Why Summer is the Ideal Time for Strategic Planning: A Step-by-Step Guide
Unlock Your Team’s Creative Potential with a Relaxed Summer Planning Session.
Dive into this week's insights:
“What are your plans this summer?” my friend asked.
“Well,” I answered, smiling, “I use the summer months to discuss the next 3–5 years’ strategic setup with the teams.”
“What? You think about work when everyone’s on holiday?” he looked confused.
I gave my friend a brief explanation of what’s on the corporate planning schedule every summer and why I recommend it as a best practice for every company I work with.
Let’s walk through it.
What is the Purpose of the Annual Strategic Planning Session?
I recently had Dan Brisse, former Snowboarding X-Games superstar turned Real Estate Investor, on my podcast.
We talked about the relevance of goals, and he said:
“Your brain needs clarity to hit a goal. Without a clear target, it’s like trying to find a grocery store without knowing its location. When you know exactly where you’re going, your mind can focus and chase the goal effectively.”
This encapsulates the essence of a strategic planning session:
It defines the company’s long-term goal and aligns the leadership team behind it.
The summer session tackles three main questions:
Where are we? (Reviewing the current situation)
Where do we go? (Setting the long-term goal)
How do we get there? (Drafting the roadmap)
Why Does That Matter?
When a company’s leadership team has a diverse understanding of its sole purpose, it risks losing momentum. Employees may become confused by conflicting directions, and investors may feel uncertain about their investments.
However, when the leadership team agrees on a single goal and direction, it is easier to align all stakeholders and accelerate momentum.
In most businesses, 80% of the results come from 20% of the core activities. Determining which 20% are most relevant is impossible without a clear understanding of the ultimate goal.
Why in Summer?
This is a frequent question. Strategic planning is primarily a creative activity. To be effective, people need to be relaxed and open to leisure activities that tap into their creative energy.
From September to June, people are typically hustling, meeting deadlines, and rarely have a moment to spare.
In the Western world, corporate life slows down in July and August. Many people take vacations, spend time with loved ones, and office activity decreases.
It’s easier to bring the team to a remote location for three days during the summer months than at any other time of year. Gather them somewhere outside the office, disconnect from technology, and have meaningful conversations.
What is the result of the Strategic Planning Session?
This session isn’t about fun and games; it’s about tangible outcomes:
The State of the Company’s Ecosystem: A SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) to assess the internal and external landscape.
Updated Vision and Mission Statements: Concise declarations of the company’s aspirations and purpose.
The 5 Core Strategic Pillars: Key areas of focus that will drive the company’s growth.
The 5 Core Roadmaps: Detailed plans with milestones for each strategic pillar.
Clear Ownership: Assigning responsibility for each goal and roadmap to ensure accountability.
Culture and Values Assessment: Identifying the cultural shifts needed to support the strategy.
The State of the Company’s Eco-System and how the company responds to it
No company exists in a vacuum. It is embedded in an ecosystem that drives opportunities for the company but also poses risks and threats.
It is the place for tools like the SWOT Analysis. It provides a framework to discuss 4 different areas:
Strengths: Internal attributes and resources that support a successful outcome.
Weaknesses: Internal limitations that could hinder progress or success.
Opportunities: External factors or conditions that can be leveraged for advantage.
Threats: External factors or conditions that could pose challenges or risks.
Updated Vision and Mission Statement
The first step in the Summer Session provides information and data to understand the company's environment and how it responds to it.
It answers the question:
Where are we today?
Once the leadership team has clarity about the company's situation, it can review its Vision and Mission Statements.
Vision and mission statements are crucial components of a company’s strategic planning, providing direction and purpose for its operations and goals.
Vision Statement
What it is: A concise and inspiring declaration of what the organization aspires to become or achieve in the future.
Purpose: To guide and motivate employees, stakeholders, and customers by articulating a clear and compelling picture of the future state.
Focus: Long-term aspirations and desired impact on the world.
Characteristics: Often visionary, aspirational, and emotionally resonant.
Examples:
“To be Earth’s most customer-centric company.” (Amazon)
“A world without Alzheimer’s disease.” (Alzheimer’s Association)
Mission Statement
What it is: A statement that defines the organization’s core purpose, its reason for existence, and the value it provides to its customers or society.
Purpose: To guide decision-making, resource allocation, and daily operations by clearly outlining what the organization does and why it matters.
