Strategic planning is a key process that adjusts an organization's direction in response to a changing environment.

It supports the fundamental decisions and actions that shape and guide an organization. A sound strategic plan can help define and focus a distributor's efforts to move the company in the right direction, using the best methods.

So, why do they fail? And, what can we do about it?

It seems that many of our strategic planning sessions stop halfway, before there is a plan. That is, very little planning, if any, goes into the implementation process. Or, we go off with a few select managers to a weekend retreat. We all sing our favorite company "Fight" song, drink the same Kool-Aid and come away from that meeting all pumped up with a list of fifty four initiatives. Six months later, nothing really gets done ---- Undeveloped intentions.

If done correctly, the strategic planning process can become the critical driver of sustained success for your company. However, if done wrong, strategic planning can be a tremendous waste of time and money. It can also create confusion in your focus taking emphasis away from critical priorities.

One of the most common difficulties companies face in strategic planning is turning their vision into a reality. To transform your organization into the one you envision takes more than great strategy and implementation, you also need to make the strategy an integral part of the very fiber of your organization. This all starts with creating the "End Game Vision for the Future." In other words, before you can create a map to go somewhere, you have to define the destination.

The End Game

The End Game is actually a Chess terminology used in the context of the end game strategy to win the game. It focuses on centralization of the king, the role of the pawns, the principle of weakness and the bishop's impact and that is as far as I will go with chess talk. I am not a chess player. However, the concept of the "End Game" in business is actually quite the same as in chess, the point being --- how do we win the game.

The "End Game" in business is simply defining what winning the game in your business is really about. What does winning mean.

Creating an "End Game Vision for the Future" is the very first critical step to making your strategic plan work. It must have simplistic clarity that makes it understandable to all employees. This often requires the documentation of a precise core strategy statement that the employees not only understand but embrace.

Buy-In

However, there is one caveat. You must create full buy-in of your Strategy Team toward a mutually-agreed upon vision for the future. Make sure your company vision (End Game) is clear enough to inspire a great strategy, otherwise you won't create ownership. Creating buy-in is not difficult if you are willing to allow your strategy team (in your absence) to challenge your End Game, tear it apart and put it back together and then discuss it in detail so that it becomes a company End Game and not your individual Vision for the Future.

Communication

Poor communications can take many forms. I have seen a number of companies develop strategic plans, and then hide them in a desk drawer or put them on a shelf only to collect dust. This may not be intentional. It may simply be a lack of understanding as to the purpose of a strategic plan. The failure to communicate the vision and strategic objectives to employees and other stakeholders may mean that the strategy team isn't communicating clearly enough to create an understanding as to how the plan is to be executed. New initiatives or objectives are outlined but not communicated throughout the organization as to how the new objectives should look and feel, what steps to take, time-frame, etc.  Expectations and opinions must be shared openly, thoroughly, and effectively.

Communication is  more than words, pictures and e-mails. Communication is also delivered through demonstration and action. That means that the strategy team must create a formal "Roll Out" process that communicates the strategy face to face to all employees. We all know about the hypocritical "do as I say, not as I do" admonition. If you aren't willing to meet with all employees and clearly define and communicate the future of the company, what does that say about the  value of your strategic plan?

Built in "Accountability

This requires a keen sense by the executive team to empower employees to take action and get things done. Every tactical action supporting the strategic objectives must be tracked and measured by defined key performance indicators that tell you whether you are winning or losing against that particular initiative and its established goals.

Another thing to do to get people on board is to make sure your people understand enough of the basics of business that they can see how the strategy is going to make them better off, increase their job security, increase the likelihood that they get promotions, and how it will increase the likelihood that they see pay increases in the future. This means you need ti invest in training throughout the organization.

Leadership

Most leaders grossly underestimate what it takes to lead effectively. Weak leadership often results in improper resource allocation, lack of buy-in, poor follow-through, lack of accountability and misaligned goals. Not all management teams are blessed with skilled leaders. Some individuals on the management team have titles associated with leadership, but no authority and little accountability. Unfortunately, there are also leaders who are just plain stubborn or ego driven. They may believe they are expected to have all the answers and as a result they are close minded.

