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Strategic Planning
…is the managerial process of
developing and maintaining a strategic
fit between the organization's
objectives and resources and its
changing market opportunities.

Org Objectives Strategic Fit Resources

Changing Environment
The Role of Strategy

Corporate Strategy:
Mission & •Corporate Operating
Objectives •Business Plans
Vision and Strategy
Sun Tze on Strategy

 “Know your enemy, know yourself, and

your victory will not be threatened.
Know the terrain, know the weather, and
your victory will be complete.”
Strategic Marketing

“Marketing Strategy is a series of

integrated actions leading to a
sustainable competitive advantage.”
John Scully
Corporate Mission
 Broad purposes of the organization
 General criteria for assessing the
long-term organizational effectiveness
 Driven by heritage & environment
 Mission statements are increasingly
being developed at the SBU level as
Examples of Corporate Mission
air transportation and related
businesses. It operates world-wide as
the flag carrier of the Republic of
Singapore, aiming to provide services
of the highest quality at reasonable
prices for customers and a profit for
the company
Examples of Corporate Mission

MARRIOTT’S Mission Statement:

We are committed to being the best
lodging and food service company in
the world, by treating employees in
ways that create extraordinary
customer service and shareholder
Corporate Culture
 The most abstract level of managerial
 How do you define culture?
 What is the significance of culture to
an organization?
 How does marketing affect culture in
the organization?
Corporate Objectives & Goals
 An objective is a long-range purpose
◦ Not quantified and not limited to a time period
◦ E.g. increasing the return on shareholders’ equity
 A goal is a measurable objective of the
◦ Attainable at some specific future date through
planned actions
◦ E.g. 10% growth in the next two years
Strategic planning
Environmental and internal assessment Strategic definition and implications

Industry • What are the major • What strategy will you

changes in industry Strategy pursue over the next 3
dynamics and
dynamics and articulation years?
resulting opportunities
+ and risks? +
• What are your • What will be the impact of
Competitive competitive strengths Strategic major strategic initiatives?
assessment and weaknesses? initiatives

+ +
• How does your current • What are the expected
Internal business emphasis fit Financial financial returns of your
assessment with industry projections strategy?
opportunity and
competitive +
Risk/contingen- • What strategic alternatives
cies & strategic have you considered?
The Usual Business Planning





Strategic Planning – Many Sub

Vision Mission

Objectives Strategies Tactics Plans

Objectives Strategies Tactics Plans

Objectives Strategies Tactics Plans

Framework of a Successful
Business Planning and Delivery


New Information Business

Feed Back Plan

Regional or Sales &

Industry Marketing
Sales Plan Plan

State Sales
Vision is a Critical Driver
 To succeed in the long
term, our business
needs a vision of how
we will change and
improve in the future. Provides future
followed and
 “without a vision, the
people perish”
 The vision of the
business gives its
energy. Must be fully
Expresses a
◦ It helps motivate us. communicated
◦ It helps set the
direction of corporate
and marketing
Is motivating Is realistic
Values underpin all we do
Values form the foundation of a business’ management style.
 Values provide the justification of behaviour and, therefore, exert significant influence on
marketing decisions.
An example is provided by BT Group - defining its values:
 BT's activities are underpinned by a set of values that all BT people are asked to
◦ We put customers first
◦ We are professional
◦ We respect each other
◦ We work as one team
◦ We are committed to continuous improvement.
 These are supported by our vision of a communications-rich world - a world in which
everyone can benefit from the power of communication skills and technology.
 A society in which individuals, organisations and communities have unlimited access to
one another and to a world of knowledge, via a multiplicity of communications
technologies including voice, data, mobile, internet - regardless of nationality, culture,
class or education.
 Our job is to facilitate effective communication, irrespective of geography, distance, time
or complexity.
Source: BT Group plc website
Has the Company got a strong
Clear Mission?
 The Business Mission
is important to our
sales & marketing the business exists
 It provides an outline of
how the marketing plan
should seek to fulfil the
SCOPE – what CULTURE – what
 It provides a means of business are we in management
evaluating and screening and how? believes in
the marketing plan; are
marketing decisions
consistent with the
 It provides an incentive to BEHAVIOUR – the
rules that guide
implement the marketing how we operate
"Strategy is the direction and
scope of an organisation over
the long-term: which achieves
advantage for the organisation
through its configuration of
resources within a challenging
environment, to meet the
needs of markets and to fulfil
stakeholder expectations".
Strategic Audit
- ensuring that the Company resources and
competencies are understood and evaluated

