You’ve just survived another hectic week. It seems that every time you turned around, there was another question to answer, crisis to attend to, emergency task to be dealt with or another competitor driving his or her mower into your market area. Welcome to planet Business; not just the world of small business but of all business.
As you reflect on your past week and years in business, you should begin to see some similarities and patterns, and recognize that many weeks were just as demanding. You ask yourself if there is any way to break out of the cycle? How can I gain control of my business, rather than the business controlling me?
With strategic planning you can take back control of your life and your business. Become proactive in all of your business practices, instead of being reactive to business situations and problems.
GET A TEAM. Start by taking your strategic planning team away from the office. By the way, your team should consist of the “thinkers and doers” in each division of your company, not just upper management. Strategic planning is best done in a place that promotes thinking and is away from all of the day-to-day distractions of phone calls and office visitors. To start the strategic planning process you need to become:
- Focused
- Organized
- Innovative
- A good planner
- A good listener
- Visionary in your thinking
- Resourceful
- A calculated risk taker
Regardless of size, longevity, or success level, a company should periodically take time to rethink its operations. Only by objectively reviewing your operations can you either reaffirm that your current courses of action are correct to get the company to its goal or identify areas or issues that require fine tuning or corrective action.
WHAT IS STRATEGIC PLANNING? A strategic plan is a written document describing the direction you want your company to take – your vision of its future position and value. It is a means for planning future growth and profitability. It is key to the overall management process. Some people believe that strategic planning is a tool for big business only. On the contrary, strategic planning is especially important for the little companies that as small businesses are extremely vulnerable to the smallest changes in the marketplace. Changes in customers, new moves by competitors or changes in the overall business environment can directly impact your company and cash flow instantaneously. Negative impacts on your company, if not anticipated and adjusted for, can force you to close your doors. That’s exactly why you need to plan for you future. You need to anticipate what the future holds and adjust your thinking and actions to compensate for any potential negative impacts.
| The Strategic Management Model | |
| Here’s a strategic planning model that will help guide your company toward its vision: | |
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1. Do an environmental analysis
2. Determine the mission, values and vision 3. Identify the organization’s problems 4. Clarify the responsibilities for each individual & develop an appropriate organizational structure. 5. Prioritize
6. Determine the long-run goals for the organization, each unit and each individual. 7. Develop plans to achieve the long-run goals. 8. Determine the short-run objectives for the organization, each unit and each individual. 9. Determine the policies for the organization and each unit to achieve the short-run objectives.
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10. Grant each individual specific, clear-cut authority to achieve their goals and objectives. 11. Determine the controls for:
12. Develop each individual to gradually handle increasingly complex responsibilities 13. Develop Teamwork
14. Participate with both individuals and teams before making decisions (“actively listen”) 15. Provide training on a regular basis (technical, managerial and supervisory). 16. Support your people with the proper tools, equipment & staff. 17. Select capable individuals and teams to handle the various responsibilities. 18. Reward and discipline based on performance
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The goal of strategic planning is to help you get more and better customers. Through an increased customer base, composed of more profitable customers, you will be able to grow your business.
A strategic plan is:
- A specific and written document of your vision for the company. The plan should address:
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- customers
- competitors
- suppliers
- investors
- employees
- succession issues
- operations
- mergers & acquisitions
- ancillary services
- strategic alliances/partnerships
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- A means for developing commitment among leadership and coworkers, and other individuals and firms associated with your business.
- A success mechanism via a framework of strategic thinking and vision that guides all other decisions in the firm.
A strategic plan should not be:
- Wishful thinking
- Done only by the owner and top manager
- Secretive
A strategic plan requires:
- Commitment by the business owner/management team
- Communication to all
- Buy-in from all coworkers
- Honest evaluation of the current position & history of the business
Strategic planning will take commitment. The motivation to dedicate the time and effort must come from the very top of the company. If you want your company to be all it can be, strategic planning will help you accomplish that.
It is not a one-time event. It is an ongoing process. Therefore, you will make choices at a point in time based on the best information available. That doesn’t mean that alternate options are rejected ad infinitum. If you find that conditions change or new information becomes available, you reevaluate and move forward again.
The strategic planning process is about progress and changes. Progress sometimes involves two steps forward and one step back. There is nothing wrong with that. Remember, strategic planning builds a vision of the future – a vision of what you want your company to be. If you believe you are too small for strategic planning and approach business in that manner, in all likelihood, you will remain small.
All business activities involve risk. Strategic planning is no exception. The risk, though, is a calculated one, and, as such, is minimized. Your decisions are based on knowledge, not assumptions or intuition. If you can afford to stay where you are, do so. If not, start the strategic planning today…hopefully it’s not too late.
The author is director of marketing and sales for LandCare USA, Houston, Texas.
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