Barbershops at Airports

Airport Barbershops - Building a Winning Organization
The barbershop business is a service business involving the transformation of physical attributes of a people (men's facial and head hair) with the goal of enhancing their appearance and improving their confidence and well-being. The service has both tangible aspects - haircuts or shaves - and intangible aspects - perception of the aesthetic appeal of the hair transformation and the satisfaction it provides to the customer in the form of increase in confidence and sense of well-being, etc. The service is performed by people - barbers - on people - clients - that are part of the process of producing a service (haircuts or shaves). Building a winning barbershop at airports requires managing the interplay of strategic and operations management to ensure sustainable growth and profitability - efficiently creating and delivery value to customers, while meeting the expectations of stakeholders.

Strategic Management
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. 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 involves strategic thinking in formulating ideas and then strategizing on how to take action to realize those ideas. It involves establishing the organization's position.

Analysis
Strategy Formulation
Implementation
Execution
Evaluation

Analysis
For an organization to survive and grow, it has to have clearly articulated strategy that is well researched to enable it to adapt or effectively respond to changing factors in the environments it operated in. Even when a company has developed a valid and solid strategy, it must regularly evaluate its effectiveness based on changes in its environments. In essence, the environments must be analyzed by collecting and analyzing data about environments' changes that impact strategy performance. The environments in which barbershops exist at airports include the following:

External environment,
Industry environment.
Internal Environment,
Enabling Airport Environment.

The analysis of these environments helps provide an understanding of how they influence the organization's performance in creating solid strategy to drive the creation and delivery of value to customers and stakeholders.

External Environment Analysis
The external environment is defined as the macro environment that consists a number of component factors (termed the PESTEL elements) that have a potential influence on the industry and its competitive environment. These factors include: economic conditions, demographics, trends of technology, political and regulatory factors, social forces, and global factors.

Political - []
Economic Factors - []
Social - []
Technology - []/Technology trends ...
Environment - [] Demographics Factors
Legal - []

Industry Analysis
Industry analysis involves measuring the competitiveness and attractiveness of the industry the business is in based on Porter's Five Forces framework. The goal of analysis is to identify the main sources of competitive forces and their strengths. The analysis informs the organization's decisions on determining the company's current/potential risk to competitive forces in its industry. The five forces are:

Threat of New Entrants - The competitive pressures coming from the threat of entry of new rivals is low because the barriers to entry are high as a result of high fixed costs and government restrictions (e.g. licensing and certification).
Threat of Substitute Products/Services - The competitive pressures coming from the threat of market attempts of outsiders to win buyers over to their products is low because there are no good substitutes readily available for the services provided at the airports.
Bargaining Power of Buyers - The competitive pressures stemming from the threat of buyer bargaining power is medium even though buyer switching costs is low, and can postpone purchases the convenience of our location and quality of service production as well as time pressures minimizes Buyer power.
Bargaining Power of Suppliers - Low to non-existent.
Competitive Rivalry - The competitive pressures created by the threat of jockeying for better market position, increased sales and market share, and competitive advantage is low because we have better product performance, higher quality, better customer service, and stronger capabilities to provide buyers with custom/tailored products.

Organizational Scan - Internal Environment Analysis
The internal environment is defined by the set of internal factors resulting from either the way the business is run, or decisions made, or both. The factors resulting from how the business is run include: the business reputation and image, credit worthiness, etc. The factors resulting from business decisions include: management structure and staffing, physical decor of facilities/offices, etc. Internal factors can be controlled directly or indirectly; but changing these factors usually involves indirect costs such as lost productivity for example, while new employees are being trained, some direct costs such as a penalty for terminating a lease before it expires. Internal analysis provides strategic decision makers with an inventory of organizational skills and resources as well as their performance levels. Many resources can be combined to give an organization a competitive advantage. In particular, the advantages due to intangible assets including people and service capability provide the most difficult advantage to imitate/copy.

Organizations can distinguish themselves from their competitors by developing a set of core capabilities/competencies - bundles of people, processes and systems that deliver value to customers better than competitors.

