Business executives are battling time
and the economy, necessitating that
every company has a strategic plan.
But all too often, executives stop managing
once the plan is written; forgetting that what
happens next is the most critical part of the
process. Achieving buy-in across the enterprise, cascading the goals down through the
organization and following the objectives
through to completion is the difference
between having a strategic business plan
and achieving one.
“Don’t confuse strategic planning with
managing strategically,” says Wayne Pinnell
CPA, managing partner, Haskell & White
LLP. “This time, many of the recessionary-induced changes may be permanent, forcing executives to employ strategic management techniques to re-vision their organizations for success in a new economy.”
Smart Business spoke with Pinnell about
the strategic management and planning
techniques executives should employ in
today’s business climate.
What constitutes an effective business plan
in today’s environment?
Thirty-page glossy plans are out — one-page working documents are in — because
a short plan gives everyone in the organization a clear, concise picture of the priorities
and it’s easier to manage the goals and
amend them if the economy shifts. The plan
should read like the responses to a Joe
Friday interrogation — stating just the key
facts. Describe each initiative by outlining
where the company is now, where you want
to go, when you want to get there and how
you plan to get there, and also name who is
responsible for each assignment. The plan
should be created by those who have a vested interest in the outcome, which can vary
by organization, but blending operational
managers with strategic thinkers on the
planning team often results in a plan that is
visionary, yet detailed and realistic.
What’s the next step?
Communicate the plan to every employee
in the organization, making sure that everyone buys in to the organization’s mission
and understands his or her role. It is important for every employee to know how their
particular role supports the overall organization’s business and goals. Short slogans
or tag lines of three to eight words are an
excellent way to remind employees about
the company’s vision; create one and use it
on e-mails, stationery and brochures.
Executives may not have time to survey
every employee to gauge acceptance and
understanding of the plan. Make a few
phone calls and chat with employees in the
hallways, asking them for feedback to validate the effectiveness of your communication strategy.
What’s the most effective way to cascade the
goals down to each individual?
While you are communicating the vision,
amend the employee performance plans,
disseminating accountability and responsibility for achieving the company’s objectives to each individual. Aligning employee
compensation with the overall strategy of
the company, both individually and on a
team basis, adds another layer of reinforcement toward achievement of the larger
objectives.
How should executives manage the plan?
After a new plan is introduced, review
meetings should be held at least every 30
days, because getting off on the right foot
and driving a momentum change are critical
to ultimately achieving the plan. Short-term
review points provide an opportunity to
reset the ‘must do’ actions over the next
30-, 60- and 90-day periods. It is important to
distinguish the ‘must do’ items from those
you should or could do, as ‘must do’ items
are those considered to be critical to success. While staff members should report on
their progress during the meetings, it may
require that you remind them via e-mail
about upcoming sessions, so everyone
knows what to expect and to let the staff
know you are serious about following the
plan through to completion. Appoint a
scribe to take notes during the meeting, and
then send out the minutes and a list of
action items after each session.
Adjust a goal if situations have changed
making it unachievable or no longer a desirable outcome. Don’t shy away from holding
people accountable or let ‘lack of time’ be an
acceptable excuse, as we all have the same
amount of time available — it’s just how we
choose to use it that makes the difference.
Look at any macro objectives in a micro way
to see if political, social or economic events
necessitate a change and review the assumptions you used in creating the goal to see if
they are still valid. In this economy, you may
need to challenge your own assumptions
more frequently than in the past.
What other steps should executives take?
Too often, executives create a business
plan, and it sits on the shelf because there’s
enough momentum in the economy to carry
the company forward. One of the biggest
myths about this recession is that ‘spring is
just around the corner,’ so we can just ‘hunker down’ and wait and things will ultimately get better. Executives need to create
change, and the only way to move an organization toward a new strategic vision is by
managing strategically.
WAYNE R. PINNELL, CPA, is the managing partner at Haskell & White LLP. Reach him at (949) 450-6314 or [email protected].