Resource Audit

Value Chain Analysis

Core Competence Analysis

Performance Analysis

Portfolio Analysis

SWOT / PEST Analysis

Need to work within Company
Resources & Constraints

• Existing Funds
• New Funds


• Production
• Marketing
• Sales
• R&D & Technical
• Information Technology


• Existing Staff
• Future Staff Requirements
• Training & Development


• Goodwill
• Reputation
• Brands
• Intellectual Property
Objectives - Corporate &
• Examples might include:

Corporate • We aim for a return on investment of at least

• We aim to achieve an operating profit of over
$10 million on sales of at least $100 million
These are objectives that • We aim to increase earnings per share by at
concern the business or least 10% every year for the foreseeable future
organisation as a whole

• Examples might include:

• We aim to build customer database of at least

Functional 250,000 households within the next 12 months
• We aim to achieve a market share of 10%
• We aim to achieve 75% customer awareness of
Specific objectives for sales & our brand in our target markets
marketing activities • We aim to sell $2m of xyz product into ABC
market over the next 6 months
Value Chain Analysis
 Value Chain Analysis describes the activities that take place in a business and
relates them to an analysis of the competitive strength of the business.
 Michael Porter suggested that the activities of a business could be grouped under
two headings:
1. Primary Activities - those that are directly concerned with creating and delivering a
product (e.g. component assembly); and
2. Support Activities, which whilst they are not directly involved in production, may
increase effectiveness or efficiency (e.g. human resource management). It is rare for a
business to undertake all primary and support activities.
 Value Chain Analysis is one way of identifying which activities are best undertaken
by our business and which are best provided by others ("outsourced").

 Linking Value Chain Analysis to Competitive Advantage

 What activities a business undertakes is directly linked to achieving competitive
 For example, if we wish to outperform our competitors through differentiating
ourselves through higher quality then we will have to perform our value chain
activities better than the opposition.
 But if we adopt a strategy based on seeking cost leadership this will require a
reduction in the costs associated with the value chain activities, or a reduction in
the total amount of resources used.
Value Chain
Innovation Operation Post Sales
Process Process

Identification Satisfaction
of client’s of Client’s
necessities necessities

identification products / Delivery Services
products / services to the
services creation clients
Primary Activities
Primary value chain activities include:

Primary Description
Inbound All those activities concerned with receiving and storing externally sourced
logistics materials

Operations The manufacture of products and services - the way in which resource inputs
(e.g. materials) are converted to outputs (e.g. products)

Outbound All those activities associated with getting finished goods and services to buyers

Marketing and Essentially an information activity - informing buyers and consumers about
sales products and services (benefits, use, price etc.)

Service All those activities associated with maintaining product performance after the
product has been sold
Support Activities
Support activities include:

Secondary Description
Procurement This concerns how resources are acquired for a business (e.g. sourcing
and negotiating with materials suppliers)

Human Resource Those activities concerned with recruiting, developing, motivating and
Management rewarding the workforce of a business

Technology Activities concerned with managing information processing and the

Development development and protection of "knowledge" in a business

Infrastructure Concerned with a wide range of support systems and functions such as
finance, planning, quality control and general senior management
Steps in a Value Chain Analysis

Break down a market / organisation into its

key activities

Assess the potential for adding value via

cost advantage or differentiation, or identify
current activities where a business appears
to be at a competitive disadvantage;

Determine strategies built around focusing

on activities where competitive advantage
can be sustained
Core competencies
 Core competencies are those capabilities that are critical to a business
achieving competitive advantage.
 The starting point for analysing core competencies is recognising that
competition between businesses is as much a race for competence mastery
as it is for market position and market power.
 Senior management cannot focus on all activities of a business and the
competencies required to undertake them.
 So the goal is for management to focus attention on competencies that really
affect competitive advantage.
 Core Competencies are not seen as being fixed. Core Competencies should
change in response to changes in the company's environment. They are
flexible and evolve over time. As a business evolves and adapts to new
circumstances and opportunities, so its Core Competencies will have to
adapt and change.
 We need to understand what we are good and what makes us better and to
hone these advantages and to develop new ones to underpin the business
Identifying Core Competencies
Prahalad and Hamel suggest three factors to help identify core competencies in any business:

What does the Core

Competence Comments

Provides potential The key core competencies are those that enable the creation of new
access to a wide products and services.
variety of markets

Makes a significant Core competencies are the skills that enable a business to deliver a
contribution to the fundamental customer benefit - in other words: what is it that causes
perceived customer customers to choose one product over another? To identify core
benefits of the end competencies in a particular market, ask questions such as "why is the
product customer willing to pay more or less for one product or service than
another?" "What is a customer actually paying for?

