Real Strategy or Groupthink: How’s that 2014 Plan Coming? (Part 1)

If you’re on a calendar fiscal year, right now you’re probably plugging in semi-final numbers for the C-execs to bless in your 2014 operating plan. You probably went through your business goals, threw up some modest growth figures (to possibly have them sent back for rationale that shows faster and denser growth), and now people are trying up loose ends. Will it work?

As the string starts to run out on 2013, with B2B business  heading toward the Thanksgiving holiday and the annual great sometimes “slow-down,” what are we all doing in the next few weeks? Are we maximizing the time left in 2013 to set the stage for a vibrant and truly memorable (in a good way) 2014?

Without looking at it (presuming of course that you company has one), what does your strategic (or operating, depending on where you are) plan list as its two top action steps for 2014?

Not strategic objectives or goals, but action steps to achieve those objectives and goals(“We will achieve this goal by completing this action, which success will be measured by this”).

Now ask yourself: how concrete are those action steps? Does everyone understand what role they will be playing in achieving those action steps?

Done? Take those two action steps and ask this question: what is the underlying value proposition that is going to enable those action steps to really take place? Are the resources in place to achieve this?

What strategic advantage, what differentiating element do those action steps naturally capture and leverage? Is the value proposition thought-through and credible? Is the strategic advantage truly a strategic advantage – or is it a bit of well-wishing Groupthink that everyone hopes is true?

Once you’ve done this for your objectives and accompany action steps, rinse and repeat.

Now is the time to be honest, because before you know it, it will be July. If we wait and be honest then, that second quarter review can be brutal.

Remember, no battle plan survives its first contact with the enemy. How will yours fare?

The authors of Built to Last, a remarkable and timeless tome (for a variety of reasons), noted that the best differentiating strategic advantage that a company can have is that company’s capacity to innovate. I think when this book came out that the entire business world bought in to it, because one can’t seemingly get through an annual report or vision statement now without stumbling over the words “innovate” or “innovation” numerous times. In fact, a national editorial board voted “innovation” as the most-overused word of the year not too long ago.

Nonetheless, the fact remains: the No. 1 strategic advantage of a company is its capacity to innovate. Change the rules. Produce positive disruption. Make, produce or think up something that forces people and companies to change.

Does your operating plan, your strategic plan, your action steps, your value propositions address any of that?

Do you really have a strategic plan that includes one-to-three well thought-out initiatives? Or does your company have a “I hope we survive Obamacare without losing too many employees or marketshare” type of plan?

Maybe the next three-six plus weeks would be a good time to dig in and make the preparations that transform all of the above.

Before one breaks out the champagne to celebrate the end of planning season, remember what one CEO said: “If you want to make [insert name of deity here] really laugh, show him your business plan.”

Please stay tuned for part II. In the meantime, if you have any planning war stories, please feel free to share them.

By Michael Snyder, Managing Principal, The MEK Group