Strategic Planning: Simple and Straightforward Gets Results

Paul Forsythe, Pioneer Business Advisors
April 15, 2005

Dreading another round of strategic planning? Banished to a conference room for a week with a leadership team or board that struggles with the decision of what to have for lunch—let alone come to consensus on a two- to five-year strategic plan? You’re not alone. And though you would certainly have plenty of company in your misery, chances are you would like to avoid the whole conflict-ridden, questionable-ROI, process-heavy experience. Well, here’s your way out. . . . (or actually in) to an approach that keeps it simple, straightforward, and focused on hard business results.

Keep It Simple

Three basic questions provide the framework for strategic discussions: 1) Current state—where are we? 2) Future state—Where do we want/need to be? 3) Identifying the major initiatives—how do we get there? (Figure 1). All the proprietary tools, processes, and models out there won’t create any more helpful strategic plan than these three simple questions asked over and over.

Figure 1

Often, we make strategic planning harder, more complex, and ultimately less effective than it has to be. Leading the list of mistakes is the assumption that we all know about, and agree on, where we are in terms of the current state of our business. “It’s obvious, isn’t it? We’re here, aren’t we?” Frankly, no, it’s not obvious to everyone and, because perception is a fickle thing, we don’t always agree on where here is. The same is true for where do we want/need to be, and subsequently, how can we best get there.

Plainly asking each question, thoroughly acknowledging the many and diverse answers, and, in a spirit of dialogue, coming to an agreement on each point provides the foundation for a powerful, long-range plan.

Remember, good enough is good enough. Let common sense rule the day. Don’t allow yourself to be pressured into an endless series of processes and exercises when a simple, well-facilitated discussion will suffice. Admittedly, there is no such thing as a plan so perfect that it can’t be improved, but consider your plan a living document, revisit it often, and allow it to grow as your business grows.

Make It Straightforward

Only the foolhardy would set off on a journey without first considering the wherewithal of reaching their destination. The same applies to business transformation. Consider the following formula (Figure 2):

Figure 2

If you’re going to take a straightforward approach to your strategic plan, you can remove some of the guesswork by asking the tough questions up front. For example:

· Does our figuring of the transformation formula stack up in favor of a successful culture shift? · Do we have all of the empowerment elements, such as resources, authority, and motivation, in place or at our disposal to move through the transformation? · Are we united as a leadership team and do we have sufficient buy-in from board members, employees, customers, and other stakeholders? · Do our leadership team and board members recognize and respect their different roles and responsibilities? · Are relationships between leaders and board members such that they can productively discuss strategy?

Don’t create a plan that’s destined to fail. Know your limits and manage expectations—face reality and do what works.

Demanding Hard Business Results

Too often long-range planning is considered superfluous to the “real day-to-day work.” Unfortunately, after only a few short weeks, many companies set aside their strategic plans in light of what they view to be more pressing issues. They get lost in the “have t” minutia of today and lose track of the “want to” big picture of tomorrow. Long-term, sustainable profitability gets replaced with demands to show immediate financial returns, quick fixes replace systemic process improvement, and real business model transformation is supplanted by cost-cutting and a constant re-swizzle of org structures.

A solid strategic plan has solid metrics, unmovable mile markers that tell us how we’re progressing. When we reach a marker, we celebrate. Conversely, when we fail to reach a marker we must face that reality, deal with the consequences and make the necessary adjustments. Accountability from top to bottom is key. Results, results, results—nothing is more inspiring for a leadership team, engaging for employees or satisfying for customers and shareholders.

Connecting the Dots

Large-scale planning is all about providing a framework that allows all of us—and each of us—to make and implement good decisions. To do that, everyone—that’s pronounced “EVERY ONE!” in the business must have a direct line-of-site from the customer/shareholder through the long-range strategies to where they personally execute on short-term goals (Figure 3). And, to do that, the method used for, and the results of, strategic planning must be simple enough for everyone to understand and use, sufficiently straightforward and uncompromisingly focused on results.

Fig. 3

Pioneer Business Advisors, Inc. is a corporate consulting and training company with clients from all over the world. For more information on strategic planning or other training solutions, visit http://www.www.pioneerbusinessadvisors.com or contact Paul Forsythe at 719-338-6471 or Pioneer.BA@adelphia.net.