In the first year, it is a big, painful effort. The development and execution of strategic plans is a well-thought-out plan performed in three critical steps: One good practice is to include directors in the questioning phase and in specific conversations along the “W” process described above. They are constantly reframing their strategic context, thinking of new goals, initiatives, ways of organizing, etc. Once a small entrepreneurial project nurtured within Nestlé, Nespresso became a worldwide success—but only after it was set up as an independent unit. It doesn’t have to be that way. Start with the Strategy Map â Before you discuss metrics, targets, actuals, variances, financials, stretch targets, percentages, project plans, line items, action items, and any and all things quantitative, take a quick look at this simply color-coded one-ager. More than ever, companies need to devote time to strategy. This approach not only helps managers get their heads around the new direction (the act of creating a written synthesis forces concentration and drives alignment) but also pinpoints areas of the organization where the strategy is not well understood—before that misalignment has a chance to affect performance. At the same time, powerful analytics increasingly allow you to automate many first-level analyses. Generally, it is important to include key family shareholders in the planning process. The purpose of long-term strategic thinking should be to define, validate, or redefine the vision, mission, and direction of the company. Strategy newsletter; 4 4â¦ Progress reviews and “pressure tests” should have a regular place in the executive committee’s monthly always-on strategic dialogues. To ensure that the new strategy isn’t drowned out by day-to-day concerns, leading companies convert it into a set of manageable strategic initiatives that give the strategy both visibility and traction. One is to have the leadership team engage in a strategic workshop to articulate and prioritize—but not debate—the key questions that the company will have to answer in the next three to five years. Store Donor Data in Your CRM. They explore strategy at distinct time horizons. By emulating the four strategic-planning best practices, you can boost the ratio of insight to effort and align the organization around a strategy that is faithfully executed, constantly questioned, and regularly refreshed. However, the most common complaint we hear from nonexecutive directors (and boards in general) is that they are not sufficiently engaged in the strategy process to play a truly valuable governance role. Conglomerates. Even if their personal ideas aren’t adopted, they will feel heard, understand the rationale for the chosen strategy, and be prepared to support its execution. The Foundation has devel-oped best practices in select topic areas using a variety of sources, including, but not ... Strategic planningâs three main components are plan development, plan execution, and plan review. It’s about projecting more than five years into the future. Strategic planning is one of the least-loved organizational processes. The strategy department typically plays the role of process manager, providing support and keeping the team on course. Design â¢Prepare for quantitative (and more qualitative) data gathering 4. And the life span of the average company has halved since 1970. Recruit â¢Outline the approach for face-to-face engagement and story gathering 3. and 20,000 other business, leadership and â¦ Invest in Execution and Monitoring. Some even argue that strategic planning is a relic that should be â¦ A more sustainable solution is to follow the same process year to year but to refresh it with different questions each year. Beyond simple slogans, the classic cascading-memo exercise can also be quite powerful. Successful realization of the strategy would be tracked by upward movement on the chart over time. Nothing affects a school district more than its ability to create and execute a strategic plan. Another emerging approach is to leverage big data and advanced analytics for systematic market intelligence, including information that is hidden in unstructured data or local languages. By Cara Ong. As noted management consultant and writer Peter Drucker once said, “The most common source of mistakes in management decisions is the emphasis on finding the right answer rather than the right question.”, Great strategists—and great business leaders—have to learn the “art of questioning.”. With strategic planning—unlike sports or music—repetitive practice doesn’t make perfect. The other half—translating the strategy into results—can be even harder, particularly when the new strategy involves moves outside the core. (See “Die Another Day: What Leaders Can Do About the Shrinking Life Expectancy of Corporations,” BCG article, December 2015.) For the better part of a year, they collect financial and operational data, make forecasts, and prepare lengthy presentations with the CEO and other senior managers about the future direction of the business. Some sessions may focus on a deep dive into a critical initiative, for example, whereas others may concentrate on exploring an emerging threat, a new competitor, or a disruptive business model. Four Corporate Communications Best Practices To Learn From GE. An all-too-familiar story: A company spends productive time exploring exciting strategic options and making clear choices. (See the right side of Exhibit 2.). One organization that adopted a strategy to increase its share of wallet with individual clients found a way to sidestep the risk of misalignment on strategy. 1 March 2016. It’s hard to overestimate the importance of clear communication that promotes the strategy with a common, proprietary vocabulary. The right questions should be neither too broad (“How do we save the world?”) nor too narrow (“How do we price the next new product?”). In these cases, it is essential to have a strong executive sponsor and clear funding sources. These best practices are evaluated against the primary components of general workforce planning methods â Strategy, Whether youâre creating a new strategic plan from scratch or youâre trying to breathe life into an old plan, I bet we can both agree that healthcare strategic planning is a tough process. What new opportunities could arise and give the organization an opportunity to win? They constantly reinvent and stimulate the strategic dialogue. We tend to try to squeeze strategic â¦ By Fouad Bendris. The key is to match the rhythm of the process to the “body clock” of the sector. 1 1. After a few years, the new process In this 60 minute training, we will share best practices you can use to create a #StrategicPlan that your whole team can get behind. The authors describe how successful companies achieve better strategic planning: They explore strategy at... Keywords. Growth, ... AMA's Ask The Experts: Top Project Management Professionals Discuss Virtual PM Best Practices; View all Posts from this Blog. Looking forward, the company’s executives could see that an aging population and the fitness trend would provide strong tailwinds for a change in course toward the health care sector, while continuing commoditization would leave the traditional consumer electronics business at best becalmed. Acknowledgements. Mission Statement. One highly effective approach is known as the “W-shaped model,” and it begins with the center communicating the critical questions for the year to divisional and functional managers, who are charged to return with the answers, along with an update on progress against plan and a series of ideas—some bold and disruptive—for consideration. The memo charges them to write their own version for their team that expresses the strategy and what it means for their slice of the organization. Four Best Practices in Strategic Planning. When key managers at multiple levels are involved in the strategy process, they are more aware of the strategy and they feel ownership of it. They focus on analyzing the current market and current competitors, rather than searching for or anticipating disruptive new entrants or business models. It may take more than one cycle to address a question fully. Prepare â¢Convene a project team and review desired outcomes; check assumptions 2. Philips’s decision to shift its focus from consumer electronics to the health care sector is an example of this kind of thinking. Another powerful way to encourage the organization to embrace the new strategy is to identify quantitative metrics and goals that can measure progress. Tag(s): Strategy Development, Strategic Planning, Strategy Execution, Strategic Dialogue. It’s that most companies lack an effective strategic-planning process.