It's amazing how much can change in just a few short months. This
article was originally posted on LinkedIn on January 17, 2020. Now, most businesses have been hit with an unforeseen global pandemic that has turned their original plans on their ear. Some are winning, most are losing.
I wish all small and medium sized businesses the best of luck as they navigate this environment. Let this serve as a reminder (and the fifth way to know) that there's no better time to reset your strategic plan than right now.
The owner’s dilemma.
Many owner-operators tell me how they spend so much time running the business, that they don’t have any time left to sit back and think about the big picture. They are convinced that strategic planning is a luxury reserved for large companies, with bigger strategic challenges.
They’re wrong. It’s not a luxury. In fact, it’s critical to ensure the long-term success of businesses of any size.
Origin stories vary dramatically for small businesses, but the founder often starts with a specific product/service/process expertise that is then turned into a business. In the early days, as they get the business off the ground, they have to think about the future - creating a purpose and mission that shapes the emerging company. Before long, founders are neck deep in the details, troubleshooting and problem solving on the fly. They do everything for the business, because if they don’t, no one else will.
And it’s exhilarating.
The rush that comes from each small win, each bold decision, big or small.
It’s addictive.
Too many founders are so hooked on chasing the day to day chaos that they miss the signs that their job has changed. As the business grows, the time horizon that they consider needs to expand. After a business is up and running, the day to day activities need to be managed by a capable team as the founder shifts their attention to managing the future, reevaluating strategic goals in the context of a changing environment and establishing tangible plans to achieve them.
You can break the cycle.
I had the pleasure of crafting the strategic plan for a manufacturing operation in Oakville, Ontario recently. The company is privately held and family-owned and operated. Founded in 2003, the client has been successful to date, beating long-term revenue and earnings projections, and beating the odds by surviving for 17 years.
When we finished the review, one of the founders commented,
“I really wasn’t sure what to expect when we started this process, but by noon on day one I knew this was going to be valuable.”
“This exercise has felt like going back to the time when we first founded the company. We were thinking about what we would be years into the future, and what steps we needed to take to get there. It’s energizing!”
This is a common reaction for those brave founders that take the time to step away from their business to create a strategic plan.
How do you know it’s time for your business to revisit or create a strategic plan?
If you find yourself saying any of these four things, then you’re ready for strategic planning.
Spoiler alert... it’s always time.
I’ve never had a strategic plan…If you have never captured your purpose, mission, vision, values and strategic objectives, then you’re running blind. It’s likely that your team do not understand how or why you make the decisions you do, and they make different decisions when you’re not around. Get planning and prepare to share the plan with your team. Your ability to execute will improve immediately.
I’m too busy to think about planning…If you’re too busy to plan, you need a better plan. If your business is burdened by the daily grind of customer escalations, internal breakdowns, missed deadlines - all of the clutter that fills your inbox before you even start your day - then you need a more thoughtful plan. If you are constantly overrun with problems to be solved, your business is out of control. A well-crafted strategic plan clearly links strategic outcomes to tactical plans that will make those daily challenges a thing of the past.
If you’re not planning to get better, you guarantee that tomorrow will look just like today...that is, until your customers take their business elsewhere and tomorrow looks much worse than today.
Things are going well, but we sure aren’t growing like we used to…After some early success, businesses often hit a threshold and growth slows to a crawl. The plan that you started with has run its course. It’s time to take a critical look at the next phase of your evolution and get back on that growth curve.
There’s new competitors in our market, but we’re different... - Any business that is facing new or growing competition had better reevaluate their strategic plans. Changes in the competitive environment often go undetected until it’s too late to respond. Your strategy is the sum total of all the decisions you make as you go to market - what you will and won’t deliver for your customers. A new entrant in your space may have a plan that attracts your customers, and you will need a quick response to recover.
A current strategic plan allows you to see the competitive threats on the horizon and to respond proactively to avoid any impact.
Still not clear on the benefits of regularly updating your strategic plan?
Here’s what that manufacturing company had to say after completing their recent planning exercise.
“Our plan is now documented in a format that we can use with all stakeholders, but more importantly with our team. We really haven't had the tools to communicate our vision and our principles with such clarity. I'm confident that we are now better aligned and that our team will share in our excitement when they understand our plans for the future.”
“The plan helped us to prioritize our areas of focus for the coming year. Now we can translate them into clear, measurable objectives for our key team members. Setting expectations for the team and linking them to performance appraisals and bonuses will significantly improve our ability to execute and the likelihood of success.”
Get planning.
Whether your business is stable, or changing rapidly, effective planning is a cornerstone to your future success. What has made you successful to date may not be the path to future growth.
With a small investment in strategic planning you will energize yourself and your team and get back on the track for your next phase of growth.
You’ve come this far, now plan for the next level.
This article was first published by Chris Chapman at https://www.linkedin.com/pulse/four-signs-youre-ready-strategic-planning-update-chris-chapman
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