Strategic Planning Process Overview and Talking Points

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Overview of the Planning Process

CSB19GDVQL © 2008 Corporate Executive Board. All Rights Reserved. 2

Structuring the Strategy Process

Strategic planning is the periodic resetting of mid-to long-term strategic direction and priorities; the process focuses on key issues and the specifi c initiatives needed to attain long-term strategic goals.

A Valued Activity

McKinsey Quarterly SurveyExecutive Responses, 2006

Very Signifi cant

44%

Somewhat Signifi cant

29%

Extremely Signifi cant

14%

Slightly Signifi cant

10%

Not at all Signifi cant

3%n = 796.

Almost 60% of executives in a recent survey confi rmed that the strategic planning process plays a highly-signifi cant role in developing strategy.


Key Components

Establishing Guidelines and Strategic Direction– Who should be involved with the process and what are our strategic aims?

Conducting External and Internal Analysis– What are our competitors doing and how do current market trends infl uence

the business?– What do our customers need and what does our current portfolio look like?

Formulating Corporate Strategy and Target Setting– What goals do we set for ourselves and how do we intend to get there?

Creating and Aligning BU Strategy– What strategies must our BUs pursue to meet corporate objectives?

Budgeting– How can we align our budget and operating plans with corporate strategy?

Communicating Strategic Plans– How can I build internal clarity and support to gain momentum for execution

of study?


Illustrative

A Calendar-Driven ProcessAnnual Strategic Planning Process Map

Time Frame Q1 Q2 Q3 Q4

Stage

Key Outputs

Process steps for upcoming cycle

Evaluation of previous year’s performance; lessons learned

Preplanning dialogues between BU heads and center

Set of assumptions about external trends and threats

Evaluation of internal competencies

Discussion of strategic alternatives

Presentation of strategic plan to board

Planning dialogue between corporate and BU head targets communicated

BU develops individual plan in line with corporate goals

BU adjusts plans based on center’s input

Presentation of BU strategic plan to the board

Central and BU budget created

Hiring and redefi nition of employee roles/responsibilities

Companywide e-mails on strategy objectives

Dashboards created and monitored

Strategy responsibilities cascaded down the line

Establishing Process Steps and Strategy

Direction

Defi ning Corporate Strategy and Setting Targets

Budgeting

Conducting External and Internal Analysis

Formulating and Aligning BU Strategy

Communicating and Executing Strategy


Stage 1—Establishing Process Guidelines

Input

• Preview year’s workplan and strategy

• Overall and BU–specifi c fi nancial results for previous two years

Activities

• Review of previous year’s results in preparation preplanning

• Overall mission/strategic objective reviewed

Output

• Evaluation of performance against strategy, highlighting lessons learned and critical gaps

• Workplan (process steps for upcoming planning cycle)

Sample Tools and Approaches

Responsibilities ChartBusiness Strategy

ProcessComponents Strategy Organization Role

External Industry InternalAnalysis • Reality

testing• Competitive

analysis• World best

practice

• Performance analysis

• Value driver analysis

• Financial analysis

• Support SBU on demand with Fact packs for Business Strategy formulation Strategic models Management cockpit

• Advise SBU continuously on SBU Competitiveness and best practices

Design • Strategy formulation (strategic workshops)• Target setting

• Support SBU on demand with Facilitation of Business Strategy workshops SBU target setting Strategy documentation

• Advise OCE on Decisions regarding identifi ed strategic issues Functional guidance on strategy and operations improvement

Planning • Planning• Scheduling• Prioritizing• Resource allocation• Budget

• Support OCE by Ensuring SBU complies with requirements in

the planning process• Support SBU with Guidelines, templates, and relevant information

(i.e., assumptions, calendar, etc.)

