Profiting from strategic planning

By Jay Collins Management Action Programs Sherman Oaks, Ca.

review the company's current situation: look at your vision, mission, values, goal fulfillment, positioning in the marketplace, and regulatory compliance. Investigate the company's track record for personnel development-promotions, longevity, loyalty, etc.-to determine whether or not management has caused employees to reflect a positive, thriving business atmosphere. Only after taking a look at the big picture-where your company has been and where it is nowcan you move on to deciding where you want to go.

Unquestionably, the most profound stage of the planning process is designing your company's future. First, create a concise vision: a clear mission and a values statement to which you are committed. Develop goals for future revenue, profit, quality and time. Determine future capital, facilities and equipment needs. Of equal importance is the creation of projections for future target markets. Only when you have a good grasp of future market trends are you able to place your business in an excellent position to plan for tomorrow.

The last few facets of your plan are the nuts and bolts of the planning process. Develop strategies to get you where you want to go and create tactical plans to ensure you get there. It is important to plan from the ground up with your key people; have them include one-year projections as well as action plans. Assign due dates for accomplishing key goals and develop a chart to track your process. This provides visibility to other employees so that everyone is "on the same page." To keep everyone involved in the implementation of the plan, create a system of accountability. Not only will this allow everyone to feel a part of the team, but also will precisely outline who is in charge of what. Establish regular review periods and use a goals and controls system inside your monthly management committee.

Approach goal deficiency problem solving using a team consulting technique for positive progress. Keep in mind that utilizing these methods will help you to avoid missing critical goals and action plans.

The finished plan is the output of the planning process-the best of your combined thinking. The written plan will help others to understand the company's goals and can be used later as a standard for reviewing performance. Just as the planning process is a catalyst for thinking through the future, the written plan itself can serve as an important control element.

Given the highly competitive nature of the building products industry, one must think beyond next week. next month or even next year. Remember, business failures are not usually due to lack of hard work, but rather to poor planning or inadequate implementation of an imprecise plan.

ErVEN THOUGH the market

Lremained soft and there was a slowdown in plant openings compared to years past, OSB producers continued to gain ground in our second annual production ranking of North America's top OSB producers.

Perennial top producer LousianaPacific remained on top despite the closure of four plants. The company hopes to extend its lead in 1998 with the opening of a new Carthage, Tx., plant.

Georgia-Pacific enjoyed an increase in production of 22Vo to overtake Norbord Industries in third place.

Other gainers included Huber Engineered Woods which overtook Le Groupe Forex, Inc. in the 6th slot, and International Paper Co., which ranked lOth last year and experienced an unparalleled growth of 57Vo to climb into 7th place.

New producer Slocan Group came on line this year with their Fort Nelson, B.C., plant, landing them in I lth place.

Figures listed are combined estimates of each firm's plants, provided by the companies themselves. Every effort was made to ensure accuracy and thoroughness, although one producer (Masonite) declined to participate. The last four firms listed brought new plants on line last year.

Loulsian+Paciftc

Porilard,O.

15 olanb: l{anowih, Al.; Dmson Creelq B.C.; Monfiose, Co.; Afpns, Ga.; lloubn, lile.; t{eu,beny, Sagola, Mi.; Two Hartors, Mn.; llEv:ald, Totnahafllq VYi.; $xan Rivsr, Manihba;Roxbom, N.C.; Con(1an, Jasper, Siibbee, Tx.; (Catfiage, Tx., shrl-rp S).

Weyerhaeuser Co.

FederalWay, Wa.

6 plants: Drayton Valley, Edson, Slave Lake, Alberta; Elkin, N.C.; Grayling, Mi.; Sutton, W.V

GeoryiaPaciffc

Ailanta" Ga.

6 plants: Btmkneal (shrt-up 2-96), Sftippes, Va.; Dulley, N.C.; Grenada, [&.; tlt ]lope, W.V.; Woodland, Me.

Norbord Industries

Toronto, Ontario

4 olants: La Sane, Val-d'Or, Quebec; Solway, Mn.; Gunlown, Ms.

Poflatch Cory.

