VANTAGE ASSOCIATES, INC.

1. Strategy Structure Vision Systems Culture VANTAGE ASSOCIATES, INC. MANAGEMENT CONSULTANTS STRATEGIC PLANNING Transforming Vision Into Action © Vantage Associates, Inc. http://vantageassociates.com

2. Integrated Approach Culture Vision Strategy Structure Systems Culture

3. Strategic Planning “If you do what you have always done,you will get what you have always gotten-- or less.”

4. Strategic Planning • Planning is a tool for managing the change every organization must undergo • Your planning process should recognize the key ingredients to successfully manage change

5. Requirements for Successful Change COMMON VISION

6. Requirements for Successful Change COMMON VISION + MANAGEMENT COMMITMENT

7. Requirements for Successful Change COMMON VISION + MANAGEMENT COMMITMENT + SPECIFIC ACTION STEPS

8. Requirements for Successful Change COMMON VISION + MANAGEMENT COMMITMENT + SPECIFIC ACTION STEPS SUCCESSFUL CHANGE

9. The Planning Process Should: • Manage change proactively • Improve trust and communications • Effectively allocate limited resources • Increase focus • Provide a catalyst for action • Improve organizational performance

10. Planning Principles • Purpose is to improve performance • Evolutionary process constantly improving • Planning occurs throughout the year • Value is in the process, not the document • Uncertainty is the reason for planning

11. Planning is for big corporations An implicit plan is okay Things are changing too fast Our budget is all we need The president does all the planning A plan reduces flexibility We’ve been successful without a plan Planning is the hard part Planning is a one-time job We don’t have the resources to plan Ten Planning Myths

12. Three Basic Questions A Strategic Plan answers three basic questions about the organization

13. 1: Where Do We Want To Go? Strategic Planning Process -Three Basic Questions Long- Term View

14. 1: Where Do We Want To Go? Strategic Planning Process -Three Basic Questions Long- Term View Situation Analysis 2: Where Are We Now?

15. 1: Where Do We Want To Go? Strategic Planning Process -Three Basic Questions Long- Term View Situation Analysis 2: Where Are We Now? 3: What Must We Do To Close The Gap? Strategy

16. Components of a Strategic Plan • The “Three Questions” are too difficult to answer all at once • Planners break these questions down into small components • These individual components add up to answer the “Three Questions”

17. 1: Where Do We Want To Go? Overview of TheStrategic Planning Process Long- Term View Objectives (Short & Long- Term) ConstituentGroups Mission Goals Values Vision 2: Where Are We Now? Situation Analysis 3: What Must We Do To Close The Gap? Strategy

18. 1: Where Do We Want To Go? Overview of TheStrategic Planning Process Long- Term View Objectives (Short & Long- Term) ConstituentGroups Mission Goals Values Vision 2: Where Are We Now? Situation Analysis Weaknesses Assumptions Opportunities Strengths Threats 3: What Must We Do To Close The Gap? Strategy

19. 1: Where Do We Want To Go? Overview of TheStrategic Planning Process Long- Term View Objectives (Short & Long- Term) ConstituentGroups Mission Goals Values Vision 2: Where Are We Now? Situation Analysis Weaknesses Assumptions Opportunities Strengths Threats 3: What Must We Do To Close The Gap? Key Decisions and Strategies Action Plans Critical Issues Strategy

20. The Planning Pyramid VISION MISSION VALUES CONSTITUENTS GOALS ENVIRONMENTALSCAN ASSUMPTIONS SITUATIONANALYSIS STRENGTHS, WEAKNESSES, THREATS & OPPORTUNITIES OBJECTIVES (SHORT & LONG-TERM)/STRATEGIES CRITICAL ISSUES/ACTION PLANS

21. ANNOUNCE TO ORGANIZATION CONDUCT RESEARCH ANALYZE RESEARCH Strategic Planning Process Phase II Phase I Phase III

22. ANNOUNCE TO ORGANIZATION STRATEGIC PLANNING SESSIONS WHAT WE MUST DO TO CLOSE THE GAP WHERE WE ARE NOW WHERE WE WANT TO GO CONDUCT RESEARCH #1 #2 #3 VISION STRENGTHS STATEMENT OF STRATEGY MISSION WEAKNESSES ANALYZE RESEARCH VALUES OPPORTUNITIES CRITICAL ISSUES GOALS THREATS LONG-TERM ASSUMPTIONS OBJECTIVES ACTION PLANS SHORT-TERM DISTINCTIVE COMPETENCE OBJECTIVES Strategic Planning Process Phase II Phase I Phase III