Difficult for A core competence should be "competitively unique": In many

competitors to industries, most skills can be considered a prerequisite for participation
imitate and do not provide any significant competitor differentiation. To qualify
as "core", a competence should be something that other competitors
wish they had within their own business.
What is Competitive Advantage?
 “Competitive advantage is a
company’s ability to perform in one or
more ways that competitors cannot or
will not match.”
Philip Kotler
 “If you don’t have a competitive
advantage, don’t compete.”
Jack Welch, GE
Four Generic Strategies

Lower Cost Differentiation

Target Cost
Narrow Cost Focus
Target Focus
Other Characteristics of
Competitive Advantage
◦ Is it substantial enough to make a
◦ Can it be neutralized by competitors
 Ability to be leveraged into visible
business attributes that will influence
(Source: Strategic Marketing Management, Aakers)
Seeking Competitive Advantages
 Positions of advantage
◦ Superior customer value
◦ Lower relative total cost
 Performance advantages
◦ Customer satisfaction, Loyalty, Market
Share, Profit
 Sources of advantages
◦ Superior skills & knowledge, Superior
resources, Superior business process
Target customers and segments
• Which customers are you trying to target or attract?
• Which are you willing to serve, but will not spend
resources to attract?
• Which would you prefer not to serve?


Geographical scope
of business activities How does the entity
• Geographic limits to the reach its target
business? Geographic customers
• Local, regional, multi- markets Channels
• Which distribution channels
local, national,
will you use?
international, or global
• What customer segments
can they reach?
• If local, which localities?


Quality and breadth of the product line

• Breadth of the product line?
• Quality of the product line?
• Product bundles or a series of unrelated
Capability platform: assessment of sources of
competitive advantage (1/2)

Physical asset • BHP’s low-cost mines

Location/"space" • Telecomm/media company with rights

radio spectrum
assets Distribution/sales network • Avon’s representatives

Brand/reputation • Coca-Cola

Necessary Patent • Pharmaceutical company with a "wonder

capabilities drug”
in order to
succeed in Relationship with "license" • "Favored nation" status with a key
the allocator minister in liberalizing economy
Innovation • 3M with new products

Distinctive Cross-functional • McDonald’s with QSC&V

competencies coordination
• J&J with branded consumer health products
Market positioning
• Emerson Electric’s Best Cost Producer
Cost/efficiency program
• P&G brand management program
Talent development
Extremely relevant
Capability platform: assessment of Somewhat relevant

sources of competitive advantage (2/2) Irrelevant

BU Overall A B C
Physical asset

assets Distribution/sales network

capabilities in Patent
order to
succeed in the Relationship with "license"
industry allocator

Distinctive coordination
Market positioning

management Talent
Step 2: Assess your overall position relative to
Step 1: Ensure that these are the
the capabilities required to succeed in the industry.
capabilities required to succeed in the
Also, determine if these capabilities are relevant to
industry. Use this list as a thought
the segments you serve
starter, add and delete as you see
Competitor capability comparison
BU Overall A B C
Physical asset •


assets Distribution/sales network •
capabilities Patent
in order to
succeed in Relationship with "license"
the allocator
Distinctive coordination
Market positioning

management Talent

Step 3: Compare the strengths and weaknesses of

your competitive position vs. the necessary skills
Porter’s 5 Forces of Competitive
Position Diagram

