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Strategy: Vision, Mission, Values and Strategic Plans

By William L. Gunlicks

Drive thy business or it will drive thee.

- Benjamin Franklin

The policy of being too cautious is the greatest risk of all.

- Jauaharical Nehru, Former Prime Minister of India

However beautiful the strategy, you should

occasionally look back at the results.
- Sir Winston Churchill

Introduction and Summary

The purpose of this paper is to highlight the importance of developing, planning, implementing and monitoring a strategic business plan to achieve success for an organization and its stakeholders in the accomplishment of its vision and mission. An effective strategic plan needs to outline thoughtful and realistic objectives, strategies and goals that are consistent with the core values of the organization. ~ Where are we now? ~ What do we want to be? ~ How do we get there? These questions need to be addressed in a companys strategic business plan. The plan needs to be initiated by leadership from the CEO, with collaboration, participation and active involvement of management and staff, and reviewed and approved by its Board directors. To be successful, it is imperative that a process is established to regularly monitor the progress of the accomplishment of the Plans vision, mission, strategy, objectives and goals.
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Copyright 2011, William L. Gunlicks and Advocacy Consulting LLC, All Rights Reserved.

The Strategic Business Plan

The basic steps and eight components of a strategic business plan are: SWOT - analyze the companys strengths, weaknesses, opportunities and threats (a SWOT analysis see below), with focus on internal and external factors. Write Company Vision, Mission and Core Values statements. Describe the companys intermediate and long-term Business Objectives. Outline the Strategies to achieve your mission and objectives. Outline the specific and measurable Goals to accomplish your objectives and strategies. Outline the key Strategic Action Programs to implement stated strategies and goals.

Each of the eight strategic business plan steps and components outlined above are described below, with examples.

SWOT Analysis
The first step in the preparation and development of a strategic plan is for the CEO and executive management to initiate a comprehensive analysis of the companys strengths, weaknesses, opportunities and threats, referred to as a SWOT analysis. Strengths and weaknesses are generally considered internal factors and can relate to: Strategy Executive management Operating execution Financial resources Cash-flow management Systems and procedures Marketing and sales Supply chain Customer retention
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Business model Leadership and depth Internal resources Financial performance Working capital capacity Internal communication Distribution Inventory management Risk management

Opportunities and threats are generally considered external factors and can relate to: Economic conditions - local, national and global Changing market place demographics and social factors Changing industry and market sector structure Competition Technological advancements Environmental issues Regulatory changes Skilled labor availability Global political tension, unrest and uncertainty

SWOT Analysis Example: The following is an example of a SWOT analysis for a factitious company - Frontiers LLC, an emerging and promising manufacturer and distributor of children toys: Strengths Design creativity and acceptance Repeat sales from existing products Employee excitement and loyalty Product quality and safety Customer service satisfaction Parent and grandparent acceptance Stakeholder support Opportunities Quick response to competition Baby gifts are enduring Baby toy pricing is generally inelastic Pro-active on safety issues Weaknesses Limited new products Narrow distribution channels Inventory management Product manufacturing issues Branding identity Inconsistent cash-flow Capital structure Threats Large market share competition Decline in consumer spending Mass production and price war Safety and recall issues

The value of collaborative involvement of management and employees in the SWOT analysis process is crucial to the final success of achieving the mission and objectives of the strategic plan.

Vision, Mission and Core Values Statements

Based upon the results and conclusions of the SWOT analysis, the next step is for management to review and critically challenge the companys present Vision, Mission and Core Values Statements. If they have been established, modify them if needed. If not established, they need to be developed. Briefly:
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Vision Statement: Describes, in future tense, the medium and longer term desired outcome for the business in other words, a picture of the business and organization in the longer term future. The statement can be short and to the point, or a full paragraph. It may portray its future services and products, its clients and customers, its market segments, and its location and desired corporate culture. It should be realistic, and may have a tone of enthusiasm. Examples: Vision Statement Caterpillar: Be the global leader in customer service. Coca-Cola: To achieve sustainable growth, we have established a vision with clear goals. Profit: maximizing return to share owners while being mindful of our overall responsibilities. People: Being a great place to work where people are inspired to be the best they can be. Portfolio: bringing to the world a portfolio of beverage brands that anticipate and satisfy peoples desires and needs. Partners: Nurturing a winning network of partners and building mutual loyalty. Planet: Being a responsible global citizen that makes a difference. Estee Lauder: Bringing the best to everyone we touch. By the best, we mean the best products, the best people and the best ideas. These three pillars have been the hallmarks or our Company since it was founded by Mrs. Estee Lauder in 1946. They remain the foundation upon which we continue to build our success today. Lockheed Martin: Powered by innovation, guided by integrity, we help our customers achieve their most challenging goals. The Walt Disney Company: To make people happy. Source: The Vision statements above were obtained through www.buzzle.com, www.samples-help.org, and Company websites Mission Statement: Written in the present tense, defines the activities and purpose of the organization. It may include company ambitions, philosophies, reasons for existence, desired level of performance, and what the company does to achieve its vision. Examples: Mission Statement The Chubb Corporation (Property Insurance): We are dedicated to providing excellent underwriting and loss control advice up front, and to

