Posts Tagged ‘vision’

ProfitPATH’s Top Ten Blogs – First Quarter 2015

Tuesday, April 7th, 2015

Lessons about successful business growth1.  3 Lessons About Successful Business Growth

Two books, published 19 years apart, yet saying similar things about a key aspect of successful business growth:
‘Built To Last’ was published in 1994. In it, Jim Collins analyzed 18 companies that he called visionary because they were the best in their industries – and had been that way for decades. Collins argued that the core values and enduring purpose of all 18 could be separated from their operating practices and business strategies. And that, while the former never changed, the latter changed constantly in response to a changing world.
In her book ‘The End Of Competitive Advantage’, published in 2013, Rita Gunther McGrath studied the performance of large, publicly-traded companies from 2000-2009. She found that only 10 of them grew their net income by at least 5% every year. All 10 had found ways to combine tremendous internal stability with tremendous external flexibility. McGrath argues that to win in volatile and uncertain times, companies must learn to exploit short-lived opportunities quickly and decisively. more

time for a change in the direction you are heading, focus on center of compass...2.  3 Times When You May Need To Change Your Strategy

Changes to a well thought-out, well-crafted strategy shouldn’t be driven simply because it’s been in place 1, 3 or 5 years. A strategy shouldn’t necessarily be changed even if it isn’t producing results. In this situation I always look at how well (or badly) the strategy is being executed before I look at the strategy itself. So when should a company review its strategy? And what makes that review and any subsequent adaptation, revision or re-creation necessary? Here are three occasions. more

10 Commandments of Business Development3.  10 Commandments of Business Development

I’m not enjoying the after-effects of the 2007/2008 financial crisis. And I’m certainly not a fan of the banks, investment and other, which I believe were a significant contributor to the mess. But, while my wife may disagree, I like to think I keep an open mind. So when I saw an article talking about how Goldman Sachs grew from mid-tier firm to global player in a few decades I had to peek. John Whitehead, a co-head of the firm in 1970, wrote the following 10 commandments that guided their business development efforts. I love them. They’re full of common sense and they’re very practical. Written in 1970, these 10 commandments add to my belief that the basic, common sense principles of business never change. Here are 4 things that business owners today can take from them: more

4.  Adaptive Strategy – A Way To Profits In The New Normal?

Adaptive Strategy is an alternative developed by The Boston Consulting Group (BCG)¹. Here’s how I think it applies to owner managed businesses. Adaptive strategy is built on the 3 R’s required in a changing environment². Can adaptive strategy be applied in owner managed businesses? more

5.  6 Ways A Business Owner Can Influence Culture

I wrote last week about the relationship between Strategy, Culture and Leadership. As a result we’ve had some questions about how a business owner can influence the culture in his/her company. Here, in no particular priority, are 6 ways that it can be done. more

6.  The Difference Between A Strategy And A Plan

I want to talk briefly about what I think is one of the worst mistakes – confusing strategy and planning. Roger Martin wrote a post for the HBR last month in which he dealt with this very topic. I frequently hear business owners talk about the need to do “strategic planning” in order to create a “strategic plan”. Some talk – every year – about holding a “strategic planning meeting”. more

7.  6 Challenges Fast Growing Companies Face

I’ve mentioned Inc. magazine www.inc.com several times before. It’s a great resource. There’s a well-researched article in the current issue about 6 challenges fast growing companies face. They’re all about execution – and if the owner doesn’t deal with them well any one of them can be fatal. more

8.  6 Tips For Growing Your Business in 2015 – How to Use Them

I was asked a good question last week. “Loved your last blog post, Jim – but how do companies like mine do those things?” So here are some ways any business owner can implement the 6 tips in his/her company. more

9.  6 Tips For Growing Your Business in 2015

January is the month for New Year’s resolutions, freezing cold and, for many, a new fiscal year. Everyone wants to ‘do better’ in 2015 than in 2014 and, for business owners, ‘doing better’ is shorthand for growing. I don’t know how often, in the last couple of weeks, I’ve been asked something like “What are your top 6 tips for growing successfully”. The answer depends on a number of things. Here’s the rub. All 6 are much easier to talk about than do. But if you start on them now you can make some progress this year. more

