Want to Write a Strategic Plan? Here are 5 ‘Must-Have’ Components to Make it Work
Whether you are a solopreneur or an owner of a small business, you need a plan to make 2023 great. After all, how will you achieve your goals if you don’t even have them written down? Below are the 5 ‘must-have’ components for your 2023 plan. Our advice is to take a few hours this week to work through these with a few members of your leadership team to boost your excitement about the upcoming new year.
#1 – Framing Statement
Your framing statement should declare your what, how, and why of your company. The WHAT is ultimately the value-add you offer to the world. The HOW is the product or service that you sell. The WHY doesn’t have to be earth-shattering to be effective. Here are two framing statements we like: 1) We help you schedule meetings without the back-and-forth emails through a state-of-the-art and user-friendly app. Why? Because scheduling a meeting shouldn’t be a hassle. 2) Families who adventure together stay together. That’s why we sell best-in-class kayaks at a price young families can afford.
#2 – Operating Values
A quick google search will turn up hundreds of value words for people and/or businesses to consider. The question is, which ones are right for your organization? At Lion Leadership, we recommend only 3-5 values. After that, it is hard for people to remember what they are, and even more difficult to drive values through process. Yet, because values must be so selective, we also recommend that they must fit the company’s founder perfectly. Values should NOT be aspirational. They should already be tried, true, and lived. This is because operational values flow through an organization from the top down.
#3 – Strategic Goals
The goals of driving revenue, cutting costs, and making a profit are incumbent on all business owners and leaders. These are NOT strategic goals. This is simply business. Strategic goals are about smart ways to make profit, serve well, and to otherwise get your framing statement accomplished in the most expeditious and efficient of ways. Here are a few more examples of strategic goals we like: 1) Innovate new products for the Asia market, 2) Automate standard processes that require 5 or more emails to complete, and 3) Create a human resource & talent development department.
#4 – Metrics
Once you have your strategic goals in mind, key performance indicators are needed. With the examples above, it is clear how these supposedly “strategic” goals can fall flat. The development of numerical performance metrics is the only way to drive action and to inspire forward movement. For example, take this expansion of the strategic goals above: 1) Innovate new products for the Asia market (10 new products pitched per year, 2 new products brought to market per year), 2) Automate standard processes that require 5 or more emails to complete (Successfully automate 20 processes per year), 3) Create a human resource & talent development department (Hire 4 personnel, Reduce turnover by 75%, Have a career path established for 100% of personnel).
#5 – Actions
Once you have your strategic goals and metrics in mind, actions are needed. How will you go about bringing 2 new products to market? Automating 20 processes? Or reducing turnover by 75%? While you don’t need to get into the intense minutiae of every action that needs to be taken, you do need to get into the general buckets of activity that are required. This bothers some people who get fired up about goals, who have a general plan in their mind, and who are ready to hit the ground running. And we hear all you go-getters! Yet the process of writing up an action list is an important un-skippable step.
We wish you the very best of luck with your 2023 strategic plan. If you would like to be matched with a coach to help you create your best strategic plan, email us info@lionleadership.com.
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