The third component of the strategic playbook is plans. These flow directly from the investment case and focus choices. Let's start by defining the terms:
Strategic planning is about generating and selecting options to close gaps between objectives and current realities. It is about the creation and allocation of resources to the right place, in the right way, at the right time, over time to overcome barriers and deliver what matters. Strategic planning is also deciding what you will and will not do.
Michael Porter suggests that almost any value chain includes design and invention, production, delivery, and customer service and experience in addition to marketing and selling.1 Your single, overarching strategy should identify the right way to build and leverage differentially valuable advantages versus competitors at one of the first four while also marketing and selling—which every organization must do one way or another and is discussed in the commercial playbook (Figure 3.1).
Strategic priorities focus people on the most important areas:
Example: | Apple | Coca-Cola | Walmart | Four Seasons |
Manner: | Proactive | Fast-follow | Coordinated | Responsive |
Culture: | Independent | Stable | Interdependent | Flexible |
The starting point for developing your 365-day plan is your investment case (Chapter 1). Essentially, this is your chance to turn that theoretical construct into real actions to grow the topline and make operational improvements behind investments in enablers.
Do understand you may not be able to get everything done in a year. The bigger and more complex the merger, the longer it's going to take to complete. So just as the things you do in your first 100 days set up what you're going to get done in your first year, some of the things you do in your year 1 set up year 2 deliverables.
Gain new customers. Get current customers to buy or pay more.
Classic synergistic revenue enhancers include:
Establish go-to-market and end customer market pursuit strategies including your marketing, communications, and customer interface; sales model and organization; customer profitability and cash flow cube; end-market analysis and go-to-market strategy; and acquisitions or mergers with other companies, brands, technologies, systems, and the like.
Marketing, Communications, and Customer Interface
Sales Model and Organization
Customer Profitability and Cash Flow Cube
End-Market Analysis and Go-to-Market Strategy
Acquisitions or Mergers with other companies, brands, technologies, systems, and the like
Financial Planning and Analysis (FP&A) and Accounting
Treasury
Tax
Insurance
Compliance
Human Resources (HR) Management Systems
The most up-to-date, full, editable versions of all tools are downloadable at primegenesis.com/tools.