10. 3 Reasons Why Strategy Isn’t Dead In The Water

I hate sweeping generalizations. Strategy is dead is one that I particularly dislike. To say that, it seems to me, is to say that it’s a complete waste of time for every company, regardless of size or industry, to have a strategy.
An article appeared in the Globe and Mail late last year, headline “Why Strategy is Dead In The Water.” It was based on an earlier article in Forbes magazine, headline “Is Strategy Dead? 7 Reasons The Answer May Be Yes.” We’d gone from strategy might be dead to signing its death certificate – in the space of two headlines. more

 

Jim Stewart is the founding Partner at ProfitPATH. He has been working with business owners for over 16 years to increase profits and improve the value of their companies. LinkedIn

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3 Lessons About Successful Business Growth

Tuesday, January 27th, 2015

Two books, published 19 years apart, yet saying similar things about a key aspect of successful business growth:Lessons about successful business growth

‘Built To Last’ was published in 1994. In it, Jim Collins analyzed 18 companies that he called visionary because they were the best in their industries – and had been that way for decades.

Collins argued that the core values and enduring purpose of all 18 could be separated from their operating practices and business strategies. And that, while the former never changed, the latter changed constantly in response to a changing world.

In her book ‘The End Of Competitive Advantage’, published in 2013, Rita Gunther McGrath studied the performance of large, publicly-traded companies from 2000-2009.

She found that only 10 of them grew their net income by at least 5% every year. All 10 had found ways to combine tremendous internal stability with tremendous external flexibility.

McGrath argues that to win in volatile and uncertain times, companies must learn to exploit short-lived opportunities quickly and decisively.

If you look at the things that Collins’ companies kept unchanged and those that gave McGrath’s companies their internal stability, you find, in my opinion, a number of similarities:

  • Collins’ companies all had a sense of purpose, a lofty aim. So did McGrath’s – to become world class. Neither talked about making money.
  • McGrath’s companies focus on values, culture and alignment. Collins’ had ‘cult-like’ cultures, only employees who shared their values stayed.
  • Collins’ companies invested in ongoing employee education, some building learning centres. McGrath’s also invest heavily in employee education and ‘upskilling’, increasing peoples’ internal mobility as the strategy changes.
  • The most senior executives in all 10 of McGrath’s companies were promoted from within. Collins’ companies showed amazing consistency promoting ‘home grown’ senior management and CEOs.

I think there are 3 lessons for the owners of smaller, privately-owned companies:

  1. Think about why you started the company. I’ll bet it was not ‘to make money’. Communicate that constantly, use it to shape the company’s values and vision, build your strategy on that foundation.
  2. Be clear about your values. Hire only people who share them and train those people to grow with you.
  3. View the company as something that can contribute to your community, long after you have moved on and develop people who will carry on your vision.

There are other lessons from these books. More on that later……..

 

If you enjoyed this post you’ll also enjoy 4 Things That (Positively) Affect Growth

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Jim Stewart is the founding Partner at ProfitPATH. He has been working with business owners for over 16 years to increase profits and improve the value of their companies. LinkedIn

Top Ten In 2014……

Monday, December 29th, 2014

The results are in!

Our top 10 blog posts in 2014 were:

1.   Adaptive Strategy – A Way To Profits In The New Normal? looks at an alternative strategy that is built on the 3 R’s (Responsiveness, Resilience, Readiness) required in a changing environment.

2.   6 Ways A Business Owner Can Influence Culture looks at the ways a business owner can develop a culture which will help increase operating profits and build shareholder value.

3.   6 Challenges Fast Growing Companies Face discusses the 6 challenges of execution which, if not dealt with, could prove fatal.

4.   3 Times When You May Need To Change Your Strategy explains when a company should review its strategy and what makes that review and any subsequent actions necessary.

