Implement the Plan/ Develop Your Strategy

Shaping the future How to use strategic planning to add to your chances of long-term success L A R R Y G O D D A R D , CTP Managing d irector SS&G Parkland ( 4 4 0 ) 3 9 4 - 6 1 5 0 [email protected] . ___ Ut 4^ EVENTS:

For more inform ation or to register fo r any of SS&G Parkland's upcoming events, visit www.SSandG.com/events.

Insights Accounting & Consulting is brought to you by SS&G INTERVIEWED BY JAYNE GEST E very business, regardless o f size and industry, should prepare for the future with strategic planning — otherwise you may find your company buffeted around by the winds o f change.

I f you clearly define what future success could look like by painting a picture that m ost people understand and buy in to, it gives everyone a com m on vision and goal.

T h e n , they are on the same page, pulling in the same direction, which allows your com pany to focus on w hat’s im portant.

“A good strategic plan allows people to constantly ask, ‘Is w hat we’re about to do consistent with ou r plan and im portant in relation to ou r plan?’ And if it isn’t maybe we shouldn’t be investing a lot o f time and energy on that,” says Larry Goddard, CTP, managing director o f SS& G Parkland.

S?nart Business spoke with G oddard about w hat you need to know about strategic planning.

H o w d o e s a s t r a t e g i c p la n d i f f e r f r o m a r e g u l a r b u s i n e s s p la n ?

I f a business plan is done correctly, it is a strategic plan. However, strategic planning does require research, analysis, and a comprehensive oudook that considers customers, markets and competitors.

W h a t c o m p o n e n t s n e e d t o b e i n c l u d e d ?

First, establish the mission — why the company exists and w hom it serves. T h en , set o u t the vision, which is where is the company heading. N ext, define the strategic initiatives — the major things that need to be accomplished in order to achieve the mission and vision. T h e last piece is action plans, the detailed steps involved in achieving the strategic initiatives.

A couple o f im portant strategic issues to keep in m ind are looking for marketsthat are conducive to success and having a compelling value proposition.

Strategic plans typically span 10 years, with m ore detail and precision in the earlier years.

I t ’s easiest to think o f it in tim e buckets o f one year, two to three years, four to six years and seven to 10 years.

W h o s h o u l d b e in v o lv e d in t h e c r e a t i o n , a n d h o w m u c h t i m e d o e s i t t a k e ?

Strategic planning usually involves five to 10 senior managers. But it’s also a good idea to include a few non-senior managers for a fresh perspective o f th e business and its opportunities.

After doing some preparation and analysis o f your markets, products, customers and competitors, you can set up several days to develop 90 percent o f the plan.

O nce the bulk o f the plan is finalized, the team just needs to hold quarterly reviews to evaluate the progress with benchmarks and goals. In addition, this is the tim e to assess changes, both internal and external, to decide whether to update the plan. I t takes a balance; you d o n ’t w ant to ignore a major shift in conditions, but if you change too frequently, the business could lose focus.

W h e r e d o y o u s e e b u s i n e s s e s f a l t e r in t h e i r s t r a t e g i c p la n n i n g ?

T h e biggest mistake is letting problem s, new opportunities o r success — distractions— g et in the way o f the plan. F o r example, a com pany m ig h t lose a major custom er and go into a tailspin, com pletely forgetting about the plan, while firefighting to figure o u t w hat to do. O r a com pany may pick up a new $5 million account, causing employees to p u t all their energy into bringing on th at account.

T h e o ther im pedim ent is n o t making it part o f daily life. I f strategic planning is som ething you do once a year o r every two years, it’s n o t going to work. I t has to become the guide for everything you and your employees do every day.

S o , d o e s t h a t m e a n b u y - i n is i m p o r t a n t ?

Absolutely. T h e m ost im portant goal o f a strategic plan is maintaining stakeholder buy-in, which includes employees, owners, suppliers, customers and lenders. However, employee buy-in is the biggest ingredient for success. I f you can get your employees on board, half the batde is won.

To get th a t buy-in, be careful how you communicate the plan. T ry holding town hall meetings with smaller groups, where the plan is presented n o t as a fait accompli but as a draft. T h e n , allow employees to give input, so they will feel that you respect them and listen to their ideas. Your employees need to see the plan as realistic and exciting, so they are m ore likely to stick around and be p art o f your long-term success story. • 40 S m a r t B usin ess A k ro n /C a n to n | A u g u s t 2014 Copyright ofSmart Business Akron/Canton isthe property ofSmart Business Network, Inc.

and itscontent maynotbecopied oremailed tomultiple sitesorposted toalistserv without the copyright holder'sexpresswrittenpermission. However,usersmayprint, download, or email articles forindividual use.