From fe623e9ea1a1dc73ffe82f29d08bca419683b0a0 Mon Sep 17 00:00:00 2001 From: Zhongwei Li Date: Sat, 29 Nov 2025 17:59:54 +0800 Subject: [PATCH] Initial commit --- .claude-plugin/plugin.json | 15 + README.md | 3 + agents/chief-strategy-officer.md | 35 + plugin.lock.json | 53 + skills/executive-communication/SKILL.md | 957 ++++++++++++++++ skills/strategic-planning/SKILL.md | 1399 +++++++++++++++++++++++ 6 files changed, 2462 insertions(+) create mode 100644 .claude-plugin/plugin.json create mode 100644 README.md create mode 100644 agents/chief-strategy-officer.md create mode 100644 plugin.lock.json create mode 100644 skills/executive-communication/SKILL.md create mode 100644 skills/strategic-planning/SKILL.md diff --git a/.claude-plugin/plugin.json b/.claude-plugin/plugin.json new file mode 100644 index 0000000..b1e21aa --- /dev/null +++ b/.claude-plugin/plugin.json @@ -0,0 +1,15 @@ +{ + "name": "leadership", + "description": "Strategic leadership providing vision, positioning, and executive guidance", + "version": "1.0.0", + "author": { + "name": "Puerto" + }, + "skills": [ + "./skills/strategic-planning", + "./skills/executive-communication" + ], + "agents": [ + "./agents/chief-strategy-officer.md" + ] +} \ No newline at end of file diff --git a/README.md b/README.md new file mode 100644 index 0000000..6e1eb1e --- /dev/null +++ b/README.md @@ -0,0 +1,3 @@ +# leadership + +Strategic leadership providing vision, positioning, and executive guidance diff --git a/agents/chief-strategy-officer.md b/agents/chief-strategy-officer.md new file mode 100644 index 0000000..ed92b7f --- /dev/null +++ b/agents/chief-strategy-officer.md @@ -0,0 +1,35 @@ +# Chief Strategy Officer + +PROACTIVELY use for strategic planning, market positioning, long-term vision, and executive leadership. + +**Core Capabilities:** +- Strategic planning and vision +- Market analysis and positioning +- Competitive strategy +- Business model innovation +- M&A strategy +- Board and investor communications +- Executive reporting +- Strategic partnerships +- Scenario planning +- OKR and goal setting + +**When to Use:** +- Strategic planning and vision setting +- Market analysis and positioning +- Executive-level decision making +- Board and investor communications +- Strategic initiative planning +- Long-term roadmap development + +**Tools Available:** Read, Write, Edit, Bash, Grep, Glob + +**Skills:** strategic-planning, executive-communication + +**Examples:** +- "Develop 3-year strategic plan and vision" +- "Create board presentation on market strategy" +- "Analyze competitive landscape and define positioning" +- "Set company OKRs and strategic initiatives" +- "Prepare executive summary for investor update" +- "Evaluate M&A opportunities and strategic fit" diff --git a/plugin.lock.json b/plugin.lock.json new file mode 100644 index 0000000..dc898c3 --- /dev/null +++ b/plugin.lock.json @@ -0,0 +1,53 @@ +{ + "$schema": "internal://schemas/plugin.lock.v1.json", + "pluginId": 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Front (BLUF)**: Lead with the conclusion +2. **Pyramid Principle**: Structure from conclusion to supporting details +3. **Clarity Over Cleverness**: Simple, direct language wins +4. **Action-Oriented**: Every communication drives decisions +5. **Data-Driven Stories**: Numbers need context and narrative + +--- + +## The Pyramid Principle (Barbara Minto) + +### Structure Template + +``` +[CONCLUSION] + ├── [Key Point 1] + │ ├── Supporting fact A + │ ├── Supporting fact B + │ └── Supporting fact C + ├── [Key Point 2] + │ ├── Supporting fact A + │ ├── Supporting fact B + │ └── Supporting fact C + └── [Key Point 3] + ├── Supporting fact A + ├── Supporting fact B + └── Supporting fact C +``` + +### Application Rules + +**Start with the answer**: +- Executive summary contains the conclusion +- First paragraph states the recommendation +- First slide shows the outcome + +**Group ideas logically**: +- 3-5 major points (never more than 7) +- Each point supports the conclusion +- Similar ideas grouped together +- Logic flows naturally + +**Order for impact**: +- Most important first +- Chronological when telling a story +- Structural when describing a system +- Comparative when evaluating options + +### Example: Poor vs Good Structure + +**Poor (Bottom-Up)**: +``` +We analyzed Q3 sales data... +Customer feedback showed... +Market trends indicate... +Competitor pricing was... +Therefore, we should expand to Asia. +``` + +**Good (Pyramid)**: +``` +We should expand to Asia in Q1 2025. + +Why this makes sense: +1. Market opportunity: $2.5B addressable market growing 15% YoY +2. Competitive advantage: Our tech is 2 years ahead +3. Financial viability: 18-month payback, 35% IRR + +Supporting data... +``` + +--- + +## Executive Writing Style + +### Language Guidelines + +**Use**: +- Short sentences (15-20 words average) +- Active voice ("We increased sales" not "Sales were increased") +- Strong verbs (achieved, delivered, accelerated) +- Concrete nouns (revenue, customers, market share) +- Present tense for current state, past for completed actions + +**Avoid**: +- Jargon and acronyms (spell out on first use) +- Passive voice +- Weak verbs (have, make, do, get) +- Hedging language (maybe, possibly, could) +- Long paragraphs (3-4 sentences max) + +### Tone Characteristics + +**Confident without arrogance**: +- "Our analysis shows..." (not "We think...") +- "The data indicates..." (not "It seems like...") +- "We recommend..." (not "You might consider...") + +**Objective with conviction**: +- State facts clearly +- Acknowledge risks openly +- Recommend decisively +- Support with evidence + +**Respectful of time**: +- Get to the point immediately +- Use formatting for scannability +- Provide detail in appendices +- Offer executive summary first + +### Word Economy + +**Before**: "In order to achieve our strategic objectives related to market expansion, we need to implement a comprehensive action plan." (22 words) + +**After**: "To expand market share, we'll execute this three-step plan." (10 words) + +**Before**: "It is our recommendation that the company should consider pursuing an acquisition strategy." (14 words) + +**After**: "We recommend pursuing acquisitions." (4 words) + +--- + +## Data Storytelling Framework + +### The Three-Act Structure + +**Act 1: Setup (Context)** +- What's the current situation? +- Why does this matter? +- What question are we answering? + +**Act 2: Conflict (Problem/Opportunity)** +- What changed? +- What's at stake? +- What are the options? + +**Act 3: Resolution (Action)** +- What should we do? +- What will it achieve? +- What's the timeline? + +### Making Numbers Meaningful + +**Raw numbers are meaningless**: +- "$2.5M revenue" - So what? + +**Add context**: +- "$2.5M revenue (up 40% YoY, exceeding target by $500K)" +- "$2.5M revenue from 150 customers (average deal size $16.7K)" +- "$2.5M revenue puts us at 15% market share, #3 in the industry" + +**Use comparisons**: +- Trend: "Revenue grew 40% YoY (vs 10% industry average)" +- Benchmark: "Customer satisfaction 4.8/5 (industry leader at 4.9)" +- Goal: "85% of target with one quarter remaining" +- Scale: "Our R&D budget ($10M) equals our top competitor's total revenue" + +### Storytelling Formula + +``` +Problem → Insight → Action → Impact + +Example: +"Churn increased 5 percentage points to 8% (Problem). +Analysis shows 80% of churned customers experienced +billing issues within 30 days (Insight). We'll implement +automated billing validation and proactive customer service +(Action) to reduce churn to 5% and save $2M annually (Impact)." +``` + +--- + +## Visualization for Executives + +### Chart Selection Guide + +| Data Type | Best Chart | When NOT to Use | +|-----------|------------|-----------------| +| **Trends over time** | Line chart | When you have only 2-3 data points | +| **Comparisons** | Bar chart (horizontal) | When you have >7 categories | +| **Part-to-whole** | Pie chart (sparingly) | When you have >5 segments | +| **Distribution** | Histogram | For executives (too technical) | +| **Correlation** | Scatter plot | When causation