Three categories exist for business strategic plans:
· Desk top
· Top drawer
· Bottom drawer
In the third instance, references to the document are sparse and typically arise at times of crisis. Ironically, use is therefore random and not at all planned. Top drawer strategic plans suffer from being out-of-sight. Therefore, they are often out-of-mind.
Desk top plans have a conspicuous presence. “Dog Eared” pages suggest repeated and regular referral, use and refinement.
Overall these distinct categories reflect more on the business owner and user rather than on the veracity of the content.
In recent times, Australians have been exposed to countless life lessons, numbered among which is the importance of planning.
There is little or no immunity to Covid-19 (coronavirus), catastrophic bushfires and widespread extended drought.
PLAN – POSITIVES
In times like those, others may blame, doubt or dismiss you. Self-belief, discipline and focus can, and typically do, overcome adversity, particularly when supported by a structured, integrated and documented plan.
Contingency initiatives are usually implied rather than detailed among the shorter-term tactics.
In the three categories detailed above, the urgency in addressing and redressing the key causes may well have elapsed for the time being. They will remain primary unresolved imperatives.
WORKING PLANS
Recovery is another matter. It is an immediate priority, with longer-term realities and consequences. Sustainability is one important measure.
The rush to cut costs, seek government assistance and implore widespread emotional and transactional support from the broader public is understandable. Each is reactionary and short-term, and will be largely ineffective.
Extensive rainfall will, and has, extinguished bushfires, stimulate pastures and regrowth. Vaccines will remediate the health considerations of the coronavirus. Very rapidly the 24-hour news cycle will have the media move on, change focus and report on new headlines.
It is typical in such circumstances that management teams are inclined to decide to “put aside the strategic plan” and “to start doing things”. Poor choice! That is the very time that the strategic plans should be produced, analysed and be subjected to a forensic audit. Within its pages are the anchor points for culture, strategies, tactics and datum points for crisis management initiatives.
Therefore, detailed reviews, revision and refinements of strategic plans are required. Each of the strata will require analysis and, most probably, extension. Maintaining alignment between each will be important.
Too often, in times of “crisis”, short-term tactics are introduced, with little consideration of intermediate (objectives – 3-5 years), long-term (goals – 3-5 years and strategic- cultural (mission statements – 10-20 years) aspects.
Natural outcomes are road-blocks, a loss of competitive edge, compromised branding and reliance on price discounting.
LOSS OF MOMENTUM
Many of the effects of cash-flow interruptions and downturns are conspicuous and immediate. Impacts on momentum and critical mass are less apparent in the shorter term, but profound over broader horizons.
Re-establishing and rekindling momentum require capital, resources and time. Expeditious turnarounds are typically pipe dreams, evidenced by spates, and accelerating rates of business closures and failures.
Under-resourced entities, geared to a reliance on consistent and growing positive cash-flows, are soon found to be exposed and wanting. Margins of error evaporate, lead-times are truncated.
Vacant premises and FOR LEASE signs are proof-positive of the cycle, and indicative of a lack of planning.
INTEGRATION, DEPENDENCY
The attainment and fulfilment of short-term targets should, indeed must, lead to contributions to the intermediate-term objectives.
Otherwise they raise questions on the purpose, the objectives, goals, mission and philosophy of the entity.
Objectives are fundamental benchmarks for marketing. They define absolute and relative market positioning, competitive standing and presence in the marketplace.
They contribute to and quantify the relevance of the entity, its brand name, products, services, supply chain and people.
In times of crisis, when the emphasis is on survival and cash-flow, these dimensions are assigned little consideration and emphasis.
And so it is, as others are losing their heads, those who have taken the time and allocated the resources to formulate, document and implement genuine integrated and structured strategic plans, typically enjoy the fruits of their labours and endeavours.
The philosophies and mission usually are retained and respected. Complementary contingency plans are outlined and energised.
The foundations of self-belief, discipline and focus lie with the documented plans.
Inevitably, recovery is quicker, more successful and consistent with the overriding values of the entity.
Strategic plans. Hardly light reading. But important desktop references.
Barry Urquhart
Strategic Planning Facilitator
Marketing Focus
M: 041 983 5555
E: Urquhart@marketingfocus.net.au