Strategic Planning: The Key to Business Alignment and Success.

Ever wonder what large companies do to drive alignment? If you have never worked within a large organization, you might not know how important strategic planning is in aligning the different organizational functions and leaders. Most Fortune 500 companies go through an annual budgeting and planning process where they map out financial investments, key initiatives, and strategic objectives for the next 3 to 5 years. There is wisdom in this process. The more time you take to determine where your business is going and the key steps you need to take to succeed, the more confidently and quickly you can make day-to-day decisions.

One of the more widely used systems for strategic planning is the balanced scorecard. Introduced in 1992 by Robert Kaplan and David Norton, the balanced scorecard encourages businesses to identify goals from a financial, internal business process, customer, and learning perspective. By establishing business goals from different perspectives, you can create a well-rounded approach to improving your business. This will help you avoid focusing too much on one area of your business while neglecting others.

Aligning Business Resources with Strategy

Your business does not have unlimited resources. How you spend your money, time, and resources today will determine your business capabilities and profits tomorrow. Business authors like Jim Collins and Patrick Lencioni have documented the risk of business leaders not allocating sufficient time for planning. The adage, measure twice, cut once is especially true in business. Defining where you want to be in 5 years will increase your likelihood of reaching your goal.

How to Build a 5-Year Plan:

• Consider the impact that you want your business to make. What kind of legacy do you want to leave behind? What problems are you trying to solve for your customers? Answering these questions will help you to clarify what milestones you will need to accomplish over the next 5 years to achieve your goals.

• Consider what people, resources, systems, and processes you need to reach your goals. Do you have the right team in place? Do you have the right technology? Do you have the right processes in place to support your growth? If not, what steps do you want to take to improve the infrastructure of your business? The organization you have today does not have to be the same as the one you have tomorrow. Being intentional about the changes you want to make will help you build a better tomorrow.

• Set financial targets and define the revenue streams that will help you achieve those targets. How much revenue do you need to generate to reach your goals? What investments will you need to make to create more revenue? One of the hardest things for many business owners is accepting that financial progress is not a straight line. Frequently, you must invest in the short term to make more money in the long term. Being clear on your long-term goals will help you find the clarity necessary to invest in the people and capital you need today to reach your financial goals tomorrow.

Who should you include in this plan?

When you are developing long-term plans, it is prudent to get input from multiple perspectives. As the leader, you are the ultimate decision maker, but talking with your CPA, business coach, lawyer, mentors, employees, vendors, and even customers can help you make a more informed decision about the future of your business. The stakes are high; apply rigor to your thinking. You will never be able to anticipate every potential obstacle or future need of your business. Still, by talking to various people, you are more likely to come up with goals and plans that are specific, measurable, actionable, realistic, and time-bound.

What should your plan look like?

That is up to you. Many options will arise if you Google images and ask for a 5-year plan. Pick the one that works best for you. The most important aspect of this is the process, not the visual output. The time you take to think about where you want to be in 5 years and your conversation with others will help you find more clarity in your goals. I have posted the typical balanced scorecard I built with my clients. If you are interested, you can download the template and use it.

When should you update this plan?

Update your plan annually. Your long-term goals will change based on your short-term successes and learning. Re-evaluating long-term goals each year will help you to stay focused and refine your thinking.

Summary:

Building a 5-year plan is a best practice to help small business owners clarify their goals and lead more confidently. When you set out on a journey, having a clear vision of where you are going can help you prepare appropriately. The time you spend

1. Defining your financial goals

2. Identifying your ideal customer and how you will serve them

3. Designing efficient and effective processes

4. Crafting people selection and development strategies

will help you to have a blueprint for achieving your long-term goals.

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Thank you for reading this blog

I am a father, husband, executive coach, and former retail executive. My coaching expertise comes from 21 years of leading operations, sales, and marketing teams. I understand what it is like to feel stuck, undervalued, and underappreciated.

