This document provides guidance on developing a strategic plan for a company. It discusses defining a target market, conducting an industry analysis using Porter's 5 Forces model, identifying core competencies and value propositions to meet customer needs, and selecting a value discipline or generic strategy to guide strategic focus. Key aspects covered include setting a Big Hairy Audacious Goal (BHAG), defining core values and purpose, analyzing competitors, suppliers, substitutes and other industry forces, and crafting strategies to address threats and opportunities. The overall message is on the importance of having a clear strategic direction supported by the right people and execution to ensure future success.

1. @RESULTSdotcom @StephenLynch

15. 90% of those who join health and fitness clubs
will stop going within the first 90 days.
International Health Club Association

16. 90% of strategies FAIL due to poor execution [1]

17. Only 27% of employees have access
to their company strategic plan[2]

18. Only 1 in 20
employees
understands their
company strategy [3]
?

19. Only 15% of employees know
their company’s top priorities
Only 6% know their own
individual priorities [4]

20. 92% of companies don’t measure KPIs [3]

26. - A measurable goal with a deadline
- Long timeframe
- Clear, compelling and easy to grasp
- Inspires all your people, not just the management team
- Beyond current capabilities of the organization
- Set in understanding, not bravado
- Can outlive the involvement of the current leaders
Characteristics of a good BHAG©
Note – a BHAG is not about being “as large as possible” – it’s about being “great”
Define what greatness looks like for you - and how you will measure it

28. it

29. First we set our Goal
Then we plan our Strategy -
our climbing route & base camps along the way

32. What could your company be the best in the world at?
List your answers below:

33. What is your company passionate about? (Core Purpose)
List your answers below:

34. How will you make money in the future?
(your business model)
List your answers below:

35. Describe your company at a future date: (e.g. 2020)
Question: Your decision:
What will be your revenue?
What will be your profit?
Size and scope of your company operations?
Number of offices?
How many staff?

36. What products and services will you be offering?
List your answers below:

37. What geographic locations will you be serving?
List your answers below:

38. Describe a typical work day at your future company?
List your answers below:

39. What other measures of success have you achieved?
List your answers below:

40. BHAG© – statement
The words, phrases, and vivid, detailed
descriptions of your ideal future vision
which underpin your BHAG©
Best in world at
$$$$
Customers
Purpose
People Products
Achievements
Services
Scope
Culture

42. Typically expressed as a goal statement (supported by a vivid
description of what your company will be like when you achieve it)
Sample BHAG statement:
“The world’s #1 brand for house cleaning robots,
(expression of category leadership)
with annual sales of 15,000,000 units by 2020”
(plus a tangible measure you can use to
track your progress toward your BHAG)
Characteristics of a good BHAG©

43. State your BHAG©
State your BHAG© (in <140 characters)

44. Where will you display your BHAG©
so it is clearly visible to your people every day?
List your answers below:

45. BHAG©
Core Values Core Purpose
Vision

46. BHAG ©
The compelling view you will see when you reach the top

47. Core Values
Rules for team behavior, no matter what mountain you climb

48. Core Purpose
The reason why you climb mountains at all

51. Operations
Head of
Company
Marketing
Sales
Finance
R&D
Technology
Customer
Satisfaction
“First Who, then What.
Get the right people on the bus, then set the direction”

55. What is Strategy?

62. Strategy = choosing the right actions
to ensure your future success
Execution = implementing the right actions

63. “Without Strategy, execution is aimless.
Without Execution, strategy is useless”
Morris Chang

64. “Strategy is resource allocation.
When you strip away all the noise,
that’s what it comes down to.
Strategy means making clear cut
choices about how to compete.
You cannot be everything
to everybody.
You have to figure out
what to say NO to”
Jeff Immelt

65. “Many managers do not
understand the importance
of having a clear strategy.
Strategy is about
making trade-offs.
The essence of strategy
is choosing what NOT to do.”
Michael Porter

66. “The difference between
successful people
and very successful people
is that very successful people
say "no" to almost everything”
Warren Buffett

67. Dual Vision

68. “Companies need to operate
with one eye focused on
the short-term, and one eye
focused on the long-term.
Short-term is about projects
related to improving
the current core business,
and meeting the needs
of today’s target customers.”
Philip Kotler

69. “Long-term is NOT about
performance improvement.
It is about forgetting the past
and reshaping the business
to compete more effectively
in the future.
Often, this demands bold,
disruptive strategic moves
away from the present
to reshape the company
for future success.”
Philip Kotler

73. “The temptation of business
is always to feed yesterday
and to starve tomorrow”
Peter Drucker

74. Gary Hamel

75. “You must be slow in deliberation and swift in execution”

76. “All action must, to a certain extent,
be planned in a mere twilight"
Carl von Clausewitz

