How to build a better strategic plan
Download as PPT, PDF3 likes1,409 views
The document provides an overview of DVIRC's strategic planning services to help clients grow their business value through increased sales, profitability, and execution success. It outlines DVIRC's strategic planning process which includes defining the current state, vision, gaps, and policy deployment matrices for the first year. The process is designed to answer key strategic questions and create actionable implementation plans through follow-ups over the next year.
How to build a better strategic plan
- 1. Delaware Valley Industrial Resource Center Strategic Planning Service Overview DVIRC 2905 Southampton Road Philadelphia, PA 19154 The Navy Yard Building 100 Innovation Center 4801 S Broad St, Suite 100 Philadelphia, PA 19112
- 2. About Our Process: DVIRC’s Strategic Action Plan Has Been Constructed To help Grow Our Client’s Business Value. As such, our plan is designed to help Businesses Experience: Growth in Sales, Growth in Profitability and Success in Execution .
- 3. We Define Business Value As: The most important business metric - the value someone is willing to pay for a business , even if you’re not currently selling your business. A metric ALL owners should focus their limited resources/ investment dollars on toward value building activities.
- 4. We Define the Components of Business Value as… Management, Management, Management Quality & Sustainability of Revenues &Earnings Market Position and Environment Capital Requirements Relative to Cash Flow Quality of Systems and Controls
- 5. Mapping Our Strategic Planning Process:
- 6. Strategy Business Growth Solutions Leadership Development Operational Excellence New Product Planning Export Planning Research Voice ofCustomer Market Validation Market Opportunity User Needs Market Planning& Rebranding Situational Analysis Goals & Objectives Market Strategy & Tactics Implementation Plan Execution Evaluation & Control Sales Support Market Positioning Opportunity Scouting Database Creation Prospect Validation Campaign Design & Outreach Inside Sales Market Feedback 100 Profiled Targets 200 Decision Makers Market Diversification Web Marketing Pay-Per–Click Ads Search Engine Optimization Viral Networking Social Media Architecture Design Development Maintenance Tactical Support Graphic Design Newsletters Email Management Campaign Design & Management Market Launch Database Screening / Creation Prospect Validation Inside Sales Support Sales Training Project Management
- 7. The Roll of Market Research In Strategy In strategic planning it is highly recommended that components of Primary & Secondary Research be included as tools to: Validate Perceived Organizational Strengths Scout Out – Feasible Market Opportunities Call out and/or Confirm Weaknesses & Threats Define Competitive Landscape & Intensity
- 8. Primary & Secondary Research can also help answer common Strategic questions like: Where are we? What do we have to work with? Where do we want to be? How do we get there?
- 9. Research In Strategy Using the right tools at the right time makes our projects more impactful. We keep the following in our Strategic Planning Tool Kit: Primary Research / VOC- Current, Former & Prospective Secondary Research/ Data Analysis Category Analysis/ Boston Matrix Competitive Interviews, Competitive Analysis/ Five Forces International Perspectives on Growth Manufacturing and Technological Resources
- 10. Are there any areas in which our company falls short when compared to other suppliers? What, if anything, we can do to win more of your business? “ They tend to be pretty arrogant, it's their way or the highway, so they are not very customer-oriented. It is not any one individual. It is just their company philosophy.” Rockwell Collins, John Smith, Head Engineer Primary Research In Strategy
- 11. When We Get Started, We Define What We have to Work With …
- 12. BCG Matrix RISING STARS Test equipment Cable and harness assemblies (modular) Small-profile, limited-part, repeatable assemblies (Rajant) Engineering projects (finished goods) CASH COWS Contract manufacturing of fully designed/documented products DOGS Printed Circuit boards (through-hole boards in particular) QUESTION MARKS Labview programming PLC programming Equipment maintenance and upgrades SMT UX-2400 (Rajant job) Eng. service finished product builds Service contracts (particularly small companies with high-tech needs)
- 14. 5 Forces/ Competitive Analysis Supplier Power – Neutral Not insignificant number of suppliers Suppliers generally same size/somewhat larger Service(s) somewhat unique Relatively low cost of changing Barriers to Entry – High Entry requires capital equipment expenditures/significant financial backing Workforce is a blend of skilled, trained engineers/designers and semi-skilled workers Time-consuming (though not that difficult) to establish relationships with customers Technological requirements will bar entry for most Threat of Substitutes – High Cross-product substitution Buyer Rotation Online Bidding Technology Shifts
