business plan plan execute monitor

Implementing your business plan: How to execute your plan and monitor your progress

1. setting clear goals and objectives, 2. creating an actionable timeline, 3. allocating resources effectively, 4. assigning responsibilities and accountability, 5. monitoring key performance indicators (kpis), 6. regularly reviewing and adjusting the plan, 7. communicating and collaborating with stakeholders, 8. implementing feedback loops for continuous improvement, 9. celebrating milestones and recognizing achievements.

setting Clear Goals and objectives is a crucial aspect of executing a business plan and monitoring progress. By clearly defining what you want to achieve, you provide direction and focus for your team. From different perspectives, experts emphasize the importance of goal setting .

1. Clarity and Alignment: When setting goals, it is essential to ensure clarity and alignment with your overall business strategy . Goals should be specific, measurable, achievable, relevant, and time-bound (SMART). This clarity helps everyone understand what needs to be accomplished and how it contributes to the larger picture.

2. Motivation and Accountability: Clear goals provide motivation for individuals and teams. When employees have a clear understanding of what they are working towards, they are more likely to stay focused and committed . Additionally, goals create a sense of accountability, as progress can be tracked and evaluated.

3. Prioritization and Resource Allocation: Setting goals helps prioritize tasks and allocate resources effectively . By identifying the most important objectives, you can allocate time, budget, and manpower accordingly. This ensures that resources are utilized optimally and aligned with the desired outcomes.

4. Measurement and Evaluation: Clear goals enable measurement and evaluation of progress. By defining specific metrics and milestones, you can track performance and assess whether you are on track to achieve your objectives. Regular evaluation allows for adjustments and course corrections if necessary.

Example: Let's say you are launching a new product. Your goal could be to achieve a certain number of sales within the first quarter. By setting this clear objective, you can align your marketing efforts , sales strategies, and resource allocation towards achieving this goal. You can track the number of sales, monitor customer feedback, and make adjustments to your approach if needed.

In summary, setting clear goals and objectives provides direction, motivation, and accountability for executing your business plan . It helps prioritize tasks, allocate resources effectively, and enables measurement and evaluation of progress. By following the SMART framework and considering different perspectives, you can ensure that your goals are well-defined and contribute to the success of your business.

Setting Clear Goals and Objectives - Implementing your business plan: How to execute your plan and monitor your progress

1. Identify Goals and Objectives: Start by clearly defining your goals and objectives for the project or initiative. These should be specific, measurable, achievable, relevant, and time-bound (SMART). For example, if your goal is to launch a new product, your objective could be to complete product development within six months.

2. Break Down Tasks: Once you have your goals and objectives in place, break them down into smaller, manageable tasks. This helps in organizing your timeline and ensures that each task contributes to the overall goal. For instance, if one of your objectives is to conduct market research , tasks could include gathering data, analyzing competitors, and identifying target customers .

3. Estimate Timeframes: Assign realistic timeframes to each task based on its complexity and dependencies. Consider factors such as resource availability, team capacity, and potential risks. It's important to be mindful of any external dependencies that may impact the timeline. For example, if you need input from a third-party vendor, account for their availability in your estimates.

4. Prioritize Tasks: Determine the order in which tasks should be completed based on their importance and dependencies. This ensures that critical tasks are addressed first and any bottlenecks are identified early on. For instance, if product development is dependent on market research, prioritize completing the research before moving forward with development.

5. Allocate Resources: Assess the resources required for each task, including personnel, budget, and equipment. Ensure that you have the necessary resources available to complete the tasks within the allocated timeframes. If resources are limited, consider outsourcing or reallocating resources from non-critical areas.

6. Create a Visual Timeline: Represent your timeline visually using a Gantt chart or a similar tool. This provides a clear overview of the project's timeline, tasks, and dependencies. A visual representation helps in communicating the timeline to stakeholders and tracking progress effectively.

7. Monitor and Adjust: Regularly monitor the progress of tasks against the timeline. Identify any delays or deviations and take necessary actions to address them. This may involve reallocating resources, adjusting timeframes, or revisiting task priorities. Flexibility is key to adapting to unforeseen circumstances and ensuring the timeline remains actionable.

Remember, creating an actionable timeline is an iterative process. Continuously review and refine your timeline as the project progresses to ensure it remains aligned with your goals and objectives .

Creating an Actionable Timeline - Implementing your business plan: How to execute your plan and monitor your progress

Allocating resources effectively is a crucial aspect of executing a business plan and monitoring progress. It involves strategically distributing available resources to maximize efficiency and achieve desired outcomes . From various perspectives, including financial, human, and technological, effective resource allocation plays a vital role in driving success.

1. Financial Perspective:

When it comes to financial resource allocation, businesses need to prioritize investments wisely. This involves identifying key areas that require funding and allocating resources accordingly. For example, allocating a larger budget to marketing initiatives can help increase brand visibility and attract more customers. On the other hand, investing in research and development can drive innovation and product improvement.

2. Human Perspective:

Allocating human resources effectively involves assigning tasks and responsibilities to individuals based on their skills and expertise. By matching the right people to the right roles, businesses can enhance productivity and ensure optimal utilization of talent. For instance, assigning a skilled salesperson to handle key accounts can lead to better customer relationships and increased sales.

3. Technological Perspective:

In today's digital age, allocating resources to technology is essential for staying competitive. This includes investing in software, hardware, and infrastructure that support business operations. For example, implementing an efficient customer relationship management (CRM) system can streamline sales processes and improve customer satisfaction . Allocating resources to cybersecurity measures is also crucial to protect sensitive data and prevent cyber threats.

4. In-Depth Insights:

To delve deeper into effective resource allocation, let's consider an example. Imagine a manufacturing company that wants to optimize its production line. By analyzing data on production efficiency, identifying bottlenecks, and allocating resources to address those bottlenecks, the company can improve overall productivity. This might involve investing in new machinery, training employees on efficient production techniques, or reorganizing the workflow.

5. Highlighting Ideas:

To highlight the importance of effective resource allocation, let's take the example of a startup. When starting a new venture with limited resources, prioritizing allocation becomes crucial. By focusing on core activities that directly contribute to revenue generation, such as product development and marketing , startups can make the most of their limited resources and increase their chances of success .

In summary, allocating resources effectively is a multifaceted process that involves considering financial, human, and technological aspects. By strategically distributing resources, businesses can optimize productivity, drive innovation, and achieve their goals. Remember, effective resource allocation is a key component of executing a business plan and monitoring progress.

Assigning Responsibilities and Accountability is a crucial aspect of executing a business plan and monitoring progress. In this section, we will delve into the various perspectives and insights related to this topic.

1. Clearly define Roles and responsibilities : When implementing a business plan , it is essential to assign specific roles and responsibilities to individuals or teams. This ensures that everyone understands their tasks and contributes effectively to the overall objectives. For example, the marketing team may be responsible for developing and executing marketing campaigns, while the sales team focuses on generating leads and closing deals .

2. Establish Clear Reporting Structures: A well-defined reporting structure helps maintain accountability within an organization. By establishing reporting lines, employees know who they report to and who they are accountable for. This promotes transparency and streamlines communication. For instance, a project manager may report to a department head, who in turn reports to the CEO.

3. foster a Culture of ownership : Encouraging a sense of ownership among employees is vital for accountability. When individuals feel a personal stake in their work, they are more likely to take responsibility for their actions and outcomes. For example, empowering employees to make decisions within their designated areas of responsibility can foster a culture of ownership.

4. Implement Performance Metrics: Performance metrics provide a quantifiable way to measure progress and hold individuals accountable. By setting clear goals and tracking key performance indicators (KPIs), organizations can assess the effectiveness of their strategies and identify areas for improvement . For instance, sales teams may be evaluated based on revenue targets or customer acquisition rates.

5. Regularly review and Provide feedback : Ongoing evaluation and feedback are essential for accountability. Regular performance reviews allow managers to assess individual contributions, provide constructive feedback , and address any issues or challenges. This helps employees stay on track and make necessary adjustments to achieve their goals.

Remember, assigning responsibilities and fostering accountability is a continuous process that requires effective communication, collaboration, and adaptability. By implementing these practices, organizations can enhance their execution of business plans and monitor progress more effectively.

Assigning Responsibilities and Accountability - Implementing your business plan: How to execute your plan and monitor your progress

monitoring Key Performance indicators (KPIs) is a crucial aspect of executing a business plan and tracking progress. By regularly assessing KPIs, businesses can gain valuable insights into their performance and make informed decisions to drive growth . From various perspectives, monitoring KPIs allows stakeholders to evaluate the effectiveness of strategies, identify areas for improvement, and measure the overall success of the business .

1. Definition and Selection of KPIs: When monitoring KPIs, it is essential to define and select the most relevant metrics for your business. These metrics should align with your objectives and provide meaningful insights. For example, a retail business might track KPIs such as sales revenue, customer acquisition cost , and customer retention rate .

2. Setting Targets: Once you have identified the KPIs, it is crucial to set realistic and achievable targets. These targets serve as benchmarks for measuring progress and evaluating performance. For instance, a software company might set a target of increasing monthly active users by 10% within a specific timeframe.

3. data Collection and analysis : Accurate and reliable data collection is vital for monitoring KPIs effectively. Businesses can leverage various tools and technologies to gather relevant data, such as CRM systems, analytics platforms, and surveys. analyzing this data provides insights into trends, patterns, and areas that require attention.

