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Strategic Intentions Diagnostic Step 2

Planning

  • Note: Your organisations market share can be identified by measuring your revenue (or sales) as a percentage of an industry's total revenues over a fiscal period. Companies increase market share through innovation, (including the organisational model, policies, systems, procedures and processes), strengthening relationships, smart people practices, and acquiring competitor’s etcetera.) Any organisations market share is the percentage it controls of the total market for its products and / or services.

    Key Questions: What do you see as the key questions related to your percentage of market share? Why? Can you provide a brief outline related to this topic?

  • Note: Strategic planning is important to an organization because it provides a sense of direction and outlines measurable goals and priorities. Strategic planning is also a tool that is useful for guiding day-to-day decisions and for evaluating progress and changing approaches when moving forward. Other reasons why planning is useful include, getting everyone on the same page, simplifying decision making, driving alignment and communicating.

    Regardless of the type, size or sector, increasing market share for any organisation is one useful development strategy. This is because of a number of benefits flowing from this for your organisation. For example, increasing market share translates to providing a competitive advantage, economies of scale, increasing purchasing power and reducing worker turnover. Other development strategies could include being able to make strategic investments in infrastructure, evolving the organisational model, and / or enhancing critical and core competencies of workers … etcetera.

    Key Questions: Can you briefly outline your plans and strategies for developing your organisation? What do you see as your key challenges for these plans and strategies? Why?

  • Please provide a breakdown or outline of:

    • A, B & C customers, (segmented numbers & profiles).
    • Your policies, systems, processes and procedures for tracking and measuring other relevant customer / client analytics.
    • Your customer or client retention & referral system.

    Note: If you cannot track your customers, you cannot measure the key analytics that inform a customer / client centric strategy to build upon your existing based. Why is this important? Firstly, because it is impossible to manage something if you cannot measure it. Secondly, because it is five to six times easier to provide a new service or product to someone who is in an existing relationship with you than someone who is not. Equally, segmenting your customers or clients into specified segments with clear profiles is hugely beneficial. This is because you’re ‘A’ group, for example, inevitably provide the greatest ROI for your organisation, (however, you measure it), whilst your ‘C’ group the least. The ‘A’ group generally also are the people that persistently refer new people your way, whilst the ‘C’ group are often high maintenance, (high need) with less benefits flowing from the relationship. There are other reasons, however, these thoughts give you an idea of why segmenting is critically important to your organisation.

    Key Questions: Do you have a system for segmenting your customers or clients? What are your key questions in relation to segmenting your customers or clients? Can you describe your tracking, measuring and managing your customers or clients? Can you describe your customer / client retention and referral system?

  • Note: You will have noticed by now that this diagnostic tool keeps talking about clients and customers to differentiate between providing a service and a product. What’s the difference? The biggest difference between selling a product and selling a service is that prospective buyers can see, touch and feel products, while services are intangible. Organisations that sell both products and services must create separate marketing plans for each segment.

    To calculate how many times people buy your product or service each year you simply divide the number of purchases by the number of purchasers. Do you notice from this statistic how important segmenting your customers or clients can be to improving your organisations overall strategic planning and position? One of the reasons that Upward Enterprises core business service is Internet enabling our client’s organisation is because we know that this is one of the best way to build a lasting relationship with your customers or clients. Some pretty straightforward, but highly effective strategies for doing this include; email campaigns, personalisation of your message and linking a benefit and new offer to a previous purchase.

    Key Questions: Do you have any plan or strategy for increasing your customers or clients interaction with your organisation? Can you briefly describe them? Do you have any plan or strategy for increasing the value that you provide and receive from your customers / clients?

  • Working out your average $ value per sale and other relevant metrics is very useful. However, firstly to make sure you know what the formula is all you need to do is to divide your total transactions by your total sales. If you want to do it for a specified period all you need to do is to divide your sales by the specified period, for example, total sales ÷ by twelve to calculate average monthly sales etcetera. You can do the same within a specified time period over a week or even a day. The reason it is useful is because you can then utilise these analytics to work out an approach to improve your sales for a specified period. For example, by raising or reducing your price, bundling your offer, changing your product or service, cross – selling or on – selling.

    It doesn’t matter if your organisation is a profit orientated business, charity or a provider or a public service, understanding the story in the numbers is always useful. And, in this story the average $ value per sale provides a key leverage point for improving your revenue position.

    Key Questions: Do you know what the average dollar of a sale from you customers or clients is? What are the cost drivers associated with your sales? Do you have any plans associated with the average $ value of a sale with your organisation? Can you briefly outline them?

  • In accounting, revenue is the income that a business has from its normal business activities, usually from the sale of goods and services to customers. Revenue is also referred to as sales or turnover. ... Profits or net income generally imply total revenue minus total expenses in a given period.

    There are a number of ratios that are relevant for turnover. For example, accounts receivable, inventory, total assets, and fixed assets etcetera. In this space you are welcome to include the ratios that you think are most important to your organisation’s turnover.

    Key Questions: What is the difference between cash flow and turnover? Why have you picked your particular ratios in relation to unpacking the story in the numbers in your turnover? What are they? Are there any other ratios that might be also relevant to your turnover? What are they? Why do you think they are relevant? How often do you review your ratios?

  • Note: Some organisations are not focused on growth. It is simply not what they are about. For these organisations the focus necessarily is about organisational development. It is why this question provides you with one or two options. Of course it is entirely conceivable that both these strategies are applied if you define growth in broader terms than just increased revenue.

    What are the traditional growth strategies?

    Market penetration, market development, product development and diversification are what most traditional organisations focus on to drive growth. More recently, approaches that have been successfully deployed as marketing strategies for growth have included, relationship marketing, database marketing, that is informed by effective market research activities such as product diversification and awareness building. For example, diversifying into new markets requires understanding the specific prospective customer’s psychographic and demographic profile, whilst building awareness compliments such a strategy.

    What are some common organisational development strategies?

    Organisational development has had a very heavy focus on developing the people that inhabit an organisation for a very simple reason. If the people in an organisation believe in and understand the organisational intentions they are far more likely to commit to making it happen.

    Key Questions: Key Questions: How do you define growth in your organisation? Do you have any growth and / or development strategies and / or targets for your organisation? Can you provide a brief outline of them here?

  • Notes: A very simple, but effective way of getting your workers involved in the planning process is to following the following steps:

    1. Ask for their feedback on your draft plan.
    Then;
    2. Have them set goals for the business.
    Then;
    3. Re-develop your plan off their ideas.
    Then;
    4. Meet and update the goals regularly, but at least on a monthly basis.

    Key questions: How do you involve your workers in your business planning process? How often do you involve your workers in your business planning process? Can you briefly describe it here?

  • Note: A useful outline of what defines a successful online plan includes; finding a need and filling it, writing copy that sells, designing & building an easy-to-use website, using search engines to drive traffic to your site, establish a reputation, (preferably as an expert) for yourself, follow up with customers & subscribers with email and increase your income through back-end sales, upselling and on-selling.

    Key questions: Can you briefly describe your online plan here? What are the obstacles to you achieving success online?