Sample Plan

Smith Construction Company
Strategic Planning Meeting

February18-19, 2005
Chief Operating Office Steve Henderson
Director of Business Development Steve MacDougal
President John Smith
Office Manager / Director HR Michelle Madison
Project Manager Alan Masters
Senior Project Manager Carl Summer
Vice President of Health Care Ralph Dingus
Facilitator Maria C. Birkhead

COMPANY PROPRIETARY

Table of Contents
Summaryof theplan inits currentform
VisionandMission.............................................................................................................................1
Strategy..............................................................................................................................................2
StrategicGoals...................................................................................................................................3
Keyresult measures..........................................................................................................................4
Calendar of actionsteps....................................................................................................................5
Assumptions.......................................................................................................................................7
Teammemberswrittencommitment..................................................................................................8
PlanningCalendar............................................................................................................................10

GettingStarted
MeetingAgenda...............................................................................................................................11
Individual TeamMember'sExpectations..........................................................................................12
Howcouldthemeetingfail? What didyoulikebest about yesterday?...........................................13
Stakeholder Expectations................................................................................................................14

Wherearewe?
Weaknesses.....................................................................................................................................15
Opportunities....................................................................................................................................17
Threats.............................................................................................................................................19
Strengths..........................................................................................................................................21
Trends..............................................................................................................................................23
Other issuesanditems....................................................................................................................25
Wheredo wewantto be?
VisionandMissionStatement
VisionStatement Phrases................................................................................................27
MissionStatement Phrases..............................................................................................29
Strategy
Individual FiveYear Visualizations...................................................................................31
Major market focusfor near, midandlong-term..............................................................32
Major product focusfor near, midandlong-term.............................................................33
Discussions......................................................................................................................................34

Howdo wegetthere?
StrategicGoalswithActionPlans....................................................................................................38
Individual major two- threeyear goals............................................................................................43

Appendices
Definitions........................................................................................................................................44
Potpourri...........................................................................................................................................45
Meet Aliceandher friends...............................................................................................................46
Thelessonof thesixblindmen........................................................................................................47
MeetingRules..................................................................................................................................48
Roles................................................................................................................................................49
Total QualityPlanning..................................................................................................................50
Howtoimplement actionplans........................................................................................................51
ActionPlanInput Form.....................................................................................................................52
Total QualityPlanningChart.........................................................................................................53
TQPPlacard.....................................................................................................................................54

Index tab

Plan Summary

CompanyProprietary Smith Construction Company 2005-2006 Strategic Plan 19 Feb 05 Page 1
Vision and Mission
Vision
Core Ideology Envisioned Future
Core Values Core Purpose Big Goal Description
Commitment
Innovation
Integrity
Strengthening the
fabric of communities
with trusted
construction services
By 2020 we
will be one of
the top five
construction
firms in our
state
Annual revenues will top the
$175,000,000 mark.
Look for the Smith name on
high rises throughout the
state.
The Smith Group will be
known and respected all
over our state for providing
reliable and diverse
construction services.
We will maximize future
growth with a commitment to
safety, quality and innovative
technology.
Mission:
Smith Construction is the most respected specialty construction firmin our state. We
are committed to building with the highest standards of excellence, innovation, and
integrity for our clients.
Building sound businesses and strong communities provides personal, professional,
and spiritual fulfillment.
19 Feb 05

Strategy
Over the long term:
Bythecloseof 2010wewill haveexceeded$70,000,000ingrossrevenuedeliveringaconsistent 33%marginafter
bonusandprofit-sharing. Wewill realizethisgainthroughdiversifiedorganicgrowth. Our growthwill alsobe
augmentedbythecultivationof strategicrelationshipswitharchitectsanddeveloperswithinthecommunitiesweserve.
Our primarymarket will continuetobethemedical arena, andwewill winmoremarket penetrationwithat least two
additional healthcarefacilities. Our renovationbusinesswill increasebyabout 5%.
Wewill diversifyour revenueswithincreasedbusinessinindustrial marketssuchaswarehouses, distributioncenters,
andlight manufacturing.
Weareopentojoint partnershipswhenpartnerswhocanopendoorsfor usor boost our capacityespeciallyif it helps
uslandlarger, morelucrativeprojects. Whenscreeningpotential partners, weplacethehighest priorityonthe
preservingoneof our most preciousassets, our reputation. Wewill onlypartner withthosewhoshareour values, and
thenonlywhentheir goalsalignwithour goals.
Wewill expandgeographicallytoincludea120mileradiusof themetroarea, andwewill entertainopportunityoutside
thoseboundariesfor clientswithwhomwehavealreadyestablishedaprofitablerelationship. Weanticipatestaying
withinour state.
Wewill manageandsupport our growthwith80highly-trainedemployees, all qualifiedfor their jobs. Wewill achieve
thisthroughvastlyimprovedrecruitment, retentionandcareer development programs. Eachemployeewill beprovided
withaclear set of expectationsfor performancetomatchjobresponsibilities. Acarefullycraftedemployee
review/coachingprocesswill ensuremaximumproductivityandretention.
Our organizational structurewill support our growth. Leadership/management skillswill beemphasized. Our
management development processwill ensureinternal promotionandsuccessiontokeeppacewithour growth. Upper
management will delegateresponsibilitiestoanewlycreatedmid-management level tofreeuptimefor strategic
issues.
Wewill add3morelocationsfor atotal of 4satellites, eachwithasmall number of employeesdependent uponneed.
Example: Project manager, aSuperintendent, 4Carpenters, and2Laborers.
Technologywill playasubstantial roleinour abilitytoachieveour goals.. For example, company-wide, wewill haveIP
phonesystemsthat will alloweveryonetobereachedwherever their worktakesthem. Awebbasedproject
management softwarewill facilitateproject trackinginreal timeonlocationtoreduceexposureandriskandincrease
efficiency. Wewill haveafull timeITpersononstaff tofacilitatetheseandsimilar advancements.
Wewill raiseour profilewithmorerecognitionof our logo. e.g. associationwithspecificprojects. Our existingbranding
will beamplifiedstatewide.
Over the mid-term:
ByAugust 2006, wewill havediversifiedour client basefor maximumrepeat businessbywinningadditional business
inour current marketsandinonecompletelynewmarket arena.
Our organizational structurewill havebeencontinuallymonitoredandupdatedtomeet theincreaseddemandof our
plannedgrowth. Thecompanysjobmixwill bere-definedandjobdescriptionsupdatedinalignment withclearly
documentedlevelsof responsibilitiesandrequiredcompetenciesfor eachjob. Wewill invest inthesuccessof our
employeeswithcareer andleadershipdevelopment programs.
Our processesandsystemswill havebeenstreamlinedandstandardizedfor maximumefficiency.
Everyoneinthecompanywill knowabout our vision, valuesandgoals, andeachpersonwill understandhowto
contributetoour futuresuccess
Wewill sustainthemomentumof our strategicplanwithanongoingteameffort toexecuteandtrackour actionplans
for maximumresults.
19 Feb 05

Goals

1. Diversify client base for maximum repeat business. Steve MacDougal
2. Invest in career development program. Michelle Madison
3. Create infrastructure to support growth. Ralph Dingus
4. Standardize systems and processes. Steve Henderson
5. Maintain the momentum of the strategic plan. John Smith
19 Feb 05

Key Result Measures

1. Diversify client base for maximumrepeat business. Steve MacDougal
1.1 We have won work in at least two additional health care systems. STEVEM
1.2 We have won work with at least two newdevelopers. STEVEM
1.3 We have won work with at least one private institution. STEVEM
1.4 We have entered into at least one newmarket arena. STEVEM
1.5 We have leveraged relationships with our employees for maximumreturn. STEVEM
1.6 Superintendents and Project Managers have taken ownership of our marketing plan.
STEVEM
2.1 Existing career development programindustry resources have been identified. MICHELLEM
2.2 We have a tailored leadership development training programfor personal growth and
evaluation purposes. MICHELLEM
2.3 We have developed leadership categories based on technical skill sets availability.
MICHELLEM
2.4 We have web based training programs. MICHELLEM
3.1 Annual organizational charts have been developed that project 4 years out assuming an 8-
10%growth rate. ALANM
3.2 There are defined job descriptions for all positions on the organizational chart in January 2006.
ALANM
3.3 The stair step systemis linked to reviews for PMs, assistant supervisors, supervisors and
carpenters. ALANM
4.1 The accounting process has been reviewed and recommended changes made. STEVEH
4.2 Project management process controls and procedures have been implemented. STEVEH
4.3 The archive library is up and running, fully functional, and centralized. MICHELLEM
4.4 Website tools providing employee back-door assistance are fully functional. MICHELLEM
5. Maintain the momentumof the strategic plan. John Smith
5.1 We complete all Key Results Measures in spirit as well as measure. JOHNS
5.2 The strategic plan has been clearly communicated at all levels. JOHNS
19 FEb 05

