Building A Profitable Barbershop Business at Airports
Barbershops at Airports
Traditionally, the barbershop in a residential community has been a destination and gathering place for men where they can openly discuss politics, watch sports or stock market news on TV, read the newspaper, network, get a cup of gourmet coffee, buy an imported cigar, and get a shoe shine. Barbershop and hair salons provide hair grooming services for the members of the community.
Barbershops at airports, however, are more of hospitality centers for men to relax and rejuvenate from the travails of travel or work, get haircut or shave improve their appearance and boost their confidence energizing them to go about their day-to-day business activities. Barbershops at airports belong to the class of specialty retail services. Specialty retail shopping experience is not a primary consideration for most visitors and passengers to the airport. Most specialty retail purchases are not planned expenditures; majority of these purchases are driven by impulse or opportunity. The specialty retail businesses that achieve the strongest sales typically complement the traditional existing airport merchandising mix, such as: food concessions, convenience stores, souvenirs and gifts, and comfort amenities, and fit the demographic profile of travelers, visitors, workers, and crew. As a result the value proposition must be compatible with and supportive of the purpose and goals of the prospective customers.
[TBD]
-customer value derived from specialty products (goods and services) -
Business Model
The barbershop business is a hair care service business in the personal care industry. It involves the transformation of the physical (hair) characteristics/properties of customers' head or facial hair of men. The desired outcomes include enhancing their appearance, confidence and sense of well-being of customers/clients. The hair grooming service involves shaping and shaving hair to enhance a person's aesthetic appeal. The service is performed by people - barbers - on people - clients - that are part of the hair grooming process.
Mission, Vision and Values
These are the public statements of the company's vision, mission and values. The vision statement usually describes some broad set of aspirations - what the organization aspires to look like in the future. The mission defines the basic purpose of the organization as well as its scope of operations; A clear mission statement sets the organization with a sense of purpose and provides long term direction. Core values define the organization in terms of the principles and values the leaders will follow in carrying out the activities of the organization.
Organizational Goals
Official goals are typically found in a company's mission and vision statement, and communicate the general purpose of the organization.
Our company's official goals are:
These types of goals are often qualitative, which means they are subjective and harder to measure.
Traditionally, the barbershop in a residential community has been a destination and gathering place for men where they can openly discuss politics, watch sports or stock market news on TV, read the newspaper, network, get a cup of gourmet coffee, buy an imported cigar, and get a shoe shine. Barbershop and hair salons provide hair grooming services for the members of the community.
Barbershops at airports, however, are more of hospitality centers for men to relax and rejuvenate from the travails of travel or work, get haircut or shave improve their appearance and boost their confidence energizing them to go about their day-to-day business activities. Barbershops at airports belong to the class of specialty retail services. Specialty retail shopping experience is not a primary consideration for most visitors and passengers to the airport. Most specialty retail purchases are not planned expenditures; majority of these purchases are driven by impulse or opportunity. The specialty retail businesses that achieve the strongest sales typically complement the traditional existing airport merchandising mix, such as: food concessions, convenience stores, souvenirs and gifts, and comfort amenities, and fit the demographic profile of travelers, visitors, workers, and crew. As a result the value proposition must be compatible with and supportive of the purpose and goals of the prospective customers.
[TBD]
-customer value derived from specialty products (goods and services) -
Business Model
The barbershop business is a hair care service business in the personal care industry. It involves the transformation of the physical (hair) characteristics/properties of customers' head or facial hair of men. The desired outcomes include enhancing their appearance, confidence and sense of well-being of customers/clients. The hair grooming service involves shaping and shaving hair to enhance a person's aesthetic appeal. The service is performed by people - barbers - on people - clients - that are part of the hair grooming process.
Mission, Vision and Values
These are the public statements of the company's vision, mission and values. The vision statement usually describes some broad set of aspirations - what the organization aspires to look like in the future. The mission defines the basic purpose of the organization as well as its scope of operations; A clear mission statement sets the organization with a sense of purpose and provides long term direction. Core values define the organization in terms of the principles and values the leaders will follow in carrying out the activities of the organization.
Organizational Goals
Official goals are typically found in a company's mission and vision statement, and communicate the general purpose of the organization.
Our company's official goals are:
- To be successful, profitable and most recognizable airport personal care service brand
- To be a destination airport location for passengers and workers at airports to get their hair care needs taken care of.
- To be rated #1 in personal care service business and recognized as a reliable and high quality provider of personal care services.
- To be successful and beat competitors at generating revenue, increase in market share.
These types of goals are often qualitative, which means they are subjective and harder to measure.
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Formulation
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Implementation
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Execution
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Evaluation & Control
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SWOT Analysis
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Strategy Formulation
The strategy content resulting from the strategy formulation process describes the intended strategy - strategy hierarchy - of the barbershop at O'Hare airport. The strategy hierarchy seeks to address a basic strategic problem underlying the observed strategic issues/priorities that need to be solved to achieve the mission.
Corporate Level Strategy
Corporate strategy is concerned with choices regarding strategic positioning and direction, and creating corporate advantage through adding up value to corporate whole more than the sum of its business units. Corporate strategy decisions and choices determine the long-term orientation of organization development, and corporate activities that evaluate current market positions and identifies investment priorities for the businesses.
A corporate strategy entails a clearly defined, long-term vision that organizations set, seeking to create corporate value and motivate the workforce to implement the proper actions to achieve customer satisfaction. Corporate strategy is concerned with creating enterprise advantage through adding value to the organization as a whole. It is concerned with a company's growth and profit performance, consequently the corporate strategy informs key strategic decisions such as:
Vision Statement
This defines what the organization aspires to look like in the future.
Mission Statement
The mission statement describes the purpose and reason for the organization to exist. The mission defines the kinds of things the organization wants to achieve - the role the organization will play in the business environment as defined by its products (goods and services) the organization will provide and for whom.
A mission statement establishes the organization's future course and outlines who we are, what we do, and where the organization needs to be headed - in effect, setting the organization with a sense of purpose, providing long-term direction, and establishing a clear mission of "what we want to achieve".
Values
Every organization has values, and these values should be coherent with the strategy. These values are shared by the Board and staff, strongly held and not easily changed. They are the essence of the company’s culture and expression of its “personality.” The core values of the company are:
The core values define the organization in terms of the principles and values the leaders will follow in carrying out the activities of the organization.
Position Statement
The Barbershop at O'Hare position statement describes the positioning of our brand from the viewpoint of how it addresses the strategic issues that need to be solved in order to achieve our mission. The statement describes our target market and a compelling picture of how we want that market to perceive our brand. We want our customers to associate our brand with product quality, convenience of access and customer intimacy. Our target customers are people on the go and schedule driven - either travel schedules or work schedules. Our target customers have limited time to have their needs met, but they want high quality haircuts or shaves and exceptional barbershop experience. We offer service packages designed to appeal to the needs, desires, and taste of our target market, and a sense of well-being nd relaxed confidence they get from consuming our service.
[TBD]
Business Strategy
Business strategy is concerned with how the organization competes within a specific industry/market. It involves decisions and choices regarding competitors, and the nature of competition and competitive advantage. It involves formulating responses to changes in the industry, crafting competitive moves and market approaches leading to sustainable competitive advantage by building valuable, rare and hard to copy competencies and capabilities. The focus is to create competitive advantage through increasing the difference between buyer's willingness-to-pay and supplier's willingness-to-sell, and in the same time being greater than the same competitors difference. Business level strategy is primarily concerned with how the shop competes successfully in a particular market.
The business strategy options for the Barbershop include:
[TBD]
The organization's competitive advantage is our value proposition - saving customers valuable time and cost by avoiding the costly trips and the hours in time spent waiting at the local barbershop at home.
Operations Strategy
Operations strategy is the decisions which shape the long-term capabilities of the company's operations and their contribution to overall strategy trough the ongoing reconciliation of market requirements and operations resources. Operational strategies refers to the methods companies use to reach their objectives. By developing operational strategies, a company can examine and implement effective and efficient systems for using resources, personnel and the work process.
Strategy Statement
The primary objective of the Barbershop at O'Hare Airport is to maximize shareholder value by increasing brand awareness in our first year when entering a new market - airport with no existing barbershops - by focusing on educating potential customers about our vision, demonstrating thought leadership about customers' problems and our solutions to fix. And focus on increasing revenue by maximizing the market share we capture, after the first year, from competitors when entering an existing market.
The scope of our strategy is to establish the business direction and focus of the organization. The scope encompasses statements about choices/decisions on the target customers, product offering, (geographic) locations and vertical integration. Our target customers include people working or travelling at airports who are crunched for time because of travel or work schedule demands but need/want high quality head/facial hair grooming. We offer service packages tailored to the needs of our target customer segments at locations in the airport that is convenient and easily accessible to our target customers. Our business model is vertical integration of service production, sales and marketing, and production facilities under one management.
