January 2010: Strategic Planning

OOMPH: Why is strategic planning so important?

JUDI HUGHES: To thrive and grow, a business needs a vision: where are you going? What are you looking to achieve? What do you want the company to look like? What do you want people to think about your firm?

Step back from your day-to-day work and the running of the business to think about your company’s vision, so you can begin to identify the steps you must take to make it a reality. This is the start of your strategic action plan and without one your vision will remain just a bunch of good ideas. You need to know what to do to get to where you want to go.

As well, a plan helps to keep you on track and prevents you from ending up somewhere else. Staying focused is not easy – people get excited about a new idea, a client, an opportunity, or an unexpected problem or challenge pops up and they get side tracked. This is especially challenging for owners of small businesses and sole practitioners who must handle several business areas at any given time. If you have a plan, you’re able to refocus much more quickly and get back on track after dealing with the distraction.

OOMPH: What are the key components of a strategic plan?

Gap analysis is important because it often reveals major misalignments between day-to-day operations and a company’s intended direction. It sounds surprising, but I often meet people whose daily work and activities aren’t relevant or related to their goals and, in some cases, their actions are actually diverting them from achieving their long-term goals.

OOMPH: How do you start the process?

JUDI: You need to set aside a day to just think about you, your business, where you are headed.
If you’ve been in business for more than a year, you need to look back to see what worked and what didn’t and understand why. Gather all your ‘history’ – financial statements, client lists, marketing activities – and look at your revenues: which are the clients who are really paying you? Where is your business coming from? Which are the marketing activities are driving business and which ones are not? Right now, while you are still refreshed from the break is the perfect time to do this.

OOMPH: What are some of the challenges and pitfalls of strategic planning?

JUDI: One of the most common mistakes is that people set goals but do not list the steps needed to achieve them, so they have no idea how much work it’s going to take. It’s very easy then to set too many goals and end up with so much to do that you become discouraged. Planning is all about ‘money later’, but the reality is that we all have to make ‘money now’. ‘Money now’ is urgent but ‘money later’ is the important stuff. As a solo or small business owner, there is only so much time to do the extra planning work. To grow your business, you need to include some ‘money later’ activities with your ‘money now’ work.

OOMPH: How many goals should you set?

JUDI: We say no more than three goals on a given year. In fact, you could have only one.

OOMPH: Any other pitfalls?

JUDI: The other common mistake we see is people who devise their goals and leave it at that. You need to follow through on the implementation. We know many people who have great plans that are sitting on a shelf but there is no time to get to them. They plan to grow but they don’t plan their growth…

OOMPH: What can you do to expedite the process and help you carry out your plan?

JUDI: There are three essential elements you must identify: your ‘critical’ success factors, key contacts and activities. These are actions, events or strategies that must take place in order for your plan to work; people you must contact or deal with who are going to help you grow the business; and a list of high-value activities you must do if you are to move your business forward.

Once you know what the success factors, key contacts and activities are, you can determine what your focus will be over a specific period of time, say the following 90 days. You can then draft a list of tasks, meetings, calls and other ‘critical’ activities that you enter into your schedule. This helps to break it all down into smaller, more manageable ‘bites’.

Judi Hughes' Top Six Tips for Strategic Planning

• Every single day before you open your e-mail folder take 30 minutes to do one small task that contributes towards your plan. At the end of the week you will have spent 2.5 hours on your plan and business growth!

• Identify simple or menial tasks you repeat frequently and delegate them to someone, like a university student that spends one day in your office. You will buy yourself at least a full day a month you can set aside to work on achieving your goals and business plan. And, you will get rid of the ‘stuff’ that stops you from moving forward.

• Recognize, acknowledge and manage your ‘hiding place’. This is a comfortable place we go to when we engage in activities that keep us busy and make us feel productive but that aren’t making us any money. It’s a way of making excuses and skirting difficult tasks. Financial success for small business owners is about going out to find the work instead of bogging down doing it. This is extremely hard, but every time you set out to do something ask yourself: am I making an excuse or making money?

• Consider hiring a business coach – an objective advisor who is going to call you to task. Let your coach know your goals and plans and your strengths and weaknesses, and agree to have your coach hold you accountable for completing the tasks on your list and achieving the goals you mapped out. If you don’t want to hire a coach, consider an accountability buddy, some one you can meet with on a regular basis to help you stay on track.

• Give your self a break! We all need to regenerate and we all need a good pat on the back now and then. Congratulate yourself and celebrate your successes!

• Tell people about your plans and you will find that when you voice the words they become a reality and you begin to live your plan. You’ll be surprised what happens when you do that and how many people will say: how can I help you?

Judi Hughes is the co-founder of The Strategic Focus Program™ and the Business Builders Program™.

Through delivery of these programs she has been instrumental in helping more than 100 small business owners set a clear destination, develop strategic action plans and implement those plans to create exceptional businesses.

Judi brings a winning record of over 25 years of small business experience to her company, Your Planning Partners.

Judi and her team work with small business owners to help them establish core planning processes and successfully manage the growth of their business.

In her words: "We support them in dealing with the changes that growth can create in both your company and your life.

Our planning process is called The Strategic Focus Program. It is unique in that it is designed around the specific needs and goals of each client's business and personal goals and desires.

All Strategic Focus Programs takes place in a fixed time frame and provide measurable and realistic deliverables to ensure clients are moving to their defined destination.

It is our objective that at the end of the planning period, clients can incorporate core processes, new skills and easy tools into the management of their business and they can start to benefit from them immediately."

Visit www.yourplanningpartners.com and complete the scorecard to get a snapshot of how positioned you and your company are for growth.

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