Calendar of Action Steps
ActionSteps
19Feb05
Accountable
Person
DueBy
Date
Status
5.1.1 Makesureproject managersareincludedindevelopment andimplementation SteveH Ongoing
4.2.1 Draft dailylogsonweb SteveH Daily
5.3.1 Championsshowplantoadvisoryboardfor feedback JohnS 02/28/05
3.1.1 Createjobmixanalysisreviewthelast ?years Alan 03/23/05
4.1.1 Accountingcommitteecompletesits3
rd
meetingonsystems BradG 03/23/05
5.1.2 Meet withchampionsmonthly JohnS 03/23/05
5.2.1 Fridaymorningmeetingwithproject managers JohnS 03/23/05
2.1.1 Contact member association(AGC/ABC) withregardstocareer development
programs
Michelle 03/23/05
2.1.2 Contact other contractorstogarner career development programinformation Michelle 03/23/05
2.2.1 Evaluate/determineupper list MichelleM 03/23/05
4.3.1 Determinepotential archivelibrarycontents MichelleM 03/23/05
4.3.2 Determinelocationof digital file MichelleM 03/23/05
3.2.1 Determineimmediateneed/jobtofill first RalphD 03/23/05
3.2.2 ReviewexistingworkloadwithSteveHandAlan RalphD 03/23/05
4.1.2 Makespecificrecommendationsfor changestotheaccountingprocess SteveH 03/23/05
1.6.1 Developoutlineof anInternal businessdevelopment plan SteveM 03/23/05
1.1.1 Develophealthcaresystemstarget list withJohnS, andRalphD StevewH 03/23/05
4.4.1 Websitetoolsprovidingemployeeback-door assistanceareon-line Richard
Mishee
04/01/05
3.1.2 Combinejobmixwithprojectedorganizationchart Alan 04/23/05
4.1.4 Schedulemeetingwithsoftwarereptomeet andreviewexistingadditional
accountingmodules
BradG 04/23/05
4.2.2 HaveCarl reviewsuper manual tolist all actionitems onadaily, weekly, monthly,
byjob
CarlS 04/23/05
2.1.3 Contact trainingcompanies- outsourcedresourceswithregardstocareer
development programs
DawnS 04/23/05
1.5.1 Solicit list fromcompanyof current contactstoenableustoleveragerelationships
withour employeesfor maximumreturn
MichelleM 04/23/05
2.4.1 Determineweb-basedtrainingprogramtechnical capabilitiesof industrywhatsout
there
MichelleM 04/23/05
4.1.3 Formcommitteetomeasurehumaninput andprocesswithregardstoaccounting
processes
SteveH 04/23/05
1.2.1 Schedulefirst meetingsfacetofacewitheachof thedevelopersonthetarget list SteveM 04/23/05
1.3.1 Developtarget list of potential privateinstitutions SteveM 04/23/05
1.3.2 Distributeour marketingmailer topotential privateinstitutionsshowingphotosof
privateinstitutionproject
SteveM 04/23/05
1.4.1 Developalist of potential newmarket areas SteveM 04/23/05
1.6.2 Present approvedoutlineof Internal businessdevelopment plan toProject
Managers
SteveM 04/23/05
4.4.2 Get Expedite9.1online JohnS 05/01/05
3.1.3 Createactual organizationchart withRalph Alan 05/23/05
3.3.1 Definestair stepdefinitionsfor eachdiscipline AlanM 05/23/05
4.1.5 Accountingcommitteepresentsfindingstodateonsystemchallengesandthenext
evaluationprocess
BradG 05/23/05
5.1.3 MeetingwithMyrnaAssociatesquarterly JohnS 05/23/05
5.2.2 Planandupdatesthroughnewsletter JohnS 05/23/05
4.2.3 Evaluatewebexpedition LukeJ 05/23/05

2.1.4 Evaluate/determineneedtodevelopnew career development programwith
CarlS/COO
MichelleM 05/23/05
2.2.2 Evaluateleadershipdevelopment trainingneedsusingorganizational chart with
RalphDandAlanMasters
MichelleM 05/23/05
2.2.3 Createimplementationqualificationstandardsfor leadershipdevelopment training MichelleM 05/23/05
2.2.4 Developleadershipcategoriesbasedonevaluationof programavailability MichelleM 05/23/05
2.2.5 Developleadershipcategoriesbasedontechnical skills MichelleM 05/23/05
2.3.1 Evaluateexistingemployeeskill setswithJ. SpitzandMarrS MichelleM 05/23/05
2.3.2 WorkwithAM/05RDtoevaluateskill set needed(jobmix) MichelleM 05/23/05
2.3.3 Createqualificationstandardsfor leadershiptraining MichelleM 05/23/05
2.4.2 Developbackdoor meansof web-basedimplementationfor training MichelleM 05/23/05
4.3.3 Completetheactual archivingof filesdevelopimplementationplan MichelleM 05/23/05
3.2.3 Reviewexistingjobdescription, formcommittee RalphD 05/23/05
3.2.4 Input newjobdescriptionsaddedbyorganizationchart RalphD 05/23/05
3.3.2 ReviseexistingreviewsheetswithAlanshelp RalphD 05/23/05
3.3.3 Combinestair stepintonewreviewprocesswithAlan RalphD 05/23/05
4.2.4 Meet withproject managerstodiscusssupervisorsweaknesses, discuss/define
actionitemsfor improvements
ScottA 05/23/05
1.1.2 Completefirst roundof initial contactswithhealthcaresystemstargets(10-20) SteveM 05/23/05
1.1.3 Present JCAHOprogramtoour healthcaresystemstargetedprospects SteveM 05/23/05
1.2.2 Present at least onenewdeveloper project SteveM 05/23/05
1.2.3 Completetrainingonconstructionissuestheyneedhelpwith SteveM 05/23/05
1.3.3 Becomebidder ononeinvitedshort list of privateinstitutionproject SteveM 05/23/05
1.6.3 Present approvedoutlineof Internal businessdevelopment plan to
Superintendents
SteveM 05/23/05
5.3.2 Championsupdatesplanat eachmeetingbyeachchampion(every120days) JohnS 06/23/05
5.2.3 Teambriefscompanyat summer partyonoverall plan, championsdoabrief
presentation
JohnS 07/23/05
2.4.3 Communicatenewwebbasedtrainingprogramsystemtoemployees MichelleM 02/19/06

Assumptions
1

1. We will continue to serve Boomer.
2. This team will still be here.
3. The marketplace is still viable.

An assumption is a temporary but careful estimate regarding
some probable development that will have a major impact on a
company, which cannot be predicted with accuracy and over
which you have little control.
19 Feb 05

Team Members Written Commitment


Planning Calendar

Share results with company distribute mission and goals February 30, 2005
Publish plan with revised action plans March 9, 2005
Action step updates built into teammeetings March 9, 2005
Action steps reviewed at team/review meetings Monthly
Review and revise plan (full day meeting) May 2, 2005
Review and revise plan (full day meeting) date tentative August 19, 2005
Review and revise plan (full day meeting) date tentative November 20, 2005
Annual two day planning meeting for 2006 strategic plan date
tentative
February 17, 2006
February 18, 2006

Index tab

Getting Started

Meeting Agenda
First day
1. Opening Remarks
2. Meeting Ground Rules and Roles
3. Meeting Expectations
4. Strategic Planning Process
5. Stakeholder Expectations
6. Consolidate Weaknesses, Opportunities, Threats and Strengths
7. Analyze Trends
8. Develop a Vision and Mission
9. Develop a Strategy

Second day
1. Review first days progress
Vision and Mission Statement
Strategy
2. Discuss and prioritize Critical Issues
3. Identify Strategic Goals
4. Develop Strategic Goal Action Plans
Champion and Co-champions
Key Results Measures
Action Steps
5. Develop Implementation Management Process and
Planning Review Calendar
6. Review and Evaluate Meeting - Personal Commitments

Team Members' Personal Expectations
(PlanningMeetingInput)

A discussion of strengths weaknesses opportunities and threats that will produce a
unified and specific set of goals and objective for our corporate fulfillment.
An agreed upon vision for the company for the next 5 years. Development of short and long
termgoals for the firmthat are assigned to individuals to champion the efforts and those
goals are reviewed measured and adjusted so we can meet our vision.
Identify vision/goals for next 1-5 years. Identify areas that would hinder achieving these
goals. Discuss in detail howthose areas can be changed or eliminated.
Layout a useful plan for the next 5 years that management believes in and will work to put
in place and management will report on regular basis (quarterly with) the Advisory Board
to make sure we are persistent in following the 5 year plan.
My hope is that we can come to agreement on what direction the company should go and
the best way to get there. To develop a clear and concrete goal strategy that will focus the
company with renewed impetus toward increased revenues efficiency and purpose.
The main event for will be to find out where I fit within the company as to my goals and
strengths. Our company is growing larger and larger I feel that it may not be under
complete control. I have been with this firmfor the past 15 years and I my plan is to retire
fromthis company. I want it to be the best it can be. I would like to stop working 10 to 14
hour days.
To lay out key elements of howwe want to get to our 5 year vision. Put those goals and
expectations down with clear direction on who's to do what and when. To be able to visit
those goals at pre-determined times for accountability and redirection purposes. To have
free and open discussion of the issues we face or will be facing with input fromeveryone
without fear.

