Strategic Planning

Jeff Bernard's 34 years in the petroleum industry began as a field marketer for Mobil Oil. Jeff's extensive field experience provided a unique background when he became Mobil's Fuels Marketing Planning Manager. Jeff founded J. Bernard Associates, LLC in 2000 to work with petroleum marketers in developing realistic business improvement strategies. Jeff is a graduate of Penn State's Business School, lives in West Chester Pennsylvania, is a frequent seminar speaker and is teaching strategic planning for the International Institute for Franchise Education at Florida's Nova University this spring.

Web: www.jbernardassociates.com

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Recent Questions:

1) I am the head of a successful family owned petroleum business. Each year the family creates a budget and a business plan. How do we involve our non-family employees so they feel part of this "planning" process without giving up ownership?
Getting employees to feel more "invested" in a family owned business is a common but tricky issue. Most employees want to contribute to the company's success and have their opinions valued. Business owner's typically want employees accountable for results but do not want to share ownership. The key in resolving this dilemma is the method used to include the employees in the business management process.

One way to include employees is to establish a business strategy team. The participants include owners and key employees. The team participates in structured strategy "workshops". Each session has a definite time allotment, a firm agenda, and a workshop facilitator (someone other than an owner, who captures and publishes the output from the workshop, keeps the agenda on track, and has the ability to make all participants feel their opinions are being heard).

The workshop discussion is focused on the competitive advantages and disadvantages of the company, the directions the owners want to take the company, and the actions required to improve specific company results. Each action item is assigned to an individual team member. The action item owner is responsible for developing a comprehensive implementation plan, enlisting the support of appropriate employees; reporting on progress and establishing measurements that let the team know when milestones are achieved. Team members are "invested" in the process because they own the outcome.
The real value in the workshop is that the employees have the opportunity to voice opinions and participate in the planning process. Most employees understand and respect that the owners make the final critical decisions because they own the business. Owners get the opportunity to participate in the process, hear employee opinions, consider new solutions and maintain their leadership role.

2) Our company has a very detailed strategy but we are distracted by daily issues and strategy implementation is sidetracked. How do we stay on course?
Linking strategy to implementation is critical in a highly competitive environment. A recent discussion with a client's strategy team revealed several key areas that facilitate the link between strategy and implementation.

The first step is to develop specific objectives and actions that are required to successfully implement a strategy. For example, your company has three broad strategies (to be implemented over the next five years). Specific objectives that are shorter term (one to two years) link to each strategy. Several detailed action items (implemented within one year) link to each objective. Make sure that the action items are clearly defined at the beginning of the process to avoid confusion and conflict with other action items.

The next step is to assign responsibility and accountability to individuals for creating and implementing an action plan. Make sure that the action item is consistent with and a part of the action item owner's job. If it is not then you need to incorporate that action as part of their job responsibility.

Next make sure each action plan has a measurable outcome so you know when success is achieved. Focus first on the "low hanging fruit" to establish a success track. Demonstrating success and celebrating the results encourages other action item owners to focus on their implementation plan.

One of the most important steps is to follow-up with action item owners on a scheduled basis to assess how well your company is progressing on each action item. The follow-up should be simple so that action item owners spend their time implementing the plan not reporting on their progress. For example, an email identifying the Action Item in the subject line with a one line status report and a one line next step provides enough detail to keep track and does not overburden anyone.

Another step is to revisit the entire strategy at set intervals to revise and consolidate existing action items, create new actions, and get feedback from action plan owners on the process. The interval should be shorter in the beginning and may be extended as your company gains experience with the process. Eventually an annual review coordinated with the budget process makes sure that everyone in the company is heading in the same direction.

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