I also know what it takes to invest in professional development, climb the corporate ladder, and find fulfillment at work.

Your career path is a scavenger hunt. Each opportunity prepares you for the next. Allow me to help you clarify your path and accelerate your professional development.

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Email: dcunion@yourpathexecutivesolutions.com

Fight the Myth of "If you want it done right, do it yourself".

Do you live by the saying, "If you want something done right, do it yourself."? Most individuals who have experienced success based on their own individual efforts struggle to transition to delegating tasks to others.

This can be rooted in various beliefs. You may feel training others to do tasks correctly will take too long. You could be anxious about the cost of hiring great talent. You may also see your self-worth linked to what you produce and be uncomfortable taking on the manager role.

No matter the beliefs that are getting in the way of your delegating, deep down, you know the only way to scale your business is by reducing the number of tasks you are personally doing and investing time, money, and effort into building your organization's competencies.

Micromanaging versus effective delegating

Frequently, people who manage others opt for micromanaging instead of delegating. Micro-managing allows you to stay close to the work and leverage the hands of others without engaging their minds.

While micromanaging can allow you to get things done, it restricts your growth, leads to burnout, and contributes to employee turnover. Micromanaging is harmful because it does not engage the full person. It will lead you to treat employees like machines to be programmed and directed instead of humans who are resourceful, creative, and able to add incremental value to projects.

Instead of micromanaging, you can de-stress your life and expand your organization's potential by investing in delegation. Effective delegation is the key to growing the talent around you, working fewer hours, and achieving organizational goals. A disciplined approach to empowering employees can create a learning organization that builds new skills and competencies through continuous improvement. There are four steps to effective delegations.

1. Pick the right people

2. Define the task

3. Provide parameters

4. Monitor results

The time you spend executing these steps will reduce your need to micromanage and increase your comfort in delegating. Allowing you to dedicate more of your time to activities that bring you greater fulfillment, are more strategic, and generate sustainable growth for your organization.

Pick the right people for the right jobs

In his book Good to Great, author Jim Collins highlights the importance of having the right people in the right seats on the bus. This is essential to the success of any company. Your most important role as a leader is to surround yourself with talented people who can help you accomplish your company’s goals.

The first step in this process is to clarify what you are looking to accomplish and define the skills and experience that you believe are necessary for success. Once you do this, you can identify who can best support you in executing this initiative.

It is important to pick the right person to do a task. You want to identify someone with the will and skill necessary to succeed. If you currently do not have someone on your team who has the desired skill, then your focus has to be on adding additional people to your team or developing the skills of a current member who has the potential to grow in capabilities. Remember, team members do not have to be employees. Hiring contract workers, virtual assistants, or consultants are all great ways of expanding the capabilities of your team.

Define the task

Once you have selected the right people to work on an initiative, the next role of a leader is to define the task you want to complete. Start by linking the task with your company’s purpose. It is important to show people how the work they are being asked to do connects with the company's overall goals. This can help the employees to understand why the work you are asking them to do is important.

After making this connection, outline your expectations around the task. Communicate your desired end state. Clearly define what success will look like and when you expect the employee or team to deliver against that expectation.

Provide an opportunity for your employees to ask clarifying questions about the desired end state and the path from where they are today to where you want them to go. The time you spend upfront aligning on goals and the employees' path to achieve goals will reduce the number of questions you receive later in the process.

Provide parameters

Next, work with your employees to define the parameters for completing the task. You want to be clear in defining milestones, budgets, available resources, and any other constraints that would influence employees' actions.

You reduce uncertainty by aligning with employees upfront on what is permitted and what is not. The more clarity employees have on your expectations, the easier it will be for them to comply. You should document goals and parameters and verify that your employees understand their roles and responsibilities. This will prevent later questions about roles, responsibilities, expectations, and parameters.

Sometimes, employees understand what is expected but do not comply. When this happens, your focus should be on understanding what is getting in the way of the employee's success. Identifying competing priorities, skill gaps, mental blocks, and other obstacles will help you work with the employee to find solutions that support them in meeting expectations.