New Market

Supplier Competitive
Buyer Power
Power Rivalry

Product &
Porter 5 Forces
Porter’s 5 Forces of Competitive
Position version #2
Porter’s 5 Forces of Competitive
Position #3 Entry Barriers
Economies of Scale
Brand Identity
Capital Requirements Rivalry Determinants
Industry Growth
Fixed Costs
New Product Differences
Determinants of Supplier Power Entrants Brand Identity
Switching Costs Exit Barriers
Supplier Volume
Forward Integration
Suppliers Buyers
of Rivalry Determinants of Buyer Power
Buyer Concentration
Determinants of Buyer Volume
Substitution Threat
Backward Integration
Relative Price
Performance Substitutes
Switching Costs
Forces at work framework
1. Determinants of supplier power 2. Determinants of barriers to entry
• Differentiation of inputs • Economies of scale
• Switching costs of suppliers and firms in the • Proprietary product differences
industry • Brand identity
• Presence of substitute inputs • Switching costs
• Supplier concentration • Capital requirements
• Importance of volume to supplier • Access to distribution
• Cost relative to total purchases in the industry 2. New entrants • Absolute cost advantages
• Impact of inputs on cost or differentiation – Proprietary learning curve
• Threat of forward integration relative to threat – Access to necessary inputs
of backward integration by firms in the industry – Proprietary, low-cost product design
5. Industry competitors • Government policy
• Expected retaliation
1. Suppliers
3. Buyers
Intensity of rivalry
3. Determinants of buying power
5. Rivalry determinants • Bargaining leverage
• Industry growth – Buyer concentration vs. firm
• Fixed (or storage) cost/value added concentration
• Intermittent overcapacity 4. Substitutes – Buyer volume
• Product differences – Buyer switching costs relative to firm
• Brand identity switching costs
• Switching costs 4. Determinants of – Buyer information
• Concentration and balance substitution threat – Ability to backward integrate
• Informational complexity • Relative price performance of – Substitute products
• Diversity of competitors substitutes – Pull-through
• Corporate stakes • Switching costs • Price sensitivity
• Exit barriers • Buyer propensity to substitute – Price/total purchases
– Product differences
– Brand Identity
– Impact on quality perception
– Buyer profits
– Decision makers' incentives
Ninety ways to measure
demand (6 x 5 x 3)
Geographical World
Level Region
Total sales
Sector sales
Company’s sales
Level Product lines
Product config
Product items
Short Medium Long
term term term

Timing Level
Strategic Planning Link with
Marketing Planning
 Businesses that succeed do so by creating and keeping customers.
 They do this by providing better value for the customer than the competition.
 Marketing management constantly have to assess which customers they are
trying to reach and how they can design products and services that provide
better value (“competitive advantage”).
 The main problem with this process is that the “environment” in which
businesses operate is constantly changing.
 So a business must adapt to reflect changes in the environment and make
decisions about how to change the marketing mix in order to succeed.
 This process of adapting and decision-making is known as marketing

Strategic Business Marketing Regional Industry
Sales Plan State Plan Account
Plan Plan Plan Plan Plan
Strategic vs. Marketing Plans
 Strategic planning is concerned about the overall direction of the
◦ It is concerned with marketing, of course.
◦ But it also involves decision-making about production and operations, finance,
human resource management and other business issues.

 The objective of a strategic plan is to set the direction of a

business and create its shape so that the products and
services it provides meet the overall business objectives.

 Marketing has a key role to play in strategic planning, because it is

the job of marketing management to understand and manage the
links between the business and the “environment”. Sometimes this is
quite a straightforward task.
◦ For example, in many small businesses there is only one geographical market
and a limited number of products (perhaps only one product!).
◦ However, consider the challenge faced by marketing management in a
multinational business, with hundreds of business units located around the
globe, producing a wide range of products.
◦ Keeping control of marketing decision-making in such a complex situation calls
for well-organised marketing planning.
Key issues in strategic and
marketing planning?
 The following questions are key in the marketing and strategic
planning process:
◦ Where are we now?
◦ How did we get there?
◦ Where are we heading?
◦ Where would we like to be?
◦ How do we get there?
◦ Are we on course?

 A marketing plan helps to:

◦ The ability of a business to achieve profitable sales is impacted by dozens of
environmental factors, many of which are inter-connected
◦ Identify sources of competitive advantage
◦ Gain commitment to a strategy
◦ Get resources needed to invest in and build the business
◦ Inform stakeholders in the business
◦ Set objectives and strategies
◦ Measure performance
Situation Analysis
 Internal Analysis—company; capability etc.
 External Analysis—customers, market
definition, industry structure
 SWOT Analysis
◦ Strengths, Weaknesses,
Opportunities & Threats
◦ Identify & prioritize major problems and
opportunities: selection of key issues
 Based on the firm’s core
competencies, decide on future
Internal Environment
Strengths Weaknesses
World class product Technical support
Financial resources Internal processes
Know-how Channels network

External Environment
Opportunities Threats
Water & Energy crises Competitors market share
Environment awareness Euro X Dollar
Productivity improvement Technology development

• How are demand and

NEUTRALIZE supply expected to
THREATS evolve?
• How do you expect the
industry chain
economics to evolve?
• What are the potential
major industry
STRENGTHS OPPORTUNITIES actions do you expect?