78. “Everyone has a plan until
they get punched in the mouth”
Mike Tyson

79. “You can't control the waves
but you can learn to surf”
Jon Kabat-Zinn

80. “Every leader needs to
clearly explain the top 3 things
the company is working on.
If you can't,
then you're not leading well”
Jeffrey Immelt

81. Industry Analysis

83. “The questions
remain the same.
It’s the answers
that keep changing”
Albert Einstein

86. Don’t know the answer to a question?
You need to know!
What will you do to find out?

90. The 5 Forces that shape industriesRivalry between
existing competitors

91. Who are your major COMPETITORS?
(companies offering similar products / services)
Now? Within the next 3-5 Years?

92. How competitive will your industry become?
(Industry life cycle: introduction > growth > maturity > decline / Industry growth rate / Industry profitability /
Number of competitors / Market share / Capital requirements / Globalization / Commoditization / Cost
advantages / Economies of scale / Friendly vs. Aggressive competition)
Now? Within the next 3-5 Years?

93. What strategic moves are your major COMPETITORS
likely to make?
Now? Within the next 3-5 Years?

94. What strategic moves do you need to make
to address COMPETITOR “threats” or “opportunities”?
Now? Within the next 3-5 Years?

96. "If everything you do needs to work
on a 3 year time horizon, then
you're competing against a lot of
people.
But if you're willing to invest on a
7 year time horizon, you're now
competing against a fraction of
those people, because very few
companies are willing to do that.
We can't realize our potential as
people or as companies unless we
plan for the long term."

97. Threat of
New Entrants

101. "Firms are remarkably creative in defending
their entrenched technologies, which often
reach unimaginable heights of elegance and
design and technical performance only when
their demise is clearly predictable.“
James Utterback

102. “Out there in some garage is an entrepreneur who's
forging a bullet with your company's name on it.
You've got one option - shoot first” Gary Hamel

103. How will NEW ENTRANTS influence your industry?
(Industry barriers / Capital requirements / Learning requirements / Access to supplies / Access to
distribution / Performance vs. incumbents / Perceived differentiation in customers’ mind / Loyalty
to incumbents / Switching costs / retaliation by incumbents / “Innovator’s dilemma”)
Now? Within the next 3-5 Years?

104. What strategic moves do you need to make
to address NEW ENTRANT “threats” or “opportunities”?
Now? Within the next 3-5 Years?

105. Threat of Substitutes

109. SUBSTITUTE OFFERINGS influencing your industry?
( Technology changes / Industry structure changes / Availability of substitutes / Performance of
substitutes / Perceived differentiation in customers’ mind / Switching costs / Customer desire to
seek out alternative solutions to satisfy their need)
Now? Within the next 3-5 Years?

110. What strategic moves do you need to make
to address SUBSTITUTE “threats” or “opportunities”?
Now? Within the next 3-5 Years?

111. Bargaining Power
of Suppliers

112. What do you need to pay for
to run your business?

113. Who (or what) are your major SUPPLIERS?
Now? Within the next 3-5 Years?

114. How will SUPPLIERS influence your industry?
( Cost of supplies / Negotiating power / Access to alternative sources of supply / Switching costs /
Forward integration – supplier becomes competitor)
Now? Within the next 3-5 Years?

115. What strategic moves are your SUPPLIERS
likely to make?
Now? Within the next 3-5 Years?

116. What strategic moves do you need to make
to address SUPPLIER “threats” or “opportunities”?
Now? Within the next 3-5 Years?

117. Bargaining Power of Customers

120. Who (or what) are your major CUSTOMERS?
Now? Within the next 3-5 Years?

121. How will CUSTOMERS influence your industry?
( Customer power to dictate prices or terms / Ability to influence other customers / Customer reviews /
Perception of differentiation between vendors / Loyalty / Switching costs / Backward integration –
customer becomes competitor)
Now? Within the next 3-5 Years?

122. What key moves are your CUSTOMERS
likely to make?
Now? Within the next 3-5 Years?

123. What strategic moves do you need to make
to address CUSTOMER “threats” or “opportunities”?
Now? Within the next 3-5 Years?

125. Political Factors

128. POLITICAL factors influencing your industry?
(Industry specific regulations / political spectrum left vs. right / political stability / laws / taxes /
trade policy / wars / environmental issues / health / safety / consumer laws / employment laws)
Now? Within the next 3-5 Years?

129. What strategic moves do you need to make
to address POLITICAL “threats” or “opportunities”?
Now? Within the next 3-5 Years?

130. Economic
Factors

134. ECONOMIC factors influencing your industry?
( economic growth / interest rates / exchange rates / inflation / availability of credit / investor interest /
changes in customer purchasing habits / use of debt and leverage vs. more frugal spending)
Now? Within the next 3-5 Years?

135. What strategic moves do you need to make
to address ECONOMIC “threats” or “opportunities”?
Now? Within the next 3-5 Years?

