An overview of Strategy Planning process for IT in large enterprises.

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Digital
Planning:
Strategy
and
Business
Planning
Process
Bottom
Up
|
Top
Down
Approach
Kiran Sohi
(Team Based Strategic Planning by C. Davis Fogg)

2. Purpose
• The objective of this document is to provide a planning framework that would allow
companies to succinctly plan company wide digital strategies and tactics on a periodic
basis
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• This document provides details of following:
• Strategy and Business Planning Process Framework
(Source: Team Based Strategic Planning by C. Davis Fogg)
• Functional Strategy and Roadmap – Annual Plan and Tactics Framework
• Annual Revision of Business Plan
• In addition, this document identifies
• Analysis tools that can be used to assess external and internal influences that
shape a business
• Common business planning gaps found in most organizations

3. Strategy
and
Business
Planning
Process
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Information
Flow
Board
CEO
FIN MKTG OPS HR SALES R&D
Organization
INPUT
S
D
I
REC
T
I
O
N
RESUL
T
S
A
successful
Strategy
and
Business
Planning
Process
requires
inputs
from
both
outside
and
inside
the
organization
Clear
strategic
direction
is
provided
by
both
the
Board
and
Management
team
to
ensure
organization
objectives,
strategies
and
tactics
are
aligned
with
corporate
goals.
Outside Inputs
World
Process
Facilitation Facilitator

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Outside
World
Inputs
• Inputs from the Outside World relates to
all influences that affect business
including:
• Competitors
• Change in economic landscape
• Potential Opportunities and Threats
• Government/Political/Regulatory
environment
• Etc.
• The Outside influences can affect the
business significantly. Being aware of
and constructing a plan to manage these
influences can mitigate any adverse risks
and prepare the business pro-actively for
impending change.

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Outside
World
Inputs
–
Analysis
Tools
Porter’s
Five
Forces
Competitive
Rivalry
within
an
Industry
Bargaining
Power
of
Suppliers
Bargaining
Power
of
Customers
Threat
of
New
Entrants
Threat
of
Substitute
Products
Allows
management
to
Provides
a
high
level
overview
of
company’s
position
in
the
market
know
where
your
company
can
gain
advantage
SWOT
Analysis
Strengths Weaknesses
- Customer Service - IT/IS
- Culture/Work force - Financial
- Market Image - Costs
- Diversified business
Opportunities Threats
- Intro of new product - Economy
- Expand value to - Concentrate on few
- New Technology large customers
Market
Sizing
Competitive
Review
Opportunity
Analysis
Helps
identify
key
opportunities
in
the
market
Market
sizing
allows
the
company
to
identify
the
size
of
pie
Supplements
pursuit
of
future
direction

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Organizational
Inputs
• Organizational inputs include work
that defines company’s current
situation including:
• Customer Insight
• Product Analysis
• Channel Cost and Revenue
• Current market share
• Etc.
• This information flow will allow
companies to understand where
they are ‘today’ and where the
organization is planning to go in
the immediate ‘future’
• To identify innovative ideas, a
company wide process that allows
employees, partners, customers,
etc. to contribute, needs to be in
place and operational
Source:
IBM
“The
Global
CEO
study
2006”,
based
on
interviews
with
765
CEOs
and
business
leaders.

7. Customer
Experience
by
Segment/Channel
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Organizational
Inputs
–
Analysis
tools
Channel
Strength
Analysis
Segmentation
&
Predictive
Modelling
Product
Lifecycle
Analysis
Customer
Profiling
Focus
Groups,
Survey,
Online
Metrics
Cost
Analysis
Pricing
Analysis
Channel
Product
Technology
Financial
Forecasting

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Organizational
Inputs
–
Bottom
Up
• Bottom Up Inputs provide management with
an understanding of future strategies,
objectives and tactics that the organization
aims to achieve
• This input can also include:
• New Product ideas
• Process improvement opportunities
• Market opportunities
• Etc.
• Digital Strategy is one of the key pieces of
inputs where input is solicited from key
business stakeholders to align initiatives in
the digital space across several departments
like:
• Customers Service
• Customer Acquisition
• Operations
• Marketing
• Etc.
FIN
• Financing
Strategies
• Cost
Cutting
Strategies
• Investment
Strategies
MKTG
• New
Product
Ideas
• New
Acquisition
Strategies
OPS
• Quality
Improvement
Strategies
• Process
Improvements
HR
• Org
Structure
Improvements
• Talent
Acquistiion
Strategies
and
Tactics
SALES
• Key
Account
Sales
Strategies
• Solution
based
Sales
Strategies
Digital
Strategy

