Strategic Planning – Key Success Factors and How to Avoid Ten Common Mistakes

Organizations employ strategic planning as a way to move toward their desired future status (End Game). It is the process of developing and implementing plans to reach goals and objectives. Strategic planning, more than anything else, is what gives direction to an organization.
Obtaining buy-in from all relevant parties is essential for successful strategic plan implementation

Key employees from all areas of the business should be included.

Communicating the strategic plan to all employees is an important critical step.

Challenging various departments to develop their own supporting tactical plans with specific objectives that focus on supporting the overall strategic plan of the company is the final piece.

Accountability for execution is the glue that holds the plan together.

In many cases, a well thought out strategic plan is developed that has the potential to substantially improve a company’s performance, but little thought is given to implementing, execution and accountability for the success of the plan.

There are a number of ways to insure that company behavior really changes as a result of the strategic planning process:

1. Specific real-world objectives must be set. These could be as simple as implementing a new pricing model, or as far-reaching as starting up a new Greenfield operation outside of your current geographical market area.

2. The objectives should be specific so that there is no ambiguity about what is required. Ideally the objective should not be to “consider becoming “Employer of Choice” (EOC), but should be to become EOC by recognizing specific initiatives required to succeed by a specific date. Exceptions will of course exist if there is information that must still be developed in order to finalize a specific objective.

3. Expected timing and personnel accountability should be created throughout the action planning for each objective. Ideally there should be one individual who is accountable to company management for reaching each core initiative.

Ten Common Mistakes Made in Strategic Planning:

1. A Dart Board approach that generates numerous initiatives but no means for implementation

2. Failure to involve employees form all levels of the organization

3. Developing vision, mission and value statements but no real actionable foresight as to what the business needs to look like 5 to 7 years into the future

4. A weekend retreat where everybody drinks the same koolaid but little gets done that is actionable

5. Failing to complete an effective roll out process

6. Violating the “people-support-what-they-help-create” premise. The “End Game” should be reviewed and consensus of direction should be reached by the strategy team and the CEO-0wnership

7. Conducting business as usual after strategic planning with no sense of urgency about the new strategic focus

8. Failing to make the tough choices and holding people accountable

9. Lacking specific Key Performance Indicators (KPIs) and measuring only what’s easy, not what’s important to the success of the strategic plan

10. Seeing the planning document as an end in itself and then letting it collect dust

“If you don’t get people to buy into the strategic process on how change is managed, it will fail. This makes a “Roll Out Process” and a Core Strategy Statement that is understood by all levels of employees absolutely essential.

The CEO Strategist Methodology

There are five components that make strategic plans effective. They are:

1. End Game – Vision for the Future

2. Critical Core Initiatives (CCIs)

3. Strategic Implementation Plans (SIPs)

4. Accountability – The Strategic Review Meeting (SRM)

5. The Roll Out Process

The End Game

The End Game is actually a Chess terminology used in the context of the end game strategy to win the game. It focuses on centralization of the king, the role of the pawns, the principle of weakness and the bishop’s impact and that is as far as I will go with chess talk. I am not a chess player. However, the concept of the “End Game” in business is actually quite the same as in chess, the point being — how do we win the game.

The “End Game” in business is simply defining what winning the game in your business is really about. What does winning mean. If you have seen one end game, you have seen one end game. Every end game is different, unique to the business, unique to its creator. The end game can be as simple as a statement about the character and integrity of the business or as detailed and complex as defining individual business segment growth with specific financial goals outlined with attendant timelines. Contrary to the definition of End, the “End Game” is really the beginning, the beginning of long term strategic planning.

Critical Core Initiatives

Critical Core Initiatives (CCIs) define how the End Game will be achieved. They provide the general framework for the “big picture” improvements in the most important areas. They are broad and ambitious. Each Critical Core Initiative is supported by a set of SIPs that contain a sequenced set of tasks, schedules, and named responsible individuals. The creation of SIPs indicates that the chosen area is one that provides a high payoff in terms of innovation and managed change.

Strategic Implementation Plans

Each Strategic Implementation Plan (SIP) also has an owner. On an annual basis, this responsibility may be reassigned, at management discretion. It is the owner’s responsibility to ensure that the agreed action steps and changes are accomplished within agreed time frame. For purposes of SIP accountability, each owner will be accountable to the President or another top-level executive, depending on organizational structure. It must be clearly understood that independent departmental segment business plans must be developed as the tactical part of this process once the strategic plan is approved.

SRM——The Review and Control Process

The key managerial tool to ensure steady, consistent progress on SIP tasks is the formal Strategic Review Meeting (SRM). The SRM is held monthly – Bi-monthly or Quarterly. It provides a critical feedback loop for the strategic plan.