Enabling Environment Analysis - O'Hare Barbershop - Airport Concessions
The airport retail concession business has traditionally been focused on providing basic services to meet passengers demand for services such as the following:

Food and beverage
Souvenirs, gifts, and unique keep sales
Forgotten or replacement items - bath & body, health, grooming (hair and nails), electronics, eye wear, etc.
Item that are easy to carry
Items that help pass the time
Convenience amenities such as convenience stores, shoe shine, news papers and book stores

In recent times airports' management have realized the importance of enhancing passenger airport experience as a competitive advantage by introducing a variety of upscale services and emphasizing passengers' perceptions and expectations of airport service quality. Airports are adding specialty retail concessions to the traditional merchandising mix; these concessions include: gyms, massage, spa treatment, movies, upscale clothing and leather goods stores, barber shops,and salons, etc.; as well as services focused towards relaxation and stress relief such as meditation and Yoga rooms, nap in special pod, Chapel, etc.

Airport Barbershop Specialty Retail Concession Business
Barber shops and Salons at airports provide personal hair grooming services such as haircuts and shaves for men at the airports. Traditionally, airlines as well as hotels and other hospitality organizations have provided passengers/guests with complementary personal grooming items such as razors, tooth brushes and tooth paste, shampoo, and body wash to name a few. In recent times airlines and hotels have scaled back on providing these grooming and bath and body products for a variety of reasons, such as cost improvements, focus strategy, etc.

Managers of airports are beginning to consider including offering barber shops/salon services in their retail concession offering.

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Airport concession management require potential Barber Shop concessions to offer a contemporary modern barber shop experience that offers a haven where customers - male travelers and airline/airport workers who make travel possible - can sit back, relax, and experience the “world class” art of head and facial hair grooming designed and personalized for each customer’s physical appearance, needs, preferences and specification. The shop provides timely and high quality head/facial hair cuts and shaves for male customers who want quick service, as well as customers who want to be pampered.

The Barber Shop/Salon concession business at airports like every "for-profit" company, wants to attain sustainable growth and profitability to satisfy the expectations of its stakeholders. This requires having the right people and skills, products and services with strong market demand, effective strategic and operations management, and efficient operations. An organization is unlikely to achieve sustainable growth if it fails to effectively convert ideas into good strategies, and translate those strategies into workable and effective actions which are executable within the context of the organization's operations. Sustainable growth requires the successful interplay of effective strategic management and efficient Operations Management. Effective strategic management involves strategic decisions, judgment, and actions and links rhetoric (what people say), choices (what people decide and are willing to pay for), and actions (what people do) in shaping the nature and direction of an organization's activities that determine the long-run performance of n organization. It involves sound strategy formulation, successful implementation and execution, and effective performance evaluation and review.

SWOT Analysis
This involves analyzing the organization's external/internal environments to identify any opportunities and/or threats; and strengths and weaknesses. It involves continuous monitoring of environments conditions for changes in environments' factors that may affect your organizations performance. The SWOT analysis helps executives summarize the major facts and forecasts derived from external and internal analyses. Strengths - The internal positive attributes of your company that are within your control; Weaknesses - These are negative factors that detract from your strengths; Opportunities - These are external factors in your business environment that are likely to contribute to your success; Threats - These are external factors you have no control over that negatively influences your success.

Identify any areas of which the business must seek external resources.

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.
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.
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?
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?

SWOT Analysis
This involves analyzing the organization's external/internal environments to identify any opportunities and/or threats; and strengths and weaknesses. It involves continuous monitoring of environments conditions for changes in environments' factors that may affect your organizations performance. The SWOT analysis helps executives summarize the major facts and forecasts derived from external and internal analyses. Strengths - The internal positive attributes of your company that are within your control; Weaknesses - These are negative factors that detract from your strengths; Opportunities - These are external factors in your business environment that are likely to contribute to your success; Threats - These are external factors you have no control over that negatively influences your success. Identify any areas of which the business must seek external resources.

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.

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.

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?

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?

[Attach SWOT PDF DOC]

Strategy Formulation
Strategy formulation is based on a rational approach to prescribing a deliberate strategy and/or emergent approach through which a strategy is realized through a pattern of actionable decisions. 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 goal. This involves formulating strategies that address in a broad sense the key issues identified through the environments analysis. The major emphasis is on strategic options that related to specific goals or address several goals. These strategies may be new and/or changes in current strategies to reach the goals and address the issues.

