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13 Cards in this Set
- Front
- Back
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2 approaches to developing a plan: |
Top-Down: management alone decides on missions, strategies and objectives. Instructs employees to achieve the goals Bottom-up: management decides the mission and strategies, employees develop objectives, goals and activities |
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What is the most effective approach to developing a plan? |
Combo of top-down and bottom-up with frequent open communication |
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Pros and cons of top-down approach: |
Pro: management in control of decision making Con: lack of buy-in by employees |
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Pros and cons of Bottom-up approach: |
Pro: employees and business units will be excited by the plan Con: lack of control felt by management, business units may resist changes made by management |
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4 characteristics of a plan: |
1) Simplicity: keep it simple, easy to implement by employees without intense training 2) Practicality: plan should be realistic, the plan will fail if it is impossible to implement. 3) Severability: dissectible plans are easier to execute by individual business units (employees). Business units create goals and activities within the scope of responsibility to help achieve plans. 4) Flexibility: All good plans are flexible, business conditions change, so should your plans. |
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What is the difference between a strategic plan and action plan? |
There are 2 types of plans tied to the brokerages vision, value, and mission statement. Long term ( strategic plan) and Short term (action plan) Strategic plan establishes primary strategies, objectives and goals then allocates human, financial, and other resources effectively. The strategic plan gives direction to the action plan. Strategic plan timeframe is usually between 3-5 years, applied to the entire brokerage and is less detailed. Action plan aims to achieve specific goals and done within the framework of the strategic plan. Focuses on how objectives are achieved. Action plan timeframe is usually 1 year and applies to particular business units or employees. Action plans are more detailed than strategic plans. |
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7 Components of a strategic plan: |
1- scan external environment 2 - analyze internal environment & assess current position 3 - match SW to OT 4 - define corporate focus 5 - develop strategies 6 - develop objectives 7 - setting goals (SMART) |
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How to conduct an external environment scan and what specifically is identified in doing so? |
Creating a successful strategic plan requires scanning the environment in which your brokerage competes. There are 2 aspects to the external environment scan: 1) Distant environment: it is critical to long-term survival; however, the brokerage has no control over, nor ability to influence. Economy, social, demographics, technology, government. 2) Near environment: brokerage may have a degree of influence over. Clients and prospects, target market segments, direct competitors. The main tool used for analyzing is profiling: market profiling: involves identifying analysis and forecasting key marketplace factors. Client profiling: achieves a clear understanding of the nature and characteristics of your clients. |
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How to analyze my internal environment to identify the strengths and weaknesses? |
Evaluate brokerages current level. Understand its competitive strengths and weaknesses. Really know: what does your brokerage do best? Your brokerage strengths not being used? Its competitive weaknesses, strengths in finances, Human Resources, and product line. |
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What information a SWOT analysis will reveal and how to react to it: |
Identify opportunities to capitalize on them, highlight threats to avoid them. |
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How to develop the corporate focus statements, and what their purpose is: |
Create the brokerages vision, value and mission statement. Vision: what target are we aiming for? Value: what values have we used as the foundation of our business? Mission: What is the organization’s purpose of existence |
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How strategies, objectives, and goals flow from the mission statement: |
Strategies are a result of thorough appraisal of SWOT. They are the brokerages long-term ‘battle plan’ and they are explicit and communicated in writing. They facilitate allocation of resources, ensure they provide clear direction, and they bridge the transition from broad-based, conceptual mission to specific objectives, goals, and budgets. Objectives are a thing aimed at or sought. They are more specific and easy to measure. They translate broad mission statements into concrete actions which refines the strategies. Goals are not how the objectives should be accomplished, but what is to be accomplished and by when. Specific, Measurable, Action-oriented (increase revenue by 15%), Realistic (achievable by employees), Timely (completion date or timeline) |
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How to ensure successful implementation of the plan: |
With the plan finalized, the next step is to implement it. 1) Control implementation: (2 major tools used to control implementation) a) implementation program (specific activities are designated to certain individuals and resources. It has a start date and an end date) b) progress report (monitors and evaluates plan) 2) link budgets to strategies, objectives, and goals: - Best financial planning tool is a budget or profit plan - The budget must support the plan including required investments 3) Motivating for implementation: - success of the plan depends on those who create it, and those who implement it |
