Strategic Planning is one of the most critical business processes for senior leadership and a company’s stake holders. Given the current uncertainty, a strategic plan for 2021 is more critical than ever. Because of that, Group50 is making our strategic planning playbook available to anyone.
Strategic Planning Preparation
- Data Request for current strategy and supporting documents
- Interviews with key stakeholders
- SWOT Analysis of current state
- Review of KPI performance to current strategy
- Evaluate current strategic execution process
- Determine if the company is at an inflection point
- Identify current operating gaps
- Review organizational and cultural gaps
Define MIG (Most Important Goal) Mission, Vision, Values
- Work with stakeholders to define the “future state” and the MIG Revisit current Mission statement, Vision and Values to check for appropriate fit to the future state
- Conduct a PEST Analysis: (PEST Analysis is a simple and widely used tool that helps you analyze the Political, Economic, Socio-Cultural, and Technological changes in your business environment)
- Define the governance model for the company that will be required for its future state based on PEST analysis
Five Forces Analysis
- Conduct a Five Forces analysis on the marketplace, products, services and competitors (Porter’s Five Forces Framework is a method for analyzing competition of a business) – utilize market data such as NPD and other industry reports
Where to Play
- Conduct “white space” analysis to identify unserved markets and new products and services.
- Design “Where to Play” strategies with a focus on markets, distribution channels and competitors based on opportunities defined in the Five Forces analysis.
How To Win
- Design market, product and service strategies to support the “Where To Play” direction
- Create product and service roadmaps to support “Where to Play”
- Do a Lean business analysis
- Conduct a SWOT analysis for each functional area that focuses on Strengths, Weaknesses, Opportunities and Threats related to “Where to Play” and “How to Win” requirements: Finance, Operations, IS/IT, HR, Supply Chain, and others.
- Conduct a SWOT analysis on all market facing activities related to “Where to Play” and “How to Win”: Marketing, Sales, Channels of Distribution, eCom, OMNI Channel, Customer Service, Product Development, R&D
Strategic and Operating Gaps
- Identify strategic and operating gaps from completed analyses (SWOT, Five Forces, PEST, Lean Business) and create a solution roadmap for gaps that need to be resolved in order to meet strategic objectives
- Define functional strategies that support the business strategies for “Where to Play” and “How to Win”
- Create tactics that support closing strategic and operating gaps
- Define strategic and tactical KPI’s that will measure performance to goals and objectives
- Define $’s and resources required to support the business strategy
- Analyze current technology backbone and define information flows and technologies required to support future state
- Define the organizational strategy/structure required to support the business strategy, including leadership requirements over the strategy timeline
Strategic Plan Approval
- Finalize strategic plan and approve
- Define supporting tactics along with appropriate KPI’s that are cascaded throughout the organization
- Align compensation and performance incentives with the company’s strategic objectives
- Create a strategic execution dashboard that will become the review mechanism for management review.
- Consider a cloud based strategic execution software such as Cascade or StrategyWorks for monitoring and managing strategic value creation
- Create a communication program for launching the new strategy
- Create a change management program
- Define the strategic review cadence – Use Agile methods to create monthly review sprints that keep the organization involved.
- Identify influencers in the organization to be part of the implementation of the company’s strategy
We hope you find this useful. Group50 consultants are strategic planning subject matter experts. The following link about our strategic planning practice will provide you more insight.
You may also find our series of articles on Anti-Strategy of interest because they outline what happens when a company doesn’t have a corporate strategy that everyone is aligned to
If you would like a pdf of this playbook, please request it here. If you would like to discuss our virtual strategic planning system, please feel free to call us at (909) 949-9083 or request more information here.