Caleb deep dives into strategic planning for your business. You wont learn this on youtube so bring a notebook and enjoy the show.
1 - What is strategic planning?
- Creating a FRAMEWORK that details your corporate vision.
- A common LANGUAGE with which to express that vision.
- A well developed ROUTINE for keeping the vision current.
2 - Why is strategic planning important?
- You cannot go where you want to go without having everyone on the SAME PAGE.
3 - What are the key components of a strategic plan?
- See below ONE PAGE STRATEGIC PLAN
4 - How does a business begin the strategic planning process?
- The key players in the business sit down and extract the vision out and write it down.
5 - Share an example of a successful strategic planning process that you have used (Caleb / Dan)
- It starts with an initial planning session to outline the OPSP
- Then quarterly planning sessions to set targets
- And annual resets to realign and keep the vision current
6 - How does technology play a role in strategic planning?
- A good app to keep all this information on can be very helpful IF YOU USE IT.
7- What are some common pitfalls we should avoid in strategic planning?
- Mistaking Individual Task For Priorities
- Choosing the Wrong Priorities
- Choosing too many priorities and poorly executing them
It starts with a One page Strategic plan, the OPSP gets “Everyone on the Same Page”
A One-Page Strategic Plan, as outlined in the book "Scaling Up" by Verne Harnish, is a concise document that serves as a powerful tool for businesses looking to clarify their objectives, align their teams, and accelerate growth. This one-page document captures the essence of a company's strategic plan and provides a clear, at-a-glance view of its key priorities. Here are the key components of a One-Page Strategic Plan:
1. Core Values: This section outlines the fundamental principles and values that guide the company's culture and decision-making. Core values define the organization's identity and shape its behavior.
2. Purpose: The purpose statement articulates the company's reason for existence, it’s "why." It goes beyond profit and describes the positive impact the organization seeks to make in the world.
3. Core Competencies: This section highlights the key capabilities and strengths that set the company apart from competitors. These are the areas where the company excels.
4. BHAG (Big Hairy Audacious Goal): The BHAG is a long-term, visionary goal that inspires and motivates the team. It's a challenging, yet achievable target that focuses on the future.
5. Brand Promise: This is a succinct statement that describes the unique value the company offers to its customers. It's a promise the company consistently delivers on.
6. Profit per X: This metric defines the specific driver of profitability. It could be profit per customer, per location, per unit, or any other relevant measure that aligns with the company's financial objectives.
7. Critical Numbers: These are a few key metrics that directly impact the achievement of the company's goals. Critical Numbers keep everyone focused on what matters most.
8. 3-5 Year Targets: This section outlines the high-level, quantifiable targets the company aims to achieve over the next 3-5 years. It includes financial, customer, and employee goals.
9. One-Year Plan: The one-year plan breaks down the longer-term targets into actionable steps for the next 12 months. It includes specific initiatives, responsibilities, and deadlines.
10. Quarterly Priorities: These are the top priorities for the current quarter that will drive progress toward the one-year plan. They are specific, measurable, and time-bound.
11. Individual Priorities: Each team member identifies their individual priorities for the quarter. These are the most important tasks that align with the quarterly priorities.
12. Meeting Rhythm: This section outlines the regular meetings and communication processes the company follows to keep everyone aligned and accountable.
The One-Page Strategic Plan is a dynamic tool that evolves as the business grows and adapts to changing circumstances. It serves as a compass, ensuring that everyone in the organization is heading in the same direction and working towards the same goals. It simplifies complex strategies into a concise, actionable format that fosters focus, alignment, and execution.