Our value proposition is saving our customers time and freeing them up when they get home to spend quality time with family instead of in a barbershop on their off days. And unmatched convenience and ease of access. We provide quick and timely haircuts and shaves of superior quality for men on the go at easily accessible location at the airport and within the time constraints imposed by their (travel or work) schedules.
Our brand is distinguished from our rivals by convenience of access, fast and high quality product, and exceptional service experience. in a clean and relaxing environment at the airport close to their work areas, or boarding and baggage claim areas. We intend to create sustainable competitive advantage through a combination of corporate advantage, business advantage and operations advantage. Our corporate advantage derives from comparative advantage at the corporate level on unique geographic location at the airport, invest in developing core competencies in grooming techniques that enable us to provide uniquely fast and high-quality haircuts with styling and shaves for all hair types. Our business advantage derives from differential advantage based on differentiation-focus strategy. And our operations advantage is derived from comparative advantage based on economies of scale.
Scope
The scope of our strategy encompasses the following dimensions:
The scope establishes the business direction and focus of the organization.
Strategic Goals
A strategic goal names (refers to) results that the organization wants to change in order to better meet the mission goals, and help resolve strategic issues. Strategic goals are goals the organization is trying to achieve in a certain period of time, at some future date through solutions to identified strategic issues. They are long-term goals that define what needs to change in the long-term for the organization to be successful. Strategic goals define a place - destination or focus area - where the organization wants to be, and they are comprised of corporate level strategic goals, and business level strategic goals. These goals include:
These goals influence the overall direction of the organization. These are goals that take a long time to achieve and involves a lot of planning as it takes into account all aspects of the organization environmental factors such as social, economic, political, etc.
Strategic Objectives
Strategic objectives are the big-picture goals for the company: they describe what the company will do to try to fulfill its mission. Strategic objectives are derived from strategic goals, and are more specific, quantitative, and ,measurable ideas on how the organization will achieve its goals.
[TBD]
Key Critical Success Factors
Critical Success Factors (CSF) refer to aspects of a business that are identified as vital for successful targets to be reached and maintained.
The Critical Success Factors for the barbershop at airports include:
In any organization, certain factors will be critical to the success of that organization, in the sense that, if objectives associated with the elements are not achieved, the organization will fail.
The strategy content resulting from the strategy formulation process describes the intended strategy - strategy hierarchy - of the barbershop at O'Hare airport. The strategy hierarchy seeks to address a basic strategic problem underlying the observed strategic issues/priorities that need to be solved to achieve the mission.
Corporate Level Strategy
Corporate strategy is concerned with choices regarding strategic positioning and direction, and creating corporate advantage through adding up value to corporate whole more than the sum of its business units. Corporate strategy decisions and choices determine the long-term orientation of organization development, and corporate activities that evaluate current market positions and identifies investment priorities for the businesses.
A corporate strategy entails a clearly defined, long-term vision that organizations set, seeking to create corporate value and motivate the workforce to implement the proper actions to achieve customer satisfaction. Corporate strategy is concerned with creating enterprise advantage through adding value to the organization as a whole. It is concerned with a company's growth and profit performance, consequently the corporate strategy informs key strategic decisions such as:
Vision Statement
This defines what the organization aspires to look like in the future.
- "Our vision is to make everyday life of people better."
Mission Statement
The mission statement describes the purpose and reason for the organization to exist. The mission defines the kinds of things the organization wants to achieve - the role the organization will play in the business environment as defined by its products (goods and services) the organization will provide and for whom.
- "our mission is provide high quality, timely and fast quick service personal care service products to improve the appearance and wellness of people - airline passengers and workers - at airports."
A mission statement establishes the organization's future course and outlines who we are, what we do, and where the organization needs to be headed - in effect, setting the organization with a sense of purpose, providing long-term direction, and establishing a clear mission of "what we want to achieve".
Values
Every organization has values, and these values should be coherent with the strategy. These values are shared by the Board and staff, strongly held and not easily changed. They are the essence of the company’s culture and expression of its “personality.” The core values of the company are:
- Integrity - Always doing what we say we will, and striving for excellence and quality in everything we do.
- Honesty - Being open and transparent in all our dealings and maintaining the highest integrity at all times.
- Dedication - Working with urgency and commitment to be successful from individual and company perspectives. Time frames are always met regardless of personal circumstances.
- Reliability - Consistently fulfilling obligations in a timely and satisfactory manner; takes responsibility for personal actions and performance.
- Stewardship - We do business in a way that is socially, economically, and environmentally responsible.
- Ownership - Taking ownership of our customer’s needs and being accountable for delivering friendly and professional service.
The core values define the organization in terms of the principles and values the leaders will follow in carrying out the activities of the organization.
Position Statement
The Barbershop at O'Hare position statement describes the positioning of our brand from the viewpoint of how it addresses the strategic issues that need to be solved in order to achieve our mission. The statement describes our target market and a compelling picture of how we want that market to perceive our brand. We want our customers to associate our brand with product quality, convenience of access and customer intimacy. Our target customers are people on the go and schedule driven - either travel schedules or work schedules. Our target customers have limited time to have their needs met, but they want high quality haircuts or shaves and exceptional barbershop experience. We offer service packages designed to appeal to the needs, desires, and taste of our target market, and a sense of well-being nd relaxed confidence they get from consuming our service.
[TBD]
Business Strategy
Business strategy is concerned with how the organization competes within a specific industry/market. It involves decisions and choices regarding competitors, and the nature of competition and competitive advantage. It involves formulating responses to changes in the industry, crafting competitive moves and market approaches leading to sustainable competitive advantage by building valuable, rare and hard to copy competencies and capabilities. The focus is to create competitive advantage through increasing the difference between buyer's willingness-to-pay and supplier's willingness-to-sell, and in the same time being greater than the same competitors difference. Business level strategy is primarily concerned with how the shop competes successfully in a particular market.
The business strategy options for the Barbershop include:
- Offer Quick Service haircuts and shaves tailored for people on the go. The target group are passengers, and airline/airport employees.
- Compete on high-quality, timely and fast haircuts and shaves tailored to each customers preferences, facial bone structure.
[TBD]
The organization's competitive advantage is our value proposition - saving customers valuable time and cost by avoiding the costly trips and the hours in time spent waiting at the local barbershop at home.
Operations Strategy
Operations strategy is the decisions which shape the long-term capabilities of the company's operations and their contribution to overall strategy trough the ongoing reconciliation of market requirements and operations resources. Operational strategies refers to the methods companies use to reach their objectives. By developing operational strategies, a company can examine and implement effective and efficient systems for using resources, personnel and the work process.
- Market Penetration - Capturing a larger share of the target market.
- Increase the number of new customers that are airport employees
- Attract customers away from competitors
- Increase number of new customers that are managers or professionals working at the airport
- Add more value to existing customers - Up sell
- Product Development Strategy - Better service process that increases customer satisfaction rating and builds loyaly and referral business.
- Eliminate long lines of customers waiting for service.
- Reduce waiting list
- Improve Supply Chain - The process of creating a product via the delivery.
- Improve costs in creating the product
- Make delivery of product more efficient
- [TBD]
Strategy Statement
The primary objective of the Barbershop at O'Hare Airport is to maximize shareholder value by increasing brand awareness in our first year when entering a new market - airport with no existing barbershops - by focusing on educating potential customers about our vision, demonstrating thought leadership about customers' problems and our solutions to fix. And focus on increasing revenue by maximizing the market share we capture, after the first year, from competitors when entering an existing market.
The scope of our strategy is to establish the business direction and focus of the organization. The scope encompasses statements about choices/decisions on the target customers, product offering, (geographic) locations and vertical integration. Our target customers include people working or travelling at airports who are crunched for time because of travel or work schedule demands but need/want high quality head/facial hair grooming. We offer service packages tailored to the needs of our target customer segments at locations in the airport that is convenient and easily accessible to our target customers. Our business model is vertical integration of service production, sales and marketing, and production facilities under one management.
Our value proposition is saving our customers time and freeing them up when they get home to spend quality time with family instead of in a barbershop on their off days. And unmatched convenience and ease of access. We provide quick and timely haircuts and shaves of superior quality for men on the go at easily accessible location at the airport and within the time constraints imposed by their (travel or work) schedules.
Our brand is distinguished from our rivals by convenience of access, fast and high quality product, and exceptional service experience. in a clean and relaxing environment at the airport close to their work areas, or boarding and baggage claim areas. We intend to create sustainable competitive advantage through a combination of corporate advantage, business advantage and operations advantage. Our corporate advantage derives from comparative advantage at the corporate level on unique geographic location at the airport, invest in developing core competencies in grooming techniques that enable us to provide uniquely fast and high-quality haircuts with styling and shaves for all hair types. Our business advantage derives from differential advantage based on differentiation-focus strategy. And our operations advantage is derived from comparative advantage based on economies of scale.