23. ANNOUNCE TO ORGANIZATION STRATEGIC PLANNING SESSIONS WHAT WE MUST DO TO CLOSE THE GAP WHERE WE ARE NOW WHERE WE WANT TO GO CONDUCT RESEARCH #1 #2 #3 VISION STRENGTHS STATEMENT OF STRATEGY MISSION WEAKNESSES ANALYZE RESEARCH DOCUMENT PLAN VALUES OPPORTUNITIES CRITICAL ISSUES GOALS THREATS LONG-TERM ASSUMPTIONS COMMUNICATE PLAN OBJECTIVES ACTION PLANS SHORT-TERM DISTINCTIVE COMPETENCE OBJECTIVES MONITOR PLAN Strategic Planning Process Phase II Phase I Phase III

24. ANNOUNCE TO ORGANIZATION STRATEGIC PLANNING SESSIONS WHAT WE MUST DO TO CLOSE THE GAP WHERE WE ARE NOW WHERE WE WANT TO GO CONDUCT RESEARCH #1 #2 #3 VISION STRENGTHS STATEMENT OF STRATEGY MISSION WEAKNESSES ANALYZE RESEARCH DOCUMENT PLAN VALUES OPPORTUNITIES CRITICAL ISSUES GOALS THREATS LONG-TERM ASSUMPTIONS COMMUNICATE PLAN OBJECTIVES ACTION PLANS SHORT-TERM DISTINCTIVE COMPETENCE OBJECTIVES MONITOR PLAN Strategic Planning Process Phase II Phase I Phase III FEEDBACK LOOP

25. Participation • Lean toward being inclusive • Consider who is likely to be key to successful implementation • Use the process to build a core management team

26. Strategic Planning • The strategic planning process can be effectively used to: • Generate information • Identify issues • Improve communications • Reinforce culture; i.e., teamwork • Identify possible crisis points • Enhance decision making

27. Strategic Plan CONSTITUENT GROUPS WEAKNESSES VISION Sample Format • ____________________________ • ____________________________ • ____________________________ • ____________________________ • ____________________________ • ____________________________ • ____________________________ • ____________________________ MISSION GOALS OPPORTUNITIES • ____________________________ • ____________________________ • ____________________________ • ____________________________ • ____________________________ • ____________________________ • ____________________________ • ____________________________ VALUES THREATS STRENGTHS • ____________________________ • ____________________________ • ____________________________ • ____________________________ • ____________________________ • ____________________________ • ____________________________ • ____________________________ • ____________________________ • ____________________________ • ____________________________ • ____________________________

28. Strategic Plan CRITICAL ISSUES/ ACTION PLANS CRITICAL ISSUES/ ACTION PLANS (Con’t) ASSUMPTIONS Sample Format ISSUE: _______________________ ACTIONS: • _____________________________ • _____________________________ • _____________________________ RESPON: _____________________ TIMING: ______________________ ISSUE: _______________________ ACTIONS: • _____________________________ • _____________________________ • _____________________________ RESPON: _____________________ TIMING: ______________________ • ____________________________ • ____________________________ • ____________________________ • ____________________________ OBJECTIVES Short & Long Term ISSUE: _______________________ ACTIONS: • _____________________________ • _____________________________ • _____________________________ RESPON: _____________________ TIMING: ______________________ ISSUE: _______________________ ACTIONS: • _____________________________ • _____________________________ • _____________________________ RESPON: _____________________ TIMING: ______________________ 1 YR 5 YR Obj1 Obj2 Obj3 Obj4

29. Benefits of Planning • Communication • Consensus • Commitment

30. Characteristics of High-Performing Organizations • Leadership • Common understanding of mission/purpose • Enthusiastic about mission/purpose • Open communications -up, down, and laterally • High level of trust Teamwork High morale Commitment - sense of urgency Failure and success are viewed as learning experiences

31. Some Obstacles to Corporate Planning • Difficult to predict future - i.e., competitive moves; new technology • Internal resistance • Requires significant resources • Difficult exercise/hard work • Difficult to achieve common understanding • Requires management and supervisory education

32. VANTAGE ASSOCIATES, INC. MANAGEMENT CONSULTANTS Jim Sisson Phone: 879-0501 http://vantageassociates.com