Ftm Business Template - Strategic Framework
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Strategic Framework Business Template
What is a Strategic Framework?
When should you use it?
The Strategy Framework template provides a structured method for planning a business or team strategy. The framework will determine the products and services that will be offered, the markets and customers that will be served and the distinctive capabilities of the business or team.
Ensure that the Strategic Framework forms an integral part of the Annual Business Planning (ABP) process. Before you consider forecasts and finances, take time to agree on product and market boundaries. Once set, put formal quarterly review meetings in everyone’s diaries.
Why is it relevant?
How should you implement it?
A strategy provides the overall vision, direction and priorities for a team. It will contain the basis on which the business will compete and survive in a competitive market place. Without it, the business or team is often reactive and not aligned to key success factors.
Before setting the framework, ask functional heads around the business to collect and assess Market and Customer Insights (MCI) – “what is happening in our business environment and how does it impact us?” Then plan a workshop where a cross-functional team will review the MCI and make decisions about products and markets as laid out in the Strategic Framework template. Then, translate the framework into tangible changes to day-to-day operations – this will form your overall change programme. Finally, reset the monthly Key Performance Indicators (KPIs) that you use to monitor performance so that you can check if your strategy is correct and if it is happening.
Who needs to be involved? Make sure that the strategy is owned by the most senior manager – for a business this will be the Chief Executive. However, involve a cross-functional team in the development process in order to provide expert inputs and to gain commitment to implementation of necessary changes.
© SofTools, 2009. For more information on related products and services, visit www.Fast-Track-Me.com or contact us at: [email protected]
Strategic Framework This is a case example based on a fictitious company called TVT – all the data is displayed for demonstration purposes only. For a detailed explanation of what each cell is used for please refer to the Virtual Consultant on the following pages.
Form 1: Strategic Positioning Statement of Strategic Intent Frozen food market place is a stable international market dominated by major retail outlets and food service organisations. The essential nature of the product makes it a stable and mature market place. It Industry Overview can be segmented into bulk purchase (such as 1 and 2 litre tubs) and ‘impulse’ purchase (such as Ice Lollies) – this tends to be much more seasonal and susceptible to the weather
Business Drivers
Major trends currently include supplier consolidation (reducing our purchasing power and increasing dependency on sole supplies), escalating food ingredient costs (making it more difficult to maintain margins), and relentless EU legislation (further increasing costs). Consumers are becoming more health aware which is raising increasing questions around the need to legislate, and there is a continuing preference for luxury / higher quality brands
Our mission is to be a leading provider of specialist frozen dessert produce to UK retailers before the end Purpose or Mission of 2010. This will be achieved through a combination of organic growth and acquisition, and through a focus on aligning our business strategy with serving the needs of the major retailers We differentiate ourselves from our competition through the levels of service delivered through our supply chain excellence. Whilst we will not compete on price, we will drive our costs down relentlessly Unique Capability so that we will not have a price disadvantage versus our major competitors – this will be increasingly important as the market becomes more global
3 Year Vision
Our three year vision is to build the retail business to a value of £16,000,000 with a single customer representing less than 25% of turnover. We will explore additional product-markets, but will always seek to maintain an limit to the size of the overall portfolio (operating a one-in one-out policy for all future new product introductions
Funding Mechanism
The business will be funded through operational cash-flow for the next two years, but external investment capital will be considered to fund selective investments in acquisitions as we move into specialist UK markets
Growth or Exit Strategy
We will grow the business through selective acquisition of complimentary small businesses, and will float on the UK market before the end of 2015
