1. Toolbox
DEVELOPING A
STRATEGIC BUSINESS
PLAN

2. Strategic Planning
…is the managerial process of
developing and maintaining a strategic
fit between the organization's
objectives and resources and its
changing market opportunities.
Resources
Strategic Fit
Org Objectives
Changing Environment

3. The Role of Strategy
Strategy:
Corporate
•Corporate Operating
Mission &
•Business Plans
Objectives
•Functional

4. Vision and Strategy

5. Sun Tze on Strategy
“Know your enemy, know yourself, and

your victory will not be threatened.
Know the terrain, know the weather, and
your victory will be complete.”

6. Strategic Marketing
―Marketing Strategy is a series of
integrated actions leading to a
sustainable competitive advantage.”
John Scully

7. Corporate Mission
Broad purposes of the organization

 General criteria for assessing the
long-term organizational effectiveness
 Driven by heritage & environment
 Mission statements are increasingly
being developed at the SBU level as
well

8. Examples of Corporate Mission
SINGAPORE AIRLINES is engaged in
air transportation and related
businesses. It operates world-wide as
the flag carrier of the Republic of
Singapore, aiming to provide services
of the highest quality at reasonable
prices for customers and a profit for
the company

9. Examples of Corporate Mission
(cont’d)
MARRIOTT’S Mission Statement:
We are committed to being the best
lodging and food service company in
the world, by treating employees in
ways that create extraordinary
customer service and shareholder
value

10. Corporate Culture
The most abstract level of managerial

thinking
 How do you define culture?
 What is the significance of culture to
an organization?
 How does marketing affect culture in
the organization?

11. Corporate Objectives & Goals
An objective is a long-range purpose

◦ Not quantified and not limited to a time period
◦ E.g. increasing the return on shareholders’ equity
A goal is a measurable objective of the

business
◦ Attainable at some specific future date through
planned actions
◦ E.g. 10% growth in the next two years

12. Strategic planning
Goals / Objectives
SWOT Analysis
Strategy
Implementation
Measurement and Evaluation

13. STRATEGIC PLAN
DEVELOPMENT
Environmental and internal assessment Strategic definition and implications
• What are the major • What strategy will you
Industry
Strategy
changes in industry pursue over the next 3
dynamics and
articulation
dynamics and years?
implications
resulting opportunities
and risks?
+ +
• What are your • What will be the impact of
Competitive Strategic
competitive strengths major strategic initiatives?
assessment initiatives
and weaknesses?
+ +
• How does your current • What are the expected
Internal Financial
business emphasis fit financial returns of your
assessment projections
with industry strategy?
opportunity and
competitive +
landscape?
• What strategic alternatives
Risk/contingen-
have you considered?
cies & strategic
alternatives

14. The Usual Business Planning
Hierarchy
Vision
Mission
Objectives
Strategies
Tactics
Plans

15. Strategic Planning – Many Sub
Plans
Vision Mission
Objectives Strategies Tactics Plans
Objectives Strategies Tactics Plans
Objectives Strategies Tactics Plans

16. Framework of a Successful
Organisation

17. Business Planning and Delivery
Strategic
Plan
New Information Business
Plan
Feed Back
Regional or Sales &
Industry Marketing
Sales Plan Plan
State Sales
Plans

18. Vision is a Critical Driver
To succeed in the long

term, our business
VISION
needs a vision of how
we will change and
Consistently
Provides future
improve in the future. followed and
direction
measured
―without a vision, the

people perish‖
The vision of the

business gives its
energy. Expresses a
Must be fully
consumer
◦ It helps motivate us. communicated
benefit
◦ It helps set the
direction of corporate
and marketing
strategy.
Is motivating Is realistic

