The Conclusion of "Discovering" the Value of Strategic Planning

The previous post took us through a process where we gathered Strategic Planning members and took them through an educational process to prepare them and increase the value of the final document.

We looked at the need for financial discipline through budgeting and forecasting. This post will continue the process through how effective internal communication can add incredible value by managing for improvement.

The point was made that forecasts and budgets must be done realistically. If people are more interested in pleasing others with inflated sales forecasts and overly conservative budgets, then all that results are bitter discussions later on why the projections were missed. And just like the stock market, there are consequences to missing those projections. It is not only better for the company, but better individually to now "face the music", constructively, than face the financial consequences of poor results that could have been avoided through sound management.

If there is to be advice here, however, conservatism is the rule. It is better to over achieve than under perform. As humans, we deal with good news much better than bad. Believe me, this is something that took me 30 years to learn!

Once we navigate through the communication and gain mutual understanding, then we ideally have constructed a solid foundation for discussing where we should go with the future. Do we stay similar to who we are, or do we change? Why? Do we need to secure a new category of customer? What is our competition doing? What will the marketplace look like in 5 years? Do we need new products? And most importantly, what will our customers (existing and new) need and want?

Then things will be discussed such as, do we have the necessary resources to move ahead, like people, money, equipment, and skills (core competencies)?

Finally, everyone must understand that the corporate ownership has the right to meet their objectives, especially if Family Owned. These may not always be in concert with what the Committee reached consensus on. Some discussion ahead of time here will make for better understanding during the formal process.

Once we have navigated through this "discovery" process, the soil should be fertile and prepared. Let the formal process begin!

These last 2 posts should answer many of the questions you might have had. Please feel free to post your own thoughts, or contact me with anything else you might have.