Strategic Planning

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Strategic Planning

• Defining and Creating an Exceptional Company
• Phillip Rosebrook JR, CR
• Business Mentors

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Imagine

• 1 year
• 3 years
• 5 years
• 10 years

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Planning to Fail

• What are you doing substantially different this
  year
• Are you experiencing the same day
• Life is a series of choices - so is your business
• There is very little that you have to doYour
  position is the result of your plan or lack of

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Proactive Businesses

• Synergistically working toward shared destination
  
• Lack of plan forces subjective reactive
  decisions

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What You Want to be When You Grow up?

• Benefits
• Communicated
• Measured
• Implemented
• Coached
• Celebrated
• A comprehensive Approach

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Your Business is Not about Jobs or Accounts

• Big picture framework
• Details paint the picture
• Predictable decisions

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Components of an effective plan

• Destination
• Partnership alignment
• Vision
• Strategic Goals
• Financial and objective measurements

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Plan Components

• Cash plan
• Personnel plan
• Operating budget
• Staff development
• Marketing action plan
• Plan review and realignment

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Destination

• Owner motivations
• What is truly important to you?
• What does it look and feel like - more detail the
  better
• When things are working well

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Partnership Alignment

• Values
• What are you working for?
• Imagine your life in 10 years
• Are you on the same page
• Job descriptions
• Compensation
• Skills and needs
• Exit plan and strategy

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Vision

• People want to be a part of something bigger
• More clearly defines destination
• Easily communicated to your staff
• Potentially more subjective than goals
• How are you perceived

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Strategic Goals

• Core goals about 5 total
• Goal definition
• Longer term big picture with short term component
  
• Focus on core business activities and needs.

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Modeling your Organization

• Production capabilities
• Gross and net margins
• Key operational expenses
• Capital requirements

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Financial and Objective Measurements

• In order to effectively manage you need to have
  effective measurements.
• Financial understanding required
• Dynamic measurements needed
• Objective measurements prevent subjective
  decisions
• Roadmap to your destination
• Individual, team, departmental expectations
• Enables easy performance management
• Allows you to model your company
• Core of effective management

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Cash Planning

• Understand the turn on receivables and how to
  turn revenue to cash
• Funding Options
• Internally funded
• Bank or other funding

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Personnel Plan

• Hire to your weaknesses
• Look to your business model
• Financially justify each position
• Explore profiling to manage fit

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Operational Budget

• Start with goals and build backwards
• Expectations
• Marketing - 2-5 of revenue
• Sales and production - less than 10
• Total overhead - 25-40
• Equipment, vehicles, facilities need to be
  justified financially
• Rent, lease, own?

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Staff Development

• Formal training - plan training activities and
  opportunities - strategic not reactive
• Ongoing internal training program
• Scholarships and outside oportunities
• Upward mobility develop a deep bench

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Marketing Action Plan

• First step is goal setting
• Match actions to goal acheivement
• Set budget based on expectations - 1.5 -5 or
  revenue
• Team approach not department
• Sales-based culture
• Measure and reinforce
• Create a strong online presence

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Plan Review and Realignment

• Bump into - review often
• Market conditions
• Quarterly review
• Annual planning

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Implementation Action Plan

• Planning is good - Execution is essential
• Unwrap and plan and prioritize
• Strong communications
• Short term victories with long term focus
• Expectations, modeling and coaching
• Enjoy the journey
• Plan and personnel assessments
• Dont be afraid to make adjustments

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Constraints of Growth

• Organizations are limited not by strengths but
  greatest weaknesses
• Plan needs to address and shore weaknesses
• Avoid hiring to strengths
• Make your plan realistic
• Cash considerations

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Effective organizations

• Proactive
• Strong leadership
• Balanced approach
• Clear communications
• Coaching and celebration

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Adaptation

• Maintain focus
• Things change
• Market conditions
• Cash flow
• Goal when things slow

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Managing Changes

• COMMUNICATION
• What stays the same
• Strategically plan the changes
• Create contingencies
• Know when to walk away from your plan
• LEADERSHIP

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Strategic Plan Summary

• Begin with the end in mind
• If you are not in control of your company -
  someone else is
• Proactive planning creates synergy
• A company or a job?
• Make your time count

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Thank You

• Phillip Rosebrook JR, CR
• Phillip_at_businessmentors.net