IMPLEMENTATIONPLANStrategicCategoriesLongTermGoalsPerformanceIndicatorsExampleFINANCIAL1.Toincreaseoperatinggrossmarginto7%.OperatingGrossmargin=ProductGrossProfitminusdirectoperatingcost.CashFlowIncomestatementgrossmargin,netincome2.Achievesalesof$500,000,000andshiftcurrentsalesmixtoconcentrateprofitgenerationonhighmarginservicelines.($500,000,000isa12.5%annualincrease)RevenuegrowthbycategoryCashFlowReturnonequity&otherfinancialratiosNetIncomeCATEGORY2:CATEGORY3:(etc.)CATEGORY:FINANCIALSTRATEGIES(AnExample)LongTermGoals:1.Toincreaseoperatinggrossmarginto7%.OperatingGrossmargin=ProductGrossProfitminusdirectoperatingcost.2.Achievesalesof$500,000,000andshiftcurrentsalesmixtoconcentrateprofitgenerationonhighmarginservicelines.($500,000,000isa12.5%annualincreaseStrategiesTimetableAccountabilityFeedbackMechanismResources1.Developconstructioncostsandcycletime.3rdQuarter1995Don-Costpersquarefoot-Revenuetocostratio2.Reviewcurrentsalesmix3.Criticallyreviewlong-termprofitabilityofcurrentdealers.4.Revisitthelong-termstrategyfortruckplazasfromaprofitabilityandindustrytrendsperspective.5.Other4thQuarter1995PaulK-Returnoninvestment-Marginalcostanalysis6.Developatechnologyandautomationplanincludingassessment,investmentanddeploymentcriteriatocreateastateoftheart,highlyefficient,paperless,anddecentralizedenvironment.4thQuarter1995PaulK-AdherencetoSystemsPlan-Costas%ofRevenue-Salesperemployee-Benchmarking/industrystandards7.Establishtargetsaleslevelsforallrevenuesegments.4thQuarter1995Bill/PaulK-Actualtoplancomparison8.Establishoperatingperformancestandardsandmeasureperformance4thQuarter1995Bill/PaulK-Actualtostandardcomparison-OperatingmarginCATEGORY2:______________________________LongTermGoals:StrategicCategoriesLongTermGoalsPerformanceIndicatorsStrategiesTimetableAccountabilityFeedbackMechanismResourcesCATEGORY3:______________________________LongTermGoals:StrategicCategoriesLongTermGoalsPerformanceIndicatorsStrategiesTimetableAccountabilityFeedbackMechanismResources
