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ny growth Forecast average pany earnings growth 13 GXC Planning processes of bestinclass firms ? Senior management devotes significant time ? Systematic, with clearly defined steps ? Rigorous, factbased approach, and a consistent view of the future ? Coordinated across business units ? Enables quick decision making and course correction Note: Examples include GE, Dell, Agilent, Abbott, Emerson Electric, Sun 14 GXC Keys to success A well developed, differentiated strategy A rigorous, fact based planning process to connect strategy with tactics A well aligned, effective anization to execute 15 GXC A high performance anization aligns five elements 2. Drives effective decisions 3. Aligns the front line with right jobs and right incentives 4. Right people Culture 1. Provides sustained leadership 5. Creates a high performance culture 16 GXC Agenda ? What successful panies do ? Examples from the private sector 17 GXC Successful strategic planning begins with a clear, focused mission ? Force tradeoffs between peting resource demands ? Test soundness of a particular action ? Set clear boundaries on what to do… and what not to do ? Make clear what “the core” is ? Memorable distillation of strategy clearly understood by all 18 GXC A well defined mission helps answer the questions that define the core business ? What are your most critical product and service offerings? ? What are your most differentiated and strategic capabilities? ? What are your most important channels? ? Who are your most profitable, franchise customers? ? What are the other critical strategic assets that contribute to the above? Core business 19 GXC