🍁 Autumn Swept the Strategy Away 🍂

Next year’s budgets and plans are being drafted at an accelerating pace. Naturally, the plans are aligned with the strategy—or at least they should be, unless the connection between budgeting, operational plans, and strategy remains unclear.

Based on discussions with our clients, there’s often reason to worry about the link between the existing strategy and day-to-day operations. As autumn’s busyness takes over, life becomes reactive—filled with responding to emails, inquiries, calls, and reporting requests.

In the midst of this, the budgeting process and next year’s operational planning can quickly become just another item to check off an already long “to-do” list.

What changes should be made to the process to ensure that a company’s short- and long-term strategic goals become real and actionable, seamlessly translating into operational plans and budgets?

If you recognize this challenge, the following five steps should be tackled as soon as possible:

1️⃣ Review your strategy through a real-world lens. Are your goals achievable in the current market environment?
2️⃣ Does your team know the strategy, and has communication been sufficient and concrete enough?
3️⃣ Does your company have the necessary capability to implement the strategy?
4️⃣ Are the responsibilities for strategic initiatives clear (and do the responsible individuals know they’re accountable)? Do they have the authority to propose adjustments if needed?
5️⃣ Do your leaders have genuine incentives to drive the required changes?

A good strategy is clear, goal-oriented, and well-communicated, with tangible guidelines for daily operations. When this is the case, budgeting and operational planning automatically align with it.

So, do you have a STRATEGY or just a “strategy”?