"If you fail to plan, you plan to fail!"

When it comes to running any business, a successful business develops AND implements a strategic plan:

               Is your organization doing the right things?
            How well are they being done?
            Is world-class performance important, and if so, are you on the right track?


  What is Strategic Planning? 

Strategic planning -

                Is an ongoing process,
                Carries an intense customer focus, and
                Drives decisions and actions.

With an effective strategic planning process, employees at all levels of your company can articulate -
            >  the Company's mission,
            >  its vision for the future,
            >  its values, and
            >  its overall strategic direction.

The strategic planning process is closely coupled to the company's management operating system. This helps ensure that the company's goals have been communicated to all levels of the organization. Similarly, results compared to the plan are gathered and communicated through the organization. If the results fall short of (or exceed) expectations, cross-functional processes exist to apply corrective action by identifying and addressing the root cause.


 What are SMART goals?

An effective strategic plan focuses on the organization's key goals and business processes. For the plan to be effective, these goals must be SMART:
 

  Do you know the hidden benefit?

The most important, often misunderstood and overlooked benefit of a strategic plan is the planning process - the discussion and agreement that takes place between all the stakeholders in formulating the plan and the organization's goals. Not only does this help focus everyone's attention on the company's required direction, but it also helps align and coordinate everyone's efforts and use of their time with the company's required direction.


  Is your organization maximizing the value of its strategic planning process? 

Maybe you are not sure. How can you tell when it is time to rethink, regroup and develop a new strategic plan? Answers to the following  questions could help you assess your company's opportunities for improvement:


How old is your strategic plan?

If your plan is more than five years old, you should be considering the need for an updated or possibly a new plan. A strategic plan that was leading edge several years ago probably no longer meets your company's needs, especially in view of the evolution of national and world economics.

How often does your organization refer to it's strategic plan?

If the answer is rarely or never, the plan has probably outlived its usefulness. Alternatively, the value of the strategic plan or its correct implementation, may not be fully understood throughout the whole organization.


How many of the strategic plan's goals have been achieved?

If no goals have been accomplished, possibly the goals were unrealistic or your people were not committed to achieving them. A new plan is required.

If everyone in your company understands and is actively involved in meeting the goals, that's a sign that things are working as they should and you might not need a new plan at this time. However, if some of the goals have not been achieved as planned or on-time, the reasons need to be identified and perhaps the plan needs to be adjusted.

If all the goals have been accomplished and as planned, congratulations are in order. But, customer needs and expectation change and often, they change very quickly. Perhaps it is time to identify new goals. This also means that it's time to have another look at the strategic plan.


Who was involved in creating your strategic plan?

Did senior management create the plan in isolation, or did they consult with employees, suppliers, clients or other stakeholders? If it was a solo effort, it might be wise to consider input from a broader base.


Are your company's management operating system and strategic plan linked together?

If they are not, then chances are that your company is missing significant opportunities for performance improvement in the 20 to 30% range, caused by the lack of crucial information and processes that are necessary to take swift and  corrective actions.

What's the Next Step?

Before you begin creating your next strategic plan, be sure that all the stakeholders are committed to the process. Communicate effectively to assure that they understand the purpose, benefits and role that the strategic plan will play in the day-to-day operations of your organization. Your organization could be missing out on significant opportunities for performance improvements, if strategic planning is either:

        A. Nonexistent or is totally removed from the ongoing operation of the business,

        B. Done infrequently, but provides some general indication and direction as to how the business is run,

        C. Somewhat formal process, performed by line executives and managers, at least once per year, or

        D. You are not sure if your management operating system is optimized to

                    >  meet your company's needs, and
                    >  deliver the most value.

FarLook can show your people how to improve your strategic planning process.