Sustaining Business Newsletter

Strategic Planning Misconceptions
By Jennifer S. Hendrickson

Publication Date: September, 2010

Summer vacations are over, kids are back in school and for many businesses it’s time to gear up for strategic planning.  This edition of Sustaining Business will address three major misconceptions some have about strategic planning.

Misconception #1
Only big businesses need strategic planning.

Reality:  Every business needs a strategic plan.  A lack of proper planning is one reason why many companies fail.  Every business, from the smallest to the largest, needs to know three things:  What they do, who they do it for, and how they succeed at it.  Sounds easy, right?  It is not.  The market changes, the economy changes, the rules change, and a business must have a plan to change with them all.  Conventional business wisdom subscribes to the “1/3 Theory” which states:  1/3 of businesses turn a profit; 1/3 of businesses simply break even and 1/3 of businesses are in a negative earnings situation.  Think about that.  If 100 businesses were in the deep end of the pool, 33 would be barely staying afloat and 33 would be drowning.  Strategic planning is such a comprehensive process that if done properly (and we can help), you can greatly increase your chances of success.

Misconception #2
My business doesn’t need a formal, written plan – it’s all in my head.

Reality:  Even the best pro golfer has a caddie providing guidance and helping him to read the course.  If your business is a one-person operation, you may simply need to brainstorm with your trusted advisors and put your plan down on paper.  Documenting it will help you stay on track when there are several projects competing for your attention.  If you have more than one person in your business you need to remember that your employees can’t read your mind and if that’s where the plans are stored – well then….  Your team likely has valuable insights to share if you provide them with the opportunity.  By including your staff in the planning process and sharing the final plan with them, you ensure that everyone has the opportunity to provide input and that everyone knows what they’re working toward.

Misconception #3          
Planning doesn’t involve too much – I can wing it.

Reality:  “Planning to plan” sounds redundant, but there’s a definite need for it.  It’s not enough to have strategic planning as a line-item on your staff meeting agenda.  You and your key personnel need to come to the dedicated strategic planning session free from major distractions and ready to focus on guiding your business.  You need two things to keep you from winging it:  Professional facilitation and good data.  If you lead your own strategic planning sessions, then you won’t be able to effectively participate.  A professional facilitator won’t easily get sidetracked with minutiae and won’t fail to ask the hard questions. The second thing is good data.  Too many times a business will decide to engage in planning, but they end up pulling key stakeholders together only to talk about what employees and customers feel and think.  Conjecture is no basis for business planning.  We often recommend conducting research before entering the planning session so your decisions are based on facts – not guesses.

Over the years, our clients have had nothing but praise for our thorough and insightful strategic planning processes.  To join the ranks of successfully planned businesses, contact us today.