© SofTools, 2009. For more information on related products and services, visit www.Fast-Track-Me.com or contact us at: [email protected]
Form 2: Product and Services Product Segments
Top 3 Current Products
Top 3 New Product Ideas
Competitors & Substitutes
P1
Frozen
Surprise-lite, Arctic range
Lo-Cal
Walls
P2
Chilled
Trio complete, Trio multipack, TVT
2-Fresh, F2006 range
C217
P3
Own label
Arctic flavours, Moller, Standard
OL - Alpha, Super sweet range
RESEARCH
P4
Ready-to-bake
NA
NPD required
Macphie direct, ABC direct
Form 3: Customers and Markets Market Segments
Top 3 Current Customers
Top 3 Target Customers
Major Competitors
M1
Major retailers in the UK Tesco, Waitrose, Asda
Morrisons
Walls
M2
Second tier retailers in the UK
Iceland, 24-7, Co-op
Mango, Esso stores. Independents
Indo direct, System-X
M3
Food Service
Starbucks, Brakes
Sainsbury in-store cafe
Indo direct, System-X
M4
Export markets
Bechtel retail
RESEARCH
RESEARCH
Form 4: Product-Market Priorities Product-Market Matrix
M1
M2
M3
M4
Major UK retailers
Second tier retailers
Food Service
Export markets
P1
Frozen
H-Green
H-Green
H-Red
H-Red
P2
Chilled
M-Red
H-Green
M-Green
Research-Blue
P3
Own label
L-Amber
M-Green
M-Amber
Research-Blue
P4
Ready-to-bake
L-Amber
NoGo-Black
NoGo-Black
NoGo-Black
Form 5: Financials Forecast Current
Year 1
Year 2
Year 3
Financial Assumptions
P1
£5,000,000
£7,000,000
£7,500,000
The frozen market place will continue to grow as more £8,000,000 luxury items are developed for this category, and health products such as Low Fat become generally accepted
P2
£2,000,000
£2,500,000
£3,300,000
Whilst the market is stable, there are still opportunities to £4,000,000 grow sales through wholesalers. It will be possible to achieve this through existing relationships
P3
£2,500,000
£2,500,000
£2,500,000
£2,500,000
Food service will continue to be highly competitive and cost reductions across the product range will be required
P4
£0
£500,000
£1,000,000
£1,500,000
Ready-to-bake is exciting but still unproven market space and needs more research before committing resources
£9,500,000 £12,500,000
£14,300,000
£16,000,000
© SofTools, 2009. For more information on related products and services, visit www.Fast-Track-Me.com or contact us at: [email protected]
Form 6: Core Process Model Core Process Deliverable or Key Performance Indicator
Status Change Programme
People & Leadership
Clarity of direction and executive decision making at both strategic and operational levels - including the management and motivation of all staff. DELIVERABLE: Motivate team with less than 10% turn-over
Green
Industry Drivers
Effective external scanning process to proactively identify and analyse opportunities and threats in the market. DELIVERABLE: 100% of major trends are reported in the internal quarterly MCI reports
Need to establish a formal quarterly external analysis and Amber dissemination programme across all functions
Appropriate strategic direction in terms of current and future product-markets and defendable source of competitive advantage. DELIVERABLE: At least one clear USP reflected through all functional teams
Green
Strategy & Goals
Creating of a culture of creativity, innovation and constructive Innovation & challenge where it is accepted that doing what we did yesterday Change will not succeed tomorrow. DELIVERABLE: Active Ideas Pipeline 'beyond NPD'
Red
Development of a portfolio of products and services in line with musts and wants of target customer groups as defined in the strategy. DELIVERABLE: Gaps in Product Portfolio addressed in line with roadmap
Green
Brands & Marketing
Positioning of the TVT corporate and product brands as the preferred supplier in our chosen markets. DELIVERABLE: Over 75% unprompted awareness within target customer group in annual survey
Green
Sales Channels
Development of profitable sales in line with strategic targets, and achieving the right level of balance between direct and indirect channels. DELIVERABLE: Quarterly sales in line with revenue and profit targets
Green
NPD & Sourcing
Effective and efficient operational processes delivering against Operations & operational KPIs, what is required, when required. DELIVERABLE: Process Exceeding operational KPIs in all areas of the supply chain Finance & Cashflow
Availability of both free cash-flow from operations and external funding for investments as and when required. DELIVERABLE: Financial results in line with Annual Business Plan
Compliance with all legal and ethical requirements, and the Business effective monitoring and control of day-to-day business activities. Governance DELIVERABLE: Occurrence of monthly meetings and maintenance of risk register
Need to implement an ideas and innovation process focusing on radical process change and NPD process improvement
Need to instigate a programme of complexity cost reduction Amber focusing on product and customer simplification Green
Red
