Strategic Planning – One Size Does Not Fit All

Strategic Planning – One Size Does Not Fit All

Highlights by David Willden

Strategic planning means different things to different people and organizations. Some organizations are data intensive and highly analytical. Others are more creative and artistic. Often a combination of analysis and creativity can benefit the organization. There are several factors that can guide companies in deciding what model will best work for them.

More mature companies with competitive markets will use a more analytic approach to assessments and plans to gain an advantage. Companies in newer marketplaces will often use a creative approach. The best companies leverage the advantages of the scientific and creative methods.

Factors to Consider When Defining Your Approach

The key is to define a strategic planning approach that works best for your company and market. Factors to consider in designing your strategic planning approach include:

  • Culture of your organization
  • Corporate governance structure
  • Size of your firm
  • The amount of new product development your firm invests in
  • The volatility of the market(s) your firm competes in
  • The level of long-term capital investment your firm has made

Each of these points merit a discussion – which will likely be forthcoming.

Develop a Culture that Executes Well

Most strategies fail because of poor execution. So, this topic needs to be a priority focus. A key reason for this is a lack of an appropriate performance management based culture. Developing a high performance, highly motivated culture needs to be a top priority. Ego, poor leadership, favoritism, fear, dishonesty, and a lack of accountability are some possible underlying issues.

The strategy development and planning process can be tide to review previous targets, identify key reasons for gaps, and to set new performance goals. A key is to pay the price to develop sound performance indicators, to monitor progress regularly and to continually address issues so that the targets can be achieved.

Internal and external indicators should be in place. Internal indicators help to monitor those critical activities needed to achieve the targets. External indicators monitor factors outside of your organization that could impact your short and long-term goals. The ideal is to find factors that provide you the greatest lead time and are most reliable.

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Strategic Planning – One Size Does Not Fit All

Strategic Planning – One Size Does Not Fit All