Strategic Planning

Stuart Hazell PhD MASM GAICD

Fusidium Pty Ltd

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 Strategic Planning
We’re all going away for a weekend to the Sunshine
Coast to do our strategic plan.
The Chairman will be coming on the first day to
provide a few words of inspiration.
We have hired a good facilitator and this will be a
fun weekend that will show us the way forward for
the next year.
After the weekend we have a week to write up a
document for the Board meeting.

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 Strategic Groan
• Love fest
• Glossy document full of self-serving
motherhood statements
• Ends up in the bottom drawer

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 Is
Strategic Planning
important?

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 Is
Effective Strategic Planning
important?

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 Panbio’s Performance
2002 - 2007
Earnings Profile

$3,000
$2,000
EBIT (A$ x1,000)

$1,000
$0
EBIT
-$1,000
EBIT before HA
-$2,000
-$3,000
-$4,000
-$5,000
2002 2003 2004 2005 2006 2007
Financial Year

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 Panbio’s Performance
2002 - 2007
Earnings Profile

$3,000
$2,000
EBIT (A$ x1,000)

$1,000
$0
EBIT
-$1,000
EBIT before HA
-$2,000
-$3,000
-$4,000
-$5,000
2002 2003 2004 2005 2006 2007
Financial Year

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 If Strategic Planning is so
important why is it done so
badly?

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 Overview
• Vision
• Mission
• The Strategic Plan
• Operational Plans
• Staff Action and Development Plans

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 Vision
“We shall not flag or fail. We shall go on to the
end. We shall fight in France. We shall fight on
the seas and oceans. We shall fight with growing
strength in the air. We shall defend our island,
whatever the cost may be. We shall fight on the
beaches. We shall fight on the landing grounds.
We shall fight in the fields and in the streets. We
shall fight in the hills. We shall never surrender.”

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 Mission
"I believe that this nation should commit itself
to achieving the goal, before this decade is
out, of landing a man on the moon and
returning him safely to the Earth."

Robert F Kennedy

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 Mission

Landing a man on the moon and

returning him safely to the Earth.

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 Strategic Plan
The Vision and the Mission frame the
Strategic Planning process; however, the
outcome of the Strategic Planning may
change the Vision and Mission.

Strategic Planning is hard work, which only

pays off when you get it right.

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 Developing a Strategic Plan
• A Strategic Plan is an Outward Looking
Document
• Linked to those who will determine your
success – your Strategic Partners

Note: your Strategic Partner may not be on your side!

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 Strategic Plan
• Realistic and grounded in research
• Long horizon
• On the desktop with total buy-in
• Measured and reported on
• Reviewed regularly
• Linked down to operational plans

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 Developing a Strategic Plan
• Know your industry and where it is going
• Know your business and where it wants to go
 SWOT
• Spend some money
• Don’t reinforce your bias and blind spots
• Don’t believe your own PR
• Talk to at least 3 authoritative persons for each internal opinion
• Break the circle
• The strongest voice is not always right
 Where do you fit
 Barriers to entry and cost of entry

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 Developing a Strategic Plan
•Who Determines Your Success (Strategic Partner)
 Customers  Regulators
 Staff  Distributors
 Shareholders  Key opinion leaders
 Suppliers  Competitors
 Tax office  Potential acquirer (M&A)
 Financial institution  Granting body

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 Developing a Strategic Plan
•Who Determines Your Success (Strategic Partner)
 Customers  Regulators
 Staff  Distributors
 Shareholders  Key opinion leaders
 Suppliers  Competitors
 Tax office  Potential acquirer (M&A)
 Financial institution  Granting body

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 Strategic Partner Strategy
Exclusivity Reliable supply Trading terms
Value for customers Product training Marketing support

Profit Price Distributor Technical support

Profit Price Company Market intelligence

New product ideas Revenue growth Trading terms

Improved sales of slow moving lines Forecasts Stock levels

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 Strategic Partner Strategy
Distributor Strategic Issue Strategy
being Addressed
To increase sales of slow Pricing Revise pricing matrix to encourage
moving product lines and facilitate
Marketing and Sales Increase provision for product and
training sales training
Product range Increase product range to
complement fast moving products
To increase the level of Revenue potential Use sales promotion incentives to
stock held by distributor drive stocking of pipeline
Trading terms Direct trading terms to encourage
and facilitate
To drive new product ideas Exclusivity Offer first to launch rights
from distributor Revenue potential Provided extended discount from
list price to idea generator

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 Strategic Plan

Remember, not doing something or stopping

an activity can be as an important outcome as
planning a new action.

