Note: This is an excerpt from my latest book, Drive One Direction: How to Unleash the Accelerating Power of Alignment. In the One Plan chapter, we highlight companies who unleashed the accelerating power of alignment with an intense focus on their corporate plan.
Every company makes plans.
For some, their long-range strategic plan outlines what they are going to do after lunch.
Fast-lane companies use both the planning process and the codified plan to accelerate alignment.
Unfortunately, according to Bain and Company, only 60 percent of executives think that their company’s planning process is effective.
Ideally, the output of an effective planning process is One clearly codified Plan. Most corporate plans contain the following elements:
- A strategic plan
- An annual operating plan
- A financial forecast and associated departmental budgets
- A headcount plan
- Strategic initiatives (the critical few) that are essential to accomplishing the plan
Ideally, your company will have just One Plan.
To document the plan, some companies create a deck of slides, some create a narrative, some create infographics, and others use cloud-based software.
Our preference is to summarize it on One Page.
Regardless of how you document it, it is imperative that you effectively communicate it.
Obviously, people cannot execute a plan they don’t understand.