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Organizational
• Results from previous year are input
into the Business Planning process.
These inputs usually come in the form
of Key Performance Indicators and
scorecards from each function that
cumulatively provide a better view of
Current Situation.
• Key Performance Indicators vary
based on metrics that are being
measured on an ongoing basis
Results

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Management
Direction
–
Top
Down
• Management must conduct workshops to
reach consensus on or prioritize the
Direction the organization will execute in the
coming year
• Deliverable for management includes
concise Direction to the organization
• Directions should include:
• Company Vision and Mission
• Strategies being pursued by each of the
functional areas or geographic
organizations
• A clear communication on why these
strategies are the focus for the future
• The town hall sessions with the entire
organization is very important to ensure that
there is a clear adoption from the
organization on the direction of the company

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• Independent Facilitation of this
process is necessary to ensure that
the entire organization participates
• Facilitation also ensures that there is
no bias in the decision making
process. This allows the decision
making process to be less about
favourability in strategic decision
making and more about information-based
Direction
Facilitator
Process
Execution

12. Functional
Digital
Strategy
Planning
Process
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Information
Gathering
-­‐
Competitive
Reviews
-­‐
Market
and
SWOT
Analysis
-­‐
Channel
Experience
Review
-­‐
Segmentation
and
Profiling
Analysis
-­‐
Customer
Behaviour
Maps
-­‐
Online
Metrics
Review
Current
Situation
-­‐
Value
Proposition
by
Channel
or
Product
-­‐
Current
Solutions
-­‐
Financial
(Revenue
and
Cost)
review
-­‐
Customer
Analysis
-­‐
Customer
Experience
gaps
-­‐
etc.
Future
Strategy
-­‐
SMART
Objectives,
Strategies
and
potential
tactics
-­‐
Execution
plan
-­‐
New
Product
Ideas
-­‐
Customer
Experience
enhancements
-­‐
Industry
solutions
-­‐
etc.
Stakeholder
Inputs
-­‐
Review
input
from
committees
and
organizational
stakeholders
-­‐
Add
new
ideas
(product,
process,
experience,
channels,
etc)
-­‐
Solicit
ownership
by
stakeholders
for
strategies/tactics/
solutions/ideas
1 2 3 4
Presentation
-­‐
Update
strategy
and
roadmap
-­‐
Present
‘working
draft’
to
Sr.
Management
-­‐
Update
based
on
feedback
-­‐
Workshop
as
necessary
to
obtain
consensus
from
Sr.
Management
Align
Strategies
-­‐
Review
Strategy
and
Roadmap
based
on
Management
direction
and
decision
-­‐Present
final
strategy
and
roadmap
to
Sr.
Management
-­‐
Present
final
strategy,
roadmap
and
plan
to
organization
with
Q&A
5 6

13. Annual
Digital
Strategy
Planning
Process
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1.
Information
Gathering
Competitive
Review
Market
SWOT
Analysis
Segmentation
&
Profiling
Channel
Experience
Focus
Groups
&
Survey
Online
Metrics
3.
Future
Strategy
2.
Current
Situation
Val
Prop
by
Channel/Prod/Segment
Current
Solutions
Financial
Review
by
Channel
(Rev.
&
Cost)
Analysis
by
Customer
Customer
Experience
Gaps
Present
Channel
SMART
Objectives,
Strategy
&
Tactics
Solutions
Definition
New
Ideas
Customer
Experience
Enhancements
4.
Stakeholder
Inputs
5.
Update
&
Update
Strategy
and
Roadmap
Present
draft
to
Sr.
Mgmt
Update
as
required
6.
Align
with
Corporate
Initiatives
Segmentation
and
Profiling
Market
Analysis
Competitive
Analysis
Update
Strategy
and
Roadmap
using
Management
Direction
Present
FINAL
version
to
Sr.
Mgmt
Mgmt
present
plan
to
Organization
Review
draft
with
Committees
and
Stakeholders
Add
new
ideas
to
Roadmap
(product,
process,
digital
experience
features,
channel
enhancements)
Solicit
and
confirm
ownership
Corporate
Planning
Process
w
Financial
Finalize Budget
Organizational and Individual Objectives
Start New Fiscal Year
Update
as
required
Strategy
and
Business
Plan
Update
plan
as
necessary
Update
Direction
Note:
Above
is
only
a
guideline.
This
list
can
be
modified
based
on
company
and
industry.
7.
Develop
Marketing
Plan
8.
Develop
Sales
Plan
9.
Key
Account
(Customer)
Plans
Etc.

