Is Strategic Planning a luxury in today’s business conditions?

Maureen Grealish director at LEAP

Strategic Planning

Strategic Plans normally addresses the business, and its requirements for periods of between 3 and 5 years. Given the recent turbulent trading conditions, many business management teams are reluctant to engage in a detailed, time-consuming planning exercise that many see as being out of line with reality and largely an academic exercise.

A Business Plan, in the traditional format, will still be required for businesses raising finance and/or where a major strategic decision needs to be made e.g. an acquisition or the purchasing of equipment. In a business that is not engaged in such strategic decisions, business strategy should not be reduced to short-term, fire-fighting decisions that are not aligned to any overarching plan.

The alternative is a Strategic Action Plan covering periods of 12-18 months.

The importance of goal setting is well covered in a litany of business management books. The reason for this is that goal setting WORKS! We all know that we have a goal, business or personal, and if we can really get motivated by it, then we can achieve great things. Clearly defining the goal, and having a picture in our head of what things will look like when the goal is achieved, helps us through the difficult days. Just talk to anyone that focused on losing a stone in weight so that they can fit into that special outfit, and got there, and you will know what I mean.

We can do the same for our business. The key is to set a goal, make it something we REALLY want to achieve, and keep focused on it.

There are two key elements in keeping focused on the goal. The first is to share the goal with those around us – our management team, employees, and anyone else that has a part to play in achieving the goal. The second is to put Key Performance Indicators (KPIs) in place to help us monitor our progression towards the goal.

It also helps if we break down the goal into its component parts i.e. objectives.

An objective is the most important part of the Strategic Action Plan. An objective is a clearly stated, measureable target of how to achieve the goal. Key Performance Indicators help us define how we are doing in achieving each objective. A business should have objectives around business elements such as

–          Operational Costs

–          Staff Turnover

–          Client Retention

–          New Sales

–          Quality

–          Service Levels

–          Communication

The difference between a ‘good’ objective and a ‘bad’ objective is in how the objective is defined i.e. an objective to ‘Contain Support Costs’ is an example of a bad objective. An objective to ‘Receive ISO certification by next March’ is an example of a good objective. The more specific the objective is, the better it is.

Once the objectives have been agreed, plans can be developed to achieve those targets. These can then be used to motivate employees and enable the business to measure their progress towards the goal. One thing is true – businesses that can clearly define, articulate, and execute their goals are well positioned to compete and succeed.

So – do you have a goal?

Maureen Grealish
LEAP
Tel: (091) 755 736
info@leapleadership.ie

 

Leadership and Management in Uganda

Uganda

Tricia CunninghamWe know that drought and arid land are not the only factors in third world poverty; poor management and a lack of leadership are also at the heart of it. Recently LEAP’s Tricia Cunningham returned from Uganda having spent some time working alongside Self Help Africa. The goal of this Non-Government Organisation (NGO) is long term sustainability for small farmers and to break the cycle of dependency on foreign aid. Despite its potential, Uganda’s natural resources have never been properly utilized and it is still considered a third world nation. Tricia decided to go to Uganda and see for herself the kind of challenges facing agricultural communities there.

Armed with her experience in developing and delivering leadership and management training programmes, this first phase of Tricia’s work was about assessing the requirements of the local farmers and the Self Help Africa team.  Over the coming months she will also visit Zambia, Malawi, Ethiopia, West Africa and Kenya.  Here, Tricia shares some of her observations about her Uganda trip.

Tricia: ‘Sometimes when working in business we close our eyes to best practices in other disciplines believing they are irrelevant.  We use such expressions as “they don’t understand how we do things here” cutting off the potential for innovative practices that could benefit our organisations.  Many NGOs understand the necessity of determining best practices to maximise limited budgets. At the same time they recognise the importance of development to maintain and enhance the services provided.

 

Self Help Africa

Self Help Africa is a progressive NGO that demonstrates leadership in its area of expertise as it applies innovative approaches to its work.  A recent trip to its offices in Uganda provided me with the opportunity to see first-hand how this NGO is implementing best practices to develop a robust organisation, how it is working towards a goal of long-term sustainability for smallholder farmers and how it is ensuring inertia and complacency are kept at bay.  Best practices applied include:

  • Determining a long-term goal -sustainable future for smallholder farmers- and ensuring it remains at the core of all activities and strategies
  •  Hiring local experts who understand the needs of their service users (customers)
  • Removing non-essential activities from local offices so they are free to do what they do best – support their service users
  • Providing organisation support centrally for multiple locations thus reducing costs
  • Availing of technology to drive their work, to support local country offices and to reduce costs
  • Collaborating with branches in other countries, sharing insights and addressing blockages to progress

Leadership and Management in Uganda

In a country like Uganda where allegations of corruption have exploded recently the importance of running a highly effective, efficient, transparent and innovative organisation has never been more necessary.  They understand that establishing a great organisation isn’t simply a desire, it’s a necessity.  It really can make the difference between life and death.’

LEAP

Enquiries 091 755736