Reasons Strategic Plans fail
1) Lack of Focus, 2) Lack of Discipline, 3) Lack of Analysis.
Difference between Strategic and Business Plan
Business plan starts up. Strategic plan maintains.
2 ways to change culture
Change out people – easy
Communication – hard
Difference between branding and marketing
Marketing
Tactical
Communication
Messaging
Push – tell them to come
Branding
Strategic
Expression
Identity
Pull – the hunt me down
Four branding strategies
Rational
1. Best buy – Price and quality
2. Logical choice – Features and Benefits
Emotional
3. Implicit Processing – Response triggers
4. Attentive thought – Personal Experience
Market Service Area
Where are you going to service your customers – geographic location.
10 Revenue Sources
- New Sales
- Renewals
- Account expansion
- Online
- Training
- Consulting
- Market segmentation
- Intellectual Property
- SaaS subscription
- Channel Partners
Three Major Long-Term Roadmaps that make up the L-T Plan.
- Product Management Road Map – Most Important, and the others support this.
- Mfg Technology roadmap
- Information Technology Roadmap
Successful long term plans pay respect to
Vision, Mission, History, Business objectives, Market analysis, BUS
Three kinds of entrepreneurs
- Elon Musk – Something the world has never seen before.
- Jeff Bezos – Doing something better than anyone else.
- Ben Stuart – Truth Telling
Consequences of bad decisions
- Lack of opportunity,
- Lost absorptions
- Cost cutting vs. cost outs.
- Research and development spending is decreased.
- Good people leave – Take care of, and protect your people.
How to increase cash generation
- Increase inventory Production
- Increase Receivables Sales and marketing
- Decrease Payables Purchasing
Discipline of Market Leaders three generic strategies
Operational Excellence
Customer Intimacy
Product Leadership
Porter’s three generic strategies
Overall Cost Leadership
Differentiation of Products and/or Services
Focus
Pro Forma Financial Statements
- Income statement/P&L: Rev – Cost = Profit (MOM) This gives you Margin to measure against your assets
- Balance Sheet: Assets vs. Liabilities (YOY/QOQ)This gives you Assets for ROA and Debt/Asset ratio
- Cashflow statements: Cash in and out. (If I don’t have any cash, watch it every day). This shows you cash generation.