The purpose of the SRM is to:

o Clearly understand the status of your key initiatives.

o Keep executive focus on strategic, rather than just urgent, issues.

o Facilitate communication and support throughout the executive team and the company.

o Formulate emergency responses to company-wide threats or opp

24-7 – That’s Why You Need a Strategic Plan For Business Growth!

Are you caught up working 24-7 IN your growing business?

Can’t find the time to get it all done? Not enough hours in the day? No one can do the work right, except you?

Well, then maybe the time is right for you. You’re finally ready to implement a strategic plan for Business Growth.

Let’s review 24 reasons why your business needs a strategic plan for Business Growth.

24 Reasons Why You Need A Strategic Business Growth System

You have no future-oriented vision for your business. In other words, you don’t know where you would like your business to be in 1 year, in 5 years, or even in 10 years from now.

On the other hand, you have some vague notions of where you would like your business to be in the future. But you don’t have any concrete plans established to make your dreams a reality.

Another reason you need to develop a strategic plan for business growth is that you are not sure what it is specifically that YOU want to achieve for yourself personally from your business. A strategic plan for business growth specifically incorporates plans to help you achieve those personal goals you want from working in your business for the next 5 to 10 years.

A strategic plan for business growth includes the balancing of your personal and business values. One should not outweigh the other. A strategic plan asks you to consider your personal values as you develop a plan to grow your business.

One primary reason for developing a strategic plan for business growth is your Cash Flow. Is it unpredictable? Why is that so? A strategic plan for business growth must address your business’ Cash Flow circumstances.

In addition, a strategic plan to grow your business will help you develop your business’ unique methods of generating Cash Flow.

Does your business have a specific “system” developed to generate Cash Flow? How about to manufacture more of it? Your strategic plan should encompass the design of such a Cash Flow “system”.

Any business can suffer from the unfortunate circumstance of having trouble paying bills on time. How can you solve this problem? The answer typically lies in having an organized approach to your business growth that keeps focus on your financial outlook. Your Cash Flow, your sales, your accounts receivables, and your own collections may be underlying reasons for your own financial woes. Your strategic plan should answer these questions and should arrive at workable solutions that you can implement to correct the problem of money, of Cash Flow.

If your business has failed to produce sustainable profits, likely you do not have a strategic plan in place. Your plan must set out actions to produce profits. But must also be focused on sustaining profits once they start to come.

One major reason for designing a strategic plan for your business is because your customer or client base is unstable, not growing, or even dwindling. You need a plan to identify your current customers and clients. And a plan to target your most valuable ones.

What if your customers or clients aren’t sure what it is you do? What steps are you taking to ensure that your customers and clients do know exactly what it is that you do? These steps must be “programmed” into your customer and client contact “system”.

If your customers or clients do not refer business to you, and neither do friends or colleagues, something is wrong. What? You’ve got to strategically analyze your business and come up with reasons for your lack of referrals. Then your plan must include remedies to the referral problem.

Many times, your competition gets the upper hand over your products or services just because you failed to consider them. Your plan to grow takes into account your own competition, their products, and services compared to your own. What steps can be taken to improve your products and services, or to design new ones that are even more competitive in your market? Your plan will have the answers.

What do you love about your business? Your products? Your services? Are you really passionate about your business? Any plan to grow a business must answer this important and fundamental question.

What about your marketing? Have you addressed this issue in your plan to grow? Are you spending too much money on marketing with no specific method, plan, or target? When you implement your strategic plan, you will come up with a specific plan for your marketing and, most important, a specific target to market.

Additionally, it may surprise you but you are in desperate need of a strategic plan to grow your business if your only form of acquiring new customers or clients is word-of-mouth. What is your method of acquiring new customers? What are your specific plans?

Who are your “prized possessions?” I call these your “Ideal Customers and Clients.” Your plan to grow your business must include ways to identify your Ideal Customers and Clients, and ways to acquire even more of them.

Can you state exactly what benefits your products or services provide to your customers or clients? You must be able to as part of your plan to grow your business. Once you arrive at your answers, write them down. These benefits must be constantly, and consistently promoted to your customers and clients as part of your overall plan to grow your business.

Why do you need a strategic plan to grow your business? Because you don’t have enough time in the day to do all you have to do. When you fail to plan, you plan to fail. Writing it down, and then following your plan is a great strategy for time management and goal achievement

“But I can’t develop a plan.” I’m just too busy putting out of the fires.” That’s a primary reason why a plan that strategically addresses your issues, obstacles, and problems, your IPOs, is urgent. You’ve got to identify what are your IPOs. You do this as part of your strategic plan. Then your plan has got to come up with solutions that you can implement to overcome your IPOs.