4. Regular Reporting: Regular reporting of KPIs ensures that stakeholders stay informed about the business's performance. Reports can be presented in various formats, such as dashboards, charts, or written summaries. These reports enable stakeholders to track progress, identify deviations from targets, and make data-driven decisions .

5. Actionable Insights: Monitoring KPIs should not be limited to tracking numbers. It should also provide actionable insights that drive improvements. For example, if the customer churn rate is high, businesses can analyze the reasons behind it and implement strategies to enhance customer satisfaction and retention .

6. Continuous Evaluation and Adaptation: Monitoring KPIs is an ongoing process that requires continuous evaluation and adaptation. As the business landscape evolves, KPIs may need to be adjusted to reflect changing priorities and market conditions. Regularly reviewing and updating KPIs ensures their relevance and effectiveness.

Remember, monitoring KPIs is a dynamic process that requires a combination of data analysis , strategic thinking, and proactive decision-making. By implementing robust monitoring practices, businesses can optimize their performance, identify growth opportunities , and stay ahead in today's competitive market .

Monitoring Key Performance Indicators \(KPIs\) - Implementing your business plan: How to execute your plan and monitor your progress

## Why Regular Review Matters: Insights from Different Angles

1. Strategic Alignment :

- Entrepreneur's View : Regular reviews allow entrepreneurs to assess whether their business activities align with the overall strategic vision. It's like checking if the ship's heading matches the plotted course.

- Example : Imagine a tech startup aiming to disrupt the e-commerce industry. A quarterly review helps evaluate whether their product development, marketing, and customer acquisition efforts align with this disruptive vision.

2. Market Dynamics and Trends :

- Market Analyst's Perspective : Markets are dynamic—new trends emerge, consumer preferences shift, and competitors evolve. Regular reviews help businesses stay attuned to these changes.

- Example : A retail chain reviews sales data monthly. They notice a surge in online orders for sustainable products. Adjusting their inventory and marketing strategy accordingly ensures they ride the sustainability wave.

3. Operational Efficiency :

- Operations Manager's Insight : Regular reviews reveal operational bottlenecks, inefficiencies, and areas for improvement. It's akin to fine-tuning a well-oiled machine.

- Example : A manufacturing company reviews production processes weekly. They identify a bottleneck in the assembly line and optimize it, resulting in faster output.

4. Risk Mitigation :

- Risk Analyst's Take : Risks evolve—financial, regulatory, or technological. Regular reviews assess risk exposure and allow proactive adjustments.

- Example : A fintech startup reviews cybersecurity protocols quarterly. They discover a vulnerability and promptly enhance their encryption measures.

## In-Depth Strategies for Effective Review and Adjustment

1. Frequency and Metrics :

- Monthly Financial Review : Analyze income statements, balance sheets, and cash flow. Adjust budgets, pricing, and investment allocations.

- Quarterly Strategic Review : Evaluate progress toward strategic goals. Adjust marketing campaigns, product roadmaps, and partnerships.

- Annual SWOT Analysis : Assess strengths, weaknesses, opportunities, and threats. Adjust organizational structure, talent acquisition, and risk management.

2. Stakeholder Involvement :

- Leadership Team : Regularly convene to review performance metrics, customer feedback, and market trends. Adjust strategic priorities collaboratively.

- Employee Feedback : Gather insights from frontline staff. Adjust processes, training, and employee engagement initiatives.

3. Scenario Planning :

- Best-Case, Worst-Case, and Realistic Scenarios : Anticipate external shocks (e.g., economic downturns, supply chain disruptions). Adjust contingency plans accordingly.

- Example : A travel agency reviews scenarios—best-case (post-pandemic boom), worst-case (travel restrictions persist), and realistic (gradual recovery). They adjust marketing budgets and diversify offerings.

4. Technology and Tools :

- Automated Alerts : Set up alerts for key performance indicators (KPIs). Adjust strategies promptly based on deviations.

- data Analytics platforms : Regularly analyze customer behavior , website traffic, and conversion rates. Adjust digital marketing tactics .

Remember, "Regularly Reviewing and Adjusting the Plan" isn't a one-time event; it's an ongoing process. Like tuning an instrument, it ensures your business produces harmonious results even in a changing symphony of markets and opportunities.

Feel free to share your thoughts or ask for further examples!

Regularly Reviewing and Adjusting the Plan - Implementing your business plan: How to execute your plan and monitor your progress

When it comes to implementing a business plan and monitoring progress, effective communication and collaboration with stakeholders play a crucial role . Engaging with stakeholders ensures that everyone involved is aligned, informed, and working towards the same goals.

From the perspective of the business owner, clear and transparent communication is essential. This involves regularly updating stakeholders on the progress of the plan, sharing key milestones, and addressing any concerns or questions they may have. By keeping stakeholders informed, the business owner can build trust and maintain a positive working relationship.

On the other hand, stakeholders such as employees, investors, and customers also have valuable insights and perspectives to contribute. It is important to actively listen to their feedback and involve them in decision-making processes whenever possible. This collaborative approach fosters a sense of ownership and commitment among stakeholders, leading to better execution of the business plan .

Now, let's dive into some in-depth information about communicating and collaborating with stakeholders:

1. Establishing Clear Channels of Communication: It is crucial to establish clear channels of communication to ensure effective information flow. This can include regular team meetings, email updates, project management tools , or even dedicated communication platforms. By providing stakeholders with a reliable means of communication, you can facilitate timely and efficient collaboration.

2. Active Listening and Feedback: Actively listening to stakeholders and seeking their feedback is key to successful collaboration. Encourage open dialogue, ask for suggestions, and address any concerns raised. This not only helps in building stronger relationships but also allows for continuous improvement and adaptation of the business plan.

3. Regular Progress Updates: Keeping stakeholders informed about the progress of the plan is essential. provide regular updates on milestones achieved, challenges faced, and future plans. This helps stakeholders understand the direction of the business and allows them to provide valuable input and support.

4. Engaging Stakeholders in Decision-Making: Involving stakeholders in decision-making processes can lead to better outcomes and increased commitment. Seek their input on important decisions, gather diverse perspectives, and consider their expertise. This collaborative approach ensures that the business plan reflects the collective wisdom of all stakeholders.

5. Utilizing examples and Case studies : When discussing ideas or concepts related to the business plan, using examples and case studies can be highly effective. real-life examples help stakeholders visualize the application of the plan and understand its potential impact. This can further enhance their engagement and support.

Remember, effective communication and collaboration with stakeholders are vital for the successful execution of a business plan. By prioritizing open dialogue, active listening, and involving stakeholders in decision-making, you can harness their expertise and support to drive the plan forward.

Communicating and Collaborating with Stakeholders - Implementing your business plan: How to execute your plan and monitor your progress

1. Understanding Feedback Loops:

- Feedback loops are dynamic systems where information circulates between different components. In the context of business execution, feedback loops involve collecting data, analyzing it, and using the insights to refine strategies.

- These loops can be either positive (reinforcing) or negative (corrective). Positive feedback amplifies a trend (e.g., exponential growth), while negative feedback stabilizes or corrects deviations (e.g., a thermostat maintaining room temperature).

2. Types of Feedback Loops:

- Operational Feedback Loops:

- These focus on day-to-day operations . For instance, monitoring customer service response times, production efficiency, or inventory levels.

- Example: An e-commerce company tracks order fulfillment times. If delays occur, corrective actions are taken to improve efficiency.

- Strategic Feedback Loops:

- These relate to long-term goals and overall direction. Strategic feedback helps adjust the business plan .

- Example: A software startup receives feedback from early adopters, influencing product roadmaps and market positioning.

- customer Feedback loops :

- Vital for understanding customer needs and satisfaction .

- Example: Regular surveys, social media comments , and reviews provide insights for product enhancements.

- Employee Feedback Loops:

- employee engagement and satisfaction impact productivity.

- Example: Regular team meetings, anonymous suggestion boxes, or performance reviews.

- Market Feedback Loops:

- monitor market trends , competitor actions, and customer preferences.

- Example: analyzing sales data , tracking competitors' pricing strategies, and adapting accordingly.

3. Implementing effective Feedback loops :

- Define Metrics:

- Identify key performance indicators (KPIs) relevant to your business objectives.

- Example: Conversion rates, customer churn, employee turnover.

- Collect Data:

- Use tools like surveys, analytics platforms, and CRM systems.

- Example: Customer feedback forms, website analytics, employee engagement surveys .

- Analyze Insights:

- Regularly review data to identify patterns, trends, and anomalies.

- Example: A sudden drop in website traffic may prompt investigation.

- Act on Feedback:

- Translate insights into actionable steps.

- Example: If customer complaints highlight slow response times, allocate resources to improve customer support .

- Iterate and Improve:

- Continuously refine processes based on feedback.

- Example: A software development team releases updates based on user feedback .

- Close the Loop:

- Communicate changes made based on feedback.

- Example: Inform customers that their suggestions led to product enhancements.

4. Real-World Example:

- Amazon's Fulfillment Centers:

- Amazon collects real-time data on order processing times, warehouse efficiency, and delivery speed.

- Their feedback loops drive process improvements, such as optimizing warehouse layouts, automating tasks, and reducing delivery times.

Remember, feedback loops aren't static; they evolve as your business grows. Embrace feedback as a catalyst for progress, and your business plan execution will benefit immensely.

