Strategic and Business Planning
Management 1
The New Manager’s Course
Alan Kennedy
April 2017
© 2017 by Alan W. Kennedy on behalf of Schulich Executive Education Centre (SEEC). All rights reserved.
No part of this publication may be reproduced, stored in a retrieval system, or transmitted
in any form or by any means, electronic, mechanical, recording, photocopying or otherwise,
1 of the copyright holder
without written permission
©
Instructor
Alan Kennedy B.A. LLB. CMC
Alan is a partner with Gibson Kennedy & Company, a Toronto consulting firm offering Canadian clients
strategy research and communication services. Alan focuses exclusively on preparation of strategic
plans, business plans, and strategy briefing materials.
Alan has been teaching strategy for the Schulich Executive Education Centre since 1992. His principal course is Strategic
Management, a three day course on Situation Analysis, Strategic Planning, and Business Planning.
Alan’s book, The Alpha Strategies – Understanding Strategy, Risk, and Values in Any Organization, won a Kirkus Star; an
award given to “a work of exceptional merit”. The book is listed by Kirkus Reviews in its Best Books of 2013.
Alan is a Honor Roll member of the Canadian Association of Management Consultants. Alan received his degrees from
Dalhousie University and served as Senior Vice President & General Counsel for both Oxford Development Group and
Campeau Corporation and as a member of the Board of Directors for both companies.
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The Day’s Objectives
1. How strategy is developed
1. How to make sense of any strategic plan
2. How to develop a functional business plan
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Module One
How strategy is developed
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Module One Objectives
- to define strategy
- to identify the 2 factors driving strategy development
- to use the 8 & 3 strategy model
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A definition of strategy
Strategy is a choice of action
“Our long term strategy is to be around for a long time.
Our short term strategy is not to do anything
that could screw up our long term strategy”
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2 Factors Driving Strategy Development
1.
Imposed Expectations
2.
External Reality
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Rafferty’s choices of Action
Too Late to Change
Employee’s Fault
Company’s Fault
Not Too Late to Change
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8 strategies common to all organizations
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Scope of the 8 Strategies
Business Definition:
(Public Sector / NFP) Mandate:
Risk
Growth
Financial Management
R&D / Technology
Organization Mgmt
Marketing / Sales
Communications
Service Delivery / Production /
Manufacturing
Positioning the business in the external environment
Interpreting the mandate parameters
Identifying and managing the possibility of occurrence of the
unacceptable
Identifying and managing the type and rate of growth
Sourcing, allocation, & management of capital & revenues
Sourcing, allocation, and management of intellectual capital &
technology
Sourcing, allocation, and management of personnel
Identifying, attracting, and capturing customers / clients
Fulfilling the marketing/sales promise of value / relevance
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3 types of strategy common to all organizations
Dominant Strategy
of the firm
There can only be
one Alpha
2 or 3 of the remaining
strategies that most
guide and constrain the
Alpha and the Enablers
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Enablers are the
remaining 4 strategies
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Module One Objectives
- to define strategy
- to identify the 2 factors driving strategy development
- to use the 8 & 3 strategy model
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Module Two
How to make sense of any Strategic Plan
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Module Two Objectives
-To define the term “strategic plan”
-To define “vision” and “mission”
- To present the strategic plan
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Strategy Terms
Strategic Planning
A review of the 8 strategies common to all organizations to determine what
change is required because of changing stakeholder expectations and
factors in the external environment
Business Planning
Any subsequent strategy planning to implement the expectations of the
Strategic Plan
Vision
A description of the successful outcome from long term pursuit of dominant
strategy
Mission
The Business Definition / Mandate strategy
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Module Two Objectives
-To define the term “strategic plan”
-To define “vision” and “mission”
- To present the strategic plan
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Module Three
How to develop a functional business plan
Part 1: Expectations Identification
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Module Three Objectives
- To understand SWOT analysis better
- To understand what should be in a functional business plan
- How to identify expectations imposed by the strategic plan
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SWOT
Under Rafferty’s Control (Strengths / Weaknesses)
Not Under Rafferty’s Control (Opportunities / Threats)
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Business Plan Content
1. Strategic Plan Linkage
- Description of intent and rationale of the strategic plan
- Broad description of the impact on functional activities
2. Facts
- Description of current functional activities
- Description of expectations imposed by the strategic plan
3. Analysis
- Changes, if any, in expectations imposed on the function
- Impact of changed expectations on the function
- Reconciliation of external reality with expectations
- Priority of expectations
4. Strategy
- Broad description of action to achieve priorities
- Budget and resources implications
- Performance measures and mile stones
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Bulwark Securities Strategy Configuration
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Strategic Plan Review
Present Strategy
Strength
Business
Definition
Retail Securities Broker
S
Risk
Compliance
S
Growth
Internal
S
Financial
- Owner Capital
- Commissions / Fees
S
Technology
Enabler
S
Organization
Design
Head Office
Compliance / Sales Offices
S
Marketing/Sales
Transactional
Operations
Outsourced Clearing
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Weakness
8 Strategy
Framework
W
S
