Strategic Planning: Case Study

Client Situation

A leading global aerospace and defense conglomerate with a diverse range of products across multiple business units wanted to streamline and improve its Strategic Planning process. Each business unit had a high degree of autonomy in the performance of its Strategic Planning processes. The client wanted to achieve profitable growth through the improvement of its strategic knowledge. This has led senior management to seek a better understanding of Strategic Planning and the outputs that may differentiate it from its peers.

Alliance was asked to work with the management team to develop an integrated Strategic Planning process and assist in its roll-out to the multiple business units.

Alliance Approach

The joint team followed a five step approach:

  1. Assessment of Strategic Planning process: Using interviews with internal BU’s and benchmark companies, we evaluated current Strategic Planning processes and made recommendations on how to streamline the process
  2. Content assessment: Based on best practices research, we suggested guiding frameworks, which improved the strategic planning content and the accuracy of subsequent forecasting
  3. Resource and manpower allocation recommendations: We ascertained what level of resource allocation should be dedicated to Strategic Planning, based on size, complexity of business, and other factors
  4. Management assessment methodology: We provided a methodology to evaluate the effectiveness of Strategic Planning output, function, and personnel
  5. Follow-up plan: We provided recommendations on effective tools to increase BU and corporate-wide accountability for Strategic Plans

Results and Impact

The new Strategic Planning Process allowed the client to accomplish the following important objectives:

  • Streamlined the Strategic Planning process: focused resources to reduce unnecessary planning work while gaining deeper customer, market, and competitor insights throughout the review process
  • Generated richer strategic content: gathered the appropriate data to generate relevant content and developed more accurate business unit insights
  • Defined Strategic Planning functional role at BU level: outlined functional capabilities needed and specific tasks relevant to Strategic Planning
  • Refined executive review process and grading: achieved a streamlined but effective executive review process with the appropriate frequency, relevant content, and rigorous evaluation criteria
  • Created greater accountability: ensured that Strategic Planning goals are tied to BU leader performance assessments