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Making the Most of Your Strategic Plan

2009 | Oct 21 in Business Development , Home Page News , Leadership

By E-Myth Business Coach

One of the cornerstones of the E-Myth philosophy is the need for strategic planning. The fact is that most small businesses fail to grow because they lack a strategic plan to realize their vision. And if that were not distressing enough, another fact that plays a part in this failure is the lack of effective implementation once a plan is developed.

When considering your strategic plan, the first question you must answer is what, exactly, do you want to accomplish? Once that has been determined you will then need to develop your strategy for making it happen. As the old adage goes, “Plan your work and work your plan.”

Planning Your Work

For a small business, a strategic plan is essentially a step by step guide to map out how it will reach goals and objectives. It starts with a vision of what the business will be and how it will function in the near future, typically 3 to 5 years out. The plan also serves as a systematic management tool for implementing the strategies. The goal is to integrate every aspect of the business into a systemic approach for achieving the vision of the business.

Although individual strategic plans may differ in some of the details, here are 10 basic elements that should be part of every plan:

Define your mission, your vision and your values
Conduct an analysis and resource assessment
Establish your goals and objectives
Determine your strategies for accomplishing your objectives
Conduct your action planning
Create your organization and staffing plan
Develop an operating budget
Create strategic tools to measure and quantify progress
Identify the support needed to accomplish your mission
Communicate your strategic plan to the entire organization

One of the keys to successful strategic planning is to involve everyone in the business, to some degree, in the planning process. Employees are vital to the strength and success of any business enterprise, and the business owner alone cannot effectively run the business – nor carry out the strategic plan.

Working Your Plan

Now that you have your strategic plan, how do you implement it effectively? This is the fate of far too many small businesses – creating a beautiful document that eventually ends up in a file collecting dust while the business stumbles along much as it always had. What’s often missing is effective communication of the vision and strategies to the employees, and the ability to translate strategy into tactics.

Often referred to as action planning or tactical planning, this phase of the strategic planning process is crucial to implementing the overall strategy of the business -- for bringing the vision to reality. A tactical plan drives the execution of the strategic plan across the entire organization. As each department completes their action plans to work “on” the business, they accelerate the success of the strategic plan.

A tactical plan essentially lays out the plans and procedures for getting to the defined strategy. It will involve the scheduling of immediate or short-term activities that are required to achieve the objectives of strategic planning. For example, let’s say your strategic plan is to become a market leader in gourmet organic foods. The tactical plan might include hiring a well-known chef as the brand ambassador for the company, setting up a retail store in an upscale area of the city, and obtaining an organic food certification.

Aside from the specific plans for each function of the business, documented procedures and systems will be required to ensure their effective implementation. The tactical plan might specify the following:

The goal, or result, to be accomplished
How the goals will be achieved
How these goals contribute to the overall strategic goals
Timelines for achieving the goals

Leadership and Communication

It is true for professional sports and it is true for a successful business: if an objective is to be reached and the strategic plan carried out for reaching that objective, then someone has to “be in charge” and everyone needs to know the “game plan”.

The bulk of the leadership role in many small businesses falls upon the owner or owners. The bottom line, whether it is the owner, a manager, or a key employee, is this: someone must take the reins for seeing the strategic plan through to completion. And a large part of the accountability for that leader is implementing and orchestrating effective communications with everyone involved. Having a communications strategy is essential for the successful implementation of a strategic plan and the subsequent tactical plans.

According to an article in the Graziado Business Report published by Pepperdine University, the following keys are critical for a communications strategy:

Developing a big-picture communications strategic goal. You mission or vision statement will be helpful here.
Clearly defining your communications objectives. These may change over time or in some areas, so appropriate adjustments will need to be made.
Identifying critical communications tactics. Ask the question, “What do you want to get where?” This can provide data for feedback and evaluation.
Creating a feedback system. Real-time information of progress compared to objectives will allow for needed adjustments or improvements.

A strategic plan is essential to the success of any business, but how it gets implemented will determine how successful the business becomes. Having a clear vision isn’t enough – you must also have clear objectives, a strategy for attaining them, and the tactics and communications to see it through.

