Strategic Planning Templates Mission What is our purpose? Values What will govern us? Vision What will we become? Five Year Objectives What is our clear finish line?
Build the Core Customers Define and prioritize market segments based on demand & competitive advantage
Plan
Customers
Competition
Of Offerings f er ing Specify the new or enhanced s product and services offerings. Outline a plan for the development or purchase of those offerings
na Fi
ses ces
People & Culture Outline the talents, passions and cultural strengths to be leveraged to achieve the vision and objectives
Pro
Competition Describe the competition's strategies, strengths, and weaknesses
l ia nc
Processes & Structures Determine how the processes and structures should be engineered to achieve objectives
s
Financial Analysis Determine if financial objectives can meet offering plans
First-Year Planning Develop an action plan for next twelve months to implement the strategies and meet the objectives Align Talents & Passions Understand and align the talents and passions of associates with the plans and objectives
Align
Cascade the Mission, Vision and Objectives Translate, align and cascade the mission, vision and objectives to all levels and among all units Empower and Create Positive Accountability Establish empowerment, reviews, tracking and positive accountability Communicate Listen, involve, celebrate, and share lessons learned
Implement
Desired Results
Strategic Business Unit _____________________
Date Prepared:
Unit _____________________________________
Sponsor:
______________________________________
Tables of Contents
Overview of Planning Worksheet
3-5
PLAN
7-8
Mission, Values and Vision
Five Year Objectives
9-21
Customers
9-11
Competition
12-15
Offerings (Products & Services)
16-19
Financials
Processes and Structures
People
First-Year Plan
ALIGN
7-8
20
21
24 - 29
Align Talents and Passions
Cascade the Mission, Vision and Objectives
24 25-26
IMPLEMENT
27
Empower and Create Positive Accountability
28
Communicate
29
[Date]
·2
Overview of Planning Worksheet This template is designed to help you develop a clear and well thought-out plan for your organization. Moreover, this template helps you to align your people and your units. Finally, it provides tips to endure higher success in implementing the plan. Note that:
Today, 85 percent of management teams spend less than one hour per month discussing strategy An average worker only spends 30 – 40% of their time focused on top priorities of the organization Results from a 1999 survey (that included discussions with 800 training managers) indicate the most pressing issue within organizations is “the effective use of staff” 1999 Fortune cover story of prominent CEO failures concluded that emphasis placed on strategy and vision created a mistaken belief that the right strategy was all that was needed to succeed. –Over 70% of the time, the problem isn’t bad strategy but bad execution A survey of management consultants reported that fewer than 10 percent of effectively formulated strategies were successfully implemented Strategy implementation among most companies is often not aligned among all business units, support units, and employees Opportunities for creating value are shifting from managing tangible assets to managing knowledge-based strategies. Foundational skills and tools needed to successfully manage knowledge-based organizations must center around “focus, alignment and execution.”
Im pl
em
Pla
n
en t
Align
The keys to addressing these and other organizational challenges include: Plan
Align
The ability to link what you’re passionate about delivering with what your customers are passionate about getting
The ability to understand and align the parts the whole to achieve the vision and strategy
Implement The ability to execute and achieve the vision and strategy
[Date]
·3
The following models are the basis for this template
OVERARCHING FOCUS
5-Y e
Values
ar
Mission
Vision
Mission: What is our purpose?
Values: What values will govern us?
Vision: What will we become?
Five Year Objectives: What does the finish line look like?
LAST-YEAR’S ASSESSMENT Customers
Peo ple
Financ ials
Processes
Customers: How are we doing in the marketplace?
Financials: How are we financially performing?
Processes: Have we excelled at the processes we should to achieve our customer and financial objectives?
People: Have optimized the alignment and development of our people to achieve the objectives?
LONG-RANGE PLANNING
n etitio
Pro ces
p Com
ses
Customers
ls
ia nc na
Fi
fe Of
gs rin
Customers: Define and prioritize market segments based on demand and competitive advantage.
Competition: Describe the competition’s strategies, strengths and weaknesses.
Offerings: Specify the new or enhanced product and services offerings. Outline a plan for the development or purchase of those offerings.
Financials: Determine the financials associated with the new or enhanced product & services offerings.
Processes and Structure: Determine how the processes and structures should be engineered to achieve the objectives.
