Strategic Planning for Smarties

I was tempted to use "Dummies" in my headline but the reality is that there is nothing dumb about a small business owner doing strategic planning. It may be the most intelligent leadership activity any business owner takes charge of within his/her business.

I have been involved in strategic planning for over fifteen years as a participant, as a business leader, and as a group facilitator. I get asked a variety of Smart questions about the strategic planning process frequently. Here is a sampling of those question and my responses.

What is the purpose of Strategic Planning?

The purpose of the strategic planning process is to provide focus, direction, and purpose to the operation of the business entity. In the strategic planning process, three questions are answered: Where are we now? Where are we going? How do we get there?

The process is very similar to that of planning a trip. Before you plan a trip to an unknown destination, you must first have a very thorough understanding of your starting point. You must also take an accounting of past trips and recall what went well and what didn't go well. Next you determine your destination. Where is it that you want to finish your trip? You would consider the purpose of the trip. You would establish objectives for this excursion with specific, measurable goals. Finally, with your starting place and destination in mind you are well-positioned to map out exactly how you will get from start to finish with clear strategies and specific tactics in mind.

When should the Strategic Planning Process take place?

I suggest that you should begin your planning process in the fourth quarter of your business year. Have the plan ready prior to the start of the new fiscal year. Than you should edit the plan quarterly and review it monthly.

Who should be involved in the Strategic Planning process?

All key stakeholders in the business. This would include ownership, management, and employee representation. Some organizations will also include representatives from their customers and suppliers as well. It is important that you get viewpoints from all levels of the organization. This helps bring a broad perspective to the plan and also insures a high level of commitment to the plan as well.

Isn't there a danger in having employees involved in the planning process?

Now that is a "dummy" question. There is only danger in not involving employees in the process.

Where should the planning process take place?

I recommend that groups go off-site for their initial planning retreat. It is important that you capture the uninterrupted attention of each participant and that is made easier if they are working outside of the office. I have used hotel conference rooms, executive meeting rooms, and even individual's homes for these events in the past.

Should we use an outside consultant to facilitate the planning session?

Yes. An outsider gives you someone that is not caught up in the politics of the organization. He/she can be focused on maximizing the participation of the group members and minimizing discussion on topics not relevant to the planning process. Look for someone with strong facilitation skills and an extensive business background.

What is the most effective way to conduct the initial situational analysis?

I recommend a thorough SWOT analysis. Start off by brainstorming the strengths (S) and weaknesses (W) of the organization as it exists at that time. These are internal factors that you have some level of control over. Next, the group will identify the opportunities (O) and threats (T) that the business faces. These are external factors that the organization has little or no control over but must recognize because it will be impacted in some fashion by each one.

What should we end up with when we are done with the planning process?

After one or more sessions and some amount of follow-up discussions and analysis, you should end up with a strategic plan that includes the following components:
. A corporate vision and mission statement
. A set of long-term (3-5 year) strategic objectives
. A one-year action plan with 3-5 measurable goals accompanied by specific strategies and action steps. Each strategy should have an individual assigned to it who is responsible for its achievement and a reasonable completion date.

Two of the biggest mistakes that organizations make in strategic planning happen after the planning process is completed. They have a great action plan with all the components I have described above. Next they decide to conceal the plan from their employees for fear that they may discover what the business is planning to do in the upcoming year. This is like throwing the kids in the car for the annual summer vacation and not telling them where you are going and assuming that they will enjoy the trip.

The second big mistake is completing the plan and than filing it for safekeeping until next year's planning meeting. It never sees the light of day. No quarterly edits. No monthly review. Big waste of time.

Be SMART about your strategic planning this year for your business. Start early. Be inclusive. No sacred cows. Communicate the plan when it is completed to all of your key stakeholders. Make the plan a living document with regular reviews and timely edits when necessary. You will be amazed by the results!

"If you fail to plan, you can plan on failing."

About the Author

Tim Fulton
TCF Business Development
(770) 350-9088

Tim Fulton is a nationally recognized entrepreneurial consultant and management trainer. He is also a very popular public speaker.

timfulton@hotmail.com
http://www.tcfwa.com