Productivity Leadership Program Productivity Growth in the Passenger Transport Industry through Best Practice An initiative of the Australian Chamber of Commerce and Industry (ACCI) through funding provided by the Federal Department of Employment. The mission of ACCI's Productivity Leadership Program is to develop education and skills to support cooperative and productive workplace relations that promote national economic prosperity and social inclusion for all Australians.

Driving the Performance of your Business Strategy, A forgotten ingredient of business success

Dr. Richard Shrapnel, PhD Executive Director Phone: Amanda Roberts Assistant Manager Phone: David Fennell Senior Manager Phone:

The current landscape. What does strategy really mean? 7 Steps to effective strategic planning What else can I do to capture value? Business continuity, succession and evolution Agenda Strategy, A forgotten ingredient of business success

Government Changing geographic regions Tendered environment Increasing regulation Reporting, KPIs – financial and non-financial Increasing competition Market consolidation The current industry landscape Strategy, A forgotten ingredient of business success

Strategy… Allows an organisation to focus on what really matters Strategy… Identifies actions that drive performance Strategy… Aligns your organisation Strategy… Enables decisions Strategy… Creates a conversation Strategy… Allows a business to capture value What does strategy really mean? Strategy, A forgotten ingredient of business success

What does strategy really mean? Strategy, A forgotten ingredient of business success What drives capital value in a bus business? Is it… Fleet of buses?… Depots?… Geographic location?... Contract? Or is it… Your staff… your culture… your relationships? The way you schedule… How you ‘work your operations… your business’?

Strategic planning workbook Strategy, A forgotten ingredient of business success Adapts a successful process for Bus Industry Operators to use Process has been successfully adapted for a broad range of businesses and industries Based on best practice methodologies Developed over 15 years by Dr. Richard Shrapnel, PhD

7 steps to effective strategic planning Strategy, A forgotten ingredient of business success 1.History 2.Strategic analysis and thinking 3.The organisation 4.The future 5.Financial validation 6.Risk management 7.Implementation

7 steps to effective strategic planning Strategy, A forgotten ingredient of business success 1.History  Business assets  Capabilities  People and culture  Organisational structure “Understanding and appreciating the history of your business today is the starting point to building an effective strategy”

7 steps to effective strategic planning Strategy, A forgotten ingredient of business success 1.History Some key questions  What has been the vision for your business?  What have been the key events in your business?  What is it your business is really good at?  What does your brand represent?  What are your strategic assets?

7 steps to effective strategic planning Strategy, A forgotten ingredient of business success 2.Strategic analysis and thinking  Marketplace  Competitive landscape  Positioning “Strategic analysis and thinking considers three key pieces and both how they relate to you and how you relate to them!”

7 steps to effective strategic planning Strategy, A forgotten ingredient of business success 2.Strategic analysis and thinking Some key questions  What are the characteristics of the market place?  Who are your major competitors and why?  How do you compete in the market place today?  How are you going to compete moving forward?  What is your value proposition?

7 steps to effective strategic planning Strategy, A forgotten ingredient of business success 3.The organisation “How are you going to align your organisation to deliver on the strategic direction of your business?”

7 steps to effective strategic planning Strategy, A forgotten ingredient of business success 3.The organisation Some key questions  What values are important and why?  What are the key elements of the organisation that you need to align with the vision?  Are there elements that do not align?  How do you measure performance across the business?

7 steps to effective strategic planning Strategy, A forgotten ingredient of business success 4.The future “Simple guiding principles reinforce a business’s competitive posture on a daily basis. Continual recognition of an organisation’s competitive strategy will ensure its continued relevance, strength and sustainability” How are you going to communicate? Have you run alternate scenario’s? How are you going to react to challenges? What are your guiding principles? What is going to underpin your success?

7 steps to effective strategic planning Strategy, A forgotten ingredient of business success 5.Financial validation “Validating your strategy through with financial forecasts allows you to understand the financial impact on your business”  Asset investment  Debt and/or equity  Profit margin and cash flow  Return on equity, investment, assets  Scenario analysis, what-if

7 steps to effective strategic planning Strategy, A forgotten ingredient of business success 5.Financial validation Some key questions  Financially, how do you measure success?  What are the key revenue and expense metrics that are important to monitor?  Have you developed an integrated forecast model?  Does your forecast model reflect the strategic direction of the business ?  Can you financially stress test the business and run alternative scenarios?

7 steps to effective strategic planning Strategy, A forgotten ingredient of business success 6.Risk management “Identifying, classifying and understand how you are going to manage and mitigate risk helps to protect your business in an uncertain future”

7 steps to effective strategic planning Strategy, A forgotten ingredient of business success 7.Implementation “The success of a competitive strategy lies in its implementation and execution”  Compelling reasons…the impetus for action  Action… stepping stones  Achievable timeframes  Specific outcomes  Measurable outcomes

Some additional thoughts as you undertake a strategic planning exercise Strategy, A forgotten ingredient of business success 1.Look at your current business through a future lens 2.Work through the strategic planning workbook 3.Pull your key staff into the process 4.Challenge, stress test, plan and then implement 5.Align your measures to your strategy 6.Strategic planning is an ongoing business function

Business continuity… succession and evolution “Succession, as much as strategic planning is fundamental in determining the capital value… worth… market price of your business.” “ Enabling the compounding of wealth from generation to generation while ensuring family unity, individual growth and business sustainability and continuity” Succession = Business evolution

Business continuity… succession and evolution Succession = Business evolution Pitcher Partners Key Findings - Global Survey

Dr. Richard Shrapnel, PhD Executive Director Phone: Amanda Roberts Assistant Manager Phone: David Fennell Senior Manager Phone: Questions?

Driving the Performance of your Business Pitcher Partners would like to thank the Federal Department of Employment and the Australian Chamber of Commerce and Industry (ACCI).