• Maintain Archive of business planning documentation

Approval • Strategy presentation to OCE• Budget presentation to OCE

• Support OCE by SBU strategy and budget acceptance for

approval• Support SBU with: Guidelines, templates, and relevant information


Implementation • Execution• Quarterly Performance Review




Clarifying Strategic Planning ResponsibilitiesOrganizational Requirements For Business Strategy

Process DesignBusiness

Units• BU Strategy Meeting/Workshop

• Update strategic plans and objectives

• Update key technical strategic initiatives

• BU Strategy Board presentation

• Update/review 3 tactical objectives

• Update/review 5-year fi nancial projection (if needed after annual budget is prepared)

Corporate • Kick-off planning process with business units

• Provide standard tools, templates

• Update 5-year fi nancial projection

• Partner business unit leader and facilitate strategy development

• Facilitate strategic process; provide standard strategy toolkit to simulate strategic insights

• Consolidate 5-year plan

Milestones • BU strategy meeting/workshop

• BU Strategy Board Reviews

• Publish 5-year “Run the Business” Plan

Strategy Planning Process Design“Run the Business” Strategy Development Process

Palladio Corporation

July August October NovemberMay

*

* Pseudonym.

Objective: Document lessons learned, organizational goals, planning process steps and responsibilities.

Milestones

Preplanning dialogue between BU and Center

Meeting between strategist and senior executives to discuss previous year’s performance and pitfalls to avoid

Establishing Process Guidelines

1 Internal/External Analysis

Defi ningCorporate Strategy

Formulating BU Strategy Budgeting Communicating

the Plan


Business Units

• BU Strategy Meeting/Workshop

• Update strategic plans and objectives

• Update key technical strategic initiatives

• BU Strategy Board presentation

• Update/review 3 tactical objectives

• Update/review 5-year fi nancial projection (if needed after annual budget is prepared)

Corporate • Kick-off planning process with business units

• Provide standard tools, templates

• Update 5-year fi nancial projection

• Partner business unit leader and facilitate strategy development

• Facilitate strategic process; provide standard strategy toolkit to simulate strategic insights

• Consolidate 5-year plan

Milestones • BU strategy meeting/workshop

• BU Strategy Board Reviews

• Publish 5-year “Run the Business” Plan

Strategy Planning Process Design“Run the Business” Strategy Development Process

Palladio Corporation

July August October NovemberMay

*

* Pseudonym.


Business Strategy Process

Components Strategy Organization RoleExternal Industry Internal

Analysis • Reality testing

• Competitive analysis

• World best practice

• Performance analysis

• Value driver analysis

• Financial analysis

• Support SBU on demand with Fact packs for Business Strategy formulation Strategic models Management cockpit

• Advise SBU continuously on SBU Competitiveness and best practices

Design • Strategy formulation (strategic workshops)• Target setting

• Support SBU on demand with Facilitation of Business Strategy workshops SBU target setting Strategy documentation

• Advise OCE on Decisions regarding identifi ed strategic issues Functional guidance on strategy and operations improvement

Planning • Planning• Scheduling• Prioritizing• Resource allocation• Budget

• Support OCE by Ensuring SBU complies with requirements in

the planning process• Support SBU with Guidelines, templates, and relevant information

(i.e., assumptions, calendar, etc.)


Approval • Strategy presentation to OCE• Budget presentation to OCE




Implementation • Execution• Quarterly Performance Review




Clarifying Strategic Planning ResponsibilitiesOrganizational Requirements For Business Strategy


Stage 2—Internal/External Analysis

Input

• Recent Survey data

• Input from external consultants

• Industry/market analysis

Activities

• Collect and review data on industry trends

• Conduct and coordinate external market research

• Scenario planning

Output

• Preliminary list of strategic alternatives

• Set of assumptions about internal strengths and weaknesses and external trends

Driving Force Analysis

Business EnvironmentSummary

Objective: Determine external environment implications and internal competencies to create consensus on assumptions, trends, and viable strategy alternatives.

Milestones

Briefi ng book on analysis sent to senior management

Summit on business outlook


Internal/External Analysis



the Plan 2


Driving Forces in the World Injectable Drugs MarketWexler Company*—U.S.-Based Global Pharmaceutical Firm

* Pseudonym, case disguised.

