Driving Transformational Change Through Strategic Planning
Change is Inevitable Growth is a Choice
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Companies that failed to transform
88% of companies that made the fortune 500 list in 1955 are gone.
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Why do companies fail to transform? • They’ve become to complacent • Underestimating the power of vision • Under communicating vision • Declaring victory too soon • Failure to create short term wins • Fear of failure • No culture of innovation
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Why do companies fail to transform?
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HOLD FOR INPUT FROM SAM ON SAFE FOOD ALLIANCE’S TURNAROUND
OUR STORY
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THE STRATEGIC PLANNING PROCESS
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High Level State of Business • Strategic planning is relevant at every level of an organization • The first step may be a single person, or maybe two or three! • This is more of an internalized exercise prior to involving the members of the guiding coalition that will ultimately effect and communicate change within the organization.
What Now?
Is Strategic Planning Really Needed? • Will the chances of success be greater if there is a clear company-wide vision of: • what you want to become in five to 10 years • the value your services or products mean to the targeted customers over a given time frame • how the specific service and product goals that will be provided are linked to long-range objectives • how the strategies to be used will reach desired goals • how strategies relate to tactics, resource needs, tasks, responsibilities and timelines
Organizational Buy-In • Communicate Vision and Direction to the entire management team • Creates awareness of the organization’s objectives, mission, and purpose
Strategic implementation • Tactical planning: Departmental • Sets forth specific short-term actions and plans, usually by departments or specific infunctions • Addresses the who, what, where, when, and how of reaching the desired goals and objectives. • Implementation occurs after environmental scans, SWOT analyses, and identifying strategic issues and goals
Strategic Planning Why do we need a plan?
• Planning: Developing a sequence of action steps to achieve specific goals. • Done correctly, it reduces the time and effort of achieving the goal • A plan is like a map. ... Planning is also crucial for meeting your needs during each action step with your time, money, or other resources.
Failure to plan is Planning to Fail
ASSEMBLE YOUR TEAM Strategic Planning requires leadership and a guiding coalition
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Guiding Coalition • Single Digit in Size • Sourced from within the company • Positive – Effective people • Vision • See how the future can be different from the past • Understand what initiatives will produce the desired future reality •
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Sense of Urgency • Buy-in to “Why” we must change
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Strategic Planning/Management Leadership
• Setting direction • Allocating resources to pursue the strategy • Control mechanisms for the implementation of the strategy
Guiding Coalition
• Setting measureable objectives • Analyzing the competitive environment • Analyzing the internal organization • Evaluating strategies • Ensuring the strategies are rolled out across the organization • Ongoing process of managing an organization strategically
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Identify Mission & Vision Revisit & Revise
Determine Position
Develop Strategy
Implement Strategic Plan Create Plan
The Strategic Planning Process
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Crafting a mission statement
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"We seek to be Earth's most customercentric company for four primary customer sets: consumers, sellers, enterprises, and content creators." Amazon
"To refresh the world; to inspire moments of optimism and happiness; to create value and make a difference." -Coca-Cola
"Dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit." Southwest Airlines
"To organize the world's information and make it universally accessible and useful." -Google
Your mission statement drives the company
• It is what you do/the core of the business, and from it come the objectives that align with strategic vision • What do we do • Whom do we serve • How do we serve them
Mission Statement
Your vision statement gives the company direction
• It is the future of the business, which then provides the purpose. • The vision statement is about what you want to become. It’s aspirational. • What are our hopes and dreams? • What problem are we solving? • Who and what are we inspiring to change?
Vision Statement
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Vision statements
Disney: To make people happy
Microsoft: Empower people through great software anytime, anyplace, and on any device.
Harley-Davidson: To fulfill dreams through the experiences of motorcycling
Instagram: Capture and Share the World’s Moments.
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Vision Statements: 5,10,20 words? Feeding America: A hunger-free America (4 Smithsonian: Shaping the future by words) preserving our heritage, discovering new knowledge, and sharing our resources with the world (17) Alzheimer’s Association: A world without Alzheimer’s (4) National Multiple Sclerosis Society: A World Free of MS (5) Habitat for Humanity: A world where everyone has a decent place to live. (10)
Special Olympics: To transform communities by inspiring people throughout the world to open their minds, accept and include people with intellectual disabilities and thereby anyone who is perceived as different. (28)
San Diego Zoo: To become a world leader at connecting people to wildlife and conservation. (12) Cleveland Clinic: Striving to be the world’s leader in patient experience, clinical outcomes, research and education. (14)
VFW: Ensure that veterans are respected for their service, always receive their earned entitlements, and are recognized for the sacrifices they and their loved ones have made on behalf of this great country. (32)
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CORE VALUES • Values are just behaviors • They are the how of the mission, the means to an end.
• Build Core Values Together • Everyone in the company should have something to say about Values
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“We treat customers the way we would want to be treated.” After the merger of Bank One and JP Morgan
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Core Values • Never let profit center conflicts get in the way of doing what is right for the customer. • Give customers a good, fair deal. Great customer relationships take time… • Always look for way to make it easier to do business with us. • Communicate daily with your customers. If they are talking to you, they can’t be talking to a competitor.
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Analysis of the State of the Business by Considering… Changing Trends
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• Demand and Consumption • Social • Environmental • Economy • Technology • Cultural norms • Resources: • Human Capital • Financial Capacity • Infrastructure
Position in the Market
• Product Type • Market Sector
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Future Aspirations • • • •
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Company Goals What drives the organization? What is on the horizon? What is the vision?
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Establishing a Sense of Urgency • Analyzing the state of the business should leave you with a strong sense of urgency to implement change. • Transformational change will be virtually impossible without the leader(s)knowing that the organization cannot stay at status quo • If they are not committed to the change, they will give in to the resistance to change that will come.
