Strategy by the Numbers

The following is a simple step-by-step process for creating a strategic plan by the numbers. This is a ten step process that can be used by a group, an organization, or an individual. Print out the steps and prepare to organize your ideas into a tactical plan for progress.

1) Twenty-one questions

Brainstorm to make a list of the first twenty-one challenges that come to mind. This can be done as a group, or as an individual. Ideas should be based primarily on identified opportunities to improve, real current challenges, or competitive necessities. Brainstorming means a free flow of ideas, so do not discourage or debate the merit of any individual ideas until twenty-one items have been identified.

If you are experiencing difficulty in identifying a list of twenty-one issues or ideas for improvements, then try using a SWOT Analysis. The SWOT Analysis is a list of your strengths, weaknesses, opportunities, and threats. This can help to give perspective and spark some ideas, but may not be necessary to identify a quick list of twenty-one issues, obstacles, problems, and opportunities.

Once you have created a list of twenty-one suggestions, stop. The list is complete. The first twenty-one ideas that come to mind are the most important opportunities and the most relevant issues. Anything beyond the top twenty-one ideas is getting too detailed in the issues, and can wait for the next strategic planning session.

2) Assign a point value to your twenty-one ideas

Review your list of twenty-one potential issues and opportunities, and assign points based on the following criteria.

Assign one point to each idea that is important. Important means long term and lasting benefit that truly impacts or changes the business. Be honest about your assessment.

Assign one point to each idea that is urgent. Urgent means that the idea or improvement needs to be implemented immediately, because waiting would have catastrophic consequences.

Assign up to three points based on your determination of the benefit. Benefit can be measured as financial benefit, or customer satisfaction benefit, or some other metric of benefit. Whatever methodology is used to determine benefit, this same measurement must be applied to all twenty-one ideas. For example, if you choose to use financial impact as the measurement for benefit, then all twenty-one items should be measured by financial impact. Do not mix and match, as with measuring some items by financial benefit, and measuring others by customer satisfaction impact. The metric should be the same for all ideas. The value of three applies to significant realistic benefit. The value of two applies to significant benefit, but not really sure if it can be achieved. The value of one applies if the benefit can probably be achieved, but may not be significant. If the benefit is not significant, and not likely to be achieved, then it is reasonable not to award any points for the idea, and move on to the next idea on the list.

Assign up to three points based on your ability to affect change, implement the idea, or address the issue. If you are absolutely certain that this is within your control to do, then assign a value of three. If you feel that it can be done with some concentrated effort, then assign a value of two, If it can be done, but requires resources, investment, budget, or other assistance to get the job done, then assign a value of one.

Add up the points assigned to each idea. Now you have a score for each suggestion,

3) Pick the Lucky Seven

Sort and prioritize the ideas based on the total score for each suggestion, from high score to low score.

The seven ideas with the highest points are the lucky seven that will get your attention. In the event of a tie score, agree on the final seven. Review the final list one more time and confirm your top seven priorities. The other fourteen ideas are really good suggestions, and may be the starting point for your next strategic planning session. For now, we will only focus on the top seven.

4) Ask the Five "Why's"

One by one, for each of the lucky seven selected ideas, ask the question "Why" five times. First, ask, "Why?" When you have the answer to that question, ask the same question about your answer. For example, "This idea will help me improve customer satisfaction." "Why?" “Because this is something that customers are always asking for." "Why?" "They are frustrated by not knowing what to expect." "Why?" "They have no visibility to our schedule, status, or progress." "Why?" "Our ETA is not always the same. We cannot communicate an expected completion date, and there is no method to give them updates." "Why?" "Creating a way to give updates would have some development cost, and it would take time to design the customer interface."