Strategic IssuesThreats and

Opportunities

CompetitiveCompetitor using cash fl ow from international markets to fund initiatives “in-play” in the United States

TechnologicalImpact of new orally administered treatments on existing core injectable product line

DemographicIncreased longevity, improved diagnostic capabilities, adoption of western dietary habits will increase treatment demand

EconomicPresence of treatment on third-party payer approved list determines consumer willingness to pay premium for convenience

OrganizationalPrimary decision making regarding treatment options moving away from traditional marketing channel contacts (i.e., specialists) to third-party payers and primary physicians

RegulatoryDrug approval processes becoming less antagonistic, more cooperative and more partnership-oriented

Driving Forces Defi ned

“Driving forces are the fundamental root causes of issues a company needs to address—economic, technological, organizational, demographic, competitive and regulatory factors in a company’s environment that either constitute threats or create opportunities. Clearly expressed, they make explicit the assumptions key employees have about the problems and opportunities a company faces.”

Professor Clayton M. Christensen Harvard Business School





Driving Forces in the World Injectable Drugs MarketWexler Company*—U.S.-Based Global Pharmaceutical Firm

* Pseudonym, case disguised.

Strategic IssuesThreats and

Opportunities

CompetitiveCompetitor using cash fl ow from international markets to fund initiatives “in-play” in the United States

TechnologicalImpact of new orally administered treatments on existing core injectable product line

DemographicIncreased longevity, improved diagnostic capabilities, adoption of western dietary habits will increase treatment demand

EconomicPresence of treatment on third-party payer approved list determines consumer willingness to pay premium for convenience

OrganizationalPrimary decision making regarding treatment options moving away from traditional marketing channel contacts (i.e., specialists) to third-party payers and primary physicians

RegulatoryDrug approval processes becoming less antagonistic, more cooperative and more partnership-oriented

Driving Forces Defi ned

“Driving forces are the fundamental root causes of issues a company needs to address—economic, technological, organizational, demographic, competitive and regulatory factors in a company’s environment that either constitute threats or create opportunities. Clearly expressed, they make explicit the assumptions key employees have about the problems and opportunities a company faces.”

Professor Clayton M. Christensen Harvard Business School


Stage 3—Defi ning Corporate Strategy

Input

• Evaluation of performance against strategy marketplace

• Preliminary set of strategic alternatives

• Mission statement review

Activities

• Center reevaluates the company’s core competencies and examines opportunities for growth

• Center examines business portfolio

• Presentation of plan to Board of Directors

Output

• Determination of initial growth targets

• Overall strategic plan with goals

• Template and tools for BU guidance

Setting Goals

Growth Strategy Matrix

Objective: Achieve consensus on corporate goals by reviewing historical, peer, and market growth. Align specifi c targets to the appropriate strategy alternative.

Milestones

Presentation of strategic plan to the Board of Directors

Presentation to BUs of plan and discussion on ways to meet objectives





the Plan 3


Core Transformation

New Business Creation

Core Value Maximization

Adjacency Extension

Existing New

Existing

New

Core Value MaximizationInvesting resources in the existing business system and industry.

Adjacency ExtensionPursuing sales opportunities in an unfamiliar industry space that leverages strengths of the existing business system.

Business System• Pricing Model• Value Chain Structure• Leveraged Technology• Applied Intellectual

Property• Brand Attributes• Employee Skill Set

Industry• Customer Base• Competitor Set• Product Offerings

Core TransformationIntroducing an unfamiliar business system that delivers more effective growth within the existing industry.

New Business CreationAdding to the core business by entering an adjacent industry space using an unfamiliar business system.