Scope
The scope of our strategy encompasses the following dimensions:
- Target Customers - Our target market include passengers and airport/airline employees. Within this market we have target customer segments such as: airline passengers (value voyagers, and indulgent explorers), commuting crew, airport and airline workers of certain demographics that take their hair styling seriously. Airline passenger category can be further broken down into sub-categories based of buying behavior. The sub-categories include: indulgent explorers, all business road warriors, value voyagers, frugal travelers, foreign travelers. Research also shows that a significant percent of men would like to get their head/facial haircuts/shaves done while at work. We anticipate some impulse buying from passengers as well as airport/airline employees.
- Product Offering - We offer hair grooming services - haircuts or shaves - at the airport for arriving, departing or connecting male passengers; and male workers at O'Hare airport. Having head/facial haircuts or shaves at airports is not a primary consideration of most airline passengers or workers at the airport. There are, however, extenuating circumstances that lead to male passengers to needing our services. Typically, for arriving passengers, the need for head/facial hair grooming may arise as a result of any one of the following factors: need to freshen up to attend a business/social event. For departing passengers, the buying behavior may be driven by a desire to get a haircut or shave in the US before embarking on an international trip.
- Geographic Location - The shop has two (2) locations: pre-security location for arriving passengers and airport workers, and post-security location for departing customers and connecting passengers as well as connecting crew.
- Vertical Integration - The Barbershop at O'Hare airport is be vertically integrated business model providing coporate portfolio management, marketing, service production, service delivery and customer service under single management entity.
The scope establishes the business direction and focus of the organization.
Strategic Goals
A strategic goal names (refers to) results that the organization wants to change in order to better meet the mission goals, and help resolve strategic issues. Strategic goals are goals the organization is trying to achieve in a certain period of time, at some future date through solutions to identified strategic issues. They are long-term goals that define what needs to change in the long-term for the organization to be successful. Strategic goals define a place - destination or focus area - where the organization wants to be, and they are comprised of corporate level strategic goals, and business level strategic goals. These goals include:
- Improve financial position - Securing funding through loans, or self funding by retained earnings.
- Increase revenue(s)
- Enhance existing organization capability
- Increase profitability
- Increase customer satisfaction
- Increase employee satisfaction
These goals influence the overall direction of the organization. These are goals that take a long time to achieve and involves a lot of planning as it takes into account all aspects of the organization environmental factors such as social, economic, political, etc.
Strategic Objectives
Strategic objectives are the big-picture goals for the company: they describe what the company will do to try to fulfill its mission. Strategic objectives are derived from strategic goals, and are more specific, quantitative, and ,measurable ideas on how the organization will achieve its goals.
- Grow market share of services to commuting crew and airport non-management workforce
- Increase market share
- Increase share of wallet
- Improve employee retention
- Attract and retain best people
- Develop leadership abilities and potential of the team
[TBD]
Key Critical Success Factors
Critical Success Factors (CSF) refer to aspects of a business that are identified as vital for successful targets to be reached and maintained.
The Critical Success Factors for the barbershop at airports include:
- Building Relationships – Sales requires extensive community contacts and positive customer relationships to achieve desired sales targets.
- Human Resource Management – Align incentives and rewards with employee roles for increased employee satisfaction.
- Enabling Strong Customer Referrals – Increasing market share in our target markets (customer segments) through current customers.
- Customer Service Focus – Customer is always right; be service oriented when working with customers. Customer service targets for customer satisfaction requires team culture of respect for the customer.
- Leadership Development – Management and employees developing strong leadership capacity
In any organization, certain factors will be critical to the success of that organization, in the sense that, if objectives associated with the elements are not achieved, the organization will fail.
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Strategy Implementation
Strategy implementation consists of all the decisions and activities under taken at all levels in the organization required to produce strategic assets as the result of executing the strategic initiatives - programs and projects - successfully that close the implementation gap (difference between the future capacity/capability development that the strategy calls for, and the current endowment of resources, and capabilities- policies, and governance mechanisms - and can be deployed into operations to successfully turn the selected strategy (strategic choice) into action and executed to reach desired outcomes -reality. There are two (2) aspects to Implementation, planning and execution of the plan.
Implementation Planning
Strategy implementation is planning is the process of translating the chosen strategy into strategic objectives and goals that drive organizational actions/methods that, if followed in execution, would realize the strategic choice(s) to reach the desired outcomes.
Establish Annual Objectives - Set Clear Goals and Define Key Variables
The strategic objectives are derived from strategic goals, giving more specific ideas on how the organization will achieve its goals.
Identify and define the goals that the strategy should achieve. The key strategic objectives for the barbershop include:
The objectives define common areas of focus for an organization that guide management decisions and actions in order for the organization to achieve its goals. These common areas of focus includes market share, financial resources, physical resources/assets, productivity, innovation, and action planning. Objectives defined for these areas of focus must be prioritized; each business organization having a prioritization unique to it. The strategic objectives provide measures of change to bring about the achievement of the desired outcomes.
Determine Roles and Responsibilities
Once you have determined the goals you are working towards and the variables that might get youon your way; build a road map for achieving those goals. Set expectations among the team, and clearly communicate your implementation plan.
Delegate the Work
Once you know what needs to be done to ensure success,determine "who" needs to do "what" and "when". Refer to your time lines and list of goals, and delegate tasks tp appropriate team members.
Execute the Plan
This involves monitoring progress and performance, and providing continued support.
Take Corrective Action (Adjust o Revise, as necessary)
Implementation is an iterative process, so the work doesn’t stop as soon as you think you’ve reached your goal. Processes can change mid-course, and unforeseen issues or challenges can arise. Sometimes, your original goals will need to shift as the nature of the project itself changes.
Get Closure on the Project, and Agreement on the Output
Everyone on the team should agree on what the final product should look like based on the goals set at the beginning. When you’ve successfully implemented your strategy, check in with each team member and department to make sure they have everything they need to finish the job and feel like their work is complete.
Review
Once your strategy has been fully implemented, look back on the process and evaluate how things went. Ask yourself questions like:
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If the corporation has the capabilities, enterprise advantage, and business portfolio it wants its corporate strategy is implemented. If the business unit has the customers, value proposition, and skills it has chosen to have, its business strategy is also fully implemented. Technically, a strategy can never actually be fully implemented because everything that was necessarily assumed when formulating the strategy - about customers, technology, regulation, labor market, competitors, and so on - is in a constant state of flux. There will always be a gap between where the company is and what its strategy call for. Closing this gap is implementation.
Closing the implementation gap involves capacity/capability develop is a perpetually evolving process of growth and positive change. At the heart of this capacity building process, is a set of functional capabilities. These are the essential management skills that allows for planning, implementing, and monitoring and evaluating initiatives for growth.
Policies
Salon/Barbershop policies are a set of rules and principles that guide how you carry out various actions in your business. Your policies also shape the processes and decisions you make in your salon and can serve as a handy reference for your clients and employees. Creating salon policies and procedures allow you to safeguard against unwanted or unexpected scenarios. Part of owning a service-based business means dealing with the ups and downs of managing staff and dealing with clients.
Client Engagement Policies
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Policies for Employees
Policies for staff are a little easier to get across and can simply be added to any onboarding documentation when staff is hired and listed in the break room so that it is clear what is expected of staff when they are at the salon.
There are many rules and policies that you can enforce on your staff. Below is a nice long list of suggestions:
[TBD]
Short-Term Objectives
The objectives detail what will be accomplished in relation to each goal. The purpose of setting objectives is to convert managerial statements of business mission and company direction into specific performance targets/goals (something the organization's progress can be measured by). An outcome determines whether the organization was successful in achieving its objectives. Objectives provide specific milestones with specific timeline for achieving a goal. The attainment of each goal may require a number of objectives to be reached.
Annual Objectives
The strategic objectives are measures of change to bring about the achievement of the desired goals defined above; and whose achievement is deemed most important to the current and future health and performance of the business organization. Objectives provide specific milestones with specific timeline for achieving a goal. The attainment of each goal may require a number of objectives to be reached.
The strategic objectives for the barbershop include:
The objectives detail what will be accomplished in relation to each goal. The strategic objectives are outcomes desired by the owners and top management and whose achievement is deemed most important to the current and future health and performance of the business organization. The purpose of setting objectives is to convert managerial statements of business mission and company direction into specific performance targets/goals (something the organization's progress can be measured by).
Strategic Issues and Priorities
Strategic issues are fundamental policy questions affecting the organization's mandates, mission and values, product-mix/service-mix, clients, users or payers, cost, financing, management or organization design. Strategic issue is an issue that must be resolved if the organization is to achieve its mission; and they are recorded in an Agenda as follows.
