Tweet

Besting Your Plan’s Performance: The Time To Start 2012 Strategic Planning is Now

Guest post by: Joe Evans

Article Overview: Corporate plan management is a day-to-day and week-by-week activity. The long-held belief that strategic plans are addressed once a year serves to obfuscate the ever-green nature of what plans really represent. They require a switch in our mindset away from treating strategic planning as if it were a project. Instead, it is an ongoing journey that requires us to recheck our position against the map frequently to avoid getting lost.

Besting Your Plan’s Performance: The Time To Start 2012 Strategic Planning is Now

You Should Be Getting Year-Over-Year Performance Increases

If plan governance isn’t instilled as a core element of the executive team’s reality, focus on accomplishing strategy wains quickly. Why? Because time flies past rapidly and organizations face so many daily distractions that the interference begins to blur the big picture for all but the most focused executives. Ideally, strategic plans should be refreshed quarterly, updated annually and rewritten every three years. It should be an ongoing part of business operations to re-check against plan goals and objectives.

Corporate plan management is a day-to-day and week-by-week activity. The long-held belief that strategic plans are addressed once a year serves to obfuscate the ever-green nature of what plans really represent. They require a switch in our mindset away from treating strategic planning as if it were a project. Instead, it is an ongoing journey that requires us to recheck our position against the map frequently to avoid getting lost.

Strategic Planning Is Not An Annual Project

Much like humans, corporations get distracted and can lose energy and focus. A condition similar to Attention Deficit Disorder (A-D-D) can afflict companies and infuse busy, yet non-strategic activity and behavior throughout the ranks of the organization. In the world of sports, coaches develop detailed game plans in advance of each competition and drill their teams on the roles and expectations of each position to accomplish the plan’s outcomes. The players are responsible for knowing their roles before game time and are accountable to the team to stick to the plan in the heat of the moment. During the game, when a coach spots behaviors inconsistent with the game plan, they call a time-out and huddle the team together to reinforce key messages and reinvigorate energy and focus within the team. Perhaps the coach spots issues with the game plan and needs to make on-the-fly adjustments. Another time-out is called to regroup. The coach uses that moment to let the players know what is being accomplished by the opponent and how the team needs to change current game play to address and stop the successful maneuvers of the opponent. This same type of response is called for in business, when operational management drifts away from the plan and allows distractions to effect strategic performance. Certainly our business strategies are comparable to the coaches game plan in this analogy. Business is a competition and we must treat it as such. We push for besting our own previous year’s performance, but we are not actually in competition with ourselves. We are trying to best our competitors.

We need a more hands-on and nimble approach to managing performance related to our strategy execution. This can be accomplished by restructuring the current strategic plan into fewer and smaller, but measurable and obtainable goals. The strategy holds together as a relatively constant baseline...the thread upon which goals on strung like beads. The organization’s strategic priorities dictate the order in which elements of the strategy are addressed and even help to determine the definition of success and how that will be measured. Consider a restructured plan that involves the following changes:

• Focuses operationally on accomplishing the top 20% of strategic priorities
• Allows for reevaluation of the priorities quarterly and claiming victory on short-term objectives that have been accomplished
• Looks externally to competitor / peer performance benchmarks and factors those inputs into strategic adjustments and operational tactics systematically (allowing the business to push even harder to succeed quarter over quarter)
• Sets the right priorities and clearly communicates the expected actions and results
• Rewards the people that help achieve the results

In the business world, there are layers of coaches that have responsibility for their domains in the enterprise. They must be coordinated and pulling or pushing in the same direction. When they do not work together in an orchestrated fashion, much like teams in a sports competition, performance begins to fall off and strategic execution suffers or fails altogether.

What if your not doing a good job on formal strategic planning now?

If your business is one of those that falls into the “reactive” category as opposed to “proactive” when it comes to corporate planning, it will take time to gear up and be ready to roll-out a first fully fleshed-out strategic plan. The same is true if your current plan is stale and is going on year three or more in age. Work should begin on the plan at least six months ahead of the strategy launch. Why, you ask? Because the analysis feeding the planning process is crucial and should not be cut short. If you have ever painted your own home, inside or exterior, you know that it takes time to prep before getting into actual painting. In fact, scraping old paint, preparing the surfaces and painstakingly taping all the borders and cut-ins usually takes longer than the actual task of painting.