Focus: Present activities and core competencies.
Characteristics: Clear, concise, and action-oriented.
Examples:
“To accelerate the world’s transition to sustainable energy.” (Tesla)
“To inspire and nurture the human spirit — one person, one cup, and one neighborhood at a time.” (Starbucks)
The 5 Core Strategic Pillars
Resources are limited. Time is limited.
That’s a given in today’s world. A company doesn’t thrive on doing everything at the same time. The most successful companies focus on a specific area in which they strive to become the number 1 on the market.
Their niche should be so narrow that this is the only existing company. They are their monopoly.
To focus the resources, the management team must focus on selecting all the possibilities and threats identified in the SWOT Analysis.
Many ideas in the opportunities and threats parts can be clustered as on pillar or area, and some might just be not relevant for the company.
At the end of this part of the session, the leadership team will have a clear understanding of the company's five areas of operation and the goal.
The 5 Core Roadmaps
Imagine your organization’s goals are the final destination of a journey. Your current situation is your starting point. You need a well-defined path- a roadmap to get from where you are to where you want to be.
In this analogy, the 5 Core Strategic Pillars represent the main routes on your map. Each pillar is essential for reaching your destination, and they intersect and influence each other along the way.
Defining Key Milestones:
Just like a road trip involves stopping at various points of interest, your strategic journey requires milestones. These are significant events or achievements that mark your progress towards your ultimate goals. For each of the 5 Core Pillars, you should identify 3–5 key milestones.
Here’s why defining milestones is crucial:
Clarity and Focus: Milestones provide a clear sense of direction and purpose. They break down your overarching goals into smaller, more manageable steps, making them less daunting and more achievable.
Progress Tracking: Milestones serve as checkpoints to evaluate your progress. They help you identify what’s working well and what needs adjustment, allowing you to make course corrections as needed.
Motivation and Momentum: Achieving milestones creates a sense of accomplishment and boosts morale. It provides positive reinforcement and fuels motivation to keep moving forward.
Resource Allocation: Milestones help you allocate resources (time, money, personnel) more effectively. You can identify what resources are needed for each milestone and allocate them accordingly.
Time Management: By assigning timeframes to each milestone, you create a timeline for your strategic journey. This helps you stay on track and avoid delays.
Assign Clear Ownership
You’ve done the groundwork. You’ve clarified your long-term vision and current mission, meticulously defined the company’s 5 strategic areas, and crafted a detailed roadmap with actionable milestones. But the journey doesn’t end there.
All this meticulous planning must be translated into action to truly make progress. And that means assigning clear responsibility and accountability.
Clear Ownership is Key:
Think of each strategic area, goal, and milestone as a crucial project. Every project needs a leader, someone who takes ownership and drives it forward. This designated owner becomes the champion for that particular area, responsible for ensuring its successful execution.
Why Assign Clear Ownership?
Accountability: Clearly defining who is responsible for what eliminates ambiguity and ensures that everyone understands their role in achieving the company’s objectives. It fosters a culture of accountability, where individuals are motivated to take initiative and deliver results.
Focus and Efficiency: With a designated owner, each area receives dedicated attention and effort. This focused approach avoids duplication of effort, streamlines decision-making, and promotes efficient resource allocation.
Empowerment: Assigning ownership empowers individuals to take charge of their designated areas, encouraging creativity and innovation. It fosters a sense of responsibility and pride in their work, leading to greater engagement and commitment.
Progress Tracking: Having clear ownership simplifies the process of tracking progress towards goals. It enables regular check-ins, performance evaluations, and course corrections if needed, ensuring that the strategic plan stays on track.
Fostering a Culture of Innovation: The Final Step
Your strategic roadmap is in place, ownership is assigned, but there’s one more crucial element to address: your company’s culture. As Walter Isaacson highlights in his work, a culture of innovation is essential for turning your strategic vision into reality.
A Cultural Audit for Innovation:
Before moving forward, take a step back and assess your current culture.
Does it truly foster the kind of innovation your roadmap demands?
Consider these key elements inspired by Isaacson’s insights:
Visionary Thinking: Is your organization open to bold ideas and willing to challenge existing assumptions?
Collaborative Teamwork: Does your culture encourage collaboration and knowledge-sharing across departments and teams?
