Textbook answer; What is the main purpose of strategic planning? Strategic planning is necessary to determine the direction of your organization. It focuses your efforts and ensures that everyone in the business is working towards a common goal. It also helps you: agree with actions that will contribute to business growth. My experience with strategic planning groups is they overlook a critical point; they don’t know what they don’t know. They don’t look broad and deep first.
Most organizations strategic planning process starts with digging out the old plan and tools to start the revision process. A fresh look is defined as someone new on the planning team or bringing in a new consultant. Look at your recent past process, how does it help answer the question?
The ‘right’ information is critical for an effective strategic planning process and the ultimate worthwhile plan. You can access multiple planning tools, but do they help you know what you don’t know? Even when Leaders understand and value the planning process, I have seen very few engage in a process that helps the know what they don’t know question.
I think everyone can agree with the following, the world today is a totally interconnected world. COVID pointed this out in spades along with what can happen when it becomes fractured. Who saw COVID coming? Are there other events in progress now or in the near future that can have a greater impact than COVID on your business?
As the saying goes, a good plan is only as good as the process used to develop it. An effective way of answering the question about knowing what you don’t know is simple, build it into the front end of the process. I have been part of planning processes where an outside individual or individuals or selected readings were utilized to help everyone have a broader understanding/thinking of potentially important information before starting the planning process.
I recently read a book by Peter Zeihan titled, The End of The World is Just The Beginning, [Just the Beginning]. The basic premise of the book (and truth) is that the world population is ‘collapsing’, i.e. most countries have zero or near zero replacement birth rates.
Zeihan goes on to talk about how this will fundamentally change how the world functions. This book’s potential value to a planning team is a well-structured discussion around the implications presented on their business. I would recommend the book to you just because it is a very interesting read.
Think about it, the mind is somewhat like an ‘old pump’, it needs to be primed first to function at full capacity. The best strategic process I experienced was a Leader who started the Strategic part of the planning process on January 1 with actual plan development starting in July. From January to July, it consisted of readings, speakers and group discussions about the information the group was receiving.
Different scenarios were constructed around probability of happening, potential impact on their business, what major actions they should/could implement, and potential new business opportunities.
Too frequently I have watched management teams ‘pull out’ the old plan, review results against the plan and then ask the question; “so what are we going to accomplish over the next three years”?
If you want a better plan change the process.