For the many companies, it’s that time of year when the annual strategic planning process is getting ramped up, and leadership teams are preparing their roadmap for the upcoming year. In my line of work, I’ve heard some pretty interesting responses when asking a CEO how his or her organization manages strategic planning.  I’ve gotten some really funny answers, except I’m usually the only one laughing.

Businesses that have a long track record of success (revenue, profit, growth) work from a plan; the others don’t.  They tend to work from a “seat of pants” approach.  This may work for a while, but as the marketplace tightens and economic conditions worsen, those following a plan are the ones who survive and thrive. By the way, it’s OK to skip the planning process if your competitors are doing the same, but I wouldn’t count on that.

When it comes to the topic of strategic planning, many business leaders are heard uttering these myths and they are holding their organizations back.  Now, it’s time to crush these myths and get your company on track.

Myth No. 1: “We’re too small of an organization to need strategic planning.” Even one-person organizations benefit from good planning. Without a vision, a plan and measuring results, how will you know how you’re doing? If you can’t measure your progress, you can’t manage it either.

Myth No. 2: “Strategic planning should only be done once a year.” Strategic planning is not a singular event — it’s a process.

While most organizations conduct strategic planning annually, it needs to be revisited on a quarterly basis in order to measure progress, align resources and implement necessary adjustments.

Myth No. 3: “We don’t need a strategic plan! Plans are too restrictive; we are entrepreneurial!” Every organization needs some type of plan to guide its activities and resources, especially during times of economic uncertainty. Without it, it’s too easy to “drift off course,” get distracted, and eventually find yourselves in firefighting mode. However, a strategic plan does need to be flexible to meet the demands of a changing world.

Myth No. 4: “We can do it ourselves — without any help.” It’s extremely difficult to participate in and facilitate the same strategic process meeting.  A better way is to engage a trained business coach or facilitator to run the process, but not someone who tells you what your strategy should be. You need to uncover that for yourself through good facilitation.

Myth No. 5: “Strategic planning interferes with our real jobs; we don’t have time.” For the leadership team, strategic planning is arguably the most important part of your job, as it determines the direction and focus of the rest of the organization.  It takes real work to make a plan and more work to execute it. The alternative of leaving the direction of your business up to chance has a notoriously low long-term success rate.

Myth No. 6: “Strategic planning is done when the retreat is over.” The initial plan may be complete, but strategic planning is a process, not an event.  If it’s not an ongoing, repeatable, integrated process, it’s a waste of time. Make sure you use what you develop. Don’t let it sit on the shelf.

Once your plan is finalized, share it with all employees. Research shows that only 5 percent of employees understand their organization’s strategy. Even the best strategic plan will never produce the desired results if the people who have to execute it don’t know what it is. Be sure all employees understand the direction of your company and how their everyday activities lead toward accomplishing company goals — not just the leadership team.

An effective strategic plan is the best tool for achieving the vision you have for your business. A well-thought, structured strategic plan executed by your employees is your best protection against the threat of changing market conditions and chaotic economic uncertainty. It’s what separates good companies from great companies, and great companies from excellent organizations.  The bottom line is to build a solid plan and then work it through your entire organization.

Eric Kurjan is the president of Six Disciplines Northwest Ohio. Six Disciplines brings “big company” process improvement to organizations looking to break beyond the status quo. For more information, visit www.Six Disciplines.com/Toledo or call (419) 581-2823.

This entry was posted on Thursday, November 13th, 2008 at 10:59 pm and is filed under Toledo Business Link.
You can follow any responses to this entry through the RSS 2.0 feed.
You can skip to the end and leave a response. Pinging is currently not allowed.