The Free Management Library has some good information related to developing a strategic plan. The site lays out several models that can be implemented for both profit and non-profit businesses. The focus of this post is the "Basic" strategic plan. This is also the one that most firms use when developing a strategic plan. The process includes:
- Identifying your core purpose or "mission statement"
- Determining the goals that align with that purpose
- Determine the methods you will use to reach those goals
- Create action plans to implement these methods
- Measure, adjust and modify as needed.
Identifying your core purpose or "mission statement" - this is the part that starts and sometimes ends the process. Firms can easily get bogged down in determining the language for the firm's "mission". If you look around at other's mission statements, you can find that they pretty much say the same thing - client-driven, quality, service, honesty, integrity, seeking justice, etc. Be careful how you draft your mission statement - you will be judged by the words you choose; by your clients, your employees and your competitors. The mission statement is the "big picture" so it needs to encompass everything you want to accomplish with the strategic plan. Answer these 4 "whats" (adapted from The Lawyer's Guide To Strategic Planning by Thomas C. Grella and Michael L. Hudkins) and compress it into a single statement:
- What areas of practice are our focus?
- What is our goal in representing clients?
- What market segment do we serve?
- What are our core values?
Determining the goals that align with that purpose - the goals are the metrics against which you will measure success. Most people think of setting long-term goals. I think for smaller firms, you should pick short-term goals with long-term objectives. This is especially true when looking at financial goals, but with any change you have to set goals that are attainable in the short term. Since strategic plans should be reviewed annually, you can set new goals next year. It is more important that they are aligned with your core purpose than comprehensive.
Determine the methods you will use to reach those goals - the methods used to reach your goals require a review of all your processes. Processes that are inhibiting your ability to reach your goals need to be eliminated. While you are at it, those processes that are inefficient should be streamlined. If you do not have a clear organizational chart, this would be a good time to develop one.
Create action plans to implement these methods - who are we kidding here? Attorneys creating action plans? It isn't hard to see why firms get lost in the process. However, you have to set benchmarks to measure success or failure. The action plan is the blueprint for success that you follow based on the processes set up to reach the goals that align with your core values. One idea for an action plan (again from The Free Management Library) requires the following to be addressed:
- The goals to be accomplished;
- How those results will be achieved
- Who is responsible for achieving the results
- When will the results be achieved (timeline)
- What is the status of the goal (with an as of date)
Considering that action plans will have a short-term negative impact on productivity, many firms will not want to do this. Understand the purpose and create your own method of accountability. Some consultants do not promote action plans, but promote organizational focus to implement the plan. Additional staff are needed and focus placed on them to ensure that processes are in place and functioning. If it works, stick with it. If it falters, you need to implement things that work. How will you know if it falters? Through measuring performance.
Measure, adjust and modify as needed - measurement improves performance. In this case, measurement will hold people and processes accountable so that you can modify the processes and mentor the people (to the extent you can). The largest issue I have found in firms that enact change isn't necessarily the processes - people eventually get used to processes. It is the accountability. It is imperative that there is buy-in by the principals or else plans can easily falter and a large investment in time and money is wasted. If the firm is even-handed and consistent in its application of the plan, positive results will ensue.
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