New Year's is a good time for strategic planning or re-planning your business. But don't think that's the only time. If you feel the need to re-consider your strategic plan - by all means - go ahead.
Whatever time of the year it is, you have probably set a working direction for the rest of the year, including clear-cut objectives. Your first-iteration plan to reach them should be in place. This now (whatever time it is - if you are thinking about it) seems like an ideal time to rethink the whole thing, doesn't it? In our sped-up 21st century world, plans are subject to change just as soon as - or perhaps even before - they are written.
If you haven't already done so, now is an excellent time to review your company's year-end results and plan for the coming year. If you've already created your annual plan, you may want to look at it in a new light.
A typical approach to planning suggests multiplying last year's quantitative results by an acceptable growth factor. Industry standards vary, often from 5% to 25%. Add to that number scheduled enhancements to your product line plus solutions to key problems you've been meaning to address, and that's your plan.
Those of you who've been following my articles know that I advocate a different approach to this process: Step 1) Learn whatever you can from last year's results - something many of us forget to do. For example, make 1998 the year you act on the knowledge that it takes six months to train your field reps, not the six weeks you used to allocate. Step 2) Set targets which will excite you and your team and get you out of bed every morning; Step 3) Figure out how to reach the targets in Step 2.
A well rounded strategy which will provide a platform for continuous growth should impact these critical factors:
For each factor follow the three step analysis. Step 1. What can you learn from last year's experience in each area?
What did you do right - what worked - what should you do more of? What did you do wrong - what didn't work - what should be stopped immediately?
Also, ask what is missing from this area. In other words, what could you add - or eliminate - which will make a big difference in your organization's effectiveness. Random examples of what might be missing: an organizational knowledge manager, periodic competitive analysis, a report of market share, an employee training plan.
Step 2. What results are you committed to produce in each area?
Remember, these results should be bold and dynamic. They should inspire everyone responsible for making them happen to do whatever it takes to get the job done. These targets or measures work best when they are objective and quantifiable. They must be achievable, however difficult that might be. Some examples of bold results: a 50 percent increase in sales; top of the list in prospect mind-share; 100 percent customer repurchases; three new products shipped by June; customer problems resolved in half the current time, a career path in place for each employee, zero turnover.
Step 3. How are you going to achieve these goals?
Your implementation plan has a number of components:
Who is accountable for each factor? Which executive? Which managers? What department? Some factors map directly onto a functional department, like revenue to marketing/sales. Those are the easy ones. Less obvious are factors like intellectual capital or customer satisfaction - they don't fall under one clear domain. Nevertheless, one person has to pick up the ball. Along with their teams, whoever accepts accountability for specific the targets and goals will answer the remaining questions.
What strategies and tactics have a good chance to produce the results? Remember, if you've set bold objectives, you probably do not yet know how to reach them. That's what makes them bold in the first place. You are inventing the answers, making them up.
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