Strategy Content Model
[TBD]

Mission, Vision, and Values
The vision statement usually describes some broad set of goals - 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. Management's vision of what the organization seeks to do and to achieve for its stakeholders is commonly termed the organization's "mission."

Vision Statement -
The vision statement usually describes some broad set of goals - what the organization aspires to look like in the future. Developing a vision requires senior management to develop carefully reasoned answer to the question: "what is our vision for the company - what are we trying to do and to become?" - This question pushes managers to consider what the company's business character is, and should be, and to develop a clear picture of where the company needs to be headed over the next 5-10 years. The vision statement describes some broad goals - what the organization aspires to look like in the future.

"To become a successful and very profitable barbershop business at airports; and to be rated #1 in customer service and recognized as a reliable and high quality provider of haircuts and shaves for men."

The vision statement is a mental picture of what the barbershop wants to be in the future; the vision clarifies the long-term direction of the company and its strategic intent.

Mission Statement -
Management's vision of what the organization seeks to do and to achieve for its stakeholders is commonly termed the organization's "mission." Mission statements also have stated goals - what the organization aspires to be for its stakeholders. Mission clarifies the long-term future direction of the company and its strategic intent. The mission statement describes the purpose and reason for the organization to exist. 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 to be achieved. The mission statements for the O'Hare Barbershop is:

"To provide timely and high quality head and facial hair grooming services, for men at airports, that delights and more than satisfies the hair grooming needs of passengers, and airport and airline workers at airports that make passenger travel possible and take care of them along the way. Our haircuts and shaves are tailored to balance the shape and facial features of our customers to enhance their appearance and invigorate them to better pursue their endeavors. Our services meet or exceed our customers' expectations of convenience, quality, ease of access, speed and timeliness, in a conveniently located, upscale, clean and relaxing environment to give the customer a satisfying and unique experience."

A clear mission statement sets the organization with a sense of purpose and provides long term direction.

Core Values -
Core values define the organization in terms of the principles nd values the leaders will follow in carrying out the activities of the organization. Every organization has values, and these values should be coherent with the strategy. The Core Values are the strong enduring beliefs and principles that the company uses as foundation for its decisions; they determine how people will behave and how they think in carrying out their job functions. These values are shared by the Board and staff, strongly held and not easily changed. Values assessment involves looking into the personal values of the members of the organization, organization values, and the organization's operating philosophy. They are the essence of the company’s culture and expression of its “personality”.

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 fulfills 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.

Organizational Goals
Organizational goals are created to help guide an organization in achieving a desired state of profit and success. They help define a company's purpose, assist its business growth, and guide efforts to achieve its financial objectives. There are two main types of organizational goals: Official Goals - Goals that an organization aims to achieve; Operative Goals - Goals that are required to achieve a desired outcome.

Official Goals -
Official goals are typically found in a company's mission and vision statement, and communicate the general purpose of the organization. For example, The O'Hare Airport Barbershop official goals are: These types of goals are often qualitative, which means they are subjective and harder to measure.

Be rated #1 in barbershop services in the airport market.
[TBD]

Operative Goals -
Operative goals describe the steps the organization will take to achieve its purpose. These are the goals required to achieve a desired outcome in order to become successful. They include specific, day-to-day operational tasks needed to run a business and that help drive scale-ability and business growth. These goals can also include employee and management performance, productivity, profitability, innovation, market share and social responsibility goals. Operative goals tend to be quantitative which means they are based on metrics.

The intended strategy is deliberate and planned strategy which is a result of the rational planning approach of strategy development. The rational planning approach (e.g., Ansoff, 1979) defines an objective in advance, describes "where we are now," and uses a prescriptive approach in which "the three (3) core areas - strategic analysis, strategy development, and strategy implementation - are linked together sequentially" (Lynch, 2000; 24).

An organization's intended/deliberate strategy is a statement of how an organization is going to achieve its mission and realize its vision through achieving mission goals. Intended strategy is the pattern of actionable decisions managers employ to achieve strategic and financial performance targets. An intended strategy is a layered concept comprising corporate level strategy, business level strategy, and functional level strategy. The deliberate/intended strategy content model is comprised of the following:

[TBD]

Core Values
The Core Values are the strong enduring beliefs and principles that form the foundation of the company and guide decisions; determine how people will behave and think in carrying out their job functions. The core values of the O’Hare Barbershop 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. They are the essence of the company’s culture and expression of its “personality”.