Implementing Feedback Loops for Continuous Improvement - Implementing your business plan: How to execute your plan and monitor your progress

Celebrating milestones and recognizing achievements is a crucial aspect of any successful business journey. Whether you're a startup founder, a seasoned entrepreneur, or a team leader, acknowledging progress and accomplishments is essential for maintaining motivation, fostering a positive work environment, and reinforcing a sense of purpose. In this section, we'll delve into various perspectives on celebrating milestones and provide practical insights to help you implement effective recognition strategies.

1. The Importance of Celebrating Milestones:

- Psychological Impact: Recognizing achievements boosts morale and enhances employee satisfaction. When individuals feel valued and appreciated, they are more likely to stay motivated and committed.

- Team Cohesion: Celebrating milestones fosters a sense of camaraderie among team members. It reinforces the idea that everyone is working toward a common goal.

- long-Term vision : Regular celebrations remind everyone of the bigger picture. They serve as markers along the path to success, reinforcing the journey's significance.

- Client and Stakeholder Relations: Publicly acknowledging milestones can also impress clients, investors, and partners. It demonstrates progress and competence.

2. Effective Strategies for Celebrating Milestones:

- Public Recognition: Host a team meeting or an all-hands gathering to announce achievements. Highlight specific contributions and express gratitude. For example:

> "I want to recognize Sarah for her outstanding work on the recent product launch. Her attention to detail and dedication made it a success."

- Customized Rewards: Tailor rewards to individual preferences. Some team members may appreciate a bonus, while others might prefer extra vacation days or professional development opportunities .

- Symbolic Gestures: Consider symbolic gifts or tokens. A personalized trophy, a framed certificate, or a handwritten note can make a lasting impact.

- Social Media Shoutouts: Share milestones on your company's social media platforms. Feature team members and their accomplishments. Use visuals like photos or infographics.

- team Building activities : Celebrate collectively through team outings, picnics, or themed events. For instance, organize a "milestone hike" where team members climb a hill together to signify progress.

- Anniversary Celebrations: Mark significant anniversaries (e.g., company founding, product launch, customer acquisition) with special events. Invite stakeholders and reminisce about the journey.

- Surprise Celebrations: Unexpected celebrations can be delightful. Imagine surprising your team with a catered breakfast after hitting a sales target.

- Storytelling: Narrate the journey behind the milestone. Share anecdotes, challenges overcome, and lessons learned. Storytelling creates a sense of continuity and inspires others.

3. Examples of Celebrated Milestones:

- Revenue Targets: When your company surpasses a revenue milestone (e.g., $1 million in annual sales), celebrate it with a company-wide event.

- Product Launches: Toast the successful launch of a new product or feature. Highlight the team's efforts and the impact on customers.

- Employee Tenure: Acknowledge employees who have been with the company for a significant period. Consider personalized gifts or a heartfelt speech.

- Customer Acquisition: Celebrate every 100th customer or a major client win. Express gratitude for their trust.

- Project Completion: Whether it's a software release or a construction project, completing milestones within deadlines deserves applause.

- Certifications and Awards: Recognize team members who earn certifications or win industry awards . Showcase their achievements.

Remember, celebrating milestones isn't just about the big wins; it's also about appreciating the small victories that contribute to the overall progress. By creating a culture of celebration, you'll inspire continuous effort and reinforce the belief that every step forward matters.

Feel free to adapt these strategies to your specific context and organizational culture!

Celebrating Milestones and Recognizing Achievements - Implementing your business plan: How to execute your plan and monitor your progress

Read Other Blogs

1. Junk bonds, also known as high-yield bonds, may sound intimidating to the average investor....

One of the most crucial steps in any startup's growth strategy is to identify and target the right...

Nonlinear regression models are a class of statistical models that allow the relationship between a...

Marketing is the process of creating, delivering, and communicating value to customers, clients,...

In today's competitive and dynamic market, businesses need to understand their customers better...

Auto insurance is a crucial aspect of owning and operating a vehicle. It provides financial...

Negative feedback systems play a crucial role in maintaining equilibrium in various aspects of...

Cost allocation is the process of assigning the costs of various activities or resources to...

In the ever-evolving landscape of business and marketing, the concept of offering free trials has...

6 Steps To Successful Strategy Execution

Strategic planning is hard, but the real challenge is execution. Connecting the dots between strategy and action can feel like an impossible task. And if you’re thinking, “ but I have a solid plan in place, ” think again. You might have heard that a staggering 90% of strategic plans fail to succeed . But did you know that even today, 50% of strategies still don't get executed?

In a world where disruptions have become the new normal and competition is intensifying, it's more important than ever to tie planning and execution together.

Business leaders and executives have started paying attention to this gap, but many organizations still struggle to find the right approach to strategy execution. They get bogged down in endless planning cycles, spreadsheets, and disconnected business tools that make it difficult to move the needle forward.

In this article, we’re going to share a proven framework and a tool to help you close the strategy execution gap and move your business forward.

What Is Strategy Execution?

Strategy execution is the process of making a company's strategic plan happen. This helps the company achieve what it wants to do. It means making sure everyone and everything works together to turn a company's vision and strategic objectives into reality.

This guide will show you the key steps to follow when you develop a successful strategy execution plan . At a high level, the execution journey encompasses the following:

You'll notice two key things about this strategy execution diagram:

It's circular

Strategy isn't a process. It’s a way of running your organization. It never ends and is 100% iterative .

It's holistic

Few organizations have tangible connections between their strategic plan and their processes for reporting , performance management, and rewarding employees. All your business processes need to work in harmony and be coherent if you're to be truly successful.

So, how do you successfully execute a strategy? Let's break down the individual phases of this diagram so you understand how to develop a business strategy execution plan:

6-Step Strategy Execution Framework

1. strategic planning.

Effective planning is crucial to the success of any strategy, as haphazard plans often lead to failure. Data suggests that as much as 83% of strategies fail due to faulty assumptions in the strategy formulation process.

To successfully execute a strategy, the planning process is the first and most important step. We've written extensively about how to write good strategic plans .

Your planning phase needs to address at least the following questions:

• What are you going to ultimately achieve? What are your company’s core business metrics ?
• What steps will you take to get there?
• What framework will you use to keep you focused and on track (think the Cascade Model, Balanced Scorecard , McKinsey's Three Horizons model , etc.)?
• How will you structure your strategy reporting ?
• What’s the frequency of your strategy reviews and meetings?
• What communications plan do you have in place for your strategy?
• Who will your strategy mentors or advisers be?

You have to make a plan before you execute the plan.

👉 Click here to get your free strategic planning template.

💡 Tip: Avoid paralysis by analysis. Staying too long in the planning phase sparks a strategy or execution debate. Shut the debate down and move to the next step.

2. Communication

According to an article by Harvard Business Review, “95 % of employees don’t understand or are unaware of their company’s strategy.”

Unfortunately, many organizations make the mistake of communicating their strategic plan only after it has been developed. You need to start the process of engaging your organization during the planning phase. And once it’s ready, expose it to your people because strategy presentations don’t work .

Rather than simply presenting the plan to your team, it's important to allow them to explore, discuss, and ask questions about it.

Two-way communication is crucial, with guidelines and policies flowing from the top while feedback and ideas come from the bottom. To achieve this, it's important to improve internal communication processes and establish mechanisms for feedback and input.

For example, you need to establish a mechanism for people to provide feedback about the strategy both at the start and as it rolls out. Here are some ways to facilitate this constructive communication:

• Hold regular team meetings to discuss progress and align goals with the strategic plan.
• Develop organizational transparency by sharing information with employees.
• Foster an open and collaborative culture where feedback is encouraged.
• Create regular formal and informal surveys and questionnaires to gather insights.

Don’t fall into the trap of doing a great job of communicating at the start, only to see efforts fall away as people go back to business as usual! Instead, expose your strategy to your people, keep it alive and up-to-date, and have your people engage with it regularly.

3. Goal setting and alignment

OK, so you've got a plan—the next step is to start creating tangible goals.

To achieve this, it's important to link every activity of your team to the strategic plan. It seems obvious, but many organizations create a plan, communicate it, and expect the rest to happen by magic. By ensuring that everyone in the team has ownership of their goals, you're moving the plan towards fruition.

However, simply creating goals is not enough. Alignment with company goals is essential to give structure to the execution of the plan. By aligning strategic initiatives with overarching business goals, you provide strategic clarity and enable your teams to focus on what matters the most to move the business forward. This, in turn, ensures that strategy execution is going in the right direction.

Through the goal-setting process , you can also reveal critical insights that help you refine your plan:

• Whether or not the plan is realistic given resource constraints.
• If you have the right people and skills to execute every aspect of the plan.
• How well people have understood your overarching business objectives.

Goal management becomes the bedrock for your ongoing tracking, reporting, and performance management. Each of these is a key element in a successful strategy execution.

4. Tracking and reporting

Tracking and reporting on strategic goals is crucial to establishing strategic control and driving progress, but it's easier said than done.

Cascade’s Strategy Report revealed that only 18% of team members review progress on weekly basis.

There are two key components to effective tracking and reporting.

Firstly, you need to ensure that everyone in your organization is regularly updating the progress on their own individual goals. This doesn't have to be arduous or time-consuming—a few minutes per month is usually enough. For example, in Cascade , you can set a cadence for people to update their goals before the review meeting. This helps you ensure that progress is consistently monitored and reported throughout the execution phase.