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SWOT Analysis Use your SWOT analysis to set priorities
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Strengths
Weakness Opportunities Threats
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W T
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5 YEAR STRATEGIC VISION • If a business has little idea where it is headed, it will wander aimlessly without priorities, changing constantly, and with employees confused about the purpose of their jobs. •Long Term Objectives •Strategic Initiatives
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How will you measure success?
Stages of Transformational Process
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Building a strategic plan is like building a house
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Focus Areas Focus Areas should be tighter in definition that your Vision Statement – but not to the level of having any particular metric or deadline. Some good Focus Areas might include: • Pushing the boundaries of technological innovation • Exploring new markets to generate growth • Gaining a deeper understanding of the needs of our customers • Growing shareholder returns
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Strategic Initiatives • Strategic Initiatives are the heart and soul of your strategic plan • Should align with vision, values, and at least one focus area • Has a clear outcome and deadline • Examples include: • Increase Market Share by 15% by 2020
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Strategic Initiatives • U.S. Postal Service 2017-2021: 1. Deliver a World-Class Customer Experience
vOur goal is to create engaged, loyal customers by meeting their needs better than our competitors.
2. Equip, Empower, and Engage Employees
vOur efforts will focus on equipping, empowering, and engaging our employees, so they better understand how their efforts and our products directly impact customer loyalty and business results.
3. Innovate Faster to Deliver Value
vBuilding on our long and bold history of innovation, we will continue to explore advances in technology and adapt to the changing marketplace.
4. Invest In Our Future Platforms
vWe will strategically invest in the operations and infrastructure of the Postal Service to continuously improve and digitally integrate our business capabilities and adapt to emerging market opportunities.
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Example from the US Postal Service: Lead the Adoption of Digital Features across the Mail Industry to Enhance the Value of Mail • The Postal Service continues to drive innovations that give consumers more control over the mail they receive, make direct mail simple to send, enable multimedia touch points, and reinforce the resiliency of mail as a trusted, effective communications channel. Mail continues to be the primary revenue source for the Postal Service, so sustaining mail revenue by offering mail products and features our customers’ value is essential to our success. We will ensure mail
remains relevant and viable by merging physical mail with digital features. We will continue to expand various initiatives, such as adoption of the Informed Delivery application, political mail services, and digital promotions programs to sustain mail revenue and promote customer ease of use.
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Dollars in 000’s
Export Retail 15%
Export Bulk 20%
Domestic Retail 12%
Food Service 10%
Total
FY 18
25,000
50,000
75,000
30,000
180,000
FY 19
28,750
60,000
84,000
33,000
205,750
FY 20
33,062
72,000
94,080
36,300
235,442
FY 21
38,021
79,200
105,369
39,930
262,520
FY 22
43,725
87,120
118,013
43,923
292,781
FY 23
50,283
104,544
132,174
48,315
335,316
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Deliverables • A deliverable should be even more specific and detailed than the Strategic Initiative • It needs not only a deadline, but also a metric and a indicator of how you manage the success of the deliverable • Deliverables help assign accountability to the implementation of the strategic plan
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Our Frame Work Company Initiative Initiative
Initiative Lead
Goal Lead
Who is leading Who is leading this initiative the deliverable (One Person) (One Person)
Support Who is support for each deliverable (Several People)
Specific Goal Deliverables
Due Date
Status
List exactly what is to be accomplished
Due date for each deliverable
Status for Each Deliverable
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Status Check • Contemplate your organization's vision. ... • Evaluate your organization's current standing [SWOT] • Write mission and Vision statements • List factors necessary for success [Core values] • Develop a strategy for accomplishing each success factor [Strategic Initiatives] • Prioritize your strategies according to viability and growth goals [Tactical Initiatives]
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Implementing the Plan
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When a strategy is accompanied by lousy execution, it may as well have stayed in the box
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Communicating the Change
Many companies fail to transform because they undercommunicate the vision
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Generating Short Term Wins • Recognition • Work it took to accomplish the goal • What the goal means to the process
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The Winning Organization of the 21th Century • A Persistent Sense of Urgency • Teamwork at the Top • People Who can Create and Communicate Vision • Board-Based Empowerment • Delegated Management for Excellent Short-Term Performance • No Unnecessary Interdependence • An Adaptive Corporate Culture • Getting From Here to There
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Consolidating Gains and Producing More Change • Use increased credibility to change all systems, structures and policies that don’t fit together and don’t support the transformational change • Hiring, promoting and developing people who can implement the change vision • Reenergizing the process with new projects, themes and change agents
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Anchoring New Approaches in the Culture
Trust Defined Want to develop a culture of trust: (1) Meet day-to-day promises (2) Openly sharing information (3) Communicate team building and collaboration (4) Establish relationships that bridge organizational boundaries (5) Seek to be mutually fair and beneficial (6) Debrief your successes and near misses immediately following the mission.
Transformation Future Implications 1. 2. 3. 4. 5. 6. 7.
Persistent Sense of Urgency Teamwork at the Top People who Create and Communicate Vision Broad-Based Empowerment Excellent Short-Term Performance An Adaptive Corporate Culture Dedication to Lifelong Learning
Strategic Management Strategic Management involves continuous:
o o o o o o
Planning Communication Execution Monitoring Assessment Realignment
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What next?
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Combating Change Resistance •“Just try to make me change” •Employee Resistance •Need Organizational Buy In
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Profiles of Resistance
Blatant Resistance
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Profiles of Resistance
Passive Resistance
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Change Agents!
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Strategic Planning Workbook