Since strategic planning models are intended to manage the strategic actions of an organization, a thorough understanding of the current-state provides the foundation on which to build.What does that look like?

Current-state Analysis in Relation to Industry Direction / Momentum

By studying the movement, direction and momentum of the industry or industries served by the organization, the data can feed the strategic planning process leading to better planning decisions. For instance, if the industry data suggests that competitors are enjoying a technological advantage over our firm and that they are steering the industry in a direction that is eroding market our share, what do we do about that? If we cannot dominate, do we leave?


The decision to continue following the market or to break away from the pack will have huge implications on organizational action. When faced with a technological disadvantage such as the one posed here, strategic decisions must be made on possible exits from the market, acquisition of a competitor, partnering, mergers, increased research and development in an attempt to close the competitive gap. 

All possible strategic actions will have long-term implications - rewards or consequences, therefore the importance of scenario and contingency planning along with risk management and mitigation planning become more and more evident.

Current-state Analysis in Relation to Innovation Efforts/Programs

To avoid lagging behind competitors, organizations must continue to cultivate ideas for improvements to products and services, and then harness the best of the innovations into value-creation enhancements or altogether new offerings. The challenge with innovation in many organizations is framing it into a discipline that can be leveraged. Incentivizing innovation is a step in the right direction, but is only a part of the framework needed to capture, process and act on creative ideas. Such a process should outline how innovation unfolds, starting with the origination of an idea and depicting the steps that lead to its transformation into something useful and that can be implemented.

An evaluation of the current-state of innovation (formal programs or informal frameworks) becomes an essential building block for future strategy enhancements to maintain or improve competitive positioning.

Current-state Analysis in Relations to Organizational Competencies

Core competencies are what make individuals and the organization they constitute special. The competencies are a generic list of skills, and as applied to the employee and the organization then becomes the foundation for what the organization possesses that set it apart from its peers. These groupings of skills are a source for identifying competitive advantage and the building blocks for future opportunities.

Definition: Core Competency - a bundle of skills that enables an organization to provide a particular benefit. A core competence is not product or service specific.

Core competencies are the underpinnings of the organization’s skills that contribute to the development of a range of products and services and the cornerstone of successful strategy, therefore, an objective current-state review of the match-up of core competencies to the organization’s vision, mission and strategy is a must. This data will serve the strategy planning effort after the future-state has been defined, as operational plans will be dependent on closing any gaps that are found to exist.

Current-state Analysis in Relation to Technology

Technology should benefit the business through increased efficiency in the delivery of products and services, leading to a boost in market value and competitive advantage for the organization. Technology strategy must be aligned to corporate goals, so the planning process, as it relates to technology, should help identify, define, and develop both departmental and discrete initiatives that save money, improve quality, and enhance performance. Technology current-state represents another key building block for the strategic actions that will be defined later in the planning process.

Other Inputs

Additionally, strategic priorities for the organization must be identified, formally defined, valued and then prioritized. That is what drives to “future-state” vision of the organization and eventually translate into the corporate strategy. Building upon the current-state analysis, consider the following:

• Are there newly identified strategic priorities related to innovation / research & development?
• Are development programs for management and staff called for to align competencies with the desired future-state?
• Will new state-of-the-art technologies be required to support the organization’s future-state business processes?

The outcome we seek by conducting the current-state analysis is to gain a thorough understanding of our positioning, which will lead to the identification of strategic priorities and a thoughtful analysis of the long-term value each will bring to help us arrive at our future-state. The tactics of getting from the point of origin to arriving at our destination will be fully-developed and woven into our strategic plan.

Another key point to consider is this. The corporate strategy, when distilled into its pure essence of goodness, must boil down into a manageable small number of goals that then expand back into a number of sub-strategies to accomplish those goals. Managing big and complex is much more difficult than managing smaller and elegantly simple chunks of strategy. Starting early and /or ongoing makes this much easier to accomplish.