Need to identify industry best practices for all core processes and instigate a regular audit / compliance process
© SofTools, 2009. For more information on related products and services, visit www.Fast-Track-Me.com or contact us at: [email protected]
Graphic: Core Process Model Core Process Model
Form 7: The Top Team Cornerstone
Person
Prime Responsibilities
Status Change Programme
Chief Executive
John Mactear
Leadership, motivation and direction. Networking within the industry and being seen as a 'thought leader'
Need to build industry Amber network and establish influencing process
Operations
Efficient and effective production and supply chain Joanna Derry including development of food technologies to support the planned NPD programme
Sales & Marketing
Maid Bhatti
Securing of repeatable profitable sales growth, researching the export market space, and developing the TVT brand
Need to develop partner Amber and channel management programme / capability
Finance
Jaz Qadeer
Cash-flow management and investment for growth
Green
NonExecutives
Patrick Harper
External challenge, issues of Governance, and access to networks for sales and potential funding
Green
Green
© SofTools, 2009. For more information on related products and services, visit www.Fast-Track-Me.com or contact us at: [email protected]
Virtual ConsultantTM The Virtual ConsultantTM provides a step-by-step guide to completing this business template. It is worded as a series of questions designed to make you stop and think about this topic in a challenging and creative way – as if a business coach or consultant was sitting next to you.
Form 1: Strategic Positioning Industry Overview What is the name, size, growth and description of the industry in which you compete? Business Drivers What factors are currently determining success in this industry - what are the trends? Reflect on all of the changes currently occurring and identify the key opportunities and threats Purpose or Mission What is the overall purpose for the business or team? Note: this should include a brief statement of what products and services will be provided to which customers and markets. It might also contain an aspirational statement 'To be the number one provider of ....' Unique Capabilities What is the unique capability or contribution? This will be the Unique Selling Proposition (USP) or source of competitive advantage for an organisation that will ensure that new customers will be attracted, and existing customers will remain loyal over the next three years? Note: reflect on internal strengths that a) give customers something they want, b) are provided at a competitive level of performance, and c) can be sustained over a three year period 3 Year Vision What is the level of ambition in terms of development and growth for the next three years? Explain how different the business or team will be in three years? Funding Mechanism What is the preferred process for funding the growth of the business or team over the next three years? Note: think about the cash-flow required to fund both ongoing operations and strategic growth. Cash flow is particularly important for some organisations or teams, and a separate cash flow analysis should be completed using a spreadsheet and attached as a document to this strategy. Alternatively, you can use the Scorecard tool to track cash-flow changes on a month-by-month basis Growth or Exit Strategy What is the preferred way for the business or team to grow? This could be through organic development, strategic partnerships or possible mergers and acquisitions. Alternatively, if withdrawal is being considered, how will this be achieved? For SME, what is the preferred way in which the current owners and shareholders will recoup their investment in the business?
Form 2: Product and Services Product Segments What is the natural grouping or segmentation for current and future products & services? Top 3 Current Products What are the top 3 products or services in each product segment?
© SofTools, 2009. For more information on related products and services, visit www.Fast-Track-Me.com or contact us at: [email protected]
Top 3 New Product Ideas What are the top 3 new product or service ideas for development or sourcing over the next three years? Competitors & Substitutes What are the main competitive or substitute products and services in each segment? Status RAG Finally, what is the current status in each segment? Note: think about how competitive each product segment is and whether significant changes are required
Red = major concerns and immediate corrective action required
Amber = some concerns and future action is required
Green = performance is acceptable and no changes are required
Note: Red status items should result in the creation of improvement actions (which form part of the change programme) and Amber status items that reflect risks and need to be monitored closely.
