1 THE PROGRAMEXECUTIVE’S SESSION 2 PLANNING PART 1: PLANNING AND LONG-TERM PLANNING
PURPOSE AND LEARNING OBJECTIVES
Purpose:
Learn why and how top performing executives develop and use their plans. Learning Objectives: To learn… • Why a plan is so important • What great plans look like • How to build great plans • How to use plans 2
AGENDA 1. Recap 2. Why top executives plan 3. What great plans look like 4. How to build your plans 5. How to use your plans 6. Summary 7. Reflection and Homework 3
Poll 4
Part Recap1: 5
RECAP: SESSION 1 Top performing executives share 5 habits. Have a solid morning routine.And remember why… 6
THE 5 HABITS 7 Mindset Your morning routine Mindset Your morning routine Practice Learn do teach Practice Learn do teach Feedback Coaching Feedback Coaching Focus Your plan. Focus Your plan. Time Management Your calendar Time Management Your calendar
SESSION PLANNING#2: 8 x x x x
9Habit: Focus 2080%%8020%% Many trivial tasksFewtasksvital Work Done Results
Part 2: Why do successful executives develop strategic plans? 10
WHY HAVE A WRITTEN PLAN? • Writing a plan is one of the first disciplines formed by top performers. • It increases the odds that you will achieve your goals by 50%. • It is the main communications tool of Executives. • It ensure Executives and their team stay focused. • It is the starting point for all tactical planning and execution. • It is the accountability tool for the board/shareholders to use with the executive team. • It helps executives earn respect from their team, employees, shareholders and almost everyone else. 11
Hint: It’s more about the process then it is about the plan.
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Part 3: What does a great plan look like? 13
TYPES OF PLANS
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• For internal audiences. For new and established companies. Covers ~5 years. Provides focus and prioritizes resources (time, money, people). Defines why the company exists, where it is going, how it will get there and how it will win. Used as the input to all tactical plans, which guide the execution of successful companies.
Business Plan • For external audiences; usually new or expanding companies.
• Usually 1 year, but could be multiple.
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• Provides investors / lenders with a fundamental understanding of the company, the market, services, how it will launch, operate, be managed, be financed, and perform financially.
• Sells the business idea or project to financiers.
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Strategic Plan
• Used to raise money.
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BAD PLANS • Not written down • Too long > 30 pages • Developed by only one gender • Little substance, but a lot of words • Weak data – not specific about actual competitors or customers • Not exciting – fall asleep reading • Not clear – leaves you asking “So where are we going and what do we do?” • Never reviewed – outdate • Never used – shelf ware 15
GREAT PLANS: PRINCIPLES 16 KISS Simple Used Often!
• Female leaders can relate better to female customers’ needs. • Their perspective is vital for product design, businessstrategy,marketandoverallplanning. (McKinsey,World Bank)
MAKE YOUR PLANS GENDER-SMART 17 PowerPurchasing • 65% of bydecisionspurchasinghouseholdaremadewomen. • Women control $40 trillion of global spending.consumer (World Economic Forum) Business Performance • Companies in the top quartile for gender diversity on executive teams are 21% more likely to outperform the national average. (McKinsey)
InsightsCustomer
EFFECTIVE PLANS WITH GENDER-SMART TEAMS
18 Source: McKinsey 2009 Study “Leadership behaviors more beyond”naivgateleadersadoptedfrequentlybywomenarecriticaltothecrisisand (McKinsey study)
Part 4: How to build a great strategic plan? 19
20 StatementGuidingyears energizedgetmorningtostrategicinputonboarding,UsedmodelOperatingmodel,BusinessValues,Strategy,Mission,Vision,duringtotheplan,readinthetoyou 5 years Annual Quarterly Monthly Weekly Daily THE PLANNING & EXECUTION SYSTEM 20 Team Meetings / Activities Strategic Plan PlanManagementAnnual&Budget BoardQuarterlyReport,OKRs Monthly Mgt. KR Reports TheLegendWeekly Daily Calendar AnnualMeetingPlanning AllMeetingHands BoardQuarterlyMeetings Monthly Mgt. KR Meetings The LegendMonday&FridayWIR Communications&Reporting
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“Start with the plan to your left”
22 YOUR GUIDING STATEMENTS – THE LONGESTTERM PLAN (farthest to the left) CanSource:You
When to use: To refresh (develop) your strategic plan. Tips: –
– Externally, your guiding statements say who you are and what you care about. To recruit amazing people.To sell your “brand” to customers.
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Say What Your Strategy Is?
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For you, your founders and your team to get motivated and not forget why you started out on this journey. Something that will get you up in the morning! Something you use during onboarding, training, and annual offsites.
