Why strategic planning gets put off
Many business owners have heard that strategic planning is important, especially as they see competitors grow and soar past financial and other business milestones. Yet many have not implemented or even outlined a strategic plan, relegating it to a low priority or an “I’ll get to it eventually” task.
Here’s what they need to know: you can’t get where you’re going if you don’t know how to get there.
The benefits of a tailored strategic plan
A strategic plan, when customized to your business needs and objectives, can help you and your company become and stay successful.
Stabilize your business: you will become proactive, rather than reactive, as it lessens the likelihood that you will be a victim of unforeseen circumstances such as an unpredictable economy or poor-paying clients.
Clarify your goals: planning defines realistic, measurable goals and shows how you and your business can reach them.
Develop your products or services: a strategic approach can identify the strengths and weaknesses in your product or service lineup.
Holistic quality control: stops or reduces rework, self-inflicted problems, employee dissatisfaction, unprofitable service lines, bad debt, and/or poor inventory control.
Not to mention, it greatly increases the odds that your business will survive long term – based on skill, best practices, and good management rather than luck.
The core components of a strategic plan
Whether you build your business’s strategic plan yourself or bring in outside help, it’s essential to know what a good strategic plan entails.
- Mission statement: Why do you do what you do? Needs to be clear and easy to understand, as well as inspirational to your team.
- Vision statement: Where do you want to be? This is the north star that guides your decisions as a leader.
- Core values: Who are you? Pick 3-5 attributes that can be used to describe your business – or who you want your business to be, so that your team knows what to work toward. For example: Innovative, Thoughtful, Productive, Service-Oriented, etc.
- Situational analysis: Where are you now? You need to understand where you are before you can decide where you’re going. Evaluate your internal strengths and weaknesses, as well as your external opportunities and threats.
- Strategic goals: Where are you going? Identify and clearly list your long-term, achievable goals. If you’ve never tried SMART goals, now’s the time to look into and apply them.
- Action plan: How are you going to get there? This is the roadmap that lists what initiatives need to be implemented to support your new strategy. For example, this includes new marketing tactics, client relationships and engagement, operational efficiency changes, employee growth, etc.
Bringing the plan to life with your team
Once you’ve got your great new plan, make sure you share it with your team! Trust your people to help you implement and grow — they will be the first line of defense in identifying friction points and where the plan may need adjustment.
And of course, don’t forget to track and measure your strategic plan; we’re only as good as what we measure.
Does a strategic plan guarantee success?
Building a strategic plan guarantees my success, right?
Nope!
Strategic planning is not a magic wand; your plan is only as good as the people who implement it. Plans can’t take the place of good management; your plan will support, structure, inform, and strengthen leadership, but it is not a substitute for it. A poorly executed plan will do more harm than good.
Strategic planning as the pathway forward
Strategic plans are the pathway to success. With proper planning, a good team, thorough implementation, and strong leadership, your business can reach and exceed any dreams you have.
