Executives and management teams often talk about their strategic planning efforts without realizing they might not be maximizing the value of the time they spend on it. Unfortunately, I’ve found that the process is rarely performed in the appropriate way, often failing to yield meaningful results.

A well-formed, long-term strategic plan can create positive outcomes and clear direction, but you have to take the right approach. 

Use Focus on long-term – not annual – planning

What most companies call their strategic plan is no more than a set of goals and operational tasks for the upcoming year. While annual operational plans are important, they lack the forward-looking benefits and direction that a long-term strategic plan delivers.

A strategic plan should typically cover a three- to five-year period. This longer-term mindset will allow your management team to consider much wider perspectives when planning for the future of the company. If you limit your strategic plan to just one year, it’s difficult to ever get beyond the basic short-term operational projects that come up in the normal course of business.

Planning three to five years out allows your team to think broadly about your future business and gives managers enough time to create the infrastructure and processes necessary to accomplish your goals. 

Review, don’t redo

You should monitor your strategic plan regularly and re-assess it each year. This doesn’t mean redoing the plan each year. Rather, you want to review it to be sure your company’s mission and strategic initiatives are still on track given any changes in the market, your personnel or other situations. 

I’d caution you not to stretch your strategic plan too far out, however. It’s tough to predict the future very well beyond five years. While it’s fun to dream out that far and may be helpful to have a bit of a vision further out, it’s best to do it more informally and keep it outside of the strategic planning process.

Create a solid strategic planning process

Finding space on your executive team’s calendar to tackle this process is no easy task, so make sure it’s worth the time you set aside. To set up a productive process with a valuable result, you have to prepare properly.

1. Hear what customers have to say

Send out customer satisfaction surveys a few months in advance of your strategic planning session. The data you’ll gain from these surveys (good or bad) will be extremely helpful as you work toward your future strategy. 

2. Interview stakeholders

Gather insights from key stakeholders before your session, including employees, vendors, and board members. Ask for their views on what your company’s strengths, weaknesses, opportunities and threats are (a SWOT analysis). Their unique viewpoints might uncover areas to address as you plan that you wouldn’t think of on your own. 

3. Bring in a pro to guide the discussion

There are many professional meeting facilitation firms and individuals who can help keep your strategic planning session headed in the right direction. A trained facilitator will maintain objectivity throughout the process and keep all your participants on task. They’ll also make sure you leave the session with the results you set out to achieve, like a revised mission statement and key future initiatives. 

4. Give yourself enough time

Don’t try to rush the planning session into a two-hour window. Allow at least a half-day to a full day for the facilitated planning session. Consider leaving your building or even your city to separate yourselves from day-to-day distractions as much as possible.

5. Involve the right people

Don’t limit the group to only your company’s top decision-makers. Include others with perspectives that will help shape the direction of your plan, such as line managers, a customer service supervisor, or board members.

6. Include an experienced financial voice

Without a financial strategic thinker in the room (like a Fractional CFO), you might overlook important points while making plans for the future.

You need an experienced executive-level professional in your planning session to help you consider the financial impact (the revenue potential and/or costs) of the plans you’re considering.

You’d be surprised how many strategic plans are developed without a plan to fund the initiatives they outline. You won’t get the results you want without the money to make it happen, and a Fractional CFO will make sure you have the funds to back up your plans.

A Fractional CFO adds big value to your strategic planning

If your business is new to strategic planning, a Fractional CFO can help you get on the right path. They’ve been involved in strategic planning with companies throughout their careers and will make sure you walk away from the process with a solid plan of attack to help you reach your company’s goals.

If you’re in Kansas City, Crown CFO can help. Contact Mike DeMaio at [email protected] to bring a trusted, expert Fractional CFO to your business.