Craftsmanship: Do you value quality, attention to detail, and clear communication in your work?
Entrepreneurial Spirit: Is risk-taking encouraged, and are failures seen as learning opportunities rather than setbacks?
Leadership that Breeds Innovation: Do your leaders inspire creativity, empower teams, and provide the resources needed for experimentation?
Cultivating a Culture of Innovation:
If your current culture falls short, don’t be discouraged. A cultural shift is possible, but it requires intentional effort and commitment from the top down.
Here are some actionable steps:
Lead by Example: Leaders must embody the desired cultural traits. Encourage open communication, celebrate creativity, and embrace calculated risks.
Foster Collaboration: Break down silos and encourage cross-functional teamwork. Create spaces for brainstorming, knowledge sharing, and co-creation.
Reward Innovation: Recognize and reward employees who contribute innovative ideas, even if they don’t always succeed. Celebrate experimentation and learning from failures.
Invest in Learning and Development: Provide opportunities for employees to learn new skills, explore emerging technologies, and stay ahead of industry trends.
Communicate the Vision: Clearly articulate the company’s vision for innovation and explain how it aligns with the strategic roadmap. Help employees understand how their work contributes to the bigger picture.
By consciously shaping your company culture, you create an environment where innovation thrives. This not only helps you achieve the ambitious goals outlined in your roadmap but also positions your organization for long-term success in an ever-evolving landscape.
Culture is about creating an atmosphere where everyone feels empowered to contribute their unique talents and perspectives, driving innovation and pushing the boundaries of what’s possible.
Bringing Your Strategy to Life: Post-Planning Action
Your strategic roadmaps are your organization’s compass for the future. Here’s how to guarantee they guide you towards success:
Align Your Core Team (September): Share the vision and roadmap, encouraging feedback and refinement for a stronger plan.
Engage the Board (October): Secure buy-in and support from key stakeholders by presenting a compelling case for your strategy.
Kickstart Budgeting (November/December): Align budget allocations with strategic priorities, ensuring resources are directed where they matter most. Track progress and measure impact to make data-driven adjustments.
Monitoring Results (New Year): Continuously evaluate, adapt, and recommit to your long-term vision.
By following this post-planning process, you transform your strategic plans into action, ensuring each step contributes to your company’s growth and success.
Remember, strategic planning is an ongoing journey that requires continuous evaluation, adaptation, and commitment to your long-term vision.
By adopting this approach, you set your organization on a path toward sustainable growth and success.
Ready to Unlock Your Team's Strategic Potential This Summer?
Don't let another summer pass without crafting a roadmap to success. I'm offering FREE 30-minute consultations to answer your questions and help you kickstart your strategic planning process.
Whether you're unsure where to begin or need help refining your existing plans, I'm here to guide you. Let's make this summer the season your company thrives!
Click here to schedule your free consultation today.
Limited spots available, so don't miss out!
Notable Articles:
HBR's Guide to Strategic Planning: Harvard Business Review is a reputable source with numerous articles and guides on the topic, providing further context and frameworks for readers who want to learn more about the formal aspects of strategic planning.
McKinsey's Article on The Strategic Planning Process: McKinsey is a leading consulting firm known for its expertise in strategy. This article offers a high-level overview of the strategic planning process, providing valuable insights for readers who want a more in-depth understanding of the topic from a consultancy perspective.
Sun, Sea And Spreadsheets: How Should Leaders Really Use Their Summer Break? So, as a leader, how should you make the most of your summer vacation?
Upcoming Conversations and Events:
July 23, 2024 - 02:00 pm CET - Shlomo Noy - Guangzhou Sino-Israel Biotech Fund - GIBF
July 30, 2024 - 06:30 pm CET - Dr. Jo Varshney, CEO and Founder of VeriSIM Life
August 6, 2024 - 06:30 pm CET - Renee Williams, Williams Biotech Consulting, LLC - Biotech Dealmaking Deconstructed: Renee T. Williams Reveals Insider Secrets
August 13, 2024 - 06:00 pm CET - DC Palter, Business Angel from Silicon Valley, is back to talk about California’s Startup Life and his new book
Podcast Episodes and Clips
EP 136: Focus and Determination: Lessons from Dan Brisse's Sports and Business Career
#135: Empowering Innovators: 10 Lessons from The Innovators by Walter Isaacson
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