Share Your Story

Do you have a strategic plan? How do you communicate that plan and keep on track. Post a comment and tell us about it.

We Can Help You Get There

One of the most common frustrations we hear from our clients is that they can't seem to get their head out of the business long enough to work on the strategic planning that's so important to the ultimate success of their businesses. If you're one of those business owners, we invite you to contact us today for a free Business Consultation and to learn more about working with an E-Myth Business Coach.

Comments

john k. says:

I know you can help, but I am too far- in Nairobi, Kenya East Africa( where Obama was born. Meanwhile I will read your books.

Regards,

John

Submitted Oct 21, 2009 9:54 AM
Andrew S. says:

Before I even started my company is when I developed my Strategic Plan. However, the longer I run this company, the further away from that plan I find myself.

I'm not necessarily saying thats a bad thing since we have to adjust to market conditions.

The worse thing is that I'm missing the "Strategy" from my "Strategic Plan" ... Regardless, E-Myth has been vital to my organization and the foreseeable future of my Company.

Submitted Oct 21, 2009 9:55 AM
Eileen C. says:

I am a believer in the E-Myth philosphy. However, the last time I checked, one was unable to work with a consulting team until AFTER operations began.

I am still in the planning stages and could use help. Do you have anything to offer in the pre-operations area?

I hope you have something available but caution you that cost is a big factor with me as is time. My present position allows me 26 weeks to work on my business, not the usual 52 most people have.

The business plan is complete, and I am beginning work on the strategic plan, and a marketing plan has yet to take form.

I look forward to your response.

Thank you.

Submitted Oct 21, 2009 10:01 AM
Paul C. says:

What is a strategy anyway? Having problems wrapping my head around that.

Submitted Oct 21, 2009 10:15 AM
Peter S. says:
A Business Strategy answers 3 basic questions:
1. Who are our customers?
2. What needs of our customers do we want to fullfil?
3. With what tools do we plan to fullfil our customers needs?
A Business Strategy is supported by specific Action Plans that are important in carrying out the Business Strategy. The Action Plan answers the following questions:
1. What should be done?
2. What is the expected result?
3. When should it be done?
4. Who is responsible?
5. With what resources should it be done?
The trick is of course how to answer these questions and if you are a Business-to-Business unit manager you may find some assistance in taking a look at my blog; "Strategy on-line".

I suggest that you start with Part 4: "3 ways to create customer value":

www.strategyonline.blogspot.com/2008/01/3-ways-to-create-customer-value.html

Regards

Peter Sorensen
Submitted Oct 21, 2009 11:17 AM
Paul C. says:

Thanks Peter. I'll check it out.

Paul

Submitted Oct 21, 2009 11:57 AM
shadrack i. says:

Strategic planning is like drawing out a map to a certain location and without this map you will actually be gropping about,wondering arround,without getting to your destination.This map will have the valleys and the mountains,that have to be overcome, and will include ways of overcoming these.There are also directions of how to move from from one point to another in order to eventually reach your destination.

The basic aim is to succeed in bussiness and once you have idetified the bussiness, then you draw the map, i mean you putup ways of doing that particular bussiness in such a way that anybody can be able to do it for you in your absence.

thanks for eye - opening ideas.

Submitted Oct 21, 2009 12:10 PM
E-Myth Business Coach says:

@ Eileen.

Congratulations on starting your entrepreneurial journey! How exciting.

If you are seeking guidance before you have actually “opened” for business, understanding the E-Myth business approach will help you create a strategic plan that will work with you through the business stages and implement the necessary processes to achieve your goals.

A business plan is essential as you do the foundational work starting your business. I’m glad to hear that you’ve started there. We do offer a virtual training event about the creation of a strategic and holistic business plan; I’d urge anyone starting a business to consider taking Business Plan 101.

If you are interested in coaching, we do offer a group coaching environment that many start-ups have taken advantage of. You can learn more about our group coaching program here.

Best of luck and please keep in touch.

Submitted Oct 21, 2009 12:28 PM
Willis J. says:

I need help marketing loans to small businesses with less than great credit. this are loans base on credit card receipts.

