Strategic Planning – A guide for Leaders
Transcript of Strategic Planning – A guide for Leaders
Principles and practices that prepare you for success
2021
Strategic Planning –A guide for Leaders¡R
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When you think about strategy, what feelings
come to mind? If dread, fear, or apathy come
up, you are not alone.
It doesn’t have to be this way.
Introduction
An exhausting and sometimes painful process
Making little, if any, measurable difference
The same thing year-after-year (even when they have had
outside help)
Many of our clients describe their past strategy experiences as:
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This guide takes you through a set of principles
and practices designed to help leaders and their
organizations create strategies that move them toward
the future they want to see.
Fathom’s approach to strategy is designed to create
conditions where your entire organization experiences:
Renewed enthusiasm for, and a clearer path to, your
organization’s ideal future
A re-energized culture and more powerful relationships among
your team, your partners, and your clients
Sustained, unified action that reliably produces meaningful
outcomes
In the following chapters we will cover:
1 Preparing yourself Creating the right frame of mind
2 Preparing your team Nurturing a healthy team dynamic
3 Strategy vs Planning What is the difference and why it matters
4 Four principles for successful strategy Creating conditions that produce results
5 A fundamental framework for strategy Moving beyond past-based design
6 Keeping your strategy alive How to give your hard work a fighting chance
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Want to learn more about strategic planning from the creators of this guide?
Join Fathom on Tuesday, April 20th, 2021 for a free, interactive session on
strategic planning, hosted live on Zoom!
TO RSVP FOR THE UPCOMING SESSION ON 4/20/21 FROM 11A-12P EST.CLICK HERE
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Preparing yourselfCreating the right frame of mind
CHAPTER 1
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At Fathom, strategy is about imagining and creating a more
meaningful future for your organization and generating
more value for the world you serve. It’s about creating
conditions where potential, already present in your organization,
is harnessed to build a future of thriving relationships and
breakthrough business performance.
Every leader knows that strategy—positioning their company to win in the future—
is essential, but many avoid it because it pushes them to operate in an arena where they
don’t, and can’t, know the answers. However, being comfortable not knowing is right
where you need to be if you want to lead a strategy process that creates the conditions
for your organization to thrive. Use the following exercises to prepare yourself for the
conversations that will yield the future you want to see.
CHAPTER 1
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Reflect on what drives you
Where does your energy come from?
Get clear about your personal goals, values, and commitments. Find a way to explore
and articulate them, maybe with the help of a coach or mentor, and look at how they
compliment the purpose, values, and goals of your organization. Take the time to put your
discoveries into a form you can share with your team. The deeper you can dig into the
relationship between your guiding principles and those of your organization the clearer
you can be with your team about what you see and the origins of your passion.
What do you need from your team?
Leadership is an art form, and everyone’s expression of it is unique. While it might take
years for you to identify your style, you can begin by explaining to your team the path
you are on and communicating what you need from them in order to be successful.
For example, if you tend to want to control every situation, explain to your team what you
need in order to trust them and give them autonomy.
At the same time, ask your team members what they need from you and what they
need from each other. The key is to be open, honest, and completely transparent.
This is the only way you and your team will be able to give each other the kind of support
needed to get through the hard work ahead.
CHAPTER 1
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Record and communicate agreements
When it comes to making strategy, organizations can be rife with battle scars,
like Initiatives launched with great fanfare and anticipation that quietly fade away after
a few weeks or months. Or, the sudden termination of an active strategic focus without
explanation. There will always be a reason that seems valid at the time, but the result—
frustration, disillusionment, skepticism—will mean the next time around, rallying your
team will be that much more difficult. Often, the solution is just a matter of giving your
agreements presence.
Hold each other accountable
Represent, in some permanent form, what you and your team have decided is essential
to the future of the business. When you capture expectations and commitments in a way
that can be shared and regularly referenced, they are harder to forget, disregard,
or make believe never existed. Maybe you have agreed to a weekly progress report,
or there is an understanding of how individual decisions will be made? Once you record it,
it is no longer debatable, and you and your team can hold each other to account.
