Strategic Planning

The sober reality is that most companies lack the mindset, the assets, and/or the appetite to devote to strategic planning. Changing your results is predicated on strategic planning, operational planning, and performance management planning. Strategic planning is the roadmap to the future. It means revisiting your vision, mission, and values; in other words, your “rules of the game.” Strategic planning is about where you’re headed and what you will accomplish when you arrive.

The purpose of planning is not to produce results, but to align your executive team and set the long-term course. This dialogue is critical to help these senior leaders adapt, focus, and commit.

A) Strategic Planning

1. Analyze results from the past three years
2. Consider alternatives to current problems
3. Mapping the new direction
4. Benchmarking – a new type of leadership

B) Operational Planning

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. Determining a matching budget and key performance indicators are also obligatory segments of a well designed plan.

C) Performance Management Planning

Once you’ve purposefully mapped out the next 3-5 years and have designed an operational plan that articulates HOW you are going to implement the strategic plan, teams and individuals must be made to understand their roles. Most organizations try to use their performance management system. Unfortunately, in almost every organization of which I’ve been a part, this is where the plan falls short. Leaders at all levels fundamentally dislike their organizational performance management system for three reasons:

And finally, a reality check. The likelihood a company will achieve its strategic plan is in its review of the operational budget to determine whether the required funds for success are allocated.

Basic keys to success:

  • A business coach, to help design and facilitate offsite planning retreats
  • A commitment, by the CEO, to the planning process
  • The undisputed participation of management
  • A well designed and implemented communication plan for the entire organization
  • A performance management system that holds leaders accountable
  • An effective one page organizational scorecard