Strategic Planning Tips

By David Downie, Partner

Late last year, Mark and I invested the time to attend a strategy retreat for 3 days in Merimbula with the help of Trent Taylor from Teach it Forward. Our goal was to take some time away from our usual routines to focus on developing a plan for Allworths for the next 5 years to help our business, team, clients and families.

We thought it might be useful, especially given the time of year, to share an overview of the retreat for those who are in business and considering how to further develop or refine their own strategy.

The object of the retreat was to finish with a one-page strategic plan for the next 5 years, which we would then share with the rest of the team. We certainly achieved this goal, however, we worked from 8am to 10pm each day to get there! This did not leave much time for beer or wine consumption, but we achieved some modest targets here also.

The pre-work

Before the retreat commenced, we were assigned ‘pre-work’ to do over a 4 to 6 week period, with our answers to be submitted at least 2 weeks prior to the retreat. This involved Mark and I separately answering written questions so that Trent could see our individual perspectives. We were also tasked to read the book “What Got You Here Won’t Get You There” by Marshall Goldsmith.

The pre-work for week 1 involved completing our personal clarity plans for 5 years’ time including the number of hours per week and weeks per year we wished to work, our target personal income and expense levels and balance sheet positions. It also involved thinking about how we wanted to be using our time in 5 years including family activities, holidays and goals. We also outlined the structure of our business and performed a SWOT analysis (strengths, weaknesses, opportunities, and threats) and a review of who currently performed each of the business functions for Allworths.

The pre-work for week 2 was to consider the 5 core values that we wanted Allworths to live up to, after reading various articles on the subject. We were also tasked to consider our core business purpose, what business we are in, and to collate 5 years’ of financial information. Lastly, we created a client list with data on income, industry, ages and other variables.

For week 3 we were required to consider our Key Performance Indicators and the primary products/services that we wanted the business to deliver and our target market.

Finally for week 4 we were required to set out what we wanted our business numbers to look like in 5 years’ time, and what we thought our top 5 projects were to achieve these goals. We then set out the top 3 projects for each of the 10 business functions (or “hats”) for the next 12 months before completing the budget and cash flow projections for the next year. Finally, we submitted the job descriptions for each team member.

So as you can see there was a lot of homework to be done before the start of the retreat!

The retreat

Day 1 of the retreat started with a discussion on some basic principles of business, psychology and rules for communication. A key message here was from “Richard Branson’s way” of focusing our efforts as business owners not directly on clients, but on building our team and business systems to best serve our clients. We also discussed areas of opportunity and threats.

Day 2 was focused on Mark and my core personal values that we wanted reflected in the business. We brainstormed the values that we thought were important and then selected the top 5 that we both agreed on, and then worked to define exactly what each value meant to us. This was a very in-depth and time-consuming process, but was very valuable. The core values will serve as a constant compass by which to guide our business decisions. For example our first core value of honesty we defined as “courageously communicating with care and respect”. This requires us to address problems as they arise and not shy away from difficult conversations, but to do so in a careful and respectful manner.

We then focused on what business we are in and our brand promise.

Day 3 started with working on the key actions to take in the next 30 days after the retreat, then fleshing out the initiatives we wanted to work on. We listed our critical drivers to achieve our KPIs and forecast the financial position of the firm based on the initiatives proposed.

Since returning to the office we have continued to develop the 5 year plan by fleshing out the 90 day plans for the March and June quarters, and working on the “10 hats” chart for the business functions and role responsibilities within Allworths.

There is a lot of work involved in implementing our plans however we are excited to do so and committed to the positive changes this will bring for Allworths, our team and our clients.

Summary

A retreat away from the usual routines and physical spaces of work can be a hugely valuable process, but like any process, it should be approached in a methodical manner – not just put together on the fly, or at the retreat. Days or weeks of structured pre-work can ensure that all participants arrive at the retreat both armed with all the relevant data and also in the right mindset to reflect on years of track record, perceived successes and possible ‘failures’.

Once at the retreat, a mix of visionary thinking and practical goal-setting (in terms of the specific actions that will be taken over the following weeks or months) is crucial to ensure that there is both a clear direction (and a level of motivation, which tends to come with that) as well as a detailed plan towards its achievement (which we can continue to follow with discipline even if/when the initial motivation wears off).

Hopefully this has been a useful overview if you are currently planning to revisit your strategy as a team in 2022! Feel free to contact us if we can be of any assistance in preparing your financials, or if you have any other enquiries.

IMPORTANT NOTICE

This blog post contains general information only and has been prepared by Allworths without reference to your objectives, financial situation or needs. Allworths cannot guarantee the accuracy, completeness or timeliness of the information contained here. By making this information available to you, we are not providing professional advice or recommendations. Before acting on any of the information contained here, you should seek professional advice.