Only about 10 percent of business owners develop a strategic plan. In fact, most owners have a lot of plans and goals for the company, but tend to walk around with those in their head, rather than writing them down on paper.
Many leaders are concerned that writing down their goals will mean they’re trapped into a course of action that really needs to be more nimble to adjust to a dynamic market. Some worry others may judge their ideas or be critical or skeptical about the practicality of the plan.
Those who take the time to write out their ideas, share them with key managers and, finally, cascade the plan down through the organization are far more likely to achieve their goals. In addition, a short, simple written plan helps everyone in the company understand where the business is going, what the priorities are and how the company plans to achieve them.
In this way, more people can pull together to work toward the agreed vision.
Unfortunately, even those companies who take the time to write a plan rarely use it. The reality is most of these plans simply become “shelf documents,” gathering dust and creating guilt on the part of the developers. Or worse, the company has paid an expensive consultant to create a document that never sees the light of day.
A strategic plan should be a living document — with a solid foundation in the form of a clear vision for the future and short list of the core values that drive decision-making in the company. Then, leaders who wish to focus on results will identify a few broad goals. These are statements of desired direction — key areas in which you want to experience performance and change. They need not be measurable, but should lend themselves easily to objective setting. Goals rarely change and may succeed from one planning era to the next.
To support those goals and move to action, develop specific, measurable objectives — these are action statements that tell the reader what you want to achieve. They should meet the S.M.A.R.T. criteria:
Finally, break the objectives down into manageable steps or tasks and be clear about your priorities — what is urgent and where will you see the biggest return for your investment?
It’s important to keep the plan alive in the eyes of your managers and supervisors, as well as the rest of the company. Sharing the plan widely can be a little daunting and yet it’s important to let team members know what it is, how it drives behavior and what their role are in achieving the company’s goals.
You might consider holding regular meetings in which the plan is the key topic of discussion. Once an objective is met, set a new one. A step-by-step process could include:
Finally, monitor, measure and motivate. Update and review the plan at least quarterly. Encourage the use of the plan in all areas of business. This plan has impacts for all areas of the business. Make sure it’s seen as important, influential and positive.
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