Monitor results

The final step in the delegation process is defining how and when you will touch base with your employees regarding progress. By defining and communicating milestones, you and your employees understand where projects should be at specific time periods.

This can reduce stress and drive accountability because employees know what to accomplish and when. If an employee is off track at the time of check-ins, you can provide course correcting advice to get them back on track.

If they have a problem they can not solve independently, you can conduct a root-cause analysis and help them identify solutions. Root-cause analysis may help you identify whether additional time, money, skills, people, or resources are needed to accomplish the given goal.

Summary

Time is your scarcest resource, and you can never get it back again once it is gone. As a leader, you must value your time and ensure that you allocate it in ways that benefit your organization most. The more time you spend doing things that only you can do and that are your strengths, the more of a positive impact you can make on your organization.

As the top person in your organization, you see things that no one else sees and can do things that no one else can do. You provide the most value when you can think strategically, selectively dig into details when needed, and coach, train, and develop your team to build their competencies.

Organizations are stronger when they leverage their employees' hearts, minds, and bodies. The best way to tap into the endless potential of your employees is to teach, train, and trust them to do the work that you hired them to do. Building a high-functioning team takes time and effort. The investment you make into selecting the right talent, defining the task, setting parameters, and monitoring progress will help you achieve more while feeling less overwhelmed.

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Thank you for reading this blog

Dorian Cunion is an Executive Coach and Business Consultant with Your Path Coaching and Consulting. He is a former retail executive with over 20 years of experience in the retail industry. He is a Co-Active coach who focuses on helping professionals and small business owners overcome insecurities, knowledge gaps, and lack of direction. He does this by assisting clients to tap into their values, recognize their strengths, and develop actionable strategies for growth.

Have you been trying to improve your career or business on your own but are not seeing success as fast as you desire?

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When to Quit Being an Employee and Focus on Your Business.

The American economy is undergoing a metamorphosis. A confluence of various factors is leading workers to explore entrepreneurship. Smallbiztrends.com reports that women-owned businesses have grown at a rate 2.5x faster than the national average, leading to 1.5x more women starting businesses than men.  Many women are shifting to self-employment because they aspire to have better flexibility in their schedules, more compensation for their work, and better alignment with their purpose.

A similar acceleration in launching small businesses is seen among people of color. Many BIPOC individuals are pursuing self-employment to have more control over their careers, greater advancement opportunities, and more earning potential. Over the last decade, there has been a 35% increase in minority-owned businesses, which might be causing you to ask yourself, “Should I leave my full-time job and go all in on my business idea?”  

The pandemic created a momentous shift in the relationship between employees and employers. 

The COVID-19 pandemic fundamentally altered the economic landscape, prompting employees to reevaluate the meaning of work-life balance and redefine career aspirations.

• CNBC reported that employees emboldened by a tight labor market in 2022, launched the “Great Resignation,” in which about 50 million people quit their jobs in pursuit of greater flexibility and more competitive pay.

• Forbes reports that many employees who decided not to leave work began “Quiet Quitting,” where they decreased their effort to the minimum required to maintain employment.

• The Economist reports that companies have reversed remote and hybrid work policies to reduce turnover, improve worker productivity, gain more control over how and when employees work.

• Under pressure to cut costs, Business Insider reports a 31% increase in job cuts among middle managers in 2023. Many of these cuts resulted from productivity improvements generated by the growth of AI and organization design flattening promoted by companies like McKinsey.

The convergence of all these changes has nurtured a class of workers who are experienced, disenchanted with their current working conditions, hungry for autonomy, and willing to venture into self-employment. Many are launching side businesses with the hopes that those businesses will eventually give them the wealth and freedom necessary to step away from their government or corporate jobs and be their own boss.  

Making money beyond the traditional 9 to 5.

