Business Condition And Solution

I. What is a Strategic Plan?

Business Owners or Managers are often so preoccupied with day to day immediate issues in their business they lose sight of their ultimate objectives. Taking a step back and reviewing their business is essential. There is no guarantee of success, but without it a business is much more likely to fail. A strategic plan is NOT a Business Plan. It is likely to be a very short or short document whereas a Business Plan is very detailed and much more substantial. A sound plan will:

• Serve as a framework for making decisions or for securing future support or approval as required

• Provide a basis for more detailed planning

• Explain the business to others in order to inform, involve and motivate

• Assist in performance monitoring or benchmarking as required

• Stimulate change, and become a foundation for the next plan

II. Why make a Strategic Plan?

Making a Strategic Plan is an exciting exercise, and gets the adrenaline going! It should be visionary, conceptual and directional, and because it must be realistic and attainable too, it will provide owners and/or managers to think strategically and act operationally. Being able to think strategically means that, when you make decisions and choices, you settle for the best strategic option. Operational issues are all taken care of, but without having to think too hard about it, you ensure that your decisions and choices are supportive of your long term strategic objectives.

Setting goals and focusing on them causes these goals to become subconscious drivers that guide your actions. Doing this in terms of a structured strategic planning system, means that you will tend to steer your business in the right direction all the time, and you will do this without consciously thinking about it.

Starting with developing a Vision and working from there means that the Vision becomes firmly entrenched in how you think about your business, and becomes a subconscious part of your thinking process.

The effect can be really powerful and rewarding. By putting the necessary effort into creating a comprehensive Vision and building on it, you become a strategic thinker. Taking the right strategic action becomes easy.

III. What is involved?

A critical review of past performance by Owners and/or Managers of a business, and the preparation of even a short Strategic Plan beyond the normal annual budgetary horizon requires the type of thinking described above. Some essential points which should be observed during the review and planning process include the following:

• Consider the medium term of 3-5 years

• It must be undertaken by Owners/Directors

• It must focus on matters of strategic importance

• It must take place outside normal day to day work

• It must be realistic, detached and critical

• It must be written down

• It must be reviewed periodically

IV. What does it contain?

In developing a Strategic Plan, it is necessary to clearly identify the current status of the existing business, its objectives and strategies. Correctly defined, these can be used as the basis for a critical examination to probe existing or perceived Strengths, Weaknesses, Opportunities and Threats. Also forming part of a Strategic Plan are the following requirements:

• Vision

• Mission

• Strategic themes

• Strategic Objectives

• Measures or Key Performance Indicators

• Targets or Goals

• Initiatives or Action Plans

V. Summary

The preparation of a plan is a multiply step process, but is not difficult to carry out, and can be done reasonably quickly. For business Owners who want to drive their businesses to the next level, a plan for the future is essential.

Strategic planning and strategic leadership styles vary just as the employees and owners of companies involved in the planning process differ. Visit local bookstores or check on line to see hundreds of books claiming to have the secrets to a successful business and easy strategic planning. Technology and the Internet has forced companies to make changes. Has the ability to get along with and manage others changed? Many businesses today are international. Constant news reports keep everyone updated on issues affecting the business world. The skills needed to effectively manage others have not changed that much. Rather employees today are not as willing to put up with poor leadership or bullies in the manager’s office, anymore. Employees have more choices and they expect leaders to be authentic.
Strategic leadership is defined as determining where an organization is going and how to get there. Years ago this was called long-range planning. Decisions then were made by upper management behind closed doors. Today strategic planning is likely to involve individuals from all levels of management and staff. Companies are learning the best way to achieve excellent plans and full company support is to involve individuals from all levels of the business.

Strategic leadership usually involves planning. Companies do not achieve their goals accidentally or by luck but rather by setting goals. Companies use different methods for strategic planning. They are based on the type of business, the mission statement or the marketing strategy. Basically the steps are the same with each model, some models are more complex and detailed. Small business owners and companies alike should adapt strategic planning to fit their situation. It’s helpful to review how other leaders determine business strategies. It’s critical to know leadership of a company is not one size fits all.
Thinking about where a company is going leads to discussions on what they do their product or service. Without this knowledge strategic planning will not work. Sometimes companies write their mission statements during this stage of planning. Mission statements range from one simple sentence to numerous detailed paragraphs. Regardless of length the intent is to state the core purpose of the corporation what’s at the heart of the business. Companies then elaborate on their mission statements by adding vision and value statements.
Value statements usually deal with customer type, target markets, business activities or things they will not do. Moral values and public sentiment sometimes play a role. Companies that misjudge this often lose customers and market position. Vision and value statements, just like mission statements, are unique to the business. Truett Cathy, the owner of Chick-fil-A, is a good example. They will never open their restaurants on Sunday. This planning stage is sometimes referred to as strategic analysis.
Howard Behar, author of “It’s not about the Coffee/Leadership Principles from a Life at Starbucks” defines his leadership philosophy as people are more important than the coffee. He believes when companies take care of their people employees and customers the business is profitable. Sometimes companies struggle to define their product. In the above situation many individuals define coffee as the product. Yet their strategic leaders define it as people. It helps to go beyond the physical product to see what need the product fills. Companies can’t engage in strategic planning until there is clarity and agreement on what needs the company fulfills.
When determining the purpose of a company it is critical to analyze the environment they operate in. What’s the competition? What are they doing to generate sales? What future trends might affect the business? If they market to a certain segment do they need to change or update their services? Are they using the most up to date technology available? How does the Internet apply to their business? Should they shift from a local to an international focus? Questions such as these help strategic leaders decide what major issues the company faces as well as potential opportunities available.
Once a company completes strategic analysis it’s time to add the details. What actions are needed to fulfill their mission statement while balancing their values and vision? At this point the process becomes very detailed and specific. Usually there are multiple goals or objectives. It’s helpful to divide these by product, task, location, customer, or some way unique to the business. Each of the divisions has a different manager with different tasks/goals specific to that aspect of the business. It’s not enough to say the company wants to increase business. It’s better to be very specific. How does the company want to increase their business? How do they plan to do this? Add dates, amounts and numbers.