The organizational goals provide the context for analysis of strategic issues to determine problems to solve. Identify and resolve issues facing the organization and prioritize them relative to the relevance and importance to success.
Action Planning
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Summary - Strategy and Implementation
The strategy and implementation elements are organization and individual level capabilities such as:
Key Success Factors
The key to success in the businesses are:
Outcomes Analysis
Outcomes analysis takes the objectives and resulting data to see if the desired result was achieved. In addition, it reviews any ancillary information that might pertain to the objective's impact (outcome). An organization might not achieve an outcome because of unforeseen external events; this information is evaluated to plan for further objectives and potential unforeseen risks to success.
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All organizations are endowed with an initial set of resources which they employ to create output such as policies, rules, etc., which in turn guide the creation and delivery of value (products and services) to customers.
Organizations' management typically establish Organization Goals that are strategic objectives outlining expected outcomes to guide employees' efforts. They help define a company's purpose, assist its business growth, and guide efforts to achieve its financial objectives.
Strategic priorities are a part of the core culture; they are the values aligned with the organization's vision and goals. They can be uncovered by understanding what the organization needs to focus on and pay attention to in order to achieve its business goals.
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Strategy Implementation Gap
Strategic gap analysis attempts to determine what a company should do differently to achieve a particular goal by looking at the time frame, management, budget and other factors to determine where shortcomings lies. After conducting this analysis, the company should develop an implementation plan of the strategic initiatives and programs to pursue to eliminate the gaps.
Strategic Gap Analysis
The strategic gap is the result if you assess the difference between what a company must do to realize its potential from what it is currently doing. Closing this gap is essential to attain and sustain competitive advantage. As such performing a strategic gap analysis can point to potential arras for improvement and what resources (money, time, and personnel) are required to achieve the strategic goals. Typically, the gap between the strategic plan and its implementation is caused by missing integrative links such as:
Strategic gap analysis allows a company or organization to determine whether it is getting the best return out of its resources and abilities.
Strategy Implementation Tasks
Successful strategy implementation involves several tasks including:
Successful implementation may result in changes to one or more of the elements of the organization's operating model, and action plans that realize the organization's goals and objectives. Implementation involves every member of the organization playing an active role in combining efforts and resources to realize the business's common objective. It involves
Strategy implementation consists of all the decisions and activities under taken at all levels in the organization required to produce strategic assets as the result of executing the strategic initiatives - programs and projects - successfully that close the implementation gap (difference between the future capacity/capability development that the strategy calls for, and the current endowment of resources, and capabilities- policies, and governance mechanisms - and can be deployed into operations to successfully turn the selected strategy (strategic choice) into action and executed to reach desired outcomes -reality. There are two (2) aspects to Implementation, planning and execution of the plan.
Implementation Planning
Strategy implementation is planning is the process of translating the chosen strategy into strategic objectives and goals that drive organizational actions/methods that, if followed in execution, would realize the strategic choice(s) to reach the desired outcomes.
Establish Annual Objectives - Set Clear Goals and Define Key Variables
The strategic objectives are derived from strategic goals, giving more specific ideas on how the organization will achieve its goals.
Identify and define the goals that the strategy should achieve. The key strategic objectives for the barbershop include:
- Increase growth in sales volume by 50% to 126 clients' visits to shop per week by end of December 2018. - [Goal: #2]
- Increase growth in revenue by 50% to $165k by end of December 2018. - [Goal: #2]
- Maintain profitability - maintain profit margins by bundling services to sell to current customer base at higher and charging higher prices. - [Goal: #1]
- Increasing share of airport workers market by 50%. In order to grow, the business needs to increase its share of competitive markets. - [Goal: #2]
The objectives define common areas of focus for an organization that guide management decisions and actions in order for the organization to achieve its goals. These common areas of focus includes market share, financial resources, physical resources/assets, productivity, innovation, and action planning. Objectives defined for these areas of focus must be prioritized; each business organization having a prioritization unique to it. The strategic objectives provide measures of change to bring about the achievement of the desired outcomes.
Determine Roles and Responsibilities
Once you have determined the goals you are working towards and the variables that might get youon your way; build a road map for achieving those goals. Set expectations among the team, and clearly communicate your implementation plan.
- Document all the resources available including: employees, teams, and departments that will be involves.
- Define roles and responsibilities required for achieving the objectives.
- Establish a communication process that everyone should sdhere to.
Delegate the Work
Once you know what needs to be done to ensure success,determine "who" needs to do "what" and "when". Refer to your time lines and list of goals, and delegate tasks tp appropriate team members.
Execute the Plan
This involves monitoring progress and performance, and providing continued support.
Take Corrective Action (Adjust o Revise, as necessary)
Implementation is an iterative process, so the work doesn’t stop as soon as you think you’ve reached your goal. Processes can change mid-course, and unforeseen issues or challenges can arise. Sometimes, your original goals will need to shift as the nature of the project itself changes.
Get Closure on the Project, and Agreement on the Output
Everyone on the team should agree on what the final product should look like based on the goals set at the beginning. When you’ve successfully implemented your strategy, check in with each team member and department to make sure they have everything they need to finish the job and feel like their work is complete.
Review
Once your strategy has been fully implemented, look back on the process and evaluate how things went. Ask yourself questions like:
- Did we achieve our goals?
- If not, why? What steps are required to get us to those goals?
- What roadblocks or challenges emerged over the course of the project that could have been anticipated? How can we avoid these challenges in the future?
- In general, what lessons can we learn from the process?
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If the corporation has the capabilities, enterprise advantage, and business portfolio it wants its corporate strategy is implemented. If the business unit has the customers, value proposition, and skills it has chosen to have, its business strategy is also fully implemented. Technically, a strategy can never actually be fully implemented because everything that was necessarily assumed when formulating the strategy - about customers, technology, regulation, labor market, competitors, and so on - is in a constant state of flux. There will always be a gap between where the company is and what its strategy call for. Closing this gap is implementation.
Closing the implementation gap involves capacity/capability develop is a perpetually evolving process of growth and positive change. At the heart of this capacity building process, is a set of functional capabilities. These are the essential management skills that allows for planning, implementing, and monitoring and evaluating initiatives for growth.
Policies
Salon/Barbershop policies are a set of rules and principles that guide how you carry out various actions in your business. Your policies also shape the processes and decisions you make in your salon and can serve as a handy reference for your clients and employees. Creating salon policies and procedures allow you to safeguard against unwanted or unexpected scenarios. Part of owning a service-based business means dealing with the ups and downs of managing staff and dealing with clients.
Client Engagement Policies
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- Cancellation Policy
- Latecomer Policy
- No Show Policy
- Kids Policy
- Refund Policy
- Privacy Policy
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Policies for Employees
Policies for staff are a little easier to get across and can simply be added to any onboarding documentation when staff is hired and listed in the break room so that it is clear what is expected of staff when they are at the salon.
There are many rules and policies that you can enforce on your staff. Below is a nice long list of suggestions:
- Staff is expected to arrive on time, ready to start work. Multiple late arrivals could result in dismissal.
- Workspaces and common areas are to be kept tidy. All staff are expected to clean up after themselves.
- No drama in the salon.
- The use of drugs or alcohol at work will result in dismissal.
- When calling in sick, management must be notified with ample time to find a replacement.
- Staff is expected to keep appearance tidy and professional at all times.
- Professionalism is expected, always. Staff is never to argue with customers.
- Staff is expected to treat one another with respect and professionalism at all times.
- Cell phone use is only permitted on breaks.
- If you are sick, stay home.
- Theft is not tolerated. Removing anything that is not yours from the premises without permission will result in termination.
- Customers are to be greeted as soon as they walk in the salon.
- Staff is to always be polite, friendly and upbeat with customers.
- Staff is expected to participate in all team meetings and training sessions.
- Staff is expected to recommend products and upsell where possible.
[TBD]
Short-Term Objectives
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- Reduction in number of unhappy customers by 50% by end of December 2018. - [Goal: #5]
- Increase customer referrals by 40% by end of December 2018. - [Goal: #5]
- Increase customer retention by 95% by end of December 2018. - [Goal: #5]
- Increase membership in loyalty program by 50% by December 2018. - [Goal: #5]
- Develop, where applicable, best practices in barbershop related operations and customer service/care.
- Develop methodologies for promoting the barbershop to airport authorities.
- Establish baseline metrics by which the City and the airport authority can evaluate barbershop performance.
- Forecast potential 5-, 10-, and 20-year demand for O'Hare Airport.
- Quantify and define the relationship between air-side and land-side issues as they impact the growth of barbershop usage.
- Earn at least a 25% after-tax-rate of return on investment during next year.
- Reduce waiting time for walk-in customers to maximum of 10 minutes.