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by David J. Collis and Michael G. Rukstad
TOOL: GUIDING STATEMENTS
customers •
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Vision: What we will become.What we want the world to look like when we have succeeded. Mission: Why we exist and what we do.The value we create for our
Values: What we believe in and how we make decisions.What we care about. Strategy: How we will win and protect our position
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competitive
When take the first step in defining a true strategy.To focus you about what is most important and where – Pick one thing. Just one. – Never let anything fall below the bottom end of the range.
to use: to
to invest. • Tips:
TOOL: STRATEGY 24 rangeCompetitive Time /AdvantageResources •
USING YOUR GUIDING STATEMENT 25 GuidingStrategyMissionVisionStatementValues 5-year StrategicPlan 5-year StrategicPlan 5-year StrategicPlan2024 5-year StrategicPlan 5-year StrategicPlan 5 Strategic Plans =Vision Today
THE STRATEGIC PLAN: THE MID-TERM PLAN • Period: Covers 5 years. • Updated: Mid-way (2.5 years in). Check in to see if anything major has changed. • Document length: 3-7 pages or 10-15 slides. KISS! • Input: The company’s guiding statements, market information (opportunities, competition) and company data (resources). • Tools: SWOT (company), and Porter’s 5 (market) • Elements: 1) Current state; 2) 5-year Future State; 3) 3-7 SMART goals; 4) a compelling Case for Change (why?!); and 5) clear Barriers and strategies to address; 6) Strategic Priorities to accomplish the goals (do this last) •
Purpose of the strategic plan: To develop the company’s Annual Management Plan (AMP) and budget.
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TOOL: BUILDING YOUR STRATEGIC PLAN 27 Touchstone Consulting Group How to be “strategic” when planning. 1 2 3 4 5
STEP 1: DEVELOP THE CURRENT STATE 1. Review input from the team: 2 to 4 hours 2. Review your past performance (TvA): 2 hours 1. What have we accomplished? Why? 2. What haven’t we accomplished? Why? 3. SW(OT) / Porter’s 5 Analysis: 2 hours 1. Management review 2. Operations review 3. Market review (Porter’s) 28 • An honest and concise business.currentsummaryhalf-pageofthestateofthe • Builds a strong case for the strategic goals.“Why we must change.” • accomplishmentsAcknowledges and challenges. • Gives CEO very powerful talking points.
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“Current
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Maximize Address
TOOL: SWOT
29 ExternalInternal
When to use: When preparing your State”. Tips: – Internal: Be very (brutally) honest about the internal. Be specific. Go department by department, manager by manager. – External: Do your homework – don’t think you know the market.Try being a customer of your competitors. Meet with your customers and ask them to give you honest feedback. Read your Google feeds about the market – review competitors’ websites.
TOOL: PORTER’S FIVE • When to use: When preparing the current state. For your discussion about the O/T in the market (External). 30 Michael Porter
STEP 2: DEVELOP THE FUTURE STATE Brainstorming (most creative) 1. Envision what it must look like 5 years from now: 1-2 hours.Write it down, go around and share. Have someone capture. 2. Cross-walk with the your guiding statements: 30 min 3. Group and prioritize future state into buckets: 3-5 hours 31 • States where we need to be • Provides a futuredescriptionclearofthestatein5years. • Used to build the AMP
STEPS 3 & 4: CASE FOR CHANGE AND BARRIERS 1. Case for change: Does this future state get me excited? Does it get our team excited? Does it align with our guiding statements – i.e., does it advance us 20% closer to our vision? 2. Barriers: What is going to get in our way? Because we need to come up with initiatives to address these. 32 • Helps you make updates to the future state so you can get excited about it! • Gives you some sobering realities of the road ahead – puts the barriers in front of you.
STEPS 5:THE INITIATIVES 1. Each objective will likely have an initiative 2. Written starting with verbs. i.e., build a factory, open a new office, etc. 3. Must take into account barriers. i.e. If financing, securing financing from an investor. 33 • Helps you make updates to the future state so you can actually get excited about it! • Gives you some sobering realities of the road ahead – puts the barriers in front of you.
SECRET:WHO IS IN THE ROOM? • Identify up-and-coming women and men in your organization. Get that balance! • Prepare strategy gameboard questions for each gender (you want different perspectives). • Ask them to contribute their ideas. In a big room might not get the best out of them. • Reassure your team that their honesty will be greatly valued. • Consider bringing on an “outside advisory board member” that is a woman, to connect with women and men. 34
Part 5: How to top executives use their plans? 35
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Start by reviewing the plan to the left.This ensures alignment. As the time period gets shorter, the plan gets more detailed.
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The Annual Management Plan (AMP) is your annual plan. 5 of these accomplish your strategic plan.