5.   The Difference Between A Strategy And A Plan talks about the difference between strategy and planning and why it’s important to understand what these terms mean.

6.   6 Things We Can All Learn From Family-Owned Business puts forward 6 simple things business owners can implement to achieve better long-term financial performances.

7.  Use These 3 Tips To Make Your Next Critical Decision offers 3 things Ram Charan, co-author of “Execution”, says business leaders do when faced with a critical decision.

8.  5 Traits Effective Business Owners Share outlines some of the traits effective entrepreneurs have in common that contribute to the growth of their businesses.

9.  3 Reasons Why Consulting Assignments Fail and 3 Reasons Why Consulting Assignments Fail – Part 2 addresses the most common reasons why things can go wrong between consultants and their clients.

10. Strategic Planning – 3 Things That Are Wrong With It outlines how business owners make 3 mistakes that could destroy their company when they confuse strategy and strategic planning.

If you missed any of them, here’s another opportunity!

Can A Vision Still Get Results If You Call It Something Else?

Tuesday, July 29th, 2014

I use words like Vision or Mission selectively.A vision by any other name can still get results

I learned quickly, when I started ProfitPATH, that, while some business owners like them, others tune out immediately when they hear those words.

You can almost feel them physically withdraw from the conversation.

And I have no problem with that.

I suspect some entrepreneurs feel that way because:

  • In their eyes, the people who use terms like Vision and Mission have never actually had to deliver business results. They’re, typically, consultants and authors of business best sellers.
  • Anyone who has been very successful and uses language like Vision or competitive advantage runs a “large”, public corporation and so is totally unlike them.

You could argue they’re making sweeping generalizations – but they’re far from the only group of people who do that!

But what, for example, is a Vision?

Isn’t it just a picture of what a company wants to be in the future? Where the owner wants to take it? How it would like to be seen by groups like customers, suppliers, even competitors?

Over the last 13 years, I’ve learned that even the most skeptical business owners will agree that if you don’t know where you’re going, you’ll never get there.

So what matters more – the concept, or the words or label you use to describe it?

Isn’t there a risk that if we get too hung up on the label, we’ll turn our back on the benefits that flow from the concept?

There’s no doubt in my mind that having a clear picture of where you want your company to be, what you want it to look like, in 3 years’ time is one of the foundations for success.

Why am I so sure of that?

Alan Mulally is widely credited with turning Ford around. He was quoted recently as saying “What I’ve learned is the power of a compelling vision.”

He used the 2 words “One Ford” to focus a troubled, global company and produce 19 consecutive profitable quarters.

The 2 words were the tip of a more comprehensive picture, which was broadly understood and provided a compelling, actionable and clear direction.

Another example is John Kennedy’s vision for the U.S. in 1961 – to land a man on the moon and return him safely to earth by the end of the decade.

Few believed it possible at the time.

But we know what actually happened.

 

If you enjoyed this post you’ll also enjoy Strategies That Get Results Are Developed By Thinkers And Doers

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Jim Stewart is the founding Partner at ProfitPATH. He has been working with business owners for over 16 years to increase profits and improve the value of their companies. LinkedIn

ProfitPATH’s Top Ten Blogs – First Half 2014

Tuesday, July 15th, 2014

 

1.   6 Challenges Fast Growing Companies Face

I’ve mentioned Inc. magazine www.inc.com several times before. It’s a great resource. There’s a well-researched article in the current issue about 6 challenges fast growing companies face. They’re all about execution – and if the owner doesn’t deal with them well any one of them can be fatal. more

 

 

Strategy is not planning and the importance of knowing the difference2.   The Difference Between A Strategy And A Plan

I want to talk briefly about what I think is one of the worst mistakes – confusing strategy and planning. Roger Martin wrote a post for the HBR last month in which he dealt with this very topic. I frequently hear business owners talk about the need to do “strategic planning” in order to create a “strategic plan”. Some talk – every year – about holding a “strategic planning meeting”. more

 

3time for a change in the direction you are heading, focus on center of compass....   3 Times When You May Need To Change Your Strategy