19. Values underpin all we do
Values form the foundation of a business’ management style.
Values provide the justification of behaviour and, therefore, exert significant influence on

marketing decisions.
An example is provided by BT Group - defining its values:
BT's activities are underpinned by a set of values that all BT people are asked to

respect:
◦ We put customers first
◦ We are professional
◦ We respect each other
◦ We work as one team
◦ We are committed to continuous improvement.
These are supported by our vision of a communications-rich world - a world in which

everyone can benefit from the power of communication skills and technology.
A society in which individuals, organisations and communities have unlimited access to

one another and to a world of knowledge, via a multiplicity of communications
technologies including voice, data, mobile, internet - regardless of nationality, culture,
class or education.
Our job is to facilitate effective communication, irrespective of geography, distance, time

or complexity.
Source: BT Group plc website

20. Has the Company got a strong
Clear Mission?
The Business Mission

is important to our
PURPOSE – why
sales & marketing the business exists
planning
It provides an outline of

how the marketing plan
should seek to fulfil the
mission STRATEGY & VALUES &
SCOPE – what CULTURE – what
It provides a means of
 business are we in management
evaluating and screening and how? believes in
the marketing plan; are
marketing decisions
consistent with the
mission?
STANDARDS &
It provides an incentive to
 BEHAVIOUR – the
rules that guide
implement the marketing how we operate
plan

21. quot;Strategy is the direction and
scope of an organisation over
the long-term: which achieves
advantage for the organisation
through its configuration of
resources within a challenging
environment, to meet the
needs of markets and to fulfil
stakeholder expectationsquot;.

22. Strategic Audit
- ensuring that the Company resources and
competencies are understood and evaluated
Resource Audit
Value Chain Analysis
Core Competence Analysis
Performance Analysis
Portfolio Analysis
SWOT / PEST Analysis

23. Need to work within Company
Resources & Constraints
Financial
• Existing Funds
• New Funds
Physical
• Production
• Marketing
• Sales
• R&D & Technical
• Information Technology
Human
• Existing Staff
• Future Staff Requirements
• Training & Development
Intangible
• Goodwill
• Reputation
• Brands
• Intellectual Property

24. Objectives - Corporate &
Functional
• Examples might include:
Corporate • We aim for a return on investment of at least
15%
• We aim to achieve an operating profit of over
$10 million on sales of at least $100 million
These are objectives that • We aim to increase earnings per share by at
concern the business or least 10% every year for the foreseeable future
organisation as a whole
• Examples might include:
• We aim to build customer database of at least
Functional 250,000 households within the next 12 months
• We aim to achieve a market share of 10%
• We aim to achieve 75% customer awareness of
Specific objectives for sales & our brand in our target markets
• We aim to sell $2m of xyz product into ABC
marketing activities
market over the next 6 months

25. Value Chain Analysis
Value Chain Analysis describes the activities that take place in a business and

relates them to an analysis of the competitive strength of the business.
Michael Porter suggested that the activities of a business could be grouped under

two headings:
1. Primary Activities - those that are directly concerned with creating and delivering a
product (e.g. component assembly); and
2. Support Activities, which whilst they are not directly involved in production, may
increase effectiveness or efficiency (e.g. human resource management). It is rare for a
business to undertake all primary and support activities.
Value Chain Analysis is one way of identifying which activities are best undertaken

by our business and which are best provided by others (quot;outsourcedquot;).
Linking Value Chain Analysis to Competitive Advantage

What activities a business undertakes is directly linked to achieving competitive

advantage.
For example, if we wish to outperform our competitors through differentiating

ourselves through higher quality then we will have to perform our value chain
activities better than the opposition.
But if we adopt a strategy based on seeking cost leadership this will require a

reduction in the costs associated with the value chain activities, or a reduction in
the total amount of resources used.

26. Primary Activities
Primary value chain activities include:
Primary Description
Activity
Inbound All those activities concerned with receiving and storing externally sourced
logistics materials
Operations The manufacture of products and services - the way in which resource inputs
(e.g. materials) are converted to outputs (e.g. products)
Outbound All those activities associated with getting finished goods and services to buyers
logistics
Marketing and Essentially an information activity - informing buyers and consumers about
sales products and services (benefits, use, price etc.)
Service All those activities associated with maintaining product performance after the
product has been sold

27. Support Activities
Support activities include:
Secondary Description
Activity
Procurement This concerns how resources are acquired for a business (e.g. sourcing
and negotiating with materials suppliers)
Human Resource Those activities concerned with recruiting, developing, motivating and
Management rewarding the workforce of a business
Technology Activities concerned with managing information processing and the
Development development and protection of quot;knowledgequot; in a business
Infrastructure Concerned with a wide range of support systems and functions such as
finance, planning, quality control and general senior management

