I've often seen managers exclaim "we have a robust 5 year plan" accompanied by an expression of satisfaction on their face...
Often upon seeing these plans, I have an expression of perplexity on mine, wondering to myself: why has this company invested a decent chunk of time + money into something of such little value?
So, why have a Plan?
I can't blame managers who dismiss the creation of 5 year plans as an exercise in futility. 5 year plans are often convoluted, misunderstood and in-effectual (bureaucratic formalities to satisfy someone who probably won't even read them)
However an effective long term plan can be a potent (if not essential) tool for driving sustainable revenue growth.
So what should an effective revenue driving plan actually look like?
First of all, plans need to be succinct, simple, and most importantly achieve buy-in... board members, executives, managers, team members all need to buy into the plan.
To buy-in, they need to be able to relate to it, believe in it, and act upon it.
To get the necessary buy-in required, plans need to combine carefully crafted visions with specific measurable goals, providing both the inspiration and direction toward a desired future.
Crafting Your Vision:
An effective strategic plan should strike a good balance between vision + planning. Vision meaning what is both desired and foreseen for the future. Vision should include:
- A vision statement about where your company wants to be
- A forecast about the future of customers wants/needs
- A goal that states specifically what your company wants to achieve
Determining Your Plan:
Planning should be what naturally follows after crafting your vision. Planning meaning what are the specific goals and actions your company will take to achieve the goals it desires. Plans should include:
- Assignment and allocation of the necessary resources
- Metrics or measurements of progress & success
- An implementation method for keeping your team on track
The Formula for Revenue Growth:
Plans in and of themselves do not drive revenue growth. To achieve revenue growth, you'll need to effectively combine vision, plans & buy-in.
Vision + Plans + Buy-In = Revenue Growth.
- Vision of the future expressed in long, medium & short term goals
- Plans that state the actions & resources required to achieve your goals
- Buy-in from stakeholders & staff within your entire organisation