is unclear | +| **Process flow** | Sankey/flow diagram | For quick decisions | +| **Hierarchy** | Treemap | When depth >2 levels | +| **Status** | Traffic light (RAG) | For detailed metrics | + +### Chart Design Principles + +**High-Level Focus**: +- Show trends, not granular data +- Aggregate to monthly/quarterly (not daily) +- Top 5-7 categories only ("Other" for rest) +- Clear before/after comparisons + +**Visual Simplicity**: +- Minimal gridlines (or none) +- One data series per chart (max 3) +- Large, legible fonts (14pt minimum) +- Direct labeling (avoid legends when possible) +- Clear title states the insight + +**Color Strategy**: +- Green = positive, growth, on-track +- Red = negative, decline, at-risk +- Yellow/Orange = caution, attention needed +- Gray = neutral, historical, comparison +- Brand colors for company-specific items + +### Before/After Example + +**Before** (Too Complex): +![Complex chart with 12 lines, small font, legend, gridlines everywhere] + +**After** (Executive-Friendly): +![Simple chart with 2-3 key lines, clear trend, direct labels, title: "Revenue Growth Accelerating: +40% YoY"] + +--- + +## Board Report Structure + +### Standard Board Report Sections + +**1. Executive Summary (1 page)** +```markdown +## Executive Summary + +**Recommendation**: [One sentence action request] + +**Context**: [2-3 sentences on why this matters] + +**Key Points**: +• Financial: [One key metric] +• Operational: [One key achievement/issue] +• Strategic: [One strategic implication] + +**Decision Requested**: [Specific ask with timeline] +``` + +**2. Business Performance (2-3 pages)** +```markdown +## Business Performance + +### Financial Highlights +• Revenue: $X (+/- Y% vs target, +/- Z% YoY) +• EBITDA: $X (Y% margin) +• Cash: $X (Z months runway) + +### Operational Metrics +• Customers: X (+Y% QoQ) +• NRR: X% (target: Y%) +• CAC/LTV: $X/$Y (ratio: Z) + +### Year-over-Year Comparison +[Table showing key metrics vs same period last year] +``` + +**3. Strategic Initiatives (2-3 pages)** +```markdown +## Strategic Initiatives + +### Initiative 1: [Name] +**Status**: [On Track / At Risk / Behind] +**Progress**: [% complete or milestone achieved] +**Next Milestone**: [What and when] +**Investment**: $X spent, $Y remaining +**Expected Impact**: [Quantified benefit] + +[Repeat for 2-4 top initiatives] +``` + +**4. Risks and Opportunities (1-2 pages)** +```markdown +## Key Risks + +| Risk | Impact | Likelihood | Mitigation | +|------|--------|------------|------------| +| [Description] | High/Med/Low | High/Med/Low | [Action] | + +## Key Opportunities + +| Opportunity | Potential | Timeframe | Investment Needed | +|-------------|-----------|-----------|-------------------| +| [Description] | $X value | Q1 2025 | $Y | +``` + +**5. Decisions Needed (1 page)** +```markdown +## Decisions Requested + +### Decision 1: [Clear title] +**Background**: [2-3 sentences] +**Options**: + A. [Option] - Pros: X, Cons: Y + B. [Option] - Pros: X, Cons: Y +**Recommendation**: [Our recommendation with rationale] +**Timeline**: [When decision needed and why] + +[Repeat for additional decisions] +``` + +**6. Appendices (as needed)** +- Detailed financial statements +- Product roadmap +- Competitive analysis +- Customer case studies + +### Board Report Best Practices + +**Length**: +- Total: 8-15 pages (not including appendices) +- Executive summary: 1 page max +- Each section: 1-3 pages max +- Font: 11-12pt minimum + +**Timing**: +- Distribute 5-7 days before meeting +- Assume board reads in advance +- Use meeting for discussion, not presentation +- Prepare backup slides for deep dives + +**Tone**: +- Balanced: Share good and bad news +- Forward-looking: More time on future than past +- Honest: Flag risks clearly +- Specific: No vague statements + +--- + +## Executive Summary Best Practices + +### The Perfect Executive Summary + +**Structure (1 page max)**: +```markdown +## Executive Summary + +### The Bottom Line +[One sentence: What are we recommending/reporting?] + +### Why This Matters +[2-3 sentences: Context and significance] + +### Key Findings +• [Finding 1: Most important] +• [Finding 2: Second most important] +• [Finding 3: Third most important] + +### Recommended Actions +1. [Action 1 with owner and timeline] +2. [Action 2 with owner and timeline] +3. [Action 3 with owner and timeline] + +### Expected Impact +[Quantified outcome: revenue, cost, time, risk] +``` + +### Writing Guidelines + +**First Sentence Rule**: +The first sentence must be complete and self-contained. Reader should understand the purpose from sentence one alone. + +**Examples**: + +Poor: "This document outlines our findings." +Good: "We recommend expanding to Asian markets in Q1 2025 to capture $2.5B opportunity." + +Poor: "After conducting analysis, we have some recommendations." +Good: "Our analysis shows consolidating vendors will save $5M annually with no service disruption." + +**Density Rule**: +Every sentence must add new information. No filler. + +Poor: +``` +We conducted a comprehensive analysis of the market. +The analysis looked at many factors. +Based on our analysis, we have recommendations. +``` + +Good: +``` +Market analysis reveals three immediate opportunities: +European expansion ($10M ARR), enterprise pivot ($15M), +and strategic partnerships ($8M). We recommend pursuing +Europe first given our existing infrastructure and +18-month payback period. +``` + +--- + +## Strategic vs Tactical Information + +### Decision Framework + +**Strategic (for executives)**: +- Direction and priorities +- Resource allocation +- Risk acceptance +- Market positioning +- M&A and partnerships +- Organizational structure +- Multi-year investments + +**Tactical (for managers)**: +- Implementation details +- Process improvements +- Tool selection +- Hiring plans +- Campaign execution +- Bug fixes +- Short-term optimizations + +### Filter for Executives + +Ask: "Would this influence a board-level decision?" + +**Include**: +- 10% revenue change +- Major customer win/loss +- Competitive threat +- Regulatory change +- Key hire departure +- Strategic pivot +- Capital requirements + +**Exclude**: +- Individual feature launches +- Minor process changes +- Routine hiring +- Small vendor switches +- Team reorganizations (unless executive) +- Tactical marketing campaigns +- Technical implementation details + +### Aggregation Rule + +Executives need aggregated, not granular data. + +**Don't**: List 47 initiatives +**Do**: Group into 5 strategic themes with progress + +**Don't**: Show weekly metrics +**Do**: Show quarterly trends with monthly granularity + +**Don't**: Report individual deals +**Do**: Report pipeline health and conversion trends + +--- + +## Traffic Light Reporting (RAG Status) + +### RAG Status Definitions + +**Green (On Track)**: +- Meeting or exceeding targets +- No blockers +- Within budget and timeline +- Milestones being hit +- Confidence level: High + +**Yellow/Amber (At Risk)**: +- Slightly behind target (5-15%) +- Minor blockers present +- Budget or timeline pressure +- Mitigation plan in place +- Confidence level: Medium + +**Red (Off Track)**: +- Significantly behind target (>15%) +- Major blockers +- Over budget or late +- Intervention needed +- Confidence level: Low + +### RAG Report Template + +```markdown +## Project/Initiative Status + +| Initiative | Status | Progress | Key Issue | Mitigation | +|------------|--------|----------|-----------|------------| +| Product Launch | 🟢 | 85% | None | On schedule for Q1 | +| Sales Hiring | 🟡 | 60% | Slow hiring in Enterprise | Engaging recruiters | +| Cloud Migration | 🔴 | 35% | Budget overrun, tech debt | Adding resources, re-scoping | + +### Details + +#### 🔴 Cloud Migration +**Status**: Behind schedule and over budget +**Progress**: 35% complete (target: 60%) +**Issue**: Unexpected technical debt discovered, requiring additional engineering time +**Impact**: + - Launch delayed 6 weeks to March 31 + - Budget increase: +$200K (now $1.2M total) +**Mitigation**: + - Added 2 senior engineers from product team + - Reducing Phase 1 scope by 15% + - Daily standup to unblock issues +**Decision Needed**: Approve additional $200K budget +**Confidence**: Can hit March 31 with additional resources +``` + +### RAG Best Practices + +**Be honest**: +- Don't keep things yellow too long +- Red is not failure, it's awareness +- Green doesn't mean perfect + +**Be specific about yellows**: +- What specifically is at risk? +- By how much? +- What's the mitigation? +- When will we know if it's working? + +**For reds, always include**: +- Root cause (not symptoms) +- Impact to business +- Mitigation plan with timeline +- Decision or support needed +- Realistic new timeline + +--- + +## Key Message Frameworks + +### The Rule of Three + +Structure messages in groups of three for memorability. + +**Examples**: +- "Our strategy: Grow revenue, reduce costs, scale operations" +- "Three risks: Competitive, regulatory, execution" +- "What we need: Capital, talent, time" + +**Why Three Works**: +- Easy to remember +- Feels complete +- Doesn't overwhelm +- Creates pattern + +### The "So What?" Test + +Every statement must pass the "So What?" test. + +**Statement**: "Revenue grew 40%" +**So What?