There is no right or wrong way to prepare and execute a strategic plan. However, through the lessons learned of both successful and unsuccessful strategy execution, the following elements have proven critical to delivering on a successful strategy:
1) Analysis of internal and external drivers
At the base of any strategic plan is a solid analysis and understanding of internal and external factors and drivers that impact the organization. Using one of the frameworks mentioned in the article “Top 3 analytical frameworks to assist in strategic planning” [LINK TO OTHER ARTICLE] will ensure thata complete thorough analysisis done. The outputs from this analysis will ensure that the strategic plan considers all relevant factors, and provide a foundation for a successful strategy.
2) Vision statement
One of the key elements that a strategic plan incorporates is the answer to the question “where do the organization want to be?” Conveniently, the vision statement provides a view into the future, describing a company’s inspirational, long-term plan for what they want to accomplish. The vision is often out of reach for now, but with thoughtful and determined strategic plans, attainable in the future.
Vision statements give direction for employee behavior and help provide inspiration.
3) Top level objectives
The top-level objectives are typically referred to as the “goals” of the strategic plan. These objectives are the first stepping stone from taking your strategic plan to concept to action. The top-level objectives will be the drivers for the tasks/actions plans that come after the strategic plan is complete. Getting the top level objectives right is critical, as it will drive the actions of the organization going forward.
In order to ensure that the top level objectives consider the major perspectives of the business, we recommend that a balanced scorecard approach be used. If you don’t recall, the 4 major perspectives considered in the balanced scorecard are as follows:
· Financial
· Customer
· Internal processes
· Learning and growth (people)
A well balanced strategic plan will have an even weighting of objectives that consider all the perspectives of the balanced scorecard.
4) Implementation plan
Implementation — this is where the majority of strategic plans fail. Organization comes up with a great analysis of their business, a clear vision of where they want to be, and objectives that will move them in the right direction. Unfortunately, those elements described above answer the what and the why of the strategic plan.
The implementation answers the who, where, when and how. The implementation is where the true value creation of strategic planning is delivered to the organization.
The keys to a successful implementation plan:
· Clear ownership/accountability and timeliness– each action should have a single person accountable for the delivery on that action item, along with agreed upon milestones and deadlines.
· Clear communication — While the strategic plan is generally well understood by the people who prepared it, you must remember that the rest of the employees were not part of the process. It is imperative that strong formal communication of all aspects of the plan be delivered to the employees, so they can understand the purpose and importance of initiatives and actions that come as part of the implementation.
· Make the plan a part of the daily routine — Too often the strategy developed over a 2-day off-site is quickly forgotten and put on the shelf as people go back to their “jobs”. As people go back to their normal routines, the action plan gets put on the shelf and forgotten until the next annual strategy planning session. Making the strategy execution becomes part of the “normal” work routine, will help ensure it does not get forgotten.
· Resources — Most of the implementation actions will require additional resources, as they are likely above and beyond the current capacities of the organization. Thoughtful consideration will need to be given to the resources required for the execution of each action, and commitment by the organization to provide the required resources to the task owner.
· Strategy champion — Having a dedicated champion to follow up with action owners and drive the plan is critical to ensuring successful delivery. The champion can assist with driving all parts of the strategy execution outlined above. They can re-allocate resources as required, follow up with owners, drive accountability and timelines, and assist with strategic communications to the employees.
5) Regular review
As the plan is executed, the senior leadership team will need to review on a regular cadence the status of the execution of the plan and provide modifications to the plan as required. This will provide “tone at the top” giving the strategic plan the importance it deserves, gives leaders insights into the success or challenges being faced by the plan, and modify the plan to suit changes in the environment.
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