Strategic Planning

If you want to change your RESULTS, change your PLANNING process. When results really matter, leaders must align their strategic plan, operational plan and performance management system.

Here is the sober reality, most companies lack the mindset, assets or appetite for the dedication to the process of strategic planning, which includes taking the risks necessary to outperform their competition in today’s economy. We are often asked, what do your successful businesses have in common, the answer has a few key themes, but the answer always starts with and obsession to plan more strategically.

First let’s distinguish between strategic planning and operational planning. Strategic planning is the roadmap to the future. Strategic planning is about taking the time to revisit your vision, mission and values, which are often referred to as “rules of the game.’ Strategic planning is about where are you headed and what will you excel at when we get there. Strategy is about combining activities.

The purpose of planning is not to produce results, it is to align your executive team, and set the long term direction for the company. The process of dialog at these offsite meetings is perhaps one of the most powerful components to help senior leaders learn and become 100% committed to the new direction.

The operational plan is how you are going to implement the strategic plan. Under normal circumstances, the operational plan should be completed during the fourth quarter each year for the coming year. Determining a matching budget and key performance indicators are necessary components of any well designed strategic plan. When designing the operational plan, you must:

1. Identify the forces working for and against your new thinking
2. Test your thinking against the components of all effective strategies
3. Identify who is responsible for which elements of the plan
4. The operational plan also requires and analysis of your operations, key performance indicators, budgets and department or divisional action plans
 
5. Develop an implementation timeline for achieving the elements of the plan
6. Design and implement a company-wide communication plan for implementation

So you have taken the time to strategically map out the next 3 to 5 years, then you have designed an operational plan that articulates HOW you are going to implement the strategic plan, now it is time to help teams and individuals understand their role in executing the plan. In most organizations, they could use their performance management system, unfortunately almost every organization I have been in. This is where all that planning falls short. Leaders at all levels fundamentally dislike their organizational performance management system for fundamentally three reasons.

1. The system is too complicated
2. Leaders not hold other leaders accountable for using the system effectively
3. Most leaders are not very effective at providing periodic and effective coaching and feedback

All the planning in the world is down the drain, if every manager and or employee cannot tell you what are the top three most important company priorities are for their company this year.