The objectives detail what will be accomplished in relation to each goal. The purpose of setting objectives is to convert managerial statements of business mission and company direction into specific performance targets/goals (something the organization's progress can be measured by). An outcome determines whether the organization was successful in achieving its objectives. Objectives provide specific milestones with specific timeline for achieving a goal. The attainment of each goal may require a number of objectives to be reached.
Annual Objectives
The strategic objectives are measures of change to bring about the achievement of the desired goals defined above; and whose achievement is deemed most important to the current and future health and performance of the business organization. Objectives provide specific milestones with specific timeline for achieving a goal. The attainment of each goal may require a number of objectives to be reached.
The strategic objectives for the barbershop include:
- Raise profit margins by bundling services to sell to current customer base at higher and charging higher prices. - [Goal: #1]
- Increase growth in sales by 50% to 126 clients' visits to shop per week by end of December 2018. - [Goal: #2]
- Increase growth in revenue by 50% to $165k by end of December 2019. - [Goal: #2]
- Capture bigger market share by increasing market share by 40%. In order to grow, the business needs to increase its share of competitive markets. - [Goal: #2]
- Increase customer referrals by 40% by end of December 2019. - [Goal: #5]
- Increase customer retention by 95% by end of December 2019. - [Goal: #5]
- Increase membership in loyalty program by 50% by December 2019. - [Goal: #5]
- Develop, where applicable, best practices in barbershop related operations and customer service/care.
- Develop methodologies for promoting the barbershop to airport authorities.
- Establish baseline metrics by which the City and the airport authority can evaluate barbershop performance.
- Quantify and define the relationship between air-side and land-side issues as they impact the growth of barbershop usage.
- Earn at least a 25% after-tax-rate of return on investment during next year.
- Reduce waiting time for walk-in customers to maximum of 10 minutes.
The objectives detail what will be accomplished in relation to each goal. The strategic objectives are outcomes desired by the owners and top management and whose achievement is deemed most important to the current and future health and performance of the business organization. The purpose of setting objectives is to convert managerial statements of business mission and company direction into specific performance targets/goals (something the organization's progress can be measured by).
Strategic Issues and Priorities
Strategic issues are fundamental policy questions affecting the organization's mandates, mission and values, product-mix/service-mix, clients, users or payers, cost, financing, management or organization design. Strategic issue is an issue that must be resolved if the organization is to achieve its mission; and they are recorded in an Agenda as follows.
- Declining/flat sales - Transition from startup phase to growth phase stalls and growth in revenue stays flat or start declining prior to the organization achieving targeted revenue goals. This prevents the organization from accomplishing the mission.
- High employee turnover - Recruiting and hiring barbers to build/enhance barbering capacity to deliver the mission can be hampered by high attrition rates due to myriad of reasons, preventing the barbershop from carrying its mission to deliver quick and high quality service to customers in a timely manner.
- Peak Period Delays - Unpredictable demand patterns cause unexpected delays in getting prompt and timely service, leaving customers long queues waiting for service, preventing the barbershop from meeting its mission goal of providing high quality and timely service.
- Customer Attrition - Increasing high number of current customers not returning for more service, preventing the organization from meeting its revenue goals as defined in the mission.
The organizational goals provide the context for analysis of strategic issues to determine problems to solve. Identify and resolve issues facing the organization and prioritize them relative to the relevance and importance to success.
Action Planning
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Summary - Strategy and Implementation
The strategy and implementation elements are organization and individual level capabilities such as:
- High Quality and Superior Service - Emphasize quality, originality and "world class service" - We will differentiate ourselves from our competitors by offering a staff of practitioners who are certified in their professions, and well trained in understanding the dynamics of customer service so as to maximize the connection to clients and more easily meet/exceed their expectations.
- Unique Atmosphere - We will provide unique atmosphere - from our professional staff to the ambiance of the barber shop. O'Hare Barbershop will distinguish itself as completely trustworthy and soothing setting where clients can enjoy quick, timely and high quality service, escape the stress of their airline travel and work schedules, and enjoy the camaraderie fellow travellers and colleagues.
- Managing Customer Relations - Build a community or corporate relationship-oriented business with focus on strengthening the trust of our customer base, and providing not only services, but information that will aid everyone in the progression of obtaining a balanced and healthy lifestyle.
- Barbers capable of working with any type of hair and styling requests
Key Success Factors
The key to success in the businesses are:
- Location - Providing a location that is easily accessible to customers/clients,
- Environment - Providing an environment conductive to giving relaxing and professional service,
- Convenience - Offering clients/customers a focused range of services in one setting, and extended business hours,
- Reputation - Reputation of the owner and staff as providing superior personal care service,
- Effective Advertising - Service Marketing.
Outcomes Analysis
Outcomes analysis takes the objectives and resulting data to see if the desired result was achieved. In addition, it reviews any ancillary information that might pertain to the objective's impact (outcome). An organization might not achieve an outcome because of unforeseen external events; this information is evaluated to plan for further objectives and potential unforeseen risks to success.
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- Increased Profitability - To reach this goal, objectives could consist of increasing annual sales by 50%; reduce expense objectives such as controlling and cutting overhead experiences e,g., utility bills by 15%.
- Better Customer Service - This may include goals such as reducing complaints by 50% over one year; improve resolution times to customer complaints to a maximum of one business day; improve the substance of the resolution to complaints. To meet this customer service goals objectives could include providing better training for barbers, implement a policy where customers are guaranteed to receive a refund if they have a complaint by the quality of haircut/shave.
- Improved Staffing - This may include goals such as improved recruiting, retention, and labor cost management. To make the goal improve employee retention, for example, more specific, measure the current turnover rate, e.g., one employee in 3 leaves after three months; and decide to double this figure to six months. Objectives could include implementing a training program that details new-hire activities for the first 90 days on the job; implement one-on-one bi-weekly meetings with employees in an effort to build rapport and find out what's on their mind.
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- Profitability Goal Related Objectives
- Maintain net profit as a percent of sales at 20%
- Maintain positive cash flow
- Increase net profit by 10% annually until we reach 20%
- Revenue Growth Goal Related Objectives
- Increase growth is sales by 30% annually until we reach $35ok or more in annual sales
- Maintain annual sales revenue at $350k or above.
- Sales rank in the to exceed $500k in five (5) years.
- Increase market share by 30%
- Better Customer Service Goal Related Objectives
- Decrease number of complaints by 10%
- Increase customer referrals by 20%
- Increase customer retention by 90%
- "Improve customer satisfaction scores by 5 points each quarter".
- Improve Employee Retention Goal Related Objectives
- Reduce employee turnover by 30%
- "Improve employee satisfaction scores by 5 points each quarter".
- Implement one-to-one bu-weekly meetings.
- Implement training program
- Improve Corporate Social Responsibility Related Objectives
- [TBD]
- Implement a bonus profit sharing program for the shop's barbers.
- Develop an employee/barber training program.
- Design a marketing plan to increase purchases by current customers and attract new customers within existing target markets.
- Increase operational effectiveness and efficiency.
- Develop incentives to maintain high barber retention with a turnover rate of less than 20% annually.
- Build O'HAre Barbershop Brand
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All organizations are endowed with an initial set of resources which they employ to create output such as policies, rules, etc., which in turn guide the creation and delivery of value (products and services) to customers.
Organizations' management typically establish Organization Goals that are strategic objectives outlining expected outcomes to guide employees' efforts. They help define a company's purpose, assist its business growth, and guide efforts to achieve its financial objectives.
Strategic priorities are a part of the core culture; they are the values aligned with the organization's vision and goals. They can be uncovered by understanding what the organization needs to focus on and pay attention to in order to achieve its business goals.
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Strategy Implementation Gap
Strategic gap analysis attempts to determine what a company should do differently to achieve a particular goal by looking at the time frame, management, budget and other factors to determine where shortcomings lies. After conducting this analysis, the company should develop an implementation plan of the strategic initiatives and programs to pursue to eliminate the gaps.
Strategic Gap Analysis
The strategic gap is the result if you assess the difference between what a company must do to realize its potential from what it is currently doing. Closing this gap is essential to attain and sustain competitive advantage. As such performing a strategic gap analysis can point to potential arras for improvement and what resources (money, time, and personnel) are required to achieve the strategic goals. Typically, the gap between the strategic plan and its implementation is caused by missing integrative links such as:
- Implementation Process - Strategic change in organizations is largely delivered through multiple projects and programs. The absence of an implementation process that is focused on a portfolio of strategy-fulfilling projects can result in an implementation gap.
- Top-Down and Bottom-Up Viewpoints -
- Organizational Focal Point - []
- Alignment Across Functions - []
- Executive Transition Mitigation - []
- Feedback Loop - []
Strategic gap analysis allows a company or organization to determine whether it is getting the best return out of its resources and abilities.
