STRATEGIC PLANNING PROCESS Assessment Metrics Situational analysis strategic

STRATEGIC PLANNING PROCESS Assessment : Metrics Situational analysis & strategic assessment, Internal & External 5. HOW DO WE GET THERE ? Tactics and Implementation MISSION ENVISONE VALUES D PURPOSE FUTURE IN There are possible future scenarios in planning process 1 5 -20 YRS 2. WHERE COULD WE BE ? \ Strategic Planning Presentation 1. WHERE ARE WE ? 6. ARE WE GETTING THERE ? 4. HOW DO WE GET THERE ? 3. WHERE DO WE WANT TO GO ? Strategies Links to future vision but shorter time horizon, consider SMART goals

ce an m or erf p l tia en t po HIGH Diversification Product Development 2 Market Growth RISK REVENUE TARGET \ Strategic Planning Presentation THE STRATEGIC PLANNING GAP CURRENT TIME LOW Market Penetration actual progression

FRAMEWORK FOR C nd STRATEGIC ----- PLANNING highly probable events for which there’s already data or evidence, and then work outward. Each section of the cone is a strategic approach, and it encompasses the one before it until you reach major systems-level evolution at your company. D ----N STRATEG Y TACTICS 1 -2 yea SYSTEMLEVEL EVOLUTION VISION rs 2 -5 yea r s 5 -1 0 y ear 3 or yearly timeline, use a cone instead. First identify --- A nce -- IO VIS Instead of arbitrarily assigning goals on a quarterly e vid . E ata nty ai ert - --- ---- \ Strategic Planning Presentation A FUTURIST’S SS -LE -- s 10+ yea rs

FOUR-PHASE GUIDE TO STRATEGIC PLANNING Strategic Issues : Identify strategic issues to address BUILD THE PLAN DEVELOP STRATEGY Mission : Determine your organization’s core purpose Industry & Market Data : Values : Identify market opporunities Identify your core beliefs and threats Use SWOT : Process the SWOT to set priorities MANAGE PERFORMANCE Rollout : Communicate strategy to whole organization Organizational Goals: Set Calendar : Set short-to-mid-term SMART Establish schedule for goals (1+ year) progress reviews Customer Insights : Visions : KPI’s : Assess current satisfaction Create an image of what success Select key performance indicator and future demand looks like in 5 years to track progress Employee Input : Competitive Advantages : Determine strength and weakness Solidity your unique position SWOT : Org. Wide Strategies : Synthesize the data into Establish the approach for how summary SWOT items you will succeed Department Goals : Cascade org. goals to Train team to use new planning tool Adapt Quarterly: Hold progress reviews & modify 4 departments (12 month) Leverage Tools: \ Strategic Planning Presentation DETERMINE POSITION Long Term Objective : Develop a 3 -year balance framework of 6 or less objective Forecast : Develop a 3 -year financial projection Team Member Goals : Update Annually : Cascade dept. goals to individual Review end of year, plan next year Budget : Align a one-year budget with the plan

Ecological and natural issues Economic indicators Global forces Current competitors New competitors Demographic movements Power of buyers Current markets YOUR ORGANIZATION Customers New market Market size Growing or deciding Substitute products Social & cultural shifts 5 Power suppliers or vendors \ Strategic Planning Presentation ENVIRONMENTAL SCAN Competitive rivalry Technology trends

LONG-TERM STRATEGIC OBJECTIVES Our organization’s success comes through strong financial performance from revenue growth and productivity improvements… FINACIAL CUSTOMER/ MARKET GROWTH Productivity Improvement : Annually increase bottom-line …which comes through delivering a great value proposition to our customers… Customer Acquisition : Don’t sell one-off’s; sell groups Customer Retention : Thrive on a culture of intimate customer contact …which is based on managing and enhancing process excellence and organizational effectiveness… \ Strategic Planning Presentation Revenue Growth : Push the topline up PERFORMANCE EXCELLENCE CUSTOMER/ MARKET GROWTH Operational Mgmt. : Increase throughput & quality Product Mgmt. : Enhanced with solid program support Marketing Mgmt. : Build brand awareness …and people are the building blocks of our organization. Human Capital/Competencies : Right people in the right positions Culture of Performance & Accountability : More rigorous attention to business metrics Sales Mgmt. : Solid org. w/ effective leadership 6 PROCESS

STRATEGIC PLAN BY DEVELOPMENT FOCUS To be recognized as the best supplier in the industry KEY OBJECTIVES MARKET DEVELOPMENT INITIATIVES • Review distribution energy KPI Expand regulator market • • • Revenue/Distributor reach • PROCESS IMPROVEMENT Increase customer visits by • • Implement lean process Development/Implement supply chain strategy • Implement personal planning process • • Improve communication • • Percentage turnover/month Increase teamwork PRODUCT DEVELOPMENT • Increase quick-change regulator line • Expand range of QPRO line • New product revenue/month 7 engineers PROCESS IMPROVEMENT \ Strategic Planning Presentation Focus: growing sales revenues Revenue/Month • • Cash to cash days First-Time through percentage month Percentage absenteeism month

RARE? INMITABLE? ORGANIZED AROUND? Competitive Disadvantage Competitive Equality/Party Temporary Competitive Advantage 8 VALUABLE? \ Strategic Planning Presentation VRIO ANALYSIS Unused Competitive Advantage Long-term Competitive Advantage

