1. Michael D. Ford CFPIM, CSCP, CRE, CQA, CQE Principal, TQM Works Consulting Adjunct Professor, Penn State University Master Instructor, NEPA APICS Top-down Strategic Planning: From Corporate Vision to Business Plans

2. Agenda Vision and Mission Statement SWOT Analysis Competitive Priorities Corporate Strategy Business Planning with Performance Metrics

3. Team Format Instructions Form teams of approx. 5 persons Select a leader Select a company template HAVE FUN!

4. Vision & Mission Statement What is a Vision? What is a Mission Statement? Team Action: Create a Vision and Mission Statement.

5. SWOT Analysis The process of environmental scanning Internal: strengths and weaknesses External: opportunities and threats In theory, one would expect one of these to be easier: But in practice, it’s the reverse… which is it? Team action: create your own SWOT assumptions.

6. Competitive Priorities Things we compete on Order winners Order qualifiers Order non-issues Order losers Team Action: Complete the Competitive Priority Ranking. Based on Rankings, assign order winners, qualifiers, etc.

7. Corporate Strategy Covers entire global entity Example: General Electric Based on SWOT assumptions Considers competitive priorities Marketing strategy and operations strategy Lots of words

8. Business Planning Applies to Independent Business Units (IBU’s) GE’s media services, consumer products, medical technologies, financial services Business Plans introduce numbers Market Share % Revenue, Cost and Profit Projections Cash-to-Cash Cycle Inventory Turnover Ratio Productivity per Labor Hour Revenue per Labor Hour Customer Retention Rates

9. Performance Metrics Balanced Scorecard Financial Customer Business process Learning & innovation SMART metrics (strategic, measurable, achievable, realistic, time-based targets) Scanlon plan Lumber mill: wood quality Mfg: 9 R’s of the perfect order Team Action: create appropriate performance metrics.

10. Summary Vision and Mission Statement SWOT Analysis Corporate Strategy Business Planning with Performance Metrics Any questions? Any answers?

11. Thank you for your participation! Please remember to fill out your evaluations. Leave your business card if you’d like e-copies of all handouts and the slideshow. TQM Works Consulting michaeldford@earthlink.net Training that is “edu-taining”!