By taking a step back and reviewing the current business situation and possible pivot points, leaders can gain new perspective on their 2024 strategy, writes Dave Coffaro.
3 minute read
leadership strategy
Sesame/Getty Images
Most organizations begin their new year's business planning efforts in the fourth quarter. Leaders are focused on analyzing year-to-date financial performance, defining growth expectations, and developing business plans for next year.
Another familiar ritual is that by the end of the first quarter of a new year, a business plan is reduced to just a budget. From that point until the end of the year, management discussions sound more like financial reviews than management conversations.
An alternative planning approach begins with these four areas of research as a framework for leadership discussions and the creation of a 12-month business roadmap.
conditions
- What do we know for sure right now about customer expectations and preferences for next year?
- What do you expect the business operating environment to be like over the next year?
- What will the talent landscape (employee expectations, development priorities, new talent acquisition, attrition, and retirements) look like in the year ahead?
- What is the biggest uncertainty in the external business environment in the year ahead?
- What is the biggest uncertainty within your organization over the next year?
pivot point
- What events within the organization cause changes to the business plan during the year?
- What external business environment events cause changes to our business plan during the year?
- What internal or external events would cause performance expectations for the organization to change in the coming year?
engagement anchor
- How do we (organizational leaders, managers at all levels) stay focused on business planning (beyond budget) throughout the next year?
- How do you ensure accountability for your organization's priorities and strategy throughout the year?
- How do you align your business activities with your cultural pillars throughout the year?
- How do we recognize exceptional contributions to our goals and cultural pillars throughout the year?
- How do you deal with performance that doesn't align with your goals and cultural pillars throughout the year?
change leadership cues
- What are the clues in the external business environment that may indicate the need for pre-emptive operating model changes?
- What changes in the competitive environment might indicate the need for pre-emptive operating model changes?
- What are the clues in your internal organizational environment that might indicate the need for a pre-emptive operating model change?
- What financial performance results indicate the need for pre-emptive operating model changes?
When you step back and consider these questions as pre-work for your 2024 business plan, you accomplish three things. First, this process helps leaders prepare to create an actionable and adaptive roadmap to guide the company's activities throughout the year. Second, questions lead to curious, strategic inquiry and constructive discussion. Finally, documenting and sharing the answers to these questions (preferably updated quarterly) provides leaders with a touchstone to connect business planning and financial performance.
Dave Coffaro is a management consultant specializing in guiding companies through change. As a principal in the Strategic Advisory Consulting Group, he works with service companies to accelerate growth and create more favorable economic conditions. His latest book is Leading from the ground up: 7 essential elements for gaining relevance.
The opinions expressed by SmartBrief contributors are their own.
___________________________
Subscribe to SmartBrief's free email newsletter About leadership. Found in SmartBrief Over 250 industry-specific newsletters.
