We are starting 2023 and the pandemic is practically behind us, with new perspectives and renewed spirits we are approaching a new beginning and if we want it to be different and go for the better, it is time to have a plan.
But how should we do this exercise? And, above all, why is it important to do so?
These are some of the questions that we will answer throughout this writing. Recall this quote from DD Eisenhower:
“In preparing for battle, I have always found that plans They are useless, but the planning it’s essential”.
Do the plans work?
Sometimes I come across businessmen who simply minimize the importance of carrying out a plan, they tell me that it is useless, that they have done it in the past and it never works, or that if they do it, it remains in a filing cabinet until next year. . In a way they are absolutely right, but what are 3 of the most important responsibilities of the CEO of a company?:
- Generate and grow business profits and cash flow.
- Develop your work team through new skills to face changes in the industry.
- Making sure that the proposed strategy is carried out by executing it in the most efficient way possible, and this is where most micro, small, medium-sized and even several large companies tend to fail, and it is the reason why it becomes essential to plan a and again until the goal is achieved and things happen.
Another aspect that is important to mention regarding the subject of plans and the fulfillment of objectives are the reasons why the plan is forgotten and kept in a box. The reason is because the day-to-day whirlwind consumes most businessmen, since we stop doing important things to start doing urgent ones, that is, we stop designing, analyzing and planning to attend to the operational and urgent things that They consume time, energy and money. Of course, the whirlwind is necessary since, thanks to it, the company exists, however, the fact that the owner becomes aware of what he is deciding to do with his time on a day-to-day basis is essential.
Plan vs. planning
On the other hand, plans give us a feeling of control, we tend to think that the more detailed and exhaustive they are, the more we will be in control of our future, but most of the time we rarely come close to what we planned, causing frustration and abandonment. what to do then in this situation?
First understand that as human beings we have no control over the events that occur around us, for example: recent issues such as the war between the United States vs. Russia generated in Ukraine, COVID-19 or inflation makes it very clear to us that we have very little control over events.
One of the greatest and most famous military strategists in history was Field Marshal H. Von Moltke who said: “No plan survives contact with the enemy.”
Therefore, it is not the plan that is important, it is the planning, the exercise of thinking and reflecting that is really valuable.
Like a photograph of the Earth taken from the Moon
In my definition of business “intellectual sport that generates cash flow and works for the owner”, I maintain that one of the daily activities that every owner should consider is to look at his business as the photograph of the Earth taken from the Moon, that is. , take a moment to think and answer critical questions, such as:
- What can I do today to double my results with less effort?
- How can I generate double the income of what I currently generate next month, etc.
Planning, then, is not far from the exercise that I have just discussed, planning is organizing and establishing a series of data around objectives and compliance dates, but to get there, you have to use the most important tool and skill that we have human beings: Think, and we do it by answering difficult questions, and it is the reason why in an organization the people who occupy the highest positions are the ones who generally obtain the best salary, since thinking implies making decisions which It has consequences for all members of the organization.
The medium-term strategic objective
Planning then is the activity of immersing yourself in the material in reflection until every nuance is understood. It is not that the plan is useful in itself, it is the planning, that is precisely what Eisenhower was referring to.
To start planning in the organization, it is best to first of all develop your medium-term strategic objective, for example 5 years, this objective represents a detailed picture of how the company will behave in terms not only of its sales, but also of the products and services it offers, the type of customers it serves, the location of corporate offices, the number and location of branch locations, distributors or franchises, the person and the type of people who collaborate within the organization , the profits it generates, profit margins, etc.
This is a tool that we must look at regularly to obtain the certainty that things are done, let’s remember that our objectives and therefore our strategic objective must always be written in the present tense, assuming that it has been fulfilled, this will provide us with the necessary power and the energy to achieve it.
remember your purpose
Once you have the strategic objective, it is time to write and remember your purpose, which is the reason for your company, as Simón Sinek comments in his book Start with him why. When you communicate your why, you communicate passion and your differentiation, and being clear about it will allow you to stay on the path, let’s remember that the plan can change, but the purpose will always remain.
Reflect on your current situation
As a third step, it is time to reflect on the current situation, realize the place where the organization is located, what were the achievements that were obtained in the last year?, What were the main lessons learned from the past year?, etc. ., and later reflect in much more detail on the situation of the company in financial terms, processes, people, leadership, communication, technology, marketing, sales, operation, controllable and uncontrollable risks that has the organization.
Finally, propose and develop the objectives, the new standards that the company must achieve in the year that is about to begin.
Let’s remember that carrying out a planning entails benefits among them:
- It gives you the opportunity to know what you have
- Learn more about what you need to be successful
- Understand how all the pieces are interconnected.
Remember that the more you know the territory and the critical success factors, the better able you will be to make the necessary adjustments as you go.
It’s a way to get commitment.
When you involve your team, you give them the opportunity to make the project their own. Remember that without involvement there is no commitment from your collaborators, so one of the most effective exercises to align your team is precisely to plan together, and 2 or heads think better than 1 and 5 better than 3, and so on.
It is a powerful way to visualize success. We already talked about the importance of the strategic objective, and the more you plan and refer to it, you will be forced to refer to the future that you are constantly imagining, the more you do it and visualize it, the more clear and motivated you will be to make it happen.
Remember again Eisenhower’s phrase: “Plans are useless, but planning is essential.” Keep it in your memory and actions at all times, you will have extraordinary results.
Jorge Arturo Chavez Entrepreneur, business coach and executive coach, speaker and author of the book: “Grow your company, dare!” best seller on Amazon, where it embodies the training discipline that every business owner must maintain.