Manufacturers, manufacturers’ representatives, and distributors are all wrestling with developing and executing a winning strategy in this struggling economy.

We have found that most strategic planning initiatives result in failure because:

1. Strategy is conducted entirely with inside-out thinking and does not gather outside-in feedback from channel partners.
2. Analytical tools gathering internal and external feedback are not used.
3. There is no execution responsibility and accountability beyond the planning session.
4. Strategic plans are not continually measured and linked to a scorecard system.

A manufacturer recently retained us to help with its strategic business plan process.  They had performed an internal SWOT analysis but ignored gaining external feedback.  And as a result they were focused on the wrong key strategic initiatives.  We conducted confidential market research with their manufacturers’ representatives and distributor partners, facilitated a strategy session and got them focused on the top three strategic initiatives that will result in increased market share.  They are now well on the road to successful implementation.

We also recently held a strategy session with a manufacturers’ representative after conducting market research with all of their principals.  As a result, this month they announced a strategic move to reduce the quantity of lines they represent from 13 to eight manufacturers.  This industry leading decision will allow them to reposition their resources and assets to their premier manufacturers, dramatically increasing customer service, end-user activities, specification and demand creation.

After conducting a customer satisfaction study for a distributor FCG recently facilitated a strategy session and helped create a customer service guarantee program.  It clearly defines their unique value in the marketplace.  Results are in and despite our struggling economy their customers are now rewarding them with increased business.   

Whether you are a manufacturer, manufacturers’ representative, or distributor the following 10-steps guarantee a winning strategy in this struggling economy:

1. Clearly and concisely define your Strategic Objectives – your beliefs, purpose, and aspirations.
2. Conduct confidential External Market Research to determine an outside-in view of your company’s strengths, weaknesses, opportunities, and threats as well as a competitors’ analysis.
3. Conduct confidential Internal SWOT Analysis with every member of your strategy team to gain an inside-out view of strengths, weaknesses, opportunities, and threats.
4. Compile and compare the outside-in and inside-out views of strengths, weaknesses, opportunities, and threats and agree-upon the Top 5 Strengths, Weaknesses, Opportunities, and Threats.
5. Develop Critical Success Factors – the strategic issues critical to the future of your organization.
6. Craft a Strategic Goals Statement to clearly and concisely define the direction of your organization to achieve your strategic objectives.
7. Develop a 3-Year Balanced Scorecard to measure your Financial (Shareholder Value), External (Customers & Markets), Internal (Capabilities & Business Processes), and Learning & Growth (Continuous Improvement) Performance Goals.
8. Identify Top 3 Strategic Initiatives.
9. Assemble Strategy Execution Teams to support achievement of 3-Year Balanced Scorecard.
10. Conduct Quarterly Strategy Execution Team Meetings to review progress and ensure achievement of Balanced Scorecard results.

Start an uncertain 2008 in the right direction by following the above 10-steps to ensure your corporate strategy is a winning one.  And please do not hesitate to call on us for any counsel.