28. Steps in a Value Chain Analysis
Break down a market / organisation into its
key activities
Assess the potential for adding value via
cost advantage or differentiation, or identify
current activities where a business appears
to be at a competitive disadvantage;
Determine strategies built around focusing
on activities where competitive advantage
can be sustained

29. Core competencies
Core competencies are those capabilities that are critical to a business

achieving competitive advantage.
The starting point for analysing core competencies is recognising that

competition between businesses is as much a race for competence mastery
as it is for market position and market power.
Senior management cannot focus on all activities of a business and the

competencies required to undertake them.
So the goal is for management to focus attention on competencies that really

affect competitive advantage.
Core Competencies are not seen as being fixed. Core Competencies should

change in response to changes in the company's environment. They are
flexible and evolve over time. As a business evolves and adapts to new
circumstances and opportunities, so its Core Competencies will have to
adapt and change.
We need to understand what we are good and what makes us better and to

hone these advantages and to develop new ones to underpin the business
strategy

30. Identifying Core Competencies
Prahalad and Hamel suggest three factors to help identify core competencies in any business:
What does the Core
Competence Comments
Achieve?
Provides potential The key core competencies are those that enable the creation of new
access to a wide products and services.
variety of markets
Makes a significant Core competencies are the skills that enable a business to deliver a
contribution to the fundamental customer benefit - in other words: what is it that causes
perceived customer customers to choose one product over another? To identify core
benefits of the end competencies in a particular market, ask questions such as quot;why is the
product customer willing to pay more or less for one product or service than
another?quot; quot;What is a customer actually paying for?
Difficult for A core competence should be quot;competitively uniquequot;: In many
competitors to industries, most skills can be considered a prerequisite for participation
imitate and do not provide any significant competitor differentiation. To qualify
as quot;corequot;, a competence should be something that other competitors
wish they had within their own business.

31. What is Competitive Advantage?
“Competitive advantage is a

company’s ability to perform in one or
more ways that competitors cannot or
will not match.”
Philip Kotler
“If you don’t have a competitive

advantage, don’t compete.”
Jack Welch, GE

32. Four Generic Strategies
Lower Cost Differentiation
Broad
Cost
Target
Differentiation
Leadership
Scope
Differentiation
Cost Focus
Narrow
Focus
Target

33. Other Characteristics of
Competitive Advantage
Substantiality

◦ Is it substantial enough to make a
difference?
Sustainability

◦ Can it be neutralized by competitors
quickly?
Ability to be leveraged into visible

business attributes that will influence
customers
(Source: Strategic Marketing Management, Aakers)

34. Seeking Competitive Advantages
Positions of advantage

◦ Superior customer value
◦ Lower relative total cost
Performance advantages

◦ Customer satisfaction, Loyalty, Market
Share, Profit
Sources of advantages

◦ Superior skills & knowledge, Superior
resources, Superior business process

35. WHERE TO COMPETE?
Target customers and segments
• Which customers are you trying to target or attract?
• Which are you willing to serve, but will not spend
resources to attract?
• Which would you prefer not to serve?
Customers
Geographical scope
of business activities How does the entity
• Geographic limits to the reach its target
business? Geographic customers
• Local, regional, multi- Channels
• Which distribution channels
markets
local, national,
will you use?
international, or global
• What customer segments
player?
can they reach?
• If local, which localities?
Products
Quality and breadth of the product line
• Breadth of the product line?
• Quality of the product line?
• Product bundles or a series of unrelated
products?