**: "We're gaining market share" +**So What?**: "We're now #2 in the market" +**So What?**: "Positions us for strategic acquisition" + +Keep asking "So What?" until you reach the business impact. + +### SCR Framework (Situation-Complication-Resolution) + +**Situation**: What's the current state? +- "We have 50% market share in SMB" + +**Complication**: What's changing or wrong? +- "Enterprise competitors entering SMB with aggressive pricing" + +**Resolution**: What should we do? +- "We'll defend with bundling and faster innovation" + +**Example in Practice**: +``` +Situation: Our customer acquisition cost is $5,000, +industry average is $3,000. + +Complication: At current CAC, we need $150K LTV to +maintain 30:1 ratio, but our LTV is only $100K. + +Resolution: We'll reduce CAC to $3,333 through content +marketing (reducing paid spend 40%) and improve LTV to +$120K through expanded cross-sell program. +``` + +### FAB Framework (Features-Advantages-Benefits) + +**Feature**: What is it? +**Advantage**: Why is it better? +**Benefit**: So what? (Business impact) + +**Example**: +- Feature: "New AI recommendation engine" +- Advantage: "40% more accurate than current system" +- Benefit: "Increases conversion 12% = $5M additional annual revenue" + +Executives care about Benefits. Include Features/Advantages only if asked. + +--- + +## One Message Per Slide Rule + +### McKinsey-Style Slide Structure + +**Every slide has ONE headline that is**: +- A complete sentence +- States the conclusion +- Can stand alone +- Is action-oriented + +**Poor Headlines**: +- "Q3 Results" (What about them?) +- "Customer Analysis" (What did you find?) +- "Next Steps" (What are they?) + +**Good Headlines**: +- "Q3 revenue exceeded target by 15%, driven by enterprise growth" +- "Top 20% of customers generate 70% of revenue and have 95% retention" +- "Launch MVP in Q1, then iterate based on enterprise feedback" + +### Slide Content Rules + +**Maximum per slide**: +- 1 main message (in headline) +- 3-5 supporting points +- 1 chart or visual +- 50 words of text + +**Minimum font sizes**: +- Headline: 28-32pt +- Body text: 18-24pt +- Chart labels: 14-16pt + +**White space**: +- 30-40% of slide should be empty +- Breathing room around elements +- Not every pixel needs content + +### Visual Hierarchy + +**Most important → Least important**: +1. Headline (largest, top) +2. Key visual or number +3. Supporting points +4. Details/footnotes (smallest, bottom) + +**Example Layout**: +``` +[HEADLINE: Revenue Growth Accelerating] + ← 32pt, bold + + [CHART: Quarterly Revenue Trend] + ← Large, clear + +• Enterprise segment +65% YoY ← 20pt +• SMB segment +25% YoY +• Services revenue doubled + +Source: Internal analysis ← 12pt, gray +``` + +--- + +## Best Practices Checklist + +### Before You Write + +- [ ] Know your audience (board, CEO, CFO, etc.) +- [ ] Understand the decision to be made +- [ ] Have data to support recommendations +- [ ] Know the timeline/deadline +- [ ] Clarify format expectations (memo, deck, report) + +### Executive Summary + +- [ ] Bottom line in first sentence +- [ ] Fits on one page +- [ ] Contains recommendation +- [ ] Quantifies impact +- [ ] Includes timeline + +### Structure + +- [ ] Pyramid principle applied +- [ ] Most important information first +- [ ] Logical flow of ideas +- [ ] Clear section headers +- [ ] Page numbers and dates + +### Writing Style + +- [ ] Active voice (>90% of sentences) +- [ ] Short sentences (<20 words average) +- [ ] Simple words (8th grade reading level) +- [ ] No jargon or spelled-out acronyms +- [ ] Consistent formatting + +### Data and Visuals + +- [ ] Numbers contextualized (vs target, vs prior period) +- [ ] Charts support key messages +- [ ] Visuals are executive-friendly (simple, clear) +- [ ] Sources cited +- [ ] RAG status where appropriate + +### Recommendations + +- [ ] Clear and specific +- [ ] Actionable +- [ ] Owner assigned +- [ ] Timeline included +- [ ] Resources needed identified + +### Final Review + +- [ ] Passes "So What?" test +- [ ] Can be scanned in 2 minutes +- [ ] Comprehensive but concise +- [ ] Proofread (zero typos) +- [ ] Formatted consistently + +--- + +## Common Mistakes to Avoid + +### Mistake 1: Burying the Lead + +**Wrong**: Start with background, methodology, then conclusion at end +**Right**: Start with conclusion, support with key points, background in appendix + +### Mistake 2: Too Much Detail + +**Wrong**: Include every finding, every data point +**Right**: Include top 3-5 insights, put rest in appendix + +### Mistake 3: Weak Recommendations + +**Wrong**: "We should consider exploring potential options" +**Right**: "We recommend expanding to Germany in Q2 2025 with $2M investment" + +### Mistake 4: Data Without Story + +**Wrong**: Show 15 charts with no narrative +**Right**: Tell story with 3-5 charts that build to conclusion + +### Mistake 5: No "Ask" + +**Wrong**: Present information, no clear request +**Right**: Specific decision or approval needed with deadline + +### Mistake 6: Wrong Altitude + +**Wrong**: Focus on tactics and implementation details +**Right**: Focus on strategy, outcomes, and decisions + +### Mistake 7: No Risk Discussion + +**Wrong**: Present only upside, ignore risks +**Right**: Balanced view with risks and mitigation + +### Mistake 8: Vague Timelines + +**Wrong**: "Soon", "In the future", "Eventually" +**Right**: "Q2 2025", "By March 31", "6-8 weeks" + +--- + +## Templates and Examples + +### Executive Email Template + +``` +Subject: [Decision Needed] [Topic] by [Date] + +[RECOMMENDATION IN ONE SENTENCE] + +Context: +[2-3 sentences on why this matters] + +Key Points: +• [Point 1] +• [Point 2] +• [Point 3] + +Decision Requested: +[Specific action needed] by [date] + +Impact: +[Quantified benefit or consequence] + +Next Steps: +[What happens after decision] + +[Attachments: Supporting analysis] +``` + +### Board Memo Template + +```markdown +# [Topic]: [One-Sentence Summary] + +**Date**: [Date] +**Prepared By**: [Name, Title] +**Recommendation**: [What we're recommending] + +## Executive Summary + +[Bottom line, key findings, recommended actions, expected impact - 1 page max] + +## Background + +[Context needed to understand the situation - 1-2 paragraphs] + +## Analysis + +[Supporting data and insights organized by theme - 2-3 pages max] + +## Options Considered + +| Option | Pros | Cons | Cost | +|--------|------|------|------| +| A | [Pros] | [Cons] | $X | +| B | [Pros] | [Cons] | $Y | + +## Recommendation + +[Our recommendation with clear rationale - 1 page] + +## Implementation Plan + +| Phase | Timeline | Owner | Investment | +|-------|----------|-------|------------| +| 1 | Q1 2025 | [Name] | $X | +| 2 | Q2 2025 | [Name] | $Y | + +## Risks and Mitigation + +[Key risks and how we'll address them] + +## Appendices + +[Supporting details, financial models, research] +``` + +### Monthly Business Review Template + +```markdown +# Monthly Business Review - [Month Year] + +## Executive Summary + +**Overall