How could the meeting fail what did you like best?

First day (Howcould themeeting fail?)
If everyone is not involved in the process
If we are not honest with ourselves about what we lack and what we need to do that is
best for the company.
If we create a plan that we cant or wont or dont implement.
If we do not fully understand our visionif the picture is not clear we will not knowhow
to get there.
If we dont take ownership of the plan
If we keep silent or fail to commit to action out of fear of failure
If we take things personally when the discussions get sensitive and we shut down
Second day (What did you likebest about yesterday?)
Liked all of it, and the systems discussions and the visioning
Liked and was impressed with howwe got through the agenda, howgood is was to
hear the individual visionsfind out where everyone is coming from. We are ready to
put it all together
Liked seeing our success as a company as a teamthe unity of the team
Liked the core value, core purpose and mission discussions
Liked the sheer volume of ground we covered
Liked the stair-step authority/responsibility method
Liked the visioningseeing the different perspectives and thoughts come together

Stakeholder's Expectations

Customers
Qualityemployees / relationships
Competitive price
Consultative help them solve their business problem. I.e. to assist them create value.
Quality, timely, innovative, product.
Employees
A ladder for growth
Good wage
Job security
More structure
Funandsatisfaction.
Recognition
Sourceof pride.
Shareholders (Owners)
Increasing value - Return on Investment better than a 5% T-bill or mutual funds 11%.
(Given the risk at least 13%)
100% effort.
Leavingalegacy
Lessfirefighting.
Satisfactioningrowingabusinessandseeingothers inthecompanybesuccessful.
Vendors
Get paid on time. Financial stability.
Growthseemorebusinessfromus.

Index tab

Where are we?

Weaknesses (consensus)

1. Uncontrolled growth without infrastructure support
2. Employees strength/caliber limited
3. Lack of integrated standardized systems
4. Lack of diversification of client base
5. Lack of defined goals

Weaknesses

1. Career paths
2. Clarian staffing/depth
3. Completion on time
4. Estimating Depth
5. Flexibility and the ability to shift markets.
6. Integrated or standardized operating procedures.
7. Internal controls
8. Lack of defined goals. Lack of strategic planning and goal setting.
9. Lack of unity among employees/leadership
10. Market change in health care
11. NewMarkets
12. No company wide systemization
13. Poor training programs
14. Project Management Depth
15. Quality control.
16. Quality Hires. Shortage of great people. Lack of experienced personnel. The ability to
react quickly to increased manpower needs (qualified persons). Under staffed in positions
such as project supervision and estimating. Spending money to get good people. Using
weak employees (warmbodies).
17. Reliance on 1-2 key clients.
18. Tom's concentration on perfection
19. Uncontrolled growth or growth without support.
20. Unstable computer systems.
21. Very little supervision of key management employee's

Opportunities (consensus)

1. Management restructuring to gain time
2. Additional health care networks
3. Technology/technical training
4. Showing more interest in employeesrecognition
Long term
1. Commercial development
2. Religious connections

Opportunities

1. Daily logs to office on weekly basis
2. Equipment and software upgrades.
3. Expedition training
4. Give existing management more time to manage in lieu of putting out fires
5. Hire project manager for Boomer
6. Hiring someone with Const. Mgmt. (Advisory) experience
7. Joint ventures
8. More company mtgs (super/pmto reinforce company's integrity
9. Newaccounting software
10. Newbus. dev. person
11. Other healthcare networks
12. Raised profile w/in commercial development community.
13. Raised profile w/in healthcare community
14. Raised profile w/in pvt. education community
15. Religious connections
16. Restructure existing management teamor add middle management
17. Scan all Record Drawings
18. Showemployee's that they are needed
19. Training on current project management software.

Threats (consensus)
2

Strictly speaking these wouldnt put us out of business in only 90 days but
would be truly character building:
Loss of Boomer
Loss of John

2
Wechosetomoretightlydefinethreatsasitemsthat couldusout of businessinthreemonths.

Threats

1. Burnout of Boomer staff.
2. Employee burn out and quit
3. Liabilities associated with safety
4. Losing healthcare clients (Boomer).
5. Loss of a key employee/owner. Loss of key employees to other companies. Loss
of key owner (Tom). Loss of Beth Tarkowat Boomer.
6. Moratoriumon healthcare construction. National Healthcare reform. Changes in
healthcare policies.
7. Profitability continuing to decline
8. Rising material costs

Strengths (consensus)

(all equal)
Financial Standing
Leadership
Reputation

Strengths

1. A level staff and management. Dedicated staff. Key leadership. Quality
employees. Strong upper level management. Top employees.
2. Church work. Faith factor.
3. Debt free.
4. Existing client relationships
5. Experience in Healthcare work. Healthcare experience. Knowledge of
Hospital/Healthcare construction. Our knowledge of medical field.
6. Financial Condition. Financial strength of the company. Strong financial position
(lack of debt).
7. Good Morals.
8. Great backlog of work.
9. Opportunity to make strong hires.
10. Over all personal experience.
11. Repeat Clients. Strong repeat client base.
12. Reputation. Reputation in community. Respected name within the industry.
13. Standard of perfection.
14. Subcontractor relationships
15. The track record Smith construction.

Trends (consensus)

Trend Upside Downside
1. Medical market growing
duetoagingpopulation
Moreworkbigger piemore
demand, moreprofit
Competitionincreasingleadingto
thepotential for reducedprofits
2. Technology
changes/advances
Requiresconstructionto
accommodateinmedical facilities
Difficult tokeepcurrent, maintain
expertisecant alwaysbudget
earlyenoughintheprocessto
ensureenoughprofits
3. Doctors issues suchas
government control,
taxes, litigationandrising
cost of healthcare
Requiresnewbuildings Potential threat of Certificateof
Need

Trends

1. Boomer Health Partners
2. Construction Management in the public sector
3. Developer
4. Employees who are trained well to use newhigh tech equipment
5. Expansion of developer driven retail commercial medical facilities
6. Gov. entities negotiating CMservices.
7. Healthcare demands continues to grow. Healthcare reimbursements. Regional
healthcare expansion. Growth in healthcare construction. Technological changes
in healthcare.
8. Increased use of computers in all offices
9. Institutional
10. Internet
11. Major city development - Channel Life Sciences
12. Margins in Construction
13. More competitive bidding in the healthcare market.
14. Negotiated work and Design/Build
15. Private developer markets.
16. Relationships with A/E firms
17. Religious. Religious and 501c3 partnerships with for profit entities. Growth in large
church construction.
18. Retail
19. Slowdown of existing development clients.
20. Subcontractors going under.
21. Top management changes with our clients
22. Web-based technology

Other issues and items (consensus)

1. Safety ManagementCould possibly still be outsourced, even when
we reach $70M. Need to monitor and adjust with growth
2. Unionization of BoomerA potential threat and one more reason
diversification is critical to our enduring success
3. Accounting programBenefits must be equal to or greater than the
required investment

Other issues or items to consider:
(Planning Meeting Input)

1. Creation of a company death plan for the owners
2. Educate our trainers
3. Employee retention
4. Financial controls
5. Future stock holders
6. Hire more qualified employee's
7. Increased Overhead
8. Opening up company ownership
9. Stop employee burn out

Index tab

Where do we want to be?

