Most successful small businesses owe their growth and success in large part to use of strategy and strategic planning. This is accomplished through a combination of strategic thinking, planning and management. Adopting a strategic approach to business operations clearly defines the direction a firm needs to take to achieve leadership’s vision of success.
So, exactly what is this concept called Strategic Planning? It is an organized system that begins with envisioning the firm as it will be when it is all grown up. That Vision of your company in its long-term ideal state is further defined in terms of its Mission. In a few sentences, a mission statement clearly addresses every facet of your business: your products and services, pricing, quality, service, marketplace position, growth potential, and use of technology. Further, it addresses relationships with your customers, employees, suppliers, competitors and the community.
Once your company Vision and Mission have been clearly defined, it is time to declare how you intend to achieve them. You have arrived at the ‘plot our road map’ phase of the strategic planning process. At this point, it is up to company leaders to define that long-term road map through prioritized goals and objectives. These parts of the plan identify specific steps that to move the company toward its ideal Vision. Then, clarification on how the plan will proceed is defined through detailed strategies and tactics. These clarify the implementation end of the plan.
Five ‘Truths’ about Strategy and Strategic Planning
- Strategic Planning is not just an annual event. It is not ‘over and done’. Strategic planning is not a one-shot deal. The process is a day-to-day, week-by-week way of life for successful businesses.
- Strategic Thinking is the foundation of a strong strategic planning process. Being constantly alert to changes occurring in the marketplace and how they can affect your businesses is important.
- Strategic Management is the continuous planning process, from year to year. The actual planning retreat or event is only one part of the process. To keep your firm moving constantly forward, routine monitoring and analysis systems are necessary to assure the company stays on track.
- Continuing to travel on a flawed path will not take your firm in a direction that will result in success. Sometimes a strategy no longer provides the desired results. If that is the case, it then needs further analysis and review with new thinking and perhaps a new direction.
- A good strategic plan is one that allows for flexibility and change. Remain nimble. The world around us is constantly changing. Some change will be good, some will not. Planners need to be aware of the world’s changing dynamic. They need to be ready to adapt to changes that affect their business and redirect their focus as necessary.
Addressing Strategy on Strategic Planning Needs to Start Now
If your small business leaders have not yet adopted strategic planning and thinking as key processes, it is time to get serious about it. Without these processes to put your firm on a focused path toward success, opportunities for growth will pass by you.
There is nothing like staying aware of changes happening in the world around you to significantly affect how you do business. It is important to be aware of change. Some changes in certain areas can work in your favor. Other changes can seriously impede your efforts. Knowing what changes are out there and how to adapt to them helps to keep your staff on track. Knowing what next moves will be can put your firm closer to achieving the success that you envisioned.