Form 3: Customers and Markets Market Segments What is the natural grouping or segmentation for current and future customers & markets? Top 3 Current Customers Who are the top 3 customers or markets in each market segment? Top 3 Target Customers Who are the top 3 target customers and markets for conversion over the next three years? Major Competition Who are the main competitors in each segment? Action What actions should be planned in order to address concerns in each segment?
Form 4: Product-Market Priorities For each product-market what is the relative emphasis (H = High, M = Medium, L = Low and 0 = None) and status?
Red = major concerns and immediate corrective action is required Amber = some concerns and needs to be monitored closely Green = on-track and no change required Blue = needs research Black = not applicable
Form 5: Financials Forecast Financial forecasts What is the forecast income or budget trend (growth or decline) over the next three years? Assumptions What are the critical assumptions that need to hold true in order for these forecasts to be achieved? Note: each assumption represents an area of risk and will need to be managed
© SofTools, 2009. For more information on related products and services, visit www.Fast-Track-Me.com or contact us at: [email protected]
Form 6: Core Process Model Core Processes What are the core processes for your business or team? Note: this might reflect the TVT Core Process Model Deliverable or Key Performance Indicator What is the main deliverable or Key Performance Indicator (KPI) for each core process? Reflect on how you will know if each is working Status What is the current status of each core process?
Red = major concerns and immediate corrective action is required Amber = Some issues and needs to be monitored closely - represents areas of future risk Green = operating effectively and efficiently Black = not relevant to your business
Graphic: Core Process Model Core Process Model What is a graphical model for you organisations that shows: 1) the core processes, and 2) how they link together? Note: keep it as simple as possible in order to make it understandable by all members of the team. It may be best simply to use the TVT core process model, and colour each element according to whether it is Red-Amber-Green status
Form 7: The Top Team Cornerstone What are the key roles within the business, and which member of the management team is responsible for delivery in each area? Note: the term 'cornerstone' was introduced in the book 'The Beermat Entrepreneur' Prime Responsibilities What are the prime responsibilities of each cornerstone? Status What is the current status of each position?
Red = major concerns and immediate corrective action is required Amber = some concerns and needs to be monitored closely Green = right person with the right profile in the right role
Action What specific actions should be taken to address each Red status item?
© SofTools, 2009. For more information on related products and services, visit www.Fast-Track-Me.com or contact us at: [email protected]
Strategic Framework Use the following blank template to address an issue or opportunity within your business or team
Form 1: Strategic Positioning Statement of Strategic Intent
Industry Overview
Business Drivers
Purpose or Mission
Unique Capability
3 Year Vision
Funding Mechanism
Growth or Exit Strategy
© SofTools, 2009. For more information on related products and services, visit www.Fast-Track-Me.com or contact us at: [email protected]
Form 2: Product and Services Product Segments
Top 3 Current Products
Top 3 New Product Ideas
Competitors & Substitutes
Top 3 Target Customers
Major Competitors
P1 P2 P3 P4
Form 3: Customers and Markets Market Segments
Top 3 Current Customers
M1 M2 M3 M4
Form 4: Product-Market Priorities Product-Market Matrix
M1
M2
M3
P1 P2 P3 P4
Form 5: Financials Forecast Current
Year 1
Year 2
Year 3
Financial Assumptions
P1 P2 P3 P4
© SofTools, 2009. For more information on related products and services, visit www.Fast-Track-Me.com or contact us at: [email protected]
M4
Form 6: Core Process Model Core Process Deliverable or Key Performance Indicator
Status Change Programme
People & Leadership Industry Drivers Strategy & Goals Innovation & Change NPD & Sourcing Brands & Marketing Sales Channels Operations & Process Finance & Cashflow Business Governance
© SofTools, 2009. For more information on related products and services, visit www.Fast-Track-Me.com or contact us at: [email protected]
Graphic: Core Process Model Core Process Model
Form 7: The Top Team Cornerstone
Person
Prime Responsibilities
Status Change Programme
© SofTools, 2009. For more information on related products and services, visit www.Fast-Track-Me.com or contact us at: [email protected]
What is a Strategic Framework?
