Strategic Planning Q & A

This column is intended to answer common questions related to strategic planning and strategy in general. In each issue we will answer questions posed by seminar attendees, our clients and our readers. Please send your questions to Elizabeth Tidd, E-mail: simplifiedstrategicplanning@cssp.com ~ Mail: CSSP, Inc. P.O. Box 851 Ann Arbor, Michigan 06890-0851 ~ Fax: 203-255-9191.

Can small "breakout" groups be used effectively during the Strategic Planning meetings?

There are, in fact, a number of points during the Simplified Strategic Planning meetings at which the use of breakout groups could be beneficial. This is assuming that your team size is large enough to make this a practical approach. While these suggestions are not inclusive, breakout groups could be used to create drafts of the company's Capabilities (Strengths and Weaknesses), Perceived Threats, Industry Scenario and Winner's Profile. Individual groups could also consider and formulate direction to certain Strategic Issues. It is important to note, however, that the success of the planning process is dependent upon building consensus among the management team members. In order to be sure that breakout groups are used effectively it is important to have a skilled process leader who understands how the information flows into the Simplified Strategic Planning process. In all cases where breakout groups are used to supply input, the entire team must be given the opportunity to fully discuss and challenge the breakout group's findings and suggestions.

As a subsidiary of a larger company, there are certain corporate criteria we must meet. How do we accommodate this in the planning process?

Mandates can come from a number of sources. As you suggest, subsidiary companies may have non-negotiable corporate objectives they must meet. Likewise, a company's board of directors may establish similar guidelines or the mandates may simply emanate out of the wishes and desires of a company's ownership. Regardless of the source of mandates, you must take them into account in conjunction with the Strategic Planning process. The best approach is simply to have a discussion at the beginning of the process with the appropriate stakeholders and identify any mandates, which exist. All planning team members should be made aware of the mandates so that potential conflicts can be spotted and resolved during the planning process. In many cases you should incorporate the mandates into the company's Goals (Page 6.2 in the Simplified Strategic Planning process). Additionally you may want to discuss corporate mandates as a part of your team's strategic issues discussion (5.2).

How can we get our middle managers more involved in the Strategic Planning process?

If middle managers are not already active on the Strategic Planning team, they can and should be involved in several ways. Many of these key employees can participate in the research assignments that are part of the initial formation of the plan as well as in yearly updates to the research. They can also be involved as members of Action Plan teams charged with implementing the company's Strategic Objectives. Some companies invest in a Strategic Alignment program where the senior management team gives an overview of the strategy then asks the middle management team to develop key objectives for their departments that will support the strategy. (See Alignment for Implementation: Getting your People to make your Strategies Work, our newly released book). In addition, some companies have also found benefit in assembling groups of middle managers for a workshop just prior to beginning their annual Strategic Plan review and update. At this facilitated meeting you should review the planning process and strategic progress to date. You should also solicit input on issues, opportunities and changes in the operating environment from the middle management group. The senior management in their Strategic Planning meeting would then use this input. Closing the loop by communicating back to the middle management group on action taken would be appropriate. Another approach would be to rotate middle managers into the strategic planning process.

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