Strategy Time
by Colin Linke on 11/01/10 at 3:07 pm
With the New Year here it is now time to review your strategic plan and the associated budget that underlies the year ahead.
First, lets look at a quick set of definitions to clarify what I am talking about.
- Strategic Plan – this is a very high level look at what you want to achieve form your business. There are no specifics just statements and directions that need to be made. I try to keep this is pictorial form which shows in a snapshot the things that are important to the business. An example will be available next week after we review a few more steps in the process over the next couple of posts.
- Business plan – this is a 3 to 4 page document which details the key steps to achieving the goals of the Strategic Plan. You can go on forever with these but my plans include the following headings which we work through:
1. Executive Summary – what will be achieved.
2. SWOT Analysis – this is the section where you look at what you are good at what you are bad at, what potential is there and what can stop it all in its tracks.
3. Marketing Strategy – how you will sell your products/services.
4. Competitor analysis – who should we be watching.
5. New product/service delivery – anything that changes the offering.
- Budget – the financial implications of your strategic and business plan.
I usually keep the strategic and business plans to 1 page. Why – because that is the most that you can successfully work with as it summaries the directions into a picture format. There are specific sections for each area and they are short sharp key points that allow you to focus on getting the results. There is normally an expanded document that underlies the operational aspects of the plans but this depends on what is required. Usually the plans create a set of projects that must be worked on throughout the year to ensure success.
Once you have created the SP and BP then really you just need to review them throughout the year. It is critical that you review your success against the predictions that you made and fine tune it all with anything new that comes out and requires attention or consideration.
The New Year is a perfect time to look at each of these plans and ensure that they are moving in the right direction. I will put up a template for a business plan and strategic plan called a Strategy map on Thursday and we will then look at the appropriate steps required for a budget.
Planning is a critical phase of your business’ operations. Yes I can point you all to the research showing that businesses that plan are more successful. In my experience it is true because it sets a benchmark and target that people try to surpass. People are competitive beasts and when you sit down and put in paper the expectations it is amazing how people succeed at delivering.
If you haven’t done any of this before then take some time and work through the template and see what happens – you never know it may actually be rewarding!
