Get serious about strategy: Take your plan off the shelf

Planning is a challenge. More than once, clients have told me that the last time they asked their managers to update the strategic plan, the response sounded something like “... So by the time we finish the plan we will have already implemented all of its strategies,” or, “We did a plan a few years ago but haven’t really done anything with it.”

In fairness, developing a true strategic plan is no simple task. Too often, the strategic plan gets derailed because it evolves into a wish list or a retrospective evaluation. While there will certainly be consideration of both during the development stages, the strategic plan should ultimately identify (unique) strengths and (relevant) weaknesses that can provide insight about new opportunities or identify the causes of current problems.

Sounds fairly straightforward, and in a way it is. The tricky part is understanding that a plan takes time and focused energy to develop. And, a successful plan requires a commitment to implementation.

Perhaps the most important consideration is communication. Without effective and candid communication, it’s difficult to understand not only where you are, but also how to set clear and realistic goals to get you to your objective. Communication does not ensure success, but lack of effective communication almost guarantees failure.

Is strategic planning worthwhile? Most successful business leaders and organizations would respond with a resounding, “Yes!”

A typical source of confusion about strategic planning comes from lack of understanding. For a bit of a primer, consider the following:

- A business plan focuses on actions necessary to generate revenue and includes information about products, services, and the competitive environment.

- An operating plan is a directive that includes tasks and action steps to accomplish the goals of the strategic plan, generally identifying specific roles and timelines.

- The strategic plan is the tool that offers guidance in fulfilling the mission, which likely is profitably providing goods or services with which you are knowledgeable. (It’s OK to not be all things to all people.) Clearly articulated goals and action steps are important aspects.

- An implementation plan is akin to a user’s guide for the strategic plan.

The first step in developing a strategic plan is to have a clear view of external challenges and opportunities. Sometimes, as can be easily seen with technology, for example, one specific reality can provide both opportunity and challenge. As important as the external understanding is the internal insight. What are your limitations? Your strengths? Are you able to be objective and do some soul searching? A clear assessment provides the stepping-off point for determining the actual plan.

Again, communication is critical for gathering input from all stakeholder groups. Multiple owners, employees, service providers, and customers provide valuable insight. You need to hear from all groups that will be part of the plan’s implementation or subject to its effects. Another delicate point of navigation is that keeping the workgroup from becoming too large and bogged down, yet ensuring input from, and communication with, stakeholders. To accomplish this, it’s important to have a strong planning committee.

The planning group should include owners and senior company leaders, but beware. It is not healthy for these individuals to micromanage or become heavy-handed. Sharing responsibility is not only reasonable and more likely to engage others, but it also helps keep the project from getting bogged down. With so many aspects to consider, a team approach makes perfect sense, and we all know that good teams have leaders, not dictators.

Many times, a consultant is engaged not to delegate the project, but to provide experienced insight, help keep things on course, and maintain momentum. While outside assistance can be invaluable, it is up to the organization’s leadership to identify mission, vision, and values statements. Who else but leadership can 

answer the fundamental questions, “What do we do?” “Where do we want to be?” and “What do we believe in?”

A plan on the closet shelf is not effective, so take some time to consider these questions and whether you are ready to get serious about strategy.        

Gail Kinsella is a partner in the Syracuse office of The Bonadio Group accounting firm. Contact Kinsella at gkinsella@bonadio.com

Planning is a challenge. More than once, clients have told me that the last time they asked their managers to update the strategic plan, the response sounded something like “... So by the time we finish the plan we will have already implemented all of its strategies,” or, “We did a plan a few years ago but haven’t really done anything with it.”

In fairness, developing a true strategic plan is no simple task. Too often, the strategic plan gets derailed because it evolves into a wish list or a retrospective evaluation. While there will certainly be consideration of both during the development stages, the strategic plan should ultimately identify (unique) strengths and (relevant) weaknesses that can provide insight about new opportunities or identify the causes of current problems.

Sounds fairly straightforward, and in a way it is. The tricky part is understanding that a plan takes time and focused energy to develop. And, a successful plan requires a commitment to implementation.

Perhaps the most important consideration is communication. Without effective and candid communication, it’s difficult to understand not only where you are, but also how to set clear and realistic goals to get you to your objective. Communication does not ensure success, but lack of effective communication almost guarantees failure.

Is strategic planning worthwhile? Most successful business leaders and organizations would respond with a resounding, “Yes!”

A typical source of confusion about strategic planning comes from lack of understanding. For a bit of a primer, consider the following:

- A business plan focuses on actions necessary to generate revenue and includes information about products, services, and the competitive environment.

- An operating plan is a directive that includes tasks and action steps to accomplish the goals of the strategic plan, generally identifying specific roles and timelines.

- The strategic plan is the tool that offers guidance in fulfilling the mission, which likely is profitably providing goods or services with which you are knowledgeable. (It’s OK to not be all things to all people.) Clearly articulated goals and action steps are important aspects.

- An implementation plan is akin to a user’s guide for the strategic plan.

The first step in developing a strategic plan is to have a clear view of external challenges and opportunities. Sometimes, as can be easily seen with technology, for example, one specific reality can provide both opportunity and challenge. As important as the external understanding is the internal insight. What are your limitations? Your strengths? Are you able to be objective and do some soul searching? A clear assessment provides the stepping-off point for determining the actual plan.

Again, communication is critical for gathering input from all stakeholder groups. Multiple owners, employees, service providers, and customers provide valuable insight. You need to hear from all groups that will be part of the plan’s implementation or subject to its effects. Another delicate point of navigation is that keeping the workgroup from becoming too large and bogged down, yet ensuring input from, and communication with, stakeholders. To accomplish this, it’s important to have a strong planning committee.

The planning group should include owners and senior company leaders, but beware. It is not healthy for these individuals to micromanage or become heavy-handed. Sharing responsibility is not only reasonable and more likely to engage others, but it also helps keep the project from getting bogged down. With so many aspects to consider, a team approach makes perfect sense, and we all know that good teams have leaders, not dictators.

Many times, a consultant is engaged not to delegate the project, but to provide experienced insight, help keep things on course, and maintain momentum. While outside assistance can be invaluable, it is up to the organization’s leadership to identify mission, vision, and values statements. Who else but leadership can 

answer the fundamental questions, “What do we do?” “Where do we want to be?” and “What do we believe in?”

A plan on the closet shelf is not effective, so take some time to consider these questions and whether you are ready to get serious about strategy.        

Gail Kinsella is a partner in the Syracuse office of The Bonadio Group accounting firm. Contact Kinsella at gkinsella@bonadio.com