When should you use it?
The Strategy Framework template provides a structured method for planning a business or team strategy. The framework will determine the products and services that will be offered, the markets and customers that will be served and the distinctive capabilities of the business or team.
Ensure that the Strategic Framework forms an integral part of the Annual Business Planning (ABP) process. Before you consider forecasts and finances, take time to agree on product and market boundaries. Once set, put formal quarterly review meetings in everyone’s diaries.
Why is it relevant?
How should you implement it?
A strategy provides the overall vision, direction and priorities for a team. It will contain the basis on which the business will compete and survive in a competitive market place. Without it, the business or team is often reactive and not aligned to key success factors.
Before setting the framework, ask functional heads around the business to collect and assess Market and Customer Insights (MCI) – “what is happening in our business environment and how does it impact us?” Then plan a workshop where a cross-functional team will review the MCI and make decisions about products and markets as laid out in the Strategic Framework template. Then, translate the framework into tangible changes to day-to-day operations – this will form your overall change programme. Finally, reset the monthly Key Performance Indicators (KPIs) that you use to monitor performance so that you can check if your strategy is correct and if it is happening.
Who needs to be involved? Make sure that the strategy is owned by the most senior manager – for a business this will be the Chief Executive. However, involve a cross-functional team in the development process in order to provide expert inputs and to gain commitment to implementation of necessary changes.
© SofTools, 2009. For more information on related products and services, visit www.Fast-Track-Me.com or contact us at: [email protected]
Strategic Framework This is a case example based on a fictitious company called TVT – all the data is displayed for demonstration purposes only. For a detailed explanation of what each cell is used for please refer to the Virtual Consultant on the following pages.
Form 1: Strategic Positioning Statement of Strategic Intent Frozen food market place is a stable international market dominated by major retail outlets and food service organisations. The essential nature of the product makes it a stable and mature market place. It Industry Overview can be segmented into bulk purchase (such as 1 and 2 litre tubs) and ‘impulse’ purchase (such as Ice Lollies) – this tends to be much more seasonal and susceptible to the weather
Business Drivers
Major trends currently include supplier consolidation (reducing our purchasing power and increasing dependency on sole supplies), escalating food ingredient costs (making it more difficult to maintain margins), and relentless EU legislation (further increasing costs). Consumers are becoming more health aware which is raising increasing questions around the need to legislate, and there is a continuing preference for luxury / higher quality brands
Our mission is to be a leading provider of specialist frozen dessert produce to UK retailers before the end Purpose or Mission of 2010. This will be achieved through a combination of organic growth and acquisition, and through a focus on aligning our business strategy with serving the needs of the major retailers We differentiate ourselves from our competition through the levels of service delivered through our supply chain excellence. Whilst we will not compete on price, we will drive our costs down relentlessly Unique Capability so that we will not have a price disadvantage versus our major competitors – this will be increasingly important as the market becomes more global
3 Year Vision
Our three year vision is to build the retail business to a value of £16,000,000 with a single customer representing less than 25% of turnover. We will explore additional product-markets, but will always seek to maintain an limit to the size of the overall portfolio (operating a one-in one-out policy for all future new product introductions
Funding Mechanism
The business will be funded through operational cash-flow for the next two years, but external investment capital will be considered to fund selective investments in acquisitions as we move into specialist UK markets
Growth or Exit Strategy
We will grow the business through selective acquisition of complimentary small businesses, and will float on the UK market before the end of 2015
© SofTools, 2009. For more information on related products and services, visit www.Fast-Track-Me.com or contact us at: [email protected]
Form 2: Product and Services Product Segments
