Time to Look at Strategic Plans Again

To be honest, for several years I put very little emphasis on (so-called) strategic planning with my clients, because it felt like a guessing game, and there was rarely a direct impact on results. It took significant amounts of resources to create a plan that would ultimately sit in a binder or digital folder, never to be looked at again.

I figured, “don’t waste your time.”

However, a number of years ago I was introduced to a framework that changed my opinion about what strategic planning is, and how it can work effectively, and it changed how I approach planning with the high-growth companies that I coach.

Here are some of the critical differences in the Scaling Up performance system compared to other methods of strategic planning:

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Strategic planning addresses the 4 key decisions

“If you want to get everyone in the company on the same page, then you need to literally get everything on one page.” – Verne Harnish

Our trademarked One-Page Strategic Plan simplifies: who is doing what, by when, and how will we measure it?

That process requires discussion and healthy debate amongst the leadership team, as we address the Four Decisions businesses must get right, if they want to scale up without added drama and complexity: Strategy, People, Cash, and Execution.

It is done in two parts: Strategic Thinking and Execution Planning

When most businesses attempt to plan, what they think is strategy is actually short-term objectives and tactics. When you allow adequate time for strategic thinking before you begin execution planning, the result is a more focused and purposeful plan that engages people at all levels of the organization.

Strategic thinking is long-term – looking a minimum of 3 years out, and often as far as 10-25 years out. Whereas execution planning takes place in 90-day sprints, toward one-year initiatives. In other words, you are constantly revisiting the plan, taking a bite-sized chunk out of the big picture goals.

Here’s the difference in strategic thinking vs. execution planning

Strategic Thinking answers questions, such as…

• What is our core purpose? Why do we exist, and what difference are we making? (Avoid fluffy or generic mission statements.)
• Where are we going? Where’s our north star? And what’s the next peak we need to climb on that journey?
• What is our BHAG? The Big Hairy Audacious Goal is the intersection of your core purpose, what the company does best, and what drives profit.
• Who is our Core Customer? That is customers that will come back or refer repeatedly, value your product or service, and will buy at an optimal profit.
• What are our Brand Promises? Think of this as a unique selling proposition, but one that you can measure through Brand Promise KPIs.
• What is our profit/x? In other words, what are the biggest drivers of profit, and how can we achieve margins that are 2-3x higher than our industry average?

Execution Planning is about the “how.” Once the big picture has been established, we will work with you to determine:

• What are the top 5 key initiatives for the next 12 months that will put us on track for the big picture goals?
• Next, break that down into quarterly “rocks.” Rocks make your goals concrete by taking a chunk of the annual initiatives and assigning it a measurable milestone.
• When done as a leadership team, the next step is for each leader to make an individual plan for themselves or their department, that is connected to the company plan. This determines who is doing what, and by when.

The benefits of a strategic plan

There is nothing more powerful to fuel your organization’s energy, talent, and resources than a well-developed strategic plan that’s simple enough for everyone to understand and remember.

However, the only way to get your ROI on a strategic planning retreat is to treat planning like a process rather than an event or document.

The key to keeping it alive is to approach every quarter like a 13-week race, where each week is a sprint. You can’t get distracted for 1 or 2 weeks and expect to win the race.

Effective meeting rhythms and implementation of the Rockefeller Habits help your team to keep pace and hold everyone accountable for execution.