People and Culture: Outline the talents, passions and cultural strengths to be leveraged to achieve the vision and objectives.
[Date]
·4
NEXT-YEAR’S PLAN
Develop an action plan for the next twelve months to implement the strategies and meet the objectives
ESTABLISH ALIGNMENT
Align Talents & Passions: Understand and align the talents and passions of associates with the organization’s plans and objectives
Cascade the Mission, Vision and Objectives: Translate, align and cascade the mission, vision and objectives to all levels and among all units
SUCCESSFULLY IMPLEMENT
Empower and Create Positive Accountability: Establish empowerment, reviews, tracking and positive accountability
Communicate: Listen, involve, celebrate, and share lessons learned
[Date]
·5
Mission, Values, Vision, Five-Year Objectives, Measures
es
Valu
Mea sure
s
Mission
Plan
5 e bj
O ar Ye es iv ct
1.
n sio
Vi
Mission Statement
Describe below what the unit’s purpose or mission is.
Example of Mission Statement We are the Office of the Vice President and Graduate Dean of the University of Texas at Austin. Our mission is to support the intellectual development of the University community in the following ways:
by facilitating advanced degrees through services to graduate students, faculty, undergraduates and programs by providing the community with access to knowledge through libraries, advanced information systems, and museum exhibits and collections by preserving, presenting, publishing and disseminating creative and research works for The University, the world of learning, and the general public
by fostering international educational and research experiences for the University community
[Date]
·6
2. Values Values are those guiding principles that matter most to and govern your company. Describe below what the unit’s values.
Example of Values
Respect - We treat those whom we have dealings as we, ourselves would except to be treated. Teamwork – We work together, effectively in a positive and cooperative manner. Integrity – We are honest. We honor our commitments. We are consistent and fair. Quality – Are products meet high quality standards, so customer safety and enjoyment is maximized Inspiration – We inspire change. We don’t change anybody’s life except our own. We act as a catalyst to give courage to make change.
3. Vision Statement Describe what your unit wants to achieve. Some define vision as the hope or dream around which plans, actions, and resources are focused.
Example of Vision Statement “We inspire change by igniting the power of proven principles so that people and organizations achieve what matters most.“
[Date]
·7
4.
Five-Year Objectives - First Draft
The purpose is to define a clear point of focus, or a finish line to work towards. The steps in developing five-year objectives include: Develop a tentative set of financial and marketing objectives For each objective define “key success factor”
Describe the key strategies and measures for obtaining your vision. (Please note that your efforts to define strategies and measures will be refined as you work through the “Aligning” portion of this planning worksheet.) Vision Element
Measure
Target
By When?
Key Strategy(ies)
Who
[Date]
Target Date
·8
FINANCIALS “To satisfy our shareholders, what financial objectives should we achieve?
mers Custo
Cult ure
Shareholders
Aligning
e
l op Pe
es ss ce Pr
1.
Financial Performance Overview Provide unit’s financial performance overview here FY02 YTD
FY02 Forecast
FY02 Budget
FY01
FY00
FY99
Revenue COS COS % Margin Margin% SG&A SG&A% 2. Financial Performance Variance Analysis Identify reasons for not meeting unit budget estimates Category
Reasons
COS % Variance
Margin % Variance
SG&A % Variance
[Date]
·9
3. Product/Service Mix for FY01 & FY02 Provide unit’s financials by product/service category for FY01 & FY02 Product or Services Categories
Rev. Act.
Rev. ForeCast
Rev %
COS Act.
COS Forecast
COS %
GM Act.
GM Forecast
GM %
4. Product/Services Variance Analysis Provide reasons for variance from budget estimates – as applicable Product/ Service
Category
Reasons
COS % Variance Margin % Variance SG&A % Variance COS % Variance Margin % Variance SG&A % Variance COS % Variance Margin % Variance SG&A % Variance
5. Capital Efficiency Describe how the unit can reduce capital costs (e.g., A/R, Inventory, Property, Equipment) 6. Revenue Identify how the unit can best increase revenue 7. Cost of Goods Sold Identify how the unit can best reduce COGS
[Date]
· 10
8. SG&A Identify how the unit can best reduce SG&A costs
[Date]
· 11
9. Financial Objectives Identify the unit’s financial objectives, measures, targets, and most importantly, the initiatives to meet the financial objectives. (Ensure the unit’s objectives align with the O-SBU objectives.) Revenue Objective
Measure
Target
Initiative(s)
COS Objective
Measure
Target
Initiative(s)
Margin Objective
Measure
Target
Initiative(s)
SG&A Objective
Measure
Target
Initiative(s)
Capital Efficiency Objective
Measure
Target
Initiative(s)
EBITDA Objectives
Measure
Target
Initiatives(s)
[Date]
· 12
CUSTOMERS “To achieve our vision and financial objectives, how should we align with our customers?”
