In the aftermath of the debt ceiling debate S&P downgrade, the C-Suite has to deal with increased complexity and ambiguity. This webinar delivered basic research and feedback from C-level execs, and offers guidance on utilizing action focused planning to increase competitiveness.
4. Original Study Purpose Determine perceived impact of debt limit debate on general business sentiment Ascertain forward looking expectations of: Revenue trends Hiring plans Fixed asset investment Continuous improvement projects
5. Something Interesting Happened S&P downgrade Stock market crash Market recovery A large amount of bad economic news all at once
6. A Lot of Data Floating About Bad News Housing starts down Consumer sentiment weak Employment gains have been far too slow Import costs up S&P Downgrade Fears of a double dip Good News Shift to multi-family units Consumer spending up Weaker dollar helps export &domestic consumption Energy costs down Lower interest rates Industrial production spiked
7. Two Narratives Being Told “My business looks fairly solid” Fact driven personal narrative Order books holding strong into 4th quarter Cautious optimism about the future “The economy is faltering” Opinion driven global narrative Fear about “them” making a mess of things Waiting for the shoe to fall
9. Survey Set Reached out to thousands of C-level decision makers Responses from 115 Broken into two distinct groups: Pre August 8th August 9th and later
18. Direct Comparison (cont’) Pre S&P Downgrade Continuous Improvement 66% expect increased CI 4% expect decreased CI Worries Post S&P Downgrade Continuous Improvement 61% expect increased CI 6% expect decreased CI Worries
21. Significant Ambiguity Will the economy fall into recession? What happens to commodities? Will the consumer stop spending? Are industrial production numbers a mirage? What about automotive? Where will construction go? Will we have jobs? What about the debt reduction plan? What happens if Europe collapses? Will a slowing China ruin everything? Will energy prices skyrocket? What happens if stagflation returns?
22. Traditional Business Planning Insufficient Chart a single course of action Heavy on outcomes, weak on tactics for implementation Three to five year goals Assume too little Unresponsive to changes in market realities
23. Solution: Action Based Planning Responding to Crisis: Planning and Execution as Competitive Advantage
24. Expectation: Managed Ambiguity Multiple higher-likelihood scenarios Timeline and action driven Heavy focus on next 90 days Well defined future state Clearly outlined assumptions Short term focus on revenue, internal obstacles
25. A Well Managed Business Goals Direction Feedback Objectives Objectives Objectives Action/ Behavior Action/ Behavior Action/ Behavior Action/ Behavior Action/ Behavior
26. Elements, In Triplicate Please Clearly defined future state Small number of achievable objectives Understanding of external threats Documented list of assumptions for success Internal focus on why it won’t work 90 day action plan
27. Plan the Work, then Work the Plan Review weekly Sales activity General assumptions KPI Review monthly Revenue Specific objectives
28. Harness Your Team Small group of leaders who can get things done Define a game plan, playbook for each scenario Fewer meetings, more joint work In God we trust, all others bring data
29. In Review C-suite sentiment has softened somewhat Ambiguity has increased dramatically Traditional planning approaches are too rigid, timeframe too long Action focused planning is a better option Listen to the business Nothing matters more than the next 90 days
31. Need Support?Contact us:Phone: 616.635.2920Email: Andrew@SimplicityPartners.com Responding to Crisis: Planning and Execution as Competitive Advantage