Strategic Business Review
The Strategic Business Review (SBR) component is the first step when implementing the Planned Innovation® process. The primary issue addressed by the SBR is: "What type and degree of change is required to reach the firm's overall objectives?" The primary output of the SBR to answer this question is a set of Opportunity Selection (Screening) Criteria tailored to the specific firm. This set of criteria is then used to evaluate present results in existing product-markets and select possible new opportunities for that firm.
Two Phases of the SBR Process
The SBR is accomplished in two phases using structured "hands-on" workshops. Conducted by experienced Planned Innovation professionals, the workshops first address broad, overall issues and then progress to the specific information needed to develop the Opportunity Selection Criteria. The review begins with input from top manager(s) and heads of major functional departments, and later utilizes other key personnel with more detailed knowledge regarding specific capabilities, markets, etc.
The First Phase is largely definitional in character, which facilitates more precise communication and sets the stage for the more detailed diagnostic/analytic nature of the second phase. It starts with a review of existing plans and proceeds to clarifying, sharpening and documenting definitions. It also leads to building a strong consensus among functional managers, assuring that all required activities will be in alignment with the chosen objectives. This phase includes the review and restatement as necessary, of five elements or tasks:
1, Mission Statement; 2, Financial Goals for short, medium and long range, identifying future gaps in Sales and Profits; 3, Functional Department Objectives (marketing, production etc);and 4, Critical Issues which must be reached/ resolved to accomplish the firm's Mission, Financial Goals and Objectives; and 5, ReDefining Market Segments as broad Product-Markets using the four-part definition criteria devised by Innovation®..
The Second Phase entails a structured process to generate the necessary qualitative and quantitative detail to construct the Opportunity Selection Criteria. This includes refining the definitions of present and proposed product-markets, identifying the firm's specific strengths and weaknesses relative to competition in existing and proposed new product-markets, and identifying external trends affecting each functional area. The newly constructed Opportunity Selection Criteria, is then tested on both existing and possible new product-market opportunities, and revised as necessary.
Finally, the results of applying the Opportunity Selection Criteria are addressed by making assignments to appropriate management personnel with appropriate allocations of resources. If critical weaknesses or sales and profit gaps are disclosed that cannot be corrected via internal means and resources, additional plans are set to address them by acquisition, joint venture or licensing alternatives. For more information about the Strategic Business Review, please contact us.