Strategic Goals and Objectives
The organizational goals provide the context for analysis of strategic issues to determine problems to solve. Objectives are specific achievements to help you reach the goal. Typically, they're measurable and have a timeline.

Long-Term Goals
The long-term goals are strategic goals that define what needs to change in the long-term for the organization to be successful. They 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.

SWOT Analysis
This involves analyzing the organization's external/internal environments to identify any opportunities and/or threats; and strengths and weaknesses. It involves continuous monitoring of environments conditions for changes in environments' factors that may affect your organizations performance. The SWOT analysis helps executives summarize the major facts and forecasts derived from external and internal analyses. Strengths - The internal positive attributes of your company that are within your control; Weaknesses - These are negative factors that detract from your strengths; Opportunities - These are external factors in your business environment that are likely to contribute to your success; Threats - These are external factors you have no control over that negatively influences your success.

Identify any areas of which the business must seek external resources.
Strategic Issues and Priorities
Strategic issue is an issue that must be resolved if the organization is to achieve its mission.

Strategic Business Goals
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. 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.

Corporate Strategic Goals
Corporate level strategic goals concern strategic positioning and include:
Strategic goals are general statements of what needs to be accomplished to implement a strategy may include for example; growing faster than the industry average, overtaking key competitors on product quality, better customer service or increasing market share.

[TBD]
Organization operating objectives for the above goals are:

The O'Hare Barbershop will
Goals
[TBD}

The objectives for The Barbershop at O’Hare are:
The organizational goals drive the definition of operational goals which define the business processes needed to achieve operative goals

[TBD]

Hypotheses
These are the organization theories based on the assumptions and beliefs of the management, their best understanding of the cause-effects understanding.
Crafting Key Strategy
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 not necessarily just planning and preparing to achieve a specified set of goals but being forward looking into the future. This involves formulating strategies that address in a broad sense the key issues identified through the environments analysis. The major emphasis is on strategic options that relate to specific goals or address several goals. These strategies may be new and/or changes in current strategies to reach the goals and address the issues.

Corporate Strategy
Corporate strategy are options involving decisions about what business to be in, and what capability the organization wants to invest in. Corporate strategy is about domain selection, and involves executive management seeking answers to key questions such as:
Business and Competitive Strategy
Business level strategy is primarily concerned with how a particular business unit competes successfully in a particular market. A business strategy is constrained by strategic limitations placed on it by the corporate strategy, and the operations strategy. When dealing with business and competitive strategy management strive to seek answers to key questions such as:

Corporate Level Options
[TBD]

Business Level Strategic Options
Business strategy decisions concern strategic decisions about choice of products/services, meeting customers' needs, gaining advantage over competitors, exploiting or creating new opportunities, etc. The business strategy is expressed in terms of the following answers that management seeks to business strategy questions:

To provide timely, price competitive and high-quality head and facial hair grooming services for men, at locations in the airport that are convenient and easily accessible to our customers.
Provide customers with facial and head hair grooming experience that meets/exceeds customer expectations..
To become a destination point for grooming services for passengers departing/arrival at O'Hare and employees;
To be rated #1 in customer service and recognized as a reliable and high quality provider of men's haircuts and shaves."

SWOT Analysis - The SWOT analysis helps executives summarize the major facts and forecasts derived from external and internal analyses. Strengths - The internal positive attributes of your company that are within your control; Weaknesses - These are negative factors that detract from your strengths; Opportunities - These are external factors in your business environment that are likely to contribute to your success; Threats - These are external factors you have no control over that negatively influences your success.

Strategic Issues Diagnosis and Identification - 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. Identify and resolve issues facing the organization and prioritize them relative to the relevance and importance to success.
Strategic Options - A Strategic Option is comprised of coherent set of options from corporate, business, and functional areas of the organization.

