Keeping it Simple: The One-Page Strategic Plan

There is probably nothing in business more valuable than good strategic planning.  And there is unfortunately nothing that wastes more time than bad strategic planning.  Organizations often spend a lot of time working in an annual planning process only to have the plans quickly fade away until the following year's process begins.  Because of this, many companies get frustrated and drop the process altogether rather than find a way to make it more effective.

An effective strategic planning process enables companies to take control of their future and remain focused on the critical areas that will result in sustained periods of growth and success.

The Basics

By definition, strategic planning is a process by which an organization's leaders define and implement the strategies to achieve the company's fundamental purpose.  The output of the process is a set of high-level objectives (i.e., critical improvement areas) and initiatives (specific actions to achieve the objectives).  Inherent in this definition is the ability to turn strategy into action.  Although, by itself, the planning process tends to improve communication within the management team, increase knowledge of the company and its markets, and cultivate teamwork, it is the action - i.e., actually achieving the objectives - that creates value for the organization.

Elements of an Effective Process

To be effective, it is helpful to clarify and understand the expectations of the planning process.  As mentioned above, the process must absolutely include a basis for action.  The plan must also provide a clear and consistent focus, a platform for involvement of team members, and a method for communication.

Although the depth, frequency, and specific process used will differ for every company, there are some basic elements that greatly increase the chance for success.  First of all, the organization must have a clearly defined purpose, including a mission (which, year-after, year, keeps the plan grounded) and a vision (which provides a clear direction for planning).  Objectives (targets along the way) and initiatives (projects to achieve the targets) are the components of the process that bring the vision to reality.

Also included in an effective process are key indicators, which measure the organization's progress in achieving the objectives.  Because of this, it is absolutely necessary for the indicators be directly linked to the high-level objectives.  If the indicators are not linked to the objectives, then you either have the wrong indicators or the wrong objectives.

The Process

The basic process for creating the strategic plan  is as follows:

1. Review/create the company's purpose;
2. If necessary, determine the overall focus of the plan based on the organization's most critical needs;
3. Develop key objectives to be completed over the following 1-3 years (depending on the organization's normal planning horizon);
4. Utilize (or create) key indicators to measure progress on the objectives developed above;
5. Identify initiatives (or projects) that will enable the organization to meet objectives developed in step 3 and assign a leader to each;
6. Communicate the plan throughout the organization;
7. Conduct periodic reviews to assure that the initiatives are progressing as expected and, if so, whether they are actually achieving the key objectives;
8. Take action when necessary (based on the review) to get the organization back on track toward achieving its key objectives.

The One-Page Plan

The steps presented above require a lot of reflection and discussion in order to assure that the plan and associated actions address what is critical for the company.  Once the plan is developed, it can be communicated throughout the company in a one-page format (see example below).  The one-page summary is a simple document that is backed by many hours of reflection, debate and discussion on the direction of the organization.  As simple as it looks, though, the summary is an important step toward gaining understanding, acceptance, and involvement throughout the company.