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This column is intended to answer common questions related to strategic planning and strategy in general. In each issue we will answer questions posed by seminar attendees, our clients and our readers. Please send your questions to Suzanne Simmonds, E-mail: simmonds@cssp.com ~ Mail: CSSP, Inc. P.O. Box 851 Southport, CT 06940-0851 ~ Fax: 203-255-9191.
Can we get better at making assumptions?
By their very nature assumptions carry a great deal of uncertainty and subjectivity. Even in the best case, the unknown can cause anxiety. Assumptions are however; essential to the planning process and you can continue to improve in the way you deal with them. The most basic starting point is to do everything you can to assure you are making all of the assumptions that you need to. This involves taking a comprehensive look at all of the elements you believe will affect the future environment in which your company will operate. The most critical assumption is often one you neglect to address. The Simplified Strategic Planning process devotes an entire section to prompting assumption development. While this should go a long way to assuring complete treatment of assumptions, it is always a good idea to ask your team if there are any additional factors requiring an assumption. A periodic review of your assumptions is also important. Reviewing assumptions together as a team serves two purposes. First, it is consistent with the definition of assumptions as temporary estimates. Frequent review will provide an early "heads up" should your assumptions not develop as you expected. In addition, the review process can uncover errors you made in formulating your assumptions so you can avoid these in the future. Though you will certainly be able to improve how you deal with assumptions, recognize that you will never be able to accurately predict the future. Only by continually challenging your assumptions will you avoid the risk of letting assumptions become fact in your mind.
We have a number of major initiatives in addition to our Strategic Objectives. How do we integrate all of these?
If what you call "major initiatives" are in fact strategic in nature (they have the potential to significantly affect the future course and direction of the business) then they should be considered along with other strategic objectives when you are prioritizing and allocating resources. Associated Action Plans should be developed for each one and they should be reviewed for both proper resource allocation as well as progress on a regular basis. If they are not strategic but you are committed to working on them, the time required of key managers should still be accounted for in their personal annual schedules. Doing so will allow each manager to get a realistic picture of the true time they have available for Strategic Objectives. It is critical that you account for this time. If you do not, you are just fooling yourself in terms of how much you can accomplish.
The Simplified Strategic Planning manual is very useful in organizing plan documents. Is there some other format we can use to show the linkage between our Strategies, Goals and Objectives?
The Strategic Planning process does not follow a linear progression. Although the process does take you through a sequential examination of your business and its environment, the final determination of Strategies, Goals and Objectives comes from the assessment of all the information gathered in its totality rather than from rigidly moving from step "a" to "b" to "c". That having been said, there should clearly be linkage between these elements. Though not a substitute for the documentation in your Strategic Planning Workbook, you could try creating a simple chart that shows each of your strategic goals at the top and the corresponding strategies and Objectives listed below each goal.
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