Changes to a well thought-out, well-crafted strategy shouldn’t be driven simply because it’s been in place 1, 3 or 5 years. A strategy shouldn’t necessarily be changed even if it isn’t producing results. In this situation I always look at how well (or badly) the strategy is being executed before I look at the strategy itself. So when should a company review its strategy? And what makes that review and any subsequent adaptation, revision or recreation necessary? Here are three occasions. more

4.   Adaptive Strategy – A Way To Profits In The New Normal?

Adaptive Strategy is an alternative developed by The Boston Consulting Group (BCG)1. Here’s how I think it applies to owner managed businesses. Adaptive strategy is built on the 3 R’s required in a changing environment2. Can adaptive strategy be applied in owner managed businesses? more

5.   6 Ways A Business Owner Can Influence Culture

I wrote last week about the relationship between Strategy, Culture and Leadership. As a result we’ve had some questions about how a business owner can influence the culture in his/her company. Here, in no particular priority, are 6 ways that it can be done. more

6.   6 Things We Can All Learn From Family-Owned Businesses

The 6 things I’m going to talk about come from a study of 149 large, publicly-traded, family-controlled businesses. However, stay with me because we’ve seen the same characteristics in the successful family-owned businesses we’ve dealt with – and none of them are publicly traded. Another thing – the study looked at 1997 – 2009, covering some good and some very tough times. Guess what? The family-controlled businesses, on average, turned in better long-term financial performance than non-family businesses – in multiple countries. So what are the 6 things we can learn? more

7.   6 Tips For Finding The Right Buyer

Last week I was one of three speakers at the Toronto Star’s Small Business Club event, “Exit and Succession Planning”. My talk included 6 things a business owner can do to ensure she/he finds the right buyer or successor. more

8.   3 Ways Human Nature Sabotages Strategy

Ask 10 people how long it will take them to complete a task and I’d guess 7 or 8 of them will underestimate the time required. That proportion might increase if the 10 are all type A personalities – i.e. business owners or entrepreneurs. We see this when we take teams through our strategy and business planning processes. For example, at a specific point, we prioritize the things they need to do to close the gap between their company’s current state and where they want it in 3 years’ time. Typically the teams want to tackle more items than is humanly possible given their resources. There’s no ideal number of items – the complexity of each item is only 1 of the variables – but we’ve seen time and again that completing a few key tasks produces better results than taking on too many. more

9.   5 Traits Effective Business Owners Share

I believe the single biggest thing that separates companies that grow from those that don’t is the owner’s awareness of the need for change and their willingness to do so. So, I was interested in a recent post about traits that effective entrepreneurs share. Sure enough, it contained a quote saying that if owners commit to learning more about themselves and becoming the best that they can be, they’ll find that challenges are really opportunities. But what other traits, according to the post, do effective entrepreneurs have? more

10.  Strategic Planning – 3 Things That Are Wrong With It

We all know that picking a strategy means making choices. But that means making guesses about that great unknown, the future. What happens then if we make the wrong choice? Could we destroy a company? That’s why, according to Roger Martin¹, we turn choosing a strategy into a problem that can be solved using tools we are comfortable with. And we call that strategic planning. But, Martin says, companies make 3 mistakes when they confuse strategy and strategic planning. more

 

 

Jim Stewart is the founding Partner at ProfitPATH. He has been working with business owners for over 16 years to increase profits and improve the value of their companies. LinkedIn

Strategic Planning – 3 Things That Are Wrong With It

Tuesday, February 18th, 2014

We all know that picking a strategy means making choices.3 things wrong with strategic planning

But that means making guesses about that great unknown, the future. What happens then if we make the wrong choice? Could we destroy a company?

That’s why, according to Roger Martin¹, we turn choosing a strategy into a problem that can be solved using tools we are comfortable with.

And we call that strategic planning.

But, Martin says, companies make 3 mistakes when they confuse strategy and strategic planning.