Over the last five years, there has been significant growth in three types of entrepreneurial ventures.

• Rise of the Gig Economy: CNN reports that over 1 Million Americans are working in the “gig economy.” This includes freelance workers with companies like Uber, Lyft, Doordash, Upwork, and Instacart. These opportunities provide workers with great flexibility, autonomy, and the ability to generate additional income.

• Service-based Job: Forbes reports that professional and business services are two of the fastest-growing industries in America. As more companies look to outsource marketing, recruiting, employee development, and consulting, middle managers have more opportunities to leave W2 employee roles and establish 1099 and small business relationships with corporations, government entities, and non-profit organizations.

• Growth in Property Rentals: After a sluggish 2023, the National Association of Realtors predicts a rise in short-term rentals. Companies like Airbnb and VRBO make it easier for homeowners to rent out their homes, providing property owners additional income.

Recent shifts in the economy and business ecosystem have provided mid-level professionals with specialized skills, wealth, a home, or a vehicle the opportunity to generate income for themselves outside of the traditional 9-5. We are seeing the emergence of portfolio careers where workers have more than one stream of income, which, over time, allows them to make career decisions based more on personal fulfillment than financial survival.  

Taking the Leap: Planning for Success

Leaving the security of a salaried position demands a well-defined plan. The cornerstone of this plan should be a budget that outlines how much money you need to make to cover your personal expenses. In addition, you need to define the amount of money you need to invest to meet your business goals. The U.S. Chamber of Commerce cites inflation, lack of access to credit, rising interest rates, employee hiring and retention, and supply chain disruptions as the most significant challenges small business owners face today. These challenges should be accounted for in your budgeting and planning process.

Most small businesses fail because they do not have the capital or people resources needed to bring their company value proposition to life. A detailed business plan, with clarity on the key partners, activities, resources, customer segments, channels, and relationships, will help you clarify what is needed to thrive. The 10% of new companies that last more than ten years do so because they clarify

1. Who they are?

2. What they do best?

3. Secure the talent and resources needed to establish a sustainable business model.

Prelaunch Check List:

There are 7 actions you should take before quitting your current job and pursuing your business full-time.

1. Leverage Company Training Programs: Participate in company-sponsored training programs to cultivate skills that contribute to your professional development.

2. Access Free Resources: Organizations like SCORE, SBDC, and many local economic development centers offer training, workshops, and mentorship that can help you develop plans and acquire the knowledge you need to launch and scale your business successfully.

3. Develop a Business Canvas: This is a one-page business plan to guide your strategy.

4. Personal Budget: Define how much money you need personally, assuming your business generates no income for the first six months of operations.

5. Business Forecast: Create an 18-month financial forecast, including projected revenue and expenses. Include a best-case and worst-case scenario.

6. Develop a Contingency Plan: Prepare for unforeseen circumstances by outlining what you will do if the worst-case scenario occurs—for example, securing a loan, borrowing from family or friends, or taking on part-time freelance work.

7. Build Your Support System: Develop a network of advisors, mentors, and peers who can provide guidance, support, and motivation throughout your entrepreneurial journey.
   

The Entrepreneur's Journey: Rewards and Challenges

Entrepreneurship is not for the faint of heart. Many people start on the entrepreneurial journey only to later decide that they prefer being employees. If you try entrepreneurialism and it does not work out, you can always re-enter the labor market. Every new experience is an opportunity for growth, self-discovery, and self-mastery. The best way to determine if you are ready to leave your current job and go all in on your own business is to do the prep work listed above. It will help you look at things from a big-picture perspective and consider the essential factors for success.

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As an executive coach and small business consultant, I guide small business owners and business professionals in achieving their professional and business goals.

Whether you want to start, transform, or improve your business or career, I can help you magnify your strengths, minimize weaknesses, identify threats, and take advantage of opportunities.

Let's talk about your goals.

Have Feedback  Send me a note at

Email: dcunion@yourpathexecutivesolutions.com