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Strategic Planning for RESULTS
Best practices based on the direct observations
of thousands of RESULTS.com client firms
Presenter: Stephen Lynch
Role: Head of Strategy & Consulting at RESULTS.com
Email: [email protected]
Linkedin: linkedin.com/in/stephengeoffreylynch
Slides: results.com/slides
Software Demo: results.com/insurance
“The digital era will dwarf what occurred in the information era.
It’ll be a brutal disruption, the majority of companies today will not exist in a meaningful way
10 to 15 years from now.”
“It is not the strongest who survive, nor the most intelligent,
but the ones most responsive to change”
“You need to operate with one eye focused on the short-term, and one eye focused on the long-term.
Short-term planning is about improving your current business, & meeting the needs of today’s customers.”
Often, this demands bold, disruptive strategic moves”
“Long-term planning is not performance improvement. It is about forgetting the past and reshaping your
business to compete more effectively in the future.
"If you’re planning over a 3 year time horizon, you're competing against a lot of people.
But if you're willing to invest on a 7 year time horizon, you're competing against a fraction of those people, because very few companies are willing to do that.
We can't realize our potential as people or as companies unless we plan for the long term."
“You need to clearly explain the top 3 things the
company is working on.
If you can't,
then you're not leading well”
Who are your Key Competitors now? (the “players”) What moves are they likely to make? Any Threats? Opportunities?
( Industry life cycle: introduction > growth > maturity > decline / Industry growth rate / Industry profitability / Number of competitors / Market share / Capital requirements / Globalization / Commoditization / Cost advantages / Economies of scale / Friendly vs. Aggressive competition)
List your answers below:
What New Entrants could disrupt you? Any Threats? Opportunities?
( Industry barriers / Capital requirements / Learning requirements / Access to supplies / Access to distribution / Performance vs. incumbents /
Perceived differentiation in customers’ mind / Loyalty to incumbents / Switching costs / Retaliation by incumbents / “Innovator’s dilemma”)
List your answers below:
What Substitute products / services could disrupt you? Any Threats? Opportunities?
( Technology changes / Industry structure changes / Availability of substitutes / Performance of substitutes / Perceived differentiation in
customers’ mind / Switching costs / Customer desire to seek out alternative solutions to satisfy their need)
List your answers below:
Who are your Key Suppliers? What moves are they likely to make? Any Threats? Opportunities?
( Cost of supplies / Negotiating power of suppliers / Access to alternative sources of supply / Switching costs /
Forward integration – supplier becomes competitor)
List your answers below:
“An excessive customer focus prevents firms from creating new markets
and finding new customers for the products of the future.
They unwittingly bypass opportunities.”
“Asking customers what they want is a systemic flaw. Customers can’t say what new product would be
desirable three years from today. New ideas are generated by imagination, risk, trial &
error by the producer.”
Strategic Focus
What do your target customers value most?
Value Discipline
(Generic Strategy)
Company examples
Low cost
Consistency Speed
No hassles
Operational Excellence
Southwest Airlines,
Walmart, Fedex
State of the art Products and Services
Product Leadership
Apple, Gillette, BMW
Customized products Personalized solutions
Customer Intimacy
Zappos, Nordstrom,
Ritz Carlton
Who are your Key Customers? What moves are they likely to make? Any Threats? Opportunities?
( Customer demographic and psychographic description / Power to dictate prices or terms / Ability to influence other customers / Customer reviews / Perception of differentiation between vendors / Loyalty / Switching costs / Backward integration – customer becomes competitor)
List your answers below:
What political factors / laws / regulations are likely to impact you? Any Threats? Opportunities?
( Industry specific regulations / political spectrum left vs. right / political stability / laws / taxes / trade policy / wars / environmental issues /
health / safety / consumer laws / employment laws)
List your answers below:
What economic factors / changes in buying behaviors are likely to impact you? Any Threats? Opportunities?
( Economic growth / interest rates / exchange rates / inflation / availability of credit / investor interest in your industry / discretionary spending
changes in customer purchasing habits / use of debt and leverage vs. more frugal spending / new forms of payment)
List your answers below:
“We live in a culture that discourages empathy.
