Strategic plan quarterly priorities workshop December 2014

1. Questions / Answers: #RealStrategy || @RESULTSdotcom Strategic Plan Update -> Quarterly Priorities @StephenLynch @RESULTSdotcom

2. Questions / Answers: #RealStrategy || @RESULTSdotcom RESULTS.com

3. Questions / Answers: #RealStrategy || @RESULTSdotcom RESULTS.com - One Page Strategic Plan

4. Questions / Answers: #RealStrategy || @RESULTSdotcom Get the slide deck: www.RESULTS.com/slides Check out our software: www.RESULTS.com

5. Questions / Answers: #RealStrategy || @RESULTSdotcom

6. Questions / Answers: #RealStrategy || @RESULTSdotcom Full participation

7. Questions / Answers: #RealStrategy || @RESULTSdotcom Ask for everyone’s point of view

8. Questions / Answers: #RealStrategy || @RESULTSdotcom Productive conflict is important

9. Questions / Answers: #RealStrategy || @RESULTSdotcom No “group think”

10. Questions / Answers: #RealStrategy || @RESULTSdotcom Make a clear decision

11. Questions / Answers: #RealStrategy || @RESULTSdotcom Everyone commits to the decision

14. Questions / Answers: #RealStrategy || @RESULTSdotcom Access your Strategic Plan from the software

17. Questions / Answers: #RealStrategy || @RESULTSdotcom Strategy Centre Thought Leadership Library

18. Questions / Answers: #RealStrategy || @RESULTSdotcom 1. Reflection and lessons 2. Strategically analyze your industry 3. Confront your current reality like a VC 4. Create Strategic Projects and Tasks Agenda

19. Questions / Answers: #RealStrategy || @RESULTSdotcom Review Strategic Execution

23. Questions / Answers: #RealStrategy || @RESULTSdotcom What were the notable achievements you / your team accomplished? List your answers below:

24. Questions / Answers: #RealStrategy || @RESULTSdotcom What did you START doing that has been of value? List your answers below:

25. Questions / Answers: #RealStrategy || @RESULTSdotcom What did you STOP doing ? List your answers below:

27. Questions / Answers: #RealStrategy || @RESULTSdotcom How effectively did you measure progress and keep it visible? List your answers below:

28. Questions / Answers: #RealStrategy || @RESULTSdotcom In the past, we used Spreadsheets / MS Excel

29. Questions / Answers: #RealStrategy || @RESULTSdotcom Now we use software

30. Questions / Answers: #RealStrategy || @RESULTSdotcom Key Performance Indicators / Key Metrics

31. Questions / Answers: #RealStrategy || @RESULTSdotcom Everyone knows their own individual accountabilities

32. Questions / Answers: #RealStrategy || @RESULTSdotcom They can also see how the entire team is performing

33. Questions / Answers: #RealStrategy || @RESULTSdotcom Team leaders can drill down to identify the cause

34. Questions / Answers: #RealStrategy || @RESULTSdotcom Looks like one person is holding the team back

35. Questions / Answers: #RealStrategy || @RESULTSdotcom What are the reasons for this trend?

38. Questions / Answers: #RealStrategy || @RESULTSdotcom Take action to diagnose and solve the problem

39. Questions / Answers: #RealStrategy || @RESULTSdotcom How well did you hold each other accountable for hitting KPI “Green” thresholds, & achieving Task deadlines? List your answers below:

41. Questions / Answers: #RealStrategy || @RESULTSdotcom What valuable lessons did you learn during the last planning cycle? List your answers below:

43. Questions / Answers: #RealStrategy || @RESULTSdotcom What is Strategy?

49. "If everything you do needs to work on a 3 year time horizon, 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."

51. “This is a fantastic time to be entering the business world, because business is going to change more in the next 10 years than it has in the last 50” Bill Gates

53. Questions / Answers: #RealStrategy || @RESULTSdotcom “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

54. Questions / Answers: #RealStrategy || @RESULTSdotcom “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

55. Questions / Answers: #RealStrategy || @RESULTSdotcom Gary Hamel

58. Questions / Answers: #RealStrategy || @RESULTSdotcom Digital Darwinism = when technology and society evolve faster than your company’s ability to adapt

59. “It is not the strongest who survive, nor the most intelligent, but the ones most responsive to change”

60. Questions / Answers: #RealStrategy || @RESULTSdotcom Industry Analysis

63. Questions / Answers: #RealStrategy || @RESULTSdotcom “The questions remain the same. It’s the answers that keep changing” Albert Einstein

66. Questions / Answers: #RealStrategy || @RESULTSdotcom Don’t know the answer to a question? You need to know! What will you do to find out?