Secondly, updates should include a quantitative measure of progress against the goal ( KPIs ), as well as a short comment for context. Within Cascade, each team member can post progress updates and add comments in a text or video format so everyone involved understands the context.

Goals should never be seen as static elements of your strategic plan. It’s a given that sometimes you’ll need to change the deadline of a goal or even rewrite the goal entirely as your organization evolves. That’s fine, as long as visibility of those changes exists.

👉Here’s how Cascade can help you:

With Cascade's strategy reports, you can schedule automated progress reports so everyone has access to the latest information. You can customize the content of reports to suit the needs of different audiences. Plus, you can integrate Cascade with your business communication tools ( Outlook , Slack , Teams ) and send updates directly to your manager or the whole team.

5. Performance management

According to Gartner, 58% of businesses believe their performance management systems are not sufficient in monitoring the success of their strategies. When it comes to performance management, the majority of strategy implementation approaches start to unravel.

People generally view performance management (and reviews in general) as the sole domain of human resources. And you’d be hard-pressed to find actual users of the most common performance management systems that have positive things to say about the experience—or how it helps them better execute their company's strategy .

Performance management should be a natural extension of goal setting, which in turn is a natural extension of your strategic plan. It is, therefore, a critical part of your execution action plan.

As you go through the process of reviewing your people’s performance, you need to be able to measure how their contributions align with your company’s strategic goals.

Here’s how a performance management process can help you execute your plan:

• Individual goals and KPIs relate directly to the organization’s strategic plan
• It helps you review and reward people for their contributions to the overall strategy
• The system is simple to use and as close to “fun” as possible
• It’s social, transparent, fair, and well understood

Few off-the-shelf performance management systems tick those boxes, but Cascade facilitates the performance review processes and removes many of the friction points.

6. Rewarding

The natural conclusion of performance management is rewarding employees.

You've put so much effort into planning, communicating, and goal-setting —but don’t forget that the one thing that, ultimately, we all (almost all) work for is money.

The importance of connecting rewards back to strategy cannot be understated. This should be easy enough if you create a strategy with individual contributions in mind.

💡Here’s a tip: Don’t treat performance metrics as absolutes.

Achieving your goals in the short term shouldn’t come at the expense of the long term. Progress is just as important as meeting your goals. Don’t destroy your culture by rewarding teams and managers that achieve their goals at the cost of everything else.

Don't forget that rewarding doesn't just have to be monetary. It could be meaningful corporate gifts , travel perk, sending people to conferences, extending them additional leadership opportunities—anything at all that you're doing on a merit basis.

Build a culture of strategy execution by linking rewards to your strategic plan

Strategy Execution Best Practices

Now that you know the essential steps for effective strategy execution, here are the best practices and tips to ensure the success of your strategic initiatives.

1. Form a strategy execution team

Don't just rely on the same old senior leaders to execute strategy. Create a dream team of stakeholders responsible for reviewing past performance and identifying the information needed to create a good strategy. And most importantly, involve stakeholders who will be involved in the execution itself—they will be able to provide additional context to your leadership team. This way, you can plan, prioritize, and execute strategic goals with a dedicated and motivated team from the get-go.

2. Ensure organization-wide strategic alignment

In the realm of strategy, aligning corporate, business, functional, and operational levels is indispensable.

• Corporate strategy sets the vision. Ensure business-level strategies within units align directly, creating a clear link from corporate vision to daily operations.
• Business strategies refine the overarching vision. Alignment is key, ensuring actions in business units contribute directly to corporate objectives and maintain organizational focus.
• Functional strategies within business units, whether in marketing or finance, must align with business-level themes. Each function should enhance the overall corporate strategy, ensuring a unified approach.
• Operational strategies , the backbone of daily activities, must align with overarching goals, ensuring effective execution within business units.

Achieving organization-wide alignment at all strategy levels is key to successful execution. Helping your team members understand how their actions impact the organization’s bottom line will allow them to make better strategic decisions connected to your overarching strategy.

Cascade’s Alignment Maps & Relationships feature allows you to visualize how different organizational plans work together to form your strategy and map the dependencies that may lie along your journey.

3. Make adjustments when necessary

Don’t be afraid to change. The business environment is constantly evolving, so what worked before may not work now. Regularly reviewing and adjusting the strategy ensures you remain aligned with the company's goals and current market conditions. This is the only way to ensure you are going in the right direction and not wasting resources on dead-end strategies.  

📚 Recommended read: Strategic Control Simplified: A 6-Step Process And Tools

4. Use strategy execution software

Many companies still rely on spreadsheets and multiple disconnected tools to monitor their strategy execution. Unfortunately, this approach can lead to more problems than solutions.

Using spreadsheets as a way to track progress is time-consuming and error-prone, and it is hard to keep the data up-to-date in real-time. Moreover, spreadsheets do not provide a comprehensive overview of your performance, making it difficult to identify red flags and opportunities for improvement.

That’s why adopting a specific tool for strategic execution can become your biggest competitive advantage.

Master Strategy Execution With Cascade 🚀

Executing a successful strategy is vital for the growth and success of any organization, but it's easier said than done. With the six steps outlined in this article, you can create a clear roadmap for executing your strategy and ensure everyone in your organization is aligned and focused on business outcomes.

However, without the right tools and technology in place, your efforts may fall short. Here's where Cascade strategy execution software comes into play.

Cascade centralizes your strategy for better, accelerated decision-making rooted in data. With Cascade, you can easily align your team’s efforts with your organizational strategy, set and track goals , and measure progress. You get a centralized place that ensures top-to-bottom alignment and visibility, improved resource management, and fast adaptability.

Don't let complacency or disjointed processes hold you back from achieving your strategic goals.

Say goodbye to the outdated spreadsheet-based approach, and start using Cascade to achieve better results and make your strategy execution process more efficient and effective.

Watch here a product tour of Cascade today and see how it can help you achieve faster results from your strategy. With no sales contact unless you want to . ;)  

Popular articles

Viva Goals Vs. Cascade: Goal Management Vs. Strategy Execution

What Is A Maturity Model? Overview, Examples + Free Assessment

How To Implement The Balanced Scorecard Framework (With Examples)

The Best Management Reporting Software For Strategy Officers (2024 Guide)

Your toolkit for strategy success.

Build plans, manage results, & achieve more

Learn about the AchieveIt Difference vs other similar tools

We're more than just a software, we're a true partner

• Strategic Planning
• Business Transformation
• Enterprise PMO
• Project + Program Management
• Operational Planning + Execution
• Integrated Plan Management
• Federal Government
• State + Local Government
• Banks + Credit Unions
• Manufacturing

Best practices on strategy, planning, & execution

Real-world examples of organizations that have trusted AchieveIt

Ready-to-use templates to take planning to the next level

Research-driven guides to help your strategy excel

Pre-recorded & upcoming webinars on everything strategy & planning

• *NEW!* Podcast 🎙️

How to Tell if Your Plan Is Structured for Execution

RELATED TAGS:

best practices , plan execution

Have you ever created a plan that you didn’t correctly execute? Whether it was a strategic plan, a business plan or a personal goal, it may have been difficult to understand why this meticulously-made strategy with all its potential died in the execution process.

While there are many reasons for failure to execute — how you define success , time management or the planning fallacy, to name a few — one I’ve recently seen more and more is that the basic structure of the plan is weak.

As a leader in your organization, your plan can be built using various methodologies. Still, in the end, your idea has to address certain key elements to set your team up for a successful strategy execution plan.

In This Article

1. Planning For Plan’s Sake

2. a lack of fundamental understanding, 3. partial commitment, 4. the wrong people involved, 5. shelving plans, 6. no change, 7. the wrong people in leadership, 8. ignoring facts, 9. a lack of accountability, 10. unrealistic goals, 11. frequent changes, 12. undefined roles, 1. an inability to answer questions, 2. a lack of clear priorities, 3. failing to implement goals or tasks, how to ground your plan in strong structure, level one – organize your plan by theme, level two – define the goals you want to accomplish, level three – quantify objectives with metrics, level four – define your strategy or plan of attack, level five – list your tactical action items.

• Step One — Plan 

Step Two — Execute

Step three — monitor, step four — control, a plan by any other name would smell as sweet, about achieveit: ready to execute your plan, what causes a plan to fail.

A plan may fail for several reasons. It could be due to a lack of resources or low commitment from various team members. Many organizational leaders may develop a well-thought strategy but lack the understanding of how to implement their plan. Strategies often require determination, building the plan layer by layer until the targeted issue has been addressed.

Whatever the case, you’ll want to understand how your strategic plan may fail to develop successful team practices within your organization. These 12 potential causes may help you outline an issue and work to solve it as quickly as possible.

Sometimes, a team goes through the motions of planning without thinking about what they need to input to create an achievable goal. While many understand the purpose of a plan, they may not take the time to detail concrete tasks and steps or fail to identify the areas where they should prioritize work. As a result, some problems with the planning process may be addressed too late, causing a loss of funds, time or effort on the part of the organization.

Some organizations do not understand the environment they’re involved in. Or perhaps they lack focus on results and are instead caught up in the details of the process. When paying close attention to environmental changes, setting concrete priorities and pursuing achievable results, an organization is better equipped to execute its strategy.

