Growth Strategy Development 8.7.08

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Information about Growth Strategy Development 8.7.08

Published on December 8, 2008

Author: aSGuest5662


Taking Your Business to the Next Level: Growth Strategy Development : Taking Your Business to the Next Level: Growth Strategy Development August 7, 2008 Nancy Wilber Growth Strategy Partners, LLC Agenda : 1 Agenda Introduction Growth Strategy Partners Research Planning Process Overview Visioning Goal Setting Assessment Method of Competition Next Steps Introductions : 2 Introductions Growth Strategy Partners LLC Growth research based consulting firm Only known consulting firm to have extensive research and experience on how companies grow Focused on implementing 7 Keys to Growth Has unique and proprietary diagnostic and implementation tools Strategic Growth Analysis Best Practices Strategic Planning Leadership Assessments Partners with clients to develop long term, sustainable growth Growth does not occur in a few months Our goal is to help you be successful Very successful results! Nancy Wilber Partner - Growth Strategy Partners Experienced entrepreneur – started two companies 30 + years of experience 3 years consulting, 30 year industry Strong skills in: General management, Growth Management, Strategic Planning & Performance Management, Product Management, Sales & Marketing, Coaching, Organizational Development Industry experience in: Office furniture and office products, construction, software, business services, printing, IT, transportation, automotive, manufacturing & distribution, consumer products & other Mission: To help companies grow their revenues, profits and talent. Why Planning is Important : 3 Why Planning is Important First Key to Growth Effective Growth Planning – creates the focus, alignment and discipline to drive business success. An effective growth plan provides strategic direction for the company, defines goals and the strategies and plans to achieve them. Planning is not an event…it’s a journey Documenting critical assumptions supports changing course when necessary Company’s shouldn’t plan in a vacuum, but with a full understanding of internal and external factors impacting their business It’s not what you know…it’s what you do about it. Slide 5: 4 Growth Planning Process Overview VISIONING – Mission, Vision & Values : VISIONING – Mission, Vision & Values Mission, Vision and Values (MVV) statements provide direction to the company and its employees. It is a short hand way of communicating to employees and other critical parties what is important to the company. Many companies make up plaques and put them on the wall to remind employees about MVV. Other will create a screen saver or use other techniques to keep this important information in front of employees. These are all good things to do…but what is most important is that the company, through the leadership team…acts upon the Mission, Vision and Values. Companies that do this best define their: Mission (reason for being in business), Vision (where they want the company to be in 3 – 5 years) and Values (expected behavior and what drives decision making) Mission Statements : Mission Statements A Mission Statement describes your reason for being in business…what you are trying to accomplish. It needs to be broad enough to allow your company to grow beyond what they are currently doing but narrow enough so that you don’t take your eyes off the ball. It needs to be specific and meaningful and clear. Here is a sample mission statement from your industry. Office Furniture Distributor We partner with our clients to create office furniture and relocation service solutions designed to give them peace of mind. Office Products Manufacturer Mission: XXX will become a customer focused organization. One Team with One Goal… Customer Satisfaction. Solution selling Hassle-free service to the customer High quality products and services Efficient internal organization allowing competitive pricing Reliable on time delivery Do it right the first time Slide 8: Vision Statements Vision statements provide strategic direction. They describe what you want the company to be like in 3 – 5 years. Office Furniture Distributor XXX, a team of proud employees committed to providing THE BEST customer experience by delivering cutting edge products and service solutions. Office Products Manufacturer XXX will become one team focused on total customer satisfaction. We will achieve this through a high-performance sales team growing the business at a rate of 5% per year, developing new products and services that will solve customer information filing and retrieval needs, and operational excellence. Slide 9: Values Statements Values describe how things are done day to day in your company…what is most important in terms of beliefs and behaviors. Even when you don’t have values statements there is often behavior that employees can describe that drives decision making. Values have to be more than a plaque on the wall…you have to walk the walk and talk the talk and never blink about what is most important or your employees will see through your behavior. Office Furniture Dealer values Our customers are our priority…they are GOLD Delivering the best product and service solutions to our customers Employees will respect and support each other Deliver integrity in everything we do Accountable to each other and the company Creating Mission, Vision & Values Statements : Creating Mission, Vision & Values Statements It is a good idea to get input from employees about what they think your mission, vision and values statements are. First, they will give you feedback that you may not expect. Second, they will have some good ideas that will benefit you. Third, if they participate, they are more likely to buy into the Mission, Vision and Values. Fourth, you need their help making the MVV statements “real” and not just a plaque on the wall. In the end….it is your decision about what the mission is, what the vision is and what the values are. GOAL SETTING : GOAL SETTING Goal Alignment with mission, vision and values SMART Goals are specific, measurable, achievable, relevant and time bounded. Sample Goals : Sample Goals Customer Penetrate 65% of all existing customer opportunities through cross selling by year end Sell 10 new customers in the xxx industry before December Define our customer’s buying profiles by May Process Introduce 3 new products/services to our existing customers by June Reduce the time it takes to process an order by 15% by August Reduce the time it takes to deliver a project by 8% annually People Win the Great Place to Work award in 2 years Define and communicate our mission, vision and values to all employees by May Develop and execute a world class sales training program by October Financial Gross revenues 15% compounded for the next 5 years Increase gross margins by 12% for the next 3 years Improve return on assets by 5% for the next 3 years Slide 13: ASSESSMENT SWOT analysis Market segment analysis Best buyers research Key assumptions Competitive strategy assessment Slide 14: SWOT Slide 15: Analysis – Market Segments Slide 16: 15 Best Buyer Input Customer Questionnaire Score Importance Ease of doing business with us On time Delivery Responsiveness to your needs Price Understanding your business Industry experience Providing solutions to your needs Providing advice to yield better solutions Communication with key employees Relationship with our company Product/Service quality Reliability Product/Service Innovation Key Assumptions : Key Assumptions Our region will have growth of GDP by at least 2 % throughout the next two years We will be able to staff our growth at inflation adjusted labor rates over the next 3 years. Our top 10 customers will remain in the area and will continue to be active customers. No new competitors will move into our territory. We will continue to be a preferred dealer of XXX. We will be able to pass along cost increases to our client in the form of higher prices. US Tax structure changes will not materially impact our business. Slide 18: Competitive Strategy Assessment Slide 19: Method of Competition Definitions Product Leadership Definition: Continuously introduce innovative products and services. Goal of obsolescing their own products or services (before the competition does). Examples: Intel, Gillette, BMW, J&J Customer Intimacy Definition: Providing unique and tailored products and services to specific segments of the market. Views lifetime value of customer experience. Examples: Nordstrom, Disney World, USAA*, Charles Schwab Operational Excellence Definition: Price and convenience leader. Strategic approach to the production and delivery of products and services. Always seeking ways to reduce inefficiencies and optimize cross function and organizational processes. Examples: Amazon, Dell, Wal-Mart “Be Great at One and Good at the Other Two” Slide 20: Method of Competition Slide 21: Ansoff’s Matrix Existing Customers / Markets New Customers / Markets Existing Products / Services New Products / Services 1 Market Penetration Risk = low Potential = low 3 Market Development Risk = medium Potential = medium 2 Product Development Risk = medium Potential = medium 4 Diversification Risk = high Potential = high Your Next Steps? : 21 Your Next Steps? The top three actions I need to take to improve strategy development

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