In shortA good SME strategy fits on one page, is decided by the owners and management, and also says what you won't do. It's realised only when broken down into the leadership team's agenda, metrics and owners.
Signs the strategy lives only in the CEO's head
- The growth target is a euro figure nobody has broken down into actions.
- Owners' expectations differ, but nobody says so.
- A salesperson can't say in one sentence what you sell and to whom.
- Everything is taken on, because nothing has been ruled out.
What goes into the strategy?
Owners: time horizon, return expectations, risk appetite, continuity or exit. Direction and choices: vision, values, ideal customer and what you won't do. The target and its price: annual target, what growth costs and how it's financed. People and leadership: missing skills and management's three goals for the next 12 months.
How is it done in practice?
- Owners' intent: what do the owners want?
- Choices: where do we win and what do we give up?
- Goals, path and owners: what do the choices require and who does it?
- Approval and implementation: do we approve this and what changes?
Why one strategy day isn't enough
An approved strategy doesn't yet change management. Turn it into an agenda template, an annual calendar and a metrics view, and check after a month which first actions have been done. The Strategy Plan includes this implementation month.
FAQ
How long does strategy planning take?
About three months: two for building the strategy in four workshops and one for putting it to use.
Who should take part?
The owners and the leadership team, at most eight people in the workshops.