Those leaders at the top of the chain, including business owners, presidents or CEOs, should prioritize the execution of their strategies and stay committed to improving their plans. However, even the best marketing plans may fail when strategies are not correctly implemented or team members are not committed to their tasks. Those not up to the challenge of solving current issues may miss the mark

From those executing your plan to those creating the plan in the first palace, those members must be involved from the beginning and see the plan through to fruition. If organizations fail to hire skilled workers, recruit knowledgeable employees or cannot find anyone to complete specialized projects, they may fail to execute the plan.

Even if you’ve written the strategic plan out already, shelving it can hurt the project in the long run. You want to ensure your team uses and reviews the plan rather than letting it sit on a shelf or in a drawer collecting dust.

When unable to change the company’s strategy or adapt to changes in the environment, it may be due to a lack of proper planning or a backup plan. Teams must be able to adjust to the current situation, and conduct thorough research and plans should their strategy fall through.

Those in management or leadership positions should be able to make tough decisions that others won’t. The right leaders advocate for the strategic plan successfully and ensure that it stays on track no matter what.

Your organization must look closely at marketplace facts and realities. Make sure you take potential risks seriously and plan for issues in advance. Even if project data is scarce, you’ll want to be sure you’re researching closely in the initial planning stages. Using the proper tools may help you locate the correct facts and modify your plans accordingly. Every project evolves as new information becomes available, and the right organization will be aware of this and work to rewrite its plans based on further information.

When teams lack accountability, it can hurt the process, especially after the plan has already been developed and funds have been acquired. There may be consequences when the organization cannot follow through on its original plan.

The strategic planning process should focus on as many goals, programs or objectives as possible. Fewer objectives mean more focused research and tasks, allowing members to achieve realistic goals that are concrete and measurable.

Too many changes to the plan may confuse others or create a plan that strays too far from the original. Sometimes, it could lead to internal issues or constraints on funds and resources.

In other cases, the roles within the organization may not be clear. Project managers or team members often drive immediate results and tasks, but you may not have communicated expectations for their performance measurements. Everyone on the team should clearly understand their exact role and how they contribute to the strategy. Ensure they know who to report to and where feedback will come from throughout the process.

3 Signs Your Plan Is Not Ready to Be Executed

If your plan is not yet ready to be executed, a few signs may tell you it’s time to give the strategy another look. Look at these three areas to decide where your plan can improve.

If you cannot answer important questions about your strategy, you may not be ready to execute your plan. Some questions include the following:

• Who: Who are your customers and competitors?
• How: How will you serve those affected? How do you plan to beat your competitors? How will you plan for potential issues or scenarios?
• What: What are your plans for building and maintaining your strategy? What potential scenarios can predict your future? What threats or opportunities exist for your organization?

Your company should be able to identify clear priorities and the value in each of your strategy’s areas. If you can’t outline key priorities or settle for vagueness, you are unlikely to get anything done.

Perhaps your team has clear priorities outlined but often fails to execute strategies or complete tasks. You may see some problem areas, such as:

• Neglect: Lack of resources or funds for the strategy, such as training, technology or staff.
• Unclear roles: Failing to help busy staff members or set clear roles and responsibilities.
• Lack of commitment: Giving up after experiencing issues.

Developing a plan should involve system design and conscious thought into how it cascades appropriately throughout the organization.

This is the only goal leaders building a business plan should aim for.

The words and language you use don’t really matter.

When I uncover this exact plan formulation problem with customers, I’m often asked for recommendations on a proper structure to enhance business plan execution. With so many prescribed methodologies and techniques available, what’s the best way to plan?

This may sound blasphemous to some in the strategy world, but I don’t care if you call something a goal or objective, strategy or initiative. As long as your organization knows what each term means , your plan will gain strength from the structure, not the words.

So, what do I recommend, then? I’ve outlined a basic 5-level structure below that will enable success.

Note that while there are levels to this plan, all five levels may not apply to every organization. You may find your company doesn’t need the broad-sweeping focus of level one, while others may not need the detail in level five. It’s about finding balance and the proper approach for your organization.

A theme is the most organizational level of your plan. Themes are used to divide the rest of the plan into organizational categories of the business.

For example, you might choose to segment your plan based on departments, areas of focus or geolocations. The theme you choose will give you those breakdowns.

Some smaller plans or organizations may not need this additional level.

Goals define what your business is striving to complete. Statements at this level are generally a sentence or two outlining where you want to be in the future.

Think of it as a miniature v ision statement . An example of a good goal would be “To become the top service provider in the Southeast” or “To be top five in patient satisfaction.”

Every type of plan – even plans for personal goals – must have these definitions of success.

Objectives are the quantitative outcomes that will help you reach your goals. Assign the KPIs, metrics or measurements to your goals that will signal when you’ve “become the top service provider in the southeast.”

As discussed previously , quantitative metrics are crucial to measuring your objectives’ success and plan. An objective shouldn’t be to implement, develop or deploy something – it should be to increase, decrease or maintain a specific figure.

Again, most plans will need this detail to know when you’ve reached your goals.

The strategies in your plan will be the adjustments you make to accomplish your objectives. These could be traditional business strategies, or in some organizations, they could be the initiatives and projects meant to steer the organization in the right direction.

The last level of the plan is your tactics. As expected, these are the smaller items that make up your strategies. They are the bite-sized pieces that allow you to realize your strategy. These could be referred to as milestones, deliverables or something else altogether – again, it’s not the vernacular that’s important. Whatever you call them – these are the action items your team can take to make your strategy happen.

How to Successfully Execute a Plan

After successfully grounding your plan, it’s time to execute your strategy. You’ll want to follow a few guidelines to succeed in your implementation.

Step One — Plan

You’ll want to plan for your execution before it’s even started. Ensure your strategy is good by reviewing your documentation and ensuring your plan answers crucial questions, such as why, who, what, when and how.

Address how you plan to achieve your goal and your steps so far. Detail your plan’s framework and reporting structure and how frequently you’ve conducted meetings and communicated with team members.

Execute your plan and ensure communication across every section of your team. Continue making status updates to check for possible issues, and respond quickly to current risks or problems that arise during the process. A well-designed project management plan may help you organize these areas better.

Again, communication should be your priority. You’ll want to be sure that the project is proceeding without interruptions. Monitor specific areas such as costs, scope, resources and funds scheduling to prevent or respond to possible problems.

If you do run into an issue, take corrective action to get your team back on track and keep the strategic plan running. As you improve your process, communication and status reporting will be more critical than ever. Corrective action may look like:

• Identifying issues or risks
• Extending schedules
• Reallocating team members
• Decreasing or increasing the budget
• Cutting down the scope

Remember, a strategic plan at its core will help your organization achieve its goals.

If you start to get hung up on “correctly” defining your future state during the plan creation process, remember that your plan is only a series of bets placed around the organization. From the bottom level up, you’re hoping the bets you cash in increase exponentially as you cascade up the plan. By accomplishing your tactics, you complete your strategies, move the needle in the right way on your objectives and position yourself to achieve your goal.

Since you are placing bets, giving yourself and your organization the best chance of winning makes sense. That’s why organizations create plans structured for execution and use AchieveIt to track and monitor appropriately.

Large organizations across various industries use AchieveIt to take their most important initiatives off the shelf and into reality. Some incredible ideas never come to fruition because of a lack of organized strategy courses, tracking or reporting. What do you need to successfully execute your plan?

• Organize your view: Understand the details of every initiative’s levels, from the enterprise to the individual in a real-time platform.
• Engage your team: An easy-to-use platform connects your organization. From executive leadership to the project teams, our program keeps everyone engaged and on track.
• Find your advantages: Use our premier platform, and draw on the experience and practices of our Execution Experts.

Whether you work for a corporation, health care system or federal government agency, AchieveIT can help organize your team with our Integrated Plan Management. Contact AchieveIt online to schedule a demo , or call us at 1-800-535-1559 and speak to a representative today.

Related Posts

Remote Management: How to Lead Distributed Teams Effectively

How to Build a Data-Driven Culture 

Executive Buy-In: How to Get Leadership Onboard with Your Strategy

Hear directly from our awesome customers

See first-hand why the world's best leaders use AchieveIt

See AchieveIt in action 

Stay in the know. Join our community of subscribers.

Subscribe for plan execution content sent directly to your inbox.

• Our Approach
• Strategic Planning Facilitation
• Strategy Implementation Support
• Aligned Strategy Course
• Successful Strategy Implementation Course
• Strategy and Leadership Community
• Strategy and Leadership Podcast
• SME Strategy on Youtube

3 Steps for Tracking, Monitoring & Implementing Your Strategic Plan

By Jenna Sedmak - May 08, 2019

So, you've completed your strategic planning session and crafted an impressive strategic plan for your organization. But what happens next? That's where the importance of tracking and monitoring your strategic plan comes into play. In this article, we'll explore the crucial steps to ensure your plan stays on track and leads you to success. We'll discuss the significance of establishing clear key performance indicators (KPIs) that align with your strategic priorities. By consistently monitoring and adjusting your strategy, you'll have the power to drive your organization forward and achieve its goals.

The strategic planning process doesn’t end once a document is created. To successfully execute your strategy across the organization, careful attention needs to be paid to the next steps: communication, implementation, monitoring, tracking, and leadership development. 

Download our free Strategic Planning Workbook and get the help you need to structure your strategic planning process

Communication to Develop Alignment:

If you’re working within a mid-sized or large organization, chances are that all employees could not be present at the planning meeting. Most likely, your executive leadership team members or potentially key departmental leaders participated in developing your plan. 