136. Social Factors

141. SOCIAL factors influencing your industry?
(demographic trends / career attitudes / health issues / environmental concerns / communication styles /
social behaviors / online behaviors / media consumption / purchasing behaviors / cultural differences /
generational differences / income equality / society’s evolving attitudes, values & beliefs)
Now? Within the next 3-5 Years?

142. What strategic moves do you need to make
to address SOCIAL “threats” or “opportunities”?
Now? Within the next 3-5 Years?

143. Technology
Factors

147. TECHNOLOGY factors influencing your industry?
(New technologies / Rate of technology adoption / Impact of internet and mobile / Social media /
New devices & interfaces / Jobs replaced by technology / Business models disrupted by technology)
Now? Within the next 3-5 Years?

148. What strategic moves do you need to make
to address TECHNOLOGY “threats” or “opportunities”?
Now? Within the next 3-5 Years?

149. Target Market

150. Geographic Area

151. “There is only 1
winning strategy.
Carefully define
the target market,
and direct a superior offering
to that target market.”
Philip Kotler

153. Doug’s rule = “Delight the few to attract the many”
Target market = “Who” your ideal customers are
Your target market are the customers you seek to
delight and excite the most with your offer

156. The target market is the center
of your marketing “bulls eye”
“Who” you have in mind when you design your
product / service - and your marketing communications
It does not necessarily mean they will make up the
majority of your sales volume

157. When you have a clear target market:
Your product / service design has more clarity & focus
(you know who you are building it for)
Marketing communications are more effective
(you know who you are talking to)
Target customer perceives you as the expert at meeting
their needs - “This company is talking to me”
(experts can get charge more and earn higher margins)

158. Seth Godin

159. Seth Godin

160. A product for everybody is a product for nobody
Don’t cater for the masses,
cater to your ideal target customer
Focus on your most profitable market segment,
the one with the most growth potential,
the one that is most influential.
Design a product / service that is remarkable to them

161. Who are your most profitable customers?
Describe your most profitable customers Give an example

162. Who are your most influential customers?
Describe your most influential customers Give an example

163. What type of customer has the most potential for growth?
Now? Within the next 3-5 Years?

164. Don’t know the answer to a question?
You need to know!
What will you do to find out?

165. The ideal target customer COMPANY:
Question: Your decision:
Industry types?
Revenue?
(as narrow a bracket as possible)
Number of staff?
(as narrow a bracket as possible)
Geographic locations?

166. The ideal target customer PERSON (purchase decision maker):
Question: Your decision:
Male or Female ?
(select one)
Age?
(within a 10 year age bracket or less)
Marital / Relationship / Family status?
(a description of their home life)
Occupation?
Income?
(as narrow a bracket as possible)

167. The ideal target customer PERSON (purchase decision maker):
Question: Your decision:
Geographic location?
Lifestyle description?
Core Values / Attitudes / Beliefs?
Brand names they associate with?
(car, clothing, jewelry, technology, shops, equipment, tools,
sports goods, games etc)
Heroes / Roles models?
(who they aspire to be like)

168. The ideal target customer PERSON (purchase decision maker):
Question: Your decision:
Media they consume?
(TV, magazines, radio, newspapers, websites, aggregators
etc – which ones?)
Media they participate in?
(social media, games – what brands? What platforms?)
Who (or what) influences their purchase
decision?
Rate of technology adoption? (see diagram)

170. The ideal target customer PERSON (purchase decision maker):
Question: Your decision:
What is the typical buying process: from initial
awareness → making the actual $ purchase?
What does ideal customer typically purchase?
Ideal customer value of purchase?
Ideal customer frequency of purchase?
Lifetime value of ideal customer?

171. The ideal target customer PERSON (purchase decision maker):
Question: Your decision:
What DO they like about your industry?
What DON’T they like about your industry?
What DO they like about your company?
What DON’T they like about your company?

172. With regard to what your company provides:
Question: Your decision:
What is the customer trying to achieve?
“jobs to be done” – what are they hiring your
product / service to do for them?
What is the customer’s biggest problem?
What is the customer’s biggest frustration?
What is the customer’s greatest desire?
How does your offering make them feel?

174. She is 35-45 years old
She is a very hard working mother
She is married to a hard working husband & they own their own business
They have school age children, and the hubby is on the Board of Trustees
She is a mother that would attend the school camps.
She drives a SUV so she has room for everything including the dog.
She plays tennis and he is into water sports
She enjoys a nice wine with friends, and her friends would be just like her
When they are building or renovating, they use the services of Interior Designers,
to make sure it is all done properly, and it looks good when friends come around!
Rachel Browne

176. Describe in < 140 Characters
Describe your ideal target market customer: (in <140 characters)
Describe what your ideal customer really wants: (in <140 characters)

178. Key Benefits you offer to meet the customer’s needs?
Now? Within the next 3-5 Years?

179. The way you interact with your target customer?
Now? Within the next 3-5 Years?

180. Core Competencies you need to meet the customer’s needs?
(e.g. People, Skills, Technologies, Special Abilities)
Now? Within the next 3-5 Years?

