Connecting the strategy to the operating plan is vital for success. So, do all the elements in your strategic planning fit together?
Defining and executing strategy is one of the most important tasks of a leader. In my experience, a strategy will only be effective if two cornerstones are in place. Firstly, it must be built around the core values of your business. And secondly, the annual operating plan for each division or department must be aligned to the strategic initiatives.
Core Values are the foundation of your strategy
So what do we mean by the core values of your business? Your core values are the beliefs that determine the conduct, activities and goals of your organization. They establish why you do what you do and what you stand for. When your core values are deeply ingrained, and your managers “walk-the-talk”, they become a way of life within your company.
In terms of strategy development, your core values answer the fundamental questions; what do you believe in, what do you deliver, and how do you do it? If you fail to answer these questions and build your strategy on a poor foundation, you will likely fail.
The organization must buy into the strategy
Sounds obvious, right? But you might be surprised how many strategies fail – not because they were bad strategies, but because not enough effort went into aligning the organization with the strategy. Some questions to ask yourself;
- Did you involve the organization in the strategy process, and in doing so, did you capture the core values of your company?
- Did you communicate the completed strategy to the entire organization and other stakeholders?
- Is the operational plan for each department aligned to the strategy?
- Do you hold regular business reviews to ensure people are sticking to the plan?
Develop a strategy map
As part of your governance around your strategic planning, consider mapping the process and using it to communicate expectations to the organization.
Contact Annan Consulting to discuss how we can help you connect your strategy to your operating plan.