March 28, 2007

“Long range planning does not deal with future decisions, but the future of present decisions.”

Peter Drucker
 

How to Guide: Making strategy a habit 

Your success takes planning

Did you know that having a strategic plan is the best way to bring focus and direction to your organization AND drive growth at the same time? According to a recent study by M3 Planning, a nationwide leader in on-demand strategic planning services, businesses that use strategic planning are 12 percent more profitable. The results from the 2006 M3 Planning Strategy Benchmark of 280 firms in the United States found that by just adding strategic planning to a business’ activities, organizations can experience an increase in net profit. Those firms whose top management had a high commitment to execute strategic planning reported an 80 percent increase in sales volume during that year, and firms whose top management had a lower commitment reported a 59 percent increase. (For more information or to view full results see the report.)

It's important to stress here that successful strategic planning is a continuous process. It isn't just a one-time event; you need to make it a habit. It's easy to get lost in the process, especially when you're also in the middle of your organizations' everyday operations, and in the coming weeks we'll share some suggestions that should help you embed successful strategic planning concepts into your organization. >> read more

 
Articulating your mission and vision

In addition to strategic planning being a continuous process – something that you need to make a habit - the process is also circular as opposed to linear.

The requisite starting point is your mission statement. A mission statement, we all know, is a statement of your company’s purpose or its fundamental reason for existing, but it should also serve as both a guide for day-to-day operations and the foundation for future decision-making. In other words, it should determine your primary business and organization purpose AND be the roadmap in a strategic plan to empower your employees to be more effective. It should be specific, short, sharply focused, and memorable. The mission statement of Olsen & Associates Public Relations is “Dedicated to improving and optimizing public perceptions on behalf of our clients.” If the company doesn’t live up to this mission, it has no reason to exist.

You should think beyond bullet points on a memo or a posting on the break room wall. Instead, think of your mission statement as the primary guideline for leading your organization to higher levels of performance. It should provide the framework for independent decisions and actions initiated by departments, managers, and employees into a coordinated, company-wide game plan.

Your vision, likewise, should provide long-term direction while it delineates what kind of enterprise your company is trying to become and infuses the organization with a sense of purposeful action. Identify your corporate values. Create an image of what success will look like. Your vision statement needs to be something you can achieve at some point in the future while also serving as a unifying focal point for everyone in the organization – like a North Star. Develop one that’s far reaching but attainable. A vision statement can be as far reaching as 100 years or as short as five. It just needs to work for your company and the industry in which you operate.

Here are two examples of visions that were very lofty at the time they were established, but they don’t sound so crazy now:

  • “We will put a man on the moon before the end of the decade and bring him back” (President John F Kennedy)
  • “A computer on every desk and in every home using great software as an empowering tool” (Microsoft)

Together the mission and vision statements function to clarify why your organization exists and what the end game is. In this way, your mission and vision should drive every action and initiative on the road to where you are going and provide a constant reference point to keep your strategic plan on track.

Stay tuned to future newsletters as we continue with the Strategic Planning Process Checklist to keep you and your team on track while also making the strategic planning process a habit. Next time we’ll discuss your strategic position and priorities. Remember to keep in mind that success is not a matter of chance, but rather success is a matter of choice.



Case Studies: Transition Dynamics Enterprises

Transition Dynamics Enterprises’ mission is to give people the hope, insight, and direction they need to use their transitions as catalysts to create a life that truly works for them. Through a strategic planning effort, the owner of this San Francisco-based business shifted her strategy from focusing on public and retail sales to working with coaches, therapists and counselors. She trains and licenses these professionals to use transition programs in their work with clients who are changing careers and changing their lives. Because of this strategy shift, the company has doubled its revenue from 2005 to 2006 and that is just the beginning of her growth curve.



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