Do You Have A Strategic Plan?
One Third Win
The numbers are slightly different depending on the study, but the number of businesses that launch then thrive is quite small. About 30% of all new companies actually see their way to black ink.
Why Is That?
I have worked on fifty-page Strategic Plans, it's a lot of work!
It requires people and meetings and the result is an extensive blueprint for the next fiscal year. For the most part, the Plan was followed and people were held accountable. Each tactic had dates and money and people attached to it so the Plan could be realistically and properly executed.
I would often test people’s knowledge of the Plan by asking them if they could recite our Three Strategic Objectives. Most did well on that point. But when it got to the tactics and time lines and who does what by when, their ability to recount the Plan began to decline.
But you don't need a fifty-page Plan to succeed. Trust me! Those things were behemoths. No wonder no one could remember what was in them.
Why do companies fall short of their goals?
Focus
This is often a catch-all that isn’t given the attention it deserves. If you’re in a well financed start-up, it can be intoxicating. Ideas are following, people are happy and it’s exciting. But once the balloons deflate and the actual real work begins and you experience that first difficult client, things may begin to wobble.
Market
It’s even more essential that you are aware of your market. That includes where you are geographically, the industry you are in, what your competitors are doing and the never ending changes in customer desires and demands.
A Plan is not something you put in a pretty binder to sit alongside previous years' Plans to simply collect dust.
Homework
No matter your industry or role, you need to be constantly educating yourself on opportunities and trends. We have the world’s largest encyclopedia at our fingertips but how many of us end up at the same websites every day?
Accountability
This has always been a hot button. It looks good on the wall or in your company propaganda or on your website. “We’re accountable!” Are you? In order for this to gain traction, everyone in your organization must be accountable to everyone in your organization. No exceptions.
Execution
Plans are useless without action. If you take the required time to set out a Plan, then actually carry it out.
I’m a guy, I hate reading instructions but I have often destroyed a purchase because I didn’t read the sheet of paper with the thing I needed to assemble. That is why the instructions are there. That is why you galvanize a Strategic Plan.
Then you do need to be nimble so you can react to opportunities that may not have been there when you developed your Plan. You won’t be able to do so if everything you do is by the seat of your pants.
Communication
This is the largest reason companies fail. We can discuss this at length another time but it is monumentally imperative that you keep clear collaborative communications open with everyone in your organization or the clock is ticking.
Fear
We are human beings. We mess up. We mean well. We have the best of intentions. But we miss steps and get frustrated and get filled with self-doubt which stops us from getting there. And we forget to ask for help!
Am I way off the mark?
What are your thoughts on this?
knealemann.at.gmail.com
image credit: postyourtest.com
Nope, as usual you are on the mark!
As someone who has been charged with assisting companies seek both ISO 9000, 14000 and 18000 certification, which require a ton of documentation, commitment and action, I have seen the euphoria of the start-up phase of a major project, and the slow decline of enthusiasm once the real work begins. And I've seen top management not really envelope themselves in the spirit, only gaze ahead at the prizes that await, post-certification.
There is an old slogan we used during ISO, not sure of it's origins: “Say what you do; Do what you say; Prove it”. Document your activities, perform your activities according to what you've documented, then prove it with auditing. It seems simple enough, but I've found the sheen wears off when people look to take shortcuts, deviating from what they just spent months documenting. The catch becomes better than the chase. Get to the end.
Companies spend boatloads of money searching for, and implementing the latest philosophies, paradigms and quality initiatives, without truly giving them the commitment and attention they deserve. And sometimes they have multiple competing initiatives being implemented at the same time. This leads to frustration and questions like, "Why didn't this work for us?". As you point out, focus and execution are two of the biggest stumbling blocks I've witnessed for companies to achieve their highest priorities.
Consultants such as us can only help the project along so far, it is up the companies to adopt/embrace/live the philosophies and principles of the projects long after we've gone...
Todd Miller said... September 24, 2009 5:54 PM
Got Plans? No? Well @knealemann has some good advice for you then. http://bit.ly/VyLse
35 minutes ago from TweetDeck
Sue said... September 24, 2009 7:06 PM
RT @knealemann New Post: Do You Have A Strategic Plan? http://bit.ly/UHFbW (Plan necessary. Can’t always be by the seat of your pants.)
Frank said... September 24, 2009 7:07 PM
New Post: Do You Have A Strategic Plan? http://bit.ly/UHFbW (via @knealemann)
Simon said... September 24, 2009 7:07 PM
RT @knealemann: Do you have a Plan? Are you executing it? Thoughts are always welcome. http://bit.ly/UHFbW
Patrick said... September 25, 2009 8:44 AM
RT @knealemann Do You Have A Strategic Plan? http://bit.ly/UHFbW
Steve said... September 25, 2009 8:44 AM
An excellent read for those in business! Highly recommended @knealemann: Do you have a Plan? Are you executing it? http://bit.ly/UHFbW
Elizabeth said... September 25, 2009 8:45 AM
My first time on your blog. Very nicely designed and great articles. Keep up the good work!
