2017 Strategic Planning Kit

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2017

2017 Strategic
Strategic Planning
Planning Kit:
Kit:
GROW YOUR BUSINESS WITH PURPOSE

IDENTIFY PURPOSE 1

2 ANALYZE RESULTS
3 STRATEGY PLANNING

MEETING RHYTHM 4

EMPLOYEE MOTIVATION 5

PLANNING ROADMAP
Table of Contents
Introduction 01

Step One: Identify the purpose of your business 06

Step Two: Analyze results for continuous improvement 09

Step Three: Understand how strategy guides planning 13

Step Four: Establish a meeting rhythm for success 18

Step Five: Involve and motivate your employees 21

Strategic Planning Roadmap 25

Conclusion 26

Strategic Planning Worksheet 27


Introduction

The majority of small business owners


created a business plan as part of the launch
their business.
But with the day-to-day of running the business, a year or
even many years can go by before you refer back to that
planif at all.

Well, a lot can happen in the business during those years:


priorities may have shifted, you may have added new products,
key staff may have been added or moved on.

Suddenly, you realize that as an organization, your course has


changed, but your long-range plans arent updated to reflect
the new direction youre taking.

Business strategy means having a long range plan and


milestones along the way that ensure you get there. And it
should be something you do each and every year.

2017 Strategic Planning Kit: Grow your business with purpose 1


Introduction

The best way to ensure you reach your goals is to go through


the important process of annual planning. This will help you
formally identify if youre on track, or even if changes in
circumstances, like new technology, market changes, turnover,
new products, and more, mean you need to reassess your long
range plan. Each year, you take the time to measure progress,
and assess the specific steps youll take in the coming year to
ensure that you stay on track toward your long range goals.

At Infusionsoft, we believe in the power of collaboration. We


invite our entire company to participate in our annual planning,
because some of the best ideas come from the people whose
hands are closest to the work.

Like many new small business owners, you probably dream of


financial independence, the freedom of spending your time as
you wish, being your own boss, or feeling content by filling a
void in the market.

2017 Strategic Planning Kit: Grow your business with purpose 2


Introduction

A recent report by Infusionsoft and Emergent confirms that growing


a business is part of most small business owners definition of
success. But not growth for growths sake. Most small business
owners are neither inspired, nor driven, to build large empires.
Check out our report, Defining and Achieving Small Business
Success, to see how small businesses define success, the
challenges they face in achieving success, and how to overcome
those obstacles.

Unfortunately, many go-getters dont know whats in store as


they venture forward to implement their brilliant ideas; they just
know they want to go into business for themselves. However,
sometimes the reality of owning a business is more daunting
than you imagined. Luckily, by focusing on proactive and
strategic planning, you can take control of your small business
and begin growing your dream into a successful reality.

This guide is designed to get you started on your annual


strategic plan. Youll get:

A detailed walk through of each aspect of the


planning process

A roadmap for the process

A detailed worksheet that will prompt you to establish


meeting schedules, tackle issues, and set milestones
for success

2017 Strategic Planning Kit: Grow your business with purpose 3


Introduction

A business owner wears three hats


In The E-Myth Revisited, Michael Gerber describes three hats
worn by new business owners. You probably feel comfortable
in two of them, the technician and entrepreneur hats, but
you also acquired a manager hat along the way, which may
be a less natural fit. The manager hat requires planning and
pragmatism. If youre like most entrepreneurs Ive met, youd
rather come up with ideas than plan, organize and manage the
financials. However, Gerber insists that all hats must be worn in
order to succeed.

Guidelines For Strategic Success


Think realistically about where your business is going

Be flexible about your expectations

Set concrete performance measures

Create a plan to achieve performance measures

The importance of strategic planning


Turning your vision into reality requires a healthy, realistic
approach and a well-crafted path toward success. You need to
think realistically about where your business is going and be
flexible about your expectations. Setting concrete performance
measures is a great idea, but you need to support them with a
realistic plan to achieve them.

2017 Strategic Planning Kit: Grow your business with purpose 4


Introduction

This kind of strategic planning is crucial for success, but you


have to do it right. And it takes discipline to do it consistently.
Unfortunately, this is tough for most small businesses.