Corporate strategy options is about domain selection options and includes decisions and choices about the following: (1) What should be the capabilities that distinguish the company? (2) What should be the company's comparative advantage in adding value to its individual businesses? (3) What businesses should the company be in?. These are the fundamental choices that a corporate strategy comprises and they frame and guide all the decisions that a company's corporate executives, functions, and staff make every day.
Business/competitive strategy options - This relates to which products or services to offer in which markets. This is informed by answers to fundamental questions such as: (1) Who should be the customers that define our target market? This is the market need and includes any group of potential customers whether defined by their needs, inclinations, or income bracket; (2) What should be the value proposition that differentiates our products and services with those customers? (3) Market geography? These business strategy choices drive the decisions of business units' management teams, functions, and staff that make every day decisions on pricing, R&D, where to manufacture, etc.
Options to Improve Resources and Capabilities - What should be the capabilities that make our business better than any other in delivering that value proposition? Strategic assessment may have identified strengths and weaknesses in existing resources and capabilities in comparison with competitors; this may lead to identification of the improvements needed either to shore up weakness or build on existing strengths. It is also likely that potential market/product options will require supporting changes in resources and capabilities.

Core Values

Increasing profitability
Maintaining Growth market share
Increasing Efficiency
Achieving/Maintaining Maximum Customer Satisfaction Rate
Maintaining Customer Retention

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.
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.
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?
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?

Declining/flat sales will prevent us from achieving our vision to be profitable.
High employee turnover

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.
Increase in growth - This may include goals such as growth in sales volume, growth in sales revenue, etc.

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

[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
[TBD]
To create a personal care service business with focus on quick-service barbershops(QSB) that provide haircuts and shaves for male customers (airline passengers, airline crew - the people that care for them along the way, and the workers that make safe airline travel possible )at airports, catering to their special needs, and is ranked #1 for customer service and quality haircuts at airports.
To provide customers - passengers and airport/airline workers - with busy schedules, high quality quick-service barbershop haircut and shave services on-demand and without appointment (walk-in) which meets their needs and exceeds their expectation of value.
To become an established destination barbershop shop for the airport/airline employees community by end of year 2, June 2016.
To increase number customers serviced by 30% each year starting 2015 for the next five years to June 2020.
Maintain a customer retention rate of 90%
Maintain an employee retention rate of
We can effect change in the conversion rate of our sales pipeline of prospective customers who are impulse shoppers to customers by having the scheduled barbers for a shift stand behind or sit in their chairs at their stations.
We can increase awareness of our services in the market place through in-airport advertisements and website advertisements.
We can increase customer demand for our services through word of mouth advertisements resulting from testimonials on superior quality of work and services provided.
We can increase customer demand through advertisements, promotions, loyalty and referral programs.
We can increase customer demand with traffic from connecting passengers from the post-security areas of the airport with better and targeted directions from the gates and concourses to our shop.
etc.
What business should the organization be in?
What is the strategic intent underlying our market decisions? What should be the capabilities we invest in, that distinguish the organization and enable it to exploit future opportunities?
Which markets offer opportunities that fit our strengths? What should be the organization’s comparative advantage in adding value to its individual businesses?
Who should be the customers that define the target market?
What should be the value proposition that differentiates the products and services offered to those customers?
What should be the capabilities that make our business better than any other in delivering that value proposition?
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Enter new market for barbershops at airports to provide services for airline passengers and airport workers.
Develop the capability and capacity to provide superior quality haircuts and head/beard shaves at affordable prices for men of all races and ethnicity.
Bring in more revenue from existing customers and markets.
Bring in more customers from existing markets.
Bring in more customers from new markets.
Get existing customers to buy more services and products.
Expand geographically; enter the post-security airport market.

Vision Statement - The vision statement usually describes some broad set of goals - what the organization aspires to look like in the future. Developing a vision requires senior management to develop carefully reasoned answer to the question: "what is our vision for the company - what are we trying to do and to become?" - This question pushes managers to consider what the company's business character is, and should be, and to develop a clear picture of where the company needs to be headed over the next 5-10 years.
Mission Statement - Management's vision of what the organization seeks to do and to become for its stakeholders is commonly termed the organization's "mission." Mission statements also have stated goals - what the organization aspires to be for its stakeholders. Mission clarifies the long-term future direction of the company and its strategic intent. The mission statement describes the purpose and reason for the organization to exist. 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 to be achieved..
Core Values - Core values define the organization in terms of the principles nd values the leaders will follow in carrying out the activities of the organization. Every organization has values, and these values should be coherent with the strategy. The Core Values are the strong enduring beliefs and principles that the company uses as foundation for its decisions; they determine how people will behave and how they think in carrying out their job functions. These values are shared by the Board and staff, strongly held and not easily changed. Values assessment involves looking into the personal values of the members of the organization, organization values, and the organization's operating philosophy. They are the essence of the company’s culture and expression of its “personality”.

