6-Step Process for Business Strategic Planning - Terry Trayvick
Terry Trayvick Executive Vice Chairman
In our business, a well-defined process guides us toward our goals. We have a clear six-step process with a roadmap to success at the heart of our company's strategic planning process. This process helps transform our visions into reality. When we align our teams with these steps, we move forward with one voice with clarity and focus.
Think of it this way. Let's pretend your mission is to travel from Florida to New York City. You must consider your strategy to get there. Strategy follows mission and is simply the set of options to determine "how" you will accomplish the mission. There are many options for traveling to New York City. You can fly, take a boat, drive, or take the train to reach the destination. Strategy is simply choosing one of several options to meet your mission (objective) to travel to New York City. Let’s say you decide to drive. Now, you need to build the structure to support your strategy, including acquiring a car, a driver, and maybe a map.
I want to get to New York safely, so I need to create a culture of safety for those joining me in my journey to New York. This may require that we only drive during the daytime. We could decide not to drive when it's raining outside, during a big storm, or if there's a lot of snow on the ground. Let's say I want to get there by tomorrow. If so, I need to measure my progress, how far I've traveled at any point in time, how fast I'm going, how much further I need to go, etc. I want to get to New York City by this time tomorrow, so my strategy, structure, culture, initiatives, and metrics must align with the mission.
This story illustrates our six-step strategy. Now, let’s take a look at each element.
1. Clarifying the Mission, Vision, and Financial Goals
The journey begins with a crystal-clear understanding of our mission and vision. Beyond our overarching goal of Reaching People for Christ and giving to the Kingdom, we focus on incremental business objectives. Financial goals, growth targets, and sales aspirations help determine our "what." When this is established, we move forward in strength.
2. Crafting the Strategic Blueprint
With the mission in sight, the next step involves crafting a strategy – the 'how' of the operation. This four-step process consists of differentiating the company from the competition, optimizing operations, creating a growth path, and establishing a cultural strategy. These elements are the pillars supporting the overarching plan.
3. Building the Right Structures
The effectiveness of any strategy lies in the infrastructure supporting it. Here, structures encompass the organizational framework and the necessary people, processes, and systems. It's about aligning the right resources to execute the strategy seamlessly.
4. Nurturing a Supportive Culture
Culture is the glue that binds the strategy together. At the Household Group, our desired culture is one of joyful, hopeful, and loving guides. Like an undercurrent, it ensures that every action and initiative resonates with the company's mission and strategy.
Culture is the unsung hero that can make or break a strategy. Even with the perfect plan, a flawed culture can derail execution. In our journey at the Household Group, we've identified gaps in accountability within our culture. We've committed to change, diving into "The Leadership Contract" every two weeks to foster a culture of accountability. It's not just about having strategies on paper; execution matters. Our distinctive approach revolves around creating a culture where being joyful, hopeful, and loving guides is at the core. Culture isn't just a buzzword; it's reflected in videos, rewards, and feedback. For us, the key is consistency—ensuring all aspects align with our strategy and each other.
5. Implementing Major Projects and Initiatives
Strategic planning isn't merely theoretical; it's about translating plans into action. The fifth step involves identifying and executing projects aligned with the overarching strategy. These initiatives become the building blocks, bringing the strategy to life.
6. Metrics: Keeping a Finger on the Pulse
The final piece of the puzzle involves tracking key performance indicators (KPIs). In a large organization with diverse functions, having the right metrics in place is crucial. It ensures that everyone is pulling in the same direction and enables timely adjustments to keep the strategy on course.
Assessing Strengths, Weaknesses, Opportunities, and Threats (SWOT)
Before diving into the six-step process, a thorough analysis of the company's current state is essential. This SWOT analysis – evaluating Strengths, Weaknesses, Opportunities, and Threats – provides a comprehensive understanding. It serves as the compass, pointing towards areas that need strategic focus.
Flexibility and Continuous Improvement
The strategy isn't set in stone. Regular evaluation through KPIs allows for adaptability. If a process isn't yielding the desired results, there's room to tweak or change course. Flexibility is the key to staying relevant and effective.
In business strategy, these six steps form a method that propels us toward success. From envisioning the mission to fine-tuning the culture, each step is integral to the harmonious execution of a strategic plan. It's not just a process; it's a dynamic, living strategy that evolves with the ever-shifting demands of our industry.