Strategic Planning

Uncertain Which Path to Take?

The most common mistakes we see organizational leaders make is to treat strategic planning as an event rather than a dynamic process. This approach usually means that insufficient time, energy, and resources are applied to the process and the results are un-satisfactory. This leaves leadership and the rest of the organization unclear how to proceed, often resulting in the status quo.

Organizations that take the time to engage in a comprehensive strategic planning process on a regular basis achieve better results. They also often find that while there are several paths they could take, it is more important to pick one and execute than it is to endlessly debate the alternatives and do nothing. Sound strategies increase the probability the management team will be successful. Effective strategic planning includes the following:

• Vision: The vision of an organization is the exciting and ennobling image of the future that its leaders paint for the employees and enlists them in achieving that vision by appealing to shared aspirations. Creating a shared vision is a primary role of the Leadership (Fundamental #1 of the Four Fundamentals of Success).
• Mission and Values: If the vision is what the organization is trying to ultimately accomplish, the mission is why it wants to achieve that vision. The values of the organization refers to the way in which it will conduct itself; the principles that guide it in how it treats its employees, customers, and community. Creating a compelling vision and values is the foundation for a collaborative and committed culture (Fundamental #2 of the Four Fundamentals of Success).
• Strategy: The strategy defines how the organization is going to accomplish its vision. It should consist of a set of concrete action items that gets the company from its current state to the desired future. Defining and executing an effective strategy is a critical component of ensuring the organization has the appropriate structure (Fundamental #3 of the Four Fundamentals of Success).
• Balanced Scorecard: The balanced scorecard (as pioneered by Kaplan and Norton) is the dashboard or vital signs monitor that records whether the organizations is actually achieving is goals. An inspiring vision, compelling mission and values, and an effective strategy increase the probability of achieving the desired results (Fundamental #4 of the Four Fundamentals of Success).