An effective Strategic Pyramid ties together fact based strategic objectives with tactics and specific programs, linked to business plans, budgets, and organizational goals. Making strategy part of what is measured, ensures that it is part of what happens. Integrated Ownership Planning incorporates 5 Planning Levels that should be addressed by every business: Business Planning, Strategic Planning, Personal Strategic Planning, Ownership Planning, and Exit Planning. Ignoring any of these 5 levels means the others are based on uninformed goals and assumptions and some elements are simply reactions to circumstances that could be better controlled.
This is the nuts and bolts planning of workflow and resources to deliver products and services. It includes forecasting, supply chain, budgets, cash flow management, lean process improvement, quality systems, etc. If effective, Business Planning becomes the link between Strategy and Execution. At a minimum, Business Planning drives Execution. Failures to execute on a consistent basis usually stem from a weak business planning system. We can assess the barriers to performance and assist in the development of more robust systems. This is the area that is often referred to as “Working on the business.” Making it real, requires tactics and programs with timelines and responsibilities for action.
The first step in re-inventing the business is to understand the customer and the competitive environment and to develop the vision of what the company could become. We provide a participative process and a framework to facilitate this analysis. The outcome of this process is a vision, defining how the client will earn the loyalty of its customers, relative to its competitors, and a shift in culture that supports the strategy.
Personal Strategic Planning
Many business owners focus on business results at the expense of personal goals. They focus on the “What” and ignore, or back burner, the “Why.” Developing a Personal Strategic Plan is critical to achieving the right goals, reducing stress, finding appropriate balance for yourself, family and purpose beyond the business.
Ownership Planning is a process of increasing the value of the enterprise, in consideration of personal goals. While Strategic Planning considers doing the right things to better serve the customer, relative to competition, it commonly ignores specific issues related to increasing the value of the enterprise. At the end of the day, the worth of any business is a function of a buyers expectations about the likely recurring revenue streams. Ownership considers changes to the variables that can improve the likelihood that profitability trends will continue with new ownership. It just so happens that these same variable improve performance for the current owner.
Long Term Exit Planning
Typical “Exit Planning” waits until the end of the game and can only react to existing circumstances. Our approach to “Planning For Exit” starts early and focuses on creating the circumstances for a wide range of options when you decide to transition ownership on your terms. Both approaches ultimately end up as deal structuring. The difference with Long Term Exit Planning, including all 5 layers of Integrated Ownership Planning, is that the latter allows you to create the circumstances that result in the deal you want.