Strategic objectives – more than a financial plan
by Kelly Schwedland
What does our company need to look like when it’s done to give you the life you want?
We last talked about your primary aim in life, and came to the realization that it is much more than things to have or things to do.
Now you need to develop a strategic objective of a business that will help you get it. What does the business need to look like, when it’s done, in order for you to achieve that primary Aim? In order for you to be the kind of person that you want to be, what does your business need to look like?
How big does it need to be? What are the gross sales? What do the profits need to be? What does it need to look like? What does it need to feel like? What does it need to act like, when it’s done?
Your strategic objective isn’t about creating some hypothetical, wishful thinking type business plan. It needs to be a realistic vision, an outgrowth of your life plan, as well as your business strategy and plan for obtaining it. Something that can be looked at every day. To be used as a measuring stick of your daily achievements. Something that everyone in the company can use as the benchmark or the decisions that they make each day. This isn’t just about “how big should it be?”, Although this is probably the first area that should be looked at. The question is: how big is it going to need to be to obtain your life plan? If you can’t answer that question, then you can’t even begin to tell if it can help you achieve your life plan.
Your strategic objective is also about what your customers feel when they do business with you. How will your employees develop to there potential? Where will you be doing business? What standards are you going to insist upon in the areas of cleanliness, reporting, management, hiring, firing, training and what ever else? It is all about creating an environment that you would be proud to bring anyone or everyone in to, and show them how it works. Just as important is the question When will this be done?
Stewart McMillan of Task Force Tips puts it this way. He says that the process of creating the strategic plan is a time to step out of the trees and look at the forest. He also adds that while setting financial goals is a part of the process it has never been the driving force of the company. Doing it right is more important. The reason for the business’s existence was his father’s frustration over the need for proper water flow while fighting a fire. This constant striving towards something better doesn’t end with the product. It shows up in the company’s attitude towards creating a better life, as much for the employees, as for the owners. That in fact, some of the strategic goals have included: Having a fun place to work. Being the employer of choice in town. It also includes helping their dealers be better at business (not better informed about their product, just business) This attitude has resulted in the creation of a truly world class manufacturing facility. And the financial side? Well as long as the company takes care of its customers the customers have taken care of the company.
So what is the point? Despite the busy work days it is an absolute necessity to take the time and create the plan, vision, or design of the business that is an out growth of your life plan. Once we have a strategic objective we can next look at our organizational strategy on our way to creating a business that gives us more life.
Kelly Schwedland is president of American Business Dynamics, a small business consulting firm focused on issues related to growing companies.