Vision Statement Phrases
CoreValue

Innovation Commitment Integrity
Innovation Customer satisfaction Integrity
Innovation Excellence Integrity
Innovation Quality Integrity

CorePurpose
Abetter community throughinnovativeconstruction
Achievecustomer satisfactionandpromoteemployeewell-beingandprovidequalitybuildings for a
better community
Achievecustomer satisfaction oneachandeveryproject
Bearespectedleader inconstructionindustry
Buildingcommunity throughqualityspaces
Buildingquality relationships
Constructingthefabricof acommunity
Engageemployeegrowthinafamilyatmosphere
Provideextraordinaryservicetoclients
Supportingcommunity throughbuildingvision

Big HairyAudacious Goal BHAG

10years- $150Manddiversifiedintoaminimumof 2other groupse.g. ArchitectureandMaintenance
Beinthetop8intheour regionmultipletower cranejobs
Bethepremier constructionfirminIndiana
HighRise=$100M
Medical =$100M
Top5constructionfirms inIndianain10years
Within10years, have$100Minrevenuesayear withour ownin-houseArchitectureandMaintenance
Departments

Vision Statement Phrases
CoreValues
Consistent quality construction
Continuity.
Highlevel of quality/customer satisfaction.
Innovation. Innovation.
Integrity. Integrity. Integrity. Highlevel of integrity. Honesty withclients andsubcontractors.
Reliability
Respect for it's employees.
ServicetoClients
CorePurpose
Achievecustomer satisfaction employeewellbeingandinvolvedincommunityneeds- toovague??
Buildqualitybuildings ontimeandwithinbudget
Professional - 2.Personal - 3.Spiritual fulfillment
Provideour clients withthebest facility for afarecost anddeliveredontheclientstimetable.
Providingintelligent high-qualityconstructionfor maximumclient satisfactionandprofit
Tobearespectedleader intheindustryandcommunity throughextraordinary servicetoit's clients
dedicationtothegrowthof it's employeesandthecommitment tothefamily business concept.
ToBuildSafe/05Quality Projects
Big HairyAudacious Goal - BHAG
$100millionrevenuemark 100employees
Becomethepremierehealthcareconstructionfirminour state.
Expandoperations intosurroundingstates.
Growingthecompanytoatop8companyinour stateandremainprofitable
Moveintothedevelopment market
Tobethesizeof BigConstructionGuys

Mission Statement Phrases
Who wewant to be
Integrity General Contractor, Respected Leader,
Honest, Quality, Profitable, Always following up and keeping your word
Branded, integrity, trusted, respected, reliable
World class builder, Known for design/build construction
What wewant to do
Satisfy customers, programmanagers, delivery of safe projects
Build quality buildings, construction services, commit to excellence
Invest in quality, people and systems, training employees
Who wewant to do it for
Clients who share our values, recognize value, Honest owners who have integrity as well
Employees, Medical clients, the state of IN, Quality clients, Private institutional, Bldg. owners
Relationship oriented owners
Why wedo it
To create/build a better society/community and make a profit.
To be proud of the final product
Career opportunities for employees
Profit
Because it is the right thing to do and it needs to be done
To build strong business and community
Personal, professional, spiritual fulfillment

Individual Company Mission Statements
Who wewantto be
Acompanythat isknownfor itsprofessionalism
Awell organizationallystructuredconstructionfirm.
Anethical contractor servingasatrustedteammember for theowner
Highest qualityserviceprovider intheindustry
LeadingGeneral Contractor
Respectedleadersintheindustry
Themost reliableGC/CMinIndianapolis
Whatwewantto do
Bethebest ConstructionServicesprovider inCentral Indiana
Completeprojectsontime withinbudget haveasatisfiedclient whiledoingthisinanorderlyfashionwithminimum
unknowns
DevelopmoreMedical relatedwork
Intelligent Innovative High-QualityConstructionServices
Meet andexceedour clientsneeds
Providehighest qualityconstructionservicesavailable
Providethehighest qualityof servicetoour clients.
Who wewantto do itfor
ExistingandfutureClients. Our clients.
Owners/05decisionmakersof professional valuedrivencompanies
OwnersandDevelopersthat want toworktogether asateam
Ownerswhopayontimeandappreciatethevalueof our services
Privateclients
Repeat or longstandingclients.
Whywedo it
Becauseit theright thingtodo
For Professional Personal /05Spiritual fulfillment
Prestigeandthepleasureof achievingsatisfaction.
Provide career opportunitiesfor our employeestoprosper andmaintaincontrolledgrowthof thefirm
Toaddvaluetotheoverall communitiesweservice.
Tobeoneof thetopconstructioncompany'sincentral Indiana
Tobeprofitablewhilemakingadifferencewithinthecommunity.

Individual Five Year Visualization
80 employees including 15 project managers annual revenue of $70-75 Million. Increased
middle management teamof Sr. PMs general super etc. Maintain profitability. Improved
internal controls. Develop 3-4 newclients. Gain experience in another market or two-light
industrial tilt-up etc. Become web based internally.
Five years fromtoday I would like to see us performa solid $55 million yearly. I would like
to see more market penetration into other healthcare facilities - like Community Hospitals
and St. Vincents. I would like to see us doing more diversified projects in other
construction markets i.e. instructional and commercial. I would like to see us handling
larger ($10-20 million) projects more than one at a time. I would like to see current
personnel trained for long termpromotion opportunities fostering the loyal employees we
already have into the leaders we will need tomorrow. I would like to see a defined
company goal/direction in which all employees can invest. I would like to see a
streamlined company-wide systemization of all processes - paperwork purchasing
administration.
I would like to see the company strategically grow- in a controlled environment at a rate of
10 to 15%per year. I'd like it to have sales of $55 Million in a diversified market including
some industrial/warehouse work. Maybe have a metal building component. Would still like
to stay with a territory central to our state. Employee base of around 65. Diversify our
Healthcare operations to not rely so heavily on Blueface and Boomer. Froma technology
standpoint the only thing I could see us adding is an IP phone network as long as high
speed internet is available at jobsites at a lowcost. I don't see adding branch offices
unless we get ingrained at a large user site similar to Boomer Health Partners. Don't see
any mergers or acquisitions in this time frame. Would like to see a level of upper
management in place to free me up fromthe mundane day-to-day operational issues.
Steve is excellent with this. Need to look at what areas we need to growthis upper and
middle management to and howto handle the overhead to remain lean.
In 5 years I would to see a more Health care work taking place like that at Boomer with at
least (4) different Hospitals. Both at the Large capital levels and maintenance. Total sales
some where between 50 to 60 million. I would like to see the company become more
standardized in project cost control forms and accountability of projects.
Relatively modest growth both financial and headcount. Well established training
programs Implement technology that will help growth beyond 5 year period.
Sales 48 to 50 Million Add possibly industrial retail /05 or Big Box construction Products
none Location same as nowunless an existing client wants us to travel. Head count 65.

Market focus (consensus)

See the Strategy on page 1
Major market focus

1. Big Box
2. Commercial. Commercial. Commercial Retail.
3. Developments
4. Financial Institutions
5. Healthcare. Healthcare. Healthcare. Healthcare. Healthcare. Healthcare.
Healthcare.
6. Industrial
7. Institutional
8. Institutional / Commercial
9. Light Industrial
10. Multi-housing/Retail
11. Office
12. Religious. Religious. Religious. Religious. Religious. Religious institutions.
13. Renovations
14. Retail

Product focus (consensus)
See the Strategy on page 1
Major product focus

1. Construction Management. Construction management. Construction management
as constructor. Construction management newconstruction. Construction
services.
2. Design /05 Build services. Design Build. Design/Build.
3. General Construction. General construction services.
4. General Contracting
5. Healthcare maintenance work
6. Marketing top Developers
7. Newhospital or Medical clients
8. Plant Maintenance
9. Pre-construction services
10. Renovation
Acquisitions we should consider
1. Additional Joint Venture projects
2. Another Joint Venture.
3. None. None. None
4. Small possibility of small firmthat could assure a specific client

Discussions
Howshouldwesolvetheemployeecaliber issue?
Attract andretainexperienced, talentedpeoplewithagoodworkingenvironment andgoodbenefits
Createsystemsthat support productivity
Defineexpectationsof jobs
Helptheright peopletotheright seatsonthebusThisstartswithanorganizational structure
Implement acareer development processtofoster fulfillingworkwithopportunitiesfor eachemployee
Obtainmethodstograde/analyzestrengthsfor recruitment
Providetraining
Utilizeastructuredprocessfor advancement/leadershipdevelopment
Wewill commit toinvestinginour peoplemorecoaching, mentoring, anddevelopment.
Whataresomechanges weneedto beawareof withBoomer thatweneedto beawareof as weplan?
Their cultureischanging. Loyaltyisnot suchapriority.
Wedont haveenoughA guyssowecant alwaysgivethemwhat theywant
Withtheexceptionof maintenance, theyarespreadingtheworkaroundmore.
Weneedtodiversifyour medical businesssothat if our Boomer businessdiminishesor goesaway, wewont take
suchabighit.
Howwill weredistributeour revenues for maximumprofitabilityandminimal risk?
Client Current % of Business Ideal % of Business
Boomer 23% 20%
Stonegate 29% 25%
One- TimeProjects 48% 25%
NewHealthNetworksandDevelopers 0% 25%
Misc., schools, banks, churchesetc. 5%
Whataboutour workis mostmotivating? Whatarewepassionateabout?
Thechallengesof ahugeproject
Thelegacyof abuildingthat peoplecanuseandwecanbeproudof for alongtime
Theprideof contributingtocommunityfor people

