While grappling with short term problems and day to day demands it is easy to overlook how critical long-term planning is to any business’ success, and even its survival. Prioritising the use of resources according to the most pressing issue or commitment, although important in itself, results in the business being led by events as they unfold rather than by a carefully thought out plan, and leaves the delivery of benefits and successful outcomes to the vagaries of the market place.
It is therefore existentially important to recognise that a special effort needs to be exerted alongside the business operation, which can attend to short-, medium-, and long-term planning for the goals and aspirations of the business’ stakeholders. In effect, a team of specialists is needed to identify from the constituency groups that impinge on the business, a set of stakeholders from whom an understanding concerning their aspirations and goals can be put into record. It is this record that will be used by the team in formulating a strategy that will govern behaviour and decision making in the business. The strategy will provide a framework for decision making and changes that will ultimately result in attainment of the stakeholders’ objectives.
The strategy frees the business from chance, clearly setting out the measures of long-term success, and providing a mechanism and plan to refer to on the journey to achieving them. Furthermore, a good strategy will allow for creative solutions to problems along the way by setting out the characteristics of a strategic solution, rather than proscribing for every eventuality. It will include processes for managing expedient exceptions to strategic changes and the means of reviewing the strategy to keep it relevant in a changing market place.
A successful strategy will be understood by every team in the business with regard to how it affects them and how they contribute to its success. It is not merely a “nice to have” presentation for the shareholders but intrinsic to the way the business operates day to day.