You are SME managers, so you are used to putting out fires, unfortunately. You are also used to working in your business instead of working on your business.
But how do you change all that? By establishing your strategic planning. But what does it mean to work on your strategic planning? Before answering, I would like to confirm the problems you are experiencing and that are related to a lack of strategic planning. Unfortunately, I see these problems in all the companies I work with.
Your strategy challenges
- Your results are not constant
- Employees lack leadership
- Your operations cannot keep up with demand
- Your growth is not constant
- You don’t have liquidity to optimize things
- Managing cash flow is difficult, you always have to juggle with the invoices to pay
- You don’t have time to improve things, the priority is to deliver your orders
- Your suppliers ask to pay them in advance because you have paid late several times in the past
- Your business income and gross margin are not constant
If you are having these challenges, it means that you must work to establish your strategic planning.
What if I ask you to explain to me your strategy in a few words? And if I ask your employees to explain to me your strategy, will they all be able to answer me correctly?
So what is strategic planning? It’s knowing where you are going. Know what you want to do and achieve with your business. If on a boat sailing in the open sea, the captain does not know where he’s going, he may have a crew to help him, the boat may go in circles and sails according to the current instead of arriving at good harbor!
So strategic planning is knowing where you want to go. There are critical steps to get there. Among others, the following three. First you need to have a long-term vision. Where do you want the boat to go? What do you want to achieve? This vision should also help you stand out from your competitors and motivate your work teams. It will bring you a future goal, which will help you to establish the actions to be done in the present, instead of sailing at the whim of the waves.
Then you have to establish the values. These are rules or beliefs that will describe the personality you want from your business. You have to explain and define them. Everyone in your business should believe in them and share them. They will help you have a strong culture and guide business decisions.
The other step is to establish a mission by asking yourself why you do things every day. What is the reason for your daily activities?
Establishing your vision, mission and values will then serve to establish the continuation of your transformation.
The next step towards your transformation
- Establish strategic objectives (high level for the company)
- Establish a strategic and operational budget
- Develop leaders with the help of management coaching
You want help to start, do not hesitate to contact us, we love working with committed leaders that are ready to transform their organization!