Annual Strategic Planning is Essential

Many startup companies, and mature companies as well sometimes minimize the importance of annual strategic planning.  This is particularly a challenge when everything is going so well.  I can personally admit, I have been guilty of not giving this task its due attention, in previous companies that I have led. However the old saying is true, “a goal without a plan, is simply a wish”. Many companies try to “wish” their company to success.

When I was in the CEO group, Vistage for almost a decade, we had strategic offsite group meetings each month and their slogan was “a day to work ON your business instead of working IN your business”.  This is especially true when conducting your annual strategic planning meetings.  First off, they should ALWAYS be offsite.  It doesn’t have to be an exotic location (although those are nice for the team once in awhile), but it needs to be away from the office and clear of distractions.

A mistake many companies make is not taking the time to do the extensive preparation that needs to take place before the meeting – defining objectives, structure, scope of topics (don’t overload), participants attending, outside experts, etc.

The structure of the meeting is also key.  For startup/early-stage companies, there is a simple framework I have used previously called Rockefeller’s One-Page Strategic Plan.  If you search the internet for that term, you will find it. It is a concise document that forces decisions like financial targets, priorities, key initiatives, and also has something called a BHAG (big hairy audacious goal).

This is a term that was coined by Jim Collins and Jerry Porras in their book, Built to Last: Successful Habits of Visionary Companies. (a great read) Although the name is interesting, it refers to that really ambitious, long-term goal which may seem unattainable. An example could be “our product is going to replace the need for airplanes”. However this can only be your BHAG if your company’s strategy is inline with replacing this mode of transportation, otherwise it is useless.

“Most people overestimate what they can do in one year and underestimate what they can do in 10 years.” — Bill Gates

Whether you use a really in-depth framework for your annual strategic planning or use something as simple and effective as the one page strategic plan, by Changing Your Lens one can see the most important thing is take this time to focus on being strategic (not tactical) and improve your business.

I work with a lot of my clients on their annual strategic planning. If you need help putting a great strategic session together with your team, please reach out to me.