Spokane, Wa"

3 phnb: Bemdfr, Grand Badds, Cooh Mn.

Huber Engineered Woods

Charlotte, N.C.

3 plants: Commerce, Ga.; Easton, Me.;Crystal Hill, Va.; (Whites Creek, Tn. start-up late'97).

Int€matlonal PaDorCo.

Puldnse, N.Y.

3 planb: Nmgdodrcs, J€{lerson, Tx. (sbrt-up $96); Codele, Ga.

Le Groupe Forex, Inc.

Val-Dor, Quebec

2 olants: St.-Michel Des Saints, Chambord, Quebec.

Grant Forcst ftoducts

ErBlehan, Ontado l plant Englehad.

1996Annul 19$Annual 1995Annual Produclion Productton Capecity Prodlrfbn Changefrom '95.'96

:

Change 9F97

The Future Of,::O$B

Ainswofih Lunrber Co., Ltd.

100 tufile l'buse, B.C.

2 pl$E: 100 Mile Horse;Grand Prairie, Alberta.

Malette,Inc.

Timmins,0ntario trSlocan Group l:danl: Fort Nelson, B.C. (start-up 2-96).

2 plants: Timmins; St.- George-deChamplain, Quebec.

Ridmond, B.C.

Martco Partnership

Monow, La.

1 olant: Monow.

langhard,Inc.

Quitman, Ga.

1 plant Quilman.

Saskfor Products

Hudson Bay, Saskatchewan

1 plant: Hudson Bay (2nd Hudson Bay plant, start-up'99).

6l Tolko Industries

HighPrairie,Alberta l-daof HtSh Prairie; (Kenora,

, , &ttarb, stanrp 9.97).

E"f,'f,l:f '-:i!1$,ii,'ir,r

1 plant: Miramichi, start-up mide6).

Although the oriented strand board market has declined since last year, it will recover fiom its current oversupply to again gain ,,,,,'B!94$h by the turn of the centu]:,, iy;'r:,p]iedicts Structural Board Association president John Lowood.

1,'..'t.,'..',.ll..;..rc,:.qrrrtret forecasts that com',.l'taiiie*rt:wi1l respond to the recovrory bi opening new plants.

' , ':The OSB industry has been in an oversupply versus demand situation at least four times in 16 yeam, starting in 1981,'he says.

"Each time that happen,s;the industry comes oul of .,i!,.xrit!. .a,. greater market share,.,,a.,:hi$hbi, confidence level in OSB products, increased application and financially more securg,lt,''') 1:,':1 :' ::

Mary Jo Nyblad; sal,e,s & mktg. mgr. for OSB/plywood at Boise Cascade, Boise, Id., agrees that the market will rebound. "I am a believor that this is temporary. As we approach the 2lst ,:,@tqry it will get better."

:'.:.:r:].,i,.iLo1lvoQ{d says the industry will .:.,,t,.tle 'by diversifying the prod.,rr.r'llliici,rmix, l',',',',,,,',':',Fle,sees OSB being used in flooring; the conshuction of apartrn€nts and condominiums; in buildings that are designed to withstand earthquakes, wind and fires; the manufacture of furniture, shelving, patlets, packaging, and crating, and in growing offshore markets such as Japan, Korea and Europe. rirr: 'r,''rLowood adds: "The current ;',.;.,.Ibtr' piices are an incentive for r,:r:thCrr:os€r nst familiar with the .'.'g;dUet n start using it. Or, if he is already using it, to use it in different applications."

Nyblad believes that OSB will first be introduced in1o,.1,a i6l',l tions that are row fillad:r6tiltlt,:' wood, and then be used in, less traditional markets.

"The product is relatively immature and ithas to go through the traditional cycles first," she ,fcocasts.

1 pqnt SimsMq ts" {skn-up} s6).

Boise Cascade, Boise, td.

1 plant: Banrvick, Ontario, start-up q-q7l

Nyblad believes the future of OSB will be found in new wood sources: "Sy'e are looking at additional wood supplies in Russia and all across the continent. We are not only looking in our own backyard."