A central reason for having a strategic plan in place is so you have a method and steps to follow to achieve your goals. And they’ll be written down. Once they’re written down, then their achievement are merely a matter of executing the steps you have written down. If you want to achieve your goals, then have a strategic plan to do it.

But what if you say you don’t have a plan. That you just do what you have to do each day you come into the office. Having a “system” and a formal process to follow day in and day out leads to consistent action and eventual triumph over the hurdles and obstacles you face in your business. A formal plan will keep you on track taking the actions that you need to achieve your goals.

A necessary part of your business, if you want it to grow, and make money in the process, is to design and implement a “system of operations”. Your strategic plan for your business must establish the key “business operating systems” that will run your business and its component parts, whether you are on the job or not.

If you’ve been keeping track, we’re now at the final reason why you need a strategic plan in place to grow your business. If you’re not sure of definite ways you should grow your business and increase your profits based on your personal goals and business objectives, then you really don’t have a plan. You haven’t thought out how your business is supposed to be the vehicle that gets you to the ultimate destination…, your goal achievement.

But once you take the time to design a strategic plan, you’ll then have a method… a “system” that you can follow daily. You’ll have a plan that sets out definite ways and methods that you can implement… ways that will increase your profits… and that will drive you daily towards the ultimate achievement of your goals and aspirations. Not only for your business…, but for YOU.

There’s 24 reasons why you need to design and implement a strategic business growth system for your business.

“But, how can my business benefit if I design a strategic plan for business growth and increased profits?”

To answer that question, let’s review just 7 benefits of designing and implementing a strategic plan for business growth.

7 BENEFITS OF A STRATEGIC PLAN FOR BUSINESS GROWTH & INCREASED PROFITS

Once you develop a strategic plan to grow your business and increase your profits, you will have:

=> A business that is strategically growing and evolving into the dream enterprise YOU always wanted.

=> More fun and satisfaction by doing the kind of “work” you most enjoy, with the people you most like to work with, and for the kind and quality of customers and clients you dreamed of one day serving.

=> A financially solid business with increasing income for you and your staff.

=> Profit building, with lower overhead costs and reduced expenses.

=> Easier, quicker resolution of customer and client complaints, and staff issues.

=> More time off to spend with family and friends.

=> Less stress.

So, what are you waiting for?

There’s only 24 hours in the day . And only 7 days a week.

24/7.

But that’s enough time to get busy working ON your business.

So, get going. Today. This hour!

You want to make more profits? Achieve all of your goals? Have more time off? Feel fulfilled? Be happier and more passionate about your business?

Then here’s the secret.

You must design, and implement a strategic plan for your business growth.

This article is an excerpt from the MasterMind Business Growth System, as authored by Miguel Mendez, Jr., Esq.

Copyright 2008. Miguel Mendez, Jr. All rights reserved.

The author of this article, Miguel Mendez, Jr., is the Owner of MasterMind Group International. He is an Attorney, noted Business Growth Expert, and Speaker. Miguel Mendez has represented and performed consulting services for start-up and fast-growing businesses for over 22 years.

To learn more about how you can design and implement your own strategic plan for Business Growth and increased profits, check out the MasterMind Business Growth System, a 310 page interactive workbook, with 8 CDs, and easy-to-implement forms and checklists.

Why a Strategic Plan is Important

As consultants, we work with a variety of businesses across a number of industries as well as non-profit entities. In reviewing the performance of these organizations, it is interesting to note that those businesses that perform at the highest levels usually have some sort of formalized strategic plan in place and have implemented it well.

On the other hand, those businesses that struggle usually have no plan in place and seem to flounder in their attempts to be successful. And many of the organizations that are successful in the implementation of their strategic plans use a simplified strategic planning process to get the plan written and implemented more quickly and efficiently. One of the things that caused some to proclaim that strategic planning had lost it luster was the tendency of some to drag out the process too long and to create more work than necessary. The simplified, rapid development approach has helped immensely in getting good strategic plans developed and implemented.

In order for a business to be successful, there needs to be a road map for success. The development of sound business strategy is a result of the strategic planning process. A significant mistake that is made by businesses large and small is defining critical business strategies without going through this process. A strategic plan helps to provide direction and focus for all employees. It points to specific results that are to be achieved and establishes a course of action for achieving them.

Another common mistake is simply allowing the organization to wander aimlessly without having even generalized goals in place. Having well defined goals, objectives, strategies and tactics reduces the risk of business failure and helps increase the likelihood of solid success. And speaking strictly from the perspective of a manager, owner, director, president, CEO, etc., their own success can be defined by having a well developed strategic plan in place that is well implemented.