CHAPTER 1
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Maintain your mindsetTrying to learn a new skill often involves remembering a set of actions and then attempting
to do them in the right order or at the same time to achieve your goal. Adjust your grip,
hold the clubface flat, head down, swing through...you get the idea. Leading an
organization with the right balance of presence and absence is no different. It is a dance
learned over time, and even the most experienced executives discover new ways of being.
Below are a set of reminders that will help you be who you need to be to ensure your
strategy has the best chance of success.
Create space for leadership
You don’t have the answers and you don’t need
to have them. Have a sense of where you want
to go but let the team figure out how to get
there. Lead by letting others lead.
Listen with an open mind
The best work—and the most significant
outcomes—come from a place of understanding
and non-judgment. Forget what you think
you know about each other and listen with
an open mind.
Honor what’s so
Don’t get bogged down in the past.
Acknowledge the current situation and move on.
Everything that has happened up until this point
has contributed to getting you where you are
today—in the enviable position of being able
to design what comes next for your organization.
Be comfortable being uncomfortable
Vulnerability is a powerful tool. Be honest
and transparent, and others will follow.
CHAPTER 1
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Preparing your teamNurturing a healthy team dynamic
CHAPTER 2
Make sure your strategy team is set up to succeed right from
the start. This will allow for better long-term outcomes, illustrate
your commitment to the strategy, and ensure a more coherent
team over the course of the strategic effort. Sustaining a high-
performance team requires you to make intentional choices, be
open to feedback, and be aware of changes.
Here are some questions to consider as you design your team and take on your
initial team-building.
CHAPTER 2
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Which voices are needed?When you build your team, consider which perspectives will be vital to include if the effort
is to have the best chance of success. Probably, members of your senior leadership
team. However, are there others who will improve the outcome based on their tenure
and extensive tribal knowledge, their affinity for facts and details, or their willingness
to challenge assumptions? Who, if not included, could undermine the effort?
Who, if involved, would significantly enhance employee engagement? The point
is to intentionally diversify the voices in the room to prevent homogeneous thought
from torpedoing your efforts.
Where will the time come from?There will have to be trade-offs. There is only so much time to go around, and any new
effort will have to draw from somewhere. Have an honest dialogue with your team about
time and energy and establish an agreement around how this new initiative fits into the
hierarchy of other accountabilities. If you think it’s needed, re-prioritize with your team
so everyone can acknowledge the changes and no one is caught off guard.
Any scars to share?Negative past experiences often create a “proceed with caution” attitude, or worse,
an assumption that things will never change. Meet with each member of your team
one-on-one and share what you have experienced that could compromise the initiative
and find out what stands in their way. Then come together as a group, put all of those
things on the table (stripped of specifics that would implicate individuals) and have
an open and objective conversation about how best to move forward in a way
that builds on, but doesn’t ignore, what’s happened before.
CHAPTER 2
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Which behaviors are our alliesor our enemies?Organizations, like people, have behaviors that can work for and against their
effectiveness. It could be first-rate meeting etiquette where everyone is on time and gets
out early with clear next steps. Or, it could be an inherent distrust of new processes that
come from the outside. What behaviors characterize your organization? Good or bad, get
them out in the open, then identify the ones you want to leverage and those you need
to develop or eliminate. As you proceed through the strategy process, use this list to
establish expectations, determine priorities, and anticipate obstacles.
What is your warning signal?When you get to the part of your journey when the going is tough, and the outcome less
than clear, this is when you are most vulnerable to failure. Pay careful attention to focus
and energy. At an early stage, identify a signal that any member can use to bring the
group together if there are warning signs of waning enthusiasm or other threats
to the strategy process. The agreement is that this signal guarantees attention by the
entire team. This is the time to examine what has changed or is being neglected
or forgotten, and to determine how to re-focus and re-energize.
CHAPTER 2
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Strategy vs. PlanningWhat is the difference and why it matters
CHAPTER 3
Before we go any further, let’s take care of a big issue: the
tendency of leaders and their management teams to mix strategy
and planning—two distinct disciplines—into one activity.
By conflating the two, they mistakenly hamstring the design freedom that is necessary for
strategy thinking with the constraints of planning such as cost, resources, and capabilities.