In this strategic planning kit, were going to look at the strategic


planning process we used at Infusionsoft to grow our company
over 10 years into a $100 million enterprise. By following these
guidelines, your business can do more than just survive. You
can thrive.

Lets get started.

2017 Strategic Planning Kit: Grow your business with purpose 5


Step One: Identify the purpose of your business

Step One: Identify the


purpose of your business
Have you ever asked, simply and honestly, What is the
purpose of my business?

Every business needs a vision to guide and influence strategies


and decisions. After all, if you dont know where youre going,
youll never get there.

In addition, to build cohesion and foster growth, everyone


in your company has to share the vision. Thats why its so
important to clarify your visionunderstanding the why of
your businessbefore building a strategy.

In his book, Beyond Entrepreneurship, Jim Collins describes


how a business vision is made up of three distinct elements:
Purpose, Values, and Mission.

...if you dont know where youre going,


youll never get there.

2017 Strategic Planning Kit: Grow your business with purpose 6


Step One: Identify the purpose of your business

Infusionsofts purpose and current


mission are:
Purpose: To help small businesses succeed.

Current Mission: To create and dominate the market for


all-in-one sales and marketing software for small business,
with 100,000 customers worldwide.

Every employee at Infusionsoft knows our company vision


from the start. We also reference our purpose in conversations,
meetings, email exchanges, and more, so it shapes our work
each day. A vision shared by all employees, whether its just
you or 12 others, is crucial to achieving your business goals.
Just as valuable, a shared vision helps create a sense of
community, making the journey more satisfying.

2017 Strategic Planning Kit: Grow your business with purpose 7


Step One: Identify the purpose of your business

A shared vision helps create a sense


of community, making the journey more
satisfying.

In the worksheet at the end of this kit, well give you an


opportunity to create a purpose statement for your business,
which will propel you through your annual planning session.

2017 Strategic Planning Kit: Grow your business with purpose 8


Step Two: Analyze results for continuous improvement

Step Two: Analyze


results for continuous
improvement
We like to involve Infusionsoft employees from every
department in our quarterly planning process. They give input
through a series of exercises we call SWOT+.

Why do we call it SWOT+?


SWOT stands for Strengths, Weaknesses, Opportunities,
Threats. This kind of self assessment isnt new. Its the +
thats a bit radical. We use the plus concept to refer to the
inclusive, collaborative approach. Our exercise is not just for
top executives: we invite our entire community to participate,
and the effect has been powerful for Infusionsoft.

Many years ago, we learned how to take a team through a


process that yielded the strategic issues we needed to address
in our priority setting. Over the years, weve tried several terms
to describe our process, and SWOT+ is the one that stuck.

2017 Strategic Planning Kit: Grow your business with purpose 9


Step Two: Analyze results for continuous improvement

SWOT+ is an exercise in focus and


alignment, a bridge between your
mission and the goals and priorities
youll identify in the next step.

Take Action: Involve your entire team in a SWOT+ exercise

In a SWOT+ session, everyones voice is heard. Its a great way


to celebrate successes, learn from mistakes, and move forward
as a team, but its important that the facilitator of a SWOT+
session create a completely safe environment where honest
input can be given and received openly.

Perspective is another necessary factor for a successful


SWOT+ session. While a group will naturally respond to
questions from their own team or departments point of view,
the facilitator should help maintain a company perspective.
Everyone is working toward shared solutions that support the
mission.

Encourage everyone to speak up and participate. Write


down all the ideas, preferably on poster board or giant, sticky
notes hung on the wall. As you progress through the SWOT+
exercises, you can refer to the work you did earlier in the
session.

2017 Strategic Planning Kit: Grow your business with purpose 10


Step Two: Analyze results for continuous improvement

The full SWOT+ process:


1. Accomplishments (at least 30 minutes): Talk about all of
the good stuff and create a positive vibe, reflecting on the
great work and results of the previous year.

2. Lessons Learned (30 minutes): Include the good, bad, and


ah-ha moments of the year, and maintain constructive
learning rather than allowing it to turn into a gripe
session.

3. SWOT analysis: (1 hour): S & W are internal to the


business; O & T are external. Spend up to 15 minutes
on each item. Move through these sections in order, but
allow for a few additions to previous topics as people get
more ideas.

