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The PDI Difference
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GROWTH: Identifying Strategies for Growth
Strategic Planning: Leadership Strategies Makes It Work For You!
What are the most important issues that your strategic plan must address? Click one to the right to learn how the Drivers Model, our strategic planning approach, can help you tackle these tough issues. |
Identifying Strategies for Growth
It is not uncommon for an organization to be hampered by slow growth or periods of "negative" growth. While they desire to excel, they have been unable to address the most important areas impacting their growth.
The Key Question |
When developing your strategic plan, would it be helpful if... There was a method for identifying the key barriers and critical success factors for growth so you can develop strategies to address them?
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Here is how we help your team develop strategies for growth!
With the Drivers Model, if an organization has growth issues, the issue is identified early in the process through the management briefing that precedes the strategy workshops. As an example, the issues below are from the management briefing with a for-profit organization.
Based on identifying growth as an issue, we customize the situation assessment to identify from employees, customers, and other stakeholders potential reasons for the growth challenges and potential strategies to address them.
While the input is helpful, this input must be translated into solutions. For some organizations, the first step to solution-building is to establish one or more positioning statements.
Positioning Statements |
We believe that the consumer is becoming more demanding, expecting "feel right" brands, fashion, value and service. Therefore, we will:
- Create and offer products and programs that position our brands as the premier source of ideas, solutions and benefits for the changing lifestyles and demands of our increasingly diverse population.
- Provide interactive services that result in our owning the relationship with our consumer.
We believe that consumers, at an increasing rate, will continue to move away from department stores and outlet channels toward newer purchasing formats including lifestyle specialty, catalog, and e-commerce. Therefore, we will:
- Aggressively position ourselves to develop a lifestyle concept through multiple channels: catalog, e-commerce and retail, while continuing efforts to improve profitability of the wholesale channel.
We believe that the economics of wholesale accounts, particularly department stores, will continue to erode profitability of wholesale sales and excess capacity, particularly in developing countries, and will continue to put downward pressure on prices. Therefore we will:
- Develop products which are less price sensitive, including collections, gift items and accessories.
- Emphasize more profitable direct-to-consumer channels, including outlets, catalogs and e-commerce.
- Constantly improve efficiency in the total supply chain.
- Improve comparative store profits through changing mix, bigger ticket items, direct imports, and target marketing.
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If you stop here, you're leaving the positioning statements too broad for tracking and monitoring progress. Therefore, through the Drivers Model, the Planning Team establishes a goal statement and measurable objectives to track progress.
Growth Goal |
Exceed financial and volunteer resource targets necessary to support continuous growth and development. |
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Three-Year Objectives |
1. | Increase total sales to $350 million |
2. | Increase direct-to-consumer sales (including web, company-owned stores, catalog) to 50% of all sales by the third year |
3. | Add 10 company-owned stores per year with 90% profitability by the second full year of operation |
4. | Reduce cost of manufacturing as % of revenue by three percentage points by the third year |
5. | Achieve 10% profitability (EBIT) in each of the first two years and 15% by the third year |
Conclusion
The Drivers Model identifies strategies for growth by engaging stakeholders in identifying barriers to growth and potential growth strategies, and focusing the planning team on defining positioning statements and measurable outcomes.
Tell us about your strategic planning need
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