mers Custo
Cult ure
Shareholders
Aligning
e
l op Pe
es ss ce r P
1. Core Competencies Identify the unit’s greatest skills or core competencies 2. Market Overview Provide a description of your market (e.g., population, GDP, GDP growth) and related key market trends (e.g., training, planners, consulting). 3. Competition Overview Identify the key competitors in the market. Describe strengths and weakness of the competitors. Also describe our threats and most importantly our opportunities
Competitor
Their Strengths
Their Weaknesses
Threats to Us
Opportunities for Us
[Date]
· 13
4. Product/Service Category Competitive Analysis For each product/service category, identify the competitive product/service. Also, identify their strengths and weaknesses. Most importantly, describe our threats and opportunities Product/Service Category
Competitor’s Product
Their Strengths
Their Weaknesses
Threats to Us
Opportunities for Us
[Date]
· 14
5. Target Customer For each product/service category identify the most important target customer segment, their needs, the customer measurements we have (or should have) in place, and what our value proposition is. Product/service Category
Target Customer (Segment)
Customer Needs
Customer Measures
Our Value Proposition
6. New Product/Service Ideas What new product/service ideas does your unit have meets customer needs and is aligned with FC’s core competency or business plan. (Note: Refer to the “Product Lifecycle Process” on Pulse to learn more about the product/service development process at FC) NEW PRODUCT / SERVICE IDEAS Title
Description
[Date]
· 15
7. Marketing Strategy Describe generally the unit’s marketing strategy. (This would include a focus on, channels of distribution, pricing, promotional concepts, distribution plans) 8. Customer Objectives Identify unit’s customer objective, and related measures, targets, and initiatives needed to reach the objectives. (Notes: The customer objectives should tie to the financial objectives; also, ensure the unit objectives are aligned with O-SBU objectives.)
There are three customer strategies to differentiate oneself in the marketplace: 1.) Product Leadership, 2.) Customer Intimacy, 3.) Operations Excellence. Generally successful companies excel at one of these three dimensions while maintaining “threshold standards” on the other two. Customer Measure Target Initiative(s) Objectives
[Date]
· 16
PROCESSES To achieve customer and financial objectives, at what processes must we excel?
mers Custo
Cult ure
Shareholders
Aligning
e
l op Pe
es ss ce Pr
Michael Porter claims “activities are the basic units of competitive advantage.” The art of developing a successful and sustainable strategy is ensuring alignment between the organization’s activities and its customer value proposition. The activities of an organization are embodied in the process that comprise its value chain. Kaplan and Norton state there are four sets of processes. They note that companies generally excel at one and maintain thresholds with the others.) These process categories include: o o o o
Innovation Processes Customer Management Processes Operational Processes Regulatory & Environmental Processes Customer Management Processes
Innovation Processes
Invention Product Development Speed to Market Partnerships
Solution Development Customer Service Relationship Management Advisory Services
Operational Processes
Supply Chain Management Operations Efficency: Cost, Quality, Cycle Time Capacity Management
Regulatory & Environmental Processes
Health Safety Environment Social
There are also support processes – which are many of the administrative and overhead functions necessary to support daily operations. It is important to identify the unit’s processes, and to define those processes critical to excel at to satisfy customers. In addition, process should be identified that if improved, can contribute to the financial objectives of the unit.
1.
Identify your Innovation Processes (at a high-level)
[Date]
· 17
Process Type
Process Title
Process Objective
Process Measures
Current Performance
To what extent will excelling at this process help us to achieve our customer and financial objectives? (High, Medium, Low)
Current Performance
To what extent will excelling at this process help us to achieve our customer and financial objectives? (High, Medium, Low)
Identify the Innovation Processes (at a highlevel)
2.
Identify your Customer Management Processes (at a high-level)
Process Title
Process Objective
Process Measures
Identify the Customer Management Processes
[Date]
路 18
3.