4. Strategic Issues (30-60 minutes): This is the culminating


step to identify the top three to five issues you will to
tackle this year or quarter. Based on the previous three
steps, use this step to capture strategic issues in this
format: How do we achieve X outcome, given Y situation
or obstacle? Caution: The focus here is to articulate the
core issues; dont attempt deep problem solving at this
point.

With strategic issues in hand, the group can now identify the
top three to five priorities for the year ahead. Remember,
SWOT+ is an exercise in focus and alignment, a bridge
between your mission and the goals and priorities youll
identify in the next step.

Note: The worksheet at the end of this kit includes the layout
for the SWOT+ session, with tips on how to get the most out of
theKit:
2017 Strategic Planning session.
Grow your business with purpose 11
Step Two: Analyze results for continuous improvement

Where performance is measured,


performance improves. Where
performance is reported, performance
improves dramatically. Where
performance is reported publically,
performance improves exponentially.

2017 Strategic Planning Kit: Grow your business with purpose 12


Step Three: Understand how strategy guides planning

Step Three: Understand


how strategy guides
planning
Regardless of the size of the organization, strategy is often
misunderstoodand rarely done well.

When you take the time to define where


youre going, you can develop a plan,
stay on course, make adjustments as
needed, and reach your destination.

The foundation of a great strategy is leverage: Use your


organizations strengths to gain an outsized return. With this
in mind, what resources and capabilities can you leverage for
maximum gain?

2017 Strategic Planning Kit: Grow your business with purpose 13


Step Three: Understand how strategy guides planning

Performing an inventory of assets is a good place to start.


To develop a competitive advantage that is sustainable, we
recommend focusing on three to five core strengths of your
company.

Now you may have heard strategy described as an exercise


in saying no. While its true that resources can be scarce for
many small businesses, annual planning is really about making
the best use of all your resources so that nothing is forgotten
or ignored. This kind of strategy will help put you ahead of your
competitors.

A Strategy Planning Methodology


You need to bridge your overall vision to daily operations.
The idea is to break down your current mission into annual
and quarterly priorities. The work of quarterly priorities then
gets broken down into SMART objectives with specific owners
and deliverables.

2017 Strategic Planning Kit: Grow your business with purpose 14


Step Three: Understand how strategy guides planning

Heres what the process looks like in more detail:

Mission:

The current mission is typically achievable within the coming


three to five years. We often use the term BHAG (pronounced
BEE- hag) or Big Hairy Audacious Goal (from the book Built to
Last by Jim Collins).

Strengths to Leverage:

Three to five key strengths you need to utilize to achieve


your BHAG.

Strengths to Develop:

Three to five key strengths you will need to develop in order to


achieve your BHAG.

Annual Priorities:

Three to five priorities you will focus on this year to either


leverage current strengths or develop new strengths that will
move you closer toward your BHAG.

Annual Priorities must:

Support the current mission (via strengths to leverage and


develop)

Be set annually by the leaders

Not become individualized by each department

2017 Strategic Planning Kit: Grow your business with purpose 15


Step Three: Understand how strategy guides planning

Quarterly Priorities or Tactical Operating


Priorities (TOPs):

Three to five priorities that support the annual priorities. These


are spelled out for all four quarters of the coming year, giving
you measurable milestones throughout the year.

SMART Objectives:

Projects and/or large tasks required to achieve the


quarterly priorities.

2017 Strategic Planning Kit: Grow your business with purpose 16


Step Three: Understand how strategy guides planning

SMART stands for:

Specific: Specific enough to fully understand

Measurable: Can tell when its complete

Achievable: Can be completed

Relevant: To the game plan

Time-Bound: Has a deadline (a specific date)

As you can see, the Strategy Planning Methodology makes it


truly possible to bridge directly from your companys overall
mission all the way to SMART objectives for each member of
your staff. These objectives form the basis of specific decisions
and actions that your employees need to carry out this quarter
to make progress toward the mission.

The worksheet at the end of this kit will take you step by step
through each of these strategic concepts: BHAG, TOPS, and
SMART. As you answer each question, youll see how they fit
together and align your entire business in one direction.

Perhaps the most powerful effect of this method is that your


employees co-create their vision, and then have a tangible
map to show how their work contributes directly to the
company vision.

2017 Strategic Planning Kit: Grow your business with purpose 17


Step Four: Establish a meeting rhythm for success

Step Four: Establish a


meeting rhythm for success

Strategic planning isnt a one-time event.