The problem is evident when you compare some of the distinguishing characteristics.
CHAPTER 3
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Divorcing the disciplinesLooking closely at the above list, and it’s easy to understand why this blending occurs:
self-preservation. After all, who wouldn’t feel more comfortable and sure of themselves
in planning’s realm of perfectible facts and figures vs. strategy’s sphere of imperfect
intuition and risky bets. As Roger Martin states in his excellent Harvard Business Review
article, The Big Lie of Strategic Planning, “All executives know that strategy is important.
But almost all also find it scary, because it forces them to confront a future they can only
guess at. Worse, actually choosing a strategy entails making decisions that explicitly cut
off possibilities and options.”
In reaction, they will gravitate toward the comfort of using familiar tools and talking about
things they know—building detailed plans, elaborate models, large PowerPoint decks,
and spreadsheets. As Martin continues, “This is a truly terrible way to make strategy. It
may be an excellent way to cope with fear of the unknown, but fear and discomfort are
an essential part of strategy making. In fact, if you are entirely comfortable with your
strategy, there’s a strong chance it isn’t very good.”
CHAPTER 3
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How to stay out of the comfort zone
Simultaneously establish separate planning and strategy initiatives,
each with its team, process, timetables, and objectives.
This clear physical separation will help begin the process of mentally separating
the two activities and also acknowledging that each requires a distinct, yet equally
important, set of skills. Knowing there is a team prepared to plan for execution
will allow your strategy team to concentrate on its mandate and to remain courageous
when the conversations get difficult.
Be clear with your team about the conceptual differences between
strategy and planning.
If you need, use the chart above for clarification. Then give your team an opportunity
to further clarify the distinction by going through the process of creating its own
Strategy vs. Planning chart. The result can be used throughout the strategy process
as a reference point if anyone feels like the team is getting off track and pulled
into planning territory.
CHAPTER 3
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Describe, in the simplest possible terms, the work the strategy
team is undertaking.
To prevent misunderstandings and wasted time, begin your strategy process by clearly
defining what you are setting out to do.
We suggest something like:
We are creating a statement that will establish where we will play
(who our customers are) and how we will win (our value proposition)
to create lasting value.
There are a number of foundational ideas that can and should support this statement,
like purpose, values, and brand promise, but the simplicity gives the work focus
and makes it feel manageable. It also distinguishes it from planning by making clear
that it is not about execution. And, finally, when it comes time to reveal your organization’s
new strategy to your entire staff, a simple statement is easier to understand
and rally behind.
CHAPTER 3
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Four principles for successful strategyCreating conditions that produce results
CHAPTER 4
67% of strategic initiatives fail in execution. That disheartening
statistic, from a 2016 survey, is an improvement over the 90%
failure rate that the same poll found in 2002.
Still, the idea that 2/3rds of corporate strategic efforts fail is shocking. Just imagine
the time and money wasted. The reasons for the lack of success change over time but
generally include the failure to gain support, hold one another accountable, communicate
consistently, measure effectively, and reward success, among others.
Through our client strategy engagements, we have identified four principles that will help
neutralize these common obstacles—actions that will ensure your strategy lives past the
week it was created. They might seem obvious, but we rarely see them practiced. (Spoiler
alert: they all have to do with people.)
CHAPTER 4
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1) Include everyoneThis takes two forms. First, to establish an objective understanding of the position
your organization holds in its ecosystem, take the temperature of all of the relationships
that matter to your success. Certainly, these include clients, but they also should
consist of employees, industry associations, suppliers, professional partners, and even,
in some cases, competitors. There are a variety of ways to do this, both formal and
informal, from one-on-one interviews and online surveys to focus groups and in-the-
moment conversations. Whatever the method, the intention is to gather honest responses
to questions about their relationships with your organization and their perceptions
of your standing in the marketplace.
Second, when it comes to the strategy itself, invite people from throughout your
organization, especially those whose voices are generally not heard, to participate.
Naturally, this doesn’t mean everyone is involved in every meeting. However, it does
mean they have an opportunity, in some way, to offer their perspective to the discussion
about the future of the organization.
