This is part 2 of my 3-part series on Annual Planning as we look ahead to a brand new year.
Part 1 focused on 5 Ways To Build Trust, especially in this current environment of economic uncertainty and on-going change. Fostering trust is not a singular action or something that you just look at during strategic planning times, but it is important for us as leaders to pause and reflect on prioritizing your people, and what that means as you set goals and look ahead to the next year. Your team is your most critical asset, they are what enables your vision for 2023 and beyond to become real.
Today focuses on creating your best strategic annual plan in this current atmosphere (and Part 3 is on implementation and carrying your plan out, even when things go awry - which they will!).
First, let me say, don’t skip your annual planning! I know, I know - planning. It may be hard to get excited about planning. But trust me, if you’re more of a go with the flow kind of person and the word ‘planning’ makes your eyes roll, this is important stuff. Even if it feels like a year where you are going to “rinse and repeat” last year or you feel like you have it all “in your head,” there is value in looking at things newly, having discussions, and writing it all down.
In our business, we always plan dedicated time away from our regular day-to-day. As a small business, if possible we go somewhere to inspire and help us to think big. Regardless of the setting (at home, at your company or on “retreat” somewhere special) annual planning is a critical activity to propel your business forward and to help empower your team. With the ‘triple pandemic’ and looming talks of a recession impacting businesses around the world, this is not the year to wing it!
Your 2023 Business Planning
Let’s start with steps 1 and 2. (Part 3 will focus on implementation and making it all happen in steps 3-5).
The best plans start with long-term thinking and vision. Get grounded and make sure your current thinking is consistent with your vision, mission and the values for your company.
Reflect on how you lived up to your mission, vision and values in 2022. What are you celebrating? What could you do better? What needs more attention? Remember, we are human! Not every year is a banner year and even banner years come with a list of things that could have gone better. Actually, it’s the biggest stand out years, that often come with the longest list of a-ha’s and “do differently’s.”
Next, have brutally honest and transparent dialogue on what is new, what has changed, what remains the same for your business in 2023 – both internally inside your company and externally in your specific market and in the business environment in general. Don’t gloss over challenges and/or changes.
Assess your:
Current business landscape
Target market
Relevant internal and external business constraints
Available resources (technology, people and money, etc.)
Your planning will be stronger if you have a clear picture of the landscape you are operating in.
Now you are ready for your 2023 Plan. It starts with clear, concise goals. The key to good goals is to make them specific, clear and measurable. You’ve heard it before “specific and measurable” because it’s true - there should not be any confusion for your team around what a goal is, the plan to achieve it, and who the project leader/owner is. I recommend categorizing goals:
Revenue goals (know the bottom line)
New goals (the first time comes with more effort, risk and unknowns)
Internal facing goals (so it doesn’t get lost and impact is understood)
External facing goals (always keep customer in mind!)
Lastly, I’ll add to watch out for how many goals you set. General wisdom is to not exceed 3 goals at a time. As Jim Collins, author of Good to Great says, “If you have more than three priorities, you don't have any.” For sure, when it comes to priorities, less is more. Everything can’t be a priority at the same time. It literally doesn’t work.
“The real path to greatness, it turns out, requires simplicity and diligence. It requires clarity, not instant illumination. It demands each of us to focus on what is vital—and to eliminate all of the extraneous distractions.”
Goal setting, strong planning and the discussions that come with it, sets you and your team up to create results, make strong and quicker decisions (especially when things change), and fosters resiliency to meet any challenge or new opportunity that comes up during the year.
Wishing you much happiness, prosperity and continued success in 2023!
