Move strategic planning to front burner

Have you ever wondered why some companies grow faster than others? Having worked with over 300 companies, I can say without doubt that the more successful companies do a better job of planning and executing.

In working with several clients last month, I’ve been surprised that most of them had not yet established their objectives and metrics for 2014. And many had not conducted or updated their strategic plan…have you?

While most leaders agree that strategic planning is fundamental to long-term success, this mission critical function often get’s pushed to the “back burner” by urgent day-to-day operations. Ironically, it’s the lack of planning that sets companies in a crisis mode.

My favorite Yogi Berra saying is, “If you don’t know where you are going, you’ll end up someplace else.”

It’s not too late to develop your 2014 plan.

So, why is planning — and being proactive versus reactive — so important? Erica Olsen, author of Strategic Planning for Dummies, writes, “A strategic plan is a management tool that serves the purpose of focusing the energy, resources, and time of everyone in the organization in the same direction.”

My experience with effective strategic planning is that it also improves productivity and profit. I can’t think of a better reason why planning should be a “front burner” function.

The process of strategic planning is not complex. My ABC’s for planning are: point A is where you are today; point B is where you want to be tomorrow; step C involves paving a path between points A and B. Here is how to do it.

First, establish a vision of where you want to be tomorrow.

Based on the time horizon of your plan (one, two or three years), describe what success looks like by envisioning your preferred future. Brainstorm big ideas, prioritize and develop a concise statement.

Second, conduct a situation analysis of where you are today; most planners refer to this as a SWOT analysis (Strengths, Weaknesses, Opportunities and Threats).

Your goal in this exercise is to take an objective “head-out-of-the-sand” view of your current business situation. Take stock of your assets and liabilities.

The process is to develop a list for each of the four categories. The purpose is to capitalize on the strengths and opportunities, and shore up the weaknesses and threats that have the greatest impact on your business.

The third and final step C has two parts. Begin by landing on a few objectives.

An objective is different than a vision. They have shorter term milestones and metrics and define “what” you are going to do to achieve your longer range vision.

The second part of step C is to develop a short set of strategies in support of each objective, which define “how” you’ll go about achieving your objectives.

To recap, objectives define the “what” you’ll do to achieve your vision; strategies define the “how” you’ll go about achieving your objectives. It is a linear approach I can vouch for. Another way of looking at strategic development is that strategies are focused on bridging the gap between where you are and where you want to be.

A strategic plan is only as effective as how it is executed and monitored. Once you have completed your strategic plan, you’ll then develop an action plan, designed to communicate who does what by when.

And of course, your action plan will be associated to a budget. Vision + Objectives + Strategies + Action = Success.Follow the ABCs of strategic planning, support it with an action plan, and consistently monitor your progress. Put strategic planning on the “front burner” and you’ll be counting your company among those that grow faster.

Andrew Ballard is the president of Marketing Solutions, a local agency specializing in growth strategies. For more information, call 425-337-1100 or go to www.mktg-solutions.com