Tweed-Weber’s Strategic Planning Q&A

1) What is strategic planning?

 

Strategic planning is the process by which an organization envisions its future and develops the necessary procedures and operations to achieve that future. The basic steps of the strategic planning process include preplanning research, SWOT analysis, strategic assumptions, identification of key issues facing the organization, and the development of mission and vision statements, long-range strategies, strategic actions and operational objectives. Overall:

• Defining how you will differentiate your organization in its service area.
• Determining the direction in which your organization should be headed.
• Building change activities into the organization’s daily work activities.

2) Why should an organization do strategic planning?

The primary motive for organizations to do strategic planning is to make decisions based on preplanning research and purposeful thinking. There are many specific reasons for an organization to initiate a strategic planning process, including the following:

• provide a structure for management
• give the organization better control over external forces 
• serve as a tool for decision making and resource allocation
• develop a strategy for innovation so the organization can compete effectively
• bring everyone together in the organization so that they are on the same wavelength
• raise management/employee awareness of current issues and operations 
• reawaken and motivate key people within the organization 
• position the organization for a merger or joint venture 
• create a document suitable for fundraising and/or public relations 
• increase morale within an organization and develop a sense of trust and cohesion 
• set the stage for the organization to make a "quantum leap" to a new level of product/service development or functioning

3) What is the difference between strategic planning and annual planning?

Annual planning has an operational focus and is concerned primarily with concrete goal setting and the scheduling of specific tasks to meet these goals. It does not usually concern itself with an analysis of the external environment or the fit between the organization and the environment. Strategic planning gives explicit recognition to the organization’s outside environment and places an emphasis on the organization’s strategic advantage in meeting the contingencies in this environment. Although strategic planning also involves goal setting, it is broader in scope and much more comprehensive than operational planning.

4) How long does it take an organization to complete a strategic plan?

The amount of time it takes an organization to complete a strategic plan varies greatly depending on a number of factors, including; the size and complexity of the organization, past experience with strategic planning, accessibility of planning data, and time and availability of planning participants. In general, it will take an organization about two to three months to complete a strategic planning process.

5) When should an organization do strategic planning?

While there is no “right” time to do strategic planning, it is usually inadvisable to initiate a strategic planning process if the management team is extremely weak, if there are serious internal conflicts, or if top leadership has recently left the organization. There are advantages to doing strategic planning when the organization is in a relatively strong position, as management may feel more confident about undertaking a serious, in-depth examination of products and services. If things are going well, however, people may feel no real need to change. On the other hand, if the organization is in a state of transition and introspection, there may be more openness to a process of renewal and to consideration of a new direction for the organization.

6) How often does an organization have to redo their strategic plan?

It is a good practice to review and update the strategic plan on an annual basis. For most organizations, adjustments are made at the level of strategies and perhaps goals. Most of the time, changes would not be made on an annual basis to the language of the mission and vision statements unless there have been dramatic changes and shifts in the organization's external environment during the past year.

7) Who should staff the strategic planning activity?

There is no one right answer to this question that would apply to a broad range of organizations. It is typically a mixture of management and staff members. However, it is important for one person to be responsible for guiding and monitoring the process. Even if the group uses an outside consultant, it is still important that there be a staff person on the inside who works closely with the consultant and the strategic planning committee. Typically, this staff person is the president.

8) How much do you mix management and staff in planning?

In general, the planning process will be more productive if it includes participation of management and key staff members. In preparing to plan, one of the important steps is the establishment of the strategic planning committee. All members of the planning committee need to receive an orientation to the planning process so that they understand what strategic planning is, the steps involved, as well as the time commitment required. Beyond the strategic planning committee, other stakeholders can be involved in various information gathering activities including completion of surveys, participation in focus groups, and attendance at periodic review sessions.

9) When implementing the strategic plan, what factors most significantly enhance or inhibit that part of the process?

What is always most critical is the level of involvement that people have while developing the strategic plan. In general, if people are involved in the process in meaningful ways, they will be ready to do their part in implementing the plan that results from the process. The opposite is also true - if people whose involvement is critical to the successful implementation of the plan have not been involved in meaningful ways, they will not be excited about the plan nor will they be very motivated to take some responsibility for implementation.

10) How does an organization stay focused on its vision when there is a major change in the organization's management? Does the organization have to start all over?

If the strategic planning process and the development of organizational vision involved a wide circle of management and staff, it is less likely that a change in leadership will cause the organization to lose focus. You don't have to start over in most cases. In fact, having a strategic plan in place should help in recruiting the new leadership.

If you would like to learn more about strategic planning, give us a call. We can help you Know More, so you can Do More. Call us toll-free at 1-800-999-6615, email us at mail@tweedweber.com and/or visit us on the web at www.tweedweber.com. Also, be sure to follow us on LinkedIn (Tweed-Weber, Inc.) and Twitter (@TweedWeber).

A Metric by Any Other Name...