Effective leaders go through a never ending development process that includes education, self study, training, experience and coaching and mentoring from one or several individuals that have a very positive influence on their personal development. Leadership is the ability to influence, inspire and motivate others to accomplish specific objectives. It includes creating a culture that helps direct the organization in such a way that it makes it cohesive and coherent keeping short term tactical goals and objectives in alignment with long term strategic initiatives. The success of leadership in this process is directly influenced by the individual leaders' beliefs, values, ethics, character, knowledge and skills.

Commitment

"Excitement breeds Excitement – Success breeds Success".

As leaders the entire strategy team has to demonstrate a passionate commitment for success. This isn't demonstrated by assuming that things will run themselves once you get them started. Implementing strategic plans means staying focused on the specific tasks that are required to create results.

Prioritize
By the way, those fifty four initiatives I mentioned in the opening of this article, chances are you will still create fifty four initiatives or some enormous amount. Obviously, you just can't implement every one of them.  You need to go through a prioritization process with ground rules that include identifying four to six initiatives that provide the biggest return in the shortest period of time. That time period must not extend beyond the first twelve to eighteen months of execution. All the other initiatives are deferred. Besides reviewing your progress monthly, you will have a complete strategic review annually to reprioritize the deferred initiatives and move them forward for execution.

A key concept – being deferred does not mean you do not do anything with reference to that initiative. It simply means it does not receive the strategic focus that you must maintain for the prioritized initiatives.

Performance Management
Like leadership, management is not easy either: "It takes a special person to be able to define strategies and to plot out and manage others in how to achieve those strategies. Most fail because they assume their team has the wherewithal to pull it off and they therefore do not manage the process. Make no mistake, people want to be held accountable. They want to know how they are doing. They want to feel the thrill of success.

As a result, a performance management system of some kind is a must. It can be as simple as a monthly strategic review meeting that tracks individual tasks or a formal systematized performance management process that begins with performance agreements, goals and objectives. The key is to learn from one another, support one another and provide a platform for coaching and mentoring during the execution phase of the strategy.

Competitive Advantage
Strategic planning consists of defining clear objectives and creating a plan to meet those objectives. It is not a substitute for effective leadership or the exercise of good judgment. A strategic plan by itself does not make the company successful – it can only support the sound judgment, the reasoning skills and leadership that lives in the hearts and minds of people. However, a good strategic plan can help create competitive advantage.

It is a creative process the starts with the visionary creativity of the owner or CEO.  The fresh insight it engenders might very well alter past initiatives. Planning also consumes resources which are precious commodities. It can be an overwhelming and daunting task, but it is a process that eventually defines the direction and activities of the organization. Despite its overwhelming nature, the benefits of planning can far outweigh the hard work and pain involved in the process.

I cannot emphasize enough that the true value of a strategic plan is not in the document itself. It is in the process of creating it, involving many of your employees from the bottom up. This empowers them to be more effective and better-informed leaders, managers and decision makers. This establishes the platform for competitive advantage.

Making it Work in Review

So……. To make your strategic plan work and maximize its effectiveness, keep this list handy for review.

1. Create an "End Game – Vision for the Future
2. Generate Buy-In by allowing your team to challenge that End Game
3. Communicate your strategy effectively throughout your organization
4. Build in accountability for execution
5. Refine your personal leadership skills and the leadership skills of your entire management team
6. Demonstrate a commitment with a passion
7. Prioritize your initiatives
8. Initiate a performance management system

If you still have doubts, lack the resources or need outside help, just e-mail rick@ceostrategist.com.

Check out CEO Strategists Learning to Lead So Others Will Follow Planning Workbook and CD set.
www.ceostrategist.com/resources-store/real-world-leadership.html

www.ceostrategist.com  – Sign up to receive "The Howl" a free monthly newsletter that addresses real world industry issues. – Straight talk about today's issues. Rick Johnson, expert speaker, wholesale distribution's "Leadership Strategist", founder of CEO Strategist, LLC a firm that helps clients create and maintain competitive advantage. Need a speaker for your next event, E-mail rick@ceostrategist.com.