Posts Tagged ‘Strategic Planning’
Strategic Planning Improves Results with Consistent Implementation
Strategic plans only help organizations when they are kept active and implemented. The strategic plan defines the business direction. That direction is based on the future, the vision of the company. Before an effective strategic plan can be developed a clear and compelling vision is needed. Visions are optimistic, the ideal picture of the future. The strategic plan is the map to the vision and then only effective if it is implemented.
Strategic plans can sound intimidating and overwhelming to many small business owners. The most effective strategic plans are those that are simple, completed with the leadership team and key people in the company. Complex documents that consume excessive amounts of time to create don’t guarantee success. In fact, the large and cumbersome strategic plan can be so overwhelming that it just doesn’t work.
Start with vision. Write down what you envision for the future. What does the future of your business look like? What do you want for the future? Vision stories are inspiring, it’s your dream. Once you have created your vision you can begin building strategies.
The vision is the destination, where you are going. The strategies are the map that gets you to the vision. Company values are the guide or the “compass” in our map metaphor for making decisions along the way. Values keep you oriented and in alignment. When values are out of alignment the company is off track; not moving in the direction of the vision.
Strategic goals can be limited to the top 6-10. By having fewer goals the plan is able to stay alive and in front of you. By alive, it means that the plan is always where you can see it, use it and keep working on it.
To set strategies for your business first look at the vision, the different aspects of the vision. Brainstorm all of the goals, all of the strategies for each aspect of the vision. With brainstorming it is important to get all of the ideas out and write them down without judging them or editing them. Often the best idea comes from an idea that at first look seems too wild or crazy. Ideas jump off of other ideas.
Once you have brainstormed all of the ideas, prioritize them. Often ideas can be grouped with similar ideas. This can help in the prioritization process. The goal is to narrow the list down to the top 6-10 strategies. What are the goals or strategies that will give your business the future you envision, that will create a breakthrough that will produce the results that you want? Those are the goals that you should be selecting as top priorities.
Creating a powerful strategic plan is just one of the first steps. Many organizations have strategic plans that are well thought out and crafted. Where they fall short is in the implementation of that plan. Implementation is the key. If you fail to implement, the results will not be what you set out to achieve.
Implementation is the result of focused and continuous action. Strategic plans don’t just happen on their own: they require your attention. By keeping the plan in front of you and the team responsible for the plan, focus is maintained. Regular meetings about the plan also keep the plan moving in the right direction. Check-in meetings hold people accountable. When teams don’t meet and don’t keep their eye on the plan, the day to day interferes and the status quo remains. In order to make changes in the results that you achieve there has to be intention and commitment on the part of the team. The check-in meeting gives the team the opportunity to review what is happening, what is interfering with the results they want and need and make the changes necessary to change the outcomes. Through the intention of the leadership, the plan and the team, the culture of the workplace can shift from one of non-performance to one of performance focused.
Performance focused companies are companies that are thriving. The energy performing teams shifts the energy of the whole organization. It becomes more positive and contagious. People become excited about the vision, the plan and their implementation of the plan. Results create energy and excitement that keeps the plan moving, it propels the plan.
Organizations that produce results have a clear vision of the future; have a plan that is simple and strategic; and they work on the plan all the time. Their actions are designed to move that plan forward. They don’t let themselves or others get in the way. By implementing the strategic plan organizations achieve results.
The Reasons Why Strategic Planning Fails
Why does planning fail when it is usually people with the brightest brains who will come together to put these plans together?
There are several reasons why planning fails:
Overly delegative to the wrong people
Very typical of these important strategic planning exercises is a big parade of management consultants telling the top management what is wrong with the company and what should be done to fix it in order to move it forward. Equally bad is to delegate this important planning exercises to internal staff who don’t exactly have much direct stake in this entire exercise e.g. frontline managers, customer service department etc.
Too Rigid and Routinised
Planning never succeeds if it is just viewed as an annual template filling exercise. Most of the time when planning cycle has arrived, there would be a flurry of forms and templates to fill and key performance indicators to consolidate. In this fashion, there is never really true debate of where the company should be heading strategically and what should be done to reach there.
Only Static Analysis
Strategic planning is about a longer term view and sees into the far horizon. Hence, analysis should always be taken with a broader, long term view. Sadly, many organisations are too bogged by planning by numbers and they tend to be very myopic and static. They analyse issues of today, when in a strategic sense, they should be looking at issues of tomorrow. Only so, would they be able to see how the organisation can stand in the times of tomorrow.
Garbage In, Garbage Out
This is the most common reason why planning fails. If there is no good inputs towards the plan to start with, then the output can never be expected to be robust and insightful.
Not Linked to Operations Or Implementation
The real value in a strategic plan is the successful implementation of that plan. Many great plans fail to take off as it does not link to operations or implementation. Great plans only remain as great in paper and writing and does not contribute value unless successfully implemented.
Resistance to Change
People are typically resistant to change and prefer to stay in their comfort zone. With people who are anti-change, it would be hard for the organisation to successfully push through their strategy. Hence, it is important that communication of the plans be handled carefully, as well as the proper managment of such resistors.
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