Strategic Planning -- The Road Map to Success

Strategic Planning -- The Road Map to Success

Success rarely just happens. In fact, it takes a lot of hard work, planning and direction from a company’s management team. Furthermore, it requires firm-wide dedication to a comprehensive road map called a strategic plan.

A strategic plan not only allows management to align resources, it encourages associates to work toward a common goal. It identifies areas for improvement and provides direction in responding to external and internal business issues. The company that implements a strategic plan will also benefit from improved internal communication and innovation. Here are the stops you need to take on your road map to success:

First Stop: SWOT Analysis

The planning process begins with a thorough review of the company’s strengths, weaknesses, opportunities and threats. How can the company take advantage of strengths and opportunities? How can it minimize the exposure of weaknesses and threats? Analyzing a company’s performance record, outlook and business plan can provide a better understanding of the past and clear guidance for the future.

At age 67, Rea & Associates is completing the first year of operations under its current strategic plan.

“When our management team began brainstorming, the first thing we pulled together was a team of people to determine ‘what we wanted to be when we grew up,’” said President Tim Michel. “We sought out significant input from business advisors, customers and colleagues – relying on both formal and informal research methods.”

During the strategic planning process, it can also be beneficial to work closely with someone outside the company who is knowledgeable about the business. According to Michel, an external consultant can provide support without getting involved in many of the emotional aspects often encountered during difficult decision making.

Dave Cain, a Rea shareholder, agreed that getting started was the hardest part. “Once we got the ball rolling, the process became easier and easier,” he said.

Second Stop: Focus Your Energy

In simple terms, a strategic plan paints a picture of what a company should look like at some point in the future, say three to five years. Once designed, the plan should provide clear guidance toward attainable, timely goals. The ability to set these goals and stick to them can determine a company’s true potential for success.

“Rea’s strategic plan was broken down into several key criteria to focus on over the next five years,” said Cain. “We knew we wanted to concentrate our efforts on possible expansion, hiring the right people and utilizing shareholder talent, among other things.”

“And knowing what we wanted to be in five years helped us determine the steps we need to take today in order to achieve our plan,” Michel said. “After you work out the details of how you’re going to get there, you’ve got to keep focusing your energy in the right direction. If something comes along that doesn’t fit the parameters defined in your plan, let it pass by without getting distracted.”

Destination: Success

Business owners obviously want their companies to be successful. And a number of owners want their companies to survive so they can be successful for future owners, too – especially when those future owners are family. Only long-term commitment to a sound strategic plan can ensure this success.

“The strategic plan cannot be placed on the shelf to collect dust,” Cain said. “Management needs to continually review the plan, tweak the plan and communicate the plan to all associates. Everyone needs to be involved and dedicated.”

In addition to developing and implementing our own strategic plan, Rea & Associates has assisted numerous businesses with their own strategic planning initiatives. For more information on how we can help you develop a strategic plan, please talk with your Rea associate.