WELCOME TO:

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WELCOME TO

• BREAKTHROUGH BUSINESS PLANNING FOR
• GROWTH-ORIENTED COMPANIES
• Presented By
• Bruce Hodes
• CMI
• 711 South Boulevard, Suite 10
• Oak Park, IL 60302
• Ph 800-883-7995, Ph 708-383-7970
• Fax [phone]
• E-mail bhodes_at_cmiteamwork.com
• Web www.cmiteamwork.com

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POEM BY A.J. CRONIN

• Life is no straight and easy corridor along
• which we travel free and unhampered,
• but a maze of passages,
• through which we must seek our way,
• lost and confused, now and again
• checked in a blind alley.
•  
• But always, if we have faith,
• God will open a door for us,
• not perhaps one that we ourselves
• would ever have thought of,
• but one that will ultimately
• prove good for us.
•  
•  
•  

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HERE ARE THE OBJECTIVES OF THE SESSION

• To demonstrate simple ways and techniques
• you can use for business and strategic
  planning.
• To help you think through your differentiation
  strategy and branding.
• How to select the right issues.

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• How to select the right team, and design it so
  that the members own the process and can
  implement the plan.
• To promote dialogue between participants on
  business planning, differentiation and strategy.
• To learn and have fun in a new way!

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GROUND RULES

• This is highly participative and an aerobics
  class.
• Be safe be aware of yourself and others.
• Ask a lot of questions.
• Be prepared to apply this material.

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TENT POLE

• Did the teams collaborate?
• What was the customer service strategy?
• Where was high performance?

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• What is the meaning of life?
• What is the purpose of business?

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• What is the Holy Grail in business?
• Being the only game in town?
• OR
• How can you be a big fish in a small pond?
• Taken From Simplified Strategic Planning
• by Robert Bradford and J. Peter Duncan

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THE KEY STRATEGIC QUESTIONS

• Who do we sell to (target customers)?
• What do we sell?
• How can we beat or avoid the competition?

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• You cant be all things to all people
• Why should people buy repeatedly from you?

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• SPECIALTY
• Unique product or packaging
• Market perceives clear superiority
• Sales result from having the right product
• Strong margins/profits per unit

• COMMODITY
• Little differentiation
• Substitutability
• Sales result from low price
• Weak margins/profits per unit
• Taken From Simplified Strategic Planning
• by Robert Bradford and J. Peter Duncan

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DISCIPLINE OF MARKET LEADERS

• The business must have competence
• and strength in these capacities.
• Customer intimacy
• Product innovation
• Operational excellence could be the price
  leader
• The question that needs to be agreed upon is
  what
• competency do we lead with?

Adopted from, The Discipline of Marketing
Leaders, By Treacy and Wiersema
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HEDGEHOG PRINCIPLE

• Taken from Good To Great
• By Jim Collins

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STRATEGIC COMPETENCIES TEST

• Is it a combination of skills, processes and
  knowledge?
• Does it differentiate the company from the
  competition?
• Does it create strong value for the customer?
• Is it difficult to copy?

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DIFFERENCES BETWEEN A MANAGEMENT TEAM AND A
COMMITTEE

• Many management teams arent teams at all. They
  are committees. In teams, every member focuses
  on a common goal scoring a touchdown,
  dominating a market. In committees, members
  represent different functions or businesses and
  act to protect the interest of their spheres.
  This is the so-called stovepipe effect. If the
  management group is operating in a stable
  situation, a committee often works effectively.

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• But during times of stress and change, committees
  tend to table core issues, because the resolution
  of those issues would necessarily change the
  balance of power and influence. Few managers
  tolerate having others wrestle away their coveted
  position in the pecking order.
• Taken from The Discipline of Market Leaders
• By Treacy and Wiersema

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SIMPLE PLANNING
S

• trengths
• eaknesses
• opportunities
• hreats

W
O
T
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ONE PAGE BUSINESS PLAN

• The unique business proposition defines who you
  are as an organization and what you do in no less
  than superlative terms. It should describe your
  company in a way that can make you a market
  leader and help your people understand the
  business. Example Snapper is the 1 brand of
  lawnmowers sold through servicing dealers in
  America.
• Purpose identifies your customers and how you
  serve them. You must be the best in the world at
  this, or else be lowest price and commodity
  status.
• The goals section states your overall goal and
  can also include one or two other key
  company-wide performance objectives. As an
  example, our goal is to take GAC from 60 to 100
  million in sales over the next three years.

