Do I Need a Strategic Plan? Who Cares?
A strategic plan doesn't need to be overwhelming or scary. Read on as we review basic terminology and components of a plan and how it can help your business—and you.
The answer to these questions depends on how you define a strategic plan and how you will use it.
As owners and leaders of smaller enterprises, time and money are at a premium—there is never enough to do everything we believe we should be doing. Too many priorities create too much stress. We want more time for ourselves and our families.
Is creating and documenting a strategic plan just another task, or a way to help reduce stress, free up time, focus on what we do best, align employees and stakeholders, and help our businesses run more smoothly?
You deserve all of this. A well-documented, communicated, and managed strategic plan can help you get there.
Before we explore the question of “Do you need a strategic plan,” full disclaimer: I love strategic planning. I find it exciting. The only thing more fun than creating and documenting a strategic plan is gaining alignment around expectations, executing it, and communicating progress.
I am a fan because I have seen strategic plans in action—helping leaders align teams, communicate to boards of directors, and feel the satisfaction of laying out and meeting measurable goals. I have seen chaotic change turn into manageable change.
Strategic plans provide business leaders with the structure to execute in a well-thought-out and disciplined way. But they don't do that by sitting on the shelf.
Strategic Plan Definition: Our Common Language
Strategic planning can mean something different to everyone. Let’s set a common definition of what we are talking about.
There are many popular frameworks and definitions that accompany strategic plans, including EOS Vision/Traction Organizer, The One-Page Business Plan, The One-Page Plan, etc. The frameworks are similar but differ in terminology. I will do my best to describe the components in a way to cover the various terminologies, so we are speaking the same language.
Strategic Plan Components:
Core Values: How we should/shouldn’t behave; our beliefs
Purpose: Why we are in business, our work each day, our picture of the future, our core focus
Targets/3-Year Picture: Where we want to be in 3-5 years, a picture of our business, target market, planned financials and other accomplishments, our customers’ view of our uniqueness, the promises and guarantees we will fulfill
Goals/1-Year Plan: What we plan to do this year, annual priorities, critical numbers we will track
Actions/Rocks: How we do it, planned and tracked in chunks (typically quarterly) to meet annual goals
Schedules: Who will do what by when—setting the stage for accountability management
RELATED: 3 Simple Brain Hacks for Goal Setting and Achieving
So, Who Really Cares About All of This?
First, let’s consider typical stakeholders and how the strategic plan can best help them help your business. Let’s explore stakeholder groups and ideas on how the strategic plan can influence their impact. You might think of others.
Current Employees: Our core values set expectations for how we treat each other and our customers. The 3-Year Plan and 1-Year Plan create excitement about the company’s future and help employees see why their work is so critical. Schedules directly communicate the significance of each person and the criticality of achieving commitments. The strategic plan is a critical component in new employee orientation, indicating what we expect from employees and what they can expect from others. It provides the foundation for holding people accountable and is most effective when linked directly to performance and compensation management.
Recruits: Our core values and purpose describe our culture and the work we do. Sharing this helps potential employees better understand the organization and decide if it is a good fit for them. It helps us make the same assessment, especially when linked directly to behavioral interviewing.
RELATED: Employee Retention Challenges and Solutions
Customers: When we share our core values, purpose, long-term vision of who we are, and customer promise, we set the bar for what our customers can expect from us—and what we expect from them. This helps them decide if they want to do business with us. It helps our customer service team know how to interact with customers. To better understand this impact, think of some companies you love to work with and look for strategic planning components on their websites. (You might start with Southwest Airlines and Nordstrom, then check out COSE members’ websites.)
Advisors/Board of Directors: How do you get the most from expert advisors positioned to help with your business? You must provide the information they need to help you. Starting with your strategic plan. Get their expert input. Gain their alignment and, if needed, their approval. This will provide the foundation for what you communicate to them regarding the accomplishments and status of the business. It answers the question board members often have of, “So what?” when they hear your reports on accomplishments. It helps them evaluate business performance and provide valuable feedback.
Those with a Financial Interest: The strategic plan helps build trust with stakeholders, including those providing financial investment and support. It is the foundation for the details we provide, from what our business does and why, to target customers, financial projections, and employee plans. It’s the glue that ties the whole business story together.
Third Parties (Vendors, Consultants, etc.): As with our customers, our core values, purpose, long-term vision help us articulate the softer side of what we need from the third parties. It helps them understand what we expect and it also helps us decide who to work with. Not only do we want to encourage and support other businesses sharing our values, but it makes working together easier and more enjoyable.
You – the Business Owner/Leader: You have a burning vision for what you want your company to be. You know what it looks like and you believe you and your team can make it happen. The strategic plan is how you share what’s in your heart and mind. It’s the necessary tool for everyone to see what you see and feel what you feel. It paints the picture of your future and guides the initial steps to take you on your journey.
What’s the Answer? Do I Need It?
Consider the answers to these questions:
• Do I need to better align my team around common culture and goals vs. individuals working on their own priorities?
• Do I need a structure to communicate with my board, gain their input, and communicate progress on agreed upon goals vs. reacting to questions and changes in direction?
• Do I need common messages to consistently communicate with customers, vendors, financial supporters vs. scrambling to effectively describe who I am and who I do business with?
• Do I want to know when I have achieved measurable goals vs. chasing moving targets?
• Do I want to manage change vs. letting chaos manage me?
If you answered yes to any of the above, you would benefit from a documented and managed strategic plan. Other side effects typically include improved business outcomes, reduced stress, freed up time, better focus on what we do best, employee alignment, and—yes—more fun running your business!
Watch for related upcoming articles on:
• Strategic Planning: How Do I Get Started?
• Putting the Strategic Plan to Work
• Communication Planning
• Accountability Management
• Fractional Leadership: Can a Part-Time Leader Help Your Business?
Janet Gosche helps business leaders struggling with too many priorities by providing systems and tools to clearly define their business strategies and lead their teams to execute. Previously, Janet was a senior executive at Accenture, global practice lead at Avasant, and COO/CSO at cybersecurity firm JurInnov, where she focused on strategy, complex program management, vendor relationships, and organizational change. email@example.com 216-496-6658.