This article was translated from our Spanish edition using AI technologies. Errors may exist due to this process. Opinions expressed by Contractor the contributors are theirs.
2021 is over and, like every year, it is time to close our businesses to understand what worked, what did not work and so we can start the strategic planning of 2022. The challenge is to design a powerful but clear and simple strategic plan. plan that helps us chart the course of what we need to accomplish in the short, medium and long term.
To design a good plan, we need to understand what strategy is: the strategy is not “how are we going to do it”, but rather “what do we want to achieve?” Planning is often confused with execution.
Verne Harnish, author of the bestseller Scaling: how some companies do it … and why others don’t Divide strategy into “strategic thinking”, which defines everything you want to achieve with objectives, goals and indicators; and “execution planning”, that is, how it will be carried out. Planning is complex, and here are the most common mistakes business leaders make:
Error 1. Waiting for the start of the year to plan: it is best to anticipate up to a quarter beforehand and make adjustments during the execution of the plan. Hopefully, you might be way behind schedule and be exposed to conditions as to what you want to accomplish.
Mistake 2. Designing complex and elaborate plans: leaders have learned that strategy is something complex that requires large power point presentations when in fact it is something that needs to be communicated in a straightforward way so that any team member can understand and understand it. ‘run.
Mistake 3. Having different ideas about where you want to go: just like not knowing where to go, having different ideas about a goal causes you to lose focus and managers and employees are confused about where to direct their efforts.
Before you begin your strategic planning, I recommend that you ask yourself these key strategic questions:
- What’s the most important thing to improve your business in 2022?
- How are you going to develop this year (sales, margins, products, quality)?
- What is important to climb? (repair systems, acquire customers)
- What are the challenges you might face in your market or industry?
Once you are clear, now is the time to develop your strategic plan. Use specialized tools, my favorite is the one page strategic plan of the Scaling Up methodology as it allows you to define and land, in one page, your entire plan with your goal, objectives, goals, metrics (KPI), counters and managers.
Now let’s look at the elements that a good business plan should contain:
1. Objective or why of your organization: growing businesses know where they want to be for the next 10 to 20 years. It might seem crazy to think long term today, but it is crucial as it serves as a compass for everyone in the organization and, although chaos reigns and the road is constantly changing, your business will stay on course. goal.
A goal also helps keep your entire team motivated and aligned because everyone knows what to do to move their business forward in that direction. Brands that have a clear goal are 400% more profitable than those that don’t.
2. Objectives from 3 to 6 years: once you’ve established your long-term goal, you can set medium- and short-term goals to get closer to that big goal, with quantifiable brand promises for your customers (what you want to be recognized for) and with the main capabilities and key approaches your business needs to take during this time.
3. Objectives or results to be achieved over the next 12 months with “responsibilities by function”: That is, define who is responsible for what priority in your organization during the year so that they can be aligned and focused on results.
As Verne Harnish puts it: “If more than one person is responsible, then no one is responsible. Getting clear responsibilities is crucial, there must be a responsible person assigned to each cell within the organization.
4. Indicators and measuring instruments: “What isn’t measured cannot be improved”, therefore, having the right data in a timely manner with accurate metrics allows you to predict, make better decisions, correct, and resolve specific problems. Having the correct data will allow you to know the progress of each area and to adjust the course of what works and what does not.
5. Be aware of global trends: We’re not just talking about trends specific to your industry or region. The emergence of certain technologies and various social or political trends, like the one we experienced this year during the US-China trade war, are the types of global events that can affect your business; it is important to know them.
Don’t wait until you have a perfect plan that you could implement too late, start with a good plan and systematically improve it so that it becomes that great plan that you need to evolve in 2022.
Download your one-page strategic plan to start planning for a successful 2022 on the Growth Institute portal, get it here.