Developing a business strategy and business planning

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Developing a business strategyand business
planning

• Jonathan Kettleborough
• Corollis
• www.corollis.com

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Question

• Which of the following best applies to you?
• I am attending this event because
• a. I am developing a strategy and plan for the
  first time
• b. I have an existing strategy and plan but want
  to make it better
• c. I am taking over someone else's plan and need
  some new thoughts
• d. I have a general interest in the subject area

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Agenda

• Today we will cover
• what are strategies and business plans
• why strategies and business plans fail
• the need for new, fresh approaches
• planning processes
• research tools
• writing the strategy and plan
• monitoring and updating strategies and plans
• conclusions

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Todays process
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• Strategy doesnt come from a calendar-driven
  process it isnt the product of a systematic
  search for ways of earning above average profits
  strategy comes from viewing the world in new
  ways. Strategy starts with an ability to think
  in new and unconventional ways.
• Gary Hamel
• consultant, academic and author

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so, what do you think a strategy and business
plan are?
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a strategy is about defining where you need to
go
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a business plan is about making sure you get
there
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Types of strategy and business plans

• Strategies and business plans can exist at
  different levels
• corporate
• business unit
• operational
• In this session well be concentrating on
  corporate strategies and business plans

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why do you think that strategies and business
plans fail?
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Question

• Please consider the following
• Why do you think that most corporate strategies
  and business plans fail?
• they are not linked to corporate abilities
• they are attempting to deliver unrealistic goals
• they are not believed by the organisation or
  staff
• d. they rely too much on past successes

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believe it or not, each of the previous options
is a recipe for failure!
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Key components of failure
inability to escape the past inability to
invent the future
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Different approaches
you need to approach your strategy and
planning with new eyes and ears
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Thinking differently

• Effective strategies and plans demand new ways of
  thinking
• focus on clients at all times
• think projects, not tasks
• lead, dont follow
• everything no matter how small is critically
  important
• never compromise
• make an impact
• think external not internal
• build the best teams

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so, what do you think makes the foundations of
a great strategy?
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Starting your planning
V A S T
vision
aims
strategies
tactics
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Vision and Values

• Vision
• what the organisation is aiming for
• clear, unambiguous and achievable eventually
• Values
• underpinning beliefs
• should permeate throughout the organisation
• understood and acted upon

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Knowing whats important
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what do you think are the key drivers that
impact businesses today?
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Key drivers

• Some of the key drivers for major companies are
• cycle time
• timeshifting
• logistical costs
• reskilling
• speed of delivery
• convenience

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Strategic research tools

• You may wish to use some of the following
  strategic research tools
• SWOT analysis
• Force Field analysis
• Boston Box
• PEST analysis

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SWOT
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Force Field Analysis
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Boston Box
Markets
Existing New/related
Products
Existing New/related
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PEST
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Strategic objectives

• There are essentially four strategic objectives
• build
• hold
• harvest
• divest

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Strategic objectives

• Which of the following are ideal for long-term
  strategic focus?
• technology
• products
• customers
• research
• core competencies

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Customer focus

• Customer focus can deliver the following key
  results
• keeping customers 50 longer or more
• having 20 - 40 lower marketing costs
• having 7 - 12 higher return on sales
• having 7 - 17 higher net profits

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Customers

• Here are some customer facts
• profits can be boosted by 100 by retaining 5
  more customers
• it costs 5 times more to attract new customers
  than to retain existing ones
• only 4 of unhappy customers complain - 96 go
  elsewhere
• if a complaint is resolved, 70 will do further
  business with you

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Preparing to plan

• Consider all resources at your disposal and how
  best to use them
• people
• financial
• revenue budgets
• capital budgets
• other sources
• physical
• marketing
• IT
• intangible
• reputation
• intellectual property

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Writing the Strategy and Plan

• Key areas to include in your strategy and plan
  are
• Strategy
• business vision
• strategic direction linked to research
• competitive analysis
• Business plan
• key business drivers
• service offering the response to key drivers
• change issues
• performance measures and key performance
  indicators
• business development/marketing
• operational plan
• financial plan
• people plan

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Allocating resources

• You cant do it all, so you may find the
  following of use
• PIER model
• performance improvement
• experimentation
• research
• Applying resources to PIER
• performance improvement 85
• experimentation 10
• research 5

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Monitoring and updating your plans

• Some of the issues to consider are
• strategies and business plans are not fixed
• revisit and refresh often
• compare and measure
• remain objective
• use reviews as organisational learning

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Conclusions

• So to conclude our session today
• strategy and planning is vital for success
• think outside the box
• think customers, think external
• research, research, research
• plan, act, review, revise

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Question

• Having attended this session, do you feel you
  now have a better understanding of the issues and
  approaches of strategy and business plan
  development?

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Any questions?

• Before you go
• this session will have hopefully answered some of
  your questions and no doubt raised others.
• with this in mind, what else would you like to
  discuss?

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Contacts

• Key contact details
• w www.corollis.com
• e jonathan_at_corollis.com
• t 01606 892011
• f 01606 892012
• m 07812 163004

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