Prior to the strategy meeting, leaders can survey their teams to get information on their team’s perspective on various organizational strengths and weaknesses, goals and directions, and other topics to be addressed in the strategy session. Stakeholder engagement is key here, as it allows leaders to incorporate the perspectives of those who will be carrying out the operational tasks to achieve your organization's strategic objectives. Following the planning session and document creation, it’s important for leaders to make sure their team understands the organization’s strategic priorities, goals, and tactics and the reasons behind them.

If staff are engaged and feel heard during the pre-planning process, they are more likely to buy into the organizational strategy and to take ownership of their departmental and individual action items. By fostering communication and buy-in , your team will be more aligned, accountable, and better equipped to make decisions that serve your organization.

Starting the Strategic Plan Implementation Cycle:

Prior to implementing your strategic plan and moving forward with your action steps, it is critical that your strategic priority areas and goals support the vision . It is also critical that each department and individual understands which goals and tactics they are accountable to deliver on. Furthermore, it is important that they are aware of project expectations and understand what success looks like. 

Related Content: What is the Strategic Planning Process Strategic Problems and how to address them  

Monitoring & Tracking Your Plan:

To best understand where you’re succeeding and where you may be falling behind, strategic plans need to be continually monitored, and goals should be regularly tracked. There are multiple ways to track progress toward your strategic goals, including spreadsheets, software, or an office whiteboard. They can be as simple or complex as you desire, but the important thing is that everyone is using the same method and frequency for tracking. 

>> Watch below : How to use strategy dashboards for tracking & monitoring your plan:

If you decide to track your strategic planning progress with a software, we recommend using a dedicated strategic planning software, like Cascade Strategy , that has been specificall y develope d for this purpose.  With various features such as task management, GANTT charts, and various metric functions, you can quickly see where you’re meeting or exceeding goals and where you might be falling short.

> Read more : You Need These 5 Elements for Successful Strategy Implementation

In addition to monitoring your plan regularly, it is important to continually develop your leadership team's skills in critical areas such as project management, values and behavior alignment, change management, and communication. Additionally quarterly strategy reviews are a great way to make adjustments to your strategy on an ongoing basis so that you can maximize what is working and address any areas of weakness throughout the year.

Within our three levels of strategy implementation programs , our strategic planning facilitators work with teams to strengthen their leadership skills and capacities so that they are better equipped to execute their strategic plans. 

Our readers' favourite posts

Subscribe to our bi-weekly newsletter: leaders digest, quick links.

• Podcast (Spotify)
• Speaker & Media
• Alignment Book
• Privacy Policy

Free Resources

• Strategic planning session agenda (Sample)
• Strategic plan template
• How to create a strategic plan (Start here)
• Weekly Strategy Tips
• Non profit program

Products and Services

• Strategic Planning Facilitator
• Strategy Implementation Consulting
• Strategic Planning Course
• 1-855-895-5446

Copyright © 2011-2023 SME Strategy Consulting | Strategic Planning Facilitator + Strategy Implementation Consulting. All rights reserved.

• How to Plan, Execute and Monitor a Project Effectively

Featured in:

Using a systematic methodology to approach projects is a key to successful execution. Often planning or monitoring are put into the background in the rush to move ahead with execution or reporting results. Both are a fatal mistake. If the necessary time is taken to plan out all aspects of the project, it saves much time and many resources later on in terms of a failed or less than expected project result.

© Shutterstock.com | PORTRAIT IMAGES ASIA BY NONWARIT

In this article, we look at all you need to know for 1) planning projects, 2) monitoring projects, and 3) executing projects successfully.

PLANNING PROJECTS

Identify project goals.

To begin planning for projects , it is necessary to identify what is it that you are trying to achieve. This identification of goals helps drive the project down a clear path. To reach this end, a project team needs to know:

1. Who are the stakeholders?

To reach that end, the first step is to correctly identify who the stakeholders are. A successful project is one where all important stakeholder needs are met. Stakeholders to a project may be anyone who is directly or indirectly affected by the project. Identifying the right set of stakeholders may need some careful research. Some possible stakeholders include the end user who receives the output, a customer who receives a finished product, the project manager, his team and a project sponsor or champion.

2. What are their needs?

With a list of stakeholders in hand, you can now work on identifying their needs. These can be clearly stated and easy to see or implicit and harder to pinpoint. The most relevant information can be gathered through interviewing the stakeholders. It is important that a seasoned professional conduct these interviews as time needs to be taken to draw out the real issues. Stakeholders may have some needs that cannot be met effectively and these need to be recorded separately to avoid misplaced effort.

3. What are the priorities?

As mentioned briefly in the previous step, not all needs identified can be met effectively. Some cannot lead to actionable outcomes, some may not make business sense, and meeting yet others may not end up creating value for the stakeholders. This makes it extremely important to prioritize all the information gathered till this point

4. How do these convert to measurable goals?

A prioritized list of goals can now be turned into easy to measure goals. One framework for this is to employ the SMART principle. Goals should be specific, measurable, achievable, relevant and time-bound. Formulating goals this way helps to measure them for completion and success.

These goals can now be put down into the project plan along with a mention of the stakeholders and their needs.

Identify Project Deliverables

Almost as important as the goal identification is the breakdown into deliverables. For each goal, it is vital to understand and identify how it translates into outcomes. It needs to be clearly stated when each deliverable is due and how it will be achieved.

These deliverable can now be added to the project plan preferable with close to accurate delivery dates as well as acceptable levels of delay.

Establish Project Schedule

Further breakdown is needed at this point. Each deliverable needs to be converted into tasks that need to be performed in order to produce required results. Here, the number of man hours per task needs to be calculated and resources need to be assigned. This includes both people and other resources. With this calculation, there may be a need to update the project timelines specified previously to present a more realistic image. If there is a drastic difference in delivery date expectations from project head or sponsor and the actuals calculated, then there may be a need to either renegotiate the deadline, increase resources or reduce the scope of the project.

Create Supporting Plans

With the basic plan in place, the team can now work on setting into place any required supporting plans. These can include

– Human Resource Plan

This plan needs to record in detail, the names of all the people and organizations involved in carrying out the project. Against each name mention their roles and responsibility. Also mention how long they will be working on the project and how resources will be hired or selected to work on the project.

– Communication Plan

A communications matrix needs to be put into place identifying who needs to be privy to project updates and how they will be provided the same. This means identifying a common format for reporting and establishing reporting frequency.

– Risk Mitigation

It is easy to overlook a risk mitigation plan but it is a vital part of effective project management. It is important to identify all possible risks to the project and have a plan in place to address these. Project risks can include unexpected budget cuts, an inefficient flow of required information, suddenly raised costs or an incorrect estimation of resources needed, incorrect understanding of stakeholder requirements or changing requirements among others.

Using a simple log, you can identify each risk and outline what will be done to prevent it and what will be done if it ends up happening. This log can be updated on a regular basis.

Project Planning Overview

[slideshare id=25701963&doc=projectplanningandprojectworkplan-130828212658-phpapp02&w=710&h=400]

EXECUTING PROJECTS

The execution phase turns an idea on paper into a reality. A thorough and detailed plan will mean that a solid foundation has been set for successful execution .

3 Must Haves For Effective Execution

1. the right team.

A high performing team with the right mix of people working to their strengths is key to project success. Throughout the process, ensure that team motivation is high, communication is flowing freely both upwards and downwards and there is a sense of ownership within the team.

2. Strong and Timely Decision Making

Sometimes tough decisions need to be taken at delicate stages of the project’s progress. Leaders need to be on top of progress and be willing to make difficult decisions at the right time to either steer the project towards the right path or in a drastic scenario, shut it down before further loss of resources is suffered

3. Open and Clear Communication

All through the project, there needs to be an open line up and down the project team. An effective reporting system can help keep top management abreast of ground realities to help make the right decisions. Similarly, updates on high level achievements to the team can help keep morale high.

Focus on People for Successful Execution

Traditional project management suffers the danger of becoming too bureaucratic and focused on the end game, with very little effort being put into the very teams that are needed to achieve goals. Perceived softer issues such as trust within teams, morale, an ownership for the project, a sense of belonging and employee engagement are often neglected or treated as unimportant. Usually, it is so because project leaders find these issues harder to quantify and therefore, plan for. Research has shown that unmet emotional needs can lead to below expected performance, thereby affecting project execution. An engaged team can lead to optimized performance:

Engaging the Project team

An engaged team knows its goals clearly and is able to achieve them. They are also able make meaningful contributions to project outcomes and work well as a team. Through a participative environment, teams can learn and grow.

Engaging Stakeholders

An engaged set of stakeholders are confident that the project team can achieve the task at hand. They feel that their best interests are being considered and display passion for the project.

Optimizing performance

By engaging stakeholders and creating an engaged team, there is a higher likelihood of successful project execution within project guidelines.

MONITORING PROJECTS

An effective monitoring and measurement system throughout the project execution can make the difference between a successful project and a failure.

6 steps to ensure effective project monitoring

1. monitor project throughout.

Monitoring is only useful if it is built into the execution phase at the beginning. There is no point to a monitoring activity if all the work has been completed already and all the resources wasted. A system needs to be set in place for this during the planning phase and followed up on strongly.

2. Decide What to measure

It is vital to identify which indicators are to be measured. These should be noted in the planning document and communicated with all team members and stakeholders. Acceptable levels of performance should also be identified, so that it is clearly understood when a red flag needs to be raised. A frequency of reporting as well as a format needs to be decided upon and clearly communicated to all those who will be expected to issue reports.

