Last month, I published a piece on the importance of strategy, and outlined some great reads for those who are interested in learning more.
Now, I want to build on that piece by discussing strategic planning, which is a deliberate process of defining goals, allocating resources, and conceiving actions to achieve long-term objectives.
Strategic planning is commonly used in business, but can also be applicable in any situation that involves bridging the gap between a current state and a desired future.
I have been lucky to involve myself in the strategic planning processes of many organizations, but unfortunately, very few were effective. According to Inc.com, a whopping 67% of strategic plans fail. Meeting forward-thinking and proactive people who are motivated by the big-picture is rare.
Like all rare commodities, effective strategy is valuable, and based off my own experiences, necessary to all aspects of life (as goes the old saying “If You Fail to Plan, You Plan to Fail”).
For those who are interested in designing effective strategic plans for themselves or for their organizations, here are five keys to success.
About one third of the strategic planing process should be research
I have clocked in quite a bit of time in rooms filled with individuals crafting graphs, dissecting scoreboards, and engaging in discussions that lack real substance. Striking the right balance is crucial—you do not want to be stuck in perpetual research mode, but it is equally important to develop expertise. Ways to engage in effective research include: learning directly from individuals who have achieved desirable successes, delving into reputable books on the topics at hand, and exploring the intricacies of your specific situation or organizational approach.
Strategic planning is a process not a destination
Once a strategic plan is complete, the temptation is to shelve it and forget about it; likewise, treating it as unchanging and akin to a divine decree is also harmful when circumstances change. Successful strategic planning involves continuous identification of patterns, recognition of key themes, and setting a flexible vision for the future.
If one third of strategic planning is research, another third should be consistent review and evaluation. While this may sound excessive, continual reflection is the only way to guarantee success. Regularly conduct progress reviews, and do not use them as an opportunity to merely check-off a box. Put meaningful work into a review, and write down new goals; so long as the overarching vision is consistent do not be afraid to make changes.
Clarity Clarity Clarity
If you are working on a team, a strategy is ineffective if it is incomprehensible. Likewise, if you are setting a personal goal and you do not succeed, you must see clearly what went wrong. Set simple goals that are easy to understand, so when circumstances change you can keep the overall strategy while adapting tactics.
One effective way to keep clarity is to minimise repetition. Whether it is personal notes in different places, or different teams with different understandings, it is crucial to centralize all information. Repetition increases the likelihood of misinterpretation. Guarantee clarity by storing all writing in the same folder, within the same room, and assigning consistent reporting responsibilities to the same individuals. This approach eliminates confusion and ensures seamless communication.
Avoid Numerical Targets
Point four might be controversial because setting numerical targets is tempting—whether it is aiming to boost the revenue of a department by 20% or finishing a project by October 31st. However, the reality is that numbers can often be a red herring because they undermine the process.
Why fixate on completing something by October 31st when there is no discernible difference between November 1st or October 30th? Targets should be continuous and not tied to a specific or arbitrary point in time.
Additionally, setting a numerical target often incentives loopholes. For instance, it might seem like a fair and reasonable goal to increase social media followers on an account from 100 to 120; however, if the approach involves having friends artificially inflate the numbers, it is counterproductive. Eventually, you will exhaust your friend pool, and the growth will remain stagnant.
Instead, shift the focus to results rather than numerical milestones. Numbers can fluctuate and may prove unnecessary. Consider the ultimate objective—is it increased engagement, more sales, or impact? Keep the goals broad and the numbers minimal. Only employ numerical targets when truly necessary.
Accountability is Paramount
Honesty is not just a personal trait, but a key for success. Acknowledging deviations from the strategic plan requires humility. Some organizations, grappling with insecurities, retroactively shift goalposts, blurring the lines between intentions and results. They put victories in their annual report that were not in their strategic plan and vice versa. Admit your mistakes, because they are not fatal when you learn from them.
All strategic plans should include data capture, and test the results of an action against its original intents. Despite appearing contradictory to the earlier point about avoiding numerical targets, it is important to note that the methods of data capture can be subjective or broad, as long as they are consistent their original criteria.
The factors contributing to ineffective strategic plans are diverse. Each of these five ideas helps to addresses common reasons behind failures, which primarily stem from a disconnect between process and execution, and an emphasis on style over substance.
Disconnected strategic plans often arise from insufficient accountability, a lack of research and review, and arbitrary target setting. Opting for style over substance manifests in overly complex planning, leading to a loss of clarity and resistance to internal execution.
Yet, perhaps most importantly, a strategic plan needs to be oriented towards action. Even a well-crafted strategic plan, without a genuine motivation to get things done is useless.
In closing, keep in mind that the people who write the strategic plan are the ones bringing it to life. A strategic plan can enhance the effectiveness of your efforts, but it is not a shortcut to make things easier; everything worthwhile demands hard work. Surround yourself with a stellar team, prioritize self-care, and the magic will unfold organically.
Dakota McGovern 