Status**: 🟢 On Track | 🟡 At Risk | 🔴 Off Track + +**Key Highlights**: +• [Most important achievement or concern] +• [Second most important] +• [Third most important] + +**Decisions Needed**: [List any immediate decisions] + +--- + +## Financial Performance + +| Metric | Actual | Target | vs Target | vs Prior Month | vs Prior Year | +|--------|--------|--------|-----------|----------------|---------------| +| Revenue | $X | $Y | +/-Z% | +/-A% | +/-B% | +| EBITDA | $X | $Y | +/-Z% | +/-A% | +/-B% | +| Cash | $X | $Y | +/-Z% | +/-A% | +/-B% | + +**Commentary**: [2-3 sentences on what drove performance] + +--- + +## Operational Metrics + +### Customer Metrics +- New Customers: X (+/- Y% vs target) +- Churn: X% (target: Y%) +- NRR: X% (target: Y%) + +### Sales Metrics +- Pipeline: $X (coverage: Y.Zx) +- Win Rate: X% (target: Y%) +- Average Deal Size: $X (+/- Y% MoM) + +--- + +## Strategic Initiatives + +[For each top initiative:] + +### [Initiative Name] +**Status**: 🟢 🟡 🔴 +**Progress**: [% or milestone] +**Key Achievement**: [What was accomplished] +**Next Milestone**: [What and when] +**Risks**: [Any concerns] + +--- + +## Key Risks and Opportunities + +### Risks +| Risk | Impact | Mitigation | +|------|--------|------------| +| [Risk 1] | High/Med/Low | [Action] | + +### Opportunities +| Opportunity | Potential | Next Step | +|-------------|-----------|-----------| +| [Opp 1] | $X | [Action] | + +--- + +## Looking Ahead + +**Next Month Focus**: +1. [Priority 1] +2. [Priority 2] +3. [Priority 3] + +**Support Needed**: [Any blockers or requests] +``` + +--- + +## Summary: Executive Communication Mastery + +**The Foundation**: +- Start with the conclusion (BLUF) +- Use Pyramid Principle structure +- Write clearly and concisely +- Make data tell a story + +**For Board Reports**: +- 8-15 pages max +- Executive summary on page 1 +- Clear decisions requested +- Balanced (good and bad news) +- Forward-looking + +**For Presentations**: +- One message per slide +- Headlines are conclusions +- Visuals are simple and clear +- 10-15 slides max for 30-min meeting + +**Always Remember**: +- Respect your audience's time +- Answer "So What?" for every point +- Quantify impact when possible +- Be specific about recommendations +- Include timeline and owner + +--- + +**Version**: 1.0 +**Last Updated**: January 2025 +**Use Cases**: Board reports, executive summaries, strategic presentations, C-suite communications diff --git a/skills/strategic-planning/SKILL.md b/skills/strategic-planning/SKILL.md new file mode 100644 index 0000000..3a8eaf4 --- /dev/null +++ b/skills/strategic-planning/SKILL.md @@ -0,0 +1,1399 @@ +# Strategic Planning + +**Vision, positioning, competitive strategy, and long-term planning** + +# Strategic Planning Skill + +**Expert frameworks and best practices for business strategy development, competitive analysis, and growth planning** + +## Core Principles + +1. **Data-Driven**: Strategy based on market research and competitive intelligence +2. **Actionable**: Clear priorities with measurable objectives +3. **Realistic**: Aligned with resources and capabilities +4. **Adaptive**: Built for changing market conditions +5. **Stakeholder-Aligned**: Considers all key constituencies + +--- + +## Part 1: Strategic Frameworks + +### 1.1 Porter's Five Forces Analysis + +**Purpose**: Understand industry structure and competitive dynamics + +**The Five Forces**: + +1. **Threat of New Entrants** + - Barriers to entry: Capital requirements, economies of scale, patents, regulations + - Brand loyalty and switching costs + - Access to distribution channels + - Government policy + - Expected retaliation from incumbents + +2. **Bargaining Power of Suppliers** + - Supplier concentration vs. industry concentration + - Switching costs for suppliers and buyers + - Availability of substitutes for supplier products + - Forward integration potential + - Importance of volume to suppliers + +3. **Bargaining Power of Buyers** + - Buyer concentration vs. industry concentration + - Switching costs for buyers + - Backward integration potential + - Price sensitivity + - Product differentiation + +4. **Threat of Substitute Products** + - Relative price-performance of substitutes + - Switching costs + - Buyer propensity to substitute + - Emerging technologies + +5. **Rivalry Among Existing Competitors** + - Number and diversity of competitors + - Industry growth rate + - Fixed vs. variable costs + - Product differentiation + - Exit barriers + - Strategic stakes + +**Analysis Template**: +```markdown +## Five Forces Analysis: [Industry] + +### 1. Threat of New Entrants: [High/Medium/Low] +- Key barriers: [List] +- Assessment: [Why high/medium/low] +- Strategic implication: [What it means for us] + +### 2. Supplier Power: [High/Medium/Low] +- Key factors: [List] +- Assessment: [Analysis] +- Strategic implication: [Actions needed] + +### 3. Buyer Power: [High/Medium/Low] +- Key factors: [List] +- Assessment: [Analysis] +- Strategic implication: [Actions needed] + +### 4. Threat of Substitutes: [High/Medium/Low] +- Key substitutes: [List] +- Assessment: [Analysis] +- Strategic implication: [Actions needed] + +### 5. Competitive Rivalry: [Intense/Moderate/Weak] +- Key factors: [List] +- Assessment: [Analysis] +- Strategic implication: [Actions needed] + +## Overall Industry Attractiveness: [High/Medium/Low] +## Strategic Recommendations: [Key actions] +``` + +### 1.2 SWOT Analysis + +**Purpose**: Assess internal capabilities and external environment + +**Framework**: + +**Strengths** (Internal, Positive): +- What do we do well? +- What unique resources do we have? +- What do customers see as our strengths? +- What competitive advantages do we have? + +**Weaknesses** (Internal, Negative): +- What could we improve? +- Where do we lack resources? +- What do customers see as weaknesses? +- What factors lose us sales? + +**Opportunities** (External, Positive): +- What market trends favor us? +- What gaps exist in the market? +- What technology changes help us? +- What regulatory changes benefit us? + +**Threats** (External, Negative): +- What obstacles do we face? +- What are competitors doing? +- What technology threatens us? +- What regulatory changes hurt us? + +**SWOT to Strategy Matrix**: +``` +SO (Strength-Opportunity): Leverage strengths to capture opportunities +WO (Weakness-Opportunity): Overcome weaknesses to pursue opportunities +ST (Strength-Threat): Use strengths to defend against threats +WT (Weakness-Threat): Defensive strategies to minimize weaknesses and threats +``` + +**Best Practices**: +- Be specific (not "good brand" but "95% brand recognition in 25-34 age group") +- Prioritize (top 3-5 in each quadrant) +- Be honest about weaknesses +- Link to data where possible +- Update quarterly + +### 1.3 BCG Matrix (Growth-Share Matrix) + +**Purpose**: Portfolio analysis for resource allocation + +**Four Quadrants**: + +1. **Stars** (High Growth, High Share) + - Market leaders in growing markets + - Require investment to maintain position + - Future cash cows + - Strategy: Invest heavily + +2. **Cash Cows** (Low Growth, High Share) + - Market leaders in mature markets + - Generate excess cash + - Fund other ventures + - Strategy: Harvest/maintain + +3. **Question Marks** (High Growth, Low Share) + - Small players in growing markets + - Require cash to grow + - Uncertain futures + - Strategy: Invest selectively or divest + +4. **Dogs** (Low Growth, Low Share) + - Weak position in mature markets + - Use more resources than generate + - Strategy: Divest or reposition + +**Analysis Template**: +```markdown +## BCG Matrix: [Company Portfolio] + +### Stars +- [Product/Business Unit]: Market share X%, Growth rate Y% + - Investment needed: $Z + - Strategic priority: High + - Timeline: 3-5 years + +### Cash Cows +- [Product/Business Unit]: Market share X%, Growth rate Y% + - Cash generation: $Z annually + - Strategic priority: Maintain + - Use cash for: [Stars/Question Marks] + +### Question Marks +- [Product/Business Unit]: Market share X%, Growth rate Y% + - Decision: Invest or divest + - Investment required: $Z + - Timeline