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The guiding statements are your farthest-out plan.These don’t change.
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USING YOUR PLANS
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Quarterly Objectives and Key Results (OKRs) is your quarterly plan and monthly targets. The weekly legend is the most tactical company plan – it links to the monthly plans.
The strategic plan is the highest-level company plan – a 5-year segment to achieve the company’s vision.These are done every 5 years.
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20 StatementGuidingyears energizedgetmorningtostrategicinputonboarding,UsedmodelOperatingmodel,BusinessValues,Strategy,Mission,Vision,duringtotheplan,readinthetoyou 5 years Annual Quarterly Monthly Weekly Daily THE PLANNING & EXECUTION SYSTEM 38 Team Meetings / Activities Strategic Plan PlanManagementAnnual&Budget BoardQuarterlyReport,OKRs Monthly Mgt. KR Reports TheLegendWeekly Daily Calendar AnnualMeetingPlanning AllMeetingHands BoardQuarterlyMeetings Monthly Mgt. KR Meetings The LegendMonday&FridayWIR Communications&Reporting
“TvA” 39 The most powerful three letters in planning and execution
TOOL The Master Planning Tool Word Document 40
BREAKOUT GROUP ACTIVITY • Question 1:What does your company look like in 20 year? (Vision) • Question 2: How are you going to get there – what do you do? (Mission) • Question 3:What are you obsessed about doing better than others? How do you win? (Strategy) • Question 4:What do you care about? What guides your decision making? (Values) Answer these 4 questions and…you have your guiding statements! 41
Part 6: Summary 42
The
SUMMARY Strategic Plan is your internal plan to win. It is the plan for all subsequent plans. Strategic Plan is 1/5 of the Guiding Statements (5 years). Strategic Plan is used to develop the Annual Management Plan (AMP) - your plan to execute throughout the year.
Writing down a plan will make you more successful.Telling people about it (i.e., your Board, management team and staff) will make you more successful. Looking at it every quarter, month and week as you set your I MUSTs and map time to your calendars make you even more successful.
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The
The
Part 7: Assignment 44
1. Use your calendar: Set your three I Musts for the week and map all your time to your calendar. Set one of the I Musts to work ON the business.
ASSIGNMENT
2. The ON the business I Musts: Set aside 3 hours to review your guiding statements and reread these slides. Build a 5-year strategic plan (use the tools and slides).
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3. For the next session: Be prepared to share what you learned when you looked at your guiding statements and your strategic plan.
REFLECTION TIME Take 5 minutes to fill out your module question: –What did you learn? –What will you immediately apply to your company? 46
47 Thank you! www.renewstrategies.com
THE AMP ALIGNS TO THE STRATEGIC PLAN 48 2023AMP2022AMPAMP2019 2020AMP 2021AMP 5 AMPsToday strategic5-yeargoals
QUARTERLY OKRS ALIGNS TO THE AMP 49 Q4 OKRsQ1 OKRs Q2 OKRs Q3 OKRs 4 Quarters Q1 Q2 Q3 Q4 AnnualGoals
MONTHLY WORK ALIGNS WITH QUARTERLY OKRS 50 KRs KRs KRs 3 Months M1 M2 M3 QuarterlyOKRs
I Musts WEEKLY LEGEND/I MUSTS ALIGN TO MONTHLY KRS 51 I Musts I Musts I Musts 4 Weeks W1 W2 W3 MonthlyKRs W4
DAILY ACTIVITIES/MEETINGS ALIGNS WITH WEEKLY I MUSTS 52 MeetingActivity/M WeeklyIMusts MeetingActivity/T MeetingActivity/W MeetingActivity/Th MeetingActivity/F 5 Days Map your I Musts to your Calendar!
A GREAT AMP • Time period: 12 months (1 year). • Updated: Mid-way (June / July). • Prep time: A week. Need to be constantly assessing changes in the market, and the company. • Development time: ~2 days by senior management team. • Document length: 3-7 pages with the roadmap (a.k.a. project plan) • Input: The strategic plan. • Elements: 1) Current state; 2) 12-month Future State with concise SMART goals; 3) Projects to be executed by each unit in the org structure. • Purpose / use: To hit budget targets and advance the company towards the Strategic Plan. 53
INPUTS TO THE AMP 54 The ManagementManagementAnnualPlanTheAnnualPlanStrategicPlanBudgetLast ManagementLastStatementsFinancialYearsYear’sAnnualPlan Reviewed monthly and updated quarterly Reviewed monthly. Updated mid-year Hit targetsAMPHitbudgettargets.Buildcash!!Team managementandinput Execution Battle Rhythms Execution Battle Rhythms