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 Biotech Start-up Strategic Plan
•Who Determines Your Success (Strategic Partner)
 Customers  Regulators
 Staff  Distributors
 Shareholders  Key opinion leaders
 Suppliers  Competitors
 Tax office  Potential acquirer/IPO investors
 Financial institution  Granting body
 Angel investors  VC fund

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 Biotech Start-up Strategic Plan
•Who Determines Your Success (Strategic Partner)
 Customers  Regulators
 Staff  Distributors
 Shareholders  Key opinion leaders
 Suppliers  Competitors
 Tax office  Potential acquirer/IPO investors
 Financial institution  Granting body
 Angel investors  VC fund

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 Strategic Partner Strategy
Understand the Business Plan - Who, What & When
Exit Strategy
Profit Angel Investor Be involved

Profit Company Funding

Access to Networks Management support

Business development and succession strategy

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 Developing a Strategic Plan
• When you have the Strategic Plan, set:
 Targetsand timelines
 Accountability
 KPIs
 Review framework

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 Process So Far
• Vision – Framed by the Board and
developed by the CEO (may take weeks,
months or years)
• Mission – Defined from and by the Vision.
Developed by the CEO and Executive
Team and approved by the Board (weeks or
months)

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 Process So Far
• Strategic Plan – Driven from the Vision and
Mission. Grounded in real work and solid
intelligence. Developed by the CEO and
Executive Team and approved by the Board
(months).
• The Strategic Plan may redefine the Vision
and Mission.

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When you have a Strategic Plan

Push it down

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 Operational Plans
• The operational plan is in essence the actions that
will improve the efficiency and performance of the
business internally while serving the strategic
objectives of the organisation.

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 Operational Plans
• Must be linked to Strategic Plan
• Inward looking
• Realistic and grounded
• Competence based
• Short horizon
• On the desk top with total buy-in
• Measured and reported on weekly and monthly
• Reviewed regularly
• Linked to individual goals of team members
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 Operational Plans

Elements of a Marketing Operational Plan

Critical Element Action
Pricing • Consolidate pricing to a common base.
• Establish volume and value criteria for direct customers to enable the Sales
Dept. the authority to negotiate pricing based on volume.
• Introduce annual pricing review
Forecasting • Revise forecast monthly & report accuracy.
• Include Sales, Operations & Planning meeting into forecasting procedure.
• Prioritise forecasting requirements by product.
• Develop accuracy targets that ensure sufficient stock to meet order fill rate
targets, while keeping inventory level acceptable.

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Individual Goals and Employee Development

• Individual goals linked to Operational Plan

• Short horizon
• Measure, review and report regularly (6 monthly
cycle)
• Critically assess competence
• Link training needs to company objectives first,
but look to personal development and succession
planning also
• Ensure staff understand linkage to their actions to
overall vision and mission
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 Performance Linkage
Vision

Mission

Strategic Plan

Unit Operational Plan Unit Operational Plan

Individual Performance Goals Individual Performance Goals

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 The Fish Rots from the Head
• The CEO is accountable to the Board and
Shareholders for the success or failure of
any venture.
• The CEO must lead.
• The CEO should be the champion of the
Strategic Planning process.
• If members of the Executive Team are not
onboard, they’re not onboard.

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 Recommended Reading
• Good to Great – Jim Collins (Harper Business)
• Strategic Factors – Graham Kenny (President Press)
• Monash: The Outsider Who Won a War –
Roland Perry (Random House)

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