Strategic Planning and the

Closely Held Business

Portal to the
Future

I.

(Strategic planning) comes as much out of the

hearts of the principals of the company as it comes
from their heads. It accepts that we dont know
what the future holds yet the resulting strategy
can guide the company in the face of uncertain
internal and external events.
e. Michael Shays, CMC

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Strategic Vantage Point

Altitude
Chronology

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The Business System,

from an operating perspective
The Customer
Front Line Employees
Middle
Management

Upper
Management
Executive
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The Business System

from a strategic perspective
Global Business Realities
Your industry

Your Market

You

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Family and Business: wearing

two hats

Nonbusiness
family
members
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Who is the Customer?

Business

Customer

Business

Family

Family

Business

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Family Owned Business*

Over 24 million businesses. 90% are family owned

57% of GDP of U.S. (87% GDP of nongovernmental entities)
30% per generation survive
Often unidentified, misunderstood,
underestimated, underutilized

A business where a family has strategic control of the business; where the
company provides either wealth, significant income or significant contribution
to the familys identity (Joseph Astrachan)
Copyright 2003 SCA Sunshine

Strategic Thinking
3

1
How do we get
Where are we?
there?
Current Reality
Differentiation

Operating Criteria,
Goals, Strategies

2
Where do we want
to be?
Mission, Vision, Values

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1. The Current Reality

What are the Internal strengths and

weaknesses of the business?
What are the External realities: opportunities
and threats?
Global realities
Industry realities
Market realities

What makes us unique?

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2. What is our Vision for the

Future?

Why do we exist? What is our purpose?

What do we most value?
What is the likely scenario that would
enable us to differentiate ourselves in the
future marketplace?

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3. How will it happen?

What criteria will we use to measure

against our Mission and Values?
What strategies and actions will we take?
Who is responsible?
When do we expect it to be
accomplished?

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The House: How it stacks up

Strategies
Goals

Organizational Structure
Criteria: Rules for
Engagement
Operating Values
Mission, Vision
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Mission:
Why the company exists

Vision:
The future state of the business: what does it want to
become?
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Values
Underlying, agreed-upon assumptions about what is
important
Mission and Vision

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Operating Criteria
Ways in which the organization will behave in accordance with
its values

Values

Mission and Vision

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Structure
Picture of how the organization will be designed to service its
customers. Includes roles and internal service relationships
Criteria

Values

Mission and Vision

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Strategies: Ways in which to reach goals. Activities,

Timeframes, Responsible Parties

Goals:Statements targeting future intentions in areas such as

financial, operational, human resources, communications,
leadership
Structure

Criteria

Values

Mission and Vision

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The Process Step I

Preparation/Data Gathering

Financial
Market
Customer
Employee
Family (if family owned)

Involvement and attendance

Retreat design
Conduct retreat
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The Process Step II

Identify and validate assumptions

Ensure availability of resources

Human
Financial
Technological

Define measurements and process review

Top level timeline
Communicate the Plan
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The End

THANKS!

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Family Strategy

What are the familys values and principals?

How are they realized within the company? Within
the family?
What role does the business play for our family?
What role does our family serve for the business?
What works? Of what are we most afraid?

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Family Strategy, continued

How will we work together most effectively?

What plans do we have for succession?
What expectations do we have of each other? Of
the business?
What criteria will we use to make large strategic
decisions for the business?
How will conflict be managed?
How important is sustainability?
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Glossary of Terms

Core Values: Underlying assumptions about

what is important and how the business views
the world
Operating Criteria: ways in which the
organization will behave in accordance with
its values

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Glossary of Terms

Family Business: A business where a family has

strategic control of the business; where the
company provides either wealth, significant income
or significant contribution to the familys identity
(Joseph Astrachan)

Strategic vs. Operational Planning: Strategic is long

term (3-5 year) planning. Operational planning is
one year planning.
Systems: combination of parts in a whole; orderly
arrangement according to some common law.
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Closely Held: Whats the

difference?
Size of company: revenues/employees
Type of company: family owned/nonfamily owned
Sponsorship, involvement
Process, not delegated
Integrated, whole system discussion

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Challenges

Overlapping, often conflicting interests

Issues are magnified, visible
Resistance can take different forms, surprises
Management can be caught in the middle

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Business Strategy

SWOT Analysis
Differentiation,
competitive position
Vision
Values
Criteria
Goals
Strategies

Family Strategy

Principles and Values

Intentions and Goals
Agreements
Communication
Expectations and roles
Criteria for Decisionmaking

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How it worked

The Founder
The Girls
Sheltered workshop
The family office

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Thank You!

How do you go from

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78 year old founder

$100 Million Chemical Manufacturing
Company
Dad, CEO; Mom, President; Son VPHR; son
scientist
Founder Sabotage
Whats management to do?
Whats son to do? Whats mom to do?
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To:

78 Year old founder

International spokesperson
Author of published articles
Relevant member of senior management
team

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How do you go from

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Three disgruntled daughters

Running a 5 Million wholesale distributor
Attempting to dislodge father, the founder
and claim their promised role

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To:

New Products, New Industry

Co-President Daughters
Dad and Mom leadership resources
Spouses actively involved in the business
Growing business concern

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Strategic Planning

Because
The Question isnt
always the question

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Mission/Vision
Strategic Plan

Customer

People

Systems

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