• What are your BU’s

assets/competencies Surfaces potential
ADDRESS opportunities/threats arising
that solidify your WEAK-
competitive position? from factors external to the
NESSES business
• What are your BU’s
that weaken your
competitive position?

Can be used as a thought

starter for competitive
analysis and internal
SWOT Analysis is still a useful
TOWS matrix
Strengths Weaknesses

Opportunities S-O strategies W-O strategies

Threats S-T strategies W-T strategies

S-O strategies pursue opportunities that are a good fit to the

companies strengths.
W-O strategies overcome weaknesses to pursue opportunities.
S-T strategies identify ways that the firm can use its strengths to
reduce its vulnerability to external threats.
W-T strategies establish a defensive plan to prevent the firm's
weaknesses from making it highly susceptible to external threats.
PEST analysis
 A scan of the external macro-
environment in which the company
wants to operate (or operates) and
can be expressed in terms of the
following factors:

◦ Political
◦ Economic
◦ Social
◦ Technological
PEST Analysis - market, business, proposition, etc.
• ecological/environmental issues • home economy situation
• current legislation home market • home economy trends
• future legislation • overseas economies and trends
• European/international legislation • general taxation issues
• regulatory bodies and processes • taxation specific to product/services
• government policies • seasonality/weather issues
• government term and change • market and trade cycles
• trading policies • specific industry factors
• funding, grants and initiatives • market routes and distribution trends
• home market lobbying/pressure groups • customer/end-user drivers
• international pressure groups • interest and exchange rates
• wars and conflict • international trade/monetary issues

• lifestyle trends • competing technology development
• demographics • research funding
• consumer attitudes and opinions • associated/dependent technologies
• media views • replacement technology/solutions
• law changes affecting social factors • maturity of technology
• brand, company, technology image • manufacturing maturity and capacity
• consumer buying patterns • information and communications
• fashion and role models • consumer buying mechanisms/technology
• major events and influences • technology legislation
• buying access and trends • innovation potential
• ethnic/religious factors • technology access, licencing, patents
• advertising and publicity • intellectual property issues
• ethical issues • global communications
 A PEST analysis most commonly measures a market; a
SWOT analysis measures a business unit, a proposition
or idea.
 Generally speaking a SWOT analysis measures a business
unit or proposition, whereas a PEST analysis measures the
market potential and situation, particularly indicating growth
or decline, and thereby market attractiveness, business
potential, and suitability of access - market potential and 'fit' in
other words.
 PEST analysis uses four perspectives, which give a logical
structure, in this case organized by the PEST format, that
helps understanding, presentation, discussion and decision-
 PEST analysis can be used for marketing and business
development assessment and decision-making, and the
PEST template encourages proactive thinking, rather than
relying on habitual or instinctive reactions.
Structure- conduct-performance (SCP)
Industry Producers

S tructure C onduct P erformance

• Technology Economics of demand Marketing Finance
breakthroughs • Availability of substitutes • Pricing • Profitability
• Changes in • Differentiability of products • Volume • Value creation
government • Rate of growth • Advertising/promotion Technological progress
policy/regulations • Volatility/cyclicality • New products/R&D Employment objectives
– Domestic Economics of supply • Distribution
– International • Concentration of producers Capacity change
• Import competition • Expansion/contraction
• Diversity of producers • Entry/exit
• Fixed/variable cost structure • Acquisition/merger/ divestiture
• Capacity utilization Vertical integration
• Entry/exit barriers • Forward/backward integration
Industry chain economics • Vertical joint ventures
• Bargaining power of input • Long-term contracts
suppliers Internal efficiency
• Bargaining power of customers • Cost control
• Logistics
• Process R&D
• Organization effectiveness
Definition of risks

• Risk of loss due to changes in industry and competitive

Business risk environment, as well as shifts in customer preferences

• Risk due to changes in regulatory environment (e.g.