36. Capability platform: assessment of sources of
competitive advantage (1/2)
Example
• BHP’s low-cost mines
Physical asset
• Telecomm/media company with rights
Location/quot;spacequot;
radio spectrum
Privileged
assets • Avon’s representatives
Distribution/sales network
• Coca-Cola
Brand/reputation
• Pharmaceutical company with a quot;wonder
Patent
Necessary
drug‖
capabilities
in order to
• quot;Favored nationquot; status with a key
Relationship with quot;licensequot;
succeed in
allocator minister in liberalizing economy
the
industry
• 3M with new products
Innovation
• McDonald’s with QSC&V
Cross-functional
Distinctive
coordination
competencies
• J&J with branded consumer health products
Market positioning
• Emerson Electric’s Best Cost Producer
Cost/efficiency program
management
• P&G brand management program
Talent development

37. Extremely relevant
Capability platform: assessment of Somewhat relevant
sources of competitive advantage (2/2) Irrelevant
Segments
BU Overall A B C
Physical asset
Location/quot;spacequot;
Privileged
assets Distribution/sales network
Brand/reputation
Necessary
Patent
capabilities in
order to
Relationship with quot;licensequot;
succeed in the
allocator
industry
Innovation
Cross-functional
coordination
Distinctive
competencies
Market positioning
Cost/efficiency
management Talent
development
Step 2: Assess your overall position relative to
Step 1: Ensure that these are the
the capabilities required to succeed in the industry.
capabilities required to succeed in the
Also, determine if these capabilities are relevant to
industry. Use this list as a thought
the segments you serve
starter, add and delete as you see
appropriate

38. Competitor capability comparison
Competitors
BU Overall A B C
•
Physical asset
•
Location/quot;spacequot;
Privileged
•
assets Distribution/sales network •
Brand/reputation
Necessary
Patent
capabilities
in order to
Relationship with quot;licensequot;
succeed in
allocator
the
Innovation
industry
Cross-functional
coordination
Distinctive
competencies
Market positioning
Cost/efficiency
management Talent
development
Step 3: Compare the strengths and weaknesses of
your competitive position vs. the necessary skills

39. Porter’s 5 Forces of Competitive
Position Diagram
New Market
Entrants
Supplier Competitive
Buyer Power
Power Rivalry
Product &
Technology
Development

40. Porter 5 Forces

41. Porter’s 5 Forces of Competitive
Position version #2

42. Porter’s 5 Forces of Competitive
Position #3 Entry Barriers
Economies of Scale
Brand Identity
Rivalry Determinants
Capital Requirements
Industry Growth
Fixed Costs
New Product Differences
Entrants
Determinants of Supplier Power Brand Identity
Switching Costs Exit Barriers
Supplier Volume
Impact
Forward Integration
Industry
Competitors
Suppliers Buyers
Intensity
of Rivalry Determinants of Buyer Power
Buyer Concentration
Determinants of Buyer Volume
Substitution Threat
Backward Integration
Relative Price
Performance Substitutes
Switching Costs

43. Forces at work framework
2. Determinants of barriers to entry
1. Determinants of supplier power
• Economies of scale
• Differentiation of inputs
• Proprietary product differences
• Switching costs of suppliers and firms in the
• Brand identity
industry
• Switching costs
• Presence of substitute inputs
• Capital requirements
• Supplier concentration
• Access to distribution
• Importance of volume to supplier
• Absolute cost advantages
• Cost relative to total purchases in the industry 2. New entrants
– Proprietary learning curve
• Impact of inputs on cost or differentiation
– Access to necessary inputs
• Threat of forward integration relative to threat
– Proprietary, low-cost product design
of backward integration by firms in the industry
• Government policy
5. Industry competitors
• Expected retaliation
1. Suppliers
3. Buyers
Intensity of rivalry
3. Determinants of buying power
• Bargaining leverage
5. Rivalry determinants
– Buyer concentration vs. firm
• Industry growth
• Fixed (or storage) cost/value added concentration
4. Substitutes – Buyer volume
• Intermittent overcapacity
– Buyer switching costs relative to firm
• Product differences
• Brand identity switching costs
4. Determinants of – Buyer information
• Switching costs
substitution threat – Ability to backward integrate
• Concentration and balance
• Relative price performance of – Substitute products
• Informational complexity
substitutes – Pull-through
• Diversity of competitors
• Switching costs • Price sensitivity
• Corporate stakes
• Buyer propensity to substitute – Price/total purchases
• Exit barriers
– Product differences
– Brand Identity
– Impact on quality perception
– Buyer profits
– Decision makers' incentives

44. Ninety ways to measure
demand (6 x 5 x 3)
World
Geographical
Level Region
Country
Territory
Client
Total sales
Sector sales
Company’s sales
Product
Product lines
Level
Product config
Product items
Short Medium Long
term term term
Timing Level

45. Strategic Planning Link with
Marketing Planning
Businesses that succeed do so by creating and keeping customers.

They do this by providing better value for the customer than the competition.

