Strategic
planning is like creating a map for an exciting journey you are about
to take. The map will help keep you on course if you start going in the
wrong direction but it isn’t so stringent that you can’t check out
different roads along the way. After seven years of consulting, this is
exactly what my strategic plan has done for me. Each year, I map out
where I am, where I want to go, and how to get there. During the year,
my plan is a guide for what I should be focusing on as well as a
resource to help me do a "check" whenever I am tempted by something new
and different. Sometimes, I rewrite my plan based on changes (i.e.
technology, client request, economy, emerging trends) but many times it
has helped me realize what is important and make the right decision
with various opportunities and threats to ensure my long-term goals are
met.
There
are many formulas or formats used for strategic planning but for the
most part they cover the same points and reach the same goals. I’m
going to share with you the process that I use personally as well as
with many of my client companies. If you like pictures, the flow chart
in Exhibit 1 will be a good tool for you to follow as you create your
plan. Plus, I’ll describe each step below.
Internal and External Analysis
Remember,
you are mapping out your journey. Your first step will be to determine
where you are by doing the good old "SWOT" analysis — identifying your
internal Strengths and Weaknesses as well as external Opportunities and
Threats.
Internally,
this includes assessing both the strengths and weaknesses of your
human, financial, and technological resources, as well as the culture
and values of the organization. The best way to do this is
brainstorming. Create two columns — one for strengths and one for
weaknesses and begin thinking and writing down anything that comes to
mind as a strength or weakness to you and/or your consulting business.
For example, one of my strengths is "True change agent — very flexible
and adaptable as needed" while a challenge is "Young and female in a
white, male profession."
An
external analysis requires you to evaluate what’s going on "outside"
your business and how may it affect you. As discussed in Christine
Keen’s book, Effective Strategic Planning A Handbook for Human
Resources Professionals, you should consider issues in the following
four categories: economic (i.e. unemployment, interest rates,
recession), political (i.e. current or pending legislation or court
cases), social (i.e. values, lifestyles, and demographics) and
technology. For example, from my external analysis an opportunity was
"Volunteer opportunities with complimentary organizations" and a
potential threat was "Growth of individuals starting to do human
resources consulting."
Gathering
this internal and external information will give you a snapshot of
where you are now — the starting point on your journey. However, a
starting point, by itself, will not enable you to achieve your goals.
Like going on a trip, you need both a starting point and a destination.
Remember my favorite quote from Alice’s Adventures in Wonderland:
"I just wanted to ask you, which way I ought to go?"
"Well, that depends on, where you want to get to," said the Cat.
"It really doesn't matter.." said Alice.
"Then it really doesn't matter which way you go," said the Cat.
Vision and Mission
We
need to determine our destination — in other words our Vision or
preferred future. A Vision is a short statement that is quickly and
easily understood by anyone and describes something different for the
organization. As a sample, below is Lenscrafters’ Vision statement:
"We will...be the best at helping the world see!"
Next,
you need to develop your Mission statement or a statement explaining
why you exist. Like the Vision, the Mission is also a short statement.
But, a Mission statement describes what the organization does which
will help it progress toward its ultimate future, the Vision.
For
example,
"To use e-technology to provide customized research and solutions to human resources management challenges and needs in business and industry."
As
you begin to develop your Vision and Mission, you will find it easier
if you again brainstorm. This time think about what’s important to you
and to your business — who are your customers, what makes you
different, how would your clients describe you, what can you contribute
or offer to others, what would you like to do or be tomorrow?
Developing the Vision and Mission are the most difficult. Initially,
this may take a number of rewrites with input from others, such as an
advisory board. However, once you have both of them clearly defined the
rest of your plan will fall right into place.
Objectives
Now
to answer Alice’s question to the cat...Once you know where you are and
where you want to go, you can then map the directions for getting
there. In other words, you can identify the key objectives that must be
met during this planning horizon to progress toward your Mission and
Vision. Generally, your objectives should be specific and measurable.
In addition, they need to be ambitious but realistic and only focus on
what needs done not how, that’s next. For example, an objective may be:
"Develop a state-of-the-art, user friendly web site"
Your
list of objectives will quickly grow but you have to narrow down the
top four or five that help advance your business toward meeting your
Vision and provide you with a competitive advantage. If the list is too
long, your plan will quickly become a "dead" document rather than a
"living" document that you can use and refer to throughout the year.
Action Plan
For
each of your objectives, you will then need to create a detailed action
plan or "how" you will meet the objective. I've had the most success
with this by completing the following formula for each objective:
1. Desired Results — (What are you hoping will happen or result if the objective is met? How will you benefit?)
2. Potential Obstacles/Barriers — (What might prevent you from completing this objective?)
3. Supports — (What resources, people, or tools are available to help you with this objective?)
4. Process — (What steps must we take to achieve this objective? Be specific on each step indicating who will do what and when)
5. Evaluation — (How will we know when we’ve successfully met this objective?)
This
may seem like a lot of work for each objective but if you map out the
answer to all five of these steps, you will have a very clear and
unquestioned plan for how your objectives will be met.
Implementation and Evaluation
The
hardest step in this process is the next one — implementation! Don’t
let yourself do all of this planning and throw the end product on the
shelf until next year. If you do, then where will you be and will you
be any closer to your preferred future? To help ensure that you are
proactively working toward these goals, you need to check back on
things every so often — at least quarterly. Has anything changed? Are
you on target? Do you need to modify any of the plans? This plan is a
living document so it may change; this is okay as long as you are aware
of the changes and make them yourself rather than them being made for
you.
This
isn’t an easy process and can be extremely exhausting. But, if you
create an effective and realistic strategic plan, you will begin to
focus resources today toward meeting your goals for tomorrow. Plus, you
will have a tool to help you minimize the threats and maximize the
opportunities. One of the most important benefits of effective
strategic planning is that it provides you with a fresh start by
clarifying where you are, where you are going, and how you are going to
get there. You should re-evaluate your strategic plan on an annual
basis using a planning horizon between 2-5 years. Each year, you may
find that a great deal changes but your preferred future will stay
status quo until you reach it - and you will!
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