3. Gather the right data

If the monitoring framework if clearly defined, then there may not be any need for huge amounts of data collection. Too much irrelevant data will only create confusion and add no value. Quality of data to ensure relevance needs to be the focus of any data collection efforts.

4. Select appropriate tools

Decide initially all acceptable methods of data collection. A wide variety can be used including questionnaires, surveys and focus groups.

5. Assign monitoring responsibility

Unless someone is assigned the task of monitoring specifically, it is an activity that can slip unnoticed into cracks. It is pertinent to assign a specific person for each type of reporting or monitoring activity and to build this task into their own personal deliverables. For this use project management software or task management apps .

6. Identify who to report to

Those tagged with reporting should be told clearly who they are to report to. Reports are tailored according to the management level they are being reviewed by. A senior management team may only need high level timelines, results and resource consumption data, while a middle management group or project team itself may need minute details of each task achieved or delayed.

Monitoring Tools and Techniques

Tracking quantitative metrics.

Much of project monitoring is focused on hard facts such as the money being spent, man hours being used up etc. These are key metrics and need to be tracked in a systematic and effective manner, providing a ready snapshot of where the project is at any point in time. Some of the ways in which projects can be tracked are:

1. Spreadsheets

Spreadsheets are a good way of tracking key metrics. All relevant data can be listed out with values against each important metric. This includes timelines with acceptable delays, projected budgets with expected increases, projected man hours with expected increases, team members and their backups in case of any emergency

2. Project Applications

If the project being worked on is very large with complex interrelationships and many sub projects, then a spreadsheet may not be sophisticated enough to offer streamlined tracking and reporting. In such cases, a tracking application like MS Project is the right way to go. You can also use project management software .

Tracking Qualitative Metrics

Apart from quantitative metrics, an equal monitoring focus needs to be given to the qualitative side. Are stakeholders happy with the progress? Are their expectations being met? Is the project meeting the needs it set out to? Some methods to achieve this are:

1. Questionnaires or Surveys

This method is simple to create and get results on. A large number of people across various cross sections of stakeholders can be reached relatively easily and it is less of a hassle for them to respond as well. People can chose to withhold their information while still participating. The information needs to be analyzed critically once data is received.

2. Feedback Forms

Feedback forms can be distributed and completed at a time where users may have just used a product or been indirect contact with you or your team. There may have been an event or a sample testing.

3. Interviews

These require a lot more preparation and time than the other methods mentioned here. The interviewer needs to have questions prepared and should be able to probe for relevant information. Though most effective in person, these can also be conducted over the phone.

4. Focus Groups

Another way of gathering first-hand information is to put together a good cross section of stakeholders into a room together and allow them to answer some pointed questions but largely able to speak freely and ignite new ideas through each other. Often this can lead to better results. A group conversation can tend to go off track so it is important for the facilitator to steer the conversation in the right direction and also to allow all opinions to be voiced freely.

The Importance of Monitoring

The following reasons make a compelling business case for proper planned monitoring

1. Accountability

If a project has received funding from a stakeholder they will expect reports on the effective utilization of these resources. Regular monitoring will ensure that this information is present whenever it may be demanded or required.

2. Future Funding

If a project team or an organization gains a reputation for lack of transparency or discipline in utilizing resources, it may become impossible to secure resources for an upcoming project. On the other hand, a less effective team with clear reporting and transparent operation may seem like a safer option to an investor.

3. Compare Actual vs Planned Progress

Without an actual planned progression through a process to compare with, there may be a tendency to forget what the goals to be achieved were. Through regular monitoring and reporting, you can keep a track what was to be achieved and what has been allowing any relevant course corrections or explanations to stakeholders.

4. Learn from Experience

Through effective monitoring systems, successful and unsuccessful processes can be identified and separated allowing creation of best practices and benchmarks to be followed during future projects.

5. Team Engagement

When a team can see solid evidence of the difference their effort has made, they are more engaged and morale and ownership remain high. It may encourage them to take initiatives to further improve work and their own performance as well as think creatively for the benefit of the project.

An Overview on Project Management

[slideshare id=24470138&doc=projectmanagement-130721095616-phpapp01&w=710&h=400]

Comments are closed.

Related posts

Rebuy | inteview with founder & ceo lawrence leuschner.

Entrepreneurial Insights / Cleverism team interviewed the founder & CEO of reBuy - Lawrence …

Proven Strategies for Targeting Passive Job Seekers

Recruiting the right talent to your company is not an easy task. It can be made even harder if you …

SEEDMATCH | Raising Funds by Crowd and Getting Customer Feedback

Seedmatch is the biggest crowdfunding platform in Germany. The website is growing swiftly and in …

408,000 + job opportunities

Not yet a member? Sign Up

join cleverism

Find your dream job. Get on promotion fasstrack and increase tour lifetime salary.

Post your jobs & get access to millions of ambitious, well-educated talents that are going the extra mile.

First name*

Company name*

Company Website*

E-mail (work)*

Login or Register

Password reset instructions will be sent to your E-mail.

• Call our start up team 877-462-6366

Small Business Blog

• LLC Services

Developing and Executing a Business Plan

Estimated reading time: 4 minutes

Developing and executing a business plan is a crucial step in starting and running a successful business. A well-written and carefully executed business plan serves as a roadmap for the company’s success, providing a clear direction for its growth and development. In this blog post, we’ll discuss the key elements of a business plan and how to execute it effectively.

Developing your Business

• Executive Summary: The executive summary is the first section of the business plan, and it provides an overview of the entire document. This section should include a brief summary of the company’s mission statement, product or service offerings, target market, and financial projections.
• Company Description: The company description provides a detailed explanation of the company’s history, ownership structure, legal structure, and the products or services it offers. This section should also discuss the company’s unique selling proposition, or what sets it apart from competitors.
• Market Analysis: The market analysis section should provide an in-depth analysis of the industry the company operates in, including information on competitors, target market, and market trends. This section should also discuss the company’s marketing strategy and how it plans to reach its target audience.
• Product or Service Line: This section should provide a detailed description of the company’s product or service offerings, including information on pricing, production, and distribution. This section should also discuss the company’s competitive advantages and how it plans to differentiate itself from competitors.
• Marketing and Sales: The marketing and sales section should provide a detailed explanation of the company’s sales strategy, including information on pricing, promotion, and distribution. This section should also discuss the company’s target audience and how it plans to reach them through advertising and other promotional activities.
• Financial Projections: The financial projections section should provide a detailed overview of the company’s financials, including projected revenue, expenses, and profits. This section should also include a discussion of the company’s funding needs and how it plans to obtain funding.

Executing a Business Plan

Once a business plan is developed, it’s time to execute it. Here are some steps to follow:

• Set Goals and Objectives The first step in executing a business plan is to set clear and measurable goals and objectives. These goals should be specific, achievable, and relevant to the company’s overall mission.
• Create an Action Plan An action plan should be created to outline the steps needed to achieve the company’s goals and objectives. This plan should include specific timelines, resources needed, and individuals responsible for each task.
• Monitor Progress It’s important to regularly monitor progress and make adjustments as needed. This involves regularly reviewing financial statements, sales reports, and other key performance indicators to ensure the company is on track to meet its goals.
• Seek Feedback Feedback from customers, employees, and other stakeholders is critical for the success of any business. Regularly seek feedback and use it to make improvements and adjustments to the company’s products, services, and processes.

Developing and executing a business plan is critical for the success of any business. A well-written and carefully executed business plan provides a roadmap for the company’s growth and development, helping it to achieve its goals and objectives. By following the steps outlined in this blog post, businesses can develop and execute an effective business plan that sets them up for success.

Get started by forming your business online.  Then we can work with you to establish and build your business credit.  We’re here to answer your questions and guide your business to success.  Form your free LLC today!

• The Power of Trademarking
• 3 Simple Ways to Register A Business Name
• Naming an LLC
• Is a Certificate of Authority Important for your Business?
• How to Get a Business Loan

Have a question?

24/7 live us support.

(877) 462-6366 [email protected]

Recent articles

Unveiling the corporate transparency act: navigating the landscape of beneficial ownership information (boi) reporting, 66% of customers expect a prompt response: what happens when they don’t get it, content marketing: why it’s worth your time and how to get started, start 2024 with a motivational meeting, how to start an llc in florida: step by step, learn more about llc formation in your state.

• Business Essentials
• Leadership & Management
• Credential of Leadership, Impact, and Management in Business (CLIMB)
• Entrepreneurship & Innovation
• Digital Transformation
• Finance & Accounting
• Business in Society
• For Organizations
• Support Portal
• Media Coverage
• Founding Donors
• Leadership Team

• Harvard Business School →
• HBS Online →
• Business Insights →

Business Insights

Harvard Business School Online's Business Insights Blog provides the career insights you need to achieve your goals and gain confidence in your business skills.

• Career Development
• Communication
• Decision-Making
• Earning Your MBA
• Negotiation
• News & Events
• Productivity
• Staff Spotlight
• Student Profiles
• Work-Life Balance
• AI Essentials for Business
• Alternative Investments
• Business Analytics
• Business Strategy
• Business and Climate Change
• Design Thinking and Innovation
• Digital Marketing Strategy
• Disruptive Strategy
• Economics for Managers
• Entrepreneurship Essentials
• Financial Accounting
• Global Business
• Launching Tech Ventures
• Leadership Principles
• Leadership, Ethics, and Corporate Accountability
• Leading Change and Organizational Renewal
• Leading with Finance
• Management Essentials
• Negotiation Mastery
• Organizational Leadership
• Power and Influence for Positive Impact
• Strategy Execution
• Sustainable Business Strategy
• Sustainable Investing
• Winning with Digital Platforms

How to Measure Your Business Strategy's Success

• 04 Jan 2024

Measuring your business strategy’s success is vital to strategy execution .