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Strategic planning only helps organizations when they are kept active and implemented. The strategic plan defines the business direction. That direction is based on the future, the vision of the company. Before an effective strategic plan can be developed a clear and compelling vision is needed. Visions are optimistic, the ideal picture of the future. The strategic plan that results from the leadership team’s strategic planning is the map to that vision and then it is only effective if it is implemented.

Strategic plans can sound intimidating and overwhelming to many small business owners. The most effective strategic plans are those that are simple, completed with the leadership team and key people in the company. Complex documents that consume excessive amounts of time to create don’t guarantee success. In fact, the large and cumbersome strategic plan can be so overwhelming that it just doesn’t work. Strategic planning sessions that go on and on for months also fail because so much time is consumed in the planning and the implementation, which is the key, is pushed aside. The goal to have the perfect strategic plan doesn’t produce results. Instead, the team that engages in strategic planning and produces a good working document is more likely to succeed.

To create your strategic plan:

Start with vision. Write down what you envision for the future. What does the future of your business look like? What do you want for the future? Vision stories are inspiring, it’s your dream. Once you have created your vision you can begin building strategies.

The vision is the destination, where you are going. The strategies are the map that gets you to the vision. Company values are the guide or the “compass” in our map metaphor for making decisions along the way. Values keep you oriented and in alignment. When values are out of alignment the company is off track; not moving in the direction of the vision.

Strategic goals can be limited to the top 6-10. By having fewer goals the plan is able to stay alive and in front of you and the team. By alive, it means that the plan is always where you can see it, use it and keep working on it. It means that the team is focused on the strategic goals at all times, talking about them, brainstorming on them and reporting to each other their successes and challenges.

To set strategies for your business first look at the vision, the different aspects of the vision. Brainstorm all of the goals, all of the strategies for each aspect of the vision. With brainstorming it is important to get all of the ideas out and write them down without judging them or editing them. Often the best idea comes from an idea that at first look seemed too wild or crazy. Ideas jump off of other ideas.

Once you have brainstormed all of the possible goals, prioritize them. Often strategic goals can be grouped with similar strategies. This can help in the prioritization process. The goal is to narrow the list down to the top 6-10 strategies. What are the goals or strategies that will give your business the future you envision, that will create a breakthrough that will produce the results that you want? Those are the goals that you should be selecting as top priorities.

Creating a powerful strategic plan is just one of the first steps. Many organizations have strategic plans that are well thought out and crafted. Where they fall short is in the implementation of that plan. Implementation is the key. If you fail to implement, the results will not be what you set out to achieve.

Implementation is the result of focused and continuous action. Strategic plans don’t just happen on their own: they require your attention. By keeping the plan in front of you and the team responsible for the plan, focus is maintained. Regular meetings about the plan also keep the plan moving in the right direction. Check-in meetings hold people accountable. When teams don’t meet and don’t keep their eye on the plan, the day to day interferes and the status quo remains. In order to make changes in the results that you achieve there has to be intention and commitment on the part of the team. The check-in meeting gives the team the opportunity to review what is happening, what is interfering with the results they want and need and make the changes necessary to change the outcomes. Through the intention of the leadership, the plan and the team, the culture of the workplace can shift from one of non-performance to one of performance focused.

Performance focused companies are companies that are thriving. The energy of high performing teams shifts the energy of the whole organization. It becomes more positive and contagious. People become excited about the vision, the plan and their implementation of the plan. Results create energy and excitement that keeps the plan moving, it propels the plan and the ultimate results of the company.

Organizations that produce results have a clear vision of the future; have a plan that is simple and strategic; and they work on the plan all the time. Their actions are designed to move that plan forward. They don’t let themselves or others get in the way. Through effective strategic planning and by implementing the strategic plan organizations achieve results.