A misconception that I often resolve for clients is the belief that the tactical work of running their business automatically includes enough strategic thinking to keep everything moving in the right direction. Strategy is a whole activity unto itself, and business leaders must put specific effort and focus into it. Otherwise, they maintain only the most limited view of strategy while they concentrate on the tactical work. They don’t step back and look at the big picture until they realize that sales are way down, or a competitor has taken most of the market share. They missed opportunities to evolve and innovate because they were too busy with the present to plan for the future.
Carving out time for strategic planning is something that business owners and CEOs need to do intentionally. They need to schedule this time for themselves and for their leadership team. And each stakeholder must have time to engage in strategic thinking on their own as well as in collaboration with the team. Leaders should have an opportunity to do research as it relates to their role, attend conferences and trade shows about the future of the industry, and brainstorm with their department. These things don’t take away from the day to day work. They are vital to its continuation.
Strategy Informs Intentional Business Decisions
Successful business owners start with strategy, then apply the tactical steps to achieve the strategic goals. The difference between achieving success and maintaining or growing it then, is whether or not a leader tracks the progress on that strategy and recognizes a need for updates.
With a well-planned strategy in place from the start, business owners can get busy, and fast. The busy-ness sucks them into operations, and it takes a great effort to pull back and make new time for strategy. Unfortunately, what we often see is companies that get off to a great start, truly setting the pace for their industry. They stay at the top of their market for some time, and we take it for granted that they will maintain that position for decades. In reality, we have forgotten the brand names of dozens of once successful companies in just the last few decades. These companies lost sight of their need to strategize for continued success.
Business leaders do not need to implement every new and exciting technology, innovation, or business practice. But they absolutely need to be aware of it all and evaluate it for their purposes. Taking the luddite approach - noticing the existence of something new and promptly deciding it’s not for them - has sparked the beginning of the end for many businesses. When an industry disrupter comes along, and one always will, strategic thinkers commit resources to investigating it and how or if it fits into the company’s overall goals.
Not everything needs to be incorporated, but key leaders need to know why. More than that, the leadership team needs to have the language and confidence to adequately explain the choice to both their employees and their customers. For example, the decision not to employ new technology, framed in in strategic planning, might look a bit like this:
The CEO learns about the new technology from a personal contact, quickly recognizes its connection to the company’s industry, and directs the head of IT and head of production to explore it.
The department heads do independent research, review it with their managers, and reach out to industry contacts for more information.
The CEO meets with the head of Sales & Development to discuss how their competitors are implementing the technology and how it is changing the industry.
The CEO gets back together with all department heads assigned to the project and brings in the heads of Marketing and Finance. The report is that while the technology is interesting, it is likely to cause problems in their current production system, which would slow down delivery of the year’s key orders. However, competitors are starting to add it to their production lines, and it appears to be here to stay. The recommendation is that they plan to adopt the new technology within 3 years. This will give the company time to update their own systems while bugs and errors are cleared from the product.
A new committee is formed to strategize the upcoming changes, and all department heads roll out consistent messaging to their teams. The sales and marketing teams know how to answer customer inquiries about the technology, and they will keep an eye on the competitors who are using it in order to gain further insight.
Without strategy, the CEO may have ignored the technology, or may have implemented it without due diligence. In the former case, competitors will eventually knock them out of the market. In the latter, a buggy implementation could cost them their year’s biggest order and customer.
Be Intentional About Strategic Planning for Optimal Growth
Not every innovative idea comes from the top down like the one in my example. In fact, the best CEOs intentionally hire forward thinking leaders who will actively think about strategy and explore new opportunities. Strategy sessions are designed for brainstorming, planning for the future, growing the company’s overall value, and staying at the forefront of their industry.
Strategy is best done in collaboration with fellow leaders who have a range of perspectives. For the small business owner, strategic planning may require opening up to long-time employees or a dedicated mastermind group. In larger companies, it’s important to define strategic planning responsibilities and protocols for vice presidents and department heads.
Often, the biggest hurdle to strategic planning is simply making time for it. Trust me, your success literally depends on your commitment to this vital business practice. It is necessary to know what the market is doing in order to maintain your spot in it.
My strategic planning workshops are customized to the size of your business and leadership team. My goal is to take the fear out of strategy so that you can get a clear view of your industry and business, as well as their futures. Plan with confidence and intentional decisions through a professionally facilitated strategy workshop.
Are you ready to stop stalling and start strategizing? You might just be amazed at how easy it is to grow once you have a solid plan in place. Schedule a discovery call with me to learn more about how strategic thinking will help you innovate and evolve in your industry.
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