1.  Putting the cart before the horse:

All strategic plans have 3 parts:

•  A vision or mission statement,
•  A list of initiatives required to achieve it,
•  The results of those initiatives expressed as financial statements.

These financials typically project 3 – 5 years into the future, making them “strategic” (although management typically focuses on only the first year’s numbers).

But the dominant logic in these plans, says Martin, is affordability; the plan consists of whichever initiatives fit the company’s resources. And that’s putting the cart before the horse.

2.  Relying on cost-based thinking:

The company is in control of its costs – it can, for example, decide how much office space it needs and how to promote its products.

And costs are known, or can be calculated, so fit easily into planning.

This thinking is extended to revenue forecasting and companies build detailed, internal forecasts by, for example, salesperson or product.

But these projections gloss over the fact that customers control revenue and that they decide how much a company gets.

3.  Basing strategy on what the company can control:

A number of well-known models are used for strategic planning. But they can be misused. Take Mintzberg’s concept of emergent strategy.

Martin believes it was intended to make business owners comfortable making adjustments to their deliberate strategy in response to changes emerging in the environment.

However, because waiting, and following what others are doing, is much safer than making hard choices and taking risks, emergent strategy has been hijacked to justify not making any strategic choices in the face of unpredictability.

But following competitors’ choices will never produce a unique or valuable advantage.

What do I think?

I like Martin’s views but the crux still lies in linking planning to execution, turning desire into results.

__________________________________
“The Big Lie of Strategic Planning”, Harvard Business Review, January 2014,
http://hbr.org/2014/01/the-big-lie-of-strategic-planning/ar/pr

 

If you enjoyed this post you’ll also enjoy Bad Strategy – How To Spot It

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Jim Stewart is the founding Partner at ProfitPATH. He has been working with business owners for over 16 years to increase profits and improve the value of their companies. LinkedIn

4 Common Mistakes In High-Stakes Decisions

Tuesday, November 26th, 2013

I saw a business owner do and say some things in a meeting today that made me think of an article I’d read recently.4 common mistakes business owners make in high-stakes decisions

The company is developing a product which will be the first of its kind. It’s for a market the company has never played in. And the product will fill a need the users don’t know they have.

Challenges don’t get much more complex or high-stakes.

The owner is a smart, well-educated professional.

She’s also a born entrepreneur. All the signs are there. A vision that, if she’s right, will transform an industry. Passion that is breathtaking and inspiring. An understanding of how to use technology that is unique and innovative.

She has a willingness to take risks that would cause lesser mortals to hesitate. But also an apparent refusal to consider that she could be wrong.

Which brings me to the article. It’s a well-researched piece on why high-stakes decisions go wrong. It describes 5 mistakes that account for the vast majority of poor decisions.

And I saw 4 of them being made this morning.

The first mistake is an inability or failure to understand the complexity of the problem.

This owner has been successful in the past and is convinced her vision is transformational. Perhaps as a result, she seems unable, or unwilling, to grasp that she has to overcome 3 separate marketing challenges – new product, new market, unknown need – each of which is risky and complex. And she’s taking on all 3 at once!

The second is failure to consider alternatives. Her marketing company laid out several different alternatives for getting the message to the target market.

They recommended using social media because the results of a campaign can be measured quickly and accurately. The owner insisted on traditional media because of her conviction it would be most effective.

The third mistake is failure to consider opportunity costs. The marketing communications costs could be covered, the owner said, from an existing revenue stream.

But because that revenue has been flowing into the company for some time, the funds are probably being used to cover existing expenses.

Diverting them to the new opportunity may appear to be a “freebie”. But the company could face additional costs if it has to increase its line of credit to pay existing expenses.

The fourth is underestimating the challenges involved in execution. At least the owner is thinking it will take 6 or more months to launch the new product.

But that’s not going to be enough. And I’m not alone in my estimate. Another experienced supplier told the owner the same thing. She did, however, appear to pay attention to that warning.

Is this project doomed? No it’s not.

The owner has her ego under control, she’s not irrational and is willing to listen. Her enthusiasm is what’s carrying her along for now.

