2020 Strategic Plan Setting: How to Build a Foundation for Success
by Ron Horton
A carefully-crafted strategic plan helps an organization achieve its long-term goals. While most businesses realize the significance of strategic planning, few companies carry out this task successfully. As a result, not all companies meet their annual targets.
Various factors, such as the changing industry dynamics, the plan’s alignment with the original company vision, and the effectiveness of executing the plan, determine the plan’s success of your strategic plan. Hence, you need to keep in mind several factors when formulating a solid strategic business plan.
By now, you should have created a strategic plan for 2020, but if you were too busy closing 2019 to work on plan setting, adopt our step-by-step technique to revisit your strategic plan. If you’ve already formulated a plan, use these insights to make it more effective.
Step 1: Evaluate the Industry, Your Competitors, and Your Customers
Among the key steps in revisiting your strategic plan is to conduct an industry analysis, studying the market trends with respect to your competitors and customers. Identify the macro-economic trends and government policies affecting your industry. Find out whether or not the industry is growing and the rate of growth. By studying how the industry has evolved, you can better anticipate where it is heading.
Also, obtain information about your key competitors and industry leaders, identifying their success mantra. The changing customer needs and pricing trends are equally important when it comes to strategic planning.
Once you’ve obtained these insights, look into how this information can be used to shape the 3P’s: People, Processes, and Profitability. An effective strategic plan will outline how you manage your people and processes to maximize profitability. If your people and processes are regularly updated with market dynamics and expectations, nothing can stop your company from succeeding.
Step 2: Look Back at Your Company Vision
When revisiting your strategic plan, you must look back at your company’s vision and mission. Your chances of achieving those ultimate goals depend on whether your plans are aligned to the company vision and mission. By staying relevant and competitive, you can get closer to achieving your goals.
However, it is equally important to ensure that your vision stays relevant to the advancements in the industry and is still effective. Use the industry analysis you conducted in step 1 to test your original vision. Ideally, your vision should be easy to understand, be exciting for you as well as your team, and justify the reason for your business’s existence.
Step 3: Bring Everyone on the Same Page
No matter how clear your company’s vision is, you won’t be able to execute your strategic plan if you don’t bring your entire team on the same page. Effectively engaging your team helps in the implementation of your goals and the achievement of your vision. Conduct meetings with your team to make sure that everyone understands the vision and help them keep their efforts aligned to it. The road ahead can prove extremely tough if your team isn’t aligned with your company’s vision.
Step 4: Keep Your Targets as Much Quantitative as Possible
Setting targets is one of the most important components of strategic business planning. Without having clear benchmarks and targets, you won’t able to assess business success, nor find out how close you are from your company vision. When creating targets, it is in your best business interest to quantify your goals.
“Incorporating quantitative measures not only makes it easy to measure success but also make targets more achievable. These targets can be anything from exploring new market opportunities, to surpassing current profitability benchmarks to expanding your customer base. For instance, a vague goal such as “improving customer loyalty” can be made more relevant by saying “increasing repeat customer ratio by 25%.”
Step 5: Suggesting Strategic Initiatives
Once you’ve formed teams and assigned annual goals to each team member, take the time to brainstorm strategic initiatives with them. These initiatives, will form part of your strategic business plan, should help your teams accomplish their annual targets. However, the suggestion of strategic initiatives shouldn’t come to an end at any point in time. The process should continue throughout the year depending on the changing dynamics.
To stay ahead of the competition in 2020, you can’t afford to procrastinate on setting a strategic plan for the upcoming year. A comprehensive and effective strategic business plan forms the foundation of success in the future. However, while it is important to set up your strategic business plan, keeping it aligned to your vision and bringing everyone on the same page is equally crucial to retain its long term effectiveness.
In other words, your strategic plan should be practical, reflect your company’s vision, and be clear and acceptable to your all team members. Hopefully, you’ll have a positive start this year and lead your organization to new heights by year-end.
Strategic plans are best created by partnering with a management consultant who uses their expertise to outline your vision, mission, objectives, initiatives, and KPIs that will successfully transform your business. The first step to building your strategic plan is working with a professional who understands where you are now and where you want to be tomorrow.
Pinnacle Consulting provides strategic planning and management consulting leadership to organizations, creating efficient operations and exceptional execution, and facilitating strategic business growth. We provide:
- Business Strategy Consulting
- Measurement and Monitoring Services
- Program and Project Management Services
- Management Consulting Services
To find out more about us and how we can help you and your business, contact.