Many entrepreneurs think strategic planning is something that is meant for big companies or very big businesses, but that is a very wrong perspective.
So let’s start from the beginning… What is a strategic plan?
Simply
put, a strategic plan is a written document that points your business towards
the right path by assessing where you are, defining where you’re going and how
you will get there.
Strategic
planning is the process of doing this, and it helps businesses develop the
right goals and targets, and helps everyone focus their efforts on meeting
them.
Not
having a strategic plan is like embarking on a journey without knowing the
right direction to take you to your destination.
In this article, we will show you the most common mistakes entrepreneurs make, so you can avoid them, or fix them is you are guilty.
Here we go:
1. Unmeasurable Goals
Goals without clear key performance indicators are like baking bread without measuring cups. If you set a goal to ‘make more money’ or ‘satisfy customers’, that’s hard to measure and in fact, can set you up for failure. Instead, set SMART goals. SMART is an acronym for Specific, Measureable, Attainable, Relevant, and Time-bound.
The best way to create SMART goals is to look at your previous data and figure out what numbers align with your past successes and failures. Take your time to define measurable numbers, how you will monitor progress, and dates to review and reassess.
2. Poor Communication of The Strategy
Having a strategy that only
exists in your head does not count. Attaching your plans in an email and
sending it out to all your employees daily doesn’t guarantee strategy
execution.
Your team needs to see the
big picture and understand their responsibility in line with executing the
strategy. Set aside some time to document the strategy and then schedule a
strategic planning meeting where everyone contributes to the process and truly
understands how things should align.
Afterward, use the best
communication channels that work for your team to continue engaging and
tracking progress as earlier defined.
3. Complex and Ambiguous
A 300- page document sitting
on a table in the CEO’s office does not necessarily mean an effective strategy.
Often, the best strategic
plan is the simplest because it makes the operational planning and
implementation process easier. Moreover, your employees have better tasks to do
than to spend their time trying to interpret what role they should play within
the complex strategy. The clauses in your strategic plan should be actionable,
with the roles of each department easily stated and perfectly understood.
4. The Plan Ignores Current Problems
If a planning process
ignores existing problems, there will be a bottleneck down the road. Existing
problems are burdens that prevent a speedy and effective response to
opportunities.
That is why you need to sort
out the present issues before planning for the future.
Always encourage your team
to try to document the trouble spots in real-time. During the planning process,
take a long, hard look at the challenges and obstacles that negatively affect
productivity and efficiency.
Be sure to monitor the
status of all your initiatives and regularly review the progress commentaries
provided by employees. By coming to terms with, and working through your
current problems first, you can better lay the groundwork for success with your
new strategic initiatives now and in the future.
Has you company ever done strategic planning?
If yes, was it effective in guiding you to
your desired results?
If no, do you see the value, and is it something you are considering?
For the past 5+ years, we have helped several organizations like yours create strategic plans to increase their revenues and impact.
Let us discuss how we might be able to
help yours achieve your goals faster and with fewer resources. Email us
at contact@hillbridgeconsulting.com or call (+234)9078751351 or (+234)9030009886 for
more information