From Strategy to Results
From Strategy to Results
A good approach to strategic planning generally comprises of three phases. If we skip any of these stages or execute them poorly, it is unlikely that we will get results from our strategic plan.
What is the cost of an incomplete strategic planning approach?
Erosion of our position in the market which can lead us to feel like we are losing ground
Desired financial and operational results are not being achieved
A perception in the business that strategic planning is a waste of time which causes no end of frustration
A direct hit on the credibility of the leadership team
What we need is a sound strategic planning process and it should include the following three phases. If we do a poor or incomplete job on these phases, then the strategic planning process is incomplete, and we do not get the results we want.
1. Answer the “big” strategic planning questions
What we want to consider at this phase are things like: Who are our customers and how can we better serve them? Who are our competitors and how can we be better than them? What do we do better than anyone else and how can we continue to build on that edge? How can we better prepare ourselves to defend against the threats in the market and seize the opportunities that make sense to us? What are the potential scenarios we could face in the future and how do we make sure we are prepared for these?
Unfortunately, what can happen in some organisations is these issues get debated with academic discussions and the use of a lot of jargon. That can end out being a philosophical discussion without clarity, focus and a pragmatic plan to move forward.
At the same time, some organisations come up with brilliant answers to the questions above, but then cannot quite take them to the point of clear initiatives that get done.
The big strategic planning questions above are worthless if they do not result in a few clear, compelling strategic initiatives that will strengthen the organisation and move it forward.
2. Have a few clear priorities and identify an overall strategic theme
In the strategic planning process, the most important outcome in the first phase is to identify the most important priorities for the organisation. This often starts with a long list of potential priorities that get discussed and the relative value of each priority is considered. The organisation hones these initiatives and will decide to move forward with just a few key priorities. These discussions are incredibly valuable as they can lead to greater clarity on the big strategic planning questions, especially around what the organisation should do best.
Once a list of no more than three to five priorities is agreed upon, then a strategic theme should be decided upon. This is a short statement that coveys the overall strategic push for the organisation and serves as the umbrella statement which assists with communication and focus. Examples could be “Become a magnet for Talent” or “Expand into XYZ”.
A risk during this phase can be settling on a long list of priorities. Organisations do this because it often has the benefit of no-one feeling excluded or insulted. However, it makes it highly unlikely that everything will get done and can often fragment focus.
3. Implementation!
There are generally a couple of key complaints when it comes to strategy and one of them is that it never seems to get executed. There are a few reasons as to why this might be happening:
Not committing the essential resources to make the strategy happen. This could include capital, training, technology, and people.
Failing to take things off the plate of busy employees and instead just continuing to stack more work on them.
Not being prepared to stop old initiatives that compete with the new.
Not setting clear roles, responsibilities, accountabilities, and, if you have them, reward systems that are aligned with what you are trying to achieve.
Giving up too easily after a few setbacks or initial resistance.
A sound strategy will spend as much time on implementation planning as it does on the more glamorous work of answering the key strategic questions and setting priorities.
So, which of the above areas are weakest in your organisation? Some organisations are strong at asking big picture questions but have a lack of follow-through. Some set too many priorities and cannot say ‘no’ to good ideas, despite limited resources. Others are strong at executing but lack the vision to develop compelling strategic initiatives.
If you are tired of your old strategy missing the mark and want to move forward with a proven three-part strategic planning process that is simple for you to implement and gets results, I would love to chat.
Lead with Impact,