Regulatory risk deregulation)

• Risk due to major changes in technology

Technology risk

• Risk of failures due to business processes and

Integrity risk operations or people’s behavior, either intentional (e.g.
fraud) or unintentional (e.g. errors)

Macroeconomic • Risk of loss due to changes in the political, social, or

risk economic environments

 Management, control and evaluation

Five disciplines – Peter Senge
 Personal Mastery:
◦ Aspiration involves formulating a coherent picture of the results
people most desire to gain as individuals, alongside a realistic
assessment of the current state of their lives today.
◦ Learning to cultivate the tension between vision and reality can
expand people's capacity to make better choices, and to achieve
more of the results that they have chosen.
 Mental Models:
◦ Reflection and inquiry skills is focused around developing
awareness of the attitudes and perceptions that influence thought
and interaction.
◦ By continually reflecting upon, talking about, and reconsidering
these internal pictures of the world, people can gain more
capability in governing their actions and decisions.
Five disciplines – Peter Senge
 Shared Vision:
◦ Establishes a focus on mutual purpose.
◦ People learn to nourish a sense of commitment in a group
or organization by developing shared images of the future
they seek to create, and the principles and guiding
practices by which they hope to get there.

 Team Learning:
◦ Group interaction.
◦ Through techniques like dialogue and skillful discussion,
teams transform their collective thinking, learning to
mobilize their energies and actions to achieve common
goals, and drawing forth an intelligence and ability greater
than the sum of individual members' talents.
Five disciplines – Peter Senge
 Systems Thinking:
◦ People learn to better understand
interdependency and change, and thereby to
deal more effectively with the forces that shape
the consequences of our actions.
◦ Systems thinking is based upon a growing body
of theory about the behavior of feedback and
complexity - the innate tendencies of a system
that lead to growth or stability over time.
◦ To help people see how to change systems more
effectively and how to act more in tune with the
larger processes of the natural and economic
Project management - processes
Project management – a process
Project management – process
Project management – risk
Success Keys - Deployment
Deployment - Completing the Plan
Success Failure
>Assign roles and responsibilities >No accountability for deployment

>Establish priorities >Too many goals, strategies, or objectives

- no apparent priority

>Involve mid-level management as >Plan in a vacuum-functional focus

active participants

>Think it through - decide how to >No overall strategy to implement

manage implementation

>Charge mid-level management with >Make no attempt to link with day-to-day

aligning lower-level plans operations

>Make careful choices about the >Not being thorough-glossing over the
contents of the plan and form it will details
Success Keys - Communication

Deployment - Communicating
Success Failure
Assign roles and responsibilities No accountability

Communicate the plan constantly Never talk about the plan

and consistently

Recognize the change process Ignore the emotional impact of

Help people through the change
process Focus only on task
Success Keys - Implementation
Implementing - I
Success Failure
Assign roles and responsibilities No accountability

Involve senior leaders Disengagement from process

Define an infrastructure Unmanaged activity

Link goal groups Fragmented accomplishment of

objectives leads to sub-optimization

Phase integration of Force people to choose between

implementation implementation and daily work; too
actions with workload many teams

Involve everyone within the No alignment of strategies

Success Keys - Implementation

Implementing - II
Success Failure
Allocate resources for Focus only on short term need for
implementation resources

Ignore or avoid change

Manage the change process
No measurement system
Evaluate results
Hide mistakes/lay blame;
Share lessons learned; limited/no communication
successes through open and
frequent communication
Success Keys - Measurement

Strategic Measurement - I
Success Failure
Assign roles and responsibilities No accountability

Use measurement to understand Sub-optimization: focus only on

the organization efficiencies

Use measurement to provide a Use measures that provide no real

consistent viewpoint from which to information on performance; use
gauge performance too many measures

Use measurement to provide an Use measurement to focus on the

integrated, focused view of the bottom-line only
Success Keys - Measurement

Strategic Measurement - II
Success Failure
Use measurement to communicate Use measurement to control
policy (new strategic direction)

Update the measurement system Never review measures

Use measurement to provide Fail to use measurement to make

quality feedback to the strategic strategic, fact-based decisions; use
management process only for control
Success Keys - Evaluation
Success Failure
Assign roles and responsibilities No accountability

Recognize when to update the plan Poor timing and not recognizing
external forces

Modify strategic planning process to Rigid application of strategic

accommodate the more mature planning process; ignore lessons
organization learned from previous efforts

Ignore impact of new leaders

Incorporate new leaders into the
strategic planning process
Don't use measurement
Integrate measurement with strategic information
Shortcut the process
Use experienced strategic planning
Best Companies Spend more time
on Forward Planning than Historical

Achieving Agility Through a New Approach to Forecasting In today’s turbulent economy, rolling forecasts are proving to be an
important new tool in changing the way budgeting and planning has traditionally been handled. Mary Brandel
Benefits of Rolling Forecasts