Building Strategic Plans

A strategic plan defines who you are as a business and lists concrete actions to achieve your goals, so creating one takes time and thought. Let’s discuss the W’s of strategic planning:

Who should be involved?

Clearly the owner should be involved. And depending on the type of plan you’re creating, you might also want to include division leaders, administration, sales staff, operations management and a facilitator.

What should be discussed or decided?

The strategic plan meeting should identify or review the company vision, mission and core values, a SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis, company goals and objectives as well as an action plan.

When should you prepare a strategic plan?

A strategic plan should be created annually, reviewed quarterly and discussed weekly.

Where should the meeting take place?

It has been our experience that the most productive meetings take place outside of the office. We recommend booking an offsite location for a day where you’re less likely to experience distractions.  

Why create a strategic plan?

• To set 3-5 year goals
• To maximize profits
• To build a sustainable company
• To set specific goals
• To define the company’s direction
• To create alignment
• To focus on tasks outside of operations
• To receive team input

Resources

You know we love to recommend books! Here are some that will help with strategic planning:

The 4 Disciplines of Execution by McChesney, Covey and Huling

Good to Great by Jim Collins

Strategic Planning by B. Keith Simerson

Traction by Gino Wickman

Now that we’ve answered the “W” questions, let’s talk about areas where you might want to create a strategic plan and what to include in each plan: 

Corporate Strategy

• vision
• mission
• core values
• what the owner wants out of the business

Sales & Marketing

• current market conditions
• ideal client
• marketing strategy
• guarantee
• budget

Finance

• budgets
• KPI’s
• cash flow
• reporting

Operations

• services offered
• management structure
• equipment
• budget

HR

• organization structure (org chart)
• staffing requirements
• training
• policies
• recruitment
• retention
• budget

Technology

• hardware, software, telecommunications
• current technology being used & its effectiveness
• market research for new technology
• ROI on implementing technology
• budget

Succession Planning

• most owners do not have an exit plan, so it’s important to know your options:
  • close the business
  • sell to competitor
  • sell to private equity
  • sell to staff
  • sell to family
 
• start making strategic decisions today that will increase the value of the business

This may seem overwhelming, but it doesn’t have to be. Tackle one plan at a time, starting with the corporate plan. If you’d like to talk with me about strategic planning, or if you’d like me to facilitate your strategic planning meeting, feel free to email me or book a call with me.