ensuring superior customer service through the life of the policy. Our knowledgeable loss prevention experts can help commercial customers reduce losses in the workplace. Our personal appraisers are invaluable in determining accurate replacement value, which is more likely to provide you with the right amount of coverage for your valuable property. FedEx Corporation: FedEx will produce superior financial returns for shareholders by providing high value-added supply chain, transportation, business and related information services through focused, operating companies. Customer requirements will be met in the highest quality manner appropriate to each market segment served. FedEx will strive to develop mutually rewarding relationships with its employees, partners and suppliers. Safety will be the first consideration in all operations. Corporate activities will be conducted to the highest ethical and professional standards. Global Gillette: We will provide branded products and services of superior quality and value that improve the lives of the worlds consumers. As a result, consumers will reward us with leadership sales, profit, and value creation, allowing our people, our shareholders, and the communities in which we live and work to prosper. Microsoft: At Microsoft we work to help people and businesses throughout the world realize their full potential. This is our mission. Everything we do reflects this mission and the values that make it possible. Nike: To bring inspiration and innovation to every athlete in the world. The Walt Disney Company: The mission of the Walt Disney Company is to be one of the worlds leading producers and providers of entertainment and information. Using our portfolio of brands to differentiate our content, services and consumer products, we seek to develop the most creative, innovative and profitable entertainment experiences and related products in the world. Source: The Mission statements above were obtained through www.missionstatements.com and Company websites Core Values Statement: Expresses the beliefs, principles and values that an organization will embrace in the management and operation of its business. The expressed values are to transcend to the organizations relationships and business practices with all of its stakeholders, to include employees and their families, customers and clients, shareholders, suppliers and vendors, third party professional relationships, and the local and extended community in which they serve and operate. The value statements weave the fabric of the organizations culture.
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Examples: Core Values Statement Advocacy Consulting: Our core values are to conduct our consulting practice in the best interests of our clients and other stakeholders, with integrity, trust, respect and ethical principles. Amazon: We make decisions as a company, and as individuals, based on our core values. Customer Obsession: We start with the customer and work backwards. Innovation: If you dont listen to your customers you will fail. But if you only listen to your customers you will also fail. Bias for Action: We live in a time of unheralded revolution and insurmountable opportunity - provided we make every minute count. Ownership: ownership matters when youre building a great company. Owners think long-term, plead passionately for their projects and ideas, and are empowered to respectfully challenge decisions. High Hiring Bar: When making a hiring decision we ask ourselves: Will I admire his person? Will I learn from this person? Is this person a superstar? Frugality: We spend money on things that really matter and believe that frugality breeds resourcefulness, self-sufficiency, and invention!

Lockheed Martin: Lockheed Martins Value Statements: Do Whats Right. We are committed to the highest of ethical conduct in all that we do. We believe that honesty and integrity engender trust, which is the cornerstone of our business. We abide by the laws of the United States and other countries in which we do business, we strive to be good citizens and we take responsibility for our actions. Respect Others. We recognize that our success as an enterprise depends on the talent, skills and expertise of our people and our ability to function as a tightly integrated team. We appreciate our diversity and believe that respect for our colleagues, customers, partners, and all those with whom we interact is an essential element of all positive and productive business. Perform With Excellence. We understand the importance of our missions and the trust our customers place in us. With this in mind, we strive to excel in every aspect of our business and approach every challenge with a determination to succeed. Microsoft: As a company, and as individuals, we value integrity, honesty, openness, personal excellence, constructive self-criticism, continual
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self-improvement, and pride ourselves on seeing them through. We hold ourselves accountable to our customers, shareholders, partners, and employees by honoring our commitments, providing results, and striving for the highest quality. Whole Foods Market: We know weve always been a little out of the ordinary. Those 19 people who started our first store were quite an idealistic bunch! Early on, we adopted a set of core values to guide our purpose: Selling the highest quality natural and organic products available Satisfying and delighting our customers Supporting team member happiness and excellence Creating wealth through profits & growth Caring about our communities & our environment Creating ongoing win-win partnerships with our suppliers Promoting the health of our stakeholders through healthy eating education

We now number over 50,000 team members and are glad to report that our idealism and commitment to our core values are as strong as ever. (Sit in on a meeting and youll hear team members asking questions like How does that action support our Core Values? Its a tough crowd!) Yes, we are a publicly held company and have to make a profit to survive in the marketplace. But weve proven that a company can do good and do well if the doing comes from the heart. Luckily, our success helps us bring about change in the marketplace, which we hope will lead to good things for you and us and the planet. Source: The Core Values statements above were obtained through Company websites

Business Objectives
The longer-term business objectives for the company need to be written and explained to all employees and other stakeholders. These objectives are broadly based and describe desired results for the next several years. Effective objectives relate to the expectations of all the companys stakeholders. The objectives can embrace and promote the companys strengths and opportunities, and address its weaknesses and threats.