Marketing management constantly have to assess which customers they are

trying to reach and how they can design products and services that provide
better value (―competitive advantage‖).
The main problem with this process is that the ―environment‖ in which

businesses operate is constantly changing.
So a business must adapt to reflect changes in the environment and make

decisions about how to change the marketing mix in order to succeed.
This process of adapting and decision-making is known as marketing

planning.
Key
Strategic Business Marketing Regional Industry
Account
Sales Plan State Plan
Plan Plan Plan Plan Plan
Plan

46. Strategic vs. Marketing Plans
Strategic planning is concerned about the overall direction of the

business.
◦ It is concerned with marketing, of course.
◦ But it also involves decision-making about production and operations, finance,
human resource management and other business issues.
The objective of a strategic plan is to set the direction of a

business and create its shape so that the products and
services it provides meet the overall business objectives.
Marketing has a key role to play in strategic planning, because it is

the job of marketing management to understand and manage the
links between the business and the ―environment‖. Sometimes this is
quite a straightforward task.
◦ For example, in many small businesses there is only one geographical market
and a limited number of products (perhaps only one product!).
◦ However, consider the challenge faced by marketing management in a
multinational business, with hundreds of business units located around the
globe, producing a wide range of products.
◦ Keeping control of marketing decision-making in such a complex situation calls
for well-organised marketing planning.

47. Key issues in strategic and
marketing planning?
The following questions are key in the marketing and strategic

planning process:
◦ Where are we now?
◦ How did we get there?
◦ Where are we heading?
◦ Where would we like to be?
◦ How do we get there?
◦ Are we on course?
A marketing plan helps to:

◦ The ability of a business to achieve profitable sales is impacted by dozens of
environmental factors, many of which are inter-connected
◦ Identify sources of competitive advantage
◦ Gain commitment to a strategy
◦ Get resources needed to invest in and build the business
◦ Inform stakeholders in the business
◦ Set objectives and strategies
◦ Measure performance

48. Situation Analysis
Internal Analysis—company; capability etc.

External Analysis—customers, market

definition, industry structure
SWOT Analysis

◦ Strengths, Weaknesses,
Opportunities & Threats
◦ Identify & prioritize major problems and
opportunities: selection of key issues
Based on the firm’s core

competencies, decide on future
options

49. SWOT
Internal Environment
Strengths Weaknesses
World class product Technical support
Financial resources Internal processes
Know-how Channels network
External Environment
Opportunities Threats
Water & Energy crises Competitors market share
Environment awareness Euro X Dollar
Productivity improvement Technology development

50. SWOT ANALYSIS
Opportunities/Threats
• How are demand and
supply expected to
NEUTRALIZE
evolve?
THREATS
• How do you expect the
industry chain
economics to evolve?
• What are the potential
major industry
discontinuities?
YOUR
• What competitor
BUILD ON CONVERT
BUSINESS
actions do you expect?
STRENGTHS OPPORTUNITIES
Strengths/
Weaknesses
• What are your BU’s
Surfaces potential
assets/competencies ADDRESS opportunities/threats arising
that solidify your WEAK- from factors external to the
competitive position? NESSES business
• What are your BU’s
assets/competencies
that weaken your
competitive position?
Can be used as a thought
starter for competitive
analysis and internal
assessment

51. SWOT Analysis is still a useful
Tool

52. TOWS matrix
Strengths Weaknesses
Opportunities S-O strategies W-O strategies
Threats S-T strategies W-T strategies
S-O strategies pursue opportunities that are a good fit to the
companies strengths.
W-O strategies overcome weaknesses to pursue opportunities.
S-T strategies identify ways that the firm can use its strengths to
reduce its vulnerability to external threats.
W-T strategies establish a defensive plan to prevent the firm's
weaknesses from making it highly susceptible to external threats.

