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Strategic Planning in the Private SectorAugust 19, 2003AgendaWhat successful companies doExamples from the private sectorApplications to the MHSSuccess is rare and few entities accomplish their goalsKeys to successA well developed, differentiated strategyA rigorous, fact based planning process to connect strategy with tacticsA well aligned, effective organization to execute “Strategy” defined: Bain perspectiveA dynamic plan to differentiate a business from its competitors profitably and sustainablyA proprietary set of actions that create and capture value by serving customers in a superior way relative to competitorsInforms virtually all decisionsPortfolio strategy: Where to play?Business unit strategy: How to win?Strategy is about making choicesWhere we will and won’t competeWhere we will and won’t investMarketsBusinessesCustomersGeographiesActivitiesCompanies who succeed are focused and are the best at what they doPercent of companies100%NoneMulti core80Customer focusChannel focusRegional focus6040One business200Keys to successA well developed, differentiated strategyA rigorous, fact based planning process to connect strategy with tacticsA well aligned, effective organization to execute 75% of U.S. organizations believe they need to upgrade their strategic planning process“Our strategic planning process is effective”“Our strategic planning process is fully developed”Best demonstrated strategic planning process MissionPortfolio StrategyBusiness Unit StrategyTactical PlanningExecution and TrackingDefine the missionDecide what businesses and markets to compete inDetermine success metrics by businessDevelop differentiated offeringIdentify changing dynamicsExternalInternalIdentify key gapsSet targets and timelinesDesign key initiatives Develop implemen-tation plansRealign organizationTrack performance against plansModify plans as necessaryRarelyEvery 5 yearsEvery 2-3 yearsAnnuallyOn-goingBusiness unit strategy must be informed by the facts around the “3Cs”Fact
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