Top 3 Current Products
Top 3 New Product Ideas
Competitors & Substitutes
P1
Frozen
Surprise-lite, Arctic range
Lo-Cal
Walls
P2
Chilled
Trio complete, Trio multipack, TVT
2-Fresh, F2006 range
C217
P3
Own label
Arctic flavours, Moller, Standard
OL - Alpha, Super sweet range
RESEARCH
P4
Ready-to-bake
NA
NPD required
Macphie direct, ABC direct
Form 3: Customers and Markets Market Segments
Top 3 Current Customers
Top 3 Target Customers
Major Competitors
M1
Major retailers in the UK Tesco, Waitrose, Asda
Morrisons
Walls
M2
Second tier retailers in the UK
Iceland, 24-7, Co-op
Mango, Esso stores. Independents
Indo direct, System-X
M3
Food Service
Starbucks, Brakes
Sainsbury in-store cafe
Indo direct, System-X
M4
Export markets
Bechtel retail
RESEARCH
RESEARCH
Form 4: Product-Market Priorities Product-Market Matrix
M1
M2
M3
M4
Major UK retailers
Second tier retailers
Food Service
Export markets
P1
Frozen
H-Green
H-Green
H-Red
H-Red
P2
Chilled
M-Red
H-Green
M-Green
Research-Blue
P3
Own label
L-Amber
M-Green
M-Amber
Research-Blue
P4
Ready-to-bake
L-Amber
NoGo-Black
NoGo-Black
NoGo-Black
Form 5: Financials Forecast Current
Year 1
Year 2
Year 3
Financial Assumptions
P1
£5,000,000
£7,000,000
£7,500,000
The frozen market place will continue to grow as more £8,000,000 luxury items are developed for this category, and health products such as Low Fat become generally accepted
P2
£2,000,000
£2,500,000
£3,300,000
Whilst the market is stable, there are still opportunities to £4,000,000 grow sales through wholesalers. It will be possible to achieve this through existing relationships
P3
£2,500,000
£2,500,000
£2,500,000
£2,500,000
Food service will continue to be highly competitive and cost reductions across the product range will be required
P4
£0
£500,000
£1,000,000
£1,500,000
Ready-to-bake is exciting but still unproven market space and needs more research before committing resources
£9,500,000 £12,500,000
£14,300,000
£16,000,000
© SofTools, 2009. For more information on related products and services, visit www.Fast-Track-Me.com or contact us at: [email protected]
Form 6: Core Process Model Core Process Deliverable or Key Performance Indicator
Status Change Programme
People & Leadership
Clarity of direction and executive decision making at both strategic and operational levels - including the management and motivation of all staff. DELIVERABLE: Motivate team with less than 10% turn-over
Green
Industry Drivers
Effective external scanning process to proactively identify and analyse opportunities and threats in the market. DELIVERABLE: 100% of major trends are reported in the internal quarterly MCI reports
Need to establish a formal quarterly external analysis and Amber dissemination programme across all functions
Appropriate strategic direction in terms of current and future product-markets and defendable source of competitive advantage. DELIVERABLE: At least one clear USP reflected through all functional teams
Green
Strategy & Goals
Creating of a culture of creativity, innovation and constructive Innovation & challenge where it is accepted that doing what we did yesterday Change will not succeed tomorrow. DELIVERABLE: Active Ideas Pipeline 'beyond NPD'
Red
Development of a portfolio of products and services in line with musts and wants of target customer groups as defined in the strategy. DELIVERABLE: Gaps in Product Portfolio addressed in line with roadmap
Green
Brands & Marketing
Positioning of the TVT corporate and product brands as the preferred supplier in our chosen markets. DELIVERABLE: Over 75% unprompted awareness within target customer group in annual survey
Green
Sales Channels
Development of profitable sales in line with strategic targets, and achieving the right level of balance between direct and indirect channels. DELIVERABLE: Quarterly sales in line with revenue and profit targets
Green
NPD & Sourcing
Effective and efficient operational processes delivering against Operations & operational KPIs, what is required, when required. DELIVERABLE: Process Exceeding operational KPIs in all areas of the supply chain Finance & Cashflow
Availability of both free cash-flow from operations and external funding for investments as and when required. DELIVERABLE: Financial results in line with Annual Business Plan
Compliance with all legal and ethical requirements, and the Business effective monitoring and control of day-to-day business activities. Governance DELIVERABLE: Occurrence of monthly meetings and maintenance of risk register
Need to implement an ideas and innovation process focusing on radical process change and NPD process improvement
Need to instigate a programme of complexity cost reduction Amber focusing on product and customer simplification Green
Red
Need to identify industry best practices for all core processes and instigate a regular audit / compliance process
