STRATEGIC PLANNING TECHNIQUES

STRATEGIC PLANNING TECHNIQUES

Homer Maximo

National Graduate School of Quality Management

Introduction to Strategic Planning

QSM 381 (Online)

February 06, 2017

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Abstract

“Strategy is not the consequence of planning, but the opposite, its starting point.”

(Mintzberg, Retrieved February 6, 2017). Performance excellence can be achieved when proper

and accurate data interpretation is available for analysis. When that happens, words transcribed

to numbers will lead the process improvement to target, meeting and exceeding customer

satisfaction. On this summary, we will review the current situation of my employer, an one in a

time iconic retailer and how, the Voice of Customer data is leading and/or misleading the

company performance.
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Strategic Planning Techniques

Voice of Customer is considered the main data source for strategic planning.

Understanding what the customer needs and expects from a product or service, could be a

leading resource to all management levels to an organization success. Those sources can focus

the organization to act in two ways: Reactively, when an unsatisfied customer has complaint and

his information is used to “fix the issue”, with the high risk of losing the customer. On the other

hand, organization would act proactively, using data from satisfied customers to develop

continuous improvement cycles, project business growth and benchmarking to measure against

industry competitors. Per the summary of the authors of “Beyond Strategic Vision: effective

corporate action with Hoshin planning” (Cowley & Domb, 1,997), three steps show the

relevance of the Voice of Customer when creating strategic plans:

Identifying Who You Are,

This step resembles the define phase of the DMAIC methodology, as it provides a clear

purpose to the organization through its vision and mission. Companies must clearly know their

position in the marketplace, and establish guidelines to determine how, what, where and when to

compete in a selected market niche to maintain customer loyalty.

My employer, Sears Holdings Corporation, once an iconic retailer that initiated the retail

industry in United States and served as reference worldwide, was very well known for the quality

of their services and products; mainly apparel, consumables and tooling, deviated from their

main market share to expand operations into new products and services. This expansion did not

take into consideration market variables such as: Difference on purchasing power, income,

regional social-economic and cultural behavior, that has led the company to failure. As

recommendation from our workforce, company must resume the efforts focusing on the product
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categories that would bring the traffic to stores. To those underperforming categories,

representing a small portion, be sold to generate revenue for reinvesting.

Identifying Your Customers,

A main step on strategic planning, leading the companies to focus on their major income

source and drive performance through customer satisfaction. Identifying primarily your internal

customers as reference information to improve processes, would lead to an easier improvement

of processes and perception from external customers. Once an organization is able to clearly

identify the market niche where you belong, it would target their operations to deliver above and

beyond service and product quality to its customers. Furthermore, the understanding of

generational transition is a key of companies’ success, as new trends and interest have risen,

forcing the organization to pursue constant innovation.

At my employer, this topic has remained irrelevant, as we continue to offer same products from

50 years ago. Improvements made to certain product categories are not attracting nor satisfying

the customer base. Although many of our products serve as benchmark to our competitors, we

are not focusing on the final customer, but in the market changes. At the end, performance is

simply measured as: no innovation, no sales.

Gathering the Customers’ Needs,

The key of successful communication: Listening. Is your product what the customer

needed? .A major organizational weakness, where the customer need is viewed from the

executive’s perspective, without referencing to the customer VOC. Using my employer as

reference, and understanding as insider that major failure has come from not understanding the

new generation and new markets demands. Under executive pressure and focus, company is

aligning to reach Amazon level in online sales and declined to invest on service at brick and
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mortar. In addition, our e-commerce channel does not attract the interest of millennials, as it is

not friendly user, nor offering different products to match their expectations. It would be about

time to the company to realign resources to recover lost customer base. Personally, I strongly

believe that going back to basics will bring back the traffic to stores, so for, improve online sales.

Recommendations

From my experience working 4 years at current retailer, I would recommend to work on

following topics:

1. Listen to customer feedback,

2. Align the efforts of all business units having as main goal: achieving superior customer

satisfaction,

3. Improve processes based upon customer data, not management point of view,

4. Evaluate customer needs on products and services before developing a new product or

deploying a new service,

5. Invest on your resources, train, promote from within, reinvest and invest again,

6. Realign resources to recover customer base,

7. Per the generational transition, redefine your products and services accordingly,

maintaining those to supply loyal customer base,

8. Benchmark to innovate, not to offer same as others,

9. Involve vendors, suppliers and major customers on company strategy,

10. Many others,

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References

Cowley, M., & Domb, E. (1,997). Beyond Strategic Vision. In C. Michael, & E. Domb, Beyond Strategic
Vision:effective corporate action with Hoshin planning (pp. 202-236). Newton, MA: Butterworth-
Heinemann.

Mintzberg, H. (Retrieved February 6, 2017). Strategic Planning Quotes. Web:

http://www.azquotes.com/author/10183-Henry_Mintzberg.
.