Instant Gratification Dangers
These are the days of instant gratification. Short-term focus is replacing the vision of the long-term mission. Managers and business owners live and die by the next earnings report instead of relying on customer loyalty and brand reputation. The myopic, or narrow-minded, obsession with short-term performance reports leads companies down the wrong path and sometimes off of the rails entirely. The value of the long-term plan is to help the management team stay focused on results that matter. Properly developed plans with consistent vision builds meaningful action from good sentiment.
Effective Plans Steps
The objectives within the plan are the rules by which a plan should be executed. Consider these four steps when creating strategically effectively plans:
- Risk and Reward
Creativity and Risk
Never rest on today’s accomplishment. Conduct SWOT analysis often to understand what opportunities lie ahead. Always focus on the values of the customer for meaningful results. What does your idea mean to your most important customers? What will be required for you to deliver on your commitment to the customer? How far ahead of the tech and marketing curve is your new concept? Look before you leap. Risk is inevitable. No risk, no reward. Risks often come in two types. There are risks you must take because the lost opportunity cost is too great. Other risks you should take because you can easily reverse your course if things go wrong. Measured, educated, informed risk is the life of an entrepreneur. Every entrepreneurial personality profile ever offered includes an analysis of your ability to tolerate risks.
Many entrepreneurs suffer from sever attention deficit issues. That means we cannot or do not focus on anything through to conclusion. Here is a novel idea! When a business concept works, stick with it. When you experience success, double down on that model instead of going off on new tangents. Your ability to focus and accept success when it comes might help you find sustainable success and separate you from most entrepreneurs who fail. Refer to your original mission, vision, and values often to help stay focused.
Success must always be measured. One of the most common mistakes in stock investing is not knowing when to sell a stock. That is because many investors invest with no end goal and no final measure of success. If your goal is to double your money within two years then track your progress. If your money doubles six months into the investment then take your profit and call it a success. If you’ve lost half of your investment after two years in then you should probably take your losses and accept the reality. When measuring business goals, keep your measurements realistic, timely, and firm.
Effective planning is mandatory for sustainable success as a business leader. Effective plans for strategy always include creation and respecting mission, vision, and value statements. Success requires measurement and accepting the data in a dispassionate way. This effective plans in four steps is an excellent way to start focusing on what matters. For more on creating strategic plans with proper mission statements check out this Smart Strategy blog post.
Effective plans for business operation are the foundation of accountable leadership. Management teams often struggle with indecision and disagreement. Loss of focus and individual ego often causes total breakdown of leadership. The root cause of such breakdown is found in the lack of planning, lack of clear mission, and vision. Effective leadership develops effective plans. Mission and vision statements develop effective leaders and vice versa.