And that’s understandable because she has a great idea!

I’ve changed a few details, by the way, to respect those involved.

You can read the full article here.

 

If you enjoyed this post you’ll also enjoy A Vision – Is It Worth Investing The Time?

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4 Rules For Succeeding In Business

Tuesday, September 17th, 2013
J.P. Lemann's 20 Rules For Succeeding In Business

Photo by Alan Marques/Folhapress

I’m ashamed to say that I’d never heard of him.

So I didn’t recognize the name of the man who partnered with Warren Buffett to buy Heinz earlier this year.

He’s Jorge Paulo Lemann. His company bought Anheuser-Busch in 2008 and Burger King Holdings in 2010 and his personal fortune is estimated at $17.8 billion.

So when he speaks, I figure it’s worth listening.

His “20 Rules For Succeeding In Business” were published recently – and the word “people” appears in 6 of them.

Here are 4 that can be applied by all business owners.

1.  “The main function of the heads of a business is to choose people better than them to keep the company going even without its leaders.”

Two phrases really stood out for me.

“Choose people better than them”. Some owners miss the point here. It’s not about hiring people who are better owners than they are. It’s about hiring people who are more knowledgeable/skillful at running an aspect of the business than the owner – so he/she can focus on doing what only she/he does best.

“The main function” means not when you’ve done everything else; not when you get around to it; and not because you have to. But because it’s the most critically important thing an owner can do.

2.  “Common sense is worth a lot and more than complex ideas. Simple is always better than complex.”

Wasn’t it Stephen Covey who said something like the remarkable thing about common sense is that it isn’t all that common?

A management team was discussing a recently introduced incentive plan. There was concern that they had not clearly defined the action which triggered the incentive.

To bridge 2 opposing views, splitting the incentive amount over several actions was suggested. This, in my opinion, made the value of the initial “prize” meaningless and added complexity to what needed to be a simple “do this and win” situation.

Fortunately they didn’t do it.

3.  “Always reduce costs. That’s something that is under your control and ensures survival.”

During strategy development – the SWOT analysis – we highlight the things business owners can’t control. Costs and expenses are 2 things that are under their direct control.

A constant focus on managing them, and making sensible reductions where possible, will go a long way toward success.

4.  “A big, challenging and common dream is essential, and it helps everyone to work in the same direction.”

Call it a Vision or call it by any of the other terms used in recent literature, what matters is to have one.

Note he says “common” dream. It’s something everyone in the company is invested in. That means they felt they had input and they understand what their part is in achieving it.

To see all 20 of Lemann’s rules go here.

 

If you enjoyed this post you’ll also enjoy A Vision – Is It Worth Investing The Time?

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Putting The Horse Before The Cart – That’s Strategy!

Tuesday, April 16th, 2013

According to Ken Favaro¹,  we often confuse “some version of a vision, a mission, a purpose, a plan, or a set of goals for a strategy”.Develop a strategy first, then execute it

Why is that important?

While these 5 things (he calls them the ‘corporate 5’) play a part in the execution of a strategy they “do not give you” a strategy.

Surprised?

To quote Favaro, “If the corporate five are the cart and strategy is the horse, leaders who put the cart first often end up with no horse at all.”

Or in my words – you’ll get better results (higher profits, a better valuation) if you first develop a strategy and then execute it – not the other way around.

In the interest of full disclosure Favaro said that corporate executives are guilty of this type of confusion.

But, guess what, in our experience the owners of family businesses and privately-owned companies are just as guilty and do exactly the same thing.

Favaro says there are 5 more fundamental questions (the ‘strategic 5’) that have to be answered before worrying about visions, plans and goals:

• What business should we be in?
• How do we add value to our business?
• Who are the target customers?
• What is our value proposition for those target customers?
• What capabilities are essential for adding value and achieving differentiation?

There’s a reason this is way more than just interesting.

