Strategic Planning for Small Business. Carol Rovello * *

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1 Strategic Planning for Small Business 1

2 Agenda Welcome Overview of Strategic Planning Key Planning Steps and Tools 2

3 Planning Controlling Management Functions Organizing Leading 3

4 Planning Alignment Strategic Tactical Operational 4

5 Only When You Think Strategically can you identify the organizational direction that has the best chance of leading to business success. Stabilize your business Improve profitability Position your business for growth 5

6 Through your strategic planning process, you will Define where your organization is now, where you want it to be, and how you will get there. Examine pertinent internal and external information. Explore various strategies and select the one(s) most likely to lead to success. Implement your plan. Monitor and revise your plan as needed. Evaluate your results. 6

7 Strategy Development Strategic Planning Strategy Evaluation Strategy Implementation 7

8 Strategy Development, Step 1 Clarify your Organizational Culture Values: Your values define what is important to the business. Often the values of the owner become the values of the organization. They describe how you conduct your business and treat others. Guiding Principles: These statements guide all decisions and actions. They provide a framework for how you conduct business. They help employees know how to behave and customers know what to expect. 8

9 Culture, continued Vision: This inspires you and others. It describes what you hope for the future of your business, what you want the company to be, how it will make a difference, and what will set it apart from other similar businesses. Mission: Your mission statement helps employees and customers understand the purpose of your business. It typically includes what you do and why, who (and maybe where) you serve, and what makes you different. It is grounded in the present. 9

10 Strategy Development, Step 2 Evaluate progress toward attainment of current strategic goals AND their continued relevance. 10

11 Strategy Development Step 3 SCOT Analysis Internal Environment Strengths External Environment Opportunities Challenges Threats 11

12 Internal Environment Human Resources Finance & Accounting Information Technology Research & Development Operations Marketing & Sales 12

13 External Environment Demographics Technological Economic Social Your Business Competition Political & Legal International 13

14 Strategy Development Step 4 Determine strategic direction (major areas of focus) Establish strategic goals (3 5 years out) Identify what you will measure so you know whether or not you are successful Set targets and timeframes 14

15 Example Goal Metric Targets Year 1 Year 2 Year 3 Who 15

16 Strategy Implementation 1. Identify practical strategies for achieving these goals Business Unit Position 2. Create action plans 3. Allocate resources 4. Engage employees 16

17 Action Plan Goal: Major Activity Who is responsible Resources Needed Timeframes Potential Obstacles & Solutions 17

18 Resources Needed Financial Physical Human Technological Other? 18

19 Strategy Evaluation 1. Review progress at planned intervals and when needed Note changes in internal strengths & challenges Note changes in external opportunities & threats 2. Measure performance 3. Take corrective action 19

20 Thanks for Participating! 20

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