The second box in the model on the right represents Strategies. Strategies are high-level guides for the achieving your Vision. They can best be explained through examples. One area to consider and examples of what the Strategies could be:
Geographic Market Serviced:
-The south east only for 2008-9
-Throughout the US by 2012
-We never plan to service the international market
Since decisions regarding Strategies are major decisions. The leadership team should reach consensus on what they are. They can be changed at any time but only when there is agreement that a valid reason exists. For example a proposal could be made by a salesman in 2008 with what they feel is a great west coast opportunity. The Geography Strategy should not be changed without examining all implications. You might have to take resources away from existing clients to service this expansion and hurt the business overall.
The following is a list of other areas to consider for Strategies. Obviously, some will not apply for some organizations while others should be added. I am including examples to assist with understanding.
Products and Services
-Will your fundamental products and services be viable in the future
-Any fundamental changes that might be appropriate
Technology
-Our products must be on the cutting edge in our field
-7% of our budget will be allocated to R&D
Size
-Grow sales between 10-20% annually
Marketing
-The Internet will be our primary marketing tool
-1% of our sales will be focused on business journals
Distribution
-We will have distribution centers in each major region we serve and they will be outsourced
Suppliers
-A partnership relationship or the low bid gets the work
(Which approach is more appropriate for your business; do not try to do both)
Acquisitions, Alliances and Partnerships
-We will be aggressively looking for opportunities to buy small companies producing compatible products
Outsourcing
-We will outsource food services and legal services
Supply Chain
-Low inventories are required
Manufacturing Facilities
-Short set up times
-Processes are in control and capable
Offices
-We will always lease our offices and they should be located in major cities
-They will be very comfortable to our staff
Pricing
-We may charge more that our competitors but our products will demonstrate their value
-Gross margins must be between 50-80%
Organization
-Flat
-All groups are focused on a common Vision and linked measurable goals
Cultural
-An involved and empowered workforce
-Oriented toward change
-Teamwork
Personnel
-All employees will have a career path plan, an annual training plan and annual performance reviews
Compensation
-Base salaries will be in the mid range of our industry
-Large bonus potential for all employees based on organizational performance
-Total compensation will be in the top 25% of our industry
Value
-Choose the main reason people will choose to do business with you versus your competitors: Produce, Price or Customer Intimacy
(Suggest reading Discipline of Market Leaders by Treacy & Wiersema for a full understanding)
Other
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