Any business or nonprofit with a strategic plan developed prior to February 2020 now likely realizes the limitations that come with a traditional 3 to 5 year plan. I doubt there were many strategies in place to help your business deal with a global pandemic. And yet, that is exactly what hit us and continues to challenge many businesses and organizations.

Thinking strategically about where you want to take your business is a key component in making sure you get there. After all, having a great vision for the future of your business is only half the battle. You also need plans and steps to get you there; as well as, communication with and buy-in from your team. If you are still in the process of crafting your vision you might want to go back and read this and maybe this to work on that piece of your business leadership. Once you are crystal clear on your vision, you need to mobilize every member of your team towards reaching that vision. That’s where strategy comes in.

Strategy is defined as:

A plan of action or policy designed to achieve a major or overall aim.

This is a pretty simple definition for something that is so important to the success of your business. This article is going to share some of my ideas on how best to create strategy for your business, along with some of my key take-aways from a book called “The Nonprofit Strategy Revolution” by David La Piana. While the book is focused on strategic planning for the nonprofit sector, the points I will share are applicable for both for profit and nonprofit businesses.

Traditional Strategic Planning

The first point I want to share is around the timing of strategic planning. Traditionally, every 3 to 5 years organizations spend exorbitant amounts of time and energy on creating a beautiful strategic plan. It would involve input from stakeholders and volunteers, customers and staff. Every word would be crafted to be just right. In larger organizations they would often hire a graphic designer add in images and charts and graphs to make it really beautiful for sharing and showing off. There are several problems with this traditional method of strategic planning.

1. First and foremost is that society and business move too quickly these days for a plan to be relevant for more than a year or so. Businesses need to be much more responsive to the ever changing world.

2. Building on the first point, your business is likely also changing quickly. As you continue to work towards your vision you will need to continuously recalibrate to ensure you’re still on target.

3. When a business commits significant time and resources to a strategic planning process, they are often burnt out on the whole thing and they don’t want to even think about strategy for a while. Big mistake since your strategies should be driving your goals, actions and decision making.

4. Those shiny impressive documents often end up in a drawer or on a shelf, never to be looked at again, until the calendar says it’s time for another planning process. A plan that is not actively referenced and measured is of little value.

Real-Time Strategic Planning

The concept that is laid out in David La Piana’s book provides a method of creating strategy that is much more responsive and relevant than the traditional process. With the need to adapt quickly to new information and dynamics, any business can benefit from implementing the Real-Time Strategic Planning Cycle. Three key components that really differentiate this process from the traditional include:

• Strategy Screens

• Big Questions

• Ongoing Implementation

Strategy Screens

In a traditional planning process the business usually takes time to clarify their mission and/or vision, who they are as a company, and their organizational identity. That part is similar in the Real-Time process. The next step is what really looks different as the business uses that information to create “Strategy Screens”. These are criteria the organization will use to analyze potential strategies they might implement when faced with challenges and opportunities. The Strategy Screens helps the company determine if the potential strategy is consistent with their organizational identity.

Every company’s Strategy Screens will be unique to their organization and will likely evolve over time and as needs change. Screens are written in the form of a statement that each potential strategy is compared against. For example, La Piana’s suggests that most companies will have something similar to these two screens:

• The strategy is consistent with our mission/purpose.

• The strategy builds on our current competitive advantage(s).

Each business will have between 5 and 8 screens. Other topics that are important to compare the potential strategies to are things like breaking-even or surplusing, sustainability, human capacity, consistency with brand, and honoring key relationships. By developing Strategy Screens thoughtfully and intentionally AND before a crisis or opportunity presents itself, will simplify your decision making. This process helps you focus on what is important as an organization and avoid being reactionary or losing sight of who you are when the pressure is on.

Big Questions

When a challenge or opportunity presents itself, rather than jump to the potential strategies, the Real-Time process involves determining the “Big Question”. The Big Question frames the challenge/opportunity and can drive the potential strategies. For example, when the pandemic hit, restaurants struggled significantly. Options for the Big Questions for businesses that particular industry may have been things like:

• How will we stay in business?

• How can we change our business to meet new needs?

• How will the restaurant industry survive?

• What can we do to support our community in new ways?

This is a short-list, I’m sure there are many more that came up. Notice that the questions will drive different strategies. It’s good to ask the question in several different ways to determine what will be best for your business. In the end you may decide that you need to combine several of the questions in order to develop the right potential strategies.

After determining your Big Question for a given issue and coming up with all the potential strategies, you go back and measure them against your Strategy Screens. Make a simple graph with the different strategies along the top and the screens along the left side. Test each strategy against each screen to see how they measure up. This tool should make it easy to see which strategies measure up best with the screens you have committed to.

Ongoing Implementation

In order to make strategic planning valuable, it needs to produce results, right? Strategies in and of themselves do not lead to action. Once you use the Strategy Screens and Big Questions to determine the strategy or strategies you will implement moving forward, you need to develop goals, action steps and accountability. In the restaurant example, if you decide your strategy is going to involve shifting your servers to meal deliverers, that alone will not get you there. You need to break it down.

I think this is where the Real-Time process really shines and produces results you just don’t see from the traditional process. By looking so far down the road, even when the traditional system sets clear goals, actions and accountability, they are usually so far reaching that the company loses sight of them and they become irrelevant before they are completed. Real-Time strategies are addressing immediate challenges or opportunities; therefore, the goals and actions that are developed in this process are crucial to moving the organization forward. Simple tracking tools that are reviewed weekly will keep everyone on track and accountable.

This is a very simplified explanation of what I believe to be key differentiators between these two strategic planning processes. It’s not meant to cover everything, rather to help you understand the value of looking at strategy creation in a new and innovative way. I utilize many of these concepts when working with businesses to help them become thoughtfully responsive, while forging ahead.

If you would like to explore Real-Time Strategic Planning for your business or organization, email me at kim@athena-coco.com to schedule a free 30-minute consultation. Calm the Chaos by streamlining your strategy development, and find time to focus on what’s important to YOU.