181. Geographic Area
Geographic Area

182. What geographies will you offer your products / services to?
Now? Within the next 3-5 Years?

183. Value Discipline
What game are we playing (to win)?

185. Strategic Focus
What do your target
customers value most?
Value Discipline
(Generic Strategy)
Company examples
Low cost
Consistency
Speed
No hassles
Operational Excellence
Dell, Wal-Mart, FedEx,
McDonalds,
South West Airlines
State of the art
Products and Services Product Leadership
Apple, Sony, Intel, Merck,
Pfizer, Nike, 3M
Customized products
Personalized solutions Customer Intimacy
McKinsey, Nordstrom, IBM,
Ritz Carlton

186. "Different customers buy different kinds of value.
You can't hope to be the best in all dimensions,
so choose your customers and narrow your value focus.
Producing an unmatched level of a particular value
requires a superior operating model,
a machine dedicated to just that kind of value."

198. What is your chosen Value Discipline (Generic Strategy)?
Question: Your decision:
What is your chosen Value Discipline?

199. Core vs. Non Core Activities

200. List all the activities you currently perform
Now?

201. “Leaders must decide:
What is our business?
What should it be?
What is not our business?
What should it not be?”
Peter Drucker

202. “Strategy is resource allocation.
When you strip away all the noise,
that’s what it comes down to.
Strategy means making clear cut
choices about how to compete.
You cannot be everything
to everybody.
You have to figure out
what to say NO to”
Jeff Immelt

203. “Many managers do not
understand the importance
of having a clear strategy.
Strategy is about
making trade-offs.
The essence of strategy
is choosing what NOT to do.”
Michael Porter

204. “The difference between
successful people
and very successful people
is that very successful people
say "no" to almost everything”
Warren Buffett

211. “There is nothing so useless as doing efficiently
that which should not be done at all.” Peter Drucker

212. CORE vs. CONTEXT
CORE: Activities where you have “special abilities”
that create a dramatic and meaningful point of difference
in the mind of your target market customer
CONTEXT: Any activity that does NOT differentiate
your company from the target customer's viewpoint.
(With these activities you aim to meet, but not exceed,
the minimum acceptable standard to perform this activity)

214. 3-5 Year Strategic Moves

215. “Every leader needs to
clearly explain the top 3 things
the company is working on.
If you can't,
then you're not leading well”
Jeffrey Immelt

216. On an annual basis thoroughly review and update your:
Vision (BHAG© / Core Values / Core Purpose)
Industry Analysis
Target Market & Geographic Area
Value Discipline (Generic Strategy)
Core vs. Non Core Activities
Then, using these workshops as the context…..
Strategic Decision Time!

217. List all the Strategic Moves you have identified so far
Now? Within the next 3-5 Years?

218. What are the top 3 strategic moves to position your firm
for industry success within the next 3-5 years?
3-5 Year Strategic Move Person Accountable
1.
2.
3.

222. Make it obvious!

223. “Our people” is not a strength
What is it about your people that makes your team strong?
E.g. “Highly qualified people”
“Marketing” is not a weakness
What is it about marketing that is weak currently?
E.g. “Insufficient target customer leads”
“Communication” is not a weakness
What is not being communicated?
E.g. “Strategy not well understood”
Be specific: Use 3-5 word phrases

225. What are the key strengths / assets / competencies within
your current business that you can leverage?
Rank your Top 5 Strengths in order:

226. What are the biggest weaknesses within your current business
that could be fixed or improved in the next 12 months?
Rank your Top 5 Weaknesses in order:

227. What opportunities can you pursue over the next 12 months
(aligned to your BHAG & 3-5 Year Strategic Moves)
that will position your company for future success?
Rank your Top 5 Opportunities in order:

228. What external threats do you need to reduce
(or closely monitor) to ensure they do not derail your plans?
Rank your Top 5 Threats in order:

229. Current Strategic Projects

233. Specific
Measurable
Achievable
Relevant
Time bound
S
A
M
R
T

234. What are the top 3 Strategic Projects
your company (or team) needs to execute this quarter?
- Must address one or more issues described in your SWOT analysis (relevant)
- Tangible end-point milestone (you know when to pop the cork)
- Balance short-term business improvement initiatives (improving “what is”)
vs. building long-term strategic capability for the future (creating “what will be”)
Company Strategic Project Due
Date
Person
Accountable
1.
2.
3.

235. “However beautiful the strategy, you
should occasionally look at the results”

237. @RESULTSdotcom @StephenLynch