Specific, measurable objectives would be outlined as business goals, as later described in this paper. Examples of business objectives are:
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Generate sufficient cash-flow from business operations to meet all current financial obligations, provide capital investment for further growth in the business, and provide an attractive dividend return to shareholders. Enhance our focus on listening to customers and knowing their needs. Increase sales and repeat orders from existing customers. Expand our technological capabilities. Increase our competitive advantage capabilities, and gain market share. Build brand recognition and identity. Further develop our employee training and continuing education programs, to include tuition reimbursement. Before our partial public stock offering, increase the number of independent directors on our Board so they represent the majority of directors.

Strategies
Strategies must be developed and outlined for the business to achieve its mission and objectives. Strategies describe the plans and methods to accomplish the business mission and objectives. Examples of business strategies follow: Fund future growth and capital investment from internal cash-flow. To gain market share, strengthen the execution and effectiveness of our marketing programs through multiple venues to directly target and

reach our specific core market, customers and prospects.

As a source for new product ideas, enhance our focus on listening to customers and knowing their needs. Increase our frequency of direct contact with existing customers to expand sales. Expand our partnerships and alliances with specialized technology firms in order to increase our administrative and operating productivity.

Develop, with our suppliers, a more efficient just in time inventory management program and system in order to resolve our inventory management issues. Establish an advisory council of community leaders and constituents to provide constructive feedback, in order to validate and enhance our desire to be proactive and responsible corporate citizens to our stakeholders and the communities in which we operate and serve.

Goals
In order to accomplish the objectives and strategies identified in the companys strategic plan, successful companies must establish specific and measurable short-term goals (ranging up to three years) with timetables for completion and assignment for accountability, and then communicate them throughout the organization. Goals should be realistic, achievable, measurable and time bound, and result from the collaborative preparation, effort and agreement of management, staff and employees. Examples of business goals follow: Frequently communicate to all stakeholders, at least annually, the strategic business plan with the companys vision, mission and core values statements, business objectives, strategies and goals. Increase the representation of our independent board members to majority status by June 30, 201x. Increase repeat customer sales by 10% in fiscal year 201x and 15% in fiscal year 201x. Strengthen our electronic communication, as well as website and social marketing capabilities before year-end 201x. Complete a revised just in time inventory management program by September 30, 201x. Increase customer on time delivery to at least 97% by year-end 201x. Finalize an employee training and continuing education program by March 30, 201x. Implement an Environmental Responsibility program before year-end 201x.
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Complete and obtain Board approval of a comprehensive management succession plan before year-end 201x.

Strategic Action Programs

As a follow up to the companys stated strategies and goals, outline the priority Strategic Action Programs to be implemented. Each program should indicate who is responsible and accountable for implementation and indicate the action to be taken. Examples of action programs are: CEO and executive management prepare a written, compressive Business Plan for fiscal year 201x, obtain board approval, and organize its implementation. The Chairman of the Board, CEO and directors, within the next six months, develop a management succession plan, identify several internal candidates, position the candidates in key management positions for them to gain further executive and leadership experience, and monitor and critique their performance. During the next year, the Board of directors increase the representation of independent board members to a majority of the directors. The managing director of marketing, within the next nine months, implement the strategies and goals outlined in the strategic and business plans, to increase market share 5% by year end 201x. The chief financial officer, with staff support, implement the companys approved comprehensive financial plan during 201x. During this fiscal year, the managing director of information technology, with support from all executive management, implement the technology productivity improvement plan. Within six months, the CEO and directors establish an advisory council of community leaders and constituents to provide feedback, suggestions and ideas to insure that our company and its employees are responsible corporate and private citizens.

Conclusion
An effective strategic business plan must outline thoughtful and realistic objectives, strategies and goals that are consistent with its core values
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in order to accomplish its vision and mission. Experience confirms that the key to success in the development and implementation of a strategic plan is to involve the companys stakeholders in the assessment, analysis, planning and implementation of the plan. Having management, staff, employees and the Board involved and participating in the process provides valuable contribution and feedback. In addition, it promotes their interest and possible enthusiasm to ensure the success and achievement of the companys vision, mission, objectives and goals. For you to implement and achieve the wisdom, passion and success of your vision, mission, objectives and goals, consistent with your core values, it is crucial that the culture of your organization encourages and promotes timely and constructive feedback to management from all stakeholders. Establish a process to monitor the progress toward the achievement of the Plan, and recognize that strategic planning and its implementation is a regular and continuing process of fine-tuning and modification. ~~~

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