Ethan said... September 25, 2009 9:21 AM
RT @knealemann: Do you have a Plan? Are you executing it? Thoughts are always welcome. http://bit.ly/UHFbW
Charrise said... September 25, 2009 9:22 AM
@knealemann, your comments have really hit the mark. A key point to add is that this is a journey. Many start-ups (and established businesses for that matter) will not get it right the first time. I remember hearing a saying something like, “… the winner is the last one to get up…”. It is not how many times you get knocked down, just keep getting up, learn from your mistakes, and keep going. This applies to every facet of life, as well as to the topic of strategic planning.
In my business, we do think through strategic planning and have for many years, but we are always working on how to do it better. In the past, I believe we were lacking on the communication piece, so have been working on improving that. Once you have communicated the plan, goals and objectives, keep communicating the progress at regular intervals. I would love to discus this for hours, but Kneale has written a great article on it …. and I have to go plan!
Cory Young - Rhodes & Williams Insurance Brokers said... September 25, 2009 9:36 AM
This blog post is exactly why I find the topics covered in 'Made to Stick' so important. My experience with strategy has been: it can be the world's best, but if you can't get it across to your WHOLE organization, your outcome is likely to be inconsistency and failure (on the strategy anyway).
Once the strategy is established, the work has only begun. The key step is getting it across to all the components of the organization in language that they can understand (and they all speak different languages), and then act on it. This is where the 'Made to Stick' principles can really help.
The bigger the company, the more virtual- (and literal) languages there are.
Great post!
Adrian said... September 25, 2009 2:57 PM
Do I have a plan?
I always have a marketing plan. Do I always stick to that plan? No!
Running my own magazine during these twisted economic times, I personally find there is always a need for me to be thinking quick on my feet. I'm always open to doing business in different ways to create more business and interest for my clients.
I think that's what truly makes marketing fun, when you have the ability to be creative and turn your ideas into cash!
Carolyn Gardner
Publisher & Owner
Our Town Magazines -Miami
Carolyn Gardner said... September 25, 2009 9:29 PM
Todd,
Thanks for your comments and continuation of the topic. km
Kneale Mann said... September 26, 2009 10:10 PM
Sue, Patrick, Frank, Simon and Steve - thanks for the RTs
Kneale Mann said... September 26, 2009 10:11 PM
Elizabeth, I am so glad you found it helpful. Cheers :-) km
Kneale Mann said... September 26, 2009 10:11 PM
Ethan: Wow, thanks very much for the kind comments. km
Kneale Mann said... September 26, 2009 10:12 PM
Hey Cory, keep at it!
Kneale Mann said... September 26, 2009 10:12 PM
Adrian, if you're a stand-alone person running your own at-home business or a Fortune 500 with 20,000 employees, you are in trouble without a plan and constant communication. (Attention: stand-alone biz people - yes, you are allowed to talk to yourself. LOL)
Kneale Mann said... September 26, 2009 10:14 PM
Carolyn, you have nailed the essence of a great plan - flexibility but don't lose focus.
You run magazines so I'm sure your "plan" takes a beating every day.
Stay focused! Thanks for your comments.
km
Kneale Mann said... September 26, 2009 10:37 PM
In order to make the commitment to focus, be market aware, continually learning, be accountable, execute plans, communicate effectively and deal with our fears, we need to give ourselves the time and create new routines. It's no different then exercise and healthy living. Perfection is difficult but we keep trying new ways to integrate changes into our lives & businesses that will make an overall impact.
Thanks for laying out the steps so clearly.
Patti Church said... September 28, 2009 8:58 AM
Kneale, spot on. I do think planning is an integral part of any organization's success. Yet have you noticed that often the process of defining a future and the discipline of working it are more critical than the "plan" itself? Still I think you've hit the nail on the head on why so many of those without plans are destined to fall short of their goals.
You triggered another thought: we've discovered at Aveus that even with a solid strategic direction, many organizations are just not ready for the change they declare. To that end, we developed an interactive change assessment tool that people can download (free!) and score their organization to see how ready it is to create sustainable change. If you like can download the change assessment PDF here:
http://bit.ly/KBi3u
Thanks again - a thought provoking post.
Linda Ireland said... September 28, 2009 10:28 PM
I agree. The saying a good offence is a good deference. My son is autisch and good planning assures that his life for the most part passes by with out not too many difficulties.
When planning, I have to keep in mind how I plan it. That all bases are covered and that I think it thru so in insure that he will understand what going to happen and what is asked of him. The simple task of getting him off to school is continually keeping one eye on the clock and one eye on him, making sure he has done the task with in the timeframe.
Also new tasks have to be thought out, written down, and talked thru with him.
The management of his life and getting him ready to be able understand what is expected of him as he becomes an adult can only be achieved with good planning. I think it’s a lot like a company who produces products.
gr Gouwerijn
Gouwerijn said... October 2, 2009 2:25 PM
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