Now that we have discussed the importance and purpose of a well-thought-out strategy, it is time to walk you through how to actually develop a strategy. We start by working backwards to determine where and what we want to be in the future. Once you have an end goal to strive for, you can back-fill in the pieces that will be needed to achieve the long term. Here is our process:
- Create a vision for your practice. When you first decide to open your business, you had a plan in mind for the way your company will fit into this world and leave its mark. We have all been there. This type of forward thinking can allow you to paint an image of what you want your practice to be like in the future. This can include values, image, size, and scope. The vision can include your values and ideals. These things, pulled straight from your imagination, will need to be reflected in the look and feel of your business.
- Set the long-term goals for your business and milestones for achieving the vision. How many long-term goals will it take for you to achieve your vision? Do you plan to become a fortune 500 company with your small business in fifteen to twenty, years or do you want to stay small? Think about what goals would take multiple years and write them down. Now create milestones that will show tangible results of moving toward each one of those goals. Milestones are measurements at points in time that let you know you are getting closer to completing your goals.
- Set the short-term goals and milestones over the next twelve months, which will lead you toward achieving those long-term goals. Continuing to work backwards, move from the long range planning to the short term. The short-term goal setting is what you want to achieve in the next twelve months. That will lead to long-term objectives, which, in turn, will lead to the vision of the company. At this point you may be thinking, ‘I am too small of a business for this to apply.’ Rest assured, nothing could be further from the truth. Even if you are a one-person show, these steps provide the basis for decision making. It will also help you determine what you want to do with your business, what you want it to become, and what you need to do to make it happen. In the short term, your goals may be to increase sales 20% by doing more direct sales calling. Well, now that you set the goal, what are you going to track to make sure you are actually getting there? Set monthly objectives that will make your successes and failures apparent. It is better to know if you are failing or moving in the wrong direction in the first month, then realizing at the end of a twelve-month cycle that you have been failing all along.
- Create the detailed steps needed to achieve the short-term goals and clarify the success factors. This is the how-to portion of to make things happen! What is the highly detailed process or plan for achieving the short term? What needs to be done? How will it get done? Why is it important to the success? Where will you need to do these things? Who will being working will you to help you achieve them? When do you expect it to be complete and what defines complete?
We mentioned a plan above to increase sales 20% by doing more phone calls. Think about this example. Who is going to do this? What is going to be offered? How will you do it? Why will the customer be interested (benefits)? Where will your calls be focused and when is the best time to call prospective clients? All of these questions need to be included in your battle plan before you can execute it. If you are just starting a practice , developing these questions and plan may only take an hour, but for someone who has a larger thriving practice, it may take a bit longer. In either case, spend the extra time thinking heavily on each component to make sure that the plan is created right the first time around.
- Establish a communication system for how, when, and where people will communicate. Communication is the key to putting this all together. Communication is vital to creating any type of business. Think about a football team with all of the different positions on the field and the importance of everyone knowing their role and responsibility for executing one play. In that one play, there is a systematized communication system, where the players meet in a huddle and communicate the next play to be made. In the huddle, team members can ask questions if they are not sure of what they need to do. When the huddle breaks to move to the line to play, they all start to communicate and read the situation. If players recognize something the other team is planning to do, there is a communication system for that. The quarterback is also speaking to the team, getting them ready to move down field and hike the ball. If the team is all on the same page and every individual begins functioning as a single entity, then they will play at a much higher level. But, if communication is not going well, players can get injured, quarterbacks sacked, turnovers, etc. So before diving into executing a strategy, determine a system of communication, chain of command, reporting, feedback, and roles and responsibilities.
- Define the current status of your business. Now that you have put all of these great plans together, you need to link them with the current status of your company. Take an in-depth look at the current status of your company as it relates to all 8 Arms of the Octopus and determine what resources are needed and what changes need to be made in order to align your current status with short-term goals. Once you have focused in on how to achieve the short term, make sure that the short-term steps are linked to the long-term goals, which will eventually affect your ultimate vision. Now that the strategy has come full circle, you should have a clear indication of direction, timeline, and purpose.
Let’s pull it all together, using the above steps, in an easy to understand example such as taking your family to the beach on a beautiful sunny day. This example will break down the steps into an east to understand example:
- Strategic Analysis
- Industry Analysis – What beach has the least amount of pollution and the best waves? Can you swim in the water or is it shark infested?
- Customer Demographic – What type of people are at the beaches? Is it mostly children, couples, or singles?
- Area Demographic –In what area is the beach located? Are the people who live in the area friendly to visitors, or is it more of a “locals” beach?
- Competition Analysis – What do the other beaches offer that may sway my decision to go to that beach? Do the parking prices vary? Are there lifeguards at each beach?
- Development of Strategy
- Vision- The perfect day for a family day at the beach.
- Long Term- Planning around school vacations, work schedules, and lunar cycles. (Full moon brings the best weather.)
- Short Term- Who is going with us? Are the kids bringing friends? Do we need a babysitter to help with watching the kids? When should we go food shopping for the beach or should we buy food at the beach?
- Process- We are leaving for the South Side Beach on Saturday, June 12th at 9 a.m. The beach is very family orientated and has very little undertow. No shark attacks have ever been recorded at this beach. We are taking our two kids and two friends. We will bring drinks, but purchase food at the snack shop. We have Google mapped the directions and will take the SUV for the two hour drive.
- Communication- All adults have been issued the agenda, have confirmed in email that they are coming, and are all reachable by cell phones.
- Current Status – Two guests have never been to the beach. We are all working very hectic work schedules and need a vacation.
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