Knowing the difference will build your company value
Ask yourself these two questions about your organization’s strategic thinking and planning – Does our strategic plan identify the tangible targets we are striving to achieve at a future period with our organization? Does our plan also identify specifically how we will deliver on these targets?
You want the answer to both these questions to be a resounding YES.
Too often what I see in helping business owners and CEO’s with their strategic planning is their plans are rich in the “what” they want to accomplish but very light in regards to “how” their team will actually deliver on their desired targets. This often leads to frustration as the business owner and leadership team doesn’t see the company achieving their desired targeted deliverables.
As an example, a leadership team may identify deliverables they want to achieve in their strategic plan. Examples of these could be they want to grow revenue by 10%, improve gross margin by 2 basis points and launch 2 new products/services in the period ahead. These are examples of your “what”. But the question you want to equally be able to answer for yourself and your team is what specific steps you need to take in order to move your organization toward delivering these targets. These are your “how”. Absent the how, your what is exposed to possibly having to rely on luck and chance to achieve them.
As you think about having a strategic plan that builds the long-term value, or worth, of your company, ensure your planning has the critical blend of your what and your how. One without the other may be hurting worth creation in your business. Look to start the new year with an updated plan that ensures this effective blend is in place and build the worth of your business.
