As the economy grows so too does competition. Combine this with the expanding influence of innovation and technology on the way we find and service clients and we have a business landscape that is both exciting and challenging.
When successful companies face changing environments, they often fail to respond effectively. They get stuck in methods and modes of thinking that have been successful in the past and expect the same result ongoing. In some cases the very formula that brought success in the past now brings failure.
Companies need to be constantly reviewing their strategies and asking themselves the question "are we still fresh and innovative in our approach to the new reality and its opportunities"? Modern strategic planning is about identifying this ‘new reality’ and the ways to access it.
When done properly strategic planning a great management tool. As with any management tool, it is used for one purpose only: to help an organisation do a better job.
The process is strategic because it helps an organisation to:-
- Focus its energy
- Ensure that members of the team are working toward the same goals
- Assess and adjust the direction in response to a changing environment.
The process is about planning because it involves intentionally setting goals (i.e., choosing a desired future) and developing an approach to achieving those goals.
The process is disciplined in that it calls for a certain order and pattern to keep it focused and productive. The process raises a sequence of questions that helps planners examine experience, test assumptions, gather and incorporate information about the present, and anticipate the environment in which the organisation will be working in the future.
Finally, the process is about fundamental decisions and actions because choices must be made in order to answer the sequence of questions mentioned above. The plan is ultimately no more, and no less, than a set of decisions about what to do, why to do it, and how to do it. It is, philosophically anyway, as simple as Now – Where - How
Because it is impossible to do everything that needs to be done in this world, strategic planning implies that some organisational decisions and actions are more important than others. The strategic plan reflects these tough decisions, ensuring focus and clarity are maintained.
This is why the strategic plan need not be a large document. It needs to be concise enough for the key strategic strands to be easily identified. For example, if we are trying to relate the path going forward over the next 3 years the following one page summary provides an overview.
For our people the dominant question is often ‘am I doing things right?’ For the strategic planner the question is; ‘Are we doing the right things?’
The diagram illustrates the categories of ‘right things’. Each part of the process needs to be understood in the context of it’s relevance to each other part. The whole process revolves around the competitive strength of the organisation which in turn influences the marketing strategy.
The operation strategy is geared to deliver on the competitive advantage which is itself supported by the organisationsfinancial resources and its people.
Although content varies from client to client the following list gives an insight into the key elements of a good strategic plan.
What is the NOW?
Key Strategic Issues – the good, the bad & the ugly
WHERE do we want to be?
Financial Outcomes
Products and Services range and contribution
Marketing strength,methodology and image
Production innovation and efficiency
People effectiveness
HOW will we get there?
Strategies
Actions
At the operational level the strategic plan can become a series of One Page work plans that implementers can control to and report against.
The strategic planning process can be complex, challenging, and even messy, but it in these dynamic times it is more likely to promote success than the common approach of ‘if it ain't broke, don't fix it.’
Partnercorp specialises in producing strategic plans that work, in fact, we even have a process for ensuring implementation occurs with minal disruption while ensuring maximum effect.
Click here to review our client list and then call us so we can discuss how we can assist you in getting your organisation, division or small business really humming this year.