Strategy Implementation Tasks
Successful strategy implementation involves several tasks including:
- Translating the selected strategic choices into functional strategies and the actions needed over the next one to two years to implement the major proposed strategic options. This involves translate the strategic goals of the selected strategic choices into functional/division goals and functional strategies of the functional areas identified and defined by the operations infrastructure established as a result of the operations strategy design
- Assessing the capacity to build an organization capable of carrying out the strategy successfully, and determine the gaps from the current state,.
- Integrating Functional Strategies - Identify and give due consideration to the cross-functional implications of strategy at implementation when the critical issues of strategy are appraised.
- Developing action plans - The action plans are schedules for actions to be taken, and policies and procedures that guide resource allocation and prioritization decisions. The implementation plan defines the responsibility of top, middle and lower level managers focused on the creation of new strategic assets and/or enhancement and strengthening existing strategic assets needed by the entity in order to build an organization capable of carrying out the strategy and maintaining its ability to achieve future outcomes.
- Developing Operations Plans - The Operations Plan describes milestones, conditions for success and explains how or what portions of a strategic plan will be put into operation during a given operations period. The operations plan is a basic tool that directs the day-to-day activities of organizational staff. An operational plan addresses four basic questions: Where are we now? Where do we want to be? How do we get there? How do we measure our progress?
- Developing Tactical plans for functional areas such as marketing, production, personnel, finance, and plant facilities. Implementation requires outstanding collaboration between all members of the various groups throughout the whole organization from top management to line workers.
- Developing budgets that steer resources into those internal activities critical to strategic success.
- Establishing and developing strategy supportive policies.
- Develop and install internal support systems that enable company personnel to carry out their strategic roles effectively day in and day out
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- Motivating people in ways that stimulate them to pursue the target objectives energetically and, if need be, modifying their duties and job behavior to better fit the requirements of successful strategy execution.
- Tying the reward structure to the achievement of targeted results.
- Creating a company culture and work climate useful for successful strategy implementation.
- Performing best practices and programs for continuous improvement.
- Applying the internal leadership needed to drive implementation.
- Finalizing strategic plan with input from all invested parties.
- Aligning the budget to annual goals.
- Producing various versions of the plan for each group.
- Establishing a system for tracking and monitoring the plan.
- Establishing a performance management and reward system.
- Presenting the plan to the entire organization.
- Building annual department plans around the corporate plan.
- Scheduling monthly strategy meeting with established methods for reporting progress.
- Setting annual review dates for new assessments, and annual plan review.
Successful implementation may result in changes to one or more of the elements of the organization's operating model, and action plans that realize the organization's goals and objectives. Implementation involves every member of the organization playing an active role in combining efforts and resources to realize the business's common objective. It involves
Strategic Initiatives - Programs and Projects
Strategic initiatives are the programs ans projects chartered to close the integration gap - the gap between the strategic plan and implementation. Strategic change in organizations is largely delivered through multiple projects and programs. The initiatives include:
- Develop plans for securing funding
- Developing plans for leadership to communicate strategic intent to people in the organization.
- Develop prioritization scheme for projects and initiatives
- Establish HR hiring and training program
- Marketing advertisement campaigns
- Marketing promotions campaigns
- Customer Loyalty Program
- HR Policy Development
- Shop remodeling and interior design upgrade
- Customer service policy development
- Developing Marketing plan
- Developing Operations plan
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Implementation Phase Needs
The implementation phase requires several needs of functional areas, identified and defined by the operations infrastructure, to be met for the implementation to be successful. The implementation needs may include:
- Trained people ready to use their unique skills and abilities to implement various elements of the plan.
- Sufficient time and money allocated to projects
- Management that is communicative and ready for meetings with monthly updates
- Technology and management systems necessary to track progress are in place
- Workforce comfortable with the plan and motivated to succeed.
Building A Winning Organization
Building a winning organization (Barbershop) requires the organization to identify and define organizational capabilities in behavioral and operational terms to address the question "what economic or customer value each capability delivers? A capability assessment identifies the organizational capabilities that currently exist and work well and those capabilities called for by the organization's corporate and business strategic priorities.
These capabilities are the collective skills, abilities, and knowledge/expertise of the organization. Some of the organization capability dimensions of relevance include:
- Management Capabilities - These include capabilities in areas such as: corporate portfolio management and finance, business unit strategies and priorities, talent management and culture
- Operating Capabilities - These include capabilities in areas such as: Service Production and Operations, and customer relationship
- Technical Capabilities /Proprietary Assets - These include capabilities and strategic assets such as: Brand impage and reputation, and tiered customer network.
Capabilities represent the ways people and resources are brought together to accomplish work. They form the identify and "personality" pf a company by defining what it is good at doing, and in the end what it is.
Strategic Management is a continuous process of inter-dependent functions for planning, organizing, leading and directing, and controlling resources needed for creation new strategic assets, and/or enhancing existing strategic assets employed in achieving the organization's mandates and vision.
Strategic management process is more than just a set of rules to follow. It is a philosophical approach to business; Upper management must think strategically first, then apply that thought to a process. The strategic management process is concerned with establishing the organization's direction and destination, and the strategies (route and actions) for getting to the destination from the current state of the organization making any necessary changes to the organization to correct course and ensure progress towards the destination; operations management process is concerned with running the day-to-day business operations efficiently. Being strategic is the ability to design a plan to achieve advantageous conditions in the future. It is the anticipation of future scenarios where you can leverage strengths and minimize weaknesses. Risk is often involved, but having a strategy means planning and preparing to achieve a strategic goal.
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Strategy Execution
Strategy execution is the continuous process of decisive strategic decisions that occurs at all levels and functional areas in the organization that drive the actions/activities undertaken at all levels in the organization to turn implemented strategy into commercial/social success as defined by the mission. Strategy execution takes place within the context of strategy implementation, and is a change process involving a series of integrated decisions/actions that take place over time, and inextricably changes the organization and its relationship with its environments. Strategy implementation - planning and execution of the plan requires management to regularly monitor and assess progress to drive followup decisions
Strategy Execution System
The execution system enables the organization to understand the fit between strategy and organizational capabilities, reward structure, internal support systems and culture. The culture of the organization emerges from the values and beliefs shared by organization members, the company's approach to managing people, rooted behaviors, work practices, and ways of thinking.
Example Execution Trace
Strategy execution is the continuous process of decisive strategic decisions that occurs at all levels and functional areas in the organization that drive the actions/activities undertaken at all levels in the organization to turn implemented strategy into commercial/social success as defined by the mission.
Once a company creates a strategic plan, it has constructed what could be defined as a intended strategy that guides deliberate (top-down) execution> The strategy execution involves decisions and actions available to various levels of management in the organization such as leadership and executive level, middle management level, and individual level and can be classified by the following decision patterns.
Board of Directors
Leadership and Senior Management
- Entering barber shop services business at O'Hare Airport
- Investing in developing barbershop facility and capacity
- Investing in developing organizational capability in leadership, customer connectivity, and Shared Mind-Set (Brand Identity)??
Owner and President
Leadership and Senior Management
- Setting strategic direction - Establishing strategic objectives and goals aligned and supportive of the mission and vision
- Communicating strategic objectives, mission and vision to all employees at all levels in the organization.
- Monitoring and evaluating organization performance and progress towards desired strategic objectives and goals
- Evaluating external environmental factors and decide on how/what opportunities and threats to respond to.
- Assessing impact of changes in PESTEL/legal and regulatory factors on successful execution of current strategies.
- Chartering initiatives and programs to close gaps
- Updating strategies
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Business Unit Level Decisions
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- Product positioning decisions
Function Level Management Decisions
- Communicate - Communicate the approved strategy through various communication platforms and making it transparent and easy-to-understand in order to create the necessary understanding and engagement for the new/adapted strategy. Some thought should be given to how the strategy is communicated and factors such as quality of content, tone of voice and presentation skills - essential elements in the transferring content and creating the necessary enthusiasm for others to pass on the message.
- Manage Initiatives - Initiative management is where your dreams run up against reality, your strategy meets operations, and resources are added to the formula. Initiative management is about selecting, prioritizing and executing the right initiatives, those actions that will lead to the realization of your objectives.
- Cascade - Break down the strategic objectives into smaller chunks for the next organizational level. The process stops at smallest unit level - these are often teams/positions. In the end the size of the organization determines the size of the cascade.
- Compare and Learn - The intended strategy is a hypothesis; it is the organization's best estimate of the route to success. It is crucial to take some time at the end of each cycle of execution to check the hypothesis, compare your initial strategic assumptions with what you have learned from the reality of the execution cycle that is being completed. Make sure you also examine and take a look at the organization's strategy execution capability and development capacity.
These decisions and actions are carried out in functional areas such as: Marketing, Finance, Sales, HR and IT.
