The Strategic Thinking Process March 12, 2008

WHY DO WE NEED A STRATEGIC PLAN ANYWAY? Because…. if we don’t know where we are going, it is highly unlikely we are going to get there.

THE QUESTIONS ARE PRETTY OBVIOUS… Why are we here? What do we want to accomplish? How are we going to do it? What are the relevant factors in our operating“environment”? How do we stack up? How do we make sure we get there? What might happen to change things?

WHY ARE WE HERE, AND WHAT DO WE WANT TO ACCOMPLISH? We want to be very clear about our: MISSION that answers who, what, how. VISION for what we will become or the impact we will have. VALUE PROPOSITION which is our promise to our customers.

HOW ARE WE GOING TO DO IT? By having STRATEGIES for the major things we need to accomplish, internally and externally, that are linked and compliment each other.

WHAT ARE THE RELEVANT FACTORS IN OUR ENVIRONMENT? Market size, growth rate, segments. Key drivers in our industry. Competitive analysis. Distribution channels. Key constituents (customers, suppliers,funders…) Opportunities and threats.

HOW DO WE STACK UP? Effectiveness of our business model. Key drivers of profitability/expense. Capabilities, both will and skill. Core Values. Strengths and Weaknesses.

HOW DO WE MAKE SURE WE WE GET THERE? By having clear, measurable: STRATEGIC GOALS for the next 3-5 years that establish priorities. Near term OPERATING GOALS that flow out of the strategic goals. ACTION PLANS AND TIMETABLES to reach them. Routine MEASUREMENT AND FOLLOW UP.

WHAT MIGHT HAPPEN TO CHANGE THINGS? Identify events that might occur that would SIGNIFICANTLY affect the business, positively or negatively. Determine steps that should be taken to avoid or minimize/maximize the impact of the event. Identify warning indicators. Create a plan that can be activated.

IT’S A PROCESS, NOT A DOCUMENT Encompasses strategic learning, strategic thinking, strategic planning and strategic action and requires: Constant assessment and mid-course corrections. Involvement of key leaders. Their commitment and understanding. Clear communication and connection throughout the organization.

Great implementation cannot compensate for poor (or no) strategy. BUT Great strategies can fail without effective implementation.

SOME CLOSING THOUGHTS…. Stay true to your mission and be very clear about what you are trying to accomplish. Involve, integrate, communicate. Think outside the box and then get disciplined. Get the right people with the right skills in the right jobs.