Capturing growth opportunities requires alignment on targets, timelines, and, most of all, accountability.
You probably hear (or tell) this story as often as we do: “Our business went through a major strategic planning session last year. So far, it’s created a big stack of paper and a pile of dust.”
A company that invests so much time and effort into strategic planning should be set for double-digit growth for years to come. But in many cases, the growth doesn’t materialize.
When that happens, the management team tends to start pointing fingers at each other. That’s too bad, because in most cases the entire management team shares the blame for not aligning on the specific factors necessary to create growth.
1. Targets Each investment opportunity should have a set of targets, as well as intervening milestones, that the management team agrees are necessary to achieve to be successful. For example, an opportunity such as achieving sales of $50 million in Wal-Mart by 2015 probably involves a set of incremental targets: $5 million in 2012, $15 million in 2013, and $30 million in 2014. It probably also involves some key milestones, such as securing a meeting in Bentonville or obtaining product approval from Wal-Mart. The most powerful aspect of these types of targets and milestones is that the management team agrees that if the targets are met, the opportunity will likely be achieved; if not, the opportunity will likely be delayed or lost.
2.Timelines Agreeing on a specific timetable for each growth opportunity is critical to setting appropriate expectations and measuring progress. Additionally, many of the investments or opportunities may be interdependent–that is, two investments may be necessary to achieve the opportunity. If one investment falls behind schedule, it’s logical that subsequent targets will not be achieved.
3.Accountabilities Arguably the most critical part of a strategic execution plan is having a clear view of who’s responsible for what. One member of the senior management team should be given ownership of each high-value growth opportunity. In addition, accountability should be assigned for each investment, milestone, target, and action required. Agreeing “who has the ball” is often the most important driver of success. When someone’s job or bonus is on the line, you’re more likely to see positive results.
Do you have examples of effective or ineffective execution plans? Share your comments below, or write us at firstname.lastname@example.org.
KARL STARK AND BILL STEWART are managing directors and co-founders of Avondale, a strategic advisory firm focused on growing companies. Avondale, based in Chicago, is a high-growth company itself and is a two-time Inc. 500 honoree. @karlstark