Setting GoalsMethodologies by Which Participants Set Planning Goals

General Methodology Possible Formats

Benchmarking• Benchmarking versus companies of similar size in similar industries• Benchmarking with a peer group of companies

Ambition• Ambition to reach or remain in a certain peer group of companies• Ambition to gain or retain the leading position in current markets

Analysis of markets or macroeconomic

trends

• Anticipation of major economic or market developments• Methods vary depending upon market situation and other external variables

Business line partnership or internal analysis

• Examination of business projections given current strengths• Ad-hoc discussion of long-term goals over the course of the year• Assessment of objectives necessary for the coming year or years• Negotiation with business units concerning their assessments of appropriate goals• Determination by business unit management; “Healthier businesses tend to set

bold, more creative goals”

Tradition or desire to meet predetermined goals, set by board of

directors, charter, or long-term plan

• A predisposition towards certain performance measures stemming from the corporation’s culture—essentially, an historical preference

• Certain levels of profi tability, market share, ROI or other traditional measures




Core Transformation

New Business Creation

Core Value Maximization

Adjacency Extension

Existing New

Existing

New

Core Value MaximizationInvesting resources in the existing business system and industry.

Adjacency ExtensionPursuing sales opportunities in an unfamiliar industry space that leverages strengths of the existing business system.

Business System• Pricing Model• Value Chain Structure• Leveraged Technology• Applied Intellectual

Property• Brand Attributes• Employee Skill Set

Industry• Customer Base• Competitor Set• Product Offerings

Core TransformationIntroducing an unfamiliar business system that delivers more effective growth within the existing industry.

New Business CreationAdding to the core business by entering an adjacent industry space using an unfamiliar business system.


Setting GoalsMethodologies by Which Participants Set Planning Goals

General Methodology Possible Formats

Benchmarking• Benchmarking versus companies of similar size in similar industries• Benchmarking with a peer group of companies

Ambition• Ambition to reach or remain in a certain peer group of companies• Ambition to gain or retain the leading position in current markets

Analysis of markets or macroeconomic

trends

• Anticipation of major economic or market developments• Methods vary depending upon market situation and other external variables

Business line partnership or internal analysis

• Examination of business projections given current strengths• Ad-hoc discussion of long-term goals over the course of the year• Assessment of objectives necessary for the coming year or years• Negotiation with business units concerning their assessments of appropriate goals• Determination by business unit management; “Healthier businesses tend to set

bold, more creative goals”

Tradition or desire to meet predetermined goals, set by board of

directors, charter, or long-term plan

• A predisposition towards certain performance measures stemming from the corporation’s culture—essentially, an historical preference

• Certain levels of profi tability, market share, ROI or other traditional measures


Stage 4—Formulating BU Strategy

Input

• Strategic planning tools and templates

• BU strategic and operational plans

• Center-defi ned target and goals

Activities

• Center works with individual BUs to develop BU-specifi c targets and goals

• Center compares BU plans to corporate strategy for major discrepancies and adjusts accordingly

• Presentation to the Center for approval

Output

• Individual strategic and operational BU plans

• Adjusted BU plans based on Center’s recommendations

Strategy Discussion Guidelines

Business Unit Strategy Question Template

Objective: Compose BU plan that incorporates product and customer analysis to propose growth strategy alternatives and align BU activities to corporate objectives.

Milestones

BU presentation of plan to center





the Plan 4

Business Unit Strategy Building Blocks TemplateStrategy “Building Blocks”

Sample Questions and Planning Outputs

Aspirations• What are specifi c business unit aspirations in terms of market leadership, share, penetration,

customer loyalty, and brand image?• Three years from now, why are you the company of choice for your various customer groups?

Where to Play• In three years, how will your customer base change? What types of customers will you gain or lose?• In which specifi c markets will you play? In which markets will you not play?• How will the types and mix of products be different from today?• How will distribution channels differ?

How to Win• What are specifi c features of your future products? How do these differ from today?• How do your major competitors look in three years? In which areas are they dominant? Are there

“white spaces”?

Capabilities Required for Success• In which core capabilities must you excel, compared to your competitors?• What processes or functionalities are necessary in three years, but currently present to a lesser

degree, or absent altogether?