A strategic plan helps the various work units within an organization to align themselves with common goals. But perhaps most importantly, the strategic planning process provides managers, owners and entrepreneurs the necessary framework for developing sound business strategy.

Arguably, the leading cause of business failure is not having a strategic plan in place that is implemented effectively. If a business has little idea where it is headed, it will wander aimlessly with priorities changing constantly and employees confused about the purpose of their jobs. And it could chase strategies that have little or no chance of success.

Building a strategic plan is not difficult. It will take some thought and some feedback from customers and others, but businesses should be routinely garnering feedback from appropriate constituent groups on an ongoing basis. The process of developing a strategic plan should be rewarding for all involved and usually helps develop stronger communications between members of the planning team.

Managers and business owners need a well developed strategic plan in order to effectively establish expectations for their employees. Without a plan, expectations are developed in a void and there is little or no alignment with common goals and strategies. A good strategic plan looks out 2 to 5 years and describes clearly what market, product/service, pricing, marketing and other strategies will be followed. In short, it defines how the business will grow and prosper over the defined planning horizon.

Strategic planning does not end once the plan is put on paper. Once developed, the key to making the plan work is a commitment to seeing it through coupled with sound implementation. Unfortunately too many good strategic plans end up on a shelf gathering dust without being even partially implemented. The commitment to not only creating a sound strategic plan, but to its full implementation must be made at the beginning of the planning process.

The strategic plan will contain an action plan that will detail the steps to be taken in order to fully implement the strategies and tactics defined in the plan document. And that action plan will delineate specific deadlines and individuals or teams responsible for completing defined tasks.

Far too many organizations, large and small, fail to develop even basic strategic plans. The absence of a strategic plan is one of the key reasons many businesses struggle or fail. Without that road map provided by a solid strategic plan, decisions are made in a vacuum and/or there is considerable confusion and inconsistency evident within the organization. During tough economic times, the need for a solid strategic direction and plan is even more pronounced because the margin for error generally becomes smaller for most businesses.

All employees need to understand the guiding principles of the business and what everyone should be aiming to achieve. A strategic plan that is well developed, properly communicated, and carefully implemented can launch struggling or underperforming businesses to new heights.

Take a look at your business. Are your critical business strategies well defined? Are they successful? Does there seem to be a lack of focus on where the company is headed? Does everyone clearly understand the goals for the business? Strategically, how will the business achieve those goals? Is your current planning horizon longer than one year? Are you developing annual business/operating plans without a strategic plan in place? Strategic plans should drive or at least help define operating plans and budgets.

Writing a strategic plan isn’t as complicated as some would lead you to believe. Simplified strategic planning has been our focus for some time because too many organizations get caught up in the process and lose sight of what is important. We have found, without exception, that businesses which create and execute sound strategic plans are generally far more successful than those that do not. Remember that successful implementation of the plan is a must. If you write a plan and then allow it to gather dust on a shelf, you might as well have no plan. There must be a commitment to implementing the strategies and tactics detailed in the plan.

Make no mistake about it, if your business or non-profit organization is operating without an effective strategic plan in place, it runs the risk of underperforming or even failure. As mentioned, writing a strategic plan is not difficult and it does not have to be overly time consuming.

The notion that strategic planning has to be a long arduous process to be successful is complete nonsense. In fact, our experience clearly points to a far more successful planning experience and better plans when the plan is completed without a lot of “bureaucracy” and extraneous analyses.

There are certain steps required in the strategic planning process in order to develop a solid and actionable plan. Using a strategic plan template is an effective method of getting a solid plan written and implemented. At the request of our clients, we have created such a template that includes instructions and examples of each step as well as worksheets that can be completed to effectively create your plan.

Strategic Planning: Street-Wise Tips to Make It Work for Your Organization

Strategic planning can be either a boon or a bust for an organization. Many people bring “baggage” to the process. Some people have had terrible experiences. They vehemently oppose committing time and other resources to it. Others yawn, glaze over and are completely skeptical that the process can produce any measurable results. Others enthusiastically embrace the process and produce extraordinary results.

What makes a strategic planning project successful? How can you get the most out of the time and money invested in the project? The following points address key factors that will help you take action to plan and implement a successful strategic planning project.

1. Invest time in “planning to plan.”

Get commitment from the CEO and senior management. Make sure that the CEO and senior management will be active participants. This means clearing their schedules to ensure attendance in all face-to-face strategic thinking sessions. Be sure they understand that the commitment of resources extends beyond face-to-face strategic thinking sessions. Resources, including time as well as money, must be committed to the implementation and measurement stages in order for the strategic plan to be successful.