Despite its importance, research by SurveyMonkey shows that only 35 percent of business owners set benchmarks or goals. Among those who set them, 90 percent consider themselves successful. Of those who don't, only 71 percent report the same.

If you want to achieve organizational objectives and avoid common strategic planning pitfalls , here’s why it’s important to evaluate your strategy.

Access your free e-book today.

Why Is It Important to Evaluate Your Strategy?

Evaluating your strategy can help your organization achieve its goals and objectives while highlighting necessary adjustments for long-term success.

Its benefits include:

• Ensuring organizational alignment
• Establishing accountability
• Optimizing operations

Assessing your business strategy is an ongoing process. To ensure it’s set up to succeed, you must evaluate it pre-, during, and post-implementation. Here’s how to do so.

How to Measure Your Strategy’s Success

1. revisit goals and objectives.

Every business strategy needs clearly defined performance goals. Without them, it can be difficult to identify harmful deviations, streamline the execution process, and recognize achievements.

After establishing goals and objectives, plan to revisit them during and after implementing your strategy. According to Harvard Business School Professor Robert Simons in the online course Strategy Execution , the best way to do so is by comparing them to critical performance variables —the factors you must achieve or implement to make your strategy succeed.

For example, if your company’s value comes from customer loyalty, one of your critical performance variables could be customer satisfaction. When customers no longer receive value from your products or services, that could impact your company’s bottom line.

The best way to verify critical performance variables is by analyzing them against your strategy map —a visual tool outlining the cause-and-effect relationships underpinning your strategy. Those variables should also receive high importance on your balanced scorecard , which translates your strategy into goals and objectives.

By taking these steps, you can identify performance measures worth reviewing.

2. Review Measures

Evaluating business performance requires measures —quantitative values you can scale and use for comparison—and they must tell the right story.

According to Strategy Execution , you should ask three questions when reviewing measures:

• Do they align with my strategy?
• Are they objective, complete, and responsive?
• Do they link to economic value?

For example, if you want to improve your company’s brand loyalty, metrics worth monitoring include the number of new customers, average purchases per customer, and the number of social media followers.

A balanced scorecard can provide a holistic view of your business performance measures—ensuring all your employees are on the same page.

“You can have the best strategy in the world,” Simons says in Strategy Execution . “But at the end of the day, what everyone pays attention to is what they're measured on. So, you need to be sure that measures throughout the business reflect your strategy, so that every employee will devote their efforts to implementing that strategy.”

3. Supervise Monitoring Systems

While balanced scorecards are powerful diagnostic control systems —formal information systems used to monitor organizational outcomes—they don’t provide visibility into all measures of success. That’s why you need additional systems to streamline strategic plans’ evaluation.

For example, you can use customer relationship management systems’ analytics tools to generate reports that align with business goals and objectives. To boost customer loyalty, you can automate reports on:

• Purchasing patterns
• Purchase frequency
• Customer survey scores

“But to ensure that these systems are effective, you need to invest considerable time and attention in their design,” Simons says in Strategy Execution . “You must not only spend time negotiating and setting goals—as we've discussed—you must also design measures for these goals and then align performance incentives.”

4. Talk to Employees

Employee feedback and buy-in are other useful tools for measuring success.

For example, creative software company Adobe is known for its loyal employee base. That was put to the test when the company shifted to a subscription-based model, launching Adobe Creative Cloud .

Company leaders briefed employees on strategic changes and how they provided value to customers. They also encouraged employees to contribute ideas and feedback throughout the transition. With minimal internal pushback and a boost in collaboration, Adobe knew its strategy would succeed and ensure relevance in a constantly evolving market.

“The best businesses motivate their employees to be creative, entrepreneurial, and willing to work with others to find customer solutions,” Simons says in Strategy Execution .

Related: How to Create a Culture of Strategy Execution

5. Reach Out to Customers

Customer feedback is a key measure of your strategy’s success. According to a recent report by Zendesk , 73 percent of business leaders believe customer service directly links with business performance—with 64 percent attributing customer service to positive business growth.

Feedback can also reflect how well initiatives align with customer needs and expectations when it comes to value creation , making it important to consistently seek out ways to monitor attitudes toward your company and its strategy.

In Strategy Execution , Tom Siebel, CEO of C3 AI, shares his thoughts on customer satisfaction when measuring success.

“Everything that's important to the business, we have a KPI and we measure it,” Siebel says. “And what could be more important than customer satisfaction?”

Unlike your company’s reputation, measuring customer satisfaction has a more personal touch in identifying what they love and how to capitalize on it.

“We do anonymous customer satisfaction surveys every quarter to see how we're measuring up to our customer expectations,” Siebel says in the course.

Your customer satisfaction measures should reflect your desired market position and focus on creating additional value. When customers are happy, profit margins tend to rise, highlighting why this should be the final step in measuring your strategy’s success.

Success Is within Reach

Measuring your strategy’s success is a continuous process that requires understanding your company’s goals and objectives.

By taking an online strategy course , you can develop strategy execution skills to measure performance effectively. Strategy Execution provides an interactive learning experience featuring organizational leaders who share their successes and failures to help you apply course concepts and excel in your career.

Want to learn how to measure your strategy’s success? Explore Strategy Execution —one of our online strategy courses —and download our free strategy e-book to begin your journey toward implementing strategy successfully.

About the Author

How to Monitor & Control Your Business Plan

• Small Business
• Business Planning & Strategy
• Business Plans
• ')" data-event="social share" data-info="Pinterest" aria-label="Share on Pinterest">
• ')" data-event="social share" data-info="Reddit" aria-label="Share on Reddit">
• ')" data-event="social share" data-info="Flipboard" aria-label="Share on Flipboard">

The Advantages of Single Business Strategy

How can a company keep its strategic plan dynamic, what are the benefits of preparing a business plan.

• Business Planning & Analysis
• What Does "Abridged" Mean on a Business Plan?

A business plan is a comprehensive document that outlines key elements of how you operate your business. The plan typically includes an assessment of your market and your competition, your operating budget breakdown, and your short and long-term business goals. While many business owners write a marketing plan to obtain business loans, the plan can be a useful tool for monitoring and controlling ongoing operations.

Create Plan Review Dates

Business plans should be reviewed on a regular basis, especially if a business is expanding quickly, experiencing cash flow problems, adding new products or services or reaching into new markets. Align your review dates with the short-term and long-term goals outlined in the original business plan and conduct a comparative analysis. Depending on your business, this could be a monthly, quarterly or annual review.

Develop a Tracking System

If your business plan contains measurable goals, develop a tracking system to assess where you stand regularly. For example, if the plan calls for earning a certain amount of revenue per month, track revenue on a daily or weekly budget to monitor and control the process. This approach allows you to tweak the system if your numbers are far off the mark. Monitor key elements frequently. Key elements of the business plan include research on your market and competition as well as revenue projections. Each of these elements is subject to rapid change, and you should remain aware of where you stand with regard to these issues.

Coordinate Business and Marketing Plans

Business and marketing plans overlap in several ways, so reviewing both documents simultaneously on a regular basis helps you monitor and control the goals and measurements of each plan. If an element of one plan changes dramatically, evaluate the impact it has on the other plan. For example, if your marketing plan calls for you to launch a major media campaign, but your business plan’s revenue projections are weak, revise each to stay on track.

Make Changes When Necessary

A business plan is not an unchangeable document. Consider it a fluid plan that can be tweaked and updated as your business changes and grows. Don’t cling to elements of your plan that are outdated or no longer useful. For example, if part of your five-year plan includes moving to a larger facility, but you find after five years that your small facility works just fine, revise and update the business plan. Continually revise your plan so that you are always looking ahead in one, three and five-year increments, basing future projections on past performance.

• U.S. Small Business Administration: How to Write a Business Plan
• U.S. Small Business Administration: Essential Elements of a Good Business Plan
• U.S. Small Business Administration: Making Your Business Plan Work for You

Lisa McQuerrey has been a business writer since 1987. In 1994, she launched a full-service marketing and communications firm. McQuerrey's work has garnered awards from the U.S. Small Business Administration, the International Association of Business Communicators and the Associated Press. She is also the author of several nonfiction trade publications, and, in 2012, had her first young-adult novel published by Glass Page Books.

Related Articles

Difference between business planning and annual work plans, what is the difference between a marketing plan & a corporate plan, how to analyze & evaluate segment performance, what is a short-term marketing plan, what are the main purposes of a business plan, what is the difference between a marketing & business plan, what is earned revenue in an operating budget, how to evaluate strategic management, what is the difference between strategic planning & strategic implementation, most popular.

• 1 Difference Between Business Planning and Annual Work Plans
• 2 What Is the Difference Between a Marketing Plan & a Corporate Plan?
• 3 How to Analyze & Evaluate Segment Performance
• 4 What Is a Short-Term Marketing Plan?

The Business Planning Process: 6 Steps To Creating a New Plan

In this article, we will define and explain