Once youve identified a strategy, its
crucial to stay focused.

One of the best ways to do that is with a steady rhythm of


productive meetings. Use them to assess and learn from
successes or failures of the current strategy, make course
corrections, and identify priorities for the coming quarter or year.

You may be wondering how often to revisit your strategic


plan. The best meeting rhythm is specific to your business.
Youll need to identify the right mix of daily, weekly, monthly,
quarterly, and annual meetings for your business, and make
them happen consistently. If you have employees, draw upon
their knowledge of key dates and deliverables to help find the
right meeting rhythm.

2017 Strategic Planning Kit: Grow your business with purpose 18


Step Four: Establish a meeting rhythm for success

Take Action: Work with your team to identify a cadence of ongoing


meetings that will support your defined goals and objectives.

Verne Harnish shares a good rhythm in his book, Mastering


the Rockefeller Habits:

Meeting Rhythm
Two days for annual planning (deliverables = annual and
first quarter priorities)

One day for quarterly planning (deliverable = priorities for


upcoming quarter)

Half-day monthly meeting to discuss progress on


quarterly priorities and business-critical issues

Weekly meeting to review key performance indicators for


the business

Optional: quick huddles for daily win/loss reporting

Strategic planning requires thoughtfulness and time. So, we


recommend devoting two full days each year to create Annual
Priorities, and one full day each quarter for Quarterly TOPs.
Also, plan to spend a half day each month to assess progress
on SMART objectives and discuss unexpected events or results
that surface in the course of running your business.

Communication with your employees is critical to keeping


the business on track. At times, this may mean holding daily,
15-minute huddles to review key metrics or other performance

2017 Strategic Planning Kit: Grow your business with purpose 19


Step Four: Establish a meeting rhythm for success

indicators. The sooner you get your business into a consistent


planning and execution rhythm, the sooner youll be able to
delegate more responsibility to your team.

To give you a hand thinking through your meeting schedule,


weve included in the worksheet at the end of this kit a chart to
help you plot out the details.

2017 Strategic Planning Kit: Grow your business with purpose 20


Step Five: Involve and motivate your employees

Step Five: Involve and


motivate your employees

Involving your team in the strategic


planning process increases their
personal investment. This is powerful
because it drives organizational
alignment and a higher probability
of success.

Involving your team in the strategic planning process increases


their personal investment. This is powerful because it drives
organizational alignment and a higher probability of success.

Your team can provide you with a range of perspectives to help


shape a winning strategy.

2017 Strategic Planning Kit: Grow your business with purpose 21


Step Five: Involve and motivate your employees

Your strategy must translate into day-to-day activity. Otherwise,


how will team leaders know what to do in order to achieve the
companys goals? Daily relevance is also a key for employees
who arent in leadership roles. They need to be aware of
how their job affects the mission of your business. Each
person matters. People need to know why and how their daily
activities support the mission.

Increase employee clarity and confidence


At Infusionsoft, weve found an excellent way to provide clarity
and confidence to employees. We call it Big 3. These are the
three primary responsibilities of each role. The Big 3 do more
than help employees know how they are doing in their roles,
they also help connect the dots between what employees do
each day and the companys mission.

For some employees, the Big 3 can change quarterly. For


others, it may make more sense to keep their current Big 3 for
an entire year. But for everyone, its important to review Big 3
periodically to ensure clarity and alignment with your mission
and SMART objectives.

By focusing on three key metrics, employees see how their


performance affects the company as a whole. It can be too
easy for someone to sit at a desk, wondering about the impact
they have on the mission, unsure of the real difference they are
making. Regardless of what you call it, you and your employees
will feel more confident if you create this type of mechanism to
gauge performance.

2017 Strategic Planning Kit: Grow your business with purpose 22


Step Five: Involve and motivate your employees

At Infusionsoft we review the Big 3 on a quarterly basis. We


also ask our employees to report progress and results for their
Big 3 each Friday. That way, everyone knows

how they contributed to our success before heading home for


the weekend.

Take Action: Define three key primary responsibilities that connect


to your overall mission. Work with your team to create a Big 3 for
each of your employees.

