5 Steps to an effective strategic plan

Never try to complete a puzzle without a picture of the finished product? So have a good idea of ​​how difficult it is to create a strategic plan, when you do not know where the business is headed.

For many business owners, strategic planning is an intimidating process. At first glance, it seems overwhelming - too long, too introspective, and quite frankly too difficult. You are not alone ... only 14% of all businesses operate with an existing plan in place.

So, why bother with strategic planning if most companies seem to do fine without one? Sure, you can run a business without having a plan in place, but an image as strong, efficient and profitable businesses that could be if you have a road map to guide you.

Where are we going and how we get there? Every company has what we call "strategic moments" that come together in every business cycle: the turning points that require choices to make. These events can be calendar-driven, as the beginning of a new year, or growth-driven, such as having to look for capital outside for the first time.

Other strategic moments:

- Are you profitable, but margins are under pressure

- The competitors seem to grow at a faster pace

- The sales cycle lengthens

- Your brand differentiation are becoming blurred

- There are a lot of opportunities out there, but you are not sure which one (s) to pursue

Clearly, it's time to take a step back and get some clarity on where the business is headed, and the best route to get there. Breaking down the planning process into five manageable steps, you'll come away with a more focused vision for your business.

Although what follows is simply a brief summary of the steps required in the process, just to give you a taste of the power - and need - for strategic planning.

Phase I: Reflection

Call this the "Who are we?" stage, where you take an honest look at your current reality. Ask yourself and your staff questions like these: What are we doing well? What can we do better? What should we do better?

Take a fresh look at your mission and vision statements, as well as your core values. Are you still going in the same direction? It is the vision of the company in alignment with the personal views of the leadership team?

Speaking of leaders, the reflection phase is where you evaluate the effectiveness of the leadership team. With an understanding of the strengths of each team member - including you - organizations can determine what skills can be better exploited, that development must take place, and what needs to be filled in the gaps, in order to move the company forward.

According to Jon Brandt, CEO of the National Association Healthcareer, "Sometimes we run so fast, we do not take time to slow down, look in the mirror and see if we have the right team in place to the next level of growth. As the company grows, we need to reassess the composition of our team, we lack the management capabilities that support the effectiveness of our growth "?

After assessing the strengths of your organization's leadership and weaknesses, it's time to do the same for the same business. From the macro point of view, assessing the effectiveness of key business drivers such as marketing, sales, finance, management and operations. Ask your manager rate your organization's success in these areas, then compare their answers.

For each macro area, then you want "off the layers" and look more closely at individual critical components. For example, marketing can be further divided into elements such as market share / penetration, price, promotion and market research. Note areas of less-than-optimal performance that need special attention.

Finally, it is time to summarize all that you have discovered during the period of reflection. Hopefully you have thorough understanding of who and where you are, and have a sense of where you want to be ... and why.

Phase II: Validation

How do you know if the results are valid? Just ask!

During the validation phase of the strategic planning process, key stakeholders, both internal and external - are interrogated to determine if their opinions or litigation support management teams of reflexes.

For validation, management and staff ask questions like these:

- What do you think the company does well? What could we do better?

- If you had full control of all decisions, that a change would immediately?

- What is your understanding of where the company is headed?

Be sure to include staff at all levels, especially informal leaders in your organization - these individuals, regardless of title, have the respect and attention of their colleagues at all levels. External validation comes from customers, suppliers, consultants and strategic partners, responding to questions like these:

- In your own words, can you explain what our company does?

- What words would you use to describe our brand?

- What would you like to see more from your relationship with us? Less?

Validating your thoughts, you are forced to operate in the real world - knowing your assumptions are accurate before establishing a plan on them.

Phase III: Collaboration

At this stage of the planning process, your goal is to build a shared vision with your team, then define a practical mix of short and long term goals based on that vision.

Gather your team leadership, key stakeholders and informal leaders hash out a plan to go. Look at the gaps that exist:

- Among the desired objectives and the current performance.

- Among the current reality and the shared vision that you have outlined.

How wide are the gaps? Do you have the resources to fill them? Think of any outside help might be needed - a consultant, freelancer, consultant or hire new experience which is necessary for your organization to achieve the objectives.

Finally, use the collaboration phase to define the drivers of success that will help the company achieve its goals as effectively. Using the principles of shared vision as a framework, ask the team:

- What should we stop doing?

- What should we start doing?

- Where we stay the course?

Here's an example: your company dealing with pricing issues. The sellers make deals to close new business, which was OK at first but has become a headache amount - no matter the cut at both margins and your credibility.

The driver of success might look like this: We must stop giving sellers price flexibility, initiate the creation of more formal procedures, pricing, and agree to use these new procedures in a consistent manner, although it will be difficult at first.

Phase IV: Action

Here is where the strategic planning process really starts to show its value. During the action phase, you nail the details of the plan, and allocate the necessary resources for implementation.

With your team, start mapping out:

- The strategies needed to achieve the objectives outlined, is in Phase III.

- The tactical or operational steps necessary to translate business strategies into concrete.

- The financing they need.

- An order of priority so that resources (financial, human capital and energy) can be properly allocated.

Your strategic plan should be concise, clear, and above all, usable. Do not get so wrapped up in details that you forget to make it usable! Be sure to include:

- Re-statement of your mission, values ​​and vision

- Summary and Explanation of the main objectives (what and why)

- The description of the main strategies

- Outlines of tactics, with a timetable for implementation

- Preliminary financial projections, which can be adjusted along the way

Says Kevin Burke, founder of Lucid Marketing, "Our strategic plan ends up being a road map for the coming year. While the tactics may change as opportunities present themselves, the general strategy remains consistent."

Remember the basic principles of SMART In outlining the plan of action: all tactics must be specific, measurable, action oriented, results focused, and time-sensitive for your best shot at success.

Break each goal into small action steps, assign a realistic timeline, identify any obstacles or roadblocks, then determine and allocate the resources necessary to achieve it.

Phase V: Implementation

Wow! You have set some ambitious goals for the organization. Now is the time to drill down for details - advance the who and how to get done.

- Clarify roles and responsibilities - Review the job descriptions, task analysis, and communication channels so that everyone is on the same page.

- Create systems of accountability - expectations are clear and checkpoints in place?

- Define the performance metrics - People know exactly what is being measured, and that success looks like? What are the consequences if the goals are not achieved?

- Establish rewards and incentives - Define the positive aspects when goals are achieved.

Next, create a system for managing the implementation process and monitoring progress. Identify the reports and metrics that will be needed, as it often will be reviewed and by whom.

Of course, you will need a way to communicate your strategic plan for your staff. Determine the channels - Individual department meetings, sending weekly e-mail, blog, or company-wide "town councils" are a few options - and as often as necessary to keep everyone informed.

Building a productive dialogue can be both formal and informal, as you pull out your strategic plan. Keep in mind you'll also need a way to evaluate the accuracy of the message as filters - people's interpretations are correct?

Finally, know that your plan is always a work in progress. Each day brings new information, new opportunities and new people to the team. Keep your life plan with regular refinement, and make the planning of a standard tool for business growth.