There is one more key point to make about getting in front of and controlling the strategic plan development. Assumptions form the basis of those sub-strategies referred to above, and those underlying assumptions must all be fully vetted. Fully vetting strategic assumptions also takes time. It requires allowing those involved with planning to back away from the “givens” and challenge them to ensure we are not assuming the rosiest scenarios on which to base our plan.

You don't manage your projects once a year, so why do it in strategic planning?

The time to begin working on your planning process is now. Strategic and operational planning and management should already be happening year round, so extending to year round planning and governance enhances both the quality of the strategy and the operational effectiveness of executing to the plan. No matter where your organization falls on the continuum of planning sophistication, there are actions required today that are likely not being addressed.

---

For permission to use or reprint any portions of this copyrighted article, contact Method Frameworks at articles@methodframeworks.com.

About the Author:

Joe Evans is the President and CEO of Method Frameworks. Joe is a published author, frequent speaker and recognized expert in corporate strategic planning. To contact Method Frameworks about scheduling Mr. Evans about an upcoming speaking engagement, visit www.methodframeworks.com/business-speaker or email requests to media_relations@methodframeworks.com.

---

Download our Guide to Corporate Strategic Planning Our guide to successful strategic planning, called "Bridging the Gap Between Strategy and Execution", is a 13 page complimentary resource to help your organization initiate and manage the strategic planning discipline. Your business will richly benefit from the results you can achieve by successfully defining strategy, then linking it to all aspects of operational execution.

Receive our complimentary guide to successful strategic planning now. Click on the link below and you will receive instant access to "Bridging the Gap Between Strategy and Execution" in PDF format. Download now.

---

Join the Strategic Planning Xchange group.

Learn More Method Frameworks is a leading business strategy and management consulting company, based in the Dallas / Fort Worth area and serving clients nationally and internationally.

Discover our capabilities and learn why Method Frameworks is the strategic planning partner chosen by Fortune-500 companies and small businesses alike. Let us show you how to realize 140%+ ROI on your strategic planning efforts through our unique Plan4^SM process that brings together strategy and execution into a powerful plan. Plan4 is our proprietary business planning process that involves an integrated set of actions designed to help companies gain sustainable advantage. Download our brochure to learn more about Method Frameworks and our services or download our Plan4 Planning Process Overview.

You can contact Method Frameworks at 877-317-5264 (877-31PLAN4) or follow this link to request a meeting with a planning consultant. Check our articles and blog often at www.methodframeworks.com to get many more planning tips and information about our Plan4 process.

Related Articles
  “A Major Communication Tip For Successful Strategic Planning – Provide Definitions of Major Strategic Planning Terms As You Begin”
  “The Top Ten Reasons Strategic Planning Meetings Fail, According To Your Strategic Thinking Business Coach”
  Change Management Can Lead to Rigidity and Resistance to Change
  What Is Strategic Business Planning?
  Ten Top Tips For A Healthy Business To Start The New Year From Your Strategic Thinking Business Coach
  Strategically Structured Succession Planning For Company Leadership According To Your Strategic Thinking Business Coach
  How To Hone Your Strategic Thinking Skills To Plan For The New Business Year, According To Your Strategic Thinking Business Coach
  Checklist for Setting up a Strategic Plan -- To Win
  Strategic Thinking – A Wise Business Investment, According To Your Strategic Thinking Business Coach
  Strategic Planning - What It Is & Why It Is Important
  How to Avoid Business Failure
  Strategy: A Process and a Journey or Just a Way of Thinking?
  Spray and Pray The Substitute for Strategic Planning
  “Eight Key Characteristics For A Strategic Planning Facilitator, According To Your Strategic Thinking Business Coach”
  Clearing Up The Myths About Strategic Thinking and Planning
  Year End Strategic Planning - To Plan or Not to Plan - That is the Question\"
  Strategic Thinking What Does It Really Mean
  Strategic Thinking Planning for Nonprofit Organizations
  Strategic Planning Must Include a Strategic Action Plan Filled with WAY SMART Goals
  More on Strategic Planning What Do You Think