Performance Management Systems Required• How will you measure success in creating value for the customer?• What incentive programs are necessary to promote this value creation?

1

2

3

4

5

Planning Outputs• Revenue• Operating margin• Earnings growth• Industry-specifi c metrics

• Customer segments• Geographic areas• Product types• Distribution channels

• Value proposition to target customers

• Sources of competitive advantage

• Functionalities• Critical competencies• Required investments

• Metrics to judge success• Reward systems• Feedback mechanisms

Architecting a Good Strategic Conversation

• CEO and BU head• Other principal decision

makers, typically:– CFO– Group or division head– HR head– Top BU leaders

• Head of strategy as owner of process

• 6–12 total, must be capable of real discussion

Who

• Annually—timing linked to overall corporate calendar

• Half- to full-day per BU

• BU site if possibleWhere

When

• Mid- to long-term strategy• Fact-based analysis• Not

– Short-term fi nancial performance

– Annual operating planning– Budgeting or investment

decision making– All discussed elsewhere

• Intense BU-owned preparation

• Supported by strategy group; but not overly “templated”

• Mandatory prereading• Real discussion, not “dog

and pony” slide show• Constructive challenge,

not “gotcha”

How

What

May



Business Unit Strategy Building Blocks TemplateStrategy “Building Blocks”

Sample Questions and Planning Outputs

Aspirations• What are specifi c business unit aspirations in terms of market leadership, share, penetration,

customer loyalty, and brand image?• Three years from now, why are you the company of choice for your various customer groups?

Where to Play• In three years, how will your customer base change? What types of customers will you gain or lose?• In which specifi c markets will you play? In which markets will you not play?• How will the types and mix of products be different from today?• How will distribution channels differ?

How to Win• What are specifi c features of your future products? How do these differ from today?• How do your major competitors look in three years? In which areas are they dominant? Are there

“white spaces”?

Capabilities Required for Success• In which core capabilities must you excel, compared to your competitors?• What processes or functionalities are necessary in three years, but currently present to a lesser

degree, or absent altogether?

Performance Management Systems Required• How will you measure success in creating value for the customer?• What incentive programs are necessary to promote this value creation?

1

2

3

4

5

Planning Outputs• Revenue• Operating margin• Earnings growth• Industry-specifi c metrics

• Customer segments• Geographic areas• Product types• Distribution channels

• Value proposition to target customers

• Sources of competitive advantage

• Functionalities• Critical competencies• Required investments

• Metrics to judge success• Reward systems• Feedback mechanisms


Architecting a Good Strategic Conversation

• CEO and BU head• Other principal decision

makers, typically:– CFO– Group or division head– HR head– Top BU leaders

• Head of strategy as owner of process

• 6–12 total, must be capable of real discussion

Who

• Annually—timing linked to overall corporate calendar

• Half- to full-day per BU

• BU site if possibleWhere

When

• Mid- to long-term strategy• Fact-based analysis• Not

– Short-term fi nancial performance

– Annual operating planning– Budgeting or investment

decision making– All discussed elsewhere

• Intense BU-owned preparation• Supported by strategy group;

but not overly “templated”• Mandatory prereading• Real discussion, not “dog

and pony” slide show• Constructive challenge,

not “gotcha”

How

What

May


Stage 5—Budgeting

Input

• Final corporate and BU operational and strategic plans

• Previous year’s targets and budgeting plan

Activities

• Center and BU determine budgeting cycle

• Finance and Strategy interact to negotiate targets and allocations

• Center allocates total budget to BU

Output

• Central budget and BU individual operating budgets created

Budgeting Timeline Variations

Budgeting Structures

Milestones

Budget created





the Plan 5

Objective: Determine Corporate and BU budgets to align resource allocation to strategic priorities.


