| Over the past 12 to 18 months financial markets | | | | Again, as an example, was the Strategic Planning |
| worldwide have come under huge financial pressure. | | | | Process at Nokia Corporation, the world leader in the |
| This situation will continue for at least the next planning | | | | cell phone industry, too focused on traditional product |
| period and more than likely well beyond. An economic | | | | and traditional competition? How could Apple iPhone |
| downturn is certainly a recognized phase of a | | | | and iPod Touch or even Blackberry, come into a very |
| normalized business cycle; however the magnitude | | | | price point competitive marketplace, create demand |
| and potential duration of the current cycle is no doubt | | | | with multiple function products and grab big chunks of |
| unique. As such there has never been a greater need | | | | market share? Nokia Corp. just announced (03/18/09) |
| for in depth Strategic Planning. | | | | another layoff of 1700 employees worldwide which |
| A well integrated Strategic Planning Process has | | | | followed the closure of a research center and layoff |
| always been the hallmark of strong Company earnings | | | | of 320 jobs. Nokia had also made 2300 temporary job |
| and positive market share growth among industry | | | | layoffs a month earlier. |
| leaders. The Process is an annual discipline that puts in | | | | There are similar examples in almost every industry |
| place all of the product and project initiatives for the | | | | segment. There has already been too much written |
| upcoming year as well as the operating initiatives and | | | | about GM, Ford and Chrysler and how, in the early |
| budgets for each of the business units or functional | | | | years they basically ignored the entry of Honda, |
| areas of the company. | | | | Toyota and Datsun (now Nissan) into the North |
| The Annual Strategic Planning Process could begin in | | | | American automotive marketplace. All too often a |
| the latter part of the third quarter with the external | | | | company's greatest strength ultimately becomes their |
| Environmental Scan evaluation of the marketplace. | | | | biggest weakness. For many decades the power of |
| The Strategic Planning Team(s) for each business unit | | | | the UAW/CAW in collective bargaining for wages, |
| would compile the research data. They would then | | | | benefits and working conditions represented in many |
| take Senior Management through a detailed review | | | | ways the solid foundation of the North American auto |
| and update of the political changes including the huge | | | | industry in attracting and keeping a skilled workforce. |
| potentially positive impact of the 'bailout' action plans of | | | | Today it is arguably its biggest weakness. |
| the Barack Obama and Stephen Harper | | | | In more recent years both KIA and Hyundai have also |
| administrations, the 'New Reality' economic operating | | | | come on the scene. A market that was characterized |
| environment and its potential business consequences, | | | | by: (1) huge barriers to entry, (2) billions of dollars of |
| regulatory changes, and social trends for their | | | | upfront costs and (3) brand loyalty competitive forces. |
| marketplace. | | | | As the 'Big Three' continued to embrace their 'Big |
| The next stage would be the competitive | | | | Block' strategy, market research probably pointed to a |
| environmental update with close attention each key | | | | very significant quality/fuel efficiency/price point |
| competitor as well as new entrants and those exiting | | | | advantage for potential new entrants that history has |
| the business. The research data on customer and | | | | shown represented a huge opportunity. On the subject |
| supplier profile changes that may impact the business | | | | of brand loyalty, there is new brand loyalty around the |
| going forward is also an essential element. There is no | | | | Toyota Prius, marketed to the new cost and |
| question that both the advancements in technology | | | | environmentally 'green' conscious consumer who |
| and the seemingly 'out of the blue' arrival of non | | | | wants an efficient car that can plug-and-play with all of |
| traditional competitors may in fact, along with a | | | | the latest media. Again, a corporate strategy targeted |
| floundering economy, be the most critical aspects of | | | | to a specific market segment that has left the |
| Strategic Planning in this business cycle. | | | | competition scrambling. |
| It cannot be emphasized enough this 'mission critical' | | | | With those questions then, what are the answers? |
| aspect of the Strategic Planning Process. It has often | | | | The answer to all these questions is simple. The |
| been said that companies of all sizes that either go | | | | Strategic Planning Process is the first step within the |
| bankrupt or enter Chapter 11, don't plan to fail, they just | | | | discipline of Business Process Management. The |
| fail to plan. They tend to embraced internalized, very | | | | follow-up steps are then Business Case Methodology |
| linear planning processes with little consideration of their | | | | to ensure that each and every meaningful Company |
| operating environment. | | | | initiative is accompanied by a detailed Business Case |
| In larger companies this stage of the process could | | | | for Senior Management and/or Board approval. |
| take upwards of two months, for smaller organizations, | | | | The next stage in Business Process Management is |
| somewhat less. But irrespective of organizational size | | | | either the Product Development Process or the |
| the process is a key annual attribute of the 'excellence' | | | | Project Management Process that represents a |
| companies that have long been the topic of the Tom | | | | disciplined, staged workflow process to ensure on time |
| Peters/Robert Waterman 'In Search of Excellence' | | | | on budget results. There are 'go and no go' check |
| writings on America's best run companies. | | | | points for timely reporting back to Senior Management |
| All too often the road of an internalized strategic | | | | Board within each process. The final stage of the |
| planning process with only a cursory look at the | | | | completion of a project would be its transfer into |
| traditional competition has led to market share self | | | | Operations. The final stage of the completion and |
| destruction. A good case in point may come from the | | | | launch of a product would be the transfer of product |
| portable devices industry. Did Sony Corporation see | | | | responsibilities into the Product Management Process. |
| Apple USA coming? Quite possibly not. As a very | | | | Whether it is a Super Bowl Champion, a World Series |
| nontraditional competitor, how could the Apple iPod and | | | | Champion an Olympic Champion, a College Champion, |
| Apple iTunes come into an already overcrowded | | | | High School Champion or a Corporate Champion the |
| marketplace; put a very significant stake in the ground | | | | process is very similar. To each discipline there is a |
| with products that were more than double the price | | | | process and within the process there are |
| and take huge market share away from Sony | | | | fundamentals. Embrace the process and become a |
| Walkman, Sony Discman and Sony Watchman, | | | | fanatic at the fundamentals. |
| among others? | | | | |