Here we are…already at the start of the second month of 2023. Is your family business on track with its strategic plan, or is a plan not yet in place?
One of the biggest barriers to family business growth is the lack of a written strategic plan. Why written? Because research shows when you write down your goals, you are 42% more likely to achieve the desired results. Who doesn’t want those odds on their side?
Larger organizations make the investment of time, energy, and a focused team effort to formulate a strategic plan. Committing to writing out a strategic plan annually is how you get your team focused on a small set of clearly articulated outcomes and the actions to produce the desired results. Smart entrepreneurs know and do the same.
Running a business without a strategic plan is like sitting in a sailboat in the middle of the ocean with no destination in mind. No map. No compass. You are literally saying “any wind will do.” When we run our businesses like this, the outcomes are generally not what we’re looking for.
The KEY to a successful strategic plan is a practical, implementable framework developed by the whole team. When done well, it creates clarity, confidence, and direction for the business. Accountability is built in and the owner begins to feel a sense of shared responsibility amongst the team.
We help you create a One Page Strategic Plan that provides a logical framework of critical points that charts the course to drive growth:
A SWOT analysis provides further insight and alignment – creating new ways to see old problems, surfacing new ideas, and aligning the team. It also forces the team to communicate about choices regarding the direction of the company.
Next, identify your BHAG (Big Hairy Audacious Goal). This informs the top five key thrusts (or capabilities) the organization must focus on over the next three years in order to move toward the BHAG.
From here, break down the 3-year key thrusts into Annual Priorities, “What we are going to do this year?” Then, drill down Annual Priorities into Quarterly Rocks, “What we are going to do this quarter, and who is accountable?”
This is how things get done – moving from planning to execution. Without action, you are aimlessly adrift.
Do you know the biggest benefit of strategic planning? THE PROCESS ITSELF! When a team works together to think through future challenges and develops strategies to break through those barriers, the resulting Strategic Plan can be a real catalyst for growth.
The direction of a family business – present and future – needs the right compass. Start charting your course and then take the actions necessary to set sail to the desired destination of success.
BLOG | FAMILY DYNAMICS / GOVERNANCE
In 1978 the 2-circle illustration of family business evolved when Harvard business professor Renato Tagiuri and then-graduate student John Davis added a third circle – Ownership – to better account for the distinct groups that existed in a family business. With the addition of Ownership, the 3-circle model more accurately captured the seven facets of ownership.Read More
BLOG | LEADERSHIP
When I first started Compass Point 20 years ago, leadership was an ancillary topic. My work focused on the systems, financials, hiring the right people, and being a confidant to the owner. At the time I didn’t see it as leadership coaching, but rather as building a relationship with a client who trusted me enough to let me see the inner workings of their mind and business. I helped the person as I helped the business. Times – and leadership – have changed.Read More
BLOG | OWNER FINANCIAL GAP
Family business owners are passionate about what they do. They’re working to carry on a business that family built – by their parents, grandparents, sometimes even great-grandparents and beyond. These owners are so busy providing for their employees, communities, and the next generation that they often ignore their own financial future. Boiling it down to its true essence, business is a means to building wealth. And what are we supposed to do with that wealth?Read More
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