Strategic Options Development
Strategic options are creative alternative action-oriented responses to the external situation that an organization faces. Strategic options take advantage of facts and actors, trends, opportunities and threats of the outside world.

Problem Statement
How can the Barbershop at O'Hare Airport ascertain effective, differentiated, and sustainable delivery of high quality head and facial hair grooming services to the airline passengers, airline and airport workers who make air travel possible and take care of the passengers along the way.

Strategic Options Matrix

O1, O2, O4, O7, T6 --> Make better use of barbershop services for men and women.
T4, T5, T6 --> Improve recruiting and hiring processes and practices; intensify barber education and trainning programs.
O2, O6, O8 --> Enter female hair grooming services business, introduce new wash and blowout services for women.
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Strategic Alternatives/Options
[TBD]

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Strategy Statement
The strategy statement communicates three (3) key aspects of a strategy: objectives, scope, and competitive advantages.

The O'Hare Barbershop will provide its customers with the highest quality haircuts/shaves in a timely manner and quickly. The shops team of barbers will ensure each customer has an outstanding barbershop experience by providing high quality haircuts and shaves in a professionally friendly way.

Having head/facial haircut or shave at airports is not a primary consideration of most male airline passengers. Male passengers typically need head/facial hair grooming at airports as a result of impulse shopping, or to satisfy emergent needs such as needing grooming for social/business events en route a destination. Research also shows that a significant percent of men would like to get their head/facial haircuts/shaves done while at work.

The Barbershop at O'Hare Airport offers head/facial hair grooming services for men, at a location in the O'Hare Airport Hilton hotel arcade level. The shops offerings are targeted to male airline passengers, commuting flight crew, and airport/airline workers who prefer to have their head/facial grooming needs taken care of at their place of work.

The barber shop at the O'Hare Hilton hotel will be the first in a line of airport barber shops that will rolled out to the air side (post security) locations at O'Hare airport as well as other major airports in the USA such as Atlanta's Jackson- Hatsfield-Jackson airport, LAX, Newark airport, etc.

Our value proposition is to proposition is to provide quick and timely haircuts and shaves of superior quality for men in clean and relaxing environment at the airport close to their work (for airport/airline employees) and gates (for passengers). The services offered by the Barbershop at O'Hare Airport are differentiated from competitors' by:

Ease and convenience of access to head and facial haircuts and shaves for men.
High quality, at master barber level, head and facial haircuts and shaves for men.
Fast and timely head and facial haircuts and shaves ensuring passengers and workers stay on schedule.
Assured walk-in service with minimum premium and waiting time.

The overall strategy of the O'Hare Airport Barbershop is to maximize share holder value while delivering quick, timely and superior quality head/facial haircuts and shaves to passengers and workers at airports that exceeds their expectations and enhances their appearance and boosts their confidence and sense of well-being.

Corporate Strategy Statement
Corporate strategy is about creating shareholder value through entering into business in an industry such as barbering and barbershop business at airports and focusing our business on capabilities – providing haircuts styled to the shape and facial features of customers that distinguish us from competitors and enable us to attain corporate goals in order to achieve the corporate mission and objectives.

Corporate strategy defines the context for business and competitive strategy in terms of

Position in the market place: What business should we be in? Where should we put our efforts?
Internal Focus: What are unique capabilities?
Match: Is there a good fit between business and capabilities?

The answers to the above questions for the barbershop at O"Hare airport define choices/options for the barbershop corporate strategy; these include:

Enter the barbershop business at airports
Invest in building flexibility capability that enables the organization to have a team of licensed and experienced barbers capable of cutting and styling any hair type - caucasoid, negroid, and mongoloid - and are interchangeable and supported by the processes and methods to reliably deliver quick, timely, and high quality head/facial haircuts and shaves that delight customers.
Markets such as providing basic haircuts and styling for women, providing scalp and facial massage for men, providing shoe shine services, etc. offer opportunities to add value that fit our strengths

