2016 is drawing to a close. Now is the time to reflect – and plan for the year ahead, mapping out your 2017 business strategy.
You’ve built a thriving, successful company. You’re ready for your next big phase of growth. The question is, do you know how to get there?
Before you can initiate the next stage in your business journey, you need to identify the barriers holding your business back and establish the critical steps needed to achieve growth – rapidly and sustainably. When setting out your 2017 business strategy, it’s vital to set out a framework that will help you to:
- build a successful growth strategy;
- discover new routes to funding and investment and
- unlock your capacity for innovation.
If you’re looking forward to 2017 and beyond, there are 5 essential “must-do’s” any business leader should be looking to do before the end of 2016:
- Complete a ‘diagnostic assessment’ of your business
- Create a single page, top-level growth plan
- Set out clear, defined actions plans for key growth projects
- Identify funding opportunities from local growth hubs and LEPS
- Partner a business coach with a proven track record for driving businesses growth
This blog sets out a methodical framework for approaching business growth strategy, supporting you in planning for 2017 – and beyond.
1.Complete a diagnostic assessment of your business
Before we can understand where it is we want to go, first we need to know where we are now.
This stage gives you the opportunity to consciously explore your ambitions, your capacity and your opportunity to achieve growth before entering the next stage of your business. Use this time to identify the main barriers holding your business back from further growth and develop a clear, tailored 3-year growth plan.
If completing a ‘diagnostic assessment’ sounds a bit too much like a medical intervention, don’t panic. The key is to keep it simple and get a clear SWOT analysis of where your business stands – and where it could go.
Start by creating a one page “word picture” that summarises your company’s strategic development and performance plans for the next three years. Using an ‘Orbit Diagram’ gives you a highly visual yet simplistic approach. To ensure you get maximum value from the technique and to optimise buy-in, it is recommended to include the company’s top management team in this process.
An example Orbit Diagram at this stage would typically take the format below.
Completing your Orbit Diagram
At the most basic level, your Orbit Diagram should describe your company vision for the next three years.
Begin by agreeing with your group what measures of performance would be most meaningful when describing your strategic journey. These, in effect, become the axis labels around the outside of the Orbit Diagram. They will typically, but not exclusively, include strategic growth measures such as:
- Sales turnover
- Profit
- Number of employees
- New office locations
- New product launches on stream
- % Blend of customer types
- Amount or % of turnover from overseas sales and opportunities
- Key strategic appointments to the team
- Quality standards / accreditations
- New Marketing / Sales resources
Strategic planning is a conversation that evolves, not a one-off task.
Therefore, at this point, it’s a good idea to begin with the fundamentals. Approach the Orbit by initiating discussions and agreeing your three-year target for core financial measures like turnover and profit. This way, your Management Team can clearly define exactly how much growth is desirable and feasible.
This is your core framework. After agreeing and completing the turnover and profit figure axis for all three years, consider the other axis labels to define and explain how your company can realistically deliver this financial growth.
Here, you are answering the question, “What else needs to change?” These axis labels may include topics like “breaking into new markets”, “securing additional financing” or even “key board appointments”.
When completed, your Orbit should set out all the necessary high level information needed to tell your company’s three year “growth story”.
2. Create a single page, top-level growth plan
You have your Orbit Diagram and a top level three-year plan. Now, it’s time to focus thinking around the specific breakthroughs that need to be achieved in the next twelve months.
Begin your single page planning session by reviewing your three-year Orbit diagram. Facilitate a discussion with your team as to what they believe to be your company’s ‘vital few’ breakthroughs for the coming year.
As the name suggests, these are a small number of critical strategic breakthroughs the company must achieve if it is to stay on target to achieve the vision defined in the Orbit diagram. Consider these the 20% of actions that will ultimately drive 80% of the outcomes for the year.
Remember: you are selecting the optimum ‘vital few’ genuine breakthroughs that will drive strategic growth. Resist the temptation to include progression goals that would have naturally occurred anyway!
Next, decide which of the draft ‘vital few’ breakthroughs your company should adopt. To do this, you must first recognise the reality of the situation.
These breakthroughs must be high level, high-growth orientated and strategic in nature. They should be set with understanding, not just bravado. And like any tangible business objective, they should be SMART (Specific, Measurable, Achievable, Realistic, Timely).