69. Questions / Answers: #RealStrategy || @RESULTSdotcom Rivalry between existing competitors

70. Questions / Answers: #RealStrategy || @RESULTSdotcom Who are your Key Competitors? (the “players”) What moves are they likely to make? ( 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) List your answers below:

71. Questions / Answers: #RealStrategy || @RESULTSdotcom New Entrants

72. Questions / Answers: #RealStrategy || @RESULTSdotcom Microsoft Office Google Apps

74. Questions / Answers: #RealStrategy || @RESULTSdotcom “ 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

75. Questions / Answers: #RealStrategy || @RESULTSdotcom What New Entrants could disrupt you? ( 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”) List your answers below:

76. Questions / Answers: #RealStrategy || @RESULTSdotcom Substitutes

80. Questions / Answers: #RealStrategy || @RESULTSdotcom What Substitute products / services could disrupt you? ( 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) List your answers below:

81. Questions / Answers: #RealStrategy || @RESULTSdotcom Suppliers

82. Questions / Answers: #RealStrategy || @RESULTSdotcom “Who” or “What” do you need to pay for to run your business?

84. Questions / Answers: #RealStrategy || @RESULTSdotcom Who are your Key Suppliers? What moves are they likely to make? ( Cost of supplies / Negotiating power of suppliers / Access to alternative sources of supply / Switching costs / Forward integration – supplier becomes competitor) List your answers below:

85. Questions / Answers: #RealStrategy || @RESULTSdotcom Customers

88. Questions / Answers: #RealStrategy || @RESULTSdotcom Who are your Key Customers? What moves are they likely to make? ( Customer demographic and psychographic description / 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) List your answers below:

90. Questions / Answers: #RealStrategy || @RESULTSdotcom Political Factors

92. Questions / Answers: #RealStrategy || @RESULTSdotcom What political factors / laws / regulations are likely to impact you? ( Industry specific regulations / political spectrum left vs. right / political stability / laws / taxes / trade policy / wars / environmental issues / health / safety / consumer laws / employment laws) List your answers below:

93. Questions / Answers: #RealStrategy || @RESULTSdotcom Economic Factors

99. Questions / Answers: #RealStrategy || @RESULTSdotcom What economic factors / changes in buying behaviors are likely to impact you? ( Economic growth / interest rates / exchange rates / inflation / availability of credit / investor interest in your industry / discretionary spending changes in customer purchasing habits / use of debt and leverage vs. more frugal spending / new forms of payment) List your answers below:

100. Questions / Answers: #RealStrategy || @RESULTSdotcom Social Factors

104. Baby Boomer 1946 -1964 Generation X 1965 - 1980 Millennial / Gen Y 1981 - 2000 Key life influences Cold War nuclear threat, NASA moon landing, Vietnam, Civil rights, Hippie culture AIDS, Divorce, MTV, Cold War ending, Personal computer, Microsoft Internet, Always connected, Share everything online, Facebook, Apple and Google Work environment Long hours, Office only Formally, Office, Increasingly working from home Office, Home, Wherever, Desires flexible schedule Work ethic Workaholic, Quality focus, Team player Clear direction, Get tasks done, Self reliant, Free agent Entrepreneurial, Variety, Multitasking, What’s next? Management style Hierarchy, Chain of command Everyone should manage themselves, Challenge people Collaboration, Consensus Personal Motivators Salary, Job title, Feeling valued and respected Money, Freedom, Break the rules and do it your own way Meaningful work, Work with creative people, Maintain personal life Mentoring Does not like feedback. Does not take negative feedback very well Does not think feedback is necessary. Will ask for it they want it Wants constant feedback, on demand at the push of a button Internal communication Face to face meetings focused on process, Memos Face to face meetings focused on results, Emails Face to face participative discussions, Emails, Collaboration software Client communication Face to face, Phone Face to face, Phone, Email Email, Social Media, Instant messaging Career Goals Climb the ladder at one company, Job security Build transferable career with variety of skills & experiences, Build a business. Build several parallel careers or businesses simultaneously

105. STANDARDIZED Industrial age work CUSTOMIZED Network age work LABOUR: obedience systems processes productivity TALENT: initiative innovation creativity passion Management 1.0 Management 2.0

106. “We are going to have to reinvent management; the way we lead, we plan, we organise, we hire, we motivate... because today, organisations are facing a set of challenges that are truly unprecedented." – Gary Hamel

107. Questions / Answers: #RealStrategy || @RESULTSdotcom What social factors / trends / attitudes / behaviors are likely to impact you? ( 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) List your answers below:

108. Questions / Answers: #RealStrategy || @RESULTSdotcom Technology Factors

112. Questions / Answers: #RealStrategy || @RESULTSdotcom What technological factors / trends / are likely to impact you? (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) List your answers below:

113. Questions / Answers: #RealStrategy || @RESULTSdotcom “Leaders must decide: What is our business? What should it be? What is not our business? What should it not be?” Peter Drucker

114. Questions / Answers: #RealStrategy || @RESULTSdotcom “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

115. Questions / Answers: #RealStrategy || @RESULTSdotcom “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

116. Questions / Answers: #RealStrategy || @RESULTSdotcom “The difference between successful people and very successful people is that very successful people say "no" to almost everything” Warren Buffett

117. Questions / Answers: #RealStrategy || @RESULTSdotcom “The difference between successful people and very successful people is that very successful people say "no" to almost everything” Warren Buffett

119. Questions / Answers: #RealStrategy || @RESULTSdotcom What do you need to START doing? (Because it is strategically important for your long term success = “Core”) List your answers below:

