Compass Points: Client Corner

Compass Points Talks to

Applied Education Systems CEO, Jim Schultz, About How the Simplified Strategic Planning Model Has Supported His Company's Growth

AES Logo Applied Education Systems makes technology-driven learning laboratories for high schools and junior high schools. AES is located in Lancaster, Pennsylvania. Compass Points spoke with CEO Jim Schultz about how the comprehensive nature of Simplified Strategic Planning has supported his company’s dynamic growth.

CP: How long have you been conducting formal strategic planning?

Jim: This will be our third year planning with the full Simplified Strategic Planning (SSP) process. We tried at least once before that to formalize our planning activities with limited success.

CP: What were the shortcomings of your previous attempts?

Jim: In a nutshell, lack of business research prior to the meeting. We held a two-day business planning workshop with another consultant, another process. The discussions were positive - we developed a mission statement, discussed long-term issues and identified a set of actionable objectives - but we felt that the process was lacking.

Without prior preparation, the decision making was based only on the information we had immediately at hand. We all acknowledged the value of formalizing our planning process, but also realized that we would need a more complete approach to planning if it was really going work.

CP: So, at that time, you started looking for another planning process?

Jim: Yes, that’s right. We were deliberately shopping around for strategic planning and business planning processes when we received your seminar brochure in the mail. It really struck a chord, so our Vice President of Product Development attended to see if it was what we needed. We have been working with it since that time.

CP: Let’s talk a little about your decision to engage an outside consultant for process leadership. I understand that you tried the process on your own the first time around.

Jim:Yes we did, but we were just too busy to manage ourselves through the process. We are still a relatively small company with hands-on senior managers. The same folks who perform the analysis and make the long-term business decisions are still heavily involved
with the day-to-day operation of the business. It was too easy for us to be distracted from the requirements of the planning process by our daily responsibilities. We did not make a commitment to finish. So, after trying it on our own the first year, we decided that we needed the support of an outsider to make sure we completed the process. It was the right decision for us.

CP: What have you found to be the most effective part of the process?

Jim: There certainly are a number of benefits. For instance, the gathering of industry information before the critical decision making discussions. Good research yields good decisions. The early exercises in the process helped us to formalize our understanding of the business. Just writing it all down and putting everything in its place forced us to paint a complete and coherent picture about what it takes to succeed in our industry.

The most important part of SSP, however, has been the implementation planning. The biggest challenge for us is follow through. The step-by-step process for selecting objectives, structuring action plans and ensuring resource availability has made us much more effective at focusing on the most important activities throughout the planning year - in spite of our daily distractions.

CP: What kind of results have you seen through more effective implementation planning?

Jim: Sales have doubled in three years and profits are much stronger than they were before we initiated SSP. Naturally, such rapid growth puts a strain on any organization. In spite of this, we have been able to develop our organization, reduce cost of goods and introduce several new product lines.

CP: Are there any special thoughts you want to pass on to our readers?

Jim: It’s easy to be busy every day, but it’s hard to consistently be busy doing the right things. Strategic planning has kept us on the right track.

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