A culture that too often tells us our principle goal in life is
to be rich, thin, young, famous, safe and entertained”
STANDARDIZED
Industrial age
work
CUSTOMIZED
Network age
work
LABOUR:
obedience
systems
processes
productivity
TALENT:
initiative
innovation
creativity
passion
Management 1.0
Management 2.0
“We are going to have to reinvent management; the way we lead, we plan, we organise, we hire, we motivate...because today, organisations are facing
a set of challenges that are truly unprecedented"
Baby Boomer
1946 -1964
Generation X
1965 - 1980
Millennial / Gen Y
1981 - 2000
Key life influences Cold War nuclear threat, NASA
moon landing, Vietnam, Civil
rights, Hippie culture
AIDS, Divorce, MTV, Cold War
ending, Personal computer,
Microsoft
Internet, Always connected,
Share everything online,
Facebook, Apple and Google
Work environment Long hours, Office only Formerly Office, Increasingly
working from home
Office, Home, Wherever,
Desires flexible work hours
Work ethic Workaholic, Quality focus,
Team player
Clear direction, Get tasks done,
Self reliant, Free agent
Entrepreneurial, Variety,
Multitasking, What’s next?
Management style Hierarchy, Chain of command Everyone should manage
themselves, Challenge people
Collaboration, Consensus
Personal Motivators Salary, Job title, Feeling valued
and respected
Money, Freedom, Break the
rules and do it your own way
Meaningful work,Maintain
personal life, Training, Mentoring
Mentoring Does not like feedback. Does
not take negative feedback very
well
Does not think feedback is
necessary. Will ask for it they
want it
Wants frequent management
feedback, Feedback on demand
at the push of a button
Internal
communication
Face to face meetings focused
on process, Memos
Face to face meetings focused
on results, Emails
Face to face participative
discussions, Emails,
Collaboration software
Client
communication
Face to face, Phone Face to face, Phone, Email Email, Social Media, Instant
messaging
Career Goals Climb the ladder at one
company, Job security
Build transferable career with
variety of skills & experiences,
Build a business.
Build several parallel careers or
businesses simultaneously
What social factors / trends / attitudes / behaviors are likely to impact you? Any Threats? Opportunities?
( Demographic trends / career attitudes / health issues / environmental concerns / communication styles / social behaviors / online behaviors /
media consumption / cultural differences / generational differences / income equality / society’s evolving attitudes, values & beliefs)
List your answers below:
What technological factors / trends / are likely to impact you? Any Threats? Opportunities?
(New technologies / Rate of technology adoption / Impact of internet and mobile / Social media / New devices & interfaces / Jobs replaced by
technology / Business models disrupted by technology)
List your answers below:
“Many managers do not understand the importance of having a clear strategy.
Strategy is about making trade-offs.
The essence of strategy is choosing what NOT to do.”
“You need to clearly explain the top 3 things the
company is working on.
If you can't,
then you're not leading well”
What are the top 3 long-term strategic moves to position your firm for future industry success? (will be implemented within the next 3-5 years)
3-5 Year Strategic Move Person Accountable
1.
2.
3.
★ Research your early adopter customers ★ Subscribe to thought leaders who comment on industry trends ★ Attend industry conferences ★ Learn from other industries - peer networks ★ Conduct thorough industry analysis at least every 12 months
○ Porter’s 5 Forces + PEST ○ Survey your staff to get their input
★ The questions remain the same. The answers keep changing ★ Strategy requires tradeoffs. What are you NOT going to do? ★ Sniff Test - Would doing the opposite also be a valid strategy? ★ Review strategy every quarter - does it still make sense?
3 to 5 yr Strategic Moves - best practices
“However beautiful the strategy, you should occasionally
look at the results”
“However beautiful the strategy, you should occasionally
look at the results”
Strategic Planning for RESULTS
Best practices based on the direct observations
of thousands of RESULTS.com client firms
Presenter: Stephen Lynch
Role: Head of Strategy & Consulting at RESULTS.com
Email: [email protected]
Linkedin: linkedin.com/in/stephengeoffreylynch
Slides: results.com/slides
Software Demo: results.com/insurance