14. High
Level
Tasks
for
Digital
Strategy
Planning
Process
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1.
Information
Gathering
TASKS
-­‐
Engage
Vendors
or
internal
resources
to
begin
Business
Analysis
as
required
-­‐
Gather
all
pertinent
information,
analysis,
reports,
market
information,
new
technology
ideas
-­‐
Renew
Segmentation
and
Profiling
based
on
latest
data
available
-­‐
Etc.
3.
Future
Strategy
2.
Current
Situation
4.
Stakeholder
Inputs
Present
5.
Update
&
TASKS
-­‐
Schedule
meeting
with
Sr.
Mgmt.
-­‐
Present
draft
Strategy
Plan
with
specific
recommendations
-­‐
Update
based
on
feedback
6.
Align
with
Corporate
Initiatives
TASKS
-­‐
Schedule
meetings
to
review
draft
strategy
-­‐
Obtain
input
from
committees
and/or
stakeholders
-­‐
Confirm
ownership
of
Future
Objectives
from
stakeholders
Segmentation
and
Profiling
Market
Analysis
Competitive
Analysis
TASKS
-­‐
Schedule
meeting
to
update
corporate
strategy
-­‐
Provide
details
of
Plan
as
Input
-­‐
Follow
up
with
meeting
to
ensure
alignment
with
Sr.
Mgmt
Direction
7.
Develop
Marketing
Plan
Corporate
Planning
Process
w
Financial
8.
Develop
Sales
Plan
9.
Key
Account
(Customer)
Plans
TASKS
Define
the
Current
Situation
using:
-­‐
Financials
-­‐
SMART
Objectives,
Strategies,
Tactics
-­‐
Roadmap
for
current
year
-­‐
Value
Prop
-­‐
Identify
gaps
in
Customer
Experience
-­‐
Etc.
TASKS
Define
Future
Strategy
with
Stakeholders:
-­‐
Align
key
segments
with
channel/product
-­‐
Identify
SMART
Objectives,
Strategies
and
tactics
based
on
information
collected
-­‐
Develop
roadmap
for
next
year
based
on
-­‐
Key
Segments
-­‐
Experience
gaps
-­‐
Etc.
Update
as
required
Strategy
and
Business
Plan
TASKS
-­‐
As
Sr.
Mgmt
updates
their
Direction
for
the
company,
additional
check
in
may
be
required
Finalize Budget
Organizational and Individual Objectives
Start New Fiscal Year
Note:
Above
is
only
a
guideline.
This
list
can
be
modified
based
on
company
and
industry.
Etc.

15. Frequency
of
Analysis
Analysis
recommended
for
the
Planning
Process
requires
periodic
updates
and
following
table
provides
a
high
level
overview
of
the
frequency,
benefits
and
exceptions
for
each.
Please
note
that
the
list
is
not
limited
to
the
items
identified
below.
Type
of
Analysis
Frequency
Benefits
Market
SWOT
Annually
The
market
conditions
can
change
quite
frequently
and
an
annual
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review
can
help
to
keep
up
with
the
threats,
weaknesses
and
opportunities
Competitive
Analysis
Annually
As
the
market
changes
frequently
every
year
given
new
innovations,
competitive
analysis
should
be
conducted
annually
if
not
more
frequently
Segmentation
and
Profiling
Every
two
years
minimum
Segmentation
and
profiling
should
be
reviewed
and
renewed
once
every
two
years
at
least.
Exception
case
may
be
when
a
new
market
opportunity/product/innovative
processes
present
a
need
to
add
new
data
to
the
process
Industry
Analysis
Annual
As
key
industries
change,
a
review
of
trends,
pain
points,
opportunities
should
be
under
taken
annually
Channel
Strength
Analysis
Annual
A
review
of
channel
as
part
of
the
Strategy
and
Road-­‐Mapping
exercise
should
be
executed
on
an
annual
basis
Channel
Experience
Annual
Inventory
of
solutions
and
features
for
individual
channel
and
customer
experience
should
be
reviewed
on
an
annual
basis
New
Ideas
Review/Process
Quarterly
A
process
to
asses
new
ideas
being
generated
by
the
organization
should
be
formalized
and
a
high
level
review
should
be
conducted
on
a
quarterly
basis

