Strategic Planning: What Is the Shelf Life of a New Strategic Plan?

Interestingly, I get this question a lot and it’s usually under the context of whether it’s better to develop a three-year or five-year strategic plan. To me, it doesn’t matter what time horizon a company chooses as it relates to the shelf life of a strategic plan because the answer is the same: zero - it has no shelf life!

Strategic plans need to be living, breathing documents to be effective and should never be literally or proverbially placed on a shelf. To help ‘make it real,’ there are three areas of focus that help ensure actionable strategic plans: strategic and operational planning alignment, transparent accountability, and rigorous execution.

Alignment Of Strategic & Operational Planning

The overall planning cycle includes strategic and operational planning that should be aligned to increase efficiency and improve results. For organizations on a calendar year-end, I like to kick off the Strategic Plan update in April, after Q1 results are finalized, and complete the strategy in the July timeframe. Notice I used the term ‘update’ versus ‘create.’ Unless the company is new or recently merged, once the plan is created, an annual update that extends out one year should suffice instead of creating a new Plan from scratch. For example, in 2024, a three-year strategic plan from 2023 to 2025 should be updated to cover 2024-2026. A review of mission, vision and core values should still be performed with a SWOT Analysis (strengths, weaknesses, opportunities, threats) but in an abbreviated manner, versus the extended workshops necessary when developing a new plan.

"A strong enterprise project management office (epmo) helps to ensure strategic initiatives have realistic deadlines due to resource capacity, resolve potential conflicts between competing projects, and proactively raise issues for timely resolution"

After the strategic plan update is completed in the Summer, it can be leveraged for budget development in the Fall for the subsequent year. In the example above, the 2023-2025 strategic plan updated in the Summer of 2023 should be the framework for the 2024 budget developed starting in the Fall. In this way, strategic planning is aligned with operational planning, so the work included in the strategic sessions flows nicely into the efforts to produce the budget commitments for the subsequent year. A few words of caution here though: don’t let the strategic plan development become a forecasting exercise—it’s a slippery slope that defeats the purpose. Be sure that the focus is on strategy development and let that drive the results, not vice versa.

Transparent Accountability

I’ve seen many companies with aspirational plans supported by lengthy strategic documents and slides that are very impressive on the surface, but ultimately fail to produce the desired results. In strategic plans that I inherited, the average percentage of accomplished initiatives at the end of the planning period was just over 50 percent - a failing grade! It’s great to be aspirational, but the strategic objectives need to also be achievable. Transparent accountability is the key to ensuring that the plans are not just PowerPoint fantasy sitting in a binder to death on the shelf.

Strategic objectives should be supported by goals and specific strategic initiatives that align with the Vision of the organization and define ownership at the most granular level possible. I like to utilize a RACI framework where responsibility and accountability are assigned for all aspects of an initiative, along with the determination of which parties need to be consulted and informed. This helps to ensure that accountability is clearly defined and provides transparency around the time and efforts needed by teammates to make the accomplishment of each strategic initiative a reality. Once the RACI is defined for all strategic initiatives, make sure their achievement is incorporated into each employee’s performance objectives for the year.

Upon completion of the strategic plan, it’s important to roll it out across the entire organization. Every employee should know how what they do daily aligns with the strategic objectives of the company. If you build the strategy with input from a diverse set of employees throughout the company and communicate it back effectively, the benefits from joint ownership and transparent accountability greatly influence your ability to achieve the desired results. Strategy updates then become part of the company’s DNA in embracing and adapting to changes collaboratively.

Rigorous Execution–Make It Real!

Once the strategic plan is aligned, documented, and communicated with transparent accountability, it’s all about execution. In this case, two out of three is bad as many wellintentioned, documented plans fail because of excuses and rationalizations around execution. To avoid this, I have always relied on the saying ‘what gets measured, gets done.’

Strategic initiative scorecards are a great tool for reporting progress on each initiative. Don’t try to boil the ocean; just focus on the key ‘metrics that matter’ related to the success of each strategic initiative. I recommend monthly, more granular scorecards in business review meetings with senior management and executive summary-level quarterly progress reports to the board of directors.

Project management also plays a critical role in making it real and ensuring execution with excellence. A strong enterprise project management office (EPMO) helps to ensure strategic initiatives have realistic deadlines due to resource capacity, resolve potential conflicts between competing projects, and proactively raise issues for timely resolution. Be careful not to have employees who work in the business line also manage the strategic initiatives. Many strategic projects fail because the line personnel are too busy to do both or not qualified to professionally manage multiple stakeholders across the organization. A separate, small EPMO team comprised of certified project management professionals (PMP) will help ensure the success of your plan.

So, let’s keep those strategies off the shelf and make them real, because as we know all too well - hope is not a strategy!