53. PEST analysis
A scan of the external macro-

environment in which the company
wants to operate (or operates) and
can be expressed in terms of the
following factors:
◦ Political
◦ Economic
◦ Social
◦ Technological

54. PEST Analysis - market, business, proposition, etc.
POLITICAL ECONOMIC
• •
ecological/environmental issues home economy situation
• •
current legislation home market home economy trends
• •
future legislation overseas economies and trends
• •
European/international legislation general taxation issues
• •
regulatory bodies and processes taxation specific to product/services
• •
government policies seasonality/weather issues
• •
government term and change market and trade cycles
• •
trading policies specific industry factors
• •
funding, grants and initiatives market routes and distribution trends
• •
home market lobbying/pressure groups customer/end-user drivers
• •
international pressure groups interest and exchange rates
• •
wars and conflict international trade/monetary issues
SOCIAL TECHNOLOGICAL
• •
lifestyle trends competing technology development
• •
demographics research funding
• •
consumer attitudes and opinions associated/dependent technologies
• •
media views replacement technology/solutions
• •
law changes affecting social factors maturity of technology
• •
brand, company, technology image manufacturing maturity and capacity
• •
consumer buying patterns information and communications
• •
fashion and role models consumer buying mechanisms/technology
• •
major events and influences technology legislation
• •
buying access and trends innovation potential
• •
ethnic/religious factors technology access, licencing, patents
• •
advertising and publicity intellectual property issues
• •
ethical issues global communications

55. PEST or SWOT
A PEST analysis most commonly measures a market; a

SWOT analysis measures a business unit, a proposition
or idea.
Generally speaking a SWOT analysis measures a business

unit or proposition, whereas a PEST analysis measures the
market potential and situation, particularly indicating growth
or decline, and thereby market attractiveness, business
potential, and suitability of access - market potential and 'fit' in
other words.
PEST analysis uses four perspectives, which give a logical

structure, in this case organized by the PEST format, that
helps understanding, presentation, discussion and decision-
making.
PEST analysis can be used for marketing and business

development assessment and decision-making, and the
PEST template encourages proactive thinking, rather than
relying on habitual or instinctive reactions.

56. Structure-conduct-performance (SCP)
model
Industry Producers
External
S C P
tructure onduct erformance
shocks
Feedback
• Technology Economics of demand Marketing Finance
• Availability of substitutes • Pricing • Profitability
breakthroughs
• Changes in • Differentiability of products • Volume • Value creation
• Rate of growth • Advertising/promotion
government Technological progress
• Volatility/cyclicality • New products/R&D
policy/regulations Employment objectives
– Domestic • Distribution
Economics of supply
– International • Concentration of producers Capacity change
• Import competition • Expansion/contraction
• Diversity of producers • Entry/exit
• Fixed/variable cost structure • Acquisition/merger/ divestiture
• Capacity utilization Vertical integration
• Entry/exit barriers • Forward/backward integration
• Vertical joint ventures
Industry chain economics
• Bargaining power of input • Long-term contracts
suppliers Internal efficiency
• Bargaining power of customers • Cost control
• Logistics
• Process R&D
• Organization effectiveness

57. Definition of risks
Definition
• Risk of loss due to changes in industry and competitive
Business risk environment, as well as shifts in customer preferences
• Risk due to changes in regulatory environment (e.g.
Regulatory risk deregulation)
• Risk due to major changes in technology
Technology risk
• Risk of failures due to business processes and
Integrity risk operations or people’s behavior, either intentional (e.g.
fraud) or unintentional (e.g. errors)
• Risk of loss due to changes in the political, social, or
Macroeconomic
economic environments
risk

58. Management
Management, control and evaluation


59. Five disciplines – Peter Senge
Personal Mastery:

◦ Aspiration involves formulating a coherent picture of the results
people most desire to gain as individuals, alongside a realistic
assessment of the current state of their lives today.
◦ Learning to cultivate the tension between vision and reality can
expand people's capacity to make better choices, and to achieve
more of the results that they have chosen.
Mental Models:

◦ Reflection and inquiry skills is focused around developing
awareness of the attitudes and perceptions that influence thought
and interaction.
◦ By continually reflecting upon, talking about, and reconsidering
these internal pictures of the world, people can gain more
capability in governing their actions and decisions.

