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Strategic plan knowledge for anyone ... anywhere ...
anytime.
Strategic planning is a business process
that many companies employ to identify critical success factors that set
the course for future growth and profits.
Lewis Carroll in "Alice in Wonderland" makes a
good case for it: "Would you tell me, please, which way I ought to go
from here?" said Alice. "That depends a good deal on where you
want to get to," said the Cat. "I don't much care
where…," said Alice. "Then it doesn't matter which way you
go," said the Cat.
Like most business processes, the key to
success is the effective implementation of the plan. Companies that do a
good job of developing and executing their strategies can create a
competitive edge that provides increased market share and higher gross
profit margins. Organizations that turn their plan into a "dust
collector" upon an executive bookshelf, will never achieve their full
growth and profit potential.
Strategic plan knowledge for anyone ... anywhere ...
anytime.
Most criticism of strategic planning is aimed at the
planning process. They question the validity of a plan that has been based
on market "guestimates", the questionable valuation of the depth
and breadth of competitors and an optimistic assessment of the company's
internal strength and weakness. The fact that strategic plans can be
overly optimistic is not the core problem. Although the criticism may be
appropriate, it puts the focus for improvement on the wrong end of the
process - it is the implementation task that is critical to producing
positive results and it is here where most companies fail at strategic
planning.
Poorly implemented rational, strategic plans will
produce limited positive results. On the other hand, overly optimistic
strategic plans, effectively implemented, can produce results beyond
everyone's expectations. This being the case, what is the key to effective
implementation? In one word - commitment!
Companies that are good at strategic planning build
commitment to the planning process and to each of the strategies within
the plan. They build commitment throughout the organization, working with
people from all business functions to build commitment before, during and
after development of their strategic plan.
Strategic plan knowledge for anyone ... anywhere ... anytime.
Winners begin early in building a commitment to the
strategic plan. Suggestions are encouraged from managers at all levels,
from key executives who will participate in the planning sessions, and
others who will share responsibility for implementing the resultant
strategies. Together, they surface issues that will require changes in
business process and/or culture and identify those constraints that will
need to be overcome if implementation is to be successful
During planning sessions, key executives from each
functional area are all encouraged to participate and contribute to the
plan. These executives develop strategies that build on organizational
strengths and consider resources required to accomplish those strategies.
They assure that a key executive "owns" each strategy and
commits to a time schedule for its accomplishment. The key executives give
thought to resource planning - realizing that human resources are the key
to making positive things happen in difficult, complex business
environments - and they commit accordingly.
Following the development of their plan, those
responsible for implementations develop their own "tactical
plans." These action plans, when coupled with self-directed work
teams, are major contributors to a successful Strategic Planning
implementation. Teams use their plan to manage, to make decisions and to
grow their business. Periodically, they review their "tactical
plans" to monitor and report on the progress of implementation -
keeping the plan "alive" by revising strategies and tactics when
necessary.
Strategic plan knowledge for anyone ... anywhere ... anytime.
Finally, to insure successful implementation of their
strategic plan, they work on the planning process itself. The planning
group continuously "fine tunes" the planning process to insure
that inputs from all business functions are given their due consideration
and to insure that buy-in and commitment to the final plan is agreed upon
throughout all levels of the organization.
So, why are most operations management teams outside of
the strategic planning process? Why do many line managers view strategic
planning as a make work project that produces little or zero value to
customers? Maybe, it's because they did not participate in its development
nor did they buy-into its validity - let alone commit to the execution of
its strategic objectives. In short, they're not connected to the process!
To achieve a company's full growth and profit potential, CEOs and business
owners need to insure the active participation of operation management in
the strategic planning process.
Strategic plan knowledge for anyone ... anywhere ... anytime. If you
seek additional information about effective strategic plans, click here: Strategic
Planning
Balanced Scorecards can provide focus and performance
feedback for strategies and objectives and raise the level of
implementation success. Business Basics has recently released our Balanced
Scorecard Tutorial to help business teams improve their strategic planning
and implementation
effectiveness. To check it click here--->
Performance Management Training
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