Strategic Planning - Not Just for the Shower!

How often does your organization perform strategic planning? How much of it happens in the shower in the morning? If you run a small or even medium sized business, you are probably in a constant state of strategic planning, at least in your head. I am here to plug making time to formalize this process.

At least annually, I have connected with a marketing professional that has helped me think through several areas of running a business. He assists me in writing a plan and a calendar for the next period for the growth and expansion of my business and my thought leadership aspirations. In addition to the written plan, I also take time to budget my projected revenues and expenses and to put my dreams into numbers. I am pretty good with the numbers part and my consultant is pretty good at framing my numbers into words.

I usually start by telling him where I think things are going. I tell him about the previous year's successes and failures and what my thoughts are on how to either repeat or avoid them going forward. Then we separate as he starts writing his piece and interestingly enough, that is when my real thinking begins. And before you know it, I am calling him back and saying, "Well, I thought about it and what I REALLY want to do is this." It is that second call that sets me off in the next/right direction. But I never would have crystallized my thought process if I hadn't talked to him in the first place.

Now for the follow-up: much like my original business plan, my annual marketing plan gathers dust on the server; but I truly believe that the value of writing things down absolutely translates into action. Each year when I come back to last year's plan, I find that I accomplished 80-90% of it. In fact, this process happens annually because each year around November or so, I find myself feeling restless, disjointed in my efforts in the community and downright hectic. Then I make a new plan and I am off and running again.

My advice for what it's worth: Figure out what you are good at, find someone who is good at another piece and who can talk you through the crazy jumble in your head and invest the time and money to formalize your strategic plan... It doesn't have to be a lot of either, but without it, what are you doing? Trying to run a business? Or just trying to avoid working for someone else?

Business Plans - it's the Journey not the Destination

There is some question about whether business plans are a good use of your time and energy. They do eventually go on a shelf and there they gather the dust. I don't know all the answers, but I can share my story. I started my firm on October 15, 2007. For the months of July and August, I spent every spare second working on a business plan. I started with a template from http://www.score.org/ and went from there.

I have always been a creative writer, but the template I used would not let me skip around the parts where I was most weak. Marketing, marketing, marketing. I can sell a client on what I do, but can I identify who that client is and make them come to me? Truth be told, I have been fortunate in referrals, but without the plan, I would have been less focused and really gotten myself in trouble early on with some work that came my way that was not in the "plan". As it was, I turned some of those jobs down, and actually earned some respect from my peers who thought I was really "brave". I look back now and laugh - it was a risk, but I had a plan, and it is in my head and I stick to it. As an aside, I did end up hiring a marketing consultant who was really helpful and who kept me on track. Hire to your weaknesses!!!!

I think the point of the business plan is the process of figuring out what you can do and what you are going to need to buy. I also believe that the discipline required to write the plan is an important indicator of your commitment to the business. Running a business is not easy - I often consider it my second marriage. In the business plan stage, I was planning the wedding - with so many things to think about and do, and yes, a lot of trepidation about what this type of commitment would mean going forward. But on the day I left my "job" and woke up, I knew what to do first because I had the plan. And just like in my marriage, we just went forward and did it. And we keep going.

Oh, and the important information - I did secure funding with my plan, and the loan officer relayed his supervisor's words, "They have to have a comprehensive plan or they have NO chance." I am not sure that is true, but it sure helped me.

Employee Turnover - Only Cost or Possible Opportunity?

I was at lunch today with my husband who works for another CPA firm as their IT Director. As often happens when we lunch, our discussion turns to firm management (yes, we are an exciting couple). One of the things we discussed was the companies we know that appear to be "overpaying" for audit and tax services. In each of those cases, the CFO at the company is alumni from a Big Four firm that "gave" the work directly to their old firm. Sometimes without a bidding process. I wondered aloud how many firms are seeing a return on their former employee's new companies?

There are many reasons that former employees are so loyal to Big Four firms. One is the clubbish atmosphere that there are certain things only a Big Four firm can accomplish. Even large local and regional firms can successfully push this atmosphere. In real life, there are small firms everywhere that specialize in various industries and transactions that can also get the job done, but until you have seen that in person, it is easy to believe that if you want quality service you have to go to a Big Four firm. (I am not going to get into all the reasons that your actual experience may differ from this assumption - under-trained staff, inadequate supervision, etc. Conversely, in some cases, it may absolutely be true.)

Another reason the big firms engender loyalty is the on-going offering of CPE to alumni, the alumni phone books and the general attitude that once you are family, you are always family. Whether or not they do it on purpose, these firms seem to plan that people will leave and work towards having them as walking marketing people even after they go. You can hate public accounting, but you don't hate Deloitte. Ever.

Other large firms that I know of don't do this well. When they turn over their staff, for whatever reason, they choose to be wounded that the individual would choose to leave the firm and they "cut all ties". Firms like that do not seem to pick up as much business from former employees as they should or could. The lesson here seems to be that public accounting, as great as it is, is not for everyone and in your marketing plan, you should determine how you can turn the employees that leave into future business for your firm. Turnover is always a cost, but I believe that there is also opportunity for recovery in future business.