Some individuals may become frustrated asking "Why" five times. The reason that it can be frustrating is that the answer may appear to be abundantly clear as common sense. Even though the answer may appear obvious, it is still beneficial to ask the question, and dig a little deeper into relevance and root cause. In the example above, it is not enough to know that the idea will improve customer satisfaction, but by asking the question "why" five times, it created some additional clarity with regards to the real customer value and the real underlying obstacles. Practice asking the question "why" five times, even if you need to slightly adjust the question or the answer to give yourself an opportunity to dig a little deeper into each idea.

When you have completed asking the question "why" five times for each question, it is time to asses your lucky seven ideas. After this further review and assessment, you can decide if you want to work on all lucky seven opportunities and issues, of if you want to work on just a few of them. The magic number that you choose is based on what you feel that you can handle, based on your assessment of each opportunity.

5) Assign your METRICS

Measure Everything That Results In Customer Satisfaction. Identify two primary metrics for each of the ideas that you have selected to pursue. These two primary metrics will be the method to compare past history, and future success. Things that get measured get done.

The first metric is based on the goal that you wish to impact or achieve. Metrics must be tangible items that can be measured with a numerical, financial, or date assignment. For example, a reasonable metric is to reduce cost, increase revenue, increase profit, decrease hours or time to complete a task, decrease time to obtain a response, increase production by a predetermined percentage, etc. If it is a good idea, then find a way to measure progress and assign a goal.

The second metric is based on a measurement that could potentially be adversely affected by the attainment of the goal for the primary metric. For example, if the primary metric is to reduce time, a secondary metric may be to measure the associated cost to achieve the goal. If a primary metric is to reduce price, a secondary metric may be to measure the impact to quality as determined by number of defects. Consider the potential undesired consequences of achieving your primary metric, and assign a secondary metric as your control. The combination on these two metrics will greatly enhance your success.

6) Create your schedule

Identify key tasks and milestones associated with your ideas and implementing improvements. Perhaps you have commitments for dates, or a fiscal period that must be accommodated. Perhaps you are in a competitive race for the solution. Perhaps you have an idea of the project plan and key milestones for implementation. Use your judgment to assign a tentative schedule for achieving your metrics. The schedule may be subject to change upon further review, but it is important to recognize important commitments and establish expectations.

7) Do it

Create a plan for each objective and implement it. The process for creating an implementation plan for each idea is distinctly different from the strategic planning process.

8) Measure it

Measure your results, both the primary metric and the control metric. How did you do compared to your goal?

9) Learn from the experience and make adjustments

Use the knowledge that you have gained from the experience as a review before beginning the next strategic planning session. It may create new opportunities, and it may help to refine your perspective for other ideas.

10) Go back to the first step It is time to start planning again

Wash, rinse, and repeat.

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Words of Wisdom

"There is a theory which states that if ever anybody discovers exactly what the Universe is for and why it is here, it will instantly disappear and be replaced by something even more bizarre and inexplicable. There is another theory which states that this has already happened."- Douglas Adams

"Why be a man when you can be a success?"- Bertolt Brecht

"An economist is an expert who will know tomorrow why the things he predicted yesterday didn't happen today."- Lawrence J. Peter
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"John has been a tremendous resource for our company in helping us put together a solid strategic plan to enhance our selling efforts. His knowledge of the customer, their process, and our contact strategy has provided advice that has catapulted our chance of closing this sale. His follow up has been world class and he has the utmost integrity that the end client and partner are both going to benefit from the relationship."

Curt M. Bimschleger
Executive Vice President, Business Development
Accent Marketing

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About the Author:
John Mehrmann is author of The Trusted Advocate: Accelerate Success with Authenticity and Integrity, the fundamental guide to achieve extraordinary sales and sustain loyal customers. John Mehrmann is a freelance writer and President of Executive Blueprints Inc., an organization devoted to improving business practices and developing human capital. www.ExecutiveBlueprints.com provides resource materials for trainers, sample Case Studies, and educational articles. http://www.InstituteforAdvancedLeadership.com provides self-paced tutorials for personal development and tools for trainers. Presentation materials, reference guides and exercises are available for continuous development.