121. Questions / Answers: #RealStrategy || @RESULTSdotcom What do you need to STOP doing? (Because it no longer serves you / not working out / purposeful abandonment = “Non Core”) List your answers below:

125. Questions / Answers: #RealStrategy || @RESULTSdotcom Describe your current reality and make it obvious !!

126. Questions / Answers: #RealStrategy || @RESULTSdotcom Strength s Weaknesses Opportunitie s Threats

127. Questions / Answers: #RealStrategy || @RESULTSdotcom “Our people” is not a strength What is it about your people that makes your team strong? E.g. “Highly qualified software engineers” “Marketing” is not a weakness What is it about marketing that is weak currently? E.g. “Insufficient # of target customer leads” “Communication” is not a weakness What is not being communicated? E.g. “Strategy not well understood” Be specific with your SWOT: Use 3-5 word phrases

128. Questions / Answers: #RealStrategy || @RESULTSdotcom Think like a VC

129. Questions / Answers: #RealStrategy || @RESULTSdotcom What are the top strengths / assets / competencies within your business you can leverage (or build) in the next 12 months? Rank your Top 5 Strengths in order:

130. Questions / Answers: #RealStrategy || @RESULTSdotcom 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:

131. Questions / Answers: #RealStrategy || @RESULTSdotcom What opportunities can you pursue over the next 12 months that will position your company for future success? Rank your Top 5 Opportunities in order:

132. Questions / Answers: #RealStrategy || @RESULTSdotcom 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:

135. Questions / Answers: #RealStrategy || @RESULTSdotcom Current Strategic Projects

137. Questions / Answers: #RealStrategy || @RESULTSdotcom “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

139. Questions / Answers: #RealStrategy || @RESULTSdotcom Strategic Projects & their associated Tasks

140. Questions / Answers: #RealStrategy || @RESULTSdotcom “Help” menu - How to set up Projects and Tasks

142. Questions / Answers: #RealStrategy || @RESULTSdotcom Specific Measurable Achievable Relevant Time bound S A M R T “SMART” Projects

144. Questions / Answers: #RealStrategy || @RESULTSdotcom What are the top 3 Strategic Projects your company (or team) needs to execute in the coming period? - Each must address 1 or more issues described in your SWOT analysis (relevant) - Describe the tangible end-point milestones (so you know when to celebrate) - Balance short-term business improvement initiatives ( = improving “what is”) vs. building long-term strategic capability for the future ( = creating “what will be”) Current Strategic Project Due Date Person Accountable 1. 2. 3.

146. Questions / Answers: #RealStrategy || @RESULTSdotcom Many people can be involved in executing each Strategic Project, but only 1 person can be named accountable for the overall outcome The project leader makes sure everything “gets done” (it does not necessarily mean they do it all themselves) You may be leader in some projects and a follower in others Single Point Accountability

147. Questions / Answers: #RealStrategy || @RESULTSdotcom Set yourself up to succeed. “Stuff happens”. Fires need fighting. Set realistic outcomes and due dates that take into account “stuff happens” - yet still achieve your milestones. Don’t underestimate the difficulties and challenges you will face. Your colleagues are counting on you. Only make promises that you know you will be able to keep. Balance Optimism with Realism

148. Questions / Answers: #RealStrategy || @RESULTSdotcom 90% of those who join health and fitness clubs will stop going within the first 90 days. International Health Club Association

149. Questions / Answers: #RealStrategy || @RESULTSdotcom Strategic Project #1 Due Date Person Accountable Associated Individual Tasks

152. Questions / Answers: #RealStrategy || @RESULTSdotcom 90% of your time is spent on “Business as usual” activities You still need to create opportunities, make sales, deliver products and services, and collect money…. i.e. the things you do every day to pay the bills. Set aside 10% of your time ( ½ day) every week for strategic execution. Aim to complete 1 specific meaningful Task “the #1 thing” that will move each Strategic Project forward. Make time for Strategic Execution: The #1 Thing

153. Questions / Answers: #RealStrategy || @RESULTSdotcom What does being accountable overall for the execution of a Strategic Project mean? – You make sure everything “gets done” related to this Project – Colleagues with associated Tasks report to you as “project leader” – You meet with the project team on a weekly basis to make sure: – Current status of the Project is up to date (% complete / color / commentary) – You are aware of issues / delays - and know when it will actually be completed – The #1 TASK to move each project forward each week is agreed and visible – You help source the necessary support to keep things on track – You report to the company leadership once per week showing that you fully understand what is happening and have things under control

154. Questions / Answers: #RealStrategy || @RESULTSdotcom Using software to track projects

155. Questions / Answers: #RealStrategy || @RESULTSdotcom Strategic Projects

156. Questions / Answers: #RealStrategy || @RESULTSdotcom How will you keep progress visible on your Projects? How will you hold people accountable for Task achievement? List your answers below:

157. Questions / Answers: #RealStrategy || @RESULTSdotcom Get the slide deck: www.RESULTS.com/slides Check out the software: www.RESULTS.com Connect with Stephen Lynch: