Rodney Nelson M.A. C.Dir.

CEO and Principal of Governance

The Global Governance Group613-422-1295

nelson@globalgovernancegroup.com

Department of Canadian Studies

Carleton University

Lessons in Business Strategy Planning

Aboriginal Entrepreneurs ConferenceOttawa, 2011

Anishinabe

1. Strategic overview for business2. Planning and models3. Successes 4. Aboriginal business and traditions

Outline

"More of our youth are taking an interest in business, which is good to see. It is important for them to approach business from an understanding of the teachings and a good knowledge of who they are as Aboriginal people."

Elder Jim AlbertAlgonquin

Corporate Strategy

The overall scope and direction of a corporation and the way in which its various business operations work together to achieve particular goals. (Business Dictionary, 2011)

• Strategy is that which top management does that is of great importance to the organization.

• Strategy refers to basic directional decisions, that is, to purposes and missions.

• Strategy consists of the important actions necessary to realize these directions.

• Strategy answers the question: What should the organization be doing?

• Strategy answers the question: What are the ends we seek and how should we achieve them?George Steiner, a professor of management, The California Management Review

Who needs strategy and why?

• Any business large or small should have a strategic plan• Provides reassurance to investors• Clarifies operations to employees• Monitors performance• Reduces risks• Maintains vision

Dr. Chris Bart, Degroot School of Business

Strategy/ Planning

• Responsibility to the business and its investors

• Align other strategies with the corporate strategy

• Articulate activities• Measure the outcomes• Responsibility to the

employees/ community

Strategy and The Board of Directors

Canadian Securities Commission’s National Policy 58-201 — Corporate Governance Guidelines

Board Mandate: “The Board should adopt a written mandate in which it explicitly acknowledges responsibility for the stewardship of the issuer, including responsibility for… (b) adopting a strategic planning process and approving, on at least an annual basis, a strategic plan which takes into account, among other things, the opportunities and risks of the business”

Questions a Board Should Ask

• Is the strategy of the organization shared by all?• Does the strategy have or support the vision and

mission?• Does the strategy contain the corporate values?• Has the organization been realigned to support the

strategy?• Has there been a risk assessment of the plan?

• Are there any monitoring mechanisms to evaluate the strategy in place?

Internal Factors

• SWOT (strengths, weakness, opportunities and threats) in attaining the strategy

• Customer satisfaction• Employee satisfaction• Recruitment, retention and release• Measurement for employee performance in relation

to the strategy• Succession planning• Resistance to change

External Factors

• Fiscal analysis and reality• Political, economic, technological and social factors

that may impede the business• Customer market research• Benchmarking against the industry• Differentiation of product/ service analysis• Supplier chain and dependency• Growth/ demand analysis• Competitive analysis

Traditional Knowledge and Governance

Traditional guidance to strategy

• Seven generations philosophy• Tipi teachings• Medicine wheel• Sacred fires teachings• Turtle Island legend• Legend of Sky Woman• Totem poles• Long house teachings

In everything we do we must consider the impact

on the next seven generations

Wilfred Peltier, OdawaWikwemikong, Manitoulin Island

Traditions

Land

Family

EldersOral History

Community

Creator

Mother Earth

Ancestors

Children AnimalsPlants

Spirituality

The People

Corporate secret

• Strategy is key to all these organizations• Vision, Mission and Values all play a role• Inclusive strategic session

Sec

ret

Hire new

International

BusinessRecognition

PartnershipwithDMG

Market testresonator

Buy new

office

space

Buy out competition 1) Red Works Ltd.2) F.R.M.3) Objex

Increase sales!

Hire help!

New people

reduce our overhead

Get a point of sale system

Find a new SupplierFor ADMT fixer

Expand to Toronto and Montreal markets

Increase employeeSatisfactio

n and retention

Reduce bad press!

Create conflict of interest policyVisions to Actions

Values Exercise

Strategic Planning Exercise

20 Questions Directors Should Ask about...

20 Questions Directors Should Ask about Building a Board20 Questions Directors Should Ask about Codes of Conduct20 Questions Directors Should Ask about Crisis Management20 Questions Directors Should Ask about Crown Corporation

Governance20 Questions Directors Should Ask about Director Compensation20 Questions Directors Should Ask about Directors’ and Officers’

Liability Indemnification and Insurance20 Questions Directors Should Ask about Executive Compensation20 Questions Directors Should Ask about Governance Assessments20 Questions Directors Should Ask about Internal Audit (2nd Edition)20 Questions Directors Should Ask about IT20 Questions Directors Should Ask about Management’s Discussion

and Analysis20 Questions Directors Should Ask about Risk (2nd Edition)20 Questions Directors Should Ask about their Role in Pension Governance20 Questions Directors Should Ask about Special Committees20 Questions Directors Should Ask about Strategy (2nd Edition)20 Questions Directors and Audit Committees Should Ask about IFRS

Conversions

Chi-Miigwetch Thank You

Anishinabe

Rodney Nelson M.A. C.Dir.

CEO and Principal of Governance

The Global Governance Group613-422-1295

nelson@globalgovernancegroup.com

Department of Canadian Studies

Carleton University