NEWH - August 2003 - (Page 54)

small business advice… by Jessie Robertson, Jessie Robertson & Associates strategic planning part 2 of a two-part series Previously I wrote about strategic planning and the decisions inherent in the process. Now I would like to turn your attention to the methodology I take to formulate strategies. I initiate business development strategy planning for each client in a progressive fashion. I start with a ‘Strategic Planning Questionnaire’ that uncovers each decision-maker’s ideas about their business. By examining goals, visions, strengths, weaknesses, issues, competition, project delivery expectations, etc., we start to reveal the core of the business that ultimately becomes the mission of the firm. Once the core of the business has been identified, we can then begin to shape strategies for positioning, for targeting, and for competing. It is at this juncture that we start to examine the firm’s goals against market conditions to determine if goals are realistic or unrealistic. The market research I conduct helps each client to make decisions based on knowledge and not suppositions. In addition, we begin to segment our market opportunities to exploit the firm’s value cycle. Most importantly, we start to evaluate the revenue opportunities that uphold the firm’s primary strategic goal: superior profitability. I am now ready to begin the process of creating a Marketing Plan. The Marketing Plan is the blueprint for direction and execution. At this point, we have a company vision, market research to support market positioning and client targeting, competitor’s information to gain a competitive advantage, and a tightened focus and strategy to gain greater market share and profitability. Budgets and milestones are established and included in the plan to keep all involved parties on track. Setting limits on what you are trying to accomplish is the essence of strategic planning. The company without a strategy is willing to do anything. If all you’re doing is trying to do the same thing as your competition, then it’s highly unlikely that you will be successful. It is naïve to believe that you can deliver the same sort of product/service as your competition, and actually do it better for long. That is especially true in today’s econo54 my when the flow of information and capital is extremely fast. It’s exceedingly speculative to bet on the incompetence of your competitors - and that’s what you are doing when you are competing on operational effectiveness. In addition, a focus on operational effectiveness alone tends to create a mutually destructive form of competition. If everyone’s trying to get to the same place in a similar market, then that focus causes customers to choose on price. When the Marketing Plan is completed, we are now ready to focus on the Creative Plan, in other words, creating the firm’s message. This step in the process typically follows the completion of the Marketing Plan so that the firm’s strategy may have continuity. The message becomes the basic value the firm is trying to deliver to their customers via its sales collateral and its sales pitch. Continuity needs to be strongest here in order to avoid confusing the organization on what the strategy is, and to ensure that customers know what the firm stands for. We are now ready for Business Development Execution, the last step in the Strategic Planning process. As part of the initial planning for execution, I like to ensure my clients have a database program that will generate calling reports. A monthly and quarterly review will assist in an examination of and a further reduction in the cost-of-sale. In addition, I like to ensure that controls such as profitability controls and sales controls are implemented to track progress, and to support focus and profitability. The only thing left to accomplish is to generate new business that is profitable. While strategic planning can be a difficult exercise, it is an important step to creating differentiation. Business is moving faster than it did 10 to 15 years ago. In this fast-paced and fast-moving economy, having a direction is critical. Jessie Robertson is a business development strategist and can be reached at 310-452-3550, jessie.robertson3@gte.net “Once the core of the business has been identified, we can then begin to shape strategies for positioning, for targeting, and for competing.” by Jessie Robertson Jessie Robertson & Associates

Table of Contents for the Digital Edition of NEWH - August 2003

NEWH - August 2003
Contents
Letter From the Editor
Hospitality News
On the Road Again
Calling All Entries
Tips on Specs
The Creation of the Ritz-Carlton Golf Resort
Signature Golf Resorts
Designing a Golf Clubhouse
International Purchasing
Creating a Vision for Clubhouse Renovations
Signage for Today’s Golf Resort
The History of Nightclubs
To See and Be Seen
Appealing to the Senses
Marysol–Real and Magical in the Windy City
The Juggling Act—The “Ooh and Aah” vs. Value Engineering
Cork—Not Just for Wine Bottles Anymore
Lessons Not Learned: Life Safety Issues From the Cocoanut
Small Business Advice...
Things to Consider When Building, Renovating or Expanding
Industry Partner Education
Sources and Credits
Bios

NEWH - August 2003