© SofTools, 2009. For more information on related products and services, visit www.Fast-Track-Me.com or contact us at: [email protected]
Graphic: Core Process Model Core Process Model
Form 7: The Top Team Cornerstone
Person
Prime Responsibilities
Status Change Programme
Chief Executive
John Mactear
Leadership, motivation and direction. Networking within the industry and being seen as a 'thought leader'
Need to build industry Amber network and establish influencing process
Operations
Efficient and effective production and supply chain Joanna Derry including development of food technologies to support the planned NPD programme
Sales & Marketing
Maid Bhatti
Securing of repeatable profitable sales growth, researching the export market space, and developing the TVT brand
Need to develop partner Amber and channel management programme / capability
Finance
Jaz Qadeer
Cash-flow management and investment for growth
Green
NonExecutives
Patrick Harper
External challenge, issues of Governance, and access to networks for sales and potential funding
Green
Green
© SofTools, 2009. For more information on related products and services, visit www.Fast-Track-Me.com or contact us at: [email protected]
Virtual ConsultantTM The Virtual ConsultantTM provides a step-by-step guide to completing this business template. It is worded as a series of questions designed to make you stop and think about this topic in a challenging and creative way – as if a business coach or consultant was sitting next to you.
Form 1: Strategic Positioning Industry Overview What is the name, size, growth and description of the industry in which you compete? Business Drivers What factors are currently determining success in this industry - what are the trends? Reflect on all of the changes currently occurring and identify the key opportunities and threats Purpose or Mission What is the overall purpose for the business or team? Note: this should include a brief statement of what products and services will be provided to which customers and markets. It might also contain an aspirational statement 'To be the number one provider of ....' Unique Capabilities What is the unique capability or contribution? This will be the Unique Selling Proposition (USP) or source of competitive advantage for an organisation that will ensure that new customers will be attracted, and existing customers will remain loyal over the next three years? Note: reflect on internal strengths that a) give customers something they want, b) are provided at a competitive level of performance, and c) can be sustained over a three year period 3 Year Vision What is the level of ambition in terms of development and growth for the next three years? Explain how different the business or team will be in three years? Funding Mechanism What is the preferred process for funding the growth of the business or team over the next three years? Note: think about the cash-flow required to fund both ongoing operations and strategic growth. Cash flow is particularly important for some organisations or teams, and a separate cash flow analysis should be completed using a spreadsheet and attached as a document to this strategy. Alternatively, you can use the Scorecard tool to track cash-flow changes on a month-by-month basis Growth or Exit Strategy What is the preferred way for the business or team to grow? This could be through organic development, strategic partnerships or possible mergers and acquisitions. Alternatively, if withdrawal is being considered, how will this be achieved? For SME, what is the preferred way in which the current owners and shareholders will recoup their investment in the business?
Form 2: Product and Services Product Segments What is the natural grouping or segmentation for current and future products & services? Top 3 Current Products What are the top 3 products or services in each product segment?
© SofTools, 2009. For more information on related products and services, visit www.Fast-Track-Me.com or contact us at: [email protected]
Top 3 New Product Ideas What are the top 3 new product or service ideas for development or sourcing over the next three years? Competitors & Substitutes What are the main competitive or substitute products and services in each segment? Status RAG Finally, what is the current status in each segment? Note: think about how competitive each product segment is and whether significant changes are required
Red = major concerns and immediate corrective action required
Amber = some concerns and future action is required
Green = performance is acceptable and no changes are required
Note: Red status items should result in the creation of improvement actions (which form part of the change programme) and Amber status items that reflect risks and need to be monitored closely.
