Strategic Planning From A to Z ! Joel Felten VP – Information Systems

Strategic Planning Process

Set the Direction

Set the Direction – H, I Conduct SWOT & Results Review January

Set the Direction – J – Create Strategic Objectives January 2013 Strategic Objectives2012 Actual #1 Maintain Customer Satisfaction at 93%93.0% #2 Improve Employee Satisfaction to 86%85.0% #3 Maintain Vendor Satisfaction at 92%94.0% #4 Improve Shareholder Satisfaction to 100%99.7%

Deploy the Strategic Objectives – K February, May and August Innovation Sources include: Employees, Customers Vendors, Shareholders Strategic Planning Meetings *Ideas also used in process management process to improve processes To all employees Employees submit ideas for Action Plans. Employees help identify blind spots. CEO and SLT

Deploy the Strategic Objectives – L Ideas Categorized February, May and August Customer Employee Vendor Shareholder Cross Dock Nitro Express 2.0 Employee Center Program Operation Grand Slam MidwayUSA Loyalty Credit Card Process Mgt Process Redesign

Create Strategic Plan – R, S, T – Analyze, Select and Prioritize Action Plans October – October Initiative (1)EffortPriority (1)RangeDept (1) ODA - Operation Double Action ImprovementsMajor AD ODA - Ship Ready ImplementationMinor LO ODA - Single Product and Single Item Order Batch ProcessingMinor LO Nitro Express 2.0Super Major LO ODA - Operation Grand SlamMajor AD ODA - Mobile ShipQC ImplementationMinor LO ODA - Backorder Release and Batch Assemble RewriteMajor IS ODA - Cross Docking of Single Line BackordersMinor LO Customer Backorder ManagementMajor ME ODA - Contact Us/Customer Service Strategy RedesignMajor EC ODA - Website Sign-in and Checkout Re-engineeringMajor EC VAT RedesignMajor ;#2013ME 2010-International Business Model Improvement (CAP Carry)Major ;#2013ME Product Center Re-engineering to Support Merchandising Work SystemSuper Major ;#2014ME ODA - Marketing Work System Re-engineeringMinor AD ODA - Returns Re-EngineeringMinor LO PH&I Re-engineering / RateshopMajor ;#2013AD Customer Database Re-engineeringSuper Major ;#2014;#2015EC Marketing Re-engineeringMinor EC Sug Order Re-engineeringMinor ;#2014AD Customer Credit Card Information HostingMinor ;#2013;#2014IS Employee Center Program ImplementationMajor ;#2014HR MidwayUSA Branded Loyalty/Credit Card Vendor SelectionMajor ;#2013FS Process Management Process RedesignMinor ;#2014HR

Create Strategic Plan – U- Integrate Strategic Plan with Workforce Planning October – October Ensure the resources needed to execute the strategic plan are integrated into workforce plans.

3 Create Strategic Plan October – October

4 Deploy the Strategic Plan – U November To the entire organization to facilitate engagement and acceptance of the plan. Company Strategies Strategic Objectives Organizational Goals Company Action Plans Departmental Action Plans

5 Execute the Strategic Plan - V January - December Implement the Action Plans on the current year’s strategic plan. This is the hardest part & greatest opportunity SLT

6 Control the Results of APs January – December

Recap Strategic Planning A-Z 1.Set the Direction (A-J) 2.Deploy the Strategic Objectives (K – P) 3.Create the Strategic Plan (Q-W) 4.Deploy the Strategic Plan (X) 5.Execute the Strategic Plan (Y) 6.Control the Results of Action Plans (Z)