Hypothetical Schedule of Relationship Between Cycles

3

Jan Jun Dec

2

1Budgeting Cycle

Planning Cycle

1 Time of start depends on the following factors:• Length of cycle and anticipated time needed until

presentation to board of directors• Seasonal nature of business, and therefore the

availability of seasonal data

Length of cycle varies according to the following factors:• Number of iterations• Complexity of organization (e.g., number of SBUs)

End of cycle, typically coinciding with presentation to the board of directors

2

3

Budgeting StructuresThe three principal methods used to prepare budgets are top–down, bottom–up,

and negotiated, each determining the input and participation levels from budget holders

Attributes Budget Styles

• Budget allowance set at the top with no participation from the ultimate budget holders in the budgeting process

Sets clear and directive targets

Budgets more likely to align with long-term strategic priorities

Buy-in can become an issue if budget holders feel targets are unrealistic

Bottom–Up (“Participative Budgeting”)

Top–Down

(“Imposed Budgeting”)

Negotiated

Strengths and Weaknesses

• Combines elements of the other two more extreme styles

• Budget allowances created on the basis of negotiations between budget holders and those to whom they report

Consolidates knowledge spread across divisions

Inclusive planning process improves communication between managers

Time-consuming process

• All budget holders participate in setting their own budgets

Involvement can positively motivate budget holders

Participation facilitates cooperation, avoiding silos

Mid/junior-level budget holders lack budgeting expertise and strategic vision

Allows unmotivated budget holders to build slack into their budget allowance



Budgeting StructuresThe three principal methods used to prepare budgets are top–down, bottom–up,

and negotiated, each determining the input and participation levels from budget holders

Attributes Budget Styles

• Budget allowance set at the top with no participation from the ultimate budget holders in the budgeting process

Sets clear and directive targets

Budgets more likely to align with long-term strategic priorities

Buy-in can become an issue if budget holders feel targets are unrealistic

Bottom–Up (“Participative Budgeting”)

Top–Down

(“Imposed Budgeting”)

Negotiated

Strengths and Weaknesses

• Combines elements of the other two more extreme styles

• Budget allowances created on the basis of negotiations between budget holders and those to whom they report

Consolidates knowledge spread across divisions

Inclusive planning process improves communication between managers

Time-consuming process

• All budget holders participate in setting their own budgets

Involvement can positively motivate budget holders

Participation facilitates cooperation, avoiding silos

Mid/junior-level budget holders lack budgeting expertise and strategic vision

Allows unmotivated budget holders to build slack into their budget allowance



Hypothetical Schedule of Relationship Between Cycles

3

Jan Jun Dec

2

1Budgeting Cycle

Planning Cycle

1 Time of start depends on the following factors:• Length of cycle and anticipated time needed until

presentation to board of directors• Seasonal nature of business, and therefore the

availability of seasonal data

Length of cycle varies according to the following factors:• Number of iterations• Complexity of organization (e.g., number of SBUs)

End of cycle, typically coinciding with presentation to the board of directors

2

3


Communicating and Executing Strategy

Stage 6—Communicating the Plan

Input

• Final corporate and BU strategic plan

• Next year’s budgets

Activities

• Strategic plans communicated to BU and staff through meetings, memos, and workshops

• Center adjusts incentives to reward employees for performance

Output

• Companywide e-mails and/or voicemails

• Strategic dashboard updated to monitor progress toward strategic and fi nancial goals

Balanced Scorecard

Strategy Communication Cascade

Objective: Increase commitment to strategic plan execution by communicating and cascading strategic objectives and responsibilities throughout the organization.