By Al Weber, President, Tweed-Weber, Inc.

 

For some time now, I have become increasingly aware of the use, or perhaps I should say misuse, of the word “dashboard” among managers and executives. I suggest misuse might be the more appropriate description because, as I think back to the first time I heard the term, it had a very specific meaning. That meaning defined the metrics on an organization’s dashboard as leading indicators for the organization. Much like the gauges and warning lights on an automobile’s dashboard, they would communicate what was going on within an organization in (relatively) real time. And as important, they would be immediately actionable. You could do something about them, in short order, to change them. More and more, however, I hear virtually ALL metrics being described as dashboard metrics, and when I look at dashboards, often proudly presented, I find them to be outcome measures or lagging indicators.

 

While outcome measures have value and should represent an effective rear view mirror look at an organization’s performance, they are not always helpful in generating short-term, quick response reactions to the current circumstances going on within that enterprise. Imagine how helpful (or perhaps unhelpful) it would be if, instead of a fuel gauge on your car, you received an automatically generated report stating you had run out of gas four times over the past calendar month. Even if this report had a cumulative year-to-date column and multicolor graphs and charts, you wouldn’t be any better off. Or what if you received a regular report letting you know that you exceeded the posted speed limit 308 times over the past 30 days? While that may only be and average of 10.26 times per day, how many of those events might have resulted in a long conversation with a state police officer?

 

Both a fuel indicator and a speedometer are perfect examples of dashboard instruments. Their jobs are to tell you when you are having a problem, not that you had one. If you know you have a problem, you can apply corrective action. If you don’t know you have a problem, and worse yet, you won’t know if you are having one in the future, all you can do is count the number of speeding tickets you have received and pay your fines in a timely manner to avoid additional penalties.

 

As you look at the metrics you are currently using to run your organization, you need to ask two key questions. 

1. Is the information your metrics provide real time (or as close as possible to real time) data?
2. Is the data actionable?

If the answer to either of these questions is “no,” you really aren’t looking at true dashboard indicators. You are looking at some form of outcome measures. You can call them Key Result Areas, Critical Measures of Success, or Key Performance Measures, but don’t confuse them with the dashboard indicators that precede, and often predict, your outcomes.

What can you gain from a Customer Perception Survey?

With the first day of fall comes the inevitable change of the world around us. The leaves begin to transform colors, the weather is up in the air (never knowing if it should be hot or cold for the day), and night comes faster than usual, but with every change comes a new beginning. This holds true with businesses as well.

As society changes, businesses must adapt to the differences, especially when dealing with transactions from customers. Understanding your customers is an important aspect to every successful business, and your ability to identify what makes them tick or what they need is always a number one priority. But how do you uncover these little tidbits of information? It’s easy; conduct a Customer Perception Survey. This type of survey allows businesses to measure customer loyalty, customer satisfaction, effective communication, and overall business trends.

Customer loyalty
When a person hears loyalty, they automatically think of being faithful, never straying. This also holds true in the business world. Businesses have to understand the magic behind the inner workings of their customers, since they are one of their biggest assets. This understanding consistently impacts the success of your business. A customer perception survey helps pin-point what customers like and what they don’t like about a business.

Customer satisfaction
A truly satisfied customer is one who doesn’t have any outstanding negative issues with a business, and one who will refer that business to others. In order to reach this magnitude, listening and following through are essential to maintaining the utmost satisfaction. Give customers a chance to voice their opinions about issues regarding a business, and then fix them.

Effective communication
An essential component to dealing with others is effective communication. When done properly, it gives a business the information needed to know what is and what isn’t working at that given moment. It also offers an opportunity for the business to let their customers know about any important changes or innovations in the company.

Spotting trends
Being able to spot a trend before a competitor is critical and could provide a significant advantage. Research can help with this. Although understanding customer satisfaction and loyalty are major drivers, capturing the wisdom of customers offers a business the upper hand in their given industry.

Along with these four areas, customer research allows businesses to critically evaluate their product development, determine product/service features, and determine acceptable price points. It also allows customers to voice their opinions about different strengths and weaknesses (their needs, wants, and expectations) and specific areas for improvement the organization should consider. It gives a business the chance to get into the minds of customers and evaluate what is important when adapting to the changes in society. But most important, customer research can increase sales! Utilizing the results of a customer survey can be incorporated into a business plan, and strategies can be developed to bring a business to their highest working capacity and potential.

If you’re wondering if a customer perception survey is right for you, we can help. Call us toll-free at 1-800-999-6615, email us at mail@tweedweber.com and/or visit us on the web at www.tweedweber.com. Also, be sure to follow us on LinkedIn (Tweed-Weber, Inc.) and Twitter (@TweedWeber).Like with fall, winter is around the corner, but when spring arrives, new growth begins. Now is the time to notice the changes within your industry and within your customer base, and remember that with every change comes a new beginning. No one can guarantee certainty, but market research can guarantee clarity. You will Know More, so you can Do More.