Strategizing and planning are part and parcel of running a successful business. In most organizations, strategic planning cycles are conducted regularly to ensure that operations run smoothly and that everyone in the team knows their specific roles to play. Good business leadership ensures that organizational strategies and plans are in place all throughout the year.
However, the problem is not every manager really understands the vast difference between a “Strategy” and a “Plan.” Most of them just love calling every quarterly meeting “strategic planning” session like it’s some kind of instant formula to success. Strategizing and planning may be the best tools for success but only if you know these two by heart and use them in the proper way. So before you gather your team for yet another “strategic planning”, you owe it to them to come up with realistic, doable steps that’s more than just a long document of business lingo that only you can understand.
Here’s a quick review of these terms in their simplest definition, which is how you should translate it to your team. Now, these aren’t just definitions, these definitions should change your plans and expectations for your company’s next “strategic planning” session.
Strategy
A strategy is the overarching wisdom and guiding principle that will tie in all of your plans in place. Before you jump into budgeting and manpower and all the other specific steps, you need to have a single, common strategy for all business transactions. This will serve as the blueprint or foundation that will help your staff to accomplish the goals you set.
Plan
A plan is the list of initiatives you will take based on the company strategy. After you have finalized your strategy, you can now develop a list of steps towards the end goal. These are the how, when, where, and what that are all coherent to your strategy.
Take note that a strategic planning session begins with drawing out an integrate set of strategies that may lead to the desired outcome. Consider every possible factor around you and draw out the strategy that answers the question “why?”
Now, that you have a better grasp of these two terms, here are a few quick steps to help you create an effective strategy. Remember, to build good business leadership skills, you need to master the art of strategic planning.
1. Identify your organization’s long-term aspirations. What is the goal of the business? Do you aim to expand? Do you want to be the fastest selling brand?
2. Review your existing market. Who are your competitors? How do you compare with them? How do you plan to win against the competitors?
3. Identify the resources you will need to be able to have a winning chance against your competition. This may include the finances, skills, and facilities you will need.
4. What are some external factors that may likely challenge your business’s ability to compete against others in the market? These factors may be totally out of your control.
5. Now, draw up your strategy for success based on all the useful information you have gathered.
Remember that this strategy will be your overarching principle and guide as you move on to making your specific plans. Successful strategic planning equates to good business leadership.
© 2013 Incedo Group, LLC
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