Identify your Operational Processes (at a high-level)
Process Title
Process Objective
Process Measures
Current Performance
To what extent will excelling at this process help us to achieve our customer and financial objectives? (High, Medium, Low)
Process Measures
Current Performance
To what extent will excelling at this process help us to achieve our customer and financial objectives? (High, Medium, Low)
Identify the Operational Processes
4.
Identify your Support Processes
Process Title
Process Objective
Identify the Support Processes
[Date]
路 19
5. Process Objectives  Identify processes to target to meet customer and financial objectives
Targeted Process(es)
Process Objective
Measure
Target
Initiative(s)
[Date]
¡ 20
PEOPLE To achieve our vision and objectives, how must we develop our people? Learning & Development Identify the job functions, and needed learning and growth that needs to occur to achieve the vision and objectives of the unit?
Job Functions
Needed Learning and Growth
How important is this to achieve the objectives? (High, Medium, Low)
People Objectives Identify the people related strategic initiatives needed to achieve the financial objectives, meet the needs of the targeted customers, and carry out the processes aligned to the customers.
People Objective(s)
Measure
Target
Initiative(s)
[Date]
· 21
CULTURE To achieve our vision and objectives, how must we align our culture?
What culture must we have to achieve our vision and objectives?
What are cultural barriers we have today?
How can we use our strengths to overcome our barriers?
Culture Objective(s)
Measure
Target
Initiative(s)
[Date]
路 22
ALIGNING
Aligning
mers Custo
Cult ure
Shareholders
e
l op Pe
es ss ce Pr
Review each initiative to ensure that there is a direct cause and effect relationship between initiatives to improved shareholder value Example of “Initiatives – Cause and Effect diagram”
Increase Customer Value
Improve Shareholder Value
Create New Review
New Customers New Markets New Products Increase Customer Value
Cross Selling Improve Cost Structure
Reduce Capital $ Improve A/R Improve Inventory
Invention Product Development Speed to Market Partnerships
Customer Service Customer Solutions Relationship Management
Grow & Improve Image
New Markets Enhanced Marketing Public Relations
Product Development Process Implement WorldClass Product Development Process
Strategic Competencies
Close Skill Gap
Customer Management
Improve Customer Relationships
Improve COGS Improve SG&A Increase Pricing Improve Asset Utilization
Develop New Products
Develop Prepared Employees
Create Process Excellence
Implement WorldClass Customer Service Customer Management Processes
Climate for Results
Strategic Information
Sales & Marketing
Sales Processes Marketing Processes
Create Results Climate
Close Information Gap
Operations
Supply Chain Manufacturing
[Date]
· 23
Identify the priorities & resource requirements of the initiatives Example of “Objectives Table” FINANCIAL OBJECTIVES
Objective
ABC
Measure
Target
Strategic Initiatives
ABC
FTE Req.
Owner
Target Completion Date
Objective
ABC
Measure
CUSTOMER OBJECTIVES Target Strategic ABC Initiatives
FTE Req.
Owner
Target Completion Date
Objective
ABC
Measure
PROCESS OBJECTIVES Target Strategic Initiatives
FTE Req.
Owner
Target Completion Date
Objective
ABC
PEOPLE & CULTURAL OBJECTIVES Measure Target Strategic ABC Initiatives
FTE Req.
Owner
Target Completion Date
ABC
[Date]
· 24
IMPLEMENTING
Assess: Understand and align the talents and passions of associates with the objectives and initiatives
Cascade: Translate and cascade the objectives and initiatives to all levels
Empower: Create the right conditions for people to make their greatest contribution
Account: Institute accountability
Communicate: Listen, involve, communicate, celebrate successes, and share lessons learned
Implementing
ade Casc
Com mun icat
e
Assess
Ac t un co
r we po Em
ASSESS “Understand and align the talents and passions of associates with the objectives and initiatives”
Determine the talents and passions needed to implement the objectives and initiatives
Fully understand the talents and passions of the associates (Note: An organization should have a database of the talents and passion of their associates)
Determine where the best opportunities exist to align the needs of the organization with the talents and passions of the associates
Create exciting opportunities for associates to apply their talents and passions
Example of “Initiatives - Talent and Passion Alignment Spreadsheet” Top Initiatives
Talent & Passion Needs
Candidates
Their Talents
Their Passions
[Date]
· 25
CASCADE “Translate and cascade the objectives and initiatives to all levels”
Mission Vision Values
Casc
Com mun icat e
Assess
Strategic Objectives & Initiatives
ade
Implementing
t un co
Ac
r we po m E
Unit Objectives & Initiatives
Personal Objectives & Initiatives
a.