16. The
following
table
describes
gaps
experienced
by
organizations
during
the
development
of
business
planning
process
and
tactical
roadmaps.
Also
included
are
recommendations
to
eliminate
the
gaps.
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Potential
Gaps
Gaps
Description
Recommendations
SMART
Objectives
SMART
objectives
are
defined
by
Specific,
Measurable,
Achievable,
Relevant
and
Time
Bound
SMART
objectives
allow
for
measurable
scorecards
and
KPIs
for
the
year
for
individuals,
departments
and
functional
areas
within
a
company.
It
is
important
that
the
entire
organization
and
every
individual
have
SMART
Objectives
for
at
least
one
year
in
to
the
future
which
can
be
measured
as
part
of
their
Performance
Appraisal.
Each
function
within
the
company
should
have
clear
direction
including
strategies
and
tactics
they
intend
to
pursue
as
part
of
the
larger
organizational
direction.
Competitive
Assessment
Analysis
of
competitors
from
all
aspects
of
the
business
Understanding
what
competitors
are
currently
working
on
can
assist
in
identifying
customer
needs
that
are
not
being
addressed
by
competitors.
Conducting
a
SWOT
analysis
can
also
provide
insight
in
to
how
your
company
can
serve
the
market
where
competitors
are
weak.
Profiling,
Segmentation
and
Predictive
Modeling
Defining
high-­‐value
customers
for
your
business
and
identifying
new
target
customers
similar
to
those
high-­‐value
customers
in
the
market
Provides
priorities
for
channel/product
design
including
features
and
solutions
that
address
high-­‐value
customers’
needs
as
well
as
help
formulate
strategic
direction
for
the
future.
Ownership
of
Objectives
Ownership
of
objectives
by
individuals
or
departments
or
functions
Individuals
and
functional
groups
should
be
responsible
for
specific
SMART
Objectives
for
the
year.
Corporate
Strategy
Alignment
with
Functional
silos
Annual
strategy
and
roadmap
process
should
be
aligned
with
Business
Planning
Process
to
ensure
buy-­‐in
from
Sr.
Management
on
key
initiatives
and
direction.
Management
may
also
need
to
prioritize
the
initiatives
to
allocate
limited
resources
Marketing,
eCommerce
along
with
other
departments
in
the
company
should
provide
input
in
to
the
Strategic
Business
Planning
process
and
receive
clear
Direction
on
corporate
objectives,
strategy
and
direction
in
order
to
align
the
company
goals
to
department
goals
to
individual
employee
goals.
This
alignment
will
result
in
an
organization
that
will
invest
its
time
and
resources
in
a
strategic
direction
rather
than
random
silo
projects.
New
Idea
Generation
Process
New
Ideas
are
generally
not
evaluated
formally
but
implemented
as
they
arise
within
a
given
organization.
A
formalized
process
to
drive
innovation
is
required
within
the
organization.
The
ideas
should
be
evaluated
based
on
corporate
direction
and
appropriate
investments
can
be
directed
formally.

17. Contact
Info
Kiran
Sohi’s
career
has
focused
on
leading
companies
to
success
by
enabling
strategic
decision
making.
While
her
passion
is
Strategic
Planning,
her
work
spans
a
number
of
corporate
disciplines
including
IT,
marketing,
finance
and
operations.
OPEN
WRX
Consulting
Inc.
is
committed
to
helping
companies
improve
competitiveness
through
effective
decision
making.
Services
include
structuring,
facilitating
and
implementing
strategic
planning
process
and
strategic
solutions
for
technology
functions
and
companies.
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kiran.sohi@openwrxconsulting.com
416-­‐710-­‐3797