Submitted Oct 21, 2009 6:23 PM
Felix N. says:

I am interested in what you offer as advise and coaching to business and would be business men and women. I am in Yaounde, Cameroon. I have a passion for real estate, ie land development, residential and comercial buildings. How can I profit from the rich experience of E-Myth?

Thanks.

Submitted Oct 22, 2009 1:41 AM
E-Myth Business Coach says:

@ Felix

The E-Myth approach to business will guide you in building your entrepreneurial vision and company. We have many programs available for start-ups including the Business Plan 101 virtual training and E-Myth Online. This page may be of interest to you: http://www.e-myth.com/pub/htdocs/aspiring

A business plan is essential as you do the foundational work starting your business. We're here to help you along the way. Don't hesitate to contact us for more information. Find a way to integrate your passions with your entrepreneurial spirit!

Submitted Oct 22, 2009 9:19 AM
mark R. says:

Strategic used to be 5-10 years, now it can me as little as 6 months to a year. As I was starting my my business, my strategy changed several times. And then as the recession hit, creating value based marketing plans became more visible and the strategy I had grasped too hold. It is fluid, there are some basics that will flow, and others that will need to be reworked such as org chart and budget.

Bottom line, don't follow your strategy blindly, as the market and competition you must shift or be left behind. I personally believe that your vision should also direct your strategy, for that is where you want to ultimately land.

POWER ON!

Mark

www.atomicpenny.com

Submitted Oct 22, 2009 2:15 PM
Waridi O. says:

Thanks I want to start a business as a starter will go through the Business plan 101 virtual training and E-Myth.

Is is true that small business dont work out,

Submitted Oct 23, 2009 6:13 AM
Ed L. says:

This is is really good article and outline.

Our company is a startup and it happens that we make online strategic plan implementation software for small and medium businesses and enterprise companies. One of the things that we have done is document for all to see our strategic plan implementation as a company. You can see some of the blog posts we have done here:

http://www.rapidinfluence.com/blog-0/bid/9631/It-s-strategic-planning-dogfood-time-Part-1

http://www.rapidinfluence.com/blog-0/bid/10381/How-we-created-and-implemented-our-social-networking-strategy

In this we covered how we determined what a startup company needs to do and how we approached it. We covered all kinds of topics such as how we determined what our sales and CRM strategy should be as well as our social networking strategy.

We've done this in hopes that people will be able to look at a plan in action and be inspired to not have their plans sit on the shelf.

Thanks,

Ed Loessi

http://www.rapidinfluence.com

http://twitter.com/rapidinfluence

http:..twitter.com/edloessi

Submitted Oct 24, 2009 10:01 AM
Gayle T. says:

Thanks, the worse thing is that you know all the right things to do. The problem is just getting started.

I have made a plan on when, where and how to start.

thanks

Gayle T

Sweetheartz the party place

Submitted Oct 26, 2009 7:26 PM
chris a. says:

Strategic planning is great textbook stuff but, for most start-ups there are so many unknowns to deal with that strategic planning becomes nothing more than an academic exercise. Profitable growth comes from following the path of least resistance. Your business strategy is based on learning to see the path. What customers and products sell easier than others? What customers and products lead to repeat sales? What customers and products generate the most profit?

Create a plan but don't get lost in planning or raw action. Evaluate your actions based on the results they generate, the customers and products that work, and learning to understand why.

Chris

http://www.bizmanualz.com

Submitted Oct 26, 2009 8:58 PM
RACHEL W. says:

The old addage that says "Plan your work then work your plan" is so true! But all too often life interrupts and prevents us from working the plan the way we want to and should. Then the frustration sets in! The only way I have found to work the plan is by setting small tasks, goals, that when combined equal the BIG picture. Then every day I make myself accomplish that day's assigned task. The feeling of having accomplished something that day gives me the boost I need to work the plan again tomorrow.

Submitted Oct 28, 2009 8:40 AM
Carol M. says:

We are currently working on another strategic plan that includes our existing clients.. getting them involved in our "buy in" - for the changes we plan to make and expand upon.

<a href="http://carebuzz.com"></a>

Carol

Submitted Nov 8, 2009 12:41 PM