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• Strategy explains in general, yet fairly focused
  terms, where the company needs to go and how
  everyone will get it there.
• Short term objectives
• Long term objectives

Adopted from, CEO TOOLS  By Kraig Kramers
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DEPARTMENTAL/COMPANY PLANNING

• 2004
• Achievements/successes for 2004
• Disappointments for 2004
• What did we learn as a department/company in
  2004?
• What are our department/company strengths?
• What are our department/company weaknesses?
• Take the team audit from The 5 Dysfunctions of a
  Team, what will you do this year to improve your
  scores?

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• 2004 (continued)
• Of these strengths and weaknesses, which ones do
  we need to deal with in the next year?
• What are some ideas to improve the departments
  customer service towards internal customers and
  external customers?
• What are some ideas to improve the departments
  customer service towards internal customers and
  external customers?
• Opportunities facing the department/company.
• What unresolved issues face the
  department/company? How will we resolve them?
• Ideas to improve the department/company.

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• 2005
• What is the purpose and mission of the
  department/company?
• What is a measurement system that the
  department/company will use to determine if it is
  progressing in the desired direction and
  attaining its objectives?
• What are the departments/companys clear
  measurable objectives in 2005
• What objectives need action plans and who is
  writing them? Who are the champions of the
  objectives?

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• 2005 (continued)
• When and how will we monitor our progress on the
  objectives
• What individual and group projects and
  commitments are you committing to
• What is the departments/company's meeting
  structure? When? Who sets the agenda
• What are the departments/company's ground rules?

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CMI PLANNING PROCESS

• Day 1 Big Picture and concerns analysis
• Day 2-3 Response formulation
• Action planning
• Day 4 Focused implementation

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DAY 1

• Overview
• What has been accomplished?
• What are our disappointments?
• What have we learned?
• Strategic questions 2 versions
• What are the key strategic questions facing us?

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DAY 1 (CONTINUED)

• Market segment analysis
• External business opportunities
• Internal opportunities
• Critical strengths and weaknesses
• Homework selection

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DAY 2 (2-4 WEEKS LATER)

• Where is our industry going?
• Industry profile 12-18 months
• What would a winning company do?
• Homework review - critical issues

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DAY 2(CONTINUED)

• Homework and Strategic Issues and Review,
  understanding and discussion (just the gold)
  first pass
• Response to Strategic question
• Threats what threatens us?

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DAY 3 (THE NEXT DAY)

• Strategic issues, unresolved problems
• How could you shoot yourself in the foot?
• Mission statement
• Goal 12-18 months
• Objectives 12-18 months
• Set up action plan teams

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DAY 4(2 WEEKS LATER ½ DAY)

• Review actions plans
• Issues around implementation
• Create the continuing structure and ongoing
  support

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RESOURCES ON PLANNING

• The One Page Business Plan
• By Jim Horan
• Simplified Strategic Planning
• By Robert W. Bradford and J. Peter Duncan with
  Brian Tarcy
• CEO TOOLS The Nuts and Bolts of Business for
  Every Managers Success
• By Kraig Kramers

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AS YOU LEAVE, REMEMBER

• There is very little difference between one who
  does not know, and one who does not use what one
  knows
• USE THIS STUFF OR YOU WILL LOSE IT!

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THANK YOU!

• Bruce Hodes
• CMI
• 711 South Boulevard Suite 10
• Oak Park, IL 60302
• Phone [phone]
• Fax [phone]
• www.cmiteamwork.com
• bhodes_at_cmiteamwork.com