Tag Archives: strategic plan execution

The Importance of Scenarios when Dealing with Uncertainty

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Denise Harrison                                                                                                                       President, Strategic Planning and Execution, Spex, Inc. 

How can we better deal with uncertainty when we develop our strategic plan? Many strategic planning teams struggle with this issue. While it is important to understand what you know as facts and what your assumptions for the future are, I have found that some good scenario planning helps a team prepare for a wider range of possibilities that might occur in the future. By looking at different scenarios, the team can assess what will work in each scenario and then select the approach that will benefit the company in the most likely scenario, but still balance that approach by not closing out options that will work if another scenario unfolds.

Generating Different Scenarios

Some teams generate a probable scenario and then move to generate an upside and downside. For example, the probable scenario is that we achieve 10% growth and the upside is 12.5% and downside in 8%. While this works, I find that high performing teams that discuss actual events/trends and then develop scenarios corresponding to possible outcomes, is a better way of generating scenarios. Some examples of trends and events include:

  1. Product launch is delayed by 12 months.
  2. Oil prices plummet and stay down longer than our probable scenario (this could be good or bad depending on what your company does and who your customers are).
  3. Acquisition has unexpected fall-out and customers leave and go to competitors.
  4. Customers’ preferences change faster than we anticipate (Blackberry).

You should have your team members come up with ideas for different scenarios. Generate what these environments will look like out 5-10 years. Ask the question: What will we need to do to be successful if this is the competitive landscape? You will notice before you start working, that several of the outcomes will have similar results. Select scenarios that will generate different actions.

Once you have generated different “success” strategies, then evaluate which scenario is most probable, and then look to see what you can do to accommodate other “success” strategies so that you maintain your flexibility moving forward.   While you may not be able to keep all options open, you may be able to keep some avenues open until time passes and you have a better view of what the future has in store for your company.

Another benefit of this exercise is it allows the team to think more broadly and be more aware of the external factors that impact your business. This will help the team deal with the changes that will inevitably happen during the planning horizon. As you start to see movement that makes another scenario unfold, bring the team back together and recast your strategy. If you anticipate this movement faster than your competition, it will help position your company to gain market share or weather an industry downturn better than your competitors.

If you are interested in discussion more about how to generate scenarios that will enhance your team’s flexibility please give me a call at: 910-763-5194 or email me at harrison@thestratplan.com.

(c) 2015 Spex, Inc. Strategic Planning and Execution

Strategic Planning: Are Your Decisions Based on Facts or Opinions?

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President and CEO, Spex, Inc

 By Denise Harrison, Strategic Planning and Execution

Many people return from a strategic planning retreat frustrated, often asking: Were we really concentrating on what is important or were we focusing on what was “top of mind”? Did we make the right decisions or were we swayed by the most persuasive person?

A Better Way to Make Decisions: Thoughtful Consideration Based on Research

One way to prevent making decisions based on opinions and “top of mind” thinking would be to split your strategic planning process into three steps:

  1. Situation Analysis and Research Identification
  2. Strategic Formulation (based on the above research)
  3. Implementation – Turning Strategy into Action

Critically, Step 1 starts your strategic planning process off on solid footing, focusing on the current situation and identifying the important areas of research. These should include:

  • Current business segments: Are we positioned to meet their future needs? How are we differentiated?
  • Competition: What are they up to? How are they positioned in the market?
  • Other considerations that can change the competitive landscape: technology, suppliers, economy and regulations?
  • Opportunities: What are they? What is each one’s potential? What is the downside risk?

Taking time to research these topics and any others that your team deems worthy of research before the strategy formulation session allows for better decisions in which all team members are equipped to participate . It will enable your team to develop a strategy that will really differentiate you from the competition and set you on the path for future success.

What else?

Another important component of the research phase is to have the research collected in a consistent format. Having a template for the business segment, competitor and opportunity research is particularly important. This consistent format allows you to compare each topic given the same information rather than miscellaneous bits and pieces pulled together to present the researcher’s thoughts in a favorable light. This consistency allows for rigorous discussion of where to spend your company’s resources in order to achieve the best possible benefit.

If you would like to know how to make your strategic planning sessions more fact-based please contact me at harrison@thestratplan.com.

(c) Spex, Inc. Wilmington, NC, 2015.  Reprint permission granted with attribution.

Close the Gap between Planning and Execution – Monitoring Checklist Keeps Execution on Track

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By Denise Harrison, President and CEO

Are you achieving your strategy or are you slipping?  How can you keep your team on track?  Monitoring is one of the key aspects of successful execution.  Here is a monitoring checklist – if you can accomplish these items you are well on your way to successful execution:

  1. Meet monthly to discuss progress on key strategic initiatives.
  2. Team leaders should have action plans updated before the meeting.
  3. Ensure that all members of the strategic planning team are present.
    1. Discuss last month’s achievements
    2. Discuss and schedule what is planned for the coming two months
  4. Resolve shortfalls in progress and roadblocks.
    1. Solve the problem (rather than assess blame)
    2. Determine what it will take to get plan back on track and reallocate resources to achieve your desired results and timeframe
  5. Discuss any changes to business conditions – does this require a change in strategy/strategic initiative?  If so, discuss what course corrections are necessary.
    1. Stop/change any strategic initiatives that are no longer deemed important to achieving the strategy.
  6. Review new opportunities
    1. Assess if they need to go on the list by replacing an initiative already on the list
    2. If they are not more important than what has already been selected, then save for the next strategy planning cycle
  7. Walk out of the meeting with a clear picture of what will be accomplished before the next meeting.

If you are able to achieve all of the items on the checklist, you will achieve your strategic objectives faster by executing more efficiently. Potential pitfalls? Here are some pitfalls that I have observed over the years:

  1. Meetings that are held sporadically or infrequently – this makes it harder to get action plans back on track.
  2. Blame rather than problem solving – leaders fix problems rather than point fingers.
  3. Review by exception rather than review of each plan – it is important that each strategic initiative has visibility as a reminder of its importance to achieving the strategy.
  4. Adding strategic initiatives without taking any away.  This results in dilution of resources and often lowers margins and slows execution.
  5. Declaring victory before objective is achieved – yes, it is wonderful to release a new product, but it is better if the new product achieves its revenue and margin goals.

Avoiding these pitfalls by following the checklist will keep your plan on track. Would you like to learn more about executing your strategic plan?  Denise Harrison is President and CEO of Spex, Inc.  She can be reached at  harrison@thestratplan.com.

© Copyright 2013 by Center for Simplified Strategic Planning, Inc., Ann Arbor, MI — Reprint permission granted with full attribution.