Roger Martin talks about² strategy being “an integrated set of 5 choices” which are made by answering 5 questions:

• What’s our winning aspiration (or the purpose of the business)?
• Where will we play (which cities/provinces/countries, for which end users)?
• How will we win (what is our value proposition or competitive advantage)?
• What capabilities must be in place?
• What management systems are required?

See any similarities?

Martin and Lafley also talk about what strategy isn’t. They say that many leaders (thus including entrepreneurs/business owners) approach strategy in ineffective ways, for example they define strategy as a vision or as a plan.

Again, see the similarities?

Yes, I am back on the topic of the many and incredible ways in which the word strategy has been, and still is, misused. And I love it when people agree with me. Particularly when their reputation (or at least their profile) is bigger than mine.

But why should anyone who makes a living in the real world care?

Because more business owners will make better profits and add more value to their companies if they get better at executing their strategy.

And the first step is to be clear about what strategy is.

                                                                        

¹ “How Leaders Mistake Execution for Strategy (and Why That Damages Both)”, Strategy + Business, 11 February 2013
² “Playing To Win”, A. G. Lafley and Roger L. Martin, Harvard Business Review Press, 2013, pages 3 – 15

 

If you enjoyed this post you’ll also enjoy Strategy Made Practical

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5 Great Planning Tips

Tuesday, February 5th, 2013

It’s always gratifying to hear a third party make exactly the same point you’ve been making – particularly if you’ve never met them.

It’s even better if they’ve been successful or have a higher profile than you do. That makes it satisfying as well.

By now you know where I’m going with this. Yes, that has happened to me a couple of times recently.5 great planning tips that will bring results

A few days ago I was reading a blog post which started “The key to effective leadership is to have a picture in your head and communicate that inspiration to your team…”

That is exactly what we get the business owners and management teams we work with to do. The first part of our process is to have them build a picture of what their company will look like in 3 years.

I want to share the rest of Jason Beans’ post because he gives really good, practical advice. But I differ from him on a couple of concepts so let me make those clear up front.

Jason talks about creating a plan, a document. We talk about planning, a process. He looks out 5 years. We stop at 3 years because I believe that’s as far into the future as you can make realistic, useful assumptions in our fast changing world.

That said, I think Jason’s 5 tips are great. So here they are:

1.    Write or speak in the present tense. Instead of saying “In 3 years we will….” say “We are…” Sounds a little hokey but try it. You will be surprised at how good it makes you feel. And it’s a little like the visualization top class athletes do before they begin their game or competition.

2.    Be specific about the outcome. We focus business owners and their teams on specific aspects of their company and tell them to describe them in as much detail as they would use for a picture of one of the happiest events of their lives. Jason has a nice twist. He suggests using analogies, e.g. “We are likened to……..the innovation of Google, the performance of a BMW and the security of a Volvo.”

3.    Stay General on How. He provides a great lesson for entrepreneurs. You don’t have to tell your team how to turn the plan into results. They will do that for you. First of all, they will surprise you with the great ideas they come up with. And, secondly, while working out the “how” they will buy-in to the outcome and become committed to making the process successful.

4.    Inspire. I mentioned we tell business owners and their teams to build a picture of the company in 3 years’ time. Before starting them off, we ask them close their eyes and picture one of the happiest times of their lives. We use this analogy for 2 reasons. We recall happy times in great detail. And “seeing” them again triggers strong emotion in us. We want that level of detail and that passion at work when they describe the company in 3 years. Jason describes other techniques for inspiring people. It doesn’t matter which you use. Inspiring people matters.

5.    Be Bold. Set a lofty, yet attainable, target. Aim for leadership in your market or industry – don’t settle for being one of the herd. Despite my comment earlier, if a business owner gives his/her team a glimpse of his/her vision of the company in 10 or more years it can provide context for the planning exercise.

Jason finishes off by talking about communicating the plan. We believe good, clear, frequent communication is critical to turning the plan into results and, therefore, a vital part of the process.

If you want to read Jason’s full post you can find it at 5 Steps to Creating Your Best 5-Year Plan.

If you enjoyed this post you’ll also enjoy Have You Ever Seen A Business Plan That Worked?

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