Most executives are pretty level-headed people.
With the exception of a few mavericks who blaze their own paths and create infamy along the way — as well as of those criminal executives who caused Congress to enact Sarbanes-Oxley — you don’t see too many CEOs making headlines for outright stupidity.
But many business leaders lack succinct plans aimed at taking their companies to the next level. That’s not to say they don’t have business plans with goals, but those are drastically different than clear, step-by-step strategic plans for growth.
Too often, I hear about CEOs with brilliant ideas for companies who are winging it when it comes to establishing the growth segment of their plan. They base their growth assumptions on strong products, expanding market share and playing the numbers game —securing more clients by having their salespeople contact more people.
None of these strategies is, in and of itself, wrong, but they miss the point of a master plan.
You wouldn’t set off on a vacation without directions on how to reach your destination. So why would you stumble around in your business without directions that lay out how you intend to get where you want to be?
Smart business leaders take the extra step when it comes to strategic planning. They don’t just stop at a business plan that walks through the SWOT analysis (strengths, weaknesses, opportunities and threats), then lays out the goals for the future with some projections of how the company will achieve those goals.
Savvy CEOs emphasize outlining the execution phase of the plan, defining in detail the exact steps necessary to reach certain milestones along the path to the end goal. They keep their eye on the final destination and develop contingency plans for detours that pop up so that they aren’t distracted by the inevitable.
And, just as important, they communicate this information to their employees so that everyone not only knows which way they are paddling but where they are going, how they intend to get there and what everyone’s role is along the way.
As you read through the profiles of this year’s Cascade Capital Award honorees, you’ll find a group of companies — and CEOs — that understand this and use it to succeed.