Individual Level
- Manage Initiatives - This involves selecting, prioritizing, and executing the right initiatives; those that would lead to the realization of the strategic objectives..
- Set Objectives -
- Monitor & Coach - Monitor the key performance indicators defined for the organization's strategic measures, and track progress towards achieving the mission. This includes monitoring employee performance and providing feedback on performance in such a manner to reinforce positive behavior and outcomes; acknowledge and celebrating success.
- Evaluate Performance -
The effectiveness of the decision-making process can be improved to the extent the organization provides an execution system that enables timely and good decisions that drive organization processes about people, strategy and operations.
Emergent Strategy
The company's strategy may also emerge from the day-to-day decisions and actions in following areas:
- Diversify the company's revenue base; enter new business and/or industries.
- Extend geographically to post-security parts of airport.
- Efforts to integrate forwards or backwards.
- Efforts to broaden/narrow the product/service lines, product quality, or modify customer service.
- Actions to capitalize on new opportunities i.e., new technology, product innovation, acquisition,new trade agreements in foreign markets.
- Defensive moves to counter the actions of competitors and defend against external threats.
- Actions to respond to changing industry conditions, i.e., shifting demand patterns, new airport regulations, entry of new competitors.
Evaluation & Control
When evaluating long-term goals it is important to reflect on the goals themselves as well as the progress towards them. This process allows you to look at the past performance while preparing your business for the future. The process of assessing results and making necessary corrections isn't necessary a matter of evaluating whether your company has succeeded or failed in achieving your objectives. Instead, its a way to creatively and methodically inquire into when it's necessary to adapt and when your course of action is fundamentally sound.
Strategy evaluation and control actions include:
Monitoring
Monitoring internal and external issues enables you to react to any substantial change in your business environment. If you determine that the strategy is not moving in the company towards its goal, take corrective actions. If those actions are not successful, then repeat the strategic management process. Because internal and external issues are constantly evolving, any data gained in this stage should be retained to help with any future strategies.
Outcomes and Outcome Measures
An outcome is the level of performance or achievement that occurred because of the activity or services your organization provided. Outcome measures are a more appropriate indicator of effectiveness. Outcomes quantify performance and assess the success of the process.
Some examples of outcomes and outcome measures include:
When evaluating long-term goals it is important to reflect on the goals themselves as well as the progress towards them. This process allows you to look at the past performance while preparing your business for the future. The process of assessing results and making necessary corrections isn't necessary a matter of evaluating whether your company has succeeded or failed in achieving your objectives. Instead, its a way to creatively and methodically inquire into when it's necessary to adapt and when your course of action is fundamentally sound.
Strategy evaluation and control actions include:
- Monitoring
- Evaluating Activities
Monitoring
Monitoring internal and external issues enables you to react to any substantial change in your business environment. If you determine that the strategy is not moving in the company towards its goal, take corrective actions. If those actions are not successful, then repeat the strategic management process. Because internal and external issues are constantly evolving, any data gained in this stage should be retained to help with any future strategies.
Outcomes and Outcome Measures
An outcome is the level of performance or achievement that occurred because of the activity or services your organization provided. Outcome measures are a more appropriate indicator of effectiveness. Outcomes quantify performance and assess the success of the process.
Some examples of outcomes and outcome measures include:
- In the hamburger example, some outcomes are the consumers’ perception of quality, or the ability of the product to eliminate hunger.
- An outcome measure is the result of a test that is used to objectively determine the baseline function of a patient at the beginning of treatment. Once treatment has commenced, the same instrument can be used to determine progress and treatment efficacy.
Operations Engine
Operations engine enacts the operations system model. The Operations system is a joint configuration of processes and resources and resulting competencies that are aligned with the organization's desired competitive position/priorities, as defined by the Operations strategy. The Operations system is utilized by operations management to provide the best match of supply capacity with customer demand. It aligns organizational distinctive competencies with performance objectives - cost, quality, flexibility, dependability, and speed - to achieve sustainable competitive advantage at the operational level, and profitable organization growth. Operations engine model supports operations management in efficiently managing the day-to-day activities of the organization across functional areas to achieve performance efficiency in creating value at reasonable costs.
Operations engine is comprised of the following:
Marketing Campaigns and Projects and Tactical Goals
The tactical marketing plan outlines how the organization intends to reach the overall marketing strategic goals and objectives the organization has set for itself. Some examples may include:
Marketing operations involves the following functions:
Sales Operations
SWOT Analysis
The SWOT analysis helps executives summarize the major facts and forecasts derived from external and internal analyses in terms of strength, weaknesses, opportunities and threats as follows:
SWOT analysis helps executives summarize the major facts and forecasts derived from external and internal analyses.
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When evaluating long-term goals it is important to reflect on the goals themselves as well as the progress towards them. This process allows you to look at the past performance while preparing your business for the future. The process of assessing results and making necessary corrections isn't necessary a matter of evaluating whether your company has succeeded or failed in achieving your objectives. Instead, its a way to creatively and methodically inquire into when it's necessary to adapt and when your course of action is fundamentally sound.
Strategy evaluation and control actions include:
Any successful evaluation of the strategy begins with defining the parameters to be measured and monitored. These parameters should mirror the goals set in the strategy formulation stage. Determine your progress by comparing the actual results versus the plan.
Monitoring
Monitoring internal and external issues enables you to react to any substantial change in your business environment. If you determine that the strategy is not moving in the company towards its goal, take corrective actions. If those actions are not successful, then repeat the strategic management process. Because internal and external issues are constantly evolving, any data gained in this stage should be retained to help with any future strategies.
Performance Measurement System
The goals and objectives, and KPIs measures can be organized into a system of measures based on the Balanced Scorecard framework. This allows managers to align the goals and objectives with the strategic priorities or where the organization is going enabling them to better monitor and manage progress.
Financial Perspectives
Financial performance is defined in terms of financial objectives and metrics. These define financial objectives.
Customer Perspective
These define the customers' value viewpoint.
Internal Processes Perspectives
These cover objectives in the following areas: Customer Service, Innovation, Operational Excellence, Regulatory Perspectives.
Learning & Growth Perspective
The objectives in this perspective focus on individual skills, culture, and organizational capacity.
Outcomes and Outcome Measures
An outcome is the level of performance or achievement that occurred because of the activity or services your organization provided. Outcome measures are a more appropriate indicator of effectiveness. Outcomes quantify performance and assess the success of the process.
Some examples of outcomes and outcome measures include:
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Barbershop Operations Management
Operations Management is responsible for managing the resources and processes defined by the Operations System and utilized in operations for the creations and delivery of value to customers. Strategically, Operations Management is defined in terms of the design of the organization's operations strategy and the resulting Operations System. Tactically, operations management is defined in terms of the utilization of the organization's Operations System to provide the best match (fit) of supply of tangible resources and know how with customer demand for the mix of products and services.
Service management is the management of processes involves in service activities, including planning, organizing, staffing and controlling tasks in strategic management and operations management.
As the barbershop strategy evolves, it must implement changes that both respond to emerging trends, issues as well as anticipate future needs of its airport concession partners.
The Operations System for an organization is the joint configuration of resources and processes such that its resulting competencies are aligned with the organization's desired competitive position. The transforming resource (i.e., facility, human resource, and equipment) and process technology (that define the production and service delivery systems) views are complementary to the competency view. The process view focuses on how work is done, while the resource view focuses on who or what performs the work. Both are necessary to understand operations well. The specific choices, of resources and processes affect what the operations system can and cannot do well. Besides resources and processes, values are the third factor that affects what an operation - and thus the organization - can and cannot do. Values are the standards by which employees set priorities. Some priorities are embodied or programmed into a process, but many are not. Examples include judging whether an order or customer is attractive or not, whether a suggestion to improve a product or process is attractive or marginal, and whether an investment is worth making or not.
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Operations engine enacts the operations system model. The Operations system is a joint configuration of processes and resources and resulting competencies that are aligned with the organization's desired competitive position/priorities, as defined by the Operations strategy. The Operations system is utilized by operations management to provide the best match of supply capacity with customer demand. It aligns organizational distinctive competencies with performance objectives - cost, quality, flexibility, dependability, and speed - to achieve sustainable competitive advantage at the operational level, and profitable organization growth. Operations engine model supports operations management in efficiently managing the day-to-day activities of the organization across functional areas to achieve performance efficiency in creating value at reasonable costs.
Operations engine is comprised of the following:
- Operations system model - []
- Business function areas - []
Marketing Campaigns and Projects and Tactical Goals
The tactical marketing plan outlines how the organization intends to reach the overall marketing strategic goals and objectives the organization has set for itself. Some examples may include:
- Implement customer loyalty program
- Implement customer referral program
- Implement staff/barber incentive system of monthly bonuses.
- Create and Integrate Facebook page to extend website.
