Strategic Planning Foundations

Question 1

When you run your strategic planning process, you should do it all at once in a multi-day offsite.

FALSE

TRUE

Answer 1

FALSE
Correct

Question 2

The three principles of strategic planning are set direction, say no, and _____.

1. build a great team
2. diversify
3. be ambitious
4. lock up your market

Answer 2

2. diversify
   Correct

Reduce your risk by diversifying the initiatives you pursue.

Question 3

How many forces does Dr. Porter encourage you to use to assess a market?

4

3

5

6

Answer 3

5
Correct

Porter’s 5 Forces are competitive rivalry, buyer power, supplier power, threat of new entrants, and threat of substitutions.

Question 4

When you refine your SWOT, you should identify major _____.

1. strategic themes
2. synergies
3. market shifts
4. competitors

Answer 4

1. strategic themes
   Correct

The SWOT is good for identifying major themes affecting your business.

Strengths
Weaknesses
Opportunities
Threats

Question 4

Goals should be aggressive and _____.

1. precise
2. financial
3. pragmatic
4. short-term

Answer 4

3. pragmatic
   Correct

Your goals should balance high achievement with realism.

Question 5

The best way to generate your vision and mission is for your CEO to write it alone.

FALSE

TRUE

Answer 5

FALSE
Correct

Question 6

What time horizon should you use for setting your vision?

1. 5-10 years
2. 1-2 years
3. 3-5 years
4. 2-4 years

Answer 6

3. 3-5 years
   Correct

3-5 years is generally a good timeframe for strategic planning efforts.

Question 7

Your mission should specify the business you’re in and where you compete.

FALSE

TRUE

Answer 7

TRUE
Correct

Question 8

If an initiative doesn’t rely on either of your core competencies, you should avoid it.

FALSE

TRUE

Answer 8

TRUE
Correct

Question 9

Strategic filters are used for _____.

1. all of these answers
2. screening initiatives
3. staying focused
4. prioritizing opportunities

Answer 9

1. all of these answers
   Correct

Strategic filters focus your efforts, screen projects, and help you prioritize your work.

Question 10

Once you have your prioritization list, you need to:

1. distribute analysis
2. execute all initiatives
3. re-sort the list
4. draw the line

Answer 10

4. draw the line
   Correct

Drawing the line ensures you only work on top-priority initiatives that are properly resourced.

Question 11

Once an initiative owner rates their initiative on the strategic filters, those ratings should NOT be changed.

FALSE

TRUE

Answer 11

FALSE
Correct

Question 12

What rating scale should you use when you apply strategic filters to initiatives?

1. poor, good, great
2. high, medium, low
3. 1 to 10 point score
4. strategic vs. tactical

Answer 12

2. high, medium, low
   Correct

A high/medium/low scale is sufficiently precise to do high-level prioritization.

Question 13

The top right quadrant in a 2x2 matrix should be your _____ initiatives.

1. Priority 3
2. Priority 1
3. Priority 4
4. Priority 2

Answer 13

2. Priority 1
   Correct

The top right quadrant scores “high” on both your evaluation dimensions.

Question 14

Why should you assess your initiative portfolio over time?

1. so you can see how small initiatives today contribute in the future
2. to assess technology risk
3. so you can see how much money you’ll make
4. so the board of directors gets excited and approves your strategy

Answer 14

1. so you can see how small initiatives today contribute in the future
   Correct

If you don’t look at the portfolio’s growth over time, you’ll never invest in ideas that are small today but big in the future.

Question 15

You should define your strategy before you build your organization chart.

FALSE

TRUE

Answer 15

TRUE
Correct

Question 16

Who should run the strategic planning process?

1. the leadership team
2. your CEO
3. a defined process owner
4. consultants

Answer 16

3. a defined process owner
   Correct

One individual should be tasked with running the prioritization process. It doesn’t matter what group they’re in as long as they’re capable.

Question 17

How frequently should you hold your prioritization meetings?

1. semi-annually
2. weekly
3. annually
4. quarterly

Answer 17

4. quarterly
   Correct

A quarterly prioritization meeting strikes a good balance on frequency.

Question 18

How many core competencies should you define to build your strategy?

Select an answer:
1. as many as possible
2. 1
3. 3
4. 2

Answer 18

4. 2

Question 19

What kinds of strategic filters should you have?

Select an answer:
1. short term and long term
2. strategic and tactical
3. operational and philosophical
4. quantitative and qualitative

Answer 19

4. quantitative and qualitative

Question 20

The S” in SWOT stands for:”

Select an answer:
1. strengths
2. speed
3. skills
4. sourcing

Answer 20

1. strengths

Question 21

When you assess portfolio diversification, how many 2x2’s should you use to assess it?

Select an answer:
1. as many as needed
2. 2
3. 1
4. 3

Answer 21

1. as many as needed

Question 22

What do you call it when you don’t invest in your new and smaller businesses?

Select an answer:
1. horizon failure
2. excessive focus
3. starving the kids
4. growth malnourishment

Answer 22

3. starving the kids

Question 23

You should conduct detailed analysis on:

Select an answer:
1. high priority initiatives
2. completed initiatives
3. all your initiatives
4. approved initiatives

Answer 23

1. high priority initiatives

Question 24

Who should you hold accountable for delivering on an initiative?

Select an answer:
1. the team
2. your boss
3. the initiative owner
4. other departments

Answer 24

3. the initiative owner

Question 25

Which of these is NOT an element of setting direction?

Select an answer:
1. mission
2. culture
3. vision
4. goals

Answer 25

2. culture