{"id":4865,"date":"2019-05-13T05:47:28","date_gmt":"2019-05-13T10:47:28","guid":{"rendered":"http:\/\/flevy.com\/blog\/?p=4865"},"modified":"2020-12-20T22:14:10","modified_gmt":"2020-12-21T03:14:10","slug":"family-business-strategic-planning-at-its-core","status":"publish","type":"post","link":"https:\/\/flevy.com\/blog\/family-business-strategic-planning-at-its-core\/","title":{"rendered":"Family Business: Strategic Planning at its Core"},"content":{"rendered":"

Family Businesses<\/a> need to change and develop new strategies if they are to remain healthy and financially viable. The dynamic \"\"external environment, driven by increasing competitive markets, make it difficult for companies to maintain the status quo.<\/p>\n

Key issues stay constant year-on-year relative to particular qualities of the family firm and the strengths and challenges inherent in this model. However, there is a definite sense of evolution. In 2012, the dominant themes were skills, scale, and succession. By 2014, this has evolved to focus on the need to professionalize. There is now a need to sharpen up processes and institute robust governance<\/a>.<\/p>\n

To date, the shift is more fundamental. It has shifted from the short term and the tactical to the medium term and the strategic. The challenge is in the middle: having a strategic plan that links where the business is now to the long term and where it could be. This is what we call the “Missing Middle<\/a>.”<\/p>\n

Strategic Planning: Bridging the Gap to Future Growth<\/h2>\n

A robust Strategic Planning process within Family Business<\/a>\u00a0can help these organizations bridge the gap to future growth. In the strategic level, Strategic Planning<\/a> can determine whether the business has the appropriate capital structure. It can also determine whether there is access to funding that the business needs to take advantage of future opportunities.<\/p>\n

On the tactical side, it can determine whether the business can free up capital for investment. It can also determine if funding is on the right terms and source is secured. In short, Strategic Planning can lead Family Businesses to enhance its capability to finance growth.<\/p>\n

The 10 Steps to Strategic Planning<\/h2>\n

\"\"<\/a><\/p>\n

    \n
  1. It\u2019s about the “what” not the “how.”<\/strong>
    \nA Strategic Planning process starts with a shared vision of objectives. We must be able to decide the direction of the firm and set business goals over the medium term.<\/li>\n<\/ol>\n
      \n
    1. \u00a0Stand in the future and look back.<\/strong>
      \nIn planning, we need to be absolutely clear about what the future looks like.<\/li>\n<\/ol>\n
        \n
      1. Stand in the present and look around.<\/strong>
        \nTake a hard look at the business as it is right now. Are your ambitions realistic? What do we need to change?<\/li>\n<\/ol>\n
          \n
        1. Invite input.<\/strong>
          \nThe Strategic Planning process is never a one-man show. We need to involve people from across the organization and trusted advisers outside.<\/li>\n<\/ol>\n
            \n
          1. Be prepared for change.<\/strong>
            \nPreparing for change is synonymous to Strategic Planning. Change is inevitable in Strategic Planning.<\/li>\n<\/ol>\n
              \n
            1. Set a timescale.<\/strong>
              \nA good Strategic Plan must be developed like an itinerary \u2013 with its milestones and final destination.<\/li>\n<\/ol>\n
                \n
              1. Assign responsibilities.<\/strong>
                \nSignificantly, CEOs and the Board play a vital role in Strategic Planning as they take ultimate ownership of the plan and support it.<\/li>\n<\/ol>\n
                  \n
                1. Translate the strategic plan into a business plan.<\/strong>
                  \nStrategic Plans must be operational, monitored, and communicated. A robust Strategic Plan is action-directed.<\/li>\n<\/ol>\n
                    \n
                  1. Measure, monitor, and adapt.<\/strong>
                    \nImplementing the Strategic Plan is not sufficient. It must be measured, monitored, and adapted to current situations or conditions.<\/li>\n<\/ol>\n
                      \n
                    1. Communicate, communicate, communicate.<\/strong>
                      \nStrategic Plans become more effective when there is shared commitment, energy, and a common sense of direction. We can achieve this if we communicate, communicate, and communicate.<\/li>\n<\/ol>\n

                      When undertaking Strategic Planning, it is essential that we have a good grasp of where we are, what we are, and how we are going to do it. The 10 Steps to Strategic Planning<\/a> can be our company\u2019s stepping stone towards a clearly written and result-directed Strategic Plan.<\/p>\n

                      Interested in gaining more understanding of these\u00a010 Steps to Strategic Planning in a Family Business<\/a>? You can learn more and download an editable PowerPoint about 10 Steps to Strategic Planning<\/strong> here<\/a> on the Flevy documents marketplace<\/a>.<\/p>\n

                      Do You Find Value in This Framework?<\/h2>\n

                      You can download in-depth presentations on this and hundreds of similar business frameworks from the FlevyPro Library<\/a>. FlevyPro<\/a> is trusted and utilized by 1000s of management consultants and corporate executives. Here’s what some have to say:<\/p>\n

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                      “FlevyPro has been a brilliant resource for me, as an independent growth consultant, to access a vast knowledge bank of presentations to support my work with clients. In terms of RoI, the value I received from the very first presentation I downloaded paid for my subscription many times over! The quality of the decks available allows me to punch way above my weight \u2013 it’s like having the resources of a Big 4 consultancy at your fingertips at a microscopic fraction of the overhead.”<\/p>\n

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                      “Several times a month, I browse FlevyPro for presentations relevant to the job challenge I have (I am a consultant). When the subject requires it, I explore further and buy from the Flevy Marketplace. On all occasions, I read them, analyze them. I take the most relevant and applicable ideas for my work; and, of course, all this translates to my and my clients’ benefits.”<\/p>\n

                      \u2013 Omar Hern\u00e1n Montes Parra, CEO at Quantum SFE<\/p>\n<\/blockquote>\n","protected":false},"excerpt":{"rendered":"

                      Family Businesses need to change and develop new strategies if they are to remain healthy and financially viable. The dynamic external environment, driven by increasing competitive markets, make it difficult for companies to maintain the status quo. Key issues stay constant year-on-year relative to particular qualities of the family firm and the strengths and challenges… Family Business: Strategic Planning at its Core<\/span><\/a><\/p>\n","protected":false},"author":111,"featured_media":4880,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"neve_meta_sidebar":"","neve_meta_container":"","neve_meta_enable_content_width":"","neve_meta_content_width":0,"neve_meta_title_alignment":"","neve_meta_author_avatar":"","neve_post_elements_order":"","neve_meta_disable_header":"","neve_meta_disable_footer":"","neve_meta_disable_title":"","footnotes":""},"categories":[81],"tags":[1588,27,1589],"class_list":["post-4865","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-strategy","tag-missing-middle","tag-strategic-planning","tag-the-10-steps-to-strategic-planning"],"_links":{"self":[{"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/posts\/4865","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/users\/111"}],"replies":[{"embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/comments?post=4865"}],"version-history":[{"count":7,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/posts\/4865\/revisions"}],"predecessor-version":[{"id":8145,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/posts\/4865\/revisions\/8145"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/media\/4880"}],"wp:attachment":[{"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/media?parent=4865"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/categories?post=4865"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/tags?post=4865"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}