Issue 21 March 2, 2004

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In this Issue:

Are You Planning Strategically?

Information from the Department of Commerce indicates that nearly 20 million new businesses were formed in the past five years. Today about fiver percent of those businesses are still in operation. It is a fair guess that of the ninety-five percent of those businesses that did not make it, none of them planned to fail. But it is also an accurate observation that the majority of those that failed did fail to plan.

Whether a business is just starting or if it has been in business for quite some time, planning is a crucial element in the success of any business. Most business owners have some sort of plan in mind when they form and operate their businesses. The most successful ones have developed a strategy that assures that the plan is executed. This type of �Strategic Planning� is often the difference between success and failure for a business.

The term �Strategic Planning� might conjure up images of a complex detailed plan that is best prepared and understood by highly trained business analysts. But the most effective Strategic Plans are those that are prepared by the business owner or principal and other key stakeholders. Such plans are easily understood and communicated, and can be deployed to all levels of the business.

Strategic plans will vary with every different business for which they a developed. But the best plans have very similar elements and the planning process is much the same:

Start with a Vision. A Vision is a mental picture of what you want the business to be at some point in the future. Since Visions deal with future events they are often somewhat vague and lack a lot of details. The purpose of a vision is to provide direction; it serves as your compass in guiding you through the planning process.

Define a Mission. The mission defines what the business needs to accomplish within a specific time period (usually 2-3 years) in order to keep it moving in the direction defined by the vision. Where your vision serves as your compass or guide, the mission establishes your course. The most successful businesses are those in which every member of the business knows what the business mission is, and what his or her role is in achieving that mission.

Establish Goals. Goals are those important elements that separate vision from hallucination. Without goals you may find your plans are really nothing but daydreams. Goals define specific results that must be accomplished to keep you on your course, they act as milestones on the business journey. Effective goals cannot be vague or uncertain, they must be Specific, Measurable, Achievable, Relevant and Time constrained (SMART goals).

Define Action Steps. Goals are only achieved by the actions of the various individuals responsible for carrying them out. Action steps must be specific, they must be directly linked to the goal they support, and they should be assigned to the proper individual responsible individual for carrying them out and should have a target date for completion. Action steps are those necessary activities required to steer or navigate the business along its course to success.

Revisit you plan regularly. The most foolish thing you can do with a plan once it is completed is to put it on a shelf and forget about it. You must regularly review you current situation in relationship to the plan and make adjustments accordingly. The best navigators are those who regularly check their position relative to their destination and make changes to stay on course.

Running a business, an organization or even your own life can be a complex and daunting endeavor, and success is never guaranteed. But defining and implementing a plan for success is always a good step to start the journey.

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John Yost

ProCompass Management Services

(831) 438-7833

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