In this economy, many companies are questioning their chances for survival.
Entrepreneurs determined to find a way to succeed are challenged to find sufficient opportunity to make a profit. Yet, they relentlessly push forward, hoping for a brighter tomorrow. With sustainable business growth in question, business owners wonder whether investing in business plans, strategic initiatives and mission statements is worth the time and money spent.
Unfortunately, many business plans were created during a time when management followed the trend of being a "me too" company. Some business owners hired it done so they could display a bound copy of their business plan. It sounded good and, once completed, it was easy to go back to business as usual, ignoring the plans created during a corporate retreat.
You have probably participated in the implementation of new initiatives to create needed changes, possibly improve customer service, reduce product returns, or offer more services to your customers. According to Harvard Professor Robert Kaplan, in his book The Strategy Focused Organization, nine out of ten companies fail to execute their strategic visions. The major failure of strategic initiatives is that management treats them as a one-time, one-day, one-meeting event, that when announced, will succeed.
Business owners who only want to invest one time in developing a plan, with the belief they can delegate business initiatives with success and simply harvest them in a year's time, are misguided. Strategic planning won't work for their business or team.
The difference between survival and success comes down to your ability to execute your business plans. Larry Bossidy and Ram Charan in their book, Execution – the Discipline of Getting Things Done, state that "Having the right strategy is only the first step. Execution is the major job of the business leader."
A number of business owners are determined to do more than survive and simply wallow through these times until they are over. Possibly, past efforts of setting a strategic plan worked. They believe that a plan is better than being blown by the winds of fate. They know in their heart and soul that by planning, overcoming obstacles, and discovering new options, they won't only survive, but will become an industry leader.
Here are items successful businesses do, time and time again, to achieve success:
The management team meets at least monthly on the strategic plan. If well planned, this can be done in an hour.
Individuals are assigned specific items of responsibility.
There is written accountability of each initiative from the strategic plan.
Teams meet weekly, and make sub-assignments so major new initiatives can be broken down into bite-size pieces.
The individual or team assigned an item develops a detailed plan which includes deadlines, mile stones, resources needed, return on investment, and other major elements. This is done with input to achieve a consensus of expectations from the management team.
Detailed plans are circulated for review. In the next monthly meeting, specific plans are presented for approval.
In monthly meetings, each person reports on plan accomplishments and where they need help. These meetings include brainstorming, assessing accountability and keeping strategic plans moving.
As a strategic item is developed and implemented, the manager assigned to that item spearheads another part of the strategic plan. This process can also be started at the beginning where each person is assigned up to three tasks, but first focuses on one task to create the most impact and then moves to the next. This creates focus for the manager and team.
Business strategy will only succeed with effective execution. Execution is a process. It is not the result of a single decision or action. Execution is a series of integrated decisions that create the desired result. Your developing and executing an effective strategy for your business will have your entire company speeding forward not focused on the rear view mirror.