Company culture and employee productivity


People are the core of Infusionsoft. Part of our strategy is to
help employees do their best possible work, and we do this by
creating an environment where people feel comfortable. We
want them to feel safe and valued by their co-workers, so they
can express their ideas and follow their passions.

Each individual has a unique and special skill set we call


native genius. In order to achieve our company goals, we
foster an environment where each employee is empowered
to thrive and exert their own special abilities. It works. People
who feel uplifted in their work environment feel valued by the
company and more emotionally invested. In turn, this motivates
them to produce amazing results. We attribute a big part of our
success at Infusionsoft to our culture.

2017 Strategic Planning Kit: Grow your business with purpose 23


Step Five: Involve and motivate your employees

Take Action: Identify your own native genius and work with your
team to identify the native genius of each employee.

Note: Use the worksheet at the end of this kit to think through how
the Big 3 concept will work for your business, including meeting
frequency,
2017 Strategic Planning review
Kit: Grow your criteria,
business with and how
purpose to find 24
Strategic Planning Roadmap
The annual strategic planning process involves a lot of moving parts. This roadmap
serves as a checklist to give you a birds-eye view of the process to help youv think
through your goals and the milestones through the year to keep you on track. Keep
this checklist on hand as you go through the accompanying worksheet below.

This chart assumes your fiscal cycle follows the calendar year, but you can
adjust as necessary.

DECEMBER MARCH JUNE


Establish/Revisit Purpose Review Q1 progress against Review Q2 progress against
TOPs and SMART objectives TOPs and SMART objectives
Establish/Review progress
toward BHAG Review progress against Q1 Review progress against Q2
BIG 3 BIG 3
Set annual priorities for new
year Set Q2 (Apr. - Jun.) BIG 3 for Set Q3 (Jul. - Sep.) BIG 3 for
individuals and teams individuals and teams
Set quarterly TOPs and
SMART objectives

Set Q1 (Jan. - Mar.) BIG 3 for


individuals and teams

Establish meeting rhythm to


ensure active follow up on all
priorities and objectives

SEPTEMBER DECEMBER
Review Q2 progress against Revisit Purpose
TOPs and SMART objectives
Review progress toward
Review progress against Q2 BHAG
BIG 3
Set annual priorities for new
Set Q4 (Oct. - Dec.) BIG 3 for year
individuals and teams
Set quarterly TOPs and
SMART objectives

Set Q1 (Jan. - Mar.) BIG 3 for


individuals and teams

Review Q2 progress against


TOPs and SMART objectives

Review progress against Q2


2017 Strategic Planning Kit: Grow your business with purpose BIG 3 25
Conclusion
Strategic planning is the link between a great idea and
business success. Based on the purpose for your business,
a smart strategy helps you develop a plan of action. To help
you and your team stay on track, meet at regular intervals to
assess, and enhance your strategy. Employee involvement is a
key to motivation, aligning personal goals with your company
mission. Analyzing company, team and individual performance
is a great way to keep everyone working together.

In small business, a strategic game plan can help you do more


than just survive. You can thriveand win.

Must Read Books for successful strategic planning:

The E Myth Revisited, Michael Gerber

Beyond Entrepreneurship, Jim Collins

Built to Last, Jim Collins

Mastering the Rockefeller Habits, Verne Harnish

Ready to plan your own business strategy? Our worksheet


will help get you started.

2017 Strategic Planning Kit: Grow your business with purpose 26


Strategic Planning Worksheet
Turning your business vision into reality requires a healthy, realistic approach and a well-crafted path toward success. You
need to think realistically about where your business is going and be flexible about your expectations. Setting concrete
performance measures is a great idea, but you need to support them with a plan to achieve them.

Use this worksheet to assist you in creating a strategic planning process that will help your business survive and thrive.

Step One: Identify the purpose of your business.


Every business needs a vision to guide and influence strategies and decisions. After all, if you dont
know where youre going, youll never get there.

1. What is your companys purpose?


2. What are your company values?
3. What is your company mission?

Inspiration: Read about our culture to learn more about how our purpose, values,
and mission shape who we are.

Step Two: Analyze results for continuous improvement.


In a SWOT+ session, everyones voice is heard. Its a great way to celebrate successes, learn from
mistakes, and move forward as a team. Its important that the facilitator of a SWOT+ session create a
completely safe environment where honest input can be given and received openly.

