Simplicity in Strategic Planning Stretches Dollars, Creates Sustainability and Improves Execution

Jay Galbriath over 3 decades ago created a simple business model for organizational performance improvement. This amazingly comprehensive yet relatively uncomplicated model helped to explain why there are performance gaps. Additionally through the utilization of a star graphic, he was able to establish a schematic flow process. Bottom line what this approach yielded was improved execution, increased sustainability and stretched dollars as well as other limited resources of time, energy and emotions.

Take a moment to draw a 5 point star. From the top point and moving clockwise, label each point as follows:

* Strategy
* Structure
* Processes/systems
* Rewards
* People

In the center of the star write the word Customers or Results.

All 5 areas are linked to each other and both circle around and connect to the center. When each area is not in alignment, gaps happen between areas and thus reduce the ability to build customers along with revenue.

Strategy is the beginning. A thoughtful pre-determined course of action must be undertaken before any real actions are taken. The earliest origins of this word strategy mean for a general to deceive his enemies. In business today what that means is for you to out think your competitors.

Structure speaks to how the business is organized. This organization is both physical such as in buildings or departments and intangible such as hierarchy of executives. In many cases the intangible structure is far more detrimental than what is tangible. Peter Drucker is quoted as saying "Structure follows strategy." What this means if the structure does not support the structure, then the structure must be changed.

Processes or systems are how the organization does its tasks to produce its products or services. Within the organization, the processes may range from hiring someone, answering the phone, processing orders, manufacturing actual products to follow up specific to customers' requests.

Rewards address compensation or incentives to compensate performance for both internal and external customers. For employees, rewards include salaries, benefits both tangible and intangible as well as promotions. Incentives for customers might be reward programs to donations for customers' events.

People are those responsible for executing the strategy. For many organizations, this means employees. However for other organizations it might be all shareholders or stakeholders.

This performance model by its simplicity helps to quickly identify where the execution gaps exist. As you look to your strategic planning process, including this model will enhance the outcomes of that process. This may help you secure greater consistency as you execute your strategic action plan. Given that execution still is a significant challenge, finding a repetitive solution to that challenge is always far easier than attempting to reinvent the wheel.

Considering engaging in strategic business planning? Get this free strategic plan check list.

Executive and Sales Coach Leanne Hoagland-Smith understands you have limited time, but really want to take your business to that next level. If you are willing to commit to 4 hours, you can create your own business action plan. Remember, indecision is a decision and do you truly want to be in the same place this time next

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