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"Plans are worthless, but planning is everything." - Dwight Eisenhower
Annual planning is here. You need a plan to drive more growth next year.
I spent many years fumbling about, trying various planning processes. Here's one that works.
Annual planning is here. You need a plan to drive more growth next year.
I spent many years fumbling about, trying various planning processes. Here's one that works.
First, what doesn't work for growth?
1. Brute force. You can't 3x your company by working 3x harder.
2. Hopium. "I have a feeling next year is gonna be our year". Hope is not a strategy.
3. Spaghetti testing. "I have these 10 ideas I got online. Let's try them one by one."
No.
1. Brute force. You can't 3x your company by working 3x harder.
2. Hopium. "I have a feeling next year is gonna be our year". Hope is not a strategy.
3. Spaghetti testing. "I have these 10 ideas I got online. Let's try them one by one."
No.
Instead, you need strategic growth.
It starts with an honest assessment of where you are right now. What's going in? Think through your internal assets and external pains. Strengths and weaknesses.
It starts with an honest assessment of where you are right now. What's going in? Think through your internal assets and external pains. Strengths and weaknesses.
Next, get clear on where you'd like to be 1 year (or whatever time period) from now. What's a non-negotiable outcome?
Now, map out what's the gap between where you are and where you want to go.
Next: define all the obstacles. What's keeping you from closing the gap? Why aren't you there already? Why haven't the obstacles been addressed before?
Getting crystal clear on your obstacles is key. If you get this wrong, might render most of your plan useless.
Getting crystal clear on your obstacles is key. If you get this wrong, might render most of your plan useless.
Next: define a set of initiatives / projects to overcome the previously defined obstacles. Each initiative should be designed to overcome an obstacle. So after implementing each, you're starting to close the gap. The floor keeps rising.
Word of caution: don't confuse obstacles with symptoms.
"Our churn is high" is not an obstacle, but a symptom.
"Slow rate of growth" is a symptom, and our job is to figure out what is REALLY blocking our revenue growth
"Our churn is high" is not an obstacle, but a symptom.
"Slow rate of growth" is a symptom, and our job is to figure out what is REALLY blocking our revenue growth
To recap, strategic growth needs:
1. Willingness to think through your internal assets and external pains
2. A clear, specific outcome
3. Precision on the obstacles preventing you from being at the objective
4. Description of the challenges and initiatives for overcoming them
1. Willingness to think through your internal assets and external pains
2. A clear, specific outcome
3. Precision on the obstacles preventing you from being at the objective
4. Description of the challenges and initiatives for overcoming them
Set aside time for thinking. Involve everyone who's part of the planning.
- What is the one thing, which if it were accomplished today, would make the biggest difference in our business?
- What is the primary obstacle that is impeding our progress between Point A and Point B?
- What is the one thing, which if it were accomplished today, would make the biggest difference in our business?
- What is the primary obstacle that is impeding our progress between Point A and Point B?
- What sacrifices will we need to make or risk we will need to take to overcome this obstacle?
- If we are to be successful in overcoming this obstacle, what must we start doing and what must we stop doing?
- If we are to be successful in overcoming this obstacle, what must we start doing and what must we stop doing?
For each goal that you set, translate that into critical drivers.
Example.
Desired outcome: 30% increase in profit.
Critical driver for this: 20% increase in revenue.
Critical driver for that: hire 2 salespeople.
Critical driver for that: interview 15 candidates.
Etc
Example.
Desired outcome: 30% increase in profit.
Critical driver for this: 20% increase in revenue.
Critical driver for that: hire 2 salespeople.
Critical driver for that: interview 15 candidates.
Etc
Desired Outcome: increase blog traffic by x (effect)
Critical driver: write 2 posts/week.
It's like cause and effect.
You track the implementation of critical drivers week by week. If the desired outcome is missing, surely the execution of critical drivers was missing.
Critical driver: write 2 posts/week.
It's like cause and effect.
You track the implementation of critical drivers week by week. If the desired outcome is missing, surely the execution of critical drivers was missing.
Once you have goals, current reality, and obstacles mapped out, start setting the strategy. Figure out the people/skills you need for it, and how to ensure the execution of the said strategy.
Focus to multiply the effectiveness of your effort, concentrate action and resources.
Focus to multiply the effectiveness of your effort, concentrate action and resources.