60. Five disciplines – Peter Senge
Shared Vision:

◦ Establishes a focus on mutual purpose.
◦ People learn to nourish a sense of commitment in a group
or organization by developing shared images of the future
they seek to create, and the principles and guiding
practices by which they hope to get there.
Team Learning:

◦ Group interaction.
◦ Through techniques like dialogue and skillful discussion,
teams transform their collective thinking, learning to
mobilize their energies and actions to achieve common
goals, and drawing forth an intelligence and ability greater
than the sum of individual members' talents.

61. Five disciplines – Peter Senge
Systems Thinking:

◦ People learn to better understand
interdependency and change, and thereby to
deal more effectively with the forces that shape
the consequences of our actions.
◦ Systems thinking is based upon a growing body
of theory about the behavior of feedback and
complexity - the innate tendencies of a system
that lead to growth or stability over time.
◦ To help people see how to change systems more
effectively and how to act more in tune with the
larger processes of the natural and economic
world.

62. Project management - processes

63. Project management – a process

64. Project management – process
chain

65. Project management – risk
analysis

66. Success Keys - Deployment
Deployment - Completing the Plan
Success Failure
>Assign roles and responsibilities >No accountability for deployment
>Establish priorities >Too many goals, strategies, or objectives
- no apparent priority
>Involve mid-level management as >Plan in a vacuum-functional focus
active participants
>Think it through - decide how to >No overall strategy to implement
manage implementation
>Charge mid-level management with >Make no attempt to link with day-to-day
aligning lower-level plans operations
>Make careful choices about the >Not being thorough-glossing over the
contents of the plan and form it will details
take

67. Success Keys - Communication
Deployment - Communicating
Success Failure
Assign roles and responsibilities No accountability
Communicate the plan constantly Never talk about the plan
and consistently
Recognize the change process Ignore the emotional impact of
change
Help people through the change
process Focus only on task
accomplishment

68. Success Keys - Implementation
Implementing - I
Success Failure
Assign roles and responsibilities No accountability
Involve senior leaders Disengagement from process
Define an infrastructure Unmanaged activity
Link goal groups Fragmented accomplishment of
objectives leads to sub-optimization
Phase integration of Force people to choose between
implementation implementation and daily work; too
actions with workload many teams
Involve everyone within the No alignment of strategies
organization

69. Success Keys - Implementation
Implementing - II
Success Failure
Allocate resources for Focus only on short term need for
implementation resources
Ignore or avoid change
Manage the change process
No measurement system
Evaluate results
Hide mistakes/lay blame;
Share lessons learned; limited/no communication
acknowledge
successes through open and
frequent communication

70. Success Keys - Measurement
Strategic Measurement - I
Success Failure
Assign roles and responsibilities No accountability
Use measurement to understand Sub-optimization: focus only on
the organization efficiencies
Use measurement to provide a Use measures that provide no real
consistent viewpoint from which to information on performance; use
gauge performance too many measures
Use measurement to provide an Use measurement to focus on the
integrated, focused view of the bottom-line only
future

71. Success Keys - Measurement
Strategic Measurement - II
Success Failure
Use measurement to communicate Use measurement to control
policy (new strategic direction)
Update the measurement system Never review measures
Use measurement to provide Fail to use measurement to make
quality feedback to the strategic strategic, fact-based decisions; use
management process only for control

72. Success Keys - Evaluation
Evaluation
Success Failure
Assign roles and responsibilities No accountability
Recognize when to update the plan Poor timing and not recognizing
external forces
Modify strategic planning process to Rigid application of strategic
accommodate the more mature planning process; ignore lessons
organization learned from previous efforts
Ignore impact of new leaders
Incorporate new leaders into the
strategic planning process
Don't use measurement
Integrate measurement with strategic information
planning
Shortcut the process
Use experienced strategic planning
facilitators

73. Best Companies Spend more time
on Forward Planning than Historical
Analysis
Achieving Agility Through a New Approach to Forecasting In today’s turbulent economy, rolling forecasts are proving to be an
important new tool in changing the way budgeting and planning has traditionally been handled. Mary Brandel

74. Benefits of Rolling Forecasts