Taking the time to ask for and consider the opinions of everyone in your sphere
of influence improves your likelihood of success because you are starting from a place
of objectivity and ensuring a higher level of staff engagement by giving them
a stake in the results.
CHAPTER 4
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2) Create a shared image of successPeople fight for what they believe in, especially when they feel a sense of ownership.
For strategic initiatives, a leader should help create those conditions for his or her team
by giving them the opportunity to discuss and help establish the picture of success.
Without this collaborative foothold within the organization, strategies are weaker
and less likely to succeed.
Use these questions to get started:
CHAPTER 4
What would need to be true about the organization in three years to call this
initiative successful?
What evidence would we need to see to confirm we are making headway?
What conditions do we need to satisfy through the execution of this initiative?
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3) Identify a reason to carePeople want to know that their hard work and personal contributions make a difference.
You miss an essential opportunity to capture the imagination and ambitions of your team
when there isn’t a compelling answer to the question Why does this strategy matter?.
We call that answer a Strategy Purpose Statement
Phrases like to become the best, to be the biggest, and to be the most sought-after
sound good on the surface, but they are not inspiring at a human level. What rarely gets
discussed, let alone put into language, is why.
Bring your team together and address these questions:
CHAPTER 4
Does, this strategy matter to you?
If so, why? If not, what’s missing that, if included, would make it more relevant?
If successful, what impact do you think it could have beyond the business
outcomes already defined?
What difference could that impact make for you, our company, and our
community?
This exploration will point to big ideas and inspiring ambitions. It may even
cause you to rethink your image of success. Sharing the outcomes with every
member of the organization responsible for executing the strategy can make
all the difference between a team that is ready and willing and one that needs
to be pushed at every step.
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4) Commit to growth and developmentLeaders have been taught to believe they always need to know the answers.
However, when you are moving into the uncharted waters of a new strategy, what to do
can’t be clear and what will happen is impossible to know. You have to evolve the way
you express your leadership and be willing to develop leadership capacity you didn’t
know you needed.
Simultaneously, you need to create space for your team members to explore their
leadership styles and practice their capacity to lead through experience. Of course, if you
want your team to swim in a different ocean, then, as their leader, you need to dive in first.
Leaders who are successful at creating this space:
CHAPTER 4
• Invite their team to contribute, take action, and share their experiences with
new ideas
• Provide their team with the resources (developmental and otherwise) they
need to be successful
• Demonstrate their commitment to the team by living their story
• Own their mistakes and take their leadership development seriously
Want to share with your team?
Download the worksheet
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A fundamental framework for strategyMoving beyond past-based design
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Creating breakthrough strategy for your organization requires
you to change where you are thinking from.
Below are three dimensions to explore when beginning your strategy design. Two
of them, what we imagine is possible and what we believe matters, will move your
organization forward by pushing you beyond past-based strategy design, ensuring
alignment and enthusiasm, and creating inspiring context for the work to come.
CHAPTER 5
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1) Begin with what you know is trueOur default is to make decisions about our organizations based on what we know
to be true. And, why wouldn’t we? We like to be informed about the choices we make.
The more evidence we can gather the more justified we can feel in our actions.
By investing in research, relying on best practices, establishing benchmarks, etc.,
we satisfy our need to insert some sort of truth into what we are about to do.
Defining what you know to be true is vital for establishing a reference point, but taking
action using only this dimension means you are basing your future on past events.
Your strategy will be a reaction to something that has happened before. It may solve for
some anomaly in the performance of the business or prevent something negative from
happening again, but it won’t move you forward in a significant way.
CHAPTER 5
When our decisions about future actions are based only on what we know
to be true, we are limited to activities designed to deal with something that
occurred in the past.
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2) Imagine what is possibleWhen we include what is possible in strategy, we can design actions that both resolve
things that happened in the past and cultivate conditions that will lead to the future we
want. With both what is true and what is possible in hand, our actions can be informed
by what we know and shaped by what we want to see in the future.
To maintain attention on what you see is possible takes time and determination.
