Pub. 1 2019-20 Issue 1

Issue 1 2019 29 WVADA Strategic planning Strategic planning is a vitally import- ant responsibility that gets relative- ly little attention. Effective strategic planning can unleash the potential of a business, focus efforts in the right places, and energize teams to create amazing results. Strategic planning is a requirement of sound business management. However, the time and effort devoted to planning are often much less than the time devot- ed to other matters. At its core, strategic planning is the ex- ercise of determining if we are pursuing the correct priorities. This is the most important question we must answer. Being good at pursuing a great strategy is much better than being great at pursu- ing a bad strategy. Why we don’t put more effort into planning There are many reasons owners and se- nior managers don’t put more time and resources into planning. The three most significant are that the participants: don’t enjoy the process, feel it takes too much time and effort, and believe that it does not deliver useful results. Participants don’t enjoy the process Most individuals have been involved in planning efforts that were less than sat- isfying. The dissatisfaction often result- ed from feeling that his or her voice was not heard, the most important issues were not considered, or discussion of certain issues was uncomfortable. Such experiences tend to throw a wet blan- ket on the process. It takes too much time and effort There are literally hundreds of systems for planning. Many of them provide for exhaustive preparation, exten- sive meetings, and drafting large and detailed plans that are inflexible and difficult to administer. Sometimes the effort becomes so much about the process that results seem to be an af- terthought. It does not deliver useful results We all know of strategic plans that were written, approved, filed, and rarely brought out. Sometimes the plans are so detailed that they become obsolete shortly after their creation. Six elements of an outstanding strategic planning process Good planning efforts consistently lead to better operating results, clearer priori- ties, and better measurement of success. There are six elements that define an outstanding strategic planning process. y Requires a reasonable amount of preparation; y Provides a solid review of the current conditions; y Tailors to the organization’s unique set of risks, goals, and values; y Answers the most important ques- tions about the existence of the orga- nization; y Evaluates the steps necessary to achieve desired priorities; and y Provides a manageable process for follow-up. What the process should do for the participants Planning requires owners and senior managers to tackle important and some- times emotional issues about the future direction of the organization. Despite these challenges the process should: y Ensure that everyone feels that he or she has been heard; y Foster consensus around difficult is- sues; y Energize the participants with a re- newed sense of shared direction; and Create a path for the participants to con- tinue their consideration of planning is- sues between planning events. Should you use a facilitator to guide the planning process? Owners and senior management teams can conduct high-quality planning ef- forts without retaining an outside facil- itator. However, it is difficult. There are three distinct advantages to using an outside facilitator. Sometimes the Most Important Things Get the Least Attention By Mark Mangano and Elizabeth Osenton