Translate the Strategic Objectives and Initiatives into Unit Level “Unit Alignment Spreadsheet” Strategic Objectives & Initiatives
Objectives
Measure
Target Q1
Target Q2
Target Q3
Unit Objectives & Initiatives Target Q4
Initatives
Owner
Objectives
Measure
Target Q1
Target Q2
Target Q3
Target Q4
Initatives
FINANCIAL OBJECTIVES Create New Revenue Increase Customer Value Improve Cost Structure Improve Asset Utilization CUSTOMER OBJECTIVES Create Compelling New Products Improve Customer Intimacy Grow & Improve Image PROCESS OBJECTIVES Implement World-Class Product Development Improve Customer Management Processes Improve Sales & Marketing Processes Improve Operations Processes PEOPLE AND CULTURE OBJECTIVES Identify Needed Competencies & Close Gap Provide Strategic Information Create Climate for Results
[Date]
· 26
Owner
b. Translate the Unit Objectives and Initiatives into Personal Objectives and Initiatives “Unit to Individual Alignment Sample” Unit Objectives & Initiatives Objectives
Measure
Target Q1
Target Q2
Target Q3
Individual Objectives & Initiatives Target Q4
Initatives
Owner
Objectives
Measure
Target Q1
Target Q2
Target Q3
Target Q4
FINANCIAL OBJECTIVES Increase Customer Value PEOPLE AND CULTURE OBJECTIVES Identify Needed Competencies & Close Gap Provide Strategic Information Create Climate for Results
c. Translate how the mission, vision and values specifically applies and will be adhered to by:
Each Unit Each Individual
[Date]
· 27
Initatives
EMPOWER
Implementing
ade
Casc
Com mun icat e
Assess
t un co
Ac
r we po m E
(Refer to 4 Roles of Leadership Training Material)
Assess leadership styles
Understand the levels of empowerment
Evaluate what empowerment is needed for each person
Establish win-win agreements tied to personal work objectives & initiatives
Associates develop plans to implement win-win agreements
[Date]
· 28
ACCOUNT
Implementing
ade
Casc
Com mun icat e
Assess
t un co
Ac
r we po m E
Establish a compensation and incentive program aligned to the accomplishment of objectives and initiatives
Develop implementation and/or project plans clearly outlining key milestones and deliverables
Establish and maintain an effective tracking mechanism to assess progress towards targets, objectives, initiatives, etc.
Institute and maintain a regular and frequent (e.g., weekly) progress checks at all levels
Conduct quarterly performance reviews with all associates
Action Establish a compensation and incentive program aligned to the accomplishment of objectives and initiatives Develop implementation and/or project plans clearly outlining key milestones and deliverables Establish and maintain an effective tracking mechanism to assess progress towards targets, objectives, initiatives, etc. Institute and maintain a regular and frequent (e.g., weekly) progress checks at all levels Conduct quarterly performance reviews with all associates
Who
When
[Date]
· 29
COMMUNICATE
Implementing
ade
Casc
Com mun icat e
Assess
t un co
Ac
r we po m E
Create ongoing forums at all levels to solicit input and buy-in to help ensure accomplishment of objectives
Promote a clear understanding of the objectives and initiatives
Establish a regular and frequent progress communication program at all levels
Institute an effective change notification process, so that when changes occur, those impacted can make adjustments to ensure alignment
Action Create ongoing forums at all levels to solicit input and buy-in to help ensure accomplishment of objectives Promote a clear understanding of the objectives and initiatives Establish a regular and frequent progress communication program at all levels Institute an effective change notification process, so that when changes occur, those impacted can make adjustments to ensure alignment
Who
When
[Date]
· 30
MODELING
Im pl ing
em
en
Pa t hf ind
tin g
Modeling
Aligning
(Refer to 4 Roles of Leadership Training Material) Modeling answers these four questions: Who would follow me? Do I take responsibility? Do I “walk my talk”? Am I trustworthy?
[Date]
· 31