Milestones

Strategy shifts communicated





the Plan 6

Guarding Against Mixed Messages

Core Message Document 1. Become the most admired growth

company in America• Seven years of remarkable growth• Time to move to the next level• Evolution based on RadioShack’score principles, strategy

2. Realigning organization to heightenour already intensely customer-focused culture• Become a multichannel sales/service company

• Expand customer base

EVP Sales to Divisional VP

Divisional VP to Regional Sales

Managers

Regional Sales Managers to District

Sales Managers

District Sales Managers to Store

Managers

Store Manager to Frontline Staff

Illustrative Communications Documents Cascading Strategy Communication

Monitoring Strategy

Balanced Scorecard

Goals/Targets Strategic Deliverables Outcomes May June July Comments

FinancialGrow the Business Profi tably

Achieve business unit revenue targets Revenue of $X M

Deliver operations effi ciency targets Cost Reductions of $X M

Achieve earnings targets Earnings of $X M

CustomerIncrease Focus on Customer Needs

Continue to strengthen customer satisfaction

Improve Customer Satisfaction by X%

Implement strategy initiatives as planned See following page

Delivery ServiceExceed Industry Service Levels

Maintain Product X best-in-class delivery, and progress Product Y toward industry levels

Line of Business A: XX%Line of Business B: XX%

Line of Business C: XX%

EmployeeContinue to Strengthen Employee Engagement

Invest in frontline resources Expand sales force by X%, and deliver sales training to 100%

Continue to increase employee satisfaction

Improve employee satisfaction by X%



Guarding Against Mixed Messages

Core Message Document 1. Become the most admired growth

company in America• Seven years of remarkable growth• Time to move to the next level• Evolution based on RadioShack’s core principles, strategy

2. Realigning organization to heighten our already intensely customer-focused culture• Become a multichannel sales/service company

• Expand customer base

Illustrative Communications Documents Cascading Strategy Communication

EVP Sales to Divisional VP

Divisional VP to Regional Sales

Managers

Regional Sales Managers to District

Sales Managers

District Sales Managers to Store

Managers

Store Manager to Frontline Staff


Monitoring Strategy

Balanced Scorecard

Goals/Targets Strategic Deliverables Outcomes May June July Comments

FinancialGrow the Business Profi tably

Achieve business unit revenue targets Revenue of $X M

Deliver operations effi ciency targets Cost Reductions of $X M

Achieve earnings targets Earnings of $X M

CustomerIncrease Focus on Customer Needs

Continue to strengthen customer satisfaction

Improve Customer Satisfaction by X%

Implement strategy initiatives as planned See following page

Delivery ServiceExceed Industry Service Levels

Maintain Product X best-in-class delivery, and progress Product Y toward industry levels

Line of Business A: XX%Line of Business B: XX%

Line of Business C: XX%

EmployeeContinue to Strengthen Employee Engagement

Invest in frontline resources Expand sales force by X%, and deliver sales training to 100%

Continue to increase employee satisfaction

Improve employee satisfaction by X%


Lessons to Guide You

Overview of the Planning Process

Designing an Effective

Planning Process

Designing a Robust BU Planning Template

Continuous Strategic

Planning Models

Designing the Planning Process

Conducting External Analysis

Defi ning Corporate Strategy and

Setting Targets

Formulating and Aligning BU Strategy

BudgetingCommunicating and Executing

Strategy

Introduction to Scenario

Planning

Analyzing Industry

Driving Forces

Assessing Competitive Disruptions

Redefi ning the Corporate Mission

Setting BU Growth Targets

Identifying Growth Strategy

Alternatives

Defi ning the Business Model

Aligning M&A Strategy with BU Strategy

Budgeting Drivers and Concepts

Principal Budgeting Methods

Funding Growth Projects

Implementing a Strategy

Communication Workshop

Ensuring Cross Business

Alignment

Using Hoshin Kanri for

Strategic Plan Deployment


p 9: Duke Energy Corporation; Marakon Associates; Working Council for Chief Financial Offi cers research.

p.10: Christensen, Clayton M., Making Strategy: Learning by Doing, Harvard Business Review (November/December 1997): 141156; Wexler Company; Corporate Strategy Board research.

Sources

CSB19GDVQL

Corporate Executive Board

Washington, D.C. • Chicago • San Francisco • London • New Delhi • Sydney

w w w . e x e c u t i v e b o a r d . c o m