Archive for May, 2010
When you are faced with changes in the marketplace, you need to examine what’s in the plan, and course correct as necessary. When your team faces the challenges, more often than not, there will be a part of the organization that heads one way, and another part that thinks something else is more important to address.
The result is that you are missing opportunities and being hit between the eyes with threats that have now become real.This is especially realized in those companies that let budget drive strategy instead of the strategy driving the budget.
Many times, an organization will put together a strategic plan, followed by a financial plan or budget, and then not take the time during the year to go through it and fine-tune as needed. The plan is meant to provide a roadmap and provide organizational alignment.In putting together your strategic plan, it’s important that you have done enough study and preparation ahead of time to be agile enough to respond to changes when they pop up around you.
At the very beginning of the planning cycle, it pays huge dividends to complete an industry assessment. This is where you gather data that will help you understand the industry’s long term growth opportunities. Take a look at the volume growth rate, competitor mix, rate that technology is changing, and customer value adds that will put you over the top. When you are faced with a new opportunity, these items can be a good funnel to help you decide go forward strategy.