In addition to colorful plants, autumn is the season for strategic planning. Most businesses operate on a calendar financial year, so it’s time to review or engage in strategic planning before creating and approving an annual operating plan (AOP) for the coming year. They need to know what steps they are going to take to gain new customers or grow their business with existing customers. More importantly, they need to plan how they will allocate the scarce resources (people and dollars) to succeed with these initiatives.
Normal voices on the surface: Review last year’s performance and update targets for next year. But if you take a closer look at the factors influencing trends and changing the economy of the industry outside of finance, the strategic planning is much more than updating last year’s AOP. Strategic planning should be the roadmap for the future of the company. Combine this with the fact that today the planning takes place between two major racial changes, one demographic and one technical, and this effort can be difficult. Both of these changes are leading to changes in the instrument finance industry. There are disruptions that need to be addressed immediately in your strategic planning process.
Demographics (number of people) describes the size of the market offered as well as the human capital required. The next generation of employees and consumers (Generation Y or Millennials) is the largest generation in history in the United States with 88 million. They are the first generation to grow up connected to an ever-present and ever-expanding digital ecosystem. The technology that houses Generation Y, an ecosystem called the Fourth Industrial Revolution or the Internet of Things (IoT), is the first generation of technology that connects everything to each other and produces data at the speed that Diversity I’ve never seen before. . Imagined. This generation of technology is valuable both in speed and scale and should be considered by any company that wants to survive.
Generation Y and the digital ecosystem they power are at the heart of a sprawling data universe that strategic planners must adjust and use. How is the data used? You ask him If you do not ask questions then the data is useless and only those who ask questions about data get innovation. Who bother
Digital strategic planning is about asking data questions. Questions about each and everything. And there are no “stupid questions”.
Start with the basics
I had my first year of strategic planning at Honeywell. I was fortunate to work in the company’s business organization, which had a strategic mission: to develop new technologies for the various divisions of Honeywell. After experimenting with different strategy planning methods by Honeywell leaders, I was lucky again when my next stop was Designer-led Product Development Consultancy. Designers are naturally strategic thinkers because they are design thinkers, focused on consumers and the population. So I was once again living in a strategy culture where different ways of dealing with many customers were followed.
After doing all this on-the-job training, using a wide range of planning methods, I realized that the process of strategic planning is not as important as the basic principles. All good strategic planning is based on the company’s mission, vision and values, but from there the strategic planning process has to address three basic questions:
Who are the customers / markets we serve and what do they need?
What is our competitive positioning?
What culture do we need to succeed?
As a strategy student, I have learned the answers to these basic questions under the guidance of basic strategy thinkers. His insights help me focus on what matters in strategy, as Newton’s laws explain how things move in classical mechanics. More importantly, they provide a context in which additional questions can be asked about the data that is now part of every business.
Knowing what not to do can be difficult to accept, especially for sales organizations. But not all revenue is equal and not all customers are equal when it comes to strategy. Fortunately, most of the data needed to answer related questions is found internally in the results of the existing operational data streams of the Lease Origination System (LOS), Customer Resource Management (CRM) system and the Contract Management System (CMS). . Most equity financing companies and banks have very deep data in these systems, data that they hold and store but do not analyze. This data can answer questions about growth, profitability, and customer demand. Companies that diligently document their profits and losses also gather information about competitors and may know more about the performance of the competition than they think. If they ask, their data will tell them what not to do.
Being different and making rivals irrelevant are self-knowledge goals that require critical thinking. But again, these would mean that you have to spend for these processes. Differentiation creates margins: limited supply can charge higher prices. Overstating an offer usually indicates a lack of easy replacement or differentiation, as is the case with basic products. External data often provides the information that the competition wants you to achieve, but a good CRM discipline can add a wealth of competitive information about why the contract won or lost, who made the offer, and wondered what not. Should have
Clients and markets
Creating and retaining customers is a constant effort. But most approaches are more strategic than strategic. Indications are followed and agreements are proposed. Equipment financing is a highly productive business. Some companies may offer hundreds of offers each week. This is good because High Turn generates a lot of data about customers and their perspectives on the company’s offerings. Marketing companies are constantly experimenting with the consumer space to see if their offerings are attractive. The above data contains trends that can inform the strategy, especially when combined with technology, market, and economic data. This data shows where the company is creating new customers and where it is looking for customers should not be. See “Know what not to do”.
Creating customer value is a design process. The company must understand the needs of the customers and solve their problems. Empathy is the key word. Today, data is a tool of empathy, a tool for consumers to understand and what they value. Margin is the best measure of both the value of the offer and its difference. In fact, when a company has a very successful, high margin offer, competitors often come up with alternatives or lower priced versions. The most informative provider prevails, the largest amount of data on the client’s needs.
Charan is one of the best measures of competitor activity as it measures when a user is looking for an equal or better alternative. Consider an offer that seems to be working because it has a large number of net new users, but also high-level, low renewal rates. It is a symbol of commodification. Consumers obviously have many choices and low switching costs. A business that has a large number of new customers and a high deviation rate is one that guarantees a “don’t do” consideration.
Culture deserves three references because it is the most important element in both the complex and the strategic process, as Drucker summarizes. Culture is an intrinsic feature of a company, so it should come as no surprise that internal operation statistics contain answers to most culture questions. Of course, the organization should be interested in its culture and collect data that measures its results. The mission, why you do what you do, should increase employee engagement, which in turn will increase customer engagement. If your organization has the business intelligence framework that it should have, how much time do you spend using it? Business intelligence is built by asking questions about operational data. A culture of learning, a culture of enduring competition, lures data and the questions they can answer. Innovation in the form of new product sales, increasing workflow productivity, and employee satisfaction are cultural initiatives. Of course, any company that measures culture encourages this.