StratTalk eNews — Issue 6, September 2008

Welcome to the month’s edition of 60MSP eNews Monthly. We’ve been in the field giving workshops and discovering what many leaders have on their minds. We hope to impart some wisdom and advice to help leaders effectively create a strategic plan in 60 minutes. If you are interested in finding out more about our workshops, please contact us to explore your needs.

Here are some comments about our latest workshops:

I really enjoyed the workshop even better this time than last. I would ‘chalk’ it up to business maturity—my appreciation for simple, quick and effective business tools has risen dramatically in my time as president. So this really hits the spot!

Stephen C. Patterson, President, Central Valley Builders Supply

What I found most rewarding was that I now have a process that managers can use to help them formulate a business plan with actual strategies, objectives and tactics instead of just numbers. The timing was perfect, too, as we’re in the planning mode for 2009!

Steve

Learned a new tool to process perceived opportunities. [60MSP is] a detailed way to really think through things. [You can] evaluate various strategies, do it, and use it as a road map for course correction.

Pat Patrick, President/CEO, Lodi Chamber of Commerce

We also want to remind you that it’s not necessary to attend a workshop to enjoy the power of the 60MSP. We also sell an easy-to-use book, The 60 Minute Strategic Plan, that takes a step-by-step approach to help just about anyone create their own strategic plan. Please visit our website and check it out.

John E. Johnson, CEO
Anne Marie Smith, President

The Big Bad Economy

I’m just an insignificant little guy, but the big bad economy is affecting me. So what do you do when economic storm waves break over your little business? Why you ride it out and hope to be floating and upright when the storm passes. So how do you successfully ride it out? Create a strategic plan to prepare for the big and small waves and, eventually, the calm waters.

Tip #1: Accept that you are in a big blow.

How does this work, you ask? Take the analogy of a small ship in rough seas. I am no sailor, but apparently you do certain things to mitigate the effects of the storm on your small vessel (business). The first thing to accept is the fact you are in a big blow and it’s going to get rough. Drop any pretense that you can continue on the course you set when seas were calm and business conditions were normal.

Tip #2: Protect the sales remaining from being damaged.

The whole idea is survive, stay afloat, and don’t get sunk or too badly damaged. I said too badly damaged because the reality is you will likely be damaged, which cannot be avoided. Your ship was not created for these weather conditions. As I understand it, you bring in the “sales”—I mean sails—but the analogy between sails and “sales” is a good one. Since there will probably be sales retraction, you need to protect the sales remaining from damage. You are going to need them when the storm passes.

Tip #3: Take very good care of the customers you retain.

Take very, very good care of the customers you retain, giving them no opportunity to break loose and float away. I understand that the only way to survive a serious storm is to counter attack (i.e., head directly into the waves, do not run before them, and never get caught broadside). You need to directly face your customers, proactively determine how your customers make and lose money, and then determine how your products or services can make more or lose less money for your customer.

Tip #4: Tighten controls on expenses and lower overhead.

Batten down the hatches, which is to say tighten controls on expenses and lower the overhead. Do let your crew know, first of all that you WILL survive this storm, but it will take all hands on deck to make that happen. Have each person attach a lifeline which is to say, This is what we must do to survive. I am calling on you to meet or exceed your personal best when it comes to job performance.

Tip #5: Keep the captain on deck.

The captain must be full time at the helm. So your direct oversight and supervision is absolutely critical to the survival of the business. You need to steer the business, be fully aware of all the forces at work, decide on what forces need a response, can be ignored, or require strategic decisions. The rule of thumb for times of crisis is: I need and insist on hearing the bad news first. Only the captain/CEO can determine what has to be thrown overboard to lighten or make the craft more seaworthy.

Tip #6: This too shall pass.

Nothing lasts forever and this too will blow over. Hard times give you the opportunity to correct the excesses and bad habits that build up when the going has been good for a period of time. Focus employees on cost saving or doing what you normally do for less cost. Hard times sharpen and focus the mind. There are lessons frankly learned in hard times that are greater than when everything is going swimmingly.

Did You Know About Our Software?

60MSP offers an interactive software program that explains the planning process, provides explanatory slides and examples, and enables you to fill out, save, and print your plan in three different sizes (available for Windows^® only). Check out our demo! ( 424 KB)