In an earlier post, Strategic Planning, I drew a comparison between a blueprint for building a house and strategic planning. In business, sometimes we need this level of detail. Other times, not so much.
If I am building a house or a multi-story building, I definitely need detailed plans. I need to know where walls, plumbing, electrical, and HVAC are all going to be placed and how things will be routed. However, if I am building a simple storage shed with no power then all I need are the dimensions so I know how much materials to buy.
Strategic planning is much the same way. Sometimes, we need detailed, rigid planning. Other times we are able to swing things a bit and develop the plan as we go along, much like jazz musicians. We’ll explore each of these. Let’s start by looking at the blueprint approach.
The Blueprint Approach
The blueprint approach would be a much more detailed plan. This is used when we have complex scenarios or many teams working together towards a common goal.
Mid-size and large organizations typically have a more detailed plan. They will have goals set at the organizational level that trickle down to departments or teams. The departments and teams will then determine their tactics for how to achieve these goals. Smaller organizations may also have a detailed plan depending on the organizational goals and the complexity of those goals.
Here’s an easy, and typical, strategic goal: increase revenue by 10%. There are lots of ways to increase revenue. If multiple teams are working toward the same goal, we need to make sure that one team isn’t doing something that will counteract or impede another team. This is where more detailed planning will come in. Here are a few questions to answer for this goal:
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Which market segments offer the best growth opportunities?
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What skills will we need to succeed?
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Can we expand current service lines, or launch new ones?
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How can we upsell or better serve existing clients?
There are many more questions that could be (and maybe should be) asked related to our goal of increasing revenue. The point here is that detailed planning provides clear guidance and consistency across an organization so everyone knows what they need to do to contribute to the strategy.
Depending on the structure of the organization, once a strategic plan is in place it may take a bit more to change course in response to market or regulatory changes. It is completely within the realm of possibility that some changes or opportunities present themselves that may be great for the organization. However, these may not align with the strategic plan. Seizing these opportunities often requires time and flexibility. This is the biggest risk or weakness of a well developed strategic plan.
The mitigation for the rigidity of a well defined strategic plan is to provide staff with some mechanism to pursue “special projects”. This is time that employees are able to dedicate to pursuits that still support the overall mission and vision of the organization, but they may not fit directly into the strategic plan.
Conclusion
While blueprints are essential for complexity, sometimes creativity and adaptability offer even greater returns. In the next post, we’ll explore how an improvisational approach can keep you nimble in a changing market.
Let’s rework how you work.
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From the SmartWork Bulletin