- Marketing Initiatives/Efforts - Intensify advertisement of shop services and products; Intensify promotions to increase sales; Focus website to support marketing, sales, and marketing communication
- Update Shop interior design and furnishing
- Hold 24 theme days over the next year
Marketing operations involves the following functions:
- Collateral Creation and Management - Marketing Planning, Budget Management, Production Management, Asset Management.
- Demand Generation - Data Management, Dialog Management, Campaign Management, Lead Management.
- Performance Management - Real time Analytics, Reporting, Analytics, Conversion Tracking.
Sales Operations
- Sales Planning
- Compensation
- Forecasting
- Territory Design
SWOT Analysis
The SWOT analysis helps executives summarize the major facts and forecasts derived from external and internal analyses in terms of strength, weaknesses, opportunities and threats as follows:
- Strengths - The internal positive attributes of your company that are within your control. These may include: successful business processes; assets you have in your teams i.e., knowledge, education, networks, skills, and reputation; physical assets the organization has, such as customers, equipment, technology, cash and patents; competitive advantages you may have over the competition.
- Location of shop (Distribution Channel) at Airport land-side.
- Owner's experience ad skill as master barber
- Weaknesses - These are negative factors that detract from your strengths. These are factors that relate to things you might need to improve on, to be competitive. For example, things your business needs to be competitive; business processes needing improvement, tangible assets i.e., money or equipment that your company needs.
- Limitation on Financial Resources
- Weak Leadership
- Recruiting quality and experienced barbers and stylists.
- Weak strategic capability
- Opportunities - These are external factors in your business environment that are likely to contribute to your success. These may include factors such as, is your market growing and are there trends that will encourage people to buy more of what you are selling? Are there upcoming events that your company may be able to take advantage of, to grow the business? Are there upcoming changes to regulations that might impact your company positively? For an existing business up and running, do you customers think of you highly?
- Airport expansion initiatives to increase enplanements by 30% to 100 millions passengers/year in 5 years.
- Transformation of Terminal 2 to combined new international and domestic terminal.
- Increase in airport employees by 20% in 5 years.
- Threats - These are external factors you have no control over that negatively influences your success. You may need to put in place contingency plans for dealing with them if they occur. These factor may include: potential competitors who may enter your market; will suppliers be able to supply the raw materials you need at the prices you need? Is consumer behavior changing in a way that could negatively impact your business? Are there market trends that could become a threat?
- Airport remodeling activities
- SPAs enter into the personal hair care business
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SWOT analysis helps executives summarize the major facts and forecasts derived from external and internal analyses.
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When evaluating long-term goals it is important to reflect on the goals themselves as well as the progress towards them. This process allows you to look at the past performance while preparing your business for the future. The process of assessing results and making necessary corrections isn't necessary a matter of evaluating whether your company has succeeded or failed in achieving your objectives. Instead, its a way to creatively and methodically inquire into when it's necessary to adapt and when your course of action is fundamentally sound.
Strategy evaluation and control actions include:
- Monitoring
- Performance measurements,
- Consistent review of Internal and external issues,
- Making corrective action when necessary.
Any successful evaluation of the strategy begins with defining the parameters to be measured and monitored. These parameters should mirror the goals set in the strategy formulation stage. Determine your progress by comparing the actual results versus the plan.
Monitoring
Monitoring internal and external issues enables you to react to any substantial change in your business environment. If you determine that the strategy is not moving in the company towards its goal, take corrective actions. If those actions are not successful, then repeat the strategic management process. Because internal and external issues are constantly evolving, any data gained in this stage should be retained to help with any future strategies.
Performance Measurement System
The goals and objectives, and KPIs measures can be organized into a system of measures based on the Balanced Scorecard framework. This allows managers to align the goals and objectives with the strategic priorities or where the organization is going enabling them to better monitor and manage progress.
Financial Perspectives
Financial performance is defined in terms of financial objectives and metrics. These define financial objectives.
- Increase Revenues
- Manage Costs
- Maintain Profitability - This typically means running a profitable operation, and increasing revenue while limiting expenses. This leads to growth in profits and cash flow. The objectives include: Increasing Annual Sales by 100%, Developing New Markets,
Finding new Products and Services to offer to customers, Reducing Unnecessary Costs, Raising Prices. - Become Market Leader
- Explore new customer segments
- Return on Assets
- Gain Market Position
- Increase Customer Conversion
- Company Sales growth/Market Sales Growth -> Must be > 1
- Diversify and Grow Revenue Streams - Enter new market in the Vending personal care services industry.
Customer Perspective
These define the customers' value viewpoint.
- Improve customer satisfaction
- Reliable Service - Open on-time per schedule, and providing fast high quality haircuts and shaves.
- Increase Share of Market - Define Product and Service Offerings, Research and Define Target Markets, Analyze Competition, Strategic Positioning - Establish Product/Service Placement and Pricing, Develop Promotion Campaign for Offerings.
- Increase Share of Wallet
- Increase in new customers
- Increase in number of returning customers
- Customer delivery time
- Ranking on Social Media
- Best Service
- Improve our service approach for new and existing customers
- Understands my Needs
Internal Processes Perspectives
These cover objectives in the following areas: Customer Service, Innovation, Operational Excellence, Regulatory Perspectives.
- Increase Web traffic
- Prospecting the right Customers/Clients - Always embrace an entrepreneurial attitude to see and seize the right opportunities - especially those previously unseen or hat others don't see at all. Prospecting the right clients ensures the business not only grows, but sustains itselfover time.
- Implement software project
- Increase value of projects and manage growth.
- Launch and complete special projects
- Improve Customer Service.
- Strengthening Financial Resources - Included in the growth objectives of an organization is the availability of capital resources to invest in future expansion projects. Strengthening financial resources means to build cash flow or increase assets value in order to attract investors and court creditors to fund expansion.
- Reduce Financial Waste
- Develop and Use Customer Database.
- Streamline Core Business Processes.
- Ensure Compliance - These relate to rules and policies from the City of Chicago, Chicago Department of Aviation, Airport Authority, Federal Government, Hilton Hotel that the company needs to follow, even though they might not be strategic.
- Build capacity for the future
- Increase team size
- Lower Production costs
- Decrease Defects
Learning & Growth Perspective
The objectives in this perspective focus on individual skills, culture, and organizational capacity.
- Improve internal communications
- Improve employee satisfaction
- Implement performance review and reward system
- Build culture and align across organization
- Build Customer-Intimacy and performance focus culture.
- Create employee training programs
- Decrease emplotyee turnover/Improve employee retention - Improving the current employee retention rates reduces the amount of money and time spent on training new employees which, in turn, helps performance and profitability. For example; with a current rate of 30%, an objective to increase and maintain retention rate at 66% of the current workforce through the next year might require strategy involving increase in pay and better benefits..
- Develop leadership abilities.
- Balance employee utilization rate
- Attract and retain the right people - Business is about people, and without the right talent a business can't grow and mature.
Outcomes and Outcome Measures
An outcome is the level of performance or achievement that occurred because of the activity or services your organization provided. Outcome measures are a more appropriate indicator of effectiveness. Outcomes quantify performance and assess the success of the process.
Some examples of outcomes and outcome measures include:
- In the hamburger example, some outcomes are the consumers’ perception of quality, or the ability of the product to eliminate hunger.
- An outcome measure is the result of a test that is used to objectively determine the baseline function of a patient at the beginning of treatment. Once treatment has commenced, the same instrument can be used to determine progress and treatment efficacy.
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Barbershop Operations Management
Operations Management is responsible for managing the resources and processes defined by the Operations System and utilized in operations for the creations and delivery of value to customers. Strategically, Operations Management is defined in terms of the design of the organization's operations strategy and the resulting Operations System. Tactically, operations management is defined in terms of the utilization of the organization's Operations System to provide the best match (fit) of supply of tangible resources and know how with customer demand for the mix of products and services.
Service management is the management of processes involves in service activities, including planning, organizing, staffing and controlling tasks in strategic management and operations management.
As the barbershop strategy evolves, it must implement changes that both respond to emerging trends, issues as well as anticipate future needs of its airport concession partners.
The Operations System for an organization is the joint configuration of resources and processes such that its resulting competencies are aligned with the organization's desired competitive position. The transforming resource (i.e., facility, human resource, and equipment) and process technology (that define the production and service delivery systems) views are complementary to the competency view. The process view focuses on how work is done, while the resource view focuses on who or what performs the work. Both are necessary to understand operations well. The specific choices, of resources and processes affect what the operations system can and cannot do well. Besides resources and processes, values are the third factor that affects what an operation - and thus the organization - can and cannot do. Values are the standards by which employees set priorities. Some priorities are embodied or programmed into a process, but many are not. Examples include judging whether an order or customer is attractive or not, whether a suggestion to improve a product or process is attractive or marginal, and whether an investment is worth making or not.
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