Meeting format for Strategic Planning (SP)

Meeting 1) President/CEO (P) & Facilitator (F) – On Site
Current situation. Overall purpose/result plan is to achieve. How SP meets this need. Mutual agreement on time line. Importance of support from the top. Guidelines for Strategic Planning Team (SPT) selection. Importance of “Fierce Conversations” & relationships.

2) President, SPT, Facilitator – Off Site, entire day 8-5.
(P) – Support comes from highest level. Critical need for SP to meet overall purpose. Criteria for member selection – individual differences & contributions, critical thinking. Sense of urgency. (F) – Overview of entire process & time line. Importance of participation; differences are gifts that make us stronger. Fierce Conversations. Creation of Mission, Values, & Vision Statements. Existing culture; is cultural change needed? Why?

3) Marketing Basics – Off Site 9-4
The Four Quadrants. Discipline of Market Leaders. Core Competencies. Focus & Niche. Competitive Advantage. Environmental Scanning, internal. What do we sell? What do our customers buy? How are we unique? How do we add value? What is ideal customer for us? Target vertical markets? Questionnaires/gathering information. What are our weaknesses?

4) External Scanning – Off Site 9-4
Marketplace characteristics. Who are our competitors? Why do customers buy from them instead of us? How do we attempt to beat or avoid competition? SWOT Analysis. Questionnaires/gathering information.

5) Setting Goals – Off Site 9-4
Build on strengths & take advantage of opportunities. Shore up weaknesses; avoid when possible. Strategic Formulation to achieve goals. Strategic Focus. Competitive Strategy.

6) Action Planning – Off Site 9-4
Objectives with time lines must be built. Ownership responsibilities, assign champions. It’s all about commitment! How to write the final plan. Allocation of resources - critical discussion of time, people, equipment, core competencies, money, material, & technology.

7) Final Plan Approval – On Site 9-12 followed by celebration luncheon. Corrections. Communicating to employees. Was overall purpose/result achieved? Follow-up plan.

8) Quarterly Evaluations – On Site
Measuring, monitoring, evaluation, handling deviations.

The Basic Terms of Strategic Planning

The Milwaukee BizTimes dedicated its January 22nd issue to “Positioning your company for THE REBOUND”. Several CEO’s were contributors, namely Bob Arzbaecher of Actuant. Although the consensus was not all hearts & flowers, there was agreement that what we do in the next several months is critical to our organization’s long term goals.

With our business cycle entering a slow, though steady improvement, there is some guarded optimism. The rationale appears to be, & rightfully so, preparing to capture market share while growing in a planned, profitable way.

History also shows that major opportunities abound in times of economic recovery. As Bob says, “Manufacture a rebound. Strategic Planning (SP) is the natural process to “discover” and create your future success.

Because SP is a major focus of my consulting business, to add value to those considering the process, I decided to put together a brief synopsis of SP and a typical meeting schedule. In preparation for that, this first posting will be one of commonly used terms.


Glossary

Benchmarking: normalizing results from competitors & other representative companies to compare performance and create a standard.

Core Competencies: areas of expertise found in the members of an organization that make it unique.

Customer Intimate: a value discipline satisfying special customer needs through specific knowledge of the customer.

External Scanning: gathering data & taking stock of the environment outside the company.

Facilitator: a neutral party without an agenda experienced in leading a group process to discover a successful course of action.

Fierce Conversations: speaking & listening honestly, as though each conversation is the most important you will ever have.

Goals: specific levels of accomplishment necessary to achieving some larger result.

Internal Scanning; same as external, except within the company.

Mission: why the organization exists.

Objectives: specific accomplishments that must be completed to achieve the goals of the plan.

Operational Excellence: middle market products at the best price with the least hassle.

Organizational Assessments: methods used to rate the organization, often with internal scanning.

Process: involving others with varied skills, viewpoints, & experiences in decision making.

Product Leadership: offering products that push performance boundaries.

Resources: people, money, equipment, technology, and materials needed to implement the strategies.

Smarter Objectives: specific, measurable, acceptable, realistic, time frame, extending, rewarding.

Strategies: processes/methods pursued to achieve goals.

SWOT: strengths weaknesses, opportunities, threats; a method of evaluation to help discover the most effective course of action.

Tasks: activities needed to implement the plan.

Value Disciplines: three desirable ways in which companies can combine operating models & value systems to be the best in their market.

Value Proposition: the promise to deliver a particular combination of price, quality, selection, convenience, etc.

Values: inherent in everything you do and how you do it.

Vision: the passion that motivates us to strive for success.

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The Growing Fundamentals of Digital Print Demand

Being dedicated to the Print and Book industries, I often encounter some form of the question: How involved do I have to be in Digital Printing? Although circumstances dictate the specifics, the answer is, COMPLETELY. For those of you thinking this sounds dramatic, rethink the issue.

I don't care whether you're RR Donnelley, or a small local printer, your life is changing before you. Change or die; it's that simple. When we emerge from this horrible economic funk we're in, which we surely will, the game will have changed. Those glorious long runs of several shifts, or even days, have waned.