A vision is fragile—the minute you lose focus, it will collapse. This is why stepping
away from your office to think about your future, no matter how infrequent, is one
of the most valuable ways to spend your time.
CHAPTER 5
If we include a picture or an agreement that dramatizes the future we want,
we can create conditions that truly move us forward.
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3) Uncover what you believe matters mostIf we are going to ask anyone, including ourselves, to commit time and energy
to keep a vision for the future alive, there needs to be a compelling reason to do so.
Without it, initial excitement will fade, and day-to-day demands will take priority.
Ask yourselves: Why should anyone care about this future we have imagined?
What will keep everyone engaged at the level that is needed to execute this large-scale
change initiative? What matters so much to this company that we won’t let ourselves
fail? (Hint: It isn’t more revenue.)
With this third dimension, you can now have more choice in the design of your strategy.
You can 1) design actions that are in service to dealing with past issues, 2) create
conditions that move you toward a future you would like to see for your business,
and 3) offer something of gravity that will attract and hold attention to these efforts.
CHAPTER 5
If we include an understanding of what matters most to us in our work,
then the effort to realize a new future will be clearly worth making.
Want to share with your team?
Download the worksheet
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Keeping your strategy aliveHow to give your hard work a fighting chance
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Strategic plans often fail when daily realities replace the
launch excitement and novelty of new work. That’s when focus
is lost, doubts creep in, and energy wanes to the point where
efforts stall.
Establishing sustained attention for strategic efforts is just like creating a new habit,
which, according to James Clear’s noted book on forming new habits, takes 66 days.
During this vulnerable time put careful and intentional effort toward both fanning the
fire and gathering the fuel to keep it burning.
CHAPTER 6
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CHAPTER 6
If it isn’t present, it doesn’t existYour strategic plan is new. And, like learning a new language, you need to use it regularly
until you are thinking with it naturally rather than having to translate as you go.
Make it part of things you already doThe intention here is to demonstrate that thinking about your strategy should not be
an every-once-in-a-while event. Instead, the ideas in it should immediately become a part
of every day. It’s best if you make your strategic plan the headline, and relate what you
are discussing to it.
• Put your key strategic ideas at the front of your favorite notebook so you see
them every time you open it
• Write them on post-it-notes and put them where you will see them everyday,
like your dashboard or mirror
• Create reminder cards for everyone’s work area
Reference the strategic plan during regularly occurring business meetings, no
matter how small
During business development meetings, especially go/no-go meetings, use your
strategy as a filter for which projects to pursue
If your strategic plan includes elements like vision, values, and purpose, use them
as part of how you hire, review, and develop your team
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CHAPTER 6
Set yourself up for some easy winsMany strategic plans can be overwhelming when looked at in their entirety. However, if
you break them down, you will find small actions you can take that will return significant
results. A good place to start is with business activities that relate to the way others
experience your organization. Try adjusting something simple that reflects your strategy,
measure the results, and celebrate wins, no matter how small. Early on, these small
examples of success matter a great deal to the team.
Make celebrating a habitWhy is it so difficult to celebrate progress when every leader knows that it’s essential to
keeping their teams energized and engaged? Because it isn’t treated as a priority. If your
strategic plan is vital to the future of your organization, then you must make celebrating
progress non-negotiable. Whether it’s launching your new brand or changing the way
you answer the phone, an employee personifying your values or business that came as
a result of your new strategy, every win is worth recognizing and lifting up as progress
toward your future.
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Authors
Bruce KaecheleABOUT BRUCE
David LoudenPartner, Fathom
ABOUT DAVE
Matt ReinigerABOUT MATT
Brent RobertsonPartner, Fathom
ABOUT BRENT
Ben CallaghanABOUT BEN
We are unwavering advocates for your organization’s future
Our clients don’t let anything stand in the way of spending time on their futures. And they
don’t rely on legacy thinking and tools to navigate the uncharted waters ahead. Instead,
they proactively create conditions that invite their full potential. Not as a periodic, special
event, but as an ongoing effort to shape the future they want to see.
To learn more about the Fathom Team go to fathom.net/team
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Fathom is a strategy and creative consultancy working with
business leaders to create experiences and build relationships
that ensure success.
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