Strategic Planning Foundations Flashcards
When you run your strategic planning process, you should do it all at once in a multi-day offsite.
FALSE
TRUE
FALSE
Correct
The three principles of strategic planning are set direction, say no, and _____.
- build a great team
- diversify
- be ambitious
- lock up your market
- diversify
Correct
Reduce your risk by diversifying the initiatives you pursue.
How many forces does Dr. Porter encourage you to use to assess a market?
4
3
5
6
5
Correct
Porter’s 5 Forces are competitive rivalry, buyer power, supplier power, threat of new entrants, and threat of substitutions.
When you refine your SWOT, you should identify major _____.
- strategic themes
- synergies
- market shifts
- competitors
- strategic themes
Correct
The SWOT is good for identifying major themes affecting your business.
Strengths
Weaknesses
Opportunities
Threats
Goals should be aggressive and _____.
- precise
- financial
- pragmatic
- short-term
- pragmatic
Correct
Your goals should balance high achievement with realism.
The best way to generate your vision and mission is for your CEO to write it alone.
FALSE
TRUE
FALSE
Correct
What time horizon should you use for setting your vision?
- 5-10 years
- 1-2 years
- 3-5 years
- 2-4 years
- 3-5 years
Correct
3-5 years is generally a good timeframe for strategic planning efforts.
Your mission should specify the business you’re in and where you compete.
FALSE
TRUE
TRUE
Correct
If an initiative doesn’t rely on either of your core competencies, you should avoid it.
FALSE
TRUE
TRUE
Correct
Strategic filters are used for _____.
- all of these answers
- screening initiatives
- staying focused
- prioritizing opportunities
- all of these answers
Correct
Strategic filters focus your efforts, screen projects, and help you prioritize your work.
Once you have your prioritization list, you need to:
- distribute analysis
- execute all initiatives
- re-sort the list
- draw the line
- draw the line
Correct
Drawing the line ensures you only work on top-priority initiatives that are properly resourced.
Once an initiative owner rates their initiative on the strategic filters, those ratings should NOT be changed.
FALSE
TRUE
FALSE
Correct
What rating scale should you use when you apply strategic filters to initiatives?
- poor, good, great
- high, medium, low
- 1 to 10 point score
- strategic vs. tactical
- high, medium, low
Correct
A high/medium/low scale is sufficiently precise to do high-level prioritization.
The top right quadrant in a 2x2 matrix should be your _____ initiatives.
- Priority 3
- Priority 1
- Priority 4
- Priority 2
- Priority 1
Correct
The top right quadrant scores “high” on both your evaluation dimensions.
Why should you assess your initiative portfolio over time?
- so you can see how small initiatives today contribute in the future
- to assess technology risk
- so you can see how much money you’ll make
- so the board of directors gets excited and approves your strategy
- 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.
You should define your strategy before you build your organization chart.
FALSE
TRUE
TRUE
Correct
Who should run the strategic planning process?
- the leadership team
- your CEO
- a defined process owner
- consultants
- 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.
How frequently should you hold your prioritization meetings?
- semi-annually
- weekly
- annually
- quarterly
- quarterly
Correct
A quarterly prioritization meeting strikes a good balance on frequency.
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
- 2
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
- quantitative and qualitative
The S” in SWOT stands for:”
Select an answer:
1. strengths
2. speed
3. skills
4. sourcing
- strengths
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
- as many as needed
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
- starving the kids
You should conduct detailed analysis on:
Select an answer:
1. high priority initiatives
2. completed initiatives
3. all your initiatives
4. approved initiatives
- high priority initiatives
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
- the initiative owner
Which of these is NOT an element of setting direction?
Select an answer:
1. mission
2. culture
3. vision
4. goals
- culture