Typical “vital few” examples which deliver step changes in growth could include:
- Increase sales turnover with existing customers from £1 million to £1.5 million by November 2017
- Achieve £0.5 million turnover from new export strategy by Dec 2017
- Generate £400k from the launch of new product X by year end
- Win a £600k contract from the aerospace sector before Dec 2017
If we refer to these agreed ‘vital few’ as the “WHATs” (What we want to achieve), then next we must establish and agree the HOWs (How we will achieve the WHATs). Alternatively, you can think of the “WHATs” as the ends, and the “HOWs” as the means to an end.
Take each selected “WHAT” in turn; ask the team to brainstorm what they believe to be the key drivers of execution for this breakthrough. What important things must happen to convert this aspiration into a reality?
3. Set out clear, defined action plans for key growth projects
Once you’ve identified your HOWs, it’s critical to drill down further still to deliver on your vision.
This stage ensures that each distinct project has defined targets, measures of success and agreed timescales for delivery. In addition, it helps establish who is to be responsible for the delivery of each HOW project – a Champion, who can take ownership and hold accountability for outcomes.
Develop an Action Plan for each HOW project. Champions will need a robust action plan to ensure each HOW project is delivered on time and to specification. While there are many complex project applications and tools available, it can be helpful to take a simple, top-level approach to mapping out the core essentials, as per below.
This highly visual review technique can also be used to drive the agenda for review meetings, with projects in ‘red’ getting immediate attention. This helps keep your strategic plans on track.
4. Identify funding opportunities from local growth hubs and LEPS
If you’re a business with the ambition and potential for growth, the good news is, there’s a wealth of support available.
Growth hubs are local public/private sector partnerships led by the Local Enterprise Partnerships (LEPs). They join up national and local business support, making it easy for businesses to find the help they need.
There is a network of 39 hubs. These seek to provide impartial, clear and expert support to advise businesses. By understanding the unique needs and challenges of local or small businesses, they can improve the co-ordination of local business support with national programmes and introduce new services that can fill any gaps you have and help your business grow.
Available grants can range between £1,000 and £6,000 in some areas, with funds available to SME businesses to support identified growth projects that demonstrate a clear ‘step change’ approach for the business. These can provide vital assistance to increase turnover and support the creation of new jobs. Grants can also make up to a 40% cost contribution towards the cost of services such as expert advice, coaching or consultancy across a variety of business disciplines.
In other areas, grants are also available to put towards the cost of funding and support to expand and develop your workforce. To find out more about support available for your business, visit www.gov.uk or call the Business Support Helpline on 0300 456 3565 to speak to an advisor.
5. Partner a business coach with a proven track record for driving businesses growth
Partnering with an experienced, specialised business coach can maximise your chances of delivering on your strategic vision and provide you with the freedom and time to focus on what you do best: running your business.
When setting out ambitious growth plans, don’t underestimate the value a coach can deliver; these are individuals who can provide focus, align actions with your overall objectives and give valuable insight and experience.
However, buyer beware: there are so many ‘coaches’ out there, but not all are equal in terms of what they can deliver. Ensure you look for one who is verified and credible; ideally qualified with an ILM Level 7 Masters Equivalent in Coaching and a member of a recognised coaching body such as the European Mentoring and Coaching Council (EMCC). By selecting someone who is certified, you can safeguard your business and investment while ensuring your partner meets with set standards and a defined code of practice for coaching.
Take time to consider what your objectives are for working with a coach. There are many definitions of coaching; not all coaching styles are suited to all organisations. It’s more important when sourcing a partner to look for an individual who has robust experience of business and the commercial world, with a proven track record for delivering high quality business coaching.
The two key criteria against which to judge potential Growth Coaches, therefore, are:
- Personal business record: look for experienced and credible business people who have strong commercial acumen and firsthand knowledge of growing a business, either as a business owner or in a senior position.
- Proven track record in coaching business leaders: the most effective coaches can demonstrate an existing successful track record as a business coach, focusing on business performance.
Finally, look for a coach who can demonstrate their credibility, experience and expertise. These are the individuals who can build strong and robust relationships with business leaders, creating profitable partnerships.
Is it too late to get started for 2017?
No. It’s never too late. Before we wrap up for Christmas, take the time to get your leadership team together and get business planning for the year ahead. You won’t regret it.