Having a strategic plan is a vital aspect of any successful organization. Unfortunately, most organizations have strategic plans that are really financial plans in disguise.
Profits are only one element of a strategic plan. You need a plan that outlines what you’re going to do to differentiate yourself from your competitors and one that details your innovation strategies. Those key elements are often missing in a financially focused strategic plan.
Thorough strategic planning also looks at how you gain new competitive advantages and other broader concepts that accelerate growth beyond a financially focused plan. Therefore, your strategic planning needs to be a mix of financial planning, strategy-focused planning, long-range planning using research to determine future positions, and tactical planning to determine your execution strategies.
“Failing to plan is planning to fail.” That saying is true for companies today, which is why having a strategic plan is essential. It’s important to build change into the plan and have the ability to adapt it in real time.
These days, a traditional static plan is less desirable and less effective than a dynamic plan. The difference is a static plan is a document that is published, shared with key employees, and then filed away. A dynamic plan goes beyond one-way informing and communicates the plan in a two-way, ongoing dialogue to everyone in the enterprise. It’s a living, breathing, and evolving entity engaging everyone. In short:
These three points are crucial; with a typical static strategic plan, people may not have time to read it or agree with it, so they may not take action. If they find major flaws in the plan, there is no means to provide risk-free feedback.
A dynamic strategic plan allows communication with people and encourages feedback. You’re not telling people the plan; you’re showing them the plan and asking for their help with identifying foreseeable challenges, solving problems before they occur.
Here are some hallmarks of a dynamic strategic plan:
Today, truly successful and innovative companies have a dynamic strategic plan in motion. They have a document that can be added to and refined with graphics, video, and interactive media. They have something that’s moving.
Leaders need to engage people with their plans rather than inform them of their plans.With the rapid pace of change, the traditional static planning system is a dinosaur. Now is the time to redefine what a strategic plan is supposed to be—dynamic.
Daniel Burrus is considered one of the world’s leading futurists on global trends and innovation. The New York Times has referred to him as one of the top three business gurus in the highest demand as a speaker. He is a strategic advisor to executives from Fortune 500 companies, helping them to accelerate innovation and results by develop game-changing strategies based on his proven methodologies for capitalizing on technology innovations and their future impact. His client list includes companies such as Microsoft, GE, American Express, Google, Deloitte, Procter & Gamble, Honda, and IBM. He is the author of seven books, including The New York Times and Wall Street Journal best-seller Flash Foresight, and his latest book The Anticipatory Organization. He is a featured writer with millions of monthly readers on the topics of innovation, change and the future and has appeared in Harvard Business Review, Wired, CNBC, and Huffington Post to name a few. He has been the featured subject of several PBS television specials and has appeared on programs such as CNN, Fox Business, and Bloomberg, and is quoted in a variety of publications, including The Wall Street Journal, Financial Times, Fortune, and Forbes. He has founded six businesses, four of which were national leaders in the United States in the first year. He is the CEO of Burrus Research, a research and consulting firm that monitors global advancements in technology driven trends to help clients profit from technological, social and business forces that are converging to create enormous, untapped opportunities. In 1983 he became the first and only futurist to accurately identify the twenty technologies that would become the driving force of business and economic change for decades to come. He also linked exponential computing advances to economic value creation. His specialties are technology-driven trends, strategic innovation, strategic advising and planning, business keynote presentations.