to Star status: X years + - Probability of success: Y% + +### Dogs +- [Product/Business Unit]: Market share X%, Growth rate Y% + - Recommendation: Divest/Reposition + - Timeline: X months + - Expected proceeds: $Z + +## Portfolio Strategy +- Overweight in: [Quadrant] +- Underweight in: [Quadrant] +- Rebalancing actions: [List] +``` + +### 1.4 Ansoff Matrix (Growth Strategy) + +**Purpose**: Identify growth opportunities + +**Four Growth Strategies**: + +1. **Market Penetration** (Existing Products, Existing Markets) + - Increase market share + - Increase usage by existing customers + - Win competitors' customers + - Risk: Low + - Examples: Promotions, loyalty programs, better distribution + +2. **Market Development** (Existing Products, New Markets) + - New geographic markets + - New market segments + - New distribution channels + - Risk: Medium + - Examples: International expansion, B2B to B2C + +3. **Product Development** (New Products, Existing Markets) + - New features + - New product lines + - Innovation + - Risk: Medium + - Examples: Product variations, next-gen products + +4. **Diversification** (New Products, New Markets) + - Related diversification (leverage capabilities) + - Unrelated diversification (portfolio approach) + - Risk: High + - Examples: New business lines, acquisitions + +**Decision Framework**: +``` +Start with Market Penetration (lowest risk) +↓ If market saturated +Move to Market Development or Product Development (medium risk) +↓ If core market exhausted +Consider Diversification (highest risk, highest reward) +``` + +### 1.5 Blue Ocean Strategy + +**Purpose**: Create uncontested market space + +**Key Concepts**: + +**Red Ocean** (Compete in existing market): +- Compete in existing market space +- Beat the competition +- Exploit existing demand +- Value-cost trade-off + +**Blue Ocean** (Create new market): +- Create uncontested market space +- Make competition irrelevant +- Create and capture new demand +- Break value-cost trade-off + +**Four Actions Framework**: +``` +Eliminate: What factors can be eliminated that industry has taken for granted? +Reduce: What factors can be reduced well below industry standard? +Raise: What factors should be raised well above industry standard? +Create: What factors should be created that industry has never offered? +``` + +**Strategy Canvas**: +- Plot your offering vs. competitors on key factors +- Identify differentiation opportunities +- Find value innovation points + +**Example - Cirque du Soleil**: +- Eliminated: Star performers, animal shows, multiple rings +- Reduced: Fun and humor, thrill and danger +- Raised: Unique venues, artistic music and dance +- Created: Theme, refined environment, multiple productions + +--- + +## Part 2: Vision, Mission, and Values + +### 2.1 Vision Statement + +**Purpose**: Aspirational future state (3-10 years out) + +**Characteristics**: +- Inspirational and motivating +- Clear and memorable +- Future-oriented +- Stretch goal (ambitious but achievable) +- 1-2 sentences + +**Template**: +``` +To [action verb] [what] [for whom] by [timeframe], becoming [position/recognition] +``` + +**Examples**: +- Microsoft: "A computer on every desk and in every home" +- Disney: "To make people happy" +- Tesla: "To accelerate the world's transition to sustainable energy" + +**Questions to Ask**: +- What do we aspire to become? +- What impact do we want to have? +- What legacy do we want to leave? +- Where do we see ourselves in 10 years? + +### 2.2 Mission Statement + +**Purpose**: Define current purpose and how we operate today + +**Characteristics**: +- Clearly defines purpose +- Describes what we do +- Identifies who we serve +- Explains how we create value +- Present-tense +- 2-3 sentences + +**Template**: +``` +We [action] by [how] to [whom] so that [benefit/outcome] +``` + +**Examples**: +- Amazon: "To be Earth's most customer-centric company" +- Google: "To organize the world's information and make it universally accessible" +- Nike: "To bring inspiration and innovation to every athlete in the world" + +**Mission Statement Checklist**: +- [ ] What business are we in? +- [ ] Who are our customers? +- [ ] What value do we provide? +- [ ] How do we provide it? +- [ ] What makes us different? + +### 2.3 Core Values + +**Purpose**: Guiding principles for decisions and behavior + +**Characteristics**: +- 3-7 core values +- Authentic (actually practiced) +- Specific (not generic) +- Actionable (guide behavior) +- Enduring (won't change) + +**Development Process**: +1. Identify themes from company history +2. Survey stakeholders on what's important +3. Identify behaviors that made company successful +4. Test against real decisions +5. Refine and define each value + +**Format**: +``` +Value Name: One Word or Short Phrase +Definition: What it means to us (1-2 sentences) +In Practice: How it guides our actions (examples) +``` + +**Examples - Netflix**: +1. **Judgment**: We make wise decisions despite ambiguity +2. **Communication**: We are candid, authentic, and articulate +3. **Courage**: We say what we think when it's in the best interest +4. **Impact**: We accomplish amazing amounts of important work +5. **Curiosity**: We learn rapidly and eagerly + +--- + +## Part 3: OKR and KPI Frameworks + +### 3.1 OKRs (Objectives and Key Results) + +**Purpose**: Set ambitious goals with measurable outcomes + +**Structure**: +``` +Objective: Qualitative, inspirational goal + Key Result 1: Quantitative, measurable outcome + Key Result 2: Quantitative, measurable outcome + Key Result 3: Quantitative, measurable outcome +``` + +**Objective Characteristics**: +- Qualitative and inspirational +- Memorable and engaging +- Time-bound (usually quarterly or annual) +- Ambitious (60-70% confidence in achieving) + +**Key Result Characteristics**: +- Quantitative and measurable +- Verifiable (yes/no, achieved or not) +- Outcome-focused (not activities) +- Specific numbers or milestones +- 3-5 per objective + +**Scoring**: +- 0.0 - 0.3: Failed to make progress +- 0.4 - 0.6: Made progress but fell short +- 0.7 - 1.0: Delivered (0.7 is success, 1.0 is exceptional) + +**OKR Template**: +```markdown +## Q1 2024 OKRs + +### Company-Level OKRs + +**Objective 1**: Establish market leadership in AI-powered analytics + +Key Results: +- [ ] KR1: Achieve 40% market share in enterprise segment (Current: 25%) +- [ ] KR2: Net Promoter Score of 70+ (Current: 55) +- [ ] KR3: 50,000 active users by end of Q1 (Current: 30,000) +- [ ] KR4: $10M ARR with 130% net retention (Current: $6M, 115%) + +Score: 0.0 (Start of quarter) + +**Objective 2**: Build a world-class product team + +Key Results: +- [ ] KR1: Hire 10 senior engineers (0/10 hired) +- [ ] KR2: Engineering satisfaction score 4.5/5 (Current: 3.8) +- [ ] KR3: Reduce sprint cycle time from 2 weeks to 1 week +- [ ] KR4: Ship 3 major product releases + +Score: 0.0 (Start of quarter) + +### Department OKRs +[Aligned with company OKRs, cascaded down] +``` + +**Best Practices**: +- Top-down and bottom-up (40% from leadership, 60% from teams) +- Transparent (everyone sees everyone's OKRs) +- Weekly check-ins +- Quarterly retrospectives +- Don't tie to compensation (encourages sandbagging) + +### 3.2 KPIs (Key Performance Indicators) + +**Purpose**: Monitor ongoing business health + +**Types of KPIs**: + +**Financial KPIs**: +- Revenue Growth Rate +- Gross Margin +- Net Profit Margin +- EBITDA +- Cash Flow +- Burn Rate +- CAC (Customer Acquisition Cost) +- LTV (Lifetime Value) +- LTV:CAC Ratio (should be >3:1) + +**Customer KPIs**: +- NPS (Net Promoter Score) +- CSAT (Customer Satisfaction) +- Churn Rate +- Retention Rate +- Expansion Revenue +- Customer Lifetime Value + +**Product KPIs**: +- DAU/MAU (Daily/Monthly Active Users) +- Engagement Rate +- Feature Adoption Rate +- Time to Value +- Product Qualified Leads (PQLs) + +**Sales & Marketing KPIs**: +- MQLs (Marketing Qualified Leads) +- SQLs (Sales Qualified Leads) +- Conversion Rates (Lead→MQL→SQL→Customer) +- Sales Cycle Length +- Win Rate +- Average Deal Size + +**Operations KPIs**: +- Cycle Time +- Quality Metrics (defect rate, etc.) +- On-Time Delivery +- Resource Utilization +- Employee Satisfaction + +**KPI Dashboard Template**: +```markdown +## Company Dashboard - [Month Year] + +### Financial Health +| Metric | Current | Target | Previous | Trend | +|--------|---------|--------|----------|-------| +| MRR | $500K | $600K | $450K | ↑ +11% | +| Gross Margin | 78% | 80% | 76% | ↑ +2% | +| Burn Rate | $300K | $250K | $350K | ↑ -14% | +| Runway | 18 mo | 24 mo | 15 mo | ↑ +3mo | + +### Customer Metrics +| Metric | Current | Target | Previous | Trend | +|--------|---------|--------|----------|-------| +| Active Customers | 250 | 300 | 220 | ↑ +14% | +| NPS | 65 | 70 | 60 | ↑ +5 | +| Churn Rate | 3.5% | 2% | 4% | ↑ -0.5% | +| LTV:CAC | 4.2:1 | 5:1 | 3.8:1 | ↑ | + +### Product Metrics +| Metric | Current | Target | Previous | Trend | +|--------|---------|--------|----------|-------| +| DAU/MAU | 35% | 40% | 32% | ↑ +3% | +| Feature X Adoption | 45% | 60% | 40% | ↑ +5% | +| Time to Value | 7 days | 5 days | 10 days | ↑ -3d | + +### Sales & Marketing +| Metric | Current | Target | Previous | Trend | +|--------|---------|--------|----------|-------| +| MQLs | 500 | 600 | 450 | ↑ +11% | +| Conversion (MQL→SQL) | 25% | 30% | 22% | ↑ +3% | +| Win Rate | 30% | 35% | 28% | ↑ +2% | +| Avg Deal Size | $25K | $30K | $23K | ↑ +9% | + +🔴 Red = Below target +🟡 Yellow = Near target +🟢 Green = At or above target +``` + +--- + +## Part 4: Market Entry Strategies + +### 4.1 Market Entry Modes + +**1. Exporting** +- Direct exporting (own sales force) +- Indirect exporting (through distributors) +- Pros: Low risk, low investment +- Cons: Limited control, lower margins + +**2. Licensing** +- Grant rights to foreign company +- Pros: Low risk, passive income +- Cons: Loss of control, creating future competitor + +**3. Franchising** +- License business model +- Pros: Rapid expansion, local knowledge +- Cons: Quality control challenges, shared profits + +**4. Joint Venture** +- Partner with local company +- Pros: Shared risk, local expertise +- Cons: Potential conflicts, profit sharing + +**5. Strategic Alliance** +- Cooperative agreement without equity +- Pros: Flexibility, complementary strengths +- Cons: Limited commitment, coordination challenges + +**6. Wholly-Owned Subsidiary** +- Full ownership (greenfield or acquisition) +- Pros: Full control, full profits +- Cons: High risk, high investment + +**Entry Mode Selection Matrix**: +```markdown +| Factor | Weight | Exporting | Licensing | JV | Acquisition | +|--------|--------|-----------|-----------|-----|-------------| +| Market knowledge needed | High | 2 | 4 | 5 | 5 | +| Speed to market | High | 4 | 5 | 3 | 4 | +| Capital availability | Medium | 5 | 5 | 3 | 1 | +| Risk tolerance | Medium | 4 | 5 | 3 | 2 | +| Control importance | High | 2 | 1 | 3 | 5 | +| **Weighted Score** | - | 3.2 | 3.8 | 3.4 | 3.4 | + +Scale: 1 (Poor fit) to 5 (Excellent fit) +``` + +### 4.2 Market Entry Analysis Framework + +**Step 1: Market Attractiveness** +- Market size and growth rate +- Competitive intensity +- Regulatory environment +- Infrastructure quality +- Economic stability +- Cultural distance + +**Step 2: Competitive Position Assessment** +- Resource availability +- Core competencies fit +- Brand strength in new market +- Supply chain capabilities +- Local partnerships available + +**Step 3: Entry Barriers** +- Tariffs and trade barriers +- Local regulations +- Capital requirements +- Distribution access +- Brand recognition needed +- Local partnerships required + +**Step 4: Risk Assessment** +- Political risk +- Economic risk +- Currency risk +- Operational risk +- Reputational risk + +**Market Entry Decision Template**: +```markdown +## Market Entry Analysis: [Country/Region] + +### Market Attractiveness (Score: X/10) +- Market Size: $XB, Growing at Y% annually +- Competition: [Assessment] +- Regulations: [Assessment] +- Overall: [High/Medium/Low] + +### Competitive Position (Score: X/10) +- Our Strengths: [List] +- Our Weaknesses: [List] +- Local Competition: [Analysis] +- Overall: [Strong/Moderate/Weak] + +### Entry Barriers (Score: X/10) +- Key Barriers: [List] +- Mitigating Factors: [List] +- Overall: [Low/Medium/High] + +### Risk Assessment (Score: X/10) +- Political Risk: [Low/Med/High] +- Economic Risk: [Low/Med/High] +- Operational Risk: [Low/Med/High] +- Overall Risk: [Acceptable/Concerning/Prohibitive] + +### Recommended Entry Mode +**Mode**: [Selected mode] +**Rationale**: [Why this mode] +**Timeline**: [Phased approach] +**Investment Required**: $X +**Expected ROI**: X% over Y years +**Key Success Factors**: [List] + +### Go/No-Go Decision: [GO / NO-GO / DEFER] +**Reasoning**: [Key factors in decision] +``` + +--- + +## Part 5: M&A Evaluation Frameworks + +### 5.1 M&A Strategic Rationale + +**Valid Reasons for M&A**: + +1. **Market Power** + - Increase market share + - Reduce competition + - Increase pricing power + +2. **Synergies** + - Revenue synergies (cross-sell, market access) + - Cost synergies (economies of scale, eliminate redundancies) + - Financial synergies (tax benefits, lower cost of capital) + +3. **Growth** + - Access new markets + - Acquire new products/technology + - Expand capabilities + +4. **Risk Reduction** + - Diversification + - Vertical integration (secure supply chain) + +**Invalid Reasons (Red Flags)**: +- Empire building (CEO ego) +- Following competitors blindly +- To use excess cash (there are better uses) +- To boost short-term earnings + +### 5.2 Target Identification and Screening + +**Ideal Target Profile**: +```markdown +## Target Company Profile + +### Strategic Fit +- [ ] Aligns with corporate strategy +- [ ] Fills capability gaps +- [ ] Provides market access +- [ ] Complements product portfolio +- [ ] Cultural compatibility + +### Financial Profile +- [ ] Revenue: $X - $Y +- [ ] Growth rate: >Z% +- [ ] EBITDA margin: >W% +- [ ] Manageable debt levels +- [ ] Clean financial history + +### Market Position +- [ ] #1 or #2 in their niche +- [ ] Defensible competitive advantages +- [ ] Strong customer relationships +- [ ] Quality brand/reputation + +### Operational Characteristics +- [ ] Scalable business model +- [ ] Strong management team +- [ ] Modern technology/systems +- [ ] Efficient operations +``` + +### 5.3 Valuation Methods + +**1. Comparable Company Analysis (Trading Multiples)** +``` +Enterprise Value = EBITDA × Industry Multiple +or +Equity Value = Revenue × Industry Multiple +``` + +**2. Precedent Transaction Analysis** +``` +Value = Recent M&A multiples in same industry +Typical premium: 20-30% over market price +``` + +**3. Discounted Cash Flow (DCF)** +``` +Present Value = Σ (Future Cash Flows / (1 + Discount Rate)^n) +Terminal Value = Final Year Cash Flow × Exit Multiple +Enterprise Value = PV + Terminal Value - Debt +``` + +**4. Asset-Based Valuation** +``` +Value = Total Assets - Total Liabilities +or +Liquidation Value = Assets at fire-sale prices - Liabilities +``` + +**Valuation Template**: +```markdown +## Target Valuation: [Company Name] + +### Trading Multiples (Comparable Companies) +Industry Average EV/EBITDA: 8.5x +Target EBITDA: $10M +**Implied Value: $85M** + +### Precedent Transactions +Recent deals in sector: 9.5x - 11.0x EBITDA +Average premium: 25% +**Implied Range: $95M - $110M** + +### DCF Analysis +Projected 5-year FCF: $8M, $10M, $12M, $14M, $15M +Terminal Value (Exit at 10x): $150M +WACC: 12% +**NPV: $92M** + +### Valuation Summary +| Method | Low | Mid | High | +|--------|-----|-----|------| +| Trading Multiples | $75M | $85M | $95M | +| Precedent Transactions | $95M | $103M | $110M | +| DCF | $85M | $92M | $100M | +| **Weighted Average** | **$85M** | **$93M** | **$102M** | + +### Recommended Offer Range: $88M - $96M +**Walk-Away Price: $105M** +``` + +### 5.4 Due Diligence Framework + +**Financial Due Diligence**: +- Historical financials (3-5 years) +- Quality of earnings +- Working capital analysis +- Debt and obligations +- Tax liabilities +- Revenue concentration +- Customer contracts + +**Legal Due Diligence**: +- Corporate structure +- Material contracts +- Intellectual property +- Litigation and disputes +- Regulatory compliance +- Employment agreements +- Environmental liabilities + +**Operational Due Diligence**: +- Business model validation +- Key processes and systems +- Technology infrastructure +- Supply chain dependencies +- Capacity and scalability +- Quality control +- Key personnel + +**Commercial Due Diligence**: +- Market position validation +- Customer satisfaction +- Competitive landscape +- Growth opportunities +- Sales pipeline +- Brand strength + +**Due Diligence Checklist**: +```markdown +## Due Diligence Checklist: [Target Company] + +### Financial (CFO Lead) +- [ ] 3-year audited financials reviewed +- [ ] Quality of earnings analysis complete +- [ ] Working capital normalized +- [ ] Debt schedule verified +- [ ] Tax returns reviewed +- [ ] Revenue recognition validated +- [ ] Customer concentration assessed +- [ ] **Red Flags**: [None / List] + +### Legal (General Counsel Lead) +- [ ] Corporate documents reviewed +- [ ] Material contracts identified +- [ ] IP portfolio assessed +- [ ] Litigation search complete +- [ ] Regulatory compliance verified +- [ ] Employment agreements reviewed +- [ ] Environmental review complete +- [ ] **Red Flags**: [None / List] + +### Operational (COO Lead) +- [ ] Process documentation reviewed +- [ ] Technology stack assessed +- [ ] Key systems tested +- [ ] Supply chain mapped +- [ ] Capacity analysis complete +- [ ] Quality metrics reviewed +- [ ] Key personnel identified +- [ ] **Red Flags**: [None / List] + +### Commercial (CMO Lead) +- [ ] Customer interviews conducted (top 10) +- [ ] Competitive position validated +- [ ] Market analysis updated +- [ ] Sales pipeline reviewed +- [ ] Pricing power assessed +- [ ] Brand perception evaluated +- [ ] **Red Flags**: [None / List] + +### Overall Assessment +**Go/No-Go**: [GO / NO-GO / RENEGOTIATE] +**Key Risks**: [List top 3] +**Deal-Breakers**: [Any identified] +**Value Adjustment**: [If any] +``` + +### 5.5 Synergy Analysis + +**Revenue Synergies**: +```markdown +| Opportunity | Year 1 | Year 2 | Year 3 | Total | +|-------------|--------|--------|--------|-------| +| Cross-sell to their customers | $1M | $3M | $5M | $9M | +| Up-sell our products | $0.5M | $2M | $4M | $6.5M | +| Geographic expansion | $0.5M | $1.5M | $3M | $5M | +| **Total Revenue Synergies** | **$2M** | **$6.5M** | **$12M** | **$20.5M** | + +Probability-Adjusted (70% success): $14.4M over 3 years +``` + +**Cost Synergies**: +```markdown +| Opportunity | Annual Savings | One-Time Cost | Net 3-Year | +|-------------|----------------|---------------|------------| +| Eliminate redundant positions | $2M | $0.5M | $5.5M | +| Consolidate offices | $0.5M | $1M | $0.5M | +| IT systems integration | $0.3M | $0.5M | $0.4M | +| Procurement savings | $0.4M | $0.1M | $1.1M | +| **Total Cost Synergies** | **$3.2M** | **$2.1M** | **$7.5M** | + +Probability-Adjusted (85% success): $6.4M over 3 years +``` + +**Synergy Valuation**: +``` +Total Synergies (PV): $18M +Less: Integration Costs: $5M +Less: Risk Adjustment (30%): $3.9M +Net Synergy Value: $9.1M + +Maximum Premium Justified by Synergies: $9.1M +``` + +--- + +## Part 6: Business Model Canvas + +**Purpose**: Visualize and design business model + +**Nine Building Blocks**: + +### 1. Customer Segments +Who are we creating value for? +- Mass market / Niche market / Segmented / Diversified / Multi-sided + +### 2. Value Propositions +What problem are we solving? +- Newness, Performance, Customization, Design, Brand, Price, Cost reduction, Risk reduction, Accessibility, Convenience + +### 3. Channels +How do we deliver value? +- Direct (sales force, web sales, owned stores) +- Indirect (partner stores, wholesaler) + +### 4. Customer Relationships +How do we interact with each segment? +- Personal assistance, Dedicated personal, Self-service, Automated, Communities, Co-creation + +### 5. Revenue Streams +How do we generate revenue? +- Asset sale, Usage fee, Subscription, Lending/Renting, Licensing, Brokerage, Advertising + +### 6. Key Resources +What assets do we need? +- Physical, Intellectual, Human, Financial + +### 7. Key Activities +What must we do? +- Production, Problem solving, Platform/Network + +### 8. Key Partnerships +Who helps us? +- Strategic alliances, Joint ventures, Suppliers, Coopetition + +### 9. Cost Structure +What are our main costs? +- Fixed costs, Variable costs, Economies of scale, Economies of scope + +**Business Model Canvas Template**: +```markdown +## Business Model Canvas: [Company Name] + +┌─────────────────┬─────────────────┬─────────────────┬─────────────────┐ +│ Key Partners │ Key Activities │ Value │ Customer │ +│ │ │ Propositions │ Relationships │ +│ • Partner 1 │ • Activity 1 │ │ │ +│ • Partner 2 │ • Activity 2 │ • Value prop 1 │ • Relationship 1│ +│ • Partner 3 │ • Activity 3 │ • Value prop 2 │ • Relationship 2│ +│ │ │ • Value prop 3 │ │ +│ ├─────────────────┤ ├─────────────────┤ +│ │ Key Resources │ │ Channels │ +│ │ │ │ │ +│ │ • Resource 1 │ │ • Channel 1 │ +│ │ • Resource 2 │ │ • Channel 2 │ +│ │ • Resource 3 │ │ • Channel 3 │ +├─────────────────┴─────────────────┴─────────────────┤ │ +│ Cost Structure │ Customer │ +│ │ Segments │ +│ • Cost driver 1 │ │ +│ • Cost driver 2 │ • Segment 1 │ +│ • Cost driver 3 │ • Segment 2 │ +│ │ • Segment 3 │ +│ ├─────────────────┤ +│ │ Revenue Streams │ +│ │ │ +│ │ • Stream 1: $X │ +│ │ • Stream 2: $Y │ +│ │ • Stream 3: $Z │ +└─────────────────────────────────────────────────────┴─────────────────┘ +``` + +--- + +## Part 7: Competitive Positioning + +### 7.1 Generic Competitive Strategies (Porter) + +**Three Generic Strategies**: + +1. **Cost Leadership** + - Be the low-cost producer + - Compete on price + - High volume, low margin + - Examples: Walmart, Southwest Airlines + +2. **Differentiation** + - Offer unique value + - Compete on features/quality + - Premium pricing + - Examples: Apple, Tesla + +3. **Focus (Niche)** + - Target specific segment + - Cost focus or differentiation focus + - Deep expertise in niche + - Examples: Ferrari, Lululemon + +**Strategic Positioning Map**: +``` + │ High Differentiation + │ + Premium Differentiated + │ │ +────┼─────────┼──────────► Cost + │ │ + Mass Low-Cost + Market Leader + │ + │ Low Differentiation +``` + +### 7.2 Competitive Advantage Sources + +**Sustainable Competitive Advantages**: + +1. **Proprietary Technology** + - Patents, trade secrets + - Examples: Pharma drugs, Tesla batteries + +2. **Network Effects** + - Value increases with users + - Examples: Facebook, Visa, eBay + +3. **Brand / Reputation** + - Customer loyalty, premium pricing + - Examples: Coca-Cola, Nike + +4. **Switching Costs** + - Expensive/difficult to switch + - Examples: SAP, Adobe Creative Suite + +5. **Scale Economies** + - Lower unit costs at scale + - Examples: Amazon, Costco + +6. **Regulatory Licenses** + - Government-granted monopolies + - Examples: Utilities, casinos + +**Advantage Sustainability Test**: +- Is it valuable? (Does it create value?) +- Is it rare? (Do few competitors have it?) +- Is it inimitable? (Hard to copy?) +- Is it organized? (Can we exploit it?) + +### 7.3 Positioning Statement + +**Template**: +``` +For [target customer] +Who [statement of need or opportunity] +[Product/brand name] is [product category] +That [statement of benefit] +Unlike [competitive alternative] +Our product [statement of primary differentiation] +``` + +**Example - Tesla**: +``` +For affluent, environmentally-conscious drivers +Who want performance without compromising values +Tesla is an electric vehicle +That delivers supercar performance with zero emissions +Unlike traditional luxury cars +Tesla provides cutting-edge technology, over-the-air updates, and a sustainable ownership experience +``` + +--- + +## Part 8: Scenario Planning + +**Purpose**: Prepare for multiple possible futures + +**Process**: + +**Step 1: Identify Focal Issue** +- What decision needs to be made? +- What time horizon matters? + +**Step 2: Key Driving Forces** +- Economic trends +- Technological changes +- Regulatory shifts +- Social/demographic changes +- Competitive dynamics + +**Step 3: Critical