Article Tags: business consulting, corporate strategy, management consulting, operational planning, plan execution, strategic planning, strategic planning consulting, strategic plans, strategy consulting
Referred by: http://www.imageworksstudio.com/



Related Forum Posts
HRPreneur - Hi everyone, I am new to the forum and I recently started my own Human Capital (HR) consulting firm called HRPreneur Inc. HRP focuses on making human capital a strategic differentiator for SME's. Below is a summary about HRP; Who We Are: HRP is a Human Capital consulting firm with 30 years of experience that becomes an extension of your company by providing a full array of services to help you create a highly engaged workforce focused on achieving strategic results in order to build a long lasting great company! Mission: HRP provides small and medium sized businesses a Strategic HR Business Partner to increase employee engagement, resulting in cost savings, increased productivity and results at an affordable rate! Vision: To inspire and warrant SME's reach their full competency! Cost Effectiveness: We provide over 30 years of experience at a fraction of the cost at a strategic executive HR business level You will save between 50% to 60% in costs per year on salary, bonus, benefits, training, office space alone We will provide you additional cost efficiencies through our services Services: • Strategic Human Resources Planning • Organizational Redesign • Change Management • Organizational Culture Development • Employee Engagement Programs • Leadership Assessment and Development • Compensation Design • Talent Acquisition • Assimilation and On-Boarding • Performance Management • Talent Management & Succession Planning • Human Resources Due Diligence • Human Resources Audit • Full Service HR Outsourcing
Different Hats - CEO Sales & Marketing & Leadership Development Company Strategic Vision 10 Alliances & Growth Strategies 10 Hiring & Managing People 8 Mentoring 8-9 Strategic Planning for Clients 10 Execution of Marketing Campaigns 9-10 (i have great people who do the nitty gritty) Financial Management 9 Bookkeeping 3 (outsourced as I really hate the fine details like GST0 Administrative Follow Up 6-7 (again have great staff) Writing & Publishing 9 (getting better all the time!) Speaking 10 (so I have been told) Self Promotion 9-10 Web development & Promotion 6-7 (learning more and have brought on players who are 10+) Babysitting Employees (1 - wont do it, that's why I work so hard to hire and motivate the people I have) Great topic Kevin!! Jude
Re: 2010 Social Media Marketing Industry Report - Interesting 2012 report, should be a part of everyone's reading for 2012
Do you believe in "Mantra" or "Mission Statem - In the Strategic Management course I'm currently taking, my group and I were supposed to come up with an improved mission statement for the organization we're analyzing or explain why the existing one doesn't need to be revised. However, business expert and author, Guy Kawasaki says "Forget mission statements; they're long, boring, and irrelevant. No one can ever remember them-much less implement them. Instead, take your meaning and make a mantra out of it. This will set your entire team on the right course" ("The Art of the Start" 3). Which do you use for your own businesses: Mantra, Mission Statements or neither? Thanks
Starting a New Business - I think [b]magonaga [/b]identified one of the most important ingredients for starting a new business in its simplest terms...."[b]Sheer bloody tenacious determination[/b]". The only thing that I would add to this is the need for a plan. There are many methodologies for planning, but I believe that the most effective is also the simplest. [list=] Step back from the excitement and anxiety, close your eyes and visualize your goal Identify all of the ingredients (e.g. office/store, legal paperwork, contracts, products) that you need to make your vision a reality Identify all of the ingredients that you need to get the previous ingredients (equipment, training, partnerships, mentors, marketing materials) Prioritize all of the ingredients Sketch out a timeline for how all of these ingredients come together to achieve your goal Execute the timeline...with a liberal dose of magonaga's advice [/list] When all is said and done in the realm of planning, take heed of Dwight D. Eisenhower's advice "Plans are nothing. Planning is everything". Even though your timeline may not go as planned, the fact that you devoted the time towards planning will help you understand the impacts of changes to your plan and react more effectively to unforeseen events. May God bless you in your endeavors!


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

Are You An Accidental Consultant?

What Is The Foundation for Your Vision?

Is the iPad useful? One CEO tells all ....

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.