Whatrevenuedidtheteamwantto seewithinfiveyears
Revenue Rationale
$120,000,000 Potential growthwitha25to30%increaseinA guys
$75,000,000 Good, steadycontrollablegrowthandof our 10year BHAG
$65,000,000 10to15%growthper year andbecauseSteveMacDougal will focusonmarketingproactively
$64,800,000 About 10%growthper year
$60,000,000 Controlledgrowth
$55,000,000 Controlledgrowthbasedonour #of Project Managers
$54,000,000 5years@8%annual growth
$70,542,857 Average

Wesettledon$70,000,000
Decisionmakingapproaches
Therearethreedifferent decisionmakingapproaches
Unilateral
Participatory
Consensus
Weneedtomakesurethat weusetheappropriatedecisionmakingprocess, that weareclear toeveryonewhat
processweareusing, andaccept theconsequencesof eachapproach.
Whatarethefour go ahead questions for anyproject?
Isit real?
Canwedoit?
Canwewin?
Isit worthit?
If wecant believeayesanswer for all four questionsweshouldnt doit.
Context
Everyemployeerequiresacontext for their work. Lackinginput frommanagement, eachemployeewill tendtocreate
averynarrowdefinition. Thisisillustratedbyaclassicstory. Anindividual cameacrossthreepeoplediggingona
buildingsite. Onebyone, theindividual askedwhat eachdigger wasdoing:
Thefirst mansaidhewasworkinguntil 5pmwhenhecouldpickuphispaycheckandgohome.
Thesecondmansaidhewasdiggingaditch.
Thethirdmansaidhewasbuildingacathedral andpointedtoalargepictureof thefinishedstructureona
billboard.
Whichemployeewasthemost satisfied? Whichemployeedidthebest work? Now, supposetheythreediggers
suddenlyhit sand? Thefirst twodiggerswill continuetodigwhilethethirdwill immediatelycontact management since
herealizesthat youcant buildacathedral onsand.
Just imagineif wecouldcreateavisionof our cathedral for all our employees. Just imagine.


Strategic planning is a simple matter of looking
Where are we established by surfacing and understanding our current issues through
discussing and prioritizing stakeholder expectations, challenges, and opportunities. This
includes a projection/forecast of where the status quo is taking us
Where do we want to be established through defining a vision, a mission, and a
strategy.
How do we get there established by reaching consensus on a small set of strategic
goals that change the status quo. Strategic goals which are expanded into action plans
with key result measures, champions, action steps, accountable parties and dates.

What is theProgress Pyramid?

Action Steps immediate actions what, who, when, creates Results
Key Results 4-6 per goal, defines and implements Strategic Goals
Goals around 5 changes in the status quo, implements Strategy
Strategy visualization of future size and scope, executes Mission
Mission organizational DNA, affirmation of how to fulfill Vision
Vision statement of Values, Purpose, and Envisioned Future

Togenerateresultsyouhavetofinishwhat youstart. Tofinishwhat youstart youhavetowork froma
basethat remainsstableover thelifeof theinvestment. Eachlevel of thepyramidis morestablethanthe
level aboveit.

Index tab

How do we get there?

Keyresult measures:
1.1 Wehavewonworkinat least twoadditional healthcaresystems. STEVEM
1.2 Wehavewonworkwithat least twonewdevelopers. STEVEM
1.3 Wehavewonworkwithat least oneprivateinstitution. STEVEM
1.4 Wehaveenteredintoat least onenewmarket arena. STEVEM
1.5 Wehaveleveragedrelationshipswithour employeesfor maximumreturn. STEVEM
1.6 SuperintendentsandProject Managershavetakenownershipof our marketingplan. STEVEM

Champion: SteveMacDougal Co-Champion(s): JohnSmith, MichelleMadison, RalphDingus

ActionSteps
19Feb05
Accountable
Person
DueBy
Date
Status
1.1 Wehavewonworkinat least twoadditional healthcaresystems. STEVEM
1.1.1 Develophealthcaresystemstarget list withJohnS, andRalphD SteveM 03/23/05
1.1.2 Completefirst roundof initial contactswithhealthcaresystemstargets(10-20) SteveM 05/23/05
1.1.3 Present CAJAprogramtoour healthcaresystemstargetedprospects SteveM 05/23/05

1.2 Wehavewonworkwithat least twonewdevelopers. STEVEM
1.2.1 Schedulefirst meetingsfacetofacewitheachof thedevelopersonthetarget list SteveM 04/23/05

1.3 Wehavewonworkwithat least oneprivateinstitution. STEVEM
1.3.2 Distributeour marketingmailer topotential privateinstitutionsshowingphotosof private
institutionproject
SteveM 04/23/05

1.4 Wehaveenteredintoat least onenewmarket arena. STEVEM

1.5 Wehaveleveragedrelationshipswithour employeesfor maximumreturn. STEVEM
1.5.1 Solicit list fromcompanyof current contactstoenableustoleveragerelationshipswithour
employeesfor maximumreturn
MichelleM 04/23/05

1.6 SuperintendentsandProject Managershavetakenownershipof our marketingplan. STEVEM
1.6.2 Present approvedoutlineof Internal businessdevelopment plan toProject Managers SteveM 04/23/05
1.6.3 Present approvedoutlineof Internal businessdevelopment plan toSuperintendents SteveM 05/23/05

Keyresult measures:
2.1 Existingcareer development programindustryresourceshavebeenidentified. MICHELLEM
2.2 Wehaveatailoredleadershipdevelopment trainingprogramfor personal growthandevaluationpurposes.
MICHELLEM
2.3 Wehavedevelopedleadershipcategoriesbasedontechnical skill setsavailability. MICHELLEM
2.4 Wehavewebbasedtrainingprograms. MICHELLEM

Champion: MichelleMadison Co-Champion(s): AlanMasters, Carl Summer, RalphDingus, SteveHenderson

ActionSteps
19Feb05
Accountable
Person
DueBy
Date
Status
2.1 Existingcareer development programindustryresourceshavebeenidentified. MICHELLEM
2.1.1 Contact member association(AGC/ABC) withregardstocareer development programs Michelle 03/23/05
2.1.2 Contact other contractorstogarner career development programinformation Michelle 03/23/05
2.1.3 Contact trainingcompanies- outsourcedresourceswithregardstocareer development
programs
DawnS 04/23/05
2.1.4 Evaluate/determineneedtodevelopnew career development programwithCarlS/COO MichelleM 05/23/05

2.2 Wehaveatailoredleadershipdevelopment trainingprogramfor personal growthand
evaluationpurposes.
MICHELLEM
2.2.2 Evaluateleadershipdevelopment trainingneedsusingorganizational chart withRalphD
andAlanMasters
MichelleM 05/23/05
2.2.3 Createimplementationqualificationstandardsfor leadershipdevelopment training MichelleM 05/23/05
2.2.4 Developleadershipcategoriesbasedonevaluationof programavailability MichelleM 05/23/05

2.3 Wehavedevelopedleadershipcategoriesbasedontechnical skill setsavailability. MICHELLEM
2.3.2 WorkwithAMandRDtoevaluateskill set needed(jobmix) MichelleM 05/23/05

2.4 Wehavewebbasedtrainingprograms. MICHELLEM
2.4.1 Determineweb-basedtrainingprogramtechnical capabilitiesof industrywhatsout there MichelleM 04/23/05
2.4.2 Developbackdoor meansof web-basedimplementationfor training MichelleM 05/23/05
2.4.3 Communicatenewwebbasedtrainingprogramsystemtoemployees MichelleM 02/23/05

Keyresult measures:
3.1 Annual organizational chartshavebeendevelopedthat project 4yearsout assumingan8-10%growthrate.
ALANM
3.2 Therearedefinedjobdescriptionsfor all positionsontheorganizational chart inJanuary2006. ALANM
3.3 Thestair stepsystemislinkedtoreviewsfor PMs, assistant supervisors, supervisorsandcarpenters. ALANM

Champion: RalphDingus Co-Champion(s): AlanMasters, SteveHenderson

ActionSteps
19Feb05
Accountable
Person
DueBy
Date
Status
3.1 Annual organizational chartshavebeendevelopedthat project 4yearsout assumingan8-
10%growthrate.
ALANM

