STRATEGIC CORPORATE PLANNING – Vijay Chandhran.

STRATEGY

WHY? WHY? WHY? WHY? WHY?

WHY? WHY? WHY? WHY? WHY?

WHY? WHY? WHY? WHY? WHY?

Some Core Questions

Who are our Customers ?
Who are our Competitors ?
What do our Customers want from us ?
How do they compete with us ?
Who are our Suppliers ?
Why are our Suppliers important to us ?
What are the principle drivers of cost ?
How does out “Business System” create value ?

Implementing Strategy

…Is about defining what needs to be achieved, then motivating capable people to want achieve it….

Motivation through Ownership is the key

Creativity and Innovation

Creativity -----------Screening -----------Innovation
(The Input--------------------------------- (The Output)
_____________________________________
IDEAS --- CRITERIA / EVALUATION --- RESULTS

Daydreaming ------------------------------------------------- New
Navel gazing ------------------------------------------------ Better
Brainstorming --------------------------------------------- Faster
Observing others --------------------------------------- Cheaper
----------------------------------------------------- More aesthetic

Strategy is …..

….. The means of delivering Customer value and building competitive advantage….
The plan by which businesses are able to deliver the profits, growth and / or cash flow that drive VALUE Creation.


The Stakeholders

Customers* -------------------------------------- Suppliers*

------------------------- The Company

Employees* ----------------------------------- Shareholders*

Strategic Identification

· The heart of strategic planning is decentralised problem solving.
· The main strategic programmes are broken down into many action plans each with a
clearly defined responsibility, value, structure and time-scale.

Its Success…

Visible commitment to the strategy essential, through internal marketing. (Let the troops know what’s going on!)

· Use MBWA (Management By Walk About)
· Cascade down the line through the structure

Every Success should be “owned” by as many people as possible.

A Case Study showing…

· Poor profit performance
· Revenue dropping
· Losses to competition
· Poor image

Diagnosis showed perceived poor service to Customers.

Strategy:

Train all staff in interpersonal skills and Customer service.

Turbulence is a key issue – All components of the business cycle are in constant motion.

To Succeed

· Strife and turbulence must create AGILITY.
· Harmony through each of the business processes must be sought and internal
bottlenecks eliminated.
· Each “process” affecting Customer service must be measured.
· “The way we do things around here”.
· “The actions we take to reach our objectives”.
· “Our commercial way forward”.
· “Things we must do to reach our objectives”.
The approach leads to need for

· INTERDEPENDENCY – mixed function team.
· OPENESS In COMMUNICATION.
· RENEGOTIATION OF DIRECTION.

Lasting Success DOES NOT come from any individual factors. It comes from many elements, fitting together and mutually reinforcing each other.

The ORGANISATION approach is based on two thrusts:

· Continual performance of COMPANY.
· Continual performance of MARKETING BUSINESS.

Our business has its own Unique Success factors.
-----------------------------Review of
--------------------------Company and
------------------------Industry strategic
------------------------------situation

Results ------------------------------------------- Creation of “high
(Note below) --------------------------------- leverage” action plans

----------------------------Systematic
------------------------Implementation
Results
· Continually monitored , real time.
· Open communication.
· Check against plan.
· Accelerate areas of high performance.
· Review areas of poor performance.

To maintain consistency of purpose and retain flexibility, General Managers have at least six distinct but related roles and
responsibilities:

Leadership - To establish Direction and Purpose.

Selection - Choice of Direction.
- Allocating Resources.

Building - Multiple Capabilities.

Orchestrating - Available Resources.

Managing External - Balance between Partnerships, External Relationships.
Relationships

Rejuvenation - Managing continuous renewal.

High performing Companies like ours, have developed specialised assets and unique skills that add value to Customers and are hard for Competitors to copy.

Managerial Judgement

Strategy team must consider, reconsider and fully understand the main elements

· The target Customers
Profitability analysis
80 / 20 rule
· The products package
- What are we really selling ?
- What is the Customer really buying ?
· The logistics and value added chains
- How do we produce better quality at lower cost ?
- Is delivery of the service / product, what the customers NEEDS ?
· The organisation and culture (internal)
- What image do we want ?
- How do we product it ?
- Does our culture support our plans?
· The Corporate image (external)
- What image do we want ?
- How do we project it ?

Traditional Corporate ------ Traditional Corporate
Planning (1) ------------------- Planning (2)

Extension of the annual -------- Typical Statements
planning process.

· Competitors known. ----------* Sales volumes to increase by 5%.
· Industry pricing ---------------* Expenditure increase by no more
reasonably stable. -------------- than 4%.
· Customers behaviour ------- * Employee numbers to remain
understood. ----------------------constant.
· Inflation indices --------------* Capital expenditure overall to
understood. --------------------- remain at previous years level.
· Employment market understood.
· Distributor behaviour appreciated.
· Legal / fiscal implications understood