Contrary to popular belief, it’s not that difficult to come up with a strategic plan for business growth. While the name itself might be intimidating, strategic planning is nothing more than matching objectives and goals to strategies and company resources. Now, this is not meant to imply that the entire process is easy. What it does mean is that the concept is easy to grasp, but the application and success is far more difficult to attain. For businesses looking to grow through strategic planning, what must it involve?
Strategic Planning Advances Objectives
Central to strategic planning, is the incorporation of a company wide goal or objective. Where does a company want to be in 1, 5 or even 10 years? What level of sales does the company want to attain during these periods? Where is the market headed, and how will the business be a part of that market? Will it be a market leader or market follower, or both? Companies must first answer these questions before determining their overall goals and objectives. However, these objectives are essential to laying the groundwork for future planning initiatives.
Link Objectives and Goals to Strategy
After determining the goals for business growth, the next step is to determine the strategies needed to accomplish these objectives. For the company that wants to increase its sales 20%, year over year, what are the strategies that would be needed to accomplish this? Well, perhaps the company might see increased marketing efforts as a way to achieve this goal. Perhaps selling complimentary products into similar industries will help. What about making a concerted effort to pursue those less than credit worthy accounts every company avoids? There are a number of strategies that can be used to break down the objective into manageable parts.
Link Strategies to Resources
Coming up with the strategies for business growth is one thing, but putting those plans into action, is something else entirely. Who will be responsible for increasing those marketing efforts, and selling complementary products into other industries? What role will engineering and design, in addition to manufacturing, play? Can they be counted on to come up with new product designs addressing market needs? Linking strategies to a company’s resources is what puts the emphasis behind strategic planning.
Measure Results and Change Accordingly
Throughout this process, each of these milestones involves reflection. The company must be able to measure the success or failure of their results, and be willing to make changes in their strategies. That 10 year plan will involve yearly and quarterly benchmarks where progress, or lack there of, will be assessed. Milestones are essential to review the process and make appropriate changes.
The concept is not a difficult one. However, the execution, follow through, and commitment, is what separates those companies that are successful with their initiatives, from those who aren’t. It requires an understanding that failure will occur, and that learning from failure, will ultimately lead to success. Be sure to measure results and review approaches. Doing so will allow companies to stay focused on the ultimate goal of business growth.
Ian Johnson - I currently run a business blog called www.driveyoursuccess.com. I have over 15 years consulting experience in production cell management, ...
