Leadership and Planning

In the early months of a new year, new resolutions, intentions and plans are initiated. For many individuals and organizations a new year represents a time of renewed hope. As I think about organizations this time of year, I wonder how many well prepared plans are implemented? Or, how many plans sit on the shelf until the next planning process?

During a recent conversation with a CEO, he told me that as long as the vision and mission are clearly articulated and everyone is on board, he has no real need for a formal strategic planning process. There are pros and cons to both sides of the planning debate.

There are however, visionary companies that have habits or practices that prosper them over long periods of time even with the many changes in their business life cycle. Companies such as 3M, American Express, General Electric and others create a core ideology while balancing that with an envisioned future. According to the research done by James C. Collins and Jerry I. Porras in Built to Last, the following process leads to long term success:

• Have a clearly defined set of core values. Core values are the organizations's essential and enduring tenets (Collins and Porras, 73) They suggest only three to five values.
• Have a clearly articulated purpose. This is the fundamental reason for a company's existence beyond just making money (76).
• Create BHAGs (big hairy audacious goals) as a way to stimulate progress. As Collins and Porras point out, a BHAG engages people. It reaches out and grabs them in the gut. It is tangible, energizing and highly focused. People "get it" right away and it takes little or no explanation (94). It is a clear and compelling goal that is understood by those internal to the organization.
• Create vivid descriptions of the BHAGs. This will allow the individuals within the organization to clearly visualize the end result.

Both authors emphasize the importance of maintaing the core ideology while striving for progress. Although there are many ways to maintain and sustain long term success, as a leader you must decide what is best for your organization.