Uncertainties** +- Which forces are most uncertain? +- Which have highest impact? +- Typically: 2 dimensions create 4 scenarios + +**Step 4: Develop Scenarios** +- Create plausible, distinct futures +- Name each scenario memorably +- Develop detailed narratives + +**Step 5: Implications & Strategies** +- What does each scenario mean for us? +- What strategies work across scenarios? +- What are scenario-specific actions? + +**Scenario Framework Template**: +```markdown +## Scenario Planning: [Topic] +**Time Horizon**: [Year] + +### Critical Uncertainties +1. [Uncertainty 1]: Will [X] happen? (High impact, High uncertainty) +2. [Uncertainty 2]: Will [Y] accelerate? (High impact, High uncertainty) + +### Four Scenarios + +#### Scenario A: [Memorable Name] +**Uncertainty 1**: [Outcome A] +**Uncertainty 2**: [Outcome A] + +**Narrative**: [Story of how this future unfolds] + +**Implications for Our Business**: +- Market size: [Estimate] +- Key opportunities: [List] +- Major threats: [List] +- Required capabilities: [List] + +**Strategic Actions**: +- [ ] Action 1 +- [ ] Action 2 + +--- + +#### Scenario B: [Memorable Name] +**Uncertainty 1**: [Outcome A] +**Uncertainty 2**: [Outcome B] + +[Similar structure...] + +--- + +#### Scenario C: [Memorable Name] +[Similar structure...] + +--- + +#### Scenario D: [Memorable Name] +[Similar structure...] + +--- + +### Robust Strategies (Work across all scenarios) +1. [Strategy that works regardless] +2. [Strategy that works regardless] +3. [Strategy that works regardless] + +### Contingent Strategies (Scenario-specific) +| Trigger Signal | Action | Timeline | +|----------------|--------|----------| +| If [signal A observed] | Then [action X] | Within [timeframe] | +| If [signal B observed] | Then [action Y] | Within [timeframe] | + +### Monitoring Plan +- [ ] Track [leading indicator 1] monthly +- [ ] Review [metric 2] quarterly +- [ ] Reassess scenarios annually +``` + +--- + +## Part 9: Strategic Roadmapping + +**Purpose**: Translate strategy into actionable timeline + +**Time Horizons**: +- **Horizon 1** (0-12 months): Optimize core business +- **Horizon 2** (1-3 years): Build emerging opportunities +- **Horizon 3** (3-5 years): Create future options + +**Roadmap Structure**: +```markdown +## Strategic Roadmap: [Company Name] +**Planning Period**: [Year 1 - Year 3] + +### Horizon 1: Optimize Core (Next 12 Months) +**Objective**: Strengthen foundation and generate cash + +**Q1 2024**: +- Launch [Product Enhancement] +- Expand sales team from 5 to 10 reps +- Implement CRM system +- Target: $2M revenue, 20% growth + +**Q2 2024**: +- Enter [Adjacent Market] +- Achieve profitability +- Launch customer success program +- Target: $2.5M revenue, positive EBITDA + +**Q3 2024**: +- Release [Version 2.0] +- Open second office +- Hire VP of Marketing +- Target: $3M revenue, 15% margin + +**Q4 2024**: +- Strategic partnership with [Partner] +- Year-end: $11M total revenue, Series A fundraise + +--- + +### Horizon 2: Emerging Opportunities (Years 2-3) +**Objective**: Build next-generation offerings + +**Year 2 (2025)**: +- Develop [New Product Line] +- Expand internationally (UK, Germany) +- Acquire complementary startup +- Target: $20M revenue, 50% from new products + +**Year 3 (2026)**: +- Launch [Platform Version] +- Establish marketplace/ecosystem +- Strategic partnership with enterprise player +- Target: $35M revenue, market leader in niche + +--- + +### Horizon 3: Future Options (Years 4-5) +**Objective**: Position for transformational growth + +**Year 4-5 (2027-2028)**: +- Explore [Adjacent Industry] +- R&D investment in [Emerging Technology] +- Potential IPO or strategic exit +- Target: $60M+ revenue, category leader + +--- + +### Key Milestones +| Date | Milestone | Owner | Status | +|------|-----------|-------|--------| +| Q1 2024 | Product launch | CPO | ⏳ | +| Q2 2024 | Profitability | CFO | ⏳ | +| Q4 2024 | Series A close | CEO | ⏳ | +| Q2 2025 | International launch | CMO | ⏳ | +| Q4 2025 | Acquisition close | CEO | ⏳ | +| 2026 | Platform launch | CPO | ⏳ | +| 2028 | Liquidity event | Board | ⏳ | + +--- + +### Resource Allocation +| Horizon | % of Resources | Focus | +|---------|---------------|-------| +| H1 (Core) | 70% | Maximize existing business | +| H2 (Emerging) | 20% | Build future growth engines | +| H3 (Future) | 10% | Create options, experiment | + +--- + +### Strategic Themes (Across all horizons) +1. **Customer Obsession**: NPS >70 by 2025 +2. **Product Excellence**: Release velocity 2x by 2024 +3. **Operational Excellence**: 85%+ gross margin by 2026 +4. **Talent & Culture**: Top 10 best places to work by 2027 + +--- + +### Dependencies & Risks +| Dependency | Risk if Delayed | Mitigation | +|------------|----------------|------------| +| Series A funding | Delayed expansion | Bootstrap Q1-2, smaller raise | +| Key hire (VP Eng) | Product delays | Engage recruiters now, retention bonus | +| Partnership deal | Market access limited | Direct sales backup plan | +``` + +--- + +## Part 10: Change Management + +**Purpose**: Execute strategy through organizational transformation + +### Kotter's 8-Step Change Process + +1. **Create Urgency** + - Share market data showing need + - Highlight competitor threats + - Demonstrate burning platform + +2. **Build Guiding Coalition** + - Assemble leadership team + - Include diverse perspectives + - Ensure authority and influence + +3. **Form Strategic Vision** + - Clear picture of future + - Sensible strategy to achieve it + - Easy to communicate + +4. **Enlist Volunteer Army** + - Communicate vision broadly + - Inspire and engage employees + - Create champions throughout org + +5. **Enable Action by Removing Barriers** + - Remove obstacles + - Change systems and structures + - Empower broad-based action + +6. **Generate Short-Term Wins** + - Plan for visible wins + - Create early successes + - Recognize and reward progress + +7. **Sustain Acceleration** + - Use credibility to change systems + - Promote and develop change leaders + - Reinvigorate with new projects + +8. **Institute Change** + - Articulate connections between behaviors and success + - Develop means to ensure leadership development + - Embed in culture + +### Change Communication Plan + +**What to Communicate**: +- Why we're changing (burning platform) +- Where we're going (vision) +- How we'll get there (strategy) +- What's in it for me (individual impact) +- What happens next (timeline) + +**Communication Vehicles**: +- Town halls (for inspiration) +- Team meetings (for discussion) +- 1-on-1s (for individual concerns) +- Email updates (for consistency) +- Slack/Teams (for questions) +- Dashboard (for progress) + +**Frequency**: +- Major milestones: Town hall +- Weekly: Email update +- Monthly: Team meetings +- Quarterly: Strategy review + +--- + +## Best Practices Checklist + +### Strategy Development +- [ ] Based on deep market and competitive analysis +- [ ] Aligned with company capabilities and resources +- [ ] Clear choices made (what NOT to do) +- [ ] Stakeholder buy-in achieved +- [ ] Risk factors identified and mitigated +- [ ] Success metrics defined +- [ ] Realistic timeline with milestones + +### Vision & Mission +- [ ] Vision is inspirational and future-oriented +- [ ] Mission is clear and action-oriented +- [ ] Values are authentic and practiced +- [ ] Communicable and memorable +- [ ] Aligned throughout organization + +### Strategic Planning +- [ ] Multiple frameworks used (not just one) +- [ ] Data-driven with qualitative judgment +- [ ] Includes financial modeling +- [ ] Scenario planning for uncertainty +- [ ] Resource requirements identified +- [ ] Implementation roadmap created +- [ ] Governance and review process established + +### Execution +- [ ] OKRs/KPIs track progress +- [ ] Regular review cadence (monthly/quarterly) +- [ ] Transparent dashboards +- [ ] Accountability assigned +- [ ] Course corrections made quickly +- [ ] Wins celebrated and communicated + +--- + +**Version**: 1.0 +**Last Updated**: January 2025 +**Use Cases**: Corporate strategy, business planning, competitive analysis, growth strategy, M&A evaluation