Steps to Strategic Planning

1. What is the most important thing to you about being in business?

All strategic planning processes need to identify for each owner what is the most important thing for them.  What gets you out of bed in the morning?  It is a high quality question to ask.  It will be at the centre of all you plan for. 

Your strategic plan should plan for what you really want, not what you need or others tell you what you need to do.

2. Being different is more important than being better

All businesses spend a lot of time and energy trying to 'be better' than the rest.  The problem is many businesses are trying in the same way!  Standing out from the crowd by being different is easier than being better.  In your strategic planning process you will focus upon these aspects of planning for what you really want.

3. Ask 'what you really want' not 'why' or 'why not'

Don't get stuck in the 'paralysis of analysis'!  This generally gets people stuck in negative thought processes with the focus upon perceived barriers.  External factors are often real barriers you can do nothing about changing.  Internal perceived barriers can be overcome if you collectively choose to do so.  Take your strategic planning discussion to a high level.  Don't descend into the devil of the detail!

4. Ask the right questions of the right people to get the right answers

The only people who really know what you want for your business are you the owners.  You are the right people!  It is important to ask the right questions.  The key to a successful strategic planning session is to ask the right questions.  This is fundamental to success. 

5. The power of facilitation

The only way to ask the right questions of the right people is if the person asking is not an owner or interested party.  In our experience trying to facilitate your own strategic planning session simply does not work.  By definition you cannot facilitate and participate at the same time.  Why would you not want to participate in your own future?  Quality facilitation is about asking skilled and well positioned questions, listening and keeping things on track.

6. All owners should attend and no-one else

The only people who should attend a strategic planning session for your business are the owners and your facilitator.  No-one else at all.  You will need to feel free to be frank, honest and focused.  All owners need to be present or else there is a real danger of diluting collective buy-in.  Collective buy-in is one of the major benefits of a strategic planning session for your business.  You can then cascade down your strategy once established.

7. Strategic planning is for a rolling five years

Although your strategic plan will be for the next five years, with a view to beyond, the whole planning process is a rolling approach.  In one year's time you will need to review your progress and hold another full planning session, maintaining that feeling of being in control.  In life things don't stand still.  Continuous planning facilitates an on-going focus upon what you really want.

8. Hold your session away from the office

For a free-flowing and focused session you need no interruptions.  Equally you need clear thinking owners, not people distracted by problems in the owner's premises.  Turn off mobile phones and hold your session away from the office.  A quality environment encourages the best approach to what is a very important day.  Give your business the luxury it deserves!

9. Simplify your marketing strategy

The key to success is simplicity.  In your session focus upon three types of marketing stragtegy choices:

  • 'Niche client' focused and with a small numer of clients and where the Pareto 80:20 principle normally applies
  • Total market focused where you sell to anybody
  • Client market sector focused

Identify your strategy now and choose a strategy for the future with greater focus.

10. Identify and target your market sectors

In your strategic planning session you will review the market sectors you currently trade with and set targets going forward for growth in turnover.  Your targets then become very specific and clear.  Simply identifying market sectors is a powerful benefit to your business.  Your facilitator should ensure you only have SMARTER goals.

11. Product and service strategy

Once you know which market sectors you want to concentrate on and market to, the next step is to decide on your product and service strategy.  How will you increase revenue to each of these sectors?  Decide upon which product and service lines to market to which sector.  Be clear and specific.

12. Focus on three simple Key Performance Factors (KPFs)

In your session you may simply focus upon three simple KPFs:

  1. Retain the customers you want
  2. Increase the annual spend of customers, sector by sector
  3. Gain the new customers you want

Your session will focus upon the targeting and monitoring of these three simple KPFs.

13. Structure is vital

Your strategic planning session must be structured.  That is structured in its recording and structured in its questions and approaches  Without structure you are likely to have a chaotic session and lose your way somewhat.  A good and experienced facilitator will keep you on course.  This is vital.

14. You must have a written plan with actions

Your strategic plan will be your blueprint plan covering the next five years and until the next review.  Therefore, it needs to be in writing and a clear and comprehensive record of your strategic plannning session.  It is not a report!  It is your business's strategic plan! 

Actions always need to follow planning.  Your plan should include an action plan with timed completion dates and responsibilities.  The next step will be to review your progress.