- 15. We Deliver Key Market Insights The innovative, niche players and those who are heavily financed take market share over those who live day-to-day The Alpha Position is a result of giving the market what it wants faster and better than a rival supplier
- 16. Client SWOT Analysis: Threats Considering the established, high level of customer service/support, new market expansions may leave current customers feeling left behind Key personnel represent much of the company’s strength; the loss of one/more could be catastrophic Growth could place strain on resources/capacity already spread thin Economic uncertainty threatens demand picture across multiple market areas Strengths Depth of experience and expertise enable EFE to engage across a wide range of project types Industry experience across a number of areas; enables EFE to offer meaningful support and understand opportunities Lean enterprise; manufacturing background offers real problem-solving capabilities Program management skills add further value Able to communicate with upstarts and Fortune 500 players Noteworthy quality/manufacturing standard compliance Weaknesses Existed for several years as an “arms-length” supplier; not able to properly exercise partnership capabilities Lack of on-site cleanroom limits manufacturing options with certain industries (semiconductor, etc.) Rapid growth in recent years has limited time to pursue new markets Lack of a focused marketing plan/staff Facility has limited room for growth, some dated equipment Opportunities Partner with regional startup ventures that combine promising growth and complimentary/aligned strengths with EFE’s senior management team Identify industries experiencing onshoring/reshoring; use primary research to select those opportunities that are most promising Leverage design-for-manufacturability skills Medical device, aerospace, and energy storage industries present areas of particular interest (favorable growth outlooks, require high level of engineering ability, key players are located in the region, etc.) Develop/acquire a new product line
- 17. Typical Private Company Issues COMPLETE FOCUS ON THE DAY TO DAY WILL KEEP YOU ALIVE BUT WILL NOT GET YOU ANYWHERE! THE MORE THE BUSINESS DEPENDS ON THE OWNER , THE LESS VALUABLE IT IS. PLANNING IS ONE THING, EXECUTION IS ANOTHER.
- 18. What is Strategic Action Planning? Strategic Action Planning is a disciplined approach to answer the following key questions: Where are you going? Where are you now? What needs to be accomplished? How do we get there?
- 19. Day to Day Objectives Do Better Use normal work systems Processes already exist Some improvements needed Customer Driven Breakthrough Objectives Do Different Normal work systems won’t do the job Adequate processes don’t exist New ways need to be discovered Exceed customer needs Better than competitors Leader not follower Creating Breakthrough Transformation
- 20. Benefits of the Strategic Planning Process Creates a vision of the future that inspires Develops buy-in and accountability from key leaders. Provides professional, written plans to all team members that are easy to modify when the situation changes. Yields an implementation plan that helps communicate the plan to others and serves as a guide to monitor progress.
- 21. Process Overview: What to Expect The Future State (1/2 day) Develop the Vision Themes and Vision Identify the Major Changes Desired between now and 2014 Discuss The Responsibility of Leaders
- 22. VISION QUESTION IT IS DECEMBER 2014, AND WE ARE VERY PLEASED WITH THE SUCCESS OF THIS BUSINESS. WHAT DOES IT LOOK LIKE AND HOW DID WE GET THERE?
- 23. Vision Specifics Today 2014 Cash Flow Sales Productivity Assets
- 24. Process Overview: What to Expect Current State and Gap Analysis (1 day) Do an analysis of Strengths, Weaknesses, Opportunities, Threats Identify Core Competencies What you do today and for who Identify and prioritize gaps between current and future state
- 25. 2 1 Gaps 2 2 Launch China – Jim/Chris 6 6 6 Management Direction & Planning (business focus) 1 2 Generate Cash Reviewing Overhead and Setting Short Term Goals – Nina/Chris 3 1 1 Cash Infusion –Tony/Nina Broaden SRS Markets – Jim/Tony 4 3 3 Sales and Marketing Plan – Jim/Tony 4 5 4 5 5 Find new customers Develop new products and color services 4 Determine Open Capacity (machine utilization) 5 6 Improve RM Sourcing Develop a Lean Culture 3 Develop a Strategy for Building Expansion Get Away from Batching Ecofast
- 26. Process Overview: What to Expect Build Policy Deployment Matrices for Year One. (Three days)
- 27. Process Overview: What to Expect Several Hours Every Six Weeks for One Year: Follow-up that the plans developed are being implemented Make Adjustments as Necessary!
- 29. Scalable. Trainable. Easily Outsourced. Rapidly Expanding. Value Priced By Design. Scopes Out Opportunities. One of the best ways we have found to quickly engage clients at senior levels and remain engaged with them throughout their growth planning. In Closing; Our Strategic Services Are...
- 30. Thank You!!!