Three steps for proactive planning

For company leaders particularly, a week in the office can seem like being pulled in a hundred different directions as they tick off, firefight, or deal with a great variety of tasks. Whilst nobody could accuse these leaders of a lack of diligence, does having a lack of coherent focus mean their business is running below potential?

A limiting mindset – Opportunism

During the early phases of an organisation’s growth, it can often be the case that a good amount of pragmatism is needed to cope with early challenges. During this time, some of those involved may have limited prior experience, meaning they must learn on the job. From a positive perspective, this ensures skills must be acquired quickly, but not necessarily in the detail they deserve. Additionally, this also teaches important attributes such as swift decision making and tactical agility.

Although this approach can be appropriate for younger companies, I would not advocate maintaining it as a business matures. Opportunism should only be the default when you have limited resources available and are unable to be more proactive. Coherent strategising is best when a company must create opportunities for itself and continue to compete in its chosen market.

Don’t make thinking on fly your default.

A missing element – The three steps

To plan ahead effectively, I encourage my clients to consider the following three aspects, so they can devise the optimal strategy for their business:

1.  Competencies – What is it your company does best? Is your service exemplary? Is your product unique? Are your staff particularly outgoing and helpful? By having a clear, objective view on these particular areas of strengths, this demonstrates that where to invest in the future, acting as a springboard for further growth. Identifying why these elements are of particular excellence can also indicate how this could be replicated in other sections of the business.

2.  Clients – What’s going to make you the most money moving forward? Hunting new customers, or stimulating returns from existing clients? Finding the balance between these different strategies is key not just for profitability, but is also inherently related to the capability of your infrastructure, company reputation and marketing. Deciding this will impact every interaction your organisation has with its clients/potential clients.

3.  Competitors – So now you know what your best at and how you plan to sell your offering, turn your attention to what you’re up against. The complication with building an effective strategy is that your competitors and market are uncontrollable. If one of your key competitors’ copies, or completely surpasses, your product, how can you react? Understanding the nature and trends of your market increases your chances of excelling within it.

A different perspective - …and it doesn’t end there

It can be tempting to neglect strategy, as it doesn’t always yield speedy results. Leaders under pressure are naturally eager to demonstrate victories, so a more reactive approach might be chosen. Whilst there is nothing inherently wrong with short-term wins, as they can be good for boosting morale, I would suggest that having a dual focus on current and future opportunities will yield the greatest success.

Dedicate some specific time to planning ahead each week, that is non-negotiable and untouchable within your schedule. The difficulty with assessing the future is like the present, it needs consistent, regular attention. Initiatives can go out of date before they even begin, so sitting back once plans have been drawn is not an option.

The bad news is that strategy is a never-ending project. Without continued analysis and revision, the three steps I presented above are only useful for a very limited time. The good news is that it is relevant to every part of your business, influencing every decision you will make. How can that be a waste of time?

Being clear on your competencies, your clients and your competitors at all times will make reaching your vision far more attainable.

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