Strategic Planning

CrossRoads provides the facilitation of developing a one page strategic plan using the plan from "Mastering the Rockefeller Habits" by Verne Harnish.

Strategic planning is provided over the course of several days, typically in a retreat setting.  The Executive Team defines (or redefines) the Core Values and works down to the specific actions needed in the coming quarter. The result is alignment of the entire organization and accountability to the key steps needed to move forward.

Please read more to explore some key concepts of Strategic Planning

• Core Values
• Core Purpose and BHAG
• Targets
• Goals
• Action Plans
• Schedule
• Accountability
• Meeting Rhythm
  

 

 

Core Values

Like the US Constitution or ten commandments, core values are 5 or 6 statements which answer the question "SHOULD we or SHOULDN'T we." They are discovered over time and last. And they tend to be different for each business, defining what is often called the corporate culture.

• Everyone aligned with #1 thing that needs to be accomplished this quarter to move company forward
• 5 priorities (Rocks) are identified and ranked for the quarter
• A Critical Number is identified and aligns with the #1 priority
• A Quarterly Theme is established that brings the key priority/Critical Number alive
• A scoreboard for the Critical Number is posted and Theme announced
• All employees know what the Celebration/Reward will be

 

Core Purpose & BHAG

This is a philosophical statement about WHY you're in business and is determined by your leader's particular reason for having passion for the business. Patagonia's (outdoor clothing) founder once exclaimed "Let my people surf" and that became their purpose statement. It says a lot about the founder's philosophy and style. The core purpose puts "heart" into the business. In addition, the business should be pursuing a Big Hairy Audacious Goal (BHAG). It should be a quantifiable pursuit with a 10 to 25 year horizon that is audacious but not braggadocios and reinforces fundamentals. Microsoft's pursuit of being on every desktop is an example.

Communication rhythm is established. Information moves through organization accurately and quickly

• All employees are in some kind of a daily and weekly huddle
• Huddles cascade from senior management to frontline or visa versa
• Every facet of the organization has a person assigned with accountability for ensuring goals are met
• Income (P&L), Cash Flow, & Balance Sheet statements have persons assigned to each line item
• An accountability chart has been created

 

Targets

The target level answers the question "WHERE you want the firm to be in 3 to 5 years." Besides deciding certain quantifiable targets, a firm should define the Sandbox in which the company chooses to play, so that it can be #1 or #2. The Sandbox definition includes the firm's expected geographical reach, product/service offering, and expected market share. Xerox changed their tag-line to "The Document Company" to signify a change in Sandbox focus from being a copier equipment seller to document management. Next, clearly articulate the key need you're going to satisfy for your customers, called your measurable Brand Promise - alternatively called a value-added proposition or differentiator. Finally, define five or six Key Thrusts/Capabilities necessary for you to dominate your defined Sandbox, fulfill your Brand Promise, and meet your quantifiable Targets.

• Ongoing employee feedback and input is systematized to remove obstacles and identify opportunities
• Employee hassles/ideas/suggestions/issues are being collected weekly
• There is a systematic process for addressing issues and opportunities
• Thank You cards are being written every week by senior management
• Reporting and analysis of Customer Feedback data is as frequent and accurate as financial data
• All employees are involved in collecting customer data
• There is a person assigned accountability for customer feedback
• All senior leaders communicate with at least one customer weekly

 

Goals

These say WHAT the firm has to do this year in order to be what was defined on the Target level. Like New Year's resolutions, they are defined annually. The key is defining five or six key initiatives for the year. Answer the question "If we get these five or six things accomplished, we'll meet our annual goals." In addition, choose one or two critical numbers - ideally one off the income statement and one off the balance sheet - on which the firm will focus. These critical numbers define the biggest opportunity for providing positive impact on the firm.

 

• Core ideologies are "alive" in the organization
• Core ideologies are discovered and defined
• Stories are being shared of employees who represent the ideologies
• Core ideologies are included in appraisal and recognition processes
• Clear understanding of the firm's market position drives strategic planning and sales and marketing

 

Action Plans

These describe HOW, on a quarterly basis, you're going to accomplish your annual Goals. Think of these as 13 week MISSIONS (this is how we define mission). Besides setting specific quantifiables for the quarter and one or two critical numbers, you need to define five or six key "rocks" that have to be completed in order to accomplish the goals. In addition, a quarterly or annual theme should be established, complete with a key measurable goal, theme title, company-wide scoreboard, and defined celebration/reward.

• Brand Promise and market (Sandbox) are clearly defined
• The organization is aligned around 5 key strategies (Thrusts/Capabilities) for growth
• All employees can report at any time what their productivity is and how it compares against goals
• Smart Numbers (key performance indicators) are identified for the organization
• Weekly measures for each individual/team are clearly displayed and reviewed
• A "situation room" is established for the weekly executive team meeting

 

Schedule

This sets deadlines WHEN we're going to complete certain actions . Nothing will ever get accomplished until it makes someone's weekly to do list. The idea is to take the 13 week actions and put together a week-to-week plan on how they'll get accomplished, so that everyone knows what they need to do. We encourage firms to move their thinking from a monthly rhythm (A/R deadlines, billing cycles, sales targets) to a weekly or daily rhythm.

• Smart Numbers and Critical Numbers are posted bigger than life with goals clearly shown
• Data is presented graphically to help visualize trends
• Core ideologies, priorities, and market maps posted
• As goes the Executive Team goes the rest of the firm
• Team members understand each other's differences, priorities, and styles
• The team meets offsite every few months for strategic thinking and renewal

 

 

Accountability

This names WHO is going to be sure a particular activity is going to be accomplished. These last four levels essentially define WHO has to do WHAT WHEN and HOW in order to get things accomplished in the organization. And it's important to understand the difference between accountability and responsibility. Many might be responsible for getting something done (creating a new product), but only one person can have accountability. If the buck doesn't stop somewhere with a single person for every activity, then it's likely not to be completed or completed well. "Who owns the outcome?"

• The team is having fun together

 

MEETING RHYTHM

• Daily-Where we are today (10-15 minutes)
• Daily huddle: What's Up, Metrics, Bottlenecks
• Weekly-Improving what we do (2 hours)
• News, Numbers, Customer & employee data, Collective Intelligence, 1-phrase close. Log of Who, What, When
• Monthly-Learning and reviewing (4 hours)
• Management team discussing 1-2 strategic items
• Quarterly-Communicating new directions/theme (4-8 hours)
• All-hands meetings once a quarter
• Annual-Deciding on new directions/priorities (2 days)
• Management team offsite, possibly professionally facilitated

 

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