The benefits of strategic planning v the time and effort required.

1. The benefits of 5 year strategic
planning to non-financial managers
versus their time and
effort that this requires.
John Mayfield 1

2. John Mayfield 2
Content of the presentation
1.Definition -what is strategic
planning
2.The benefits of strategic planning
3.Time & effort required
4.Feedback
5.Improving the process
6.Conclusion

3. What is strategic planning?
The roadmap to a
business’s future
How are
we going
to get
there
Identifying the
priorities
Clarity:
objectives,
resources,
response.
John Mayfield 3

4. John Mayfield 4
The benefits of strategic planning

5. • Purpose of the organisation more clearly
defined
• Improved Communication of goals &
objectives to stakeholders
• Greater ownership, commitment & retention
among employees
• Resource utilisation is improved
• A baseline from which progress can be
measured
John Mayfield 5
Benefits of strategic planning (1)

6. Measureable output:
• Actions and goals to be achieved
• Resources needed to achieve goals
• Funding needed to obtain resources
• Links to budget & financial/operating targets
John Mayfield 6
Benefits of strategic planning (2)

7. • Environment. Improved understanding of the
competitive, legal, political etc. environment
• Awareness. Greater awareness of strengths &
weaknesses – capabilities and obstacles to exploit
opportunities, react to threats
• Stimulates change – better prepared for the future
• A more proactive business
• Survival of the organisation.
• Happier stakeholders & superior performance
• Failing to plan is planning to fail
John Mayfield 7
Benefits of strategic planning (3)

8. John Mayfield 8
The time & effort required

9. Time & effort required (1)
• Significant. 1 month+.. /people/depth
• Greater effort for the first time
• Time and effort depends on frequency, which
is greater where products, services &
environment are changing rapidly
• Process repeated every 18-36 mo (‘a cycle’)
• Implementation is key / quarterly review
John Mayfield 9

10. Time & effort required (2)
• The planning process can become long, drawn
out & frustrating
• Interference with day to day operations
• Rigid & routine? Need for a true debate about
where the organisation should be heading
• Good input = better quality output/results
John Mayfield 10

11. User feedback
John Mayfield 11

12. Feedback
• Mckinsey survey:
X Only 45% satisfied with the process;
However the process sets operational &
financial targets & identifies priorities for the
management team
Can the process be improved? Probably
John Mayfield 12

13. Suggestions to improve the strategic
planning process
John Mayfield 13

14. Improving the strategic planning
process
Management:
• Make better use of time – advance availability
of important financial & operational info’
• Team mix: knowledgeable, with skill set
• Traffic coding /rotation system to ID those
units to undergo full planning process
• Honest, open discussion of difficult issues
John Mayfield 14

15. Improving the strategic planning
process
Measurement:
• Track strategic decisions not only by financial
targets (lagging indicator), but KPIs – eg. new
product revenue, retention rates
• Compensation linked to progress of new
initiatives – motivates and will identify any
problems early on.
John Mayfield 15

16. Conclusion
John Mayfield 16

17. Conclusion
• Failing to plan is planning to fail
• Results in a clearer message, a sense of
purpose & future direction
• Better use of resources
For better return on time & effort:
• Discuss difficult issues, sacred cows
• Measurement of decisions & outputs
• integrate strategic planning process with HR
processes – evaluation & compensation
John Mayfield 17