A common misunderstanding we encounter when working with organizations is the difference between strategic planning and operational planning. While the two are closely connected, it’s important to understand how they are different and how your organization can use both types of plans to move the needle forward on your goals.
Are you leading an organization or a business? Whether you are leading a big or small organization, or a non-profit or for-profit business, you need to have a strategic plan. Here are three reasons why:
The never ending story of Brexit, American protectionism, and the Yellow Vest movement in France represent rising political risks, impacting organizations around the world. As a consequence, business leaders have to deal with challenging social-political situations and rising political uncertainty in their home markets on top of changing economic conditions regarding employment, finance, growth, and trade. Investment and growth plans have to be continually updated, and recruiting staff can become more difficult, while the cost of inputs like workforce and resources rise. Foreign political developments have the potential to devastate GDP, supply chains, export rate, wages, and more. As an example, the US trade war with China has had a severe effect on business in several countries.
In this episode of our Strategy & Leadership Podcast, we were joined by Jacob Baadsgaard Founder & CEO of Disruptive Advertising. Jacob began his career in the web analytics industry, eventually moving into marketing after working with various enterprise and Fortune 100 organizations to track their marketing efforts and data insights. Jacob founded Disruptive Advertising as an entrepreneur, and the organization now has over 150 employees.
Once you’ve created a strategic plan for your business, the next step is to roll out that plan throughout your organization. One of the most important aspects of executing your strategic plan successfully is getting buy-in from your team.
An immigrant from South Africa, Elon Musk is an inventor, entrepreneur, investor and multi-billionaire. After dropping out of a Stanford PhD program, Musk went on to create and sell his first technology company to Compaq Computer Co. for over $300 million (USD). After that, he and his brother created what we know today as PayPal, before selling to eBay for $1.5 billion in stock. Finally, he had the funds to start a private space exploration company called SpaceX, as well as an electric vehicle company called Tesla shortly after. Along with having an involvement in other companies such as Solar City, Neuralink, and the Boring Company, Musk’s success has amassed him a net worth or over $19 billion.
Goals, Objectives, Measures Targets, Pillars, Strategic priorities: These things all mean different things to different people. While there is no one right way to interpret each term, you do need to agree on which ones you and your team will use when developing your strategy.