The "why" of this is interesting. Not only is there a great need for smaller quantities to reduce inventory, obsolescence, and total cost, there is also an information explosion that demands today's knowledge & content. Just as social media has put us in the "now" mode, so has our very culture. Answers must be complete and completely current.

What results are not only short runs that demand quick turnarounds, but short runs that demand currency. The fact that this costs more is not the issue; timeliness & currency are. What matters is that it is worth the relatively small additional cost to have it the way we want it, when we want it. Why am I willing to purchase my "one click" book for a couple of bucks more on Amazon? I get it now, it's easy, & it's hassle-free.

Here are some fundamentals from the book industry: Page count for both manuals and books will experience real growth in the next 10 years. During this same time frame, digital books will also grow in page count as well as number of books. Orders will be up in number, but continue to decrease in size. If we want to be a part of this, we must plan now, according to our customer base, while leveraging & improving our core competencies. In short, we must change in an orderly fashion.

Good ole' responsiveness to the demand will identify the winners & losers. Which will you be? What do you need to rethink to make it happen?

Taking Care of the Survivors

A recent article in Business Week caught my eye, focusing not on reductions, but rather the (hopefully) best producers that remain. It was refreshing to see the emphasis where it really belongs: taking special care of your most valuable resource, your core people.

Restructurings have been a major part of the corporate landscape in the last 15 months, so much so that there isn't much left. At least, new options must be considered, but an even more responsible approach is to take special care of our "cream of the crop" employees that have survived. This not only helps their retention, but assists in preparation for future opportunities.

We need to manage the layoff process, but too often a disproportionate amount of time is spent with that, rather than involvement with the surviving talent. Chances are their workload is heavier, they may be making less money, and experiencing higher stress levels.

The article makes an excellent point that loyalty has been damaged, and these best people are now vulnerable to headhunters and your competition. Do you have a plan to retain them? How involved have they been made in solutions? Have they been rightfully made a part of the solution?

It involves sincere and effective communication. This fosters understanding and commitment, reduces rumors, & adds a personal touch. Handle the tough questions, continue to have fun, and celebrate successes. These are the ties that bind.

Get Off the Wagon & On the Bus

When you have been around as long as I have (am I experienced, or just old?), patterns develop, especially with the seasons. One of the most significant times is the New Year. Procrastination is conquered, action is taken, & we plunge forward. This year, many took action to eliminate further jobs & continue to reduce cost. Not fun; when will it end?

Two metaphors that speak to where most of us are with this now are: Pulling the Wagon; & Getting on the Bus.

The wagon (company) is big; it is heavy; and it takes substantial effort to move it forward. We need every able bodied person (all employees) pulling it. But some people are sitting on the wagon, wanting to BE pulled, rather than using their energy & talent to innovate & problem solve (pull). We need forward movers, not dead weight; we need solution crafters, not more problems.

The bus (company moving forward) is motorized, so the challenges are different. It moves forward because it has its own energy source (passion), but it has limited seats, and only the most qualified & prepared passengers can get on. Talent, values, and work ethic are critical to success; make your seating chart accordingly.

When all is said & done, these are your most critical choices to make. It’s not just about cutting a certain number of bodies representing a certain level of cost; it’s ensuring you have the number and talent level of employees available for the upturn that will surely ensue.

How are you leading the movement?

The Importance of Mission, Values & Vision in Strategic Planning

Strategic Planning (SP) is all about your organizational hopes & dreams for the future. Since our individual dreams are bound to be at least somewhat different, there likely will be some challenges, or even conflict in formulating them. Hence the need for consensus.

The most effective beginning of this process is to come together on what your mission, values, & vision (MVV) are. Without a foundational agreement on these, moving ahead in a unified manner is very difficult.

Mission is not only why the company exists, but what it wants to accomplish. It is your approach to your market & customers. It is the why of providing what you provide. Mission must be regularly reevaluated to make sure it reflects the dynamic situation you face.

Values are present in everything you do; they are the how of what you do. They are the way you treat others in getting the job done, internally & externally. They are your guiding light.

Vision is passion; vision is what keeps us going even when it's not fun, too difficult, or unlikely to succeed. It is what gets some to "charge the machine gun nest", or to keep getting up when repeatedly knocked down. Unbelievable things can get done through vision; that's why we need to come together to brilliantly paint the picture.

MVV are what binds you together. They describe your goals, where you're going, and how you intend to get there. They keep you on track, focused, and moving together as a team. You know where you are, and because you're measuring results, you know what changes need to be made.

Failing to begin the SP process in this way will cause frustration down the road. As the saying goes, "pay me now, or pay me later".

To get the most out of this process, you'll need to assemble a team that is diverse in their personality styles, comes from different areas/disciplines, and has a variety of competencies. One person may be an eternal optimist, another a contrarian. One may be a risk taker, another risk averse.