3.2 Therearedefinedjobdescriptionsfor all positionsontheorganizational chart inJanuary
2006.
ALANM

3.3 Thestair stepsystemislinkedtoreviewsfor PMs, assistant supervisors, supervisorsand
carpenters.
ALANM

Keyresult measures:
4.1 Theaccountingprocesshasbeenreviewedandrecommendedchangesmade. STEVEH
4.2 Project management processcontrolsandprocedureshavebeenimplemented. STEVEH
4.3 Thearchivelibraryisupandrunning, fullyfunctional, andcentralized. MICHELLEM
4.4 Websitetoolsprovidingemployeeback-door assistancearefullyfunctional. MICHELLEM

Champion: SteveHenderson Co-Champion(s): JohnSmith, Carl Summer, MichelleMadison

ActionSteps
19FEb05
Accountable
Person
DueBy
Date
Status
4.1 Theaccountingprocesshasbeenreviewedandrecommendedchangesmade. STEVEH
rd
4.1.2 Makespecificrecommendationsfor changestotheaccountingprocess SteveH 03/23/05
4.1.3 Formcommitteetomeasurehumaninput andprocesswithregardstoaccounting
processes
SteveH 04/23/05
4.1.4 Schedulemeetingwithsoftwarereptomeet andreviewexistingadditional accounting
modules
BradG 04/23/05
4.1.5 Accountingcommitteepresentsfindingstodateonsystemchallengesandthenext
evaluationprocess
BradG 05/23/05

4.2 Project management processcontrolsandprocedureshavebeenimplemented. STEVEH
4.2.2 HaveCarl reviewsuper manual tolist all actionitems onadaily, weekly, monthly, byjob CarlS 04/23/05
4.2.4 Meet withproject managerstodiscusssupervisorsweaknesses, discuss/defineaction
itemsfor improvements
ScottA 05/23/05

4.3 Thearchivelibraryisupandrunning, fullyfunctional, andcentralized. MICHELLEM
4.3.3 Completetheactual archivingof filesdevelopimplementationplan MichelleM 05/23/05

4.4 Websitetoolsprovidingemployeeback-door assistancearefullyfunctional. MICHELLEM
Mishee
04/01/05

Keyresult measures:
5.1 Wecompleteall KeyResultsMeasuresinspirit aswell asmeasure. JOHNS
5.2 Thestrategicplanhasbeenclearlycommunicatedat all levels. JOHNS
5.3 Our advisoryboardiskept informedandinvolved. JOHNS

Champion: JohnSmith Co-Champion(s): SteveHenderson

ActionSteps
19Feb05
Accountable
Person
DueBy
Date
Status
5.1 Wecompleteall KeyResultsMeasuresinspirit aswell asmeasure. JOHNS
5.1.1 Makesureproject managersareincludedindevelopment andimplementation SteveH Ongoing

5.2 Thestrategicplanhasbeenclearlycommunicatedat all levels. JOHNS
5.2.3 Teambriefscompanyat summer partyonoverall plan, championsdoabrief presentation JohnS 07/23/05

5.3 Our advisoryboardiskept informedandinvolved. JOHNS
5.3.2 Championsupdatesplanat eachmeetingbyeachchampion(every120days) JohnS

06/23/05

Individual major two - three year goals
What has to change in the status quo

1. Additional structuredmanagement
2. acquireAlevel individualstojointheSmithteaminneededstaff/management positions
3. Better Cost Control Methodsfor projects
4. Clearlydefinedgoalsthat canunitethecompany.
5. Creationof agrowthcenteredorganizational chart
6. Establishconsistent management level at Clarianfocusedsolelyonoperationsandthebottomline.
7. Fragmentedstaff at Clarian.
8. Hirepeopletofit theorg. chart at theright time
9. KeepawayfromsinglesourceD/BuildME/05PContractors(Provideour clientscompetitioninall divisions
10. Middlemanagement organization
11. Newprocesses/05tools(Exp) tocut downontimeandincreaseefficiency.
12. Openthedoorsto3-4newprivateclients
13. Provideasolidbaseof potential employees.
14. Specific/05unifiedvisionfor attainingshort termandlongtermcorporategoals
15. Sr. Project Manager hiredfor aspecificmarket(s)
16. Stronger Management at COO

Index tab

Plan Reviews

Index tab

Appendices

Definitions
AccountableParty: Asingle named individual whocanaccount for where we are withregardstoakeyresult
measure, why were there, andwhat were doing about it i.e. what theactionstepsare.
ActionPlan: Anorganizationof personal commitmentsthat serveasavehiclefor causingastrategicgoal tobecomea
reality. It iscomprisedof:
AStrategic Goal statement apithyone-liner that capturesthespirit of therequiredchangeinstatusquo.
AChampion andCo-Champions folkswhoareaccountablefor shepherdingthegoal tocompletion.
Alist of Key Result Measures thecomplete, specificset of outcomesthat definecompletion.
Aset of 90dayAction Steps specificactionstobefinishedinthenext daysandweeksthat createresults.
Champion: Anamedindividual, theplanningteamsbest mixof passionandcompetence, for shepherdingaStrategic
Goal over thenext 12-18months. Theydecidehowthegoal getsdonewhileremainingaccountablefor
whatgetsdonethroughdeliveryof theteam-set keyresultmeasures andoperatingthoughplansthat are
written, understood, reviewed, andapproved. Anindividual isthechampionof oneandonlyonegoal They
andtheir Co-championsaretheforwardwedgetopersonallyguaranteethat their goal ismovingtowardand
will becompletedasrapidlyandcompletelyaspossible. Theyplowtheroadgarneringsupport and
resources. Theyknowthecurrent stateof progressontheir goal at all times. Theybuildandmaintain
corporateawarenessandsupport. Theyrepresent theconsensusandcommitment of theentireplanning
team.
Co-champion(s): Oneor morenamedindividualswhowouldbetheChampionof astrategicgoal if theplanningteam
didnt havesomeonewithastronger matchof passionandcompetence. Theyback up the Champion.
(Usuallythemember(s) of theteamwhoareaccountablefor thekeyresult measuresunder thegoal.)
Customer: Someonewhobuys from you more than once over therecent past typicallyover thelast 1-2years.
Thecustomer canberecognizedastheonewiththeopenwallet. (Theremaybemanyendusersof your
servicethat your productsmust attract andservicebut if youdont alsomeet theneedsof thecustomer you
will never makeasale!)
EndUser: Theindividual(s) whoultimately use your product(s). If your product doesnot meet theneedsof the
ultimateuser therewill benomotivationonthepart of your customer tobuythem. (For example, endusers
of DovesoapaskSafeway, your potential customer, tocarrytheproduct.)
Market: Acollection of prospects wehaveaneffectivewaytocommunicate withthat havecommon needs that
canbemet byproductsyour product groupcandevelop, your salesteamcandeliver andyour customer
servicesgroupcan support that cangenerateenough revenue toberelevant at our current size.
Marketscanbedefinedbyjobtitle, application, industry, geography, etc.
Mission: Your chosenapproachover thenext 3-5yearstofulfill your mission. It isanaffirmationof:
Whowewant to be
What wewant to do
Whowewant to do it for, and
Why we do it.
Product: Themanifestationof thevalue you create for your customer. Thething theypayyoufor. Sometimesit is
aphysical thinglikecable, screws, or disksandsometimesit isanintangiblethingsuchasadvice.
Sale: Aone time event whenmoneychangeshands. The1
st
saletypicallycostsmorethat theprofit it generates.
Typicallyyoucanonlymakeaprofit oncetherearemultiplesalesfromthesameorganizationi.e. sales
dont buildabusiness, customersbuildabusiness.
Vision: Theembodiment of your organizationsinternal gyroscopeconsistingof your core purpose andcore values
anda10- 30year, big hairy audacious goal.