[TBD]
Business and Competitive Strategy Statement
Management decisions include options defining markets and market segments for the airport business, products and services offered to meet the needs and expectations of the target market segments, and the capabilities that the strategies call for in order to achieve those objectives. The business strategic decisions for thee Barbershop at O'Hare Airport include the following decisions and answers to the above questions:

Establish market segments based on the customers that define the target market by life style, demographics, etc. properties such as business men and professionals that need grooming before a business event, commuting airline flight crew, airport workers that prefer to have their hair cut at the place of work.
Our services are differentiated from competitors by "high quality", "superior service", "exceptional and unmatched convenience and easy access" to head/facial hair grooming services while at work or traveling through selected airports.
Well-trained and state certified barbers and stylists who are also experts in the latest male or female hair grooming techniques.

Strategy Implementation
Strategy implementation is the administrative process of making a strategy work. It involves the process of translating selected strategic choices into organizational actions/methods that if followed would realize those strategic choices. It consists of all the decisions and activities under taken at all levels in the organization required to produce strategic assets (as outputs) that close the implementation gap (difference between the future capacity development the strategy calls for, and the current endowment of resources, policies, and governance mechanisms), and can be deployed into operations to successfully turn the selected strategy (strategic choice) into reality.

Strategic Business Objectives
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 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 key 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 2018. - [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]
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).

[TBD]

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.

[TBD]

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.

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).

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
[TBD]

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.

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 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 implementation and execution requires management to regularly monitor and assess progress to drive followup decisions.

Example Execution Trace

Once a company creates a strategic plan, it has constructed what could be defined as a intended strategy that guides deliberate (top-down) execution such as the following actionable decisions:

Leadership and Senior Management Actionable Decisions

Entering barber shop services business at O'Hare Airport
Investing in developing barbershop facility and capacity
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

<<TBD>>

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.

Divisional/Function Level Management

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.

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.

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.

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.

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.

Strategic Performance Monitoring, Evaluation & Review
[TBD]

Strategic Planning
Strategic planning pushes managers to consider what the company's business character is and what it should be, and to develop a clear picture of where the company needs to be headed over the next 5 to 10 years. It involves developing a carefully reasoned answers to questions such as: "What is the vision for the company - what are we trying to do and to become?" Management's answer to "who we are, what we do, and where we are headed" shapes a course for the organization to take and helps establish a strong organizational identity. What a company seeks to do and to become is commonly termed the company's mission.

Strategic planning involves establishing strategic objectives which define 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. Often, the organization's mission and vision may remain the same while the objectives and goals may need to be revised or updated. When this happens you will need to adapt your strategy or begin a new process altogether.

Organization Objectives
The organizational goals provide the context for analysis of strategic issues to determine problems to solve. Objectives are specific achievements to help you reach the goal. Typically, they're measurable and have a timeline. Organization operating objectives for the above goals are:

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

[TBD]

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.

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.

Organizational Goals
Organizational goals are created in an attempt to achieve a desired state of sustainable profit and success. Generally, organizational goals are found in the mission/vision statements of the company; details of those goals are found in the business plan. The organizational goals fall in two categories:

Official Goals
These goals are what the organization would like to achieve, and are typically found in the company's mission and vision statement and communicate the general purpose of the organization. They can also be found in press releases.

To be ranked number 1 in quality and service among barbershops that operate at airports.
Become a destination point and the primary barbershop for airport employees who prefer to get their regular hair grooming needs taken care of at their place of work.
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Operative Goals
These describe the steps the organization will take to achieve its purpose. These goals are what the organization needs to achieve to become successful.

Increase revenue from hair cuts and shaves
Grow more sales
[]

[TBD]

Outcomes and Outcome Measures
Outputs tell the story of what you produced or your organization's activities. Output measures do not address the value or impact of your services for your clients. 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. 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.

Monitoring and Review
This involves establishing built-in procedures for monitoring, and for modifying the strategies based on changes in the external environment or the organization's internal environment.

Evaluation

Monitoring

Environmental factors
Flight cancellations
Flight delays
Business Events at Hilton

Strategic Plan Assumptions

Strategic Performance Measures

Financial performance is important because without adequate financial performance an organization risks being denied the resources it needs to grow and prosper. Strategic objectives and metrics define strategic performance; they are needed to prompt managerial efforts to strengthen a company's overall business and competitive position.

Building A Winning Barbershop at Airports