Major External Factors
Identified
Customers
Competitors
Industry Change
Trends
Best Practices
Technology
Markets
Suppliers
The Economy
Interest Rates
Laws / Regs
Globalization
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Strategic Plan Review
8 Strategies
Present Strategy
Business
Definition
Retail Securities Broker
Risk
Compliance
Growth
Internal
Financial
Owner Capital / Low Capital
Technology
Enabler
Org. Design
- Head Office
- Compliance / Sales Offices
Marketing/Sales
Transactional
Operations
Outsourced Clearing
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∆
∆
∆
∆
∆
∆
∆
∆
∆
Proposed Strategy
Same
Same
Same
Same
Same
Same
Full Service Products
Same
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Strategic Plan Review
Strategy Element
Business
Definition
Risk
Growth
Financial
Technology
Org Design
Marketing/Sales
Operations
∆
∆
∆
∆
∆
∆
∆
∆
∆
Proposed Strategy
Implementation
Impact
Retail Securities Broker
Compliance
Internal
Owner Capital / Low Capital
1. PSA Product
Enabler
- Head Office
- Compliance / Sales Offices
2. H.R. -Training
Transactional
3. Sales Function
Outsourced Clearing
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The Impact of Change
Industry
Change
Full Service / Better Service
Impact on
Company
Need to Reposition Products & Services
Company
Response
Launch of Assurance Funds & PSA
Impact on
Branches
Need to Adapt to New Products
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Expectations
 Exceeding Expectations
 Meeting Expectations
 Not Meeting Expectations
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Ontario Premier’s Expectations
September 25, 2014
The Honourable Charles Sousa
Minister of Finance
Ministry of Finance
7 Queen’s Park Crescent
Seventh Floor, Frost Building South
Toronto, Ontario
M7A 1Y7
Dear Minister Sousa:
I am honoured to welcome you back to your role as Minister of Finance. We have a strong Cabinet in place, and I am confident
that together we will build Ontario up, create new opportunities and champion a secure future for people across our province.
The people of Ontario have entrusted their government to be a force for good, and we will reward that trust by working every
day in the best interests of every person in this province.
Our Speech from the Throne outlined a number of key priorities that will guide your work as minister.
Growing the economy and helping to create good jobs are fundamental to building more opportunity and security, now and in
the future. That critical priority is supported by strategic investments in the talent and skills of our people, from childhood to
retirement. It is supported through the building of modern infrastructure, transit and a seamless transportation network. It is
supported by a dynamic business climate that thrives on innovation, creativity and partnerships to foster greater prosperity. And
it is reflected across all of our government, in every area, and will extensively inform our programs and policies.
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Boeing Goal Flowdown / Expectations Process
http://patapsco.nist.gov/Award_Recipients/PDF_Files/Boeing_Aerospace_Application_Summary.pdf
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Military Use of Expectations-Based Planning
a.k.a. Expectations
Source:
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8 Strategy Expectations
Strategy Element
Over the next 2 years,
what expectations are being Imposed on Rafferty in his role as Branch Manager
Branch
Mandate
Risk
Growth
Financial
Management
Technology /
R&D
Organization Mgmt
Sales / Marketing
Service Delivery
(Back of House
Processing)
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Module Three Objectives
- To understand SWOT analysis better
- To understand what should be in a functional business plan
- How to identify expectations imposed by the strategic plan
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Module Four
How to develop a functional business plan
Part 2: Planning to meet expectations
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Module Four Objectives
- How to reconcile expectations with external reality
- How to prioritize expectations
- How to turn expectations into action
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Expectations Testing
Meet Old Expectation
2 years
Not Meet New Expectation
Meet New Expectation
Today
Not Meet Old Expectation
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Simple Pros & Cons Analysis
Expectation:
Pros
Cons
Expectation:
Pros
Cons
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Criteria Loaded Pros-Cons Analysis
Expectation 3
3=High
Expectation 2
1=Low
Expectation 1
Criteria
1. Impact
• Financial - Will meeting the expectation deliver the desired financial results?
2. Fit
• Principles / Values -Does the expectation fit our principles and values?
• Priorities - Is the expectation consistent with the strategic plan?
3. Chances of Success
• Ability to Implement - How difficult will meeting the expectation be?
• Supporting Assumption - What assumption supports meeting the expectation?
• Contingency Plan - What do we do if we can’t meet the expectation?
4. Cost
• Funding – What funding do we need to meet the expectation?
5. Timetable
• Timing – How long will it take us to implement action to meet the expectation?
Total
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Implementation Planning
6.
4.
Meet Expectation #1
G
3.
5.
2.
E
D
B
Today
C
Meet New Expectation #2
1.
Not Meet Expectation #2
F
Not Meet Expectation #1
A
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Implementation Planning
Steps
What
Brief description possible action
Meeting Expectation #1
1.
Getting from A to B
3.
Getting from C to D
5.
Getting from E to F
Meeting Expectation #2
2.
Getting from B to C
4.
Getting from D to E
6.
Getting from F to G
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SMART Objectives
S = specific
focuses on a specific primary activity
M = measurable
suggests a metric consistent with proposed action
A = action-related
sets obvious expectations for implementation
R= realistic
e.g. consistent with imposed expectations & external
reality
T = time-bound
can be completed within a prescribed time frame
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Module Four Objectives
- How to reconcile expectations with external reality
- How to prioritize expectations
- How to turn expectations into action
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The Day’s Objectives
1. How strategy is developed
2. How to read and make sense of a strategic plan
1. How to develop a functional business plan
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