Potpourri
1. Aplanisarealitycheck. Youcanbesurethat thefuturewont exactlyplayout thewayyouwrotetheplanBUT
howcanyouhaveconfidenceinyour goal if youcant createaplausible, defensiblescenarioof howyoucould
reachit.
2. Astrategicplanislikeapilotsflight plan. Theflight planidentifiestheultimatelocation(Seattlevs. KeyWest or
Bangor) aswell asmajor milestonesalongtheway. Andlikeaflight planyouknowthat at anygivenmoment
wont beontheplan, youwill beahead, behind, East or West of theplan. But youstill knowwhereyouaregoing
andhowyouplannedtoget there.
3. Alwaysuseafacilitator for important, multi-daymeetings.
youcant affordtowasteyour time
youcant affordtowasteyour teamstime
youcant affordtheopportunitycostsof not achievingtheplannedresults
4. Askyour teamtoestablishdatesfor results. Datesareacommitment, aformof communicationsandareality
check. DoNOTusedatesasaclub. Youneedtoget toughwhenyoufindyour actionstepsdont havespecific
datesbut insteadareprimarilyOngoing. Whileit istrueyouneedongoingactionstoproduceresults, if you
never set specificdatesresultshaveatendencytoget deferred, oftenfor aver ylongtime
5. CEOsaregenerallyintuitiveandsmart. Theyknowexactlywhat needstobedoneafter hearingonlyabit of the
problem. Theyarealsopronetoactionandhencedont want towastetimewaitingfor therest of theteamto
catchup. Thenet isothersseethemselvesexecutingaplantheydont understand. Biteyour lip, havepatience
andhanginthereuntil therest of theteamcatchesupwithyou. Theywill doabetter jobANDwhoknows, maybe
your intuitionwasnt right after all.
6. Companyculturestartsat thetop. Lookaroundandaskyourself what YOUaredoingtocreateandpropagatethe
atmosphereandvaluesystemyouseearoundyou. Asthecartooncharacter Pogosoobserved: "We'vemet the
enemyandit'sus!"
7. Compensateemployeesnewtotheworkplacewiththeopportunitytogrowandgainexperience. Startupscant
affordtohirepeoplewhoknowwhat theyaredoingsotheyhireyoutheager toinvest intheir careersbyworking
longhourstoovercomenewlearningcurves. Dont feel guiltyabout thelowwages, it isall part of theequation.
8. Dont asksomeonesopinionunlessyouarereadytoconsider it.
9. Dont wastetimeassigningblame. It makesyour teamdefensiveandwastestime. Focusinsteadon
understandingthecurrent problemandwherewegofromhere.
10. Everyorganizationhastwoongoingandreoccurringproblems: communicationsandfocus.
11. Everythinghappensbecauseof achampion. Donot undertakeamajor project unlessyouhaveachampion
committedtoshepherdingtheproject tocompletion. Remember peoplecanbethechampionof onlyonegoal at a
time, youarefoolingyourself if youthinkotherwise.
12. If youdropafrogintoapot of boilingwater it will leapout. If youput that froginapot of warmwater andSLOWLY
increasethetemperaturethefrogwill boil. ThisisthereasonanewCEO, employee, consultant or evenvisitor
canspot acompany'sproblemand/or better wayof doinganoperation. Experiencedold-timersarelikethefrog.
Theycanbeonthevergeof bankruptcyandnever noticeit. Periodicallystepawayfor alongview, bringin
outsidersunlikelytoagreejust tobeniceandjoinCEOnetworkgroupsliketheCEOClub'sPresidential Advisory
Councils(PACs) toget afreshfrog'sopinion.

Meet Alice and her Friends

"Would you tell me, please, which way I ought to go from
here?"
"That depends a good deal on where you want to get to," said the
Cat.
"I don't much care where ---" said Alice.
"Then it doesn't matter which way you go," said the Cat.
"--- so long as I get somewhere," Alice added as an
explanation.
"Oh, you're sure to do that," said the Cat, "if only you walk long
enough."
Alice's Adventures in Wonderland
by Lewis Carroll

The lesson of the six blind men

It wassix menof Indostan TheFourthreachedout hiseager hand
Tolearningmuchinclined Andfelt about theknee.
Whowent toseetheElephant What most this wondrous beast is like
(Thoughall of themwereblind), Is mightyplain, quothhe;
That eachbyobservation tis clear enoughtheElephant
Might satisfy hismind. Is verylikea tree.
TheFirst approachedtheElephant TheFifth, whochancedtotouchtheear,
Andhappeningtofall Said, Eentheblindest man
Against hisbroadsturdyside Cantell what thisresemblesmost;
At oncebegantobawl: Deny thefact whocan,
Bless me! But theElephant This marvel of anElephant
It verylikea wall. Isvery likea fan.
TheSecond, feelingof thetusk, TheSixthnosooner hadbegun
Cried, Ho! What havewehere, About thebeast togrope
Soveryroundandsmoothandsharp? Then, seizingontheswingingtail
Tometis mightyclear That fell withinhis scope.
This wonder of anElephant I see, quothhe, Elephant
Isvery likea spear. Isvery likea rope.
TheThirdapproachedtheanimal, Andsothesemenof Indostan
Andhappeningtotake Disputedloudandlong.
Thesquirmingtrunk inhishands Eachinhisownopinion
Thusboldlyupandspake: Exceedingstiff andstrong,
I see, quothhe, theElephant Thougheachwas partly intheright,
Is very like a snake. And all were in the wrong
The six blind men and the elephant
by James Godfrey Saxe

Meeting rules

1. Listen.
2. Stay focused.
3. Speak up and say what needs to be said.
There are no sacred cows.
4. No cheap shots.
5. Respect differences of opinion.
6. Focus on solving problems
rather than placing blame or being defensive.
7. Only new information in the
discussion. Dont flog a dead horse.
8. Only one discussion at a time.
9. Silence implies understanding
and agreement.


Participant's Role
1. Look at the business through the
eyes of the CEO.
2. Represent the company
not themselves,
not their people
not their department
not their function.

CEO's Role
1. Act as a participant, not the
omniscient individual they are.
2. Suspend their usual problem solving
and time saving operating mode.

Total Quality Planning

The breakthrough step-by-step program that enables you to create a strategic long
range plan in two days with immediate bottom-line impact.

Your executives reach consensus on where your company is today and should be in
the future with a commitment to specific actions to create and control that future.

Total Quality Planningleads directly to:
True Teamwork
Consensus, commitment, trust
Dramatically Higher Results
Accountability
measures and action steps
Commitment
of teammembers
of company resources
Stable investment platform
Reduced Stress
Shared vision
Mutual trust
Tools for effective delegation

12810 Gaffney Road
Silver Spring, MD 20904-3517
Voice: (301) 680-0035
FAX: (301) 622-1819
Internet success@myrna.com
www. my r n a . c o m

How to implement action plans:
KeyResult Measuresarethewhat ActionStepsarethehow. Theactionstepsareyour tactical plan. Youshould
expect toadjust themasyougaintactical experiencethroughexecution. Youneedtoremainfocusedoncreating
theresultsbut becareful that youdont fall inlovewithyour current tactical plan. Howyouproducethoseresults
shouldevolvebasedoninsightsgained, availableresources, approachesthat didnt work, etc.
Start bytakingeachkeyresult measureinturn. Eachmeasureshouldidentifyaconditionthat will exist whenthegoal
hasbeenaccomplished. Themeasuresaretheset of desiredoutcomesrequiredtochangethestatusquo.
Eachkeyresult measurehasanaccountablepersonwhoownsit. Initiallythechampiontakesownershipbut astheplan
developsanyoneintheorganizationcanendupbeingaccountablefor ameasure. If youhaveaformal annual review
processit wouldbeideal that eachmeasureendsuponsomeonesindividual standardof performance. The
accountablepersoncanaccount for whereweare, whywerethereandwhat weredoingabout it.
KeyResult Measure: AccountablePerson
1. ActionStep AccountablePerson DueBy
Theaccountablepersonof eachkeyresult measuredeterminesexactlywhat actionswhicharegoingtobetakeninthe
hereandnowtoadvancetowardthecompletionof themeasure. Actionsneedtohappentoday, thisweek, this
month, or thisquarter. Theyformulatetheir tactical planintheformof zerotofour, highlevel, 90dayactionsteps.
W3What arewegoingtodo?Whoisgoingtodoit?Whenwill it befinished?
What are we going to do? Eachactionstepsshouldencapsulatea burst of activity somefocusedhours
over aconcentratednumber of days. (Remember that wearesqueezingthesedevelopmental activities
intodaysthat aredominatedbyoperational demands.) Actionstepactivitieshavetobeindigestiblechunks.
Thewordingof actionstepsshouldassumeaprofessional execution. Actionplansarenot intendedtobe
highlydetailed, microstepbystepplansthat requireMicrosoft Project tomanage. Weareall professionals
andcantrust that theowner will start earlyenoughtomeet deadlines, solicit input, producesufficient drafts
for review, incorporatefeedback, etc. What weneedisacommitment tocompleteactionswithimpact major
enoughtoadvancetowardthegoalsobjective, i.e. keyresult.
Who is going to do it? Oneandonlyone person shouldbeaccountablefor eachactionstep, evenfor ateamseffort.
If everyone is responsible then no one is responsible
When will it be finished? Eachactionstepshouldhaveaclearlydefinedfinish- it isdoneor not done, andno
later thantheduebydate. Theduebydateshouldnot beaprojectionof whenyouexpect theactionstepto
becompleted, rather it isadropdeaddatethat representsacommitment of bywhentheactionstepwill be
finished. Duebydatescanbe
aspecific date, if that dateismeaningful suchasyear-end07/31/02
atime frame suchasASAP i.e. under aweekor within 30, 60, or 90 days, or
recurring timeframe suchasOngoing, Weekly, Monthly, Quarterly.
Oncethereisanestablishedset of actionstepsfor all thegoalsandtheir measuresyouneedtoworktheplan. Oncea
monthinyour regular staff meetingset asidesometimetoreviewthegoalsandtheir measures. Focusonthe
20%of theplanthat requiresmoreattentiontoget ontrack. Asagroupholdeachmember responsiblefor
fulfillingtheir commitments.
Aspart of themonthlyrevieweachowner shouldidentifywhat exactlyaretheygoingtoaccomplishtoday, thisweek,
thismonth, thisquarter toadvancecompletionof their keyresult measure. Theyshouldadd/replacetheir action
stepsappropriately. If theteamisdrifting, consider meetingmorefrequentlyfor awhile.
Every3-4monthsget theentireteamtogether, off sitewithaskilledfacilitator isideal, torevalidatetheentireplan,
consider major adjustmentsinthetactical plan, andrefocusandre-energizetheteam.
Pleasewriteor print clearly, especiallywhenusingacronyms. Usepeoplesfirst nameswithfirst initial of their last
names. Ex. JohnM