Form 3: Customers and Markets Market Segments What is the natural grouping or segmentation for current and future customers & markets? Top 3 Current Customers Who are the top 3 customers or markets in each market segment? Top 3 Target Customers Who are the top 3 target customers and markets for conversion over the next three years? Major Competition Who are the main competitors in each segment? Action What actions should be planned in order to address concerns in each segment?
Form 4: Product-Market Priorities For each product-market what is the relative emphasis (H = High, M = Medium, L = Low and 0 = None) and status?
Red = major concerns and immediate corrective action is required Amber = some concerns and needs to be monitored closely Green = on-track and no change required Blue = needs research Black = not applicable
Form 5: Financials Forecast Financial forecasts What is the forecast income or budget trend (growth or decline) over the next three years? Assumptions What are the critical assumptions that need to hold true in order for these forecasts to be achieved? Note: each assumption represents an area of risk and will need to be managed
© SofTools, 2009. For more information on related products and services, visit www.Fast-Track-Me.com or contact us at: [email protected]
Form 6: Core Process Model Core Processes What are the core processes for your business or team? Note: this might reflect the TVT Core Process Model Deliverable or Key Performance Indicator What is the main deliverable or Key Performance Indicator (KPI) for each core process? Reflect on how you will know if each is working Status What is the current status of each core process?
Red = major concerns and immediate corrective action is required Amber = Some issues and needs to be monitored closely - represents areas of future risk Green = operating effectively and efficiently Black = not relevant to your business
Graphic: Core Process Model Core Process Model What is a graphical model for you organisations that shows: 1) the core processes, and 2) how they link together? Note: keep it as simple as possible in order to make it understandable by all members of the team. It may be best simply to use the TVT core process model, and colour each element according to whether it is Red-Amber-Green status
Form 7: The Top Team Cornerstone What are the key roles within the business, and which member of the management team is responsible for delivery in each area? Note: the term 'cornerstone' was introduced in the book 'The Beermat Entrepreneur' Prime Responsibilities What are the prime responsibilities of each cornerstone? Status What is the current status of each position?
Red = major concerns and immediate corrective action is required Amber = some concerns and needs to be monitored closely Green = right person with the right profile in the right role
Action What specific actions should be taken to address each Red status item?
© SofTools, 2009. For more information on related products and services, visit www.Fast-Track-Me.com or contact us at: [email protected]
Strategic Framework Use the following blank template to address an issue or opportunity within your business or team
Form 1: Strategic Positioning Statement of Strategic Intent
Industry Overview
Business Drivers
Purpose or Mission
Unique Capability
3 Year Vision
Funding Mechanism
Growth or Exit Strategy
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Form 2: Product and Services Product Segments
Top 3 Current Products
Top 3 New Product Ideas
Competitors & Substitutes
Top 3 Target Customers
Major Competitors
P1 P2 P3 P4
Form 3: Customers and Markets Market Segments
Top 3 Current Customers
M1 M2 M3 M4
Form 4: Product-Market Priorities Product-Market Matrix
M1
M2
M3
P1 P2 P3 P4
Form 5: Financials Forecast Current
Year 1
Year 2
Year 3
Financial Assumptions
P1 P2 P3 P4
© SofTools, 2009. For more information on related products and services, visit www.Fast-Track-Me.com or contact us at: [email protected]
M4
Form 6: Core Process Model Core Process Deliverable or Key Performance Indicator
Status Change Programme
People & Leadership Industry Drivers Strategy & Goals Innovation & Change NPD & Sourcing Brands & Marketing Sales Channels Operations & Process Finance & Cashflow Business Governance
© SofTools, 2009. For more information on related products and services, visit www.Fast-Track-Me.com or contact us at: [email protected]
Graphic: Core Process Model Core Process Model
Form 7: The Top Team Cornerstone
Person
Prime Responsibilities
Status Change Programme
© SofTools, 2009. For more information on related products and services, visit www.Fast-Track-Me.com or contact us at: [email protected]
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