Many companies I work with have an Annual Plan and some foundational strategic elements, like Core Values, Core Purpose, and Mission/Vision/BHAG (Big Hairy Audacious Goal). However, these companies often don’t take the time to define goals on the 3-year time horizon to break it down into a time horizon they can better plan for. This is an essential step because these 3-year strategic plans form your base camps on the way to achieving your longer-term strategy. They allow you to brainstorm big ideas to help you grow beyond this year.
Working on your 3-5 Year Strategic Plan(PDF) is a best practice during your 2-day annual planning session, but what should the outcome of that time look like? What do you need to accomplish in that time? How does it connect to your mission statement?
No cookie-cutter plan or template works for every company, but if you are struggling with a place to start or curious about what a plan might look like, here are some examples of each component of your 3-Year Plan. (For these examples, I will focus on the 3-year time horizon. Based on industry standards and your growth goals, determine whether you want a 3-Year Plan—or 4 or even 5—to double the revenue for your company. Choose a specific time horizon, focus on that period, and choose the appropriate goals for the required team members. The shorter the time frame, the more detailed the action plan and clarity around SMART goals, with Rhythm Systems' SMART AI Goal Coach having 20 years of experience behind it. (How to Write a Goal).
Most companies track revenue as a Target in your 3-year strategic plan. Consider if there are other critical strategic metrics for your business, and add those to your list. Think about your goal to achieve in 3 years, what the goal is for this year, and what the goal is next year to help you get there. You can't manage what you can't measure.
Other examples of Targets could be Net Profit, EBITDA, # of Locations, Revenue by Product Line, Revenue/Employee, Net Income, etc. Do individual business units require their targets and goals? Now is the time to discuss them.
You can download our free strategic planning example template by clicking below.
Most companies grow in a few ways: acquisitions, organic growth, or expanding into new products, services, or markets. Depending on your business, industry, and specific opportunities and challenges, you should think through and determine the right mix of Winning Moves to help you achieve the Targets you set for your 3-Year Plan in your planning session. Your Winning Moves should help you double your revenue in the next 3-5 years. Make sure that the objective is as clear as you can make. By definition, you won't know all the answers, but the better the team understands the mission - even if the details aren't precise - the more they are connected to the why, the more they can help in strategy development.
Other examples could be developing a new product, shifting your business to a subscription model, selling your product or service to a new industry, etc. You and your team will have the best ideas for growing your business. If you have trouble brainstorming and choosing ideas, we have a proven process to help.
These strategies are all about maintaining profitability as you grow. If your company doubles in revenue over the next 3 years, what do you need to have in place from an infrastructure perspective as you scale (or from a leadership and talent growth perspective)?
Once you’ve identified the right mix of Winning Moves (no more than 3-5 total), you should do the following with each:
Establishing your 3-year strategic plan will help you get closer to achieving your long-term visionary BHAG and give your annual plans a strategic anchor. If you aren’t sure how to get started, let one of our expert facilitators guide you.