Legacy Foundation Business and Leadership

Archive for the ‘Strategic Planning’ Category

Indeed, Business Viability Analysis is a boring topic. But this is also the most critical component of your business & marketing plans which provides direction on the potential market environment, market demand and supply, and to extent, guides your potential market direction decisions. Note that financial modeling is beyond the scope of this article.

I have segregated the Business Viability Analysis into two major categories, namely Overview Evaluation models and Your Domain Business Evaluation models. The former includes Porter’s 5 Competitive Forces Model, P.E.S.T. Analysis. The latter includes SWOT Analysis Matrix, Target Segment Analysis, Product Life Cycle Analysis, Competitive Advantage Model, Product Growth Directions, BCG Matrix. Both set of models will help you to qualify if the business in question is viable from market demand supply as well as potential market perspectives.

1. Porter’s 5 Competitive Forces Model -

Porter’s 5 Competitive Forces model is developed by Michael E. Porter, an important strategic analysis from a broad market environment perspective. It explores the 5 major factors namely Bargaining Power of Supplier, Customer Power/Buyer Power, New Entry Threats, Substitution Threats & Competition Rivalry.

These 5 forces are interdependent, influencing and interplaying with each other at any given point in time. This is a model which needs to be revisited on a consistent basis, usually, over a half yearly time frame for re-evaluation of market trend.

2. P.E.S.T. Analysis -

Doing your “PEST control” ensures good health a strong pulse for your business. PEST analysis essentially means macro environmental evaluations such as Political & Legal, Economic, Social & Cultural, as well as Technological. Read the rest of this entry »

Establishing An Information Management Policy, by: acknowledging the importance of information to the strategic planning process and to the operational performance of the organisation; implementing an information management policy that will ensure a continuous flow of appropriate information to all levels of the organisation; allocating responsibility for the maintenance and improvement of the policy to an executive level manager; allocating level-specific responsibilities for the maintenance of the information flow.

Implementing an information management policy that is robust and rigorous is essential, not only at the strategic, corporate levels, but operationally as well. In the case of strategic planning, the quality of the information gathered, the channels used to distribute that information laterally and vertically throughout the organisation, and the interpretation of the information gathered, is vital. Without a sound foundation, the policy and its procedures, the information that is fed into the strategic planning process will be flawed, in parts at least. This will, inevitably, be damaging to the chances of the chosen strategies being successful.

Identify Information Needs, by: discussing information needs with the strategic planning team; using scenario building techniques to identify potentially differing information needs; identifying information needs of partners and key stakeholders who will be involved in the planning process; forecasting information needs for the strategic planning process; forecasting post-implementation information needs; reviewing existing information, channels and flows and identifying gaps and inadequacies; drawing up a list of information needs. This is another crucial early stage in the use of information in the strategic planning process. The leader(s) and other members of the planning team must be clear about their information needs. Whilst at this stage it is not possible to identify all the specific details, it is essential to draw up a list of categories of information that will lead to sufficient information being gathered. For example, one of the categories will be information on forecast changes in the external environment, another will be information on current and predicted competitor behaviour, another may be information on potential manpower resources, and so on. For public sector organisations one of the categories will be predicted government actions, such as in the setting of financial targets or other performance indicators. The role of the planning team is to ensure that their needs are understood and satisfied. Read the rest of this entry »

Running your own business is a highly rewarding, but often a risky endeavor. As with anything else, increasing your chances of success begins with preparation. And when it comes to transforming your dream into reality, the key to successfully jump starting your business is simple: plan the work and work the plan. Whether you’re just getting a new business off the ground, expanding the business you have, or purchasing a business, devote plenty of time to planning:

• Begin with a discovery process to confirm the viability of your venture.

• Do your homework.

• Uncover fundamental objectives, insights, opportunities and risks.

• Research the market.

• Examine your offering, market conditions, trends, and the competition.

• Excavate potential problems.

• Outline your goals and objectives.

• Compile the business intelligence you need to create a solid foundation of actionable

information to chart your present and future direction.

The next logical step is to develop a plan—a strategic business plan that functions as a living document to define your objectives, guide your business, and take you from Point A(where you are today) to Point Z (where you’d like to be). But remember—a strategic plan is about more than securing funding—it’s essential to jump starting your business. And once you’ve written your business plan, follow it up with an action plan that spells out your short and long-term objectives and how you’ll achieve them.

Just remember this—there is no underestimating the power of planning. As the former CEO of Octel and Lucent Technologies notes, “People usually plan their vacations more carefully than they plan their careers. I’m a compulsive planner, but there were times when I had no idea what I was doing.”

Even when you have no idea what you’re doing, developing and implementing a plan improves your chances of achieving your goals. This article outlines the fundamental components of crafting a strategic plan to take your business to the next level.

What is a strategic plan?

Strategic planning is the process by which the key stakeholders (you and your partners) in an organization

envision its future and develop the procedures and operations that will enable you to achieve that vision.

A strategic business plan serves two purposes. First it’s an internal document that defines your goals, strategies, and tactics. Second, it’s a tool for raising capital. However, you need a plan, whether you’re looking for capital or not. Without a plan you won’t know where you’re going and you have no way to benchmark or track your progress.

With a strategic plan you have a roadmap that enables you to look ahead, allocate resources, focus on key points and prepare for problems and opportunities. Read the rest of this entry »