Invest/Grow THE Selectively Invest/Grow MEDIUM Harvest/Divest MATRIX The GE Matrix, developed by Mc. Kinsey, is similar to the BCG Matrix as a way to make strategic decisions about business units or products. Each product, brand, service or potential product is mapped as a pie chart onto this industry attractiveness or Harvest/Divest Selectively Invest LOW Business Position GE/MCKINSEY business strength space. The diameter of each pie chart is proportional to the Volume or revenue accruing to each opportunity, and the solid slice of each pie represents the share of the market enjoyed by the planning company LOW MEDIUM HIGH \ Strategic Planning Presentation Invest/Grow 9 Selectively Invest HIGH Industry Attractiveness

PESTLE IMPACT MAP LOW Government oversight Unionization Environmental awareness Demographic concentrations Ability to quantify environmental impacts Legal activism Environmental impacts P Government incentive/investment E Favorable US business conditions S T Rising affluence Increasingly busy lifestyles Enterprise resource planning capabilities HIGH Big data and analytics L E MEDIUM \ Strategic Planning Presentation MEDIUM 10 HIGH Recycling advances Low emission vehicles

STRATEGIC POSITION ACTION GRID Conduct a scan of macro and micro trends in your environment and industry (Environmental Scan) WHO IS INVOLVED Executive Team and TOOLS & TECHNIQUES • Planning Team Environmental scan worksheet • • • Web research Customer survey/feedback Force and Customers • • All Staff • Employee survey/feedback Synthesize into a SWOT, Solidify your Executive Team and SWOT worksheet competitive advantages based on Strategic Planning your key strengths Leader • • • Executive team and opportunities and threats Planning Team Clarify target customers and Marketing Team, Sales your value proposition Trade shows Industry reports Customer worksheet Gather and review staff and partner feedback to determine strengths and WEEK 02 WEEK 03 11 Identify market and competitive WEEK 01 \ Strategic Planning Presentation ACTION weaknesses Positioning Map Opportunity Analysis

STRATEGY DEVELOPMENT ACTION GRID Determine your primary business, business Planning Team ( all staff if model and organizational purpose (mission) doing a survey) Identify your corporate values (values) Planning Team ( all staff if doing a survey) Create an image of what success would Planning Team ( all staff if look like in 3 -5 years (vision) doing a survey) Solidify your competitive advantage based on Planning Team ( all staff if your key strengths doing a survey) Formulate organization-wide strategies Planning Team ( all staff if that explain your base for competing doing a survey) Agree on the strategic issues you need to address in the planning process Planning Team TOOL & TECHNIQUES • Executive interviews • Qualitative strategic survey of select staff or all staff • Executive interviews • Qualitative strategic survey of select staff or all staff WEEK 01 WEEK 02 WEEK 03 \ Strategic Planning Presentation WHO IS INVOLVED 12 ACTION

STRATEGIC PLANNING MAP of opportunity and a good AIM 01 standard of living Provide services to vulnerable people PURPOSE AIM 02 Support the needs of the Advocate for the needs vulnerable population. of vulnerable people. VALUE All deserve to have a fulfilling life. With the right support, disadvantage people can have a good quality of life. AIM 03 Objective 1. 1 : Provide food, shelter and support service to vulnerable people. Objective 1. 2 : carry out early intervention for at-risk individuals. Objective 2. 1 : Advocate to government through policy submissions. Objective 2. 2 : Advocate to broader society through media campaigns. Objective 3. 1 : Attract government investment. Raise money to support vulnerable people Objective 3. 2 : Attract investment from private and philanthropic sources. 13 A future where all have equality \ Strategic Planning Presentation VISION

PROCESS MAP WORKING TEAM UNDERSTAND CURRENT SITUATION • Identify strategic issues to address • Identify market opportunities & threats Activities • Form a team to guide • Assess current the development of satisfaction & future strategy demand • Determine strengths & v weaknesses • Synthesize the data into summary SWOT items Timeframes Budget Estimate DEVELOP BUILD THE STRATEGY PLAN • Determine your org. core purpose • Identify your core beliefs • Create an image of what success looks like • Establish the approach for how you will succeed • Identify long term objectives • Develop a financial projection EXECUTE THE PLAN • Process the SWOT to set • Communicate strategy priorities • Set short term SMART goals • Select KPI’s to track progress • Cascade org. goals to departments REVIEW PERFORMANCE to whole organization • Discover concrete tasks to implement the plan • Assign responsibilities to tasks • Execute the tasks • Cascade dept. goal to • Establish schedule for progress reviews • Conduct progress review sessions • Plan performance improvement • Execute improvement individual plans 1 Day 2 Weeks 1 Week 4 Months Ongoing $200. 00 $350. 00 $10, 000 - $100, 00 $50, 00 - $3, 50, 00 $50, 000 - $3, 50, 000 $30, 000 per month \ Strategic Planning Presentation ASSEMBLE 14 STAGES

PLANNING CALENDAR FEB MANAGERS / ALL STAFFS MARCH APRIL Q 1 Quarterly Business review Corporate Level Approval of FY 12 Plan MAY JUNE JULY AUGUST Q 2 Quarterly Business Review Corporate Level SEPT OCT Q 3 Quarterly Business Review Corporate Level NOV Approval of FY 13 Plan Execution DEC Q 4 Quarterly Business Review #4 Corporate Level, EOY Status Report Next Year Planning retreat VP / EXECUTIVE LEADERSHIP BOARD OF DIRECTORS/CEO JAN Strategy Development Q 2 Quarterly Business Review Department Level Exec Interviews Survey Check-in / Update Status of Goals v Q 3 Quarterly Business Review Department Level Review/ Refine Draft FY 13 Plan Q 4 Quarterly Business Review #4 Corporate Level, EOY Status Report 15 Q 1 Quarterly Business Review Department Level \ Strategic Planning Presentation Strategy Assessment Check-in / Update Status of Goals v All Staff Survey Check-in / Update Status of Goals v Check-in / Update Status of Goals