Involve your team in a SWOT+ exercise

1. Accomplishments (30 minutes): Talk about all of the good things and create a
positive vibe.

Tip: Reflect on the great work and results of the previous quarter. This is your chance to pat
yourself and your team on the back for a job well done.

2017 Strategic Planning Kit: Grow your business with purpose 27


2. Lessons Learned (30 minutes): Include both the good and bad, ah-ha moments of
the year.

Tip: Maintain constructive learning rather than allowing it to turn into a gripe session.

3. SWOT analysis: Strengths, Weaknesses, Opportunities, Threats (one hour): Strengths and
Weaknesses are internal to the business; Opportunities and Threats are external. Spend
up to 15 minutes on each item.

Tip: Move through these sections in order, but allow for a few additions to previous
topics as people get more ideas.

4. Strategic Issues (30-60 minutes): This is the culminating step to identify the top three to
five issues you are going to tackle this year or quarter. Based on the prior three steps,
use this step to capture strategic issues in this format: How do we achieve X outcome,
given Y situation or obstacle?

Tip: The focus here is to articulate the core issues; dont attempt deep problem solving
at this point.

Step Three: Understand how strategy guides planning.


The foundation of a great strategy is leverage: use your organizations strengths to gain an outsized
return. With this in mind, what resources and capabilities can you leverage for maximum gain?

Define and leverage your strengths

1. List the three to five core strengths of your company. ___________________________


____________________________________________________________________

2. What is your BHAG? BHAG: (pronounced BEE- hag) Big Hairy Audacious Goal ________
____________________________________________________________________
____________________________________________________________________

3. List three to five key strengths you need to utilize to achieve your BHAG. ____________
____________________________________________________________________

4. List three to five key strengths you need to develop in order to achieve your BHAG ____
____________________________________________________________________
2017 Strategic Planning Kit: Grow your business with purpose 28
5. List three to five priorities you will focus on this year that will move you closer to your
BHAG. _______________________________________________________________
____________________________________________________________________
____________________________________________________________________

6. List three to five TOPs/quarterly priorities that support your annual priorities. TOP:
Tactical Operating Priorities ______________________________________________
____________________________________________________________________
____________________________________________________________________

7. For each quarterly priority, list five to 10 SMART objectives that will help you achieve your
quarterly goals. SMART: Specific, Measurable, Achievable, Relevant, Time-Bound _____
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________

Step Four: Establish a meeting rhythm for success.


Strategic planning isnt a one-time event. Once youve identified a strategy, its crucial to stay focused.
One of the best ways to do that is with a steady rhythm of productive meetings.

Create a meeting schedule that meets your objectives. For each, identify the key players who will
need to be involved, the time necessary to complete your objectives, and any other essential items
(such as meeting space).

KEY PLAYERS TIME SPACE OTHER

ANNUALLY

QUARTERLY

MONTHLY

WEEKLY

DAILY

2017 Strategic Planning Kit: Grow your business with purpose 29


Step Five: Involve and motivate your employees.
Involving your team in the strategic planning process increases their personal investment. This is
powerful, because it drives organizational alignment and a higher probability of success.

Identify your own native genius

1. The Big 3: Define three key primary responsibilities that connect to your overall mission.
Work with your team to create a Big 3 for each of your employees. _________________
____________________________________________________________________
____________________________________________________________________

2. How often will you review and track and measure your Big 3? ____________________
____________________________________________________________________
____________________________________________________________________

3. Identify your native genius. Work with your team to identify the native genius of each
employee. ____________________________________________________________
____________________________________________________________________
____________________________________________________________________

Strategic planning is the link between a great idea and business success. In small business,
a strategic game plan can help you do more than just survive. You can thriveand win.

2017 Strategic Planning Kit: Grow your business with purpose 30


Ben Snedeker
Ben Snedeker joined Infusionsoft in 2015 to do full time
that which he loves most: writing the stories that inspire
action. He holds a MFA in Creative Writing from Emerson
College. In his prior life, he was a freelance writer
working days at MIT as a grant manager. After a decade
of paper pushing in academia, writing for a fast moving
company like Infusionsoft is his dream come true. A
perennial tinkerer, when hes not in the office, he cant
help but tend his bonsai trees, edit other peoples writing,
and make sure his kids clear their plates before they
leave the table.

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