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September 30, 2020
Proper 2021 Planning Will Require a New Level of Focus
By: Tony Erickson
No more bets, please. Have you ever been at a roulette table next to the person who bets on nearly every number? They practically cover the board betting the majority of the 38 numbers, 0 & 00 included, not realizing the 35:1 payout is stacked against them. It has probably been a few months since you found yourself at a casino, but as you ready your business for 2021, are you placing too many bets?
Market-leading companies, the top 16%, grow organically faster than the industry and their competition. The secret to success is an agile planning process that adapts to ever-changing business dynamics, not to be confused with ever-changing priorities. Market leaders place a handful of big bets to accomplish one goal: focus. Too often, companies are distracted with too many competing priorities, which leads to partially executed plans resulting in little or no revenue growth.
Leading companies, on the other hand, possess a unique ability to articulate strategy in a succinct manner. More importantly, they stick to the strategy and maintain focus. Leading companies avoid “student body left, student body right” reactions to changing market conditions. Instead, they clearly outline and communicate the big bets to the organization and everyone from the CEO to individual contributors understand how their activities drive the expected outcomes of the bets. Because those big bets are realized over a 3 to 5-year horizon, they are broken down into annual key initiatives, quarterly priorities, and weekly goals. Download this tool to document big bets and develop a programmatic approach to executing the 2021 plan.
To prepare for the 2021 planning process, follow this 4-step process:
Expanding further on structured decision making, there are 4 Simple Truths that market leaders follow to define and execute big bets:
In the next planning process, strategically place bets where the level of effort and time to realization align with company expectations. Ensure you devote adequate resources to each bet. Track progress and drive accountability across the organization. Most important, maintain focus on a few big bets that yield a high probability of success. The bets in business do not require a 35:1 ROI like lucky number 13 in roulette. Place your bets wisely and confidently, then remember, no more bets, please.
To learn more, contact me and register for our upcoming webinar on how market leaders prepare their 2021 growth strategy. As you launch 2021 Annual Planning or adjust your fiscal plan due to recent market impacts, SBI can provide additional best practices to aid your plan.
As a Managing Director at SBI, Tony works with CEO’s enabling their companies to outpace the competition. He helps CEOs and their executive teams solve one big problem: as leaders, how do they exceed industry growth rates and capture share from the competition? For twenty years, Tony gained experience in consulting, business operations, sales, marketing, and general management. Prior to SBI, he worked with marquis technology companies focused on consulting and outsourcing; IBM, HP, Accenture, where he held a variety of leadership positions. At those companies, his successes included delivering a record sales performance of $935M, double-digit growth of a $350M P&L and building the fastest growing industry for two consecutive years.
Three years ago, Tony shifted his focus to smaller companies. With SBI, he has consulted with several Private Equity backed companies and served as Chief Operating Officer at a tech-enabled services firm focused on energy management and sustainability.
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