Strategic Planning
By Gary Cohen - Principal
Whether you are a business owner, executive or manager, how often are you surprised by your clients or customers, your employees or your competitors? Do you find yourself asking, "Why didn't I think of that?" If this happens frequently, you are being reactive rather than proactive and it may mean that you aren't doing strategic planning or that your strategic planning isn't as effective as it needs to be.
Before we talk about strategic planning, let's make sure that we are on the same page as to what it entails. Strategic is defined as relating to the identification of long-term or overall aims and interests and the means of achieving them. Planning is the process of organizing, arranging and designing. Strategic Planning is an organization's process of defining its direction, and making decisions on the allocation of time, talent, effort and financial resources to follow this approach.
Strategic planning involves the definition of an organization's mission, values and goals. It is often done in tandem with a S.W.O.T. analysis of Strengths, Weaknesses, Opportunities and Threats. It also involves most or all of the questions that we learned to ask in grammar school. Now we must take the questions of 'who, what, when, where, why and how?' and apply them to our organization's clients, customers, products and/or services.
During this process we will find ourselves examining what we do well and where we can improve. We will note which departments and individuals are responsible for success, which ones seem to be blocking success, and how to increase the former in our organization while minimizing the latter. We must also define which metrics we will use to measure success in our company.
Another important piece of the planning process is to think like an outsider. If we were starting a new company and wanted to compete with our current company, what would we do? The answers to this question will reveal weaknesses and threats and provide us with a part of our strategy. If a competitor would do certain things to claim a portion of our business, then we should include these in our plan.
You may be wondering who should be involved in the strategic planning process. Department heads, managers and executives may all have worthy contributions. While the CEO should have some involvement, it is best to maintain a reasonable distance, reviewing the process at regular intervals rather than becoming immersed, as the latter will reduce significant input by those who are closer to the front lines.
After all of this hard work and effort to develop a great strategic plan, remember that it doesn't end there. It is only beginning. The strategic plan must next move from a framework into action. Corporate goals must flow downward into individual goals. Strategic management will convert the plan into action that fosters appropriate decision-making. Over time, it is paramount to review and evaluate the effectiveness of activities and adjust the strategic plan as necessary. If you haven't been using a strategic plan, if your plan has been half-hearted or if you haven't transformed your plan into action, now is the time to do so. You have worked hard to transform your ideas and vision into a viable organization with outstanding products or services. Don't sit idly by while someone else gobbles up your clients, customers or market share.
Nperspective has assisted many clients in improving their business results through implementing or helping with their strategic planning process. Contact Russell Slappey at 407.448.1781 or rslappey@npcfo.com for a complimentary consultation.
