…
source: http://en.wikipedia.org/wiki/Vision_statement#Mission_statements_and_vision_statements
Strategy Thrust #3
Strategic Thrust #1
Strategy Thrust #2
Strategic Thrust x
Future state: xxxxxx
Current state: xxxxx
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Defining the Future - Ishikawa
source: Kaoru Ishikawa
Product LeadershipStrong innovation/brand marketing
Operational ExcellenceSuperb operations and execution
Customer IntimacyExcels in customer attention & service
Source: Treacy & Wiersema
All companies must choose one of the value disciplines and consistently and vigorously act upon it
Value Disciplines
Market Scan/Dynamics
Regulatory Competitive Customer Technology Core Skills
Xxx Xxx Xxx
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Can
ada
US
RoW
Financial Performance
Perform current financial analysis (numerous boutique accounting firms can do this)
Income Statement 20xx 20xx 20xx CAGR
Revenue xxx xxx xxx
Cost of Good Sold (CoGs)
Gross Margin 0.0%
Gross Margin %
Operating Expenses
EBITDA
Product Performance
Line of Business(Product, Business
Unit)Business focus
% Tot Rev
5yr Grwth $
GM%EBITDA
%
Growth Strategy “Ansoff”
MarketPen’tn
ProductDev’lpmt
Market Dev’lpmt
Diversif’tn
1. Xxx x
2. Xxxx
3. Xxxx X
4. xxxx
5. xxxx
6. xxxxx X
7. xxxx
8. xxxx
9. xxxxx
13. xxxxx
Critical to examining product and/or business unit performance(consider mapping products to BCG matrix or product lifecycle)
investment strategy
xxxxxx xxxxxx Xxxxxx Xxxxxx
Revenue
Margin
8
Product Lifecycle Map
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introductory growth mature decline
Pipeline funnel growth exceeds decline revenue product loss
Growth TrajectoriesStrategic Scenarios*
$1M
$3M
$2.7M
$1.8B
20xx 20xx 20xx CAGR
Revenue xxx xxx xxx
Cost of Good Sold (CoGs)
Gross Margin 0.0%
Gross Margin %
Operating Expenses
EBITDA
Scenario #1
20xx 20xx 20xx CAGR
Revenue xxx xxx xxx
Cost of Good Sold (CoGs)
Gross Margin 0.0%
Gross Margin %
Operating Expenses
EBITDA
20xx 20xx 20xx CAGR
Revenue xxx xxx xxx
Cost of Good Sold (CoGs)
Gross Margin 0.0%
Gross Margin %
Operating Expenses
EBITDA
Scenario #2
Scenario #3Which scenario complements the
vision, mission, values, and strategic thrusts?
* Perform full financial statement analysis including cash flow to determine suitability
Prioritizing the Key Growth Opportunities
Divest Harvest Status Quo AccelerateQuantum
Leap
Prioritize Return on Investment for key initiatives
Geographic Segmentation [our target markets]
Market Penetration Product Development
Market Development Diversification
Globe image source: http://cybernations.wikia.com/wiki/File:Blue-globe.jpg
20xx 20xx 20xx 20xx
Market Size
Addressable Market
Market Share
Share of Wallet
Market Sizing
Exi
stin
gN
ew
Existing New
Products
Cu
sto
mer
s
Business Model Impacts
VALUEPROPOSITION
COSTSTRUCTURE
CUSTOMERRELATIONSHIP
TARGETCUSTOMER
DISTRIBUTIONCHANNEL
VALUECONFIGURATION
CORECAPABILITIES
PARTNERNETWORK
REVENUESTREAMS
gives an overall view of a company's bundle of products and services
“competitive advantage”
portrays the network of cooperative
agreements with other companies
describes the channels to communicate and
get in touch with customers
describes the arrangement of
activities and resources
explains the relationships a
company establishes with its customers
sums up the monetary consequences to run a
business model
describes the revenue streams through which
money is earned
describes the customers a company wants to offer value to
outlines the capabilities required to run a
company's business model
“core competencies”
INFRASTRUCTURE CUSTOMEROFFER
FINANCE
Itemize specific areas in the operating structure that will need to change to accomplish the strategic and financial goals
Source: www.designforinnovation.com
Value Chain Focus Areas
Company & Market Strategy
Product Strategy
Product Development
Product/ Solution
Sales
Product/ Solution Fulfill &
Install
Post Sales Service
Service PlanOrder Received
Service Remote Technical Support
Service Test
Service Quality
Sales Strategy & Planning
Billing
Opportunity & Funnel Management
Sales Analysis & Reporting
Order Processed
Order Fulfillment
Product Strategy Portfolio Plan
Business Case Development
R&D & Product Dev. Strategy & Plan
Product & Service Prioritization &
Gating
Strategy & Planning
Market Strategy & Segmentation
Channel Development
Channel Management
Product & Sol Development
Product & Sol Testing
Product Specs Definition
Product Dev. Mngmt
Product Technical Trial
Product Market Trial
Product & Service Launch
Installation
Billing & Collections Distributor/ Reseller
Billing & Collections End-Customer
Supply Chain Management
Product Analysis & Reporting
Channel & Customer Support
Customer Remote Support
End-Customer Training
End-Customer Communications
Marketing Campaigns
Channel Training
Channel Programs
Business Intelligence
Branding
Manufacturing
Inventory Mngmt & Logistics
Customer Solution Integration
ecommerce
Operations Mngmt Systems
CRM System
Segment Mngmt, Analysis & Reporting
Product IT Systems
Service Support Systems
Channel Training
Company KPI Dashboards
Order Process Management &
Reporting
Customer Raodshows
Highlight key areas in the value chain that will
need focus to successfully implement
strategic thrusts
Operational Plan DevelopmentStrategic Thrust Initiative Target Status Q1 Q2 Q3 Q4 Prime
Improve Share of Wallet by xx%
Introduce X John Q.
Execute x Jane M.