FAST-FORWARD STRATEGY REVIEWS & STRATEGIC PLANNING PROJECTS
STRATEGIC PLANNING: WHAT WE DO
Through our strategic alignment projects, we help companies define the way forward, clarify the drivers of strategic advantage and create stakeholders alignment on the direction to be taken.
A strategic planning project also assesses the financial impact of the new course and defines what needs to be done operationally and organizationally to implement the designed change.
WHEN ARE THESE PROJECTS MOST USEFUL?
Strategic alignment projects are either undertaken every year, as inputs to the planning process, or as ad-hoc efforts, when there are specific opportunities to be captured or issues to be addressed. They are also typically launched when a new CEO is appointed, or in case of a change in company's ownership.
Contact the Author:
GILDA SALA
gilda.sala@edgeplus.it
APPROACH: THE FIVE COMPONENTS OF A STRATEGIC PLAN
A strategic plan is typically built around five key pillars: market and trends, sources of growth, competitive drivers, processes and skills, financial impact.
They respectively translate into five output modules of a strategy definition project. We may work on all of them or only on a sub-set, depending on the specific client priorities.
1. Market & Trends:
- Market size
- Growth expectations
- Key trends
- Segmentation map
- Adjacent industries
2. Sources of Growth:
- Segments of focus
- Chosen geographies
- Core technologies
- Product categories
- Value creation stages
3. Competitive Drivers:
- Drivers of competitiveness
- Value proposition
- Strategic capabilities
4. Processes & Skills:
- Core processes to be mastered
- Target organization and skills
- Cultural gaps & priorities
5. Financial Impact:
- Financial impact of strategic scenarios
- Financial forecast
- Capital implications
TYPICAL BENEFITS OF A STRATEGIC ALIGNMENT PROJECT
Benefit 1: STRATEGIC
- Clear definition of company's vision and mission
- Decisions on sources of growth, target categories and market segments
- Clarity on drivers of competitive advantage, value proposition, pricing and cost position
- Consensus on the way forward among the leadership team
- Effective oversight on management choices by board / company owners
Benefit 2: ORGANIZATIONAL
- Understanding of the overall business objectives by the larger organization
- Clarity on the role that individuals play in enacting the strategy
- Identification of the core processes and capabilities needed to achieve / maintain competitive advantage
- Definition of the organizational configuration, skills and systems needed to put the strategy into action
Benefit 3: FINANCIAL
- Clarity on the financial impact of the chosen way forward
- Improved results, due to sounder strategy
- Faster top-line growth
- Enhanced profitability
- Better capital allocation
DEFINING THE STRATEGIC MOVES
Besides clarifying the strategy, we also work on defining the strategic moves, i.e. outlining the set of steps needed to make the strategy happen.
Typically these involve defining the vehicles (acquisitions, joint ventures, internal development, licensing/franchising), the stages (speed of expansion, speed of initiatives) and the implementation plan (steps, roles, responsibilities, KPIs).
A useful approach for assessing and choosing the strategic moves might be to run a competitive simulation workshop.
Contact us for support on strategic planning: contacts@edgeplus.it