The real value is in the differences. Without them, your point of view is limited; mistakes are made. With them, it may not be as much fun, which is where the facilitator earns their keep, but a balanced conclusion can be reached that misses little.

So if we begin with MVV, & build a foundation on it, everyone understands the value of their part in the process, buys in, & great things happen. This is the most effective way an SP program is begun.

Perspective & Decision Making

We've all seen examples of our bias, or point of view, keeping us from a solution. One of the most popular was the challenge of connecting all the dots on a sheet of paper without ever lifting our pen or duplicating a line already drawn. Our frame of reference kept us from success by staying within the box. When we removed that self-imposed stipulation, it was easily done; hence "think outside the box" was coined.

There are others now, but the message is the same, although the puzzle challenge is different. A colleague of mine, Ichak Adizes, found one that required putting a puzzle of a plane together to make a square, but it required that you have the plane flying upside down to do it. As an Air Force pilot, I have flown inverted (upside down) many times; it is not a big deal. But do you think I could put this puzzle together? Not on your life. . . until I was told to turn it upside down!

And so it goes; we must stay open to the facts & data before we decided to "impose" a solution. The more experienced we are, the more we are a solution in search of a problem. Put another way, we jump to conclusions; or even worse, we've "been there, seen that" and become a Kia, a "know it all." And if you haven't noticed, Kia's are not liked and wrong much of the time.

In a business, we use data to clearly identify the problem which, when analyzed, will point the way to a solution. Too often, there is an immediate reaction to a problem when first suspected that sends us on the wrong journey. Take the time, and have the patience & discipline to wait to "discover" the action to be taken.

In the consulting world, I often make the comment that, "I believe I should recommend/decide very little; rather my job is to facilitate your discovering the solution." This is not always lived up to, but an aspiration strived for.

The Top 10 Sales Mistakes

As I've done before, since lists are so popular, I thought I'd share yet another with you: the most commonly seen errors in managing a sales force. As with many lists, this won't include all (there are more than 10), and my order will probably differ from yours. The hope is that it will foster ideas & provide assistance as you look at your own operation.

1) Paying your sales people on volume instead of value added profit. Great sales people are creative; they will follow the recognition and money. If you not only ask them to sell more profitably, but pay & recognize them accordingly, your results will be stunningly better.

2) Pricing job types or customers identically. First know your core competencies, what you do best, and then price to bring those jobs in. This goes for customers as well; you make more money with customers who value what you provide & cooperate.

3) Having a less than effective or non-existent training program. As a guideline, it should be written, & at least a syllabus directed program that provides a smooth transition into the company & its culture, which many overlook. Obviously, each person must be taught according to their background & experience level, ideally from members of the sales force as well as management. Field sales calls MUST be made together with senior sales persons as well as managers, and at least weekly 1 to 1's conducted with each sales person (ongoing) to assist in their development.

4) Not providing realistic forecasting. Most organizations forecast, but rarely do it right. The disjoints usually involve the sales people not liking it (they'd rather DO than PLAN), or management "beats up" sales for not forecasting high enough. What happens next is that sales tells management what they want to hear, & everybody suffers as a result.

5) Failing to have concrete and realistic goals. Given the challenge, a good sales force will rise to the occasion. Without knowing what's needed or expected, Sales will be a rudderless ship.

6) Lack of measuring and rewarding for outstanding performance. What is measured will be done. We as people in general, and sales people in particular, will rise to a challenge. And we like to be recognized for getting it done. Recognize & celebrate.

7) Avoiding "Fierce Conversations" that hold each person accountable. In many companies, this should be at the top. Some confuse having an employee oriented organization with one by a "mister nice guy". Constructive & caring criticism is a gift; use it often.

8) Allowing an imbalance (either way) between operations and sales on delivery requirements. I often hear, "We are a Sales run company", or "Operations always calls the shots"; each is not a good thing. Balance & consensus should rule, but this doesn't happen without a planned & fair approach coming from the very top.

9) Asking your sales manager to sell as well as manage. In small companies, or in certain circumstances, this needs to be done, but should not be permanent. What happens most of the time, is that training and development of the sales force suffers, especially if the manager is only paid on their sales volume.

10) Always believing your customers when they tell you your price is too high and/or your ship date can be beat. As much as we want to give customers what they want, this is a different issue. On matters of price & delivery, and sometimes even quality, a more traditional customer will try to force your performance by thinly-veiled problems. Play the game if they do, and know why it's being done.

11) Mixing sales force types within the same division or company. Considering a direct sales force (your employees), independent reps (self-employed, but loyal to you for your product line), & brokers (self-employed, loyal to no one), it is a real challenge to have a mixture, let alone all three. Rarely, I believe, are brokers the answer. They generally operate on a price basis, and often add little value, which erodes profits, and makes for more fluctuation in production levels. But mixing them is usually disastrous because they compete with each other and confuse customers.

OK, so there are eleven! More to stimulate your thinking. Whatever the relevance of each, the process of discussing them will be a positive venture.