Appoint a Project Planning Team. This team will usually consist of two to four people who are responsible for making decisions about the structure of the project and communicating with the others who will be involved.

Determine whether to use an internal or external facilitator. An external trainer enables all those involved to actively participate in the strategic thinking activities. It is extremely difficult for an internal person to facilitate and also express their personal insights as questions are raised. An external facilitator also offers “the third person” perspective, can bring information from other sources and challenge “entrenched in-house thinking” or “corporate taboos.” An external facilitator can manage the group’s participation without concern of the hierarchy, political consequences or personal repercussions.

Develop a clear statement of what you want to achieve. By clearly articulating what you want to accomplish, you improve your chances for success. Utilize the facilitator to help you. Communicate this statement to participants and other members of your organization.

Explore the benefits, drawbacks of a variety of formats with the facilitator.Work with the facilitator to select the format that best meets the unique needs of the organization and individuals involved. (Do you want to utilize pre-session activities conducted by electronic media/fax/mail to get participants thinking before the face-to-face sessions? Is there a need for market research? If so, what type and to what extent? What existing information is pertinent for the group to review? Should strategic thinking sessions be half-day, full-day, spread out over several months or condensed into several days back-to-back? Should the strategic thinking sessions be held on-site or off-site? What atmosphere is most conducive for the participants to leave behind the day-to-day pressures so they can fully concentrate on strategic thinking?)
2. Gain an understanding of the key elements of the process and the facilitator’s style. A comprehensive strategic planning project should include:

Conducting an Environmental Scan – This helps you understand the current environment that your organization operates within. It often includes market research in the form of surveys, focus groups or industries studies. It should include an analysis of the organization’s strengths, weaknesses, opportunities and threats (SWOT.) It should identify the organization’s core competencies.

Developing or reaffirming of the organization’s Core Values, Mission and Vision.

Identifying and prioritizing the Key Strategic Issues/Directions.

Developing an Action Plan that includes goals, objectives, action steps, time lines and outcome measurement strategies.

Implementing the Action Plan.

Evaluating progress by how effectively you’ve met the outcome measurements.

Communicating the benefits of the strategic planning process to those who will be participating.
3. Conduct the strategic planning activities.

Work with the facilitator to determine the logistics of any pre-session activities. Determine how those activities will be conducted — by phone, email, fax or mail? Who will disburse the information? Who will gather the responses, compile and distribute summaries? Determine who is to be contacted?

Work with the facilitator to develop an agenda for any face-to face strategic thinking sessions.

Give the facilitator freedom to implement the process in the manner that works for him/her. Each facilitator has his/her own style. Allow them to utilize their style to maximize the results.

During the strategic thinking activities, allow the process to work the participants. Be on your guard for an individual or group of individuals who try to control or manipulate the process to achieve (or avoid) preconceived results. A good facilitator will minimize the chances of this happening, but support from the Project Planning Team can be very helpful.
4. Implement the action plan.

Implementing the action plan is essential to your overall success. Strategic planning is much more than merely the strategic thinking and strategy development. The essence of strategic planning is implementing the strategy, measuring the outcomes and adjusting your organization’s performance based upon the outcome measurements.

Use the strategic plan to guide day-to-day activity, budget development, research and development, etc.

Measure, measure, measure. Measure your progress by utilizing the outcome measurement strategies that are part of the action plan.
5. Review, re-evaluate and revise.

Review the strategic plan at least annually. Better yet, record progress quarterly. Then review the progress on an annual basis.

Re-evaluate the environment, core values, mission, vision and key strategic issues/directions. If these need to be revised, do so.

Revise as needed and develop a new action plan.

Make strategic planning an ongoing activity rather than one that is conducted every three or five years.
Strategic planning provides your organization with the foundation for sustainable growth. It helps you know where you want the organization to go and when you have achieved your goals. Strategic planning not only helps you manage change, but profit from change. It increases your control over those forces that affect you and helps you to respond more effectively to those forces that you cannot control. During these uncertain times, a successfully implemented strategic planning process can be the “guiding light” that helps employees and management manage and prosper from change.

2011 Center for Strategic Change, LLC. All Rights Reserved.

Judy Whalen is founder of Whalen & Associates, Inc. and the Center for Strategic Change, LLC. Judy has over 18 years of experience as a consultant to business and nonprofit leaders guiding them through strategic thinking sessions and developing strategic plans. The Center for Strategic Change provides consulting services in the areas of strategy, market research and communications. It also offers teleseminars, webinars, live workshops and a DVD series to help business and nonprofit leader

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