Action plan for Goal:__________________________________________________________

Champion: Co-Champion(s):

ActionSteps
Bursts of action that advance us toward accomplishing a particular key result measure W3 What are we going to do? Who is going to do it? When will it be finished?
Accountable
Person
DueBy
MM/DD/YY
KeyResult Measure:
2.
3.
4.
5.
6.
7.
8.
KeyResult Measure:
1.
2.
3.
4.
5.
6.
7.
KeyResult Measure:
1.
2.
3.
4.
5.
6.
For eachof thegoalsKey Results Measures createasmall number of macro-level actionstepstobeaccomplishedover thenext 90days. (Theoptimal number of actionstepsisbetweenzeroandfour.)
Set aspecificDue By datethat theactionstepneedstobecompletedby. Identifyasinglepoint of accountabilityfor completionof theactionstep- theAccountable Person.
Total Quality Planning
Myrna Associates, Inc. Voice: (301) 680-0035 FAX: (301) 622-1819

Whereareyou? Wheredo youwant to be? Howdo youget there? Implementation
Step 1 Step 2 Step 3 Step 4 Step 5 Step 1

Planto
Plan*
PerformWOTS*upEvaluation
Company Weaknesses
Environment Opportunities
Environment Threats
Company Strengths
Set Master Strategies
Vision*
Mission*
Strategy*
Objectives
StrategicPolicies
ProgramStrategies
Set ProgramGoals*
Short Term
MediumTerm
Create
ActionPlans*
Goal
Measures
ActionSteps
Action
Accountable
Person
DueBy
PlantoPlan*

ReviewExpectations*of Major
OutsideInterests
Customers
Investors
Lenders
Vendors
Society/ Local Community
Set Organizational Strategies
Structure
Culture
Incentives
Management Style

ReviewExpectations*of Major
InsideInterests
Employees
ExecutiveTeam
Founders/ CEO

ReviewCompanyDataBase
Past Performance
Current Situation
ForecastsandMomentum
*Theplanningteamfocuses onthese
areas thefirst year.
Adjust ActionPlansas
Required

Key Result Measures
1.1 We have won work in at least two additional health care systems. STEVEM
1.2 We have won work with at least two newdevelopers. STEVEM
1.3 We have won work with at least one private institution. STEVEM
1.4 We have entered into at least one newmarket arena. STEVEM
1.5 We have leveraged relationships withour employees for maximumreturn.
STEVEM
1.6 Superintendents and Project Managers have taken ownership of our marketing
plan. STEVEM
2.1 Existing career development programindustry resources have been identified.
MICHELLEM
2.2 We have a tailored leadership development training programfor personal
growth and evaluation purposes. MICHELLEM
2.3 We have developed leadership categories based on technical skill sets
availability. MICHELLEM
2.4 We have web based training programs. MICHELLEM
3.1 Annual organizational charts have been developed that project 4 years out
assuming an 8-10%growth rate. ALANM
3.2 There are defined job descriptions for all positions on the organizational chart
in January 2006. ALANM
3.3 The stair step systemis linked to reviews for PMs, assistant supervisors,
supervisors and carpenters. ALANM
4.1 The accounting process has been reviewed and recommended changes
made. STEVEH
4.2 Project management process controls and procedures have been
implemented. STEVEH
4.3 The archive library is up and running, fully functional, and centralized.
MICHELLEM
4.4 Website tools providing employee back-door assistance are fully functional.
MICHELLEM
5.1 We complete all Key Results Measures in spirit as well as measure. JOHNS
5.2 The strategic plan has been clearly communicated at all levels. JOHNS
Smith Construction Company
Strategic Plan

Goals

1. Diversify client base for maximum repeat business.
Steve MacDougal
2. Invest in career development program.
Michelle Madison
3. Create infrastructure to support growth.
Ralph Dingus
4. Standardize systems and processes.
Steve Henderson
5. Maintain the momentum of the strategic plan.
John Smith

Calendar of Action Steps
ActionSteps
19Feb05
Accountable
Person
DueBy
Date
5.1.1 Makesureproject managersareincludedindevelopment and
implementation
SteveH Ongoing
4.1.4 Schedulemeetingwithsoftwarereptomeet andreviewexisting
additional accountingmodules
BradG 04/23/05
rd
2.1.1 Contact member association(AGC/ABC) withregardstocareer
development programs
Michelle 03/23/05
2.1.2 Contact other contractorstogarner career development program
information
Michelle 03/23/05
4.1.2 Makespecificrecommendationsfor changestotheaccounting
process
SteveH 03/23/05
1.1.1 Develophealthcaresystemstarget list withJohnS, andRalphD StevewH 03/23/05
Mishee
04/01/05
4.2.2 HaveCarl reviewsuper manual tolist all actionitems onadaily,
weekly, monthly, byjob
CarlS 04/23/05
2.1.3 Contact trainingcompanies- outsourcedresourceswithregards
tocareer development programs
DawnS 04/23/05
1.5.1 Solicit list fromcompanyof current contactstoenableusto
leveragerelationshipswithour employeesfor maximumreturn
MichelleM 04/23/05
2.4.1 Determineweb-basedtrainingprogramtechnical capabilitiesof
industrywhatsout there
MichelleM 04/23/05
4.1.3 Formcommitteetomeasurehumaninput andprocesswithregards
toaccountingprocesses
SteveH 04/23/05
1.2.1 Schedulefirst meetingsfacetofacewitheachof thedeveloperson
thetarget list
SteveM 04/23/05
1.3.2 Distributeour marketingmailer topotential privateinstitutions
showingphotosof privateinstitutionproject
SteveM 04/23/05
1.6.2 Present approvedoutlineof Internal businessdevelopment plan
toProject Managers
SteveM 04/23/05
4.1.5 Accountingcommitteepresentsfindingstodateonsystem
challengesandthenext evaluationprocess
BradG 05/23/05
2.1.4 Evaluate/determineneedtodevelopnew career development
programwithCarlS/COO
MichelleM 05/23/05
2.2.2 Evaluateleadershipdevelopment trainingneedsusing
organizational chart withRalphDandAlanMasters
MichelleM 05/23/05
2.2.3 Createimplementationqualificationstandardsfor leadership
development training
MichelleM 05/23/05
2.2.4 Developleadershipcategoriesbasedonevaluationof program
availability
MichelleM 05/23/05
2.3.2 WorkwithAMandRDtoevaluateskill set needed(jobmix) MichelleM 05/23/05
2.4.2 Developbackdoor meansof web-basedimplementationfor
training
MichelleM 05/23/05
4.3.3 Completetheactual archivingof filesdevelopimplementation
plan
MichelleM 05/23/05
4.2.4 Meet withproject managerstodiscusssupervisorsweaknesses,
discuss/defineactionitemsfor improvements
ScottA 05/23/05
1.1.2 Completefirst roundof initial contactswithhealthcaresystems
targets(10-20)
SteveM 05/23/05
1.1.3 Present JCAHOprogramtoour healthcaresystemstargeted
prospects
SteveM 05/23/05
1.6.3 Present approvedoutlineof Internal businessdevelopment plan
toSuperintendents
SteveM 05/23/05
5.3.2 Championsupdatesplanat eachmeetingbyeachchampion
(every120days)
JohnS 06/23/05
5.2.3 Teambriefscompanyat summer partyonoverall plan, champions
doabrief presentation
JohnS 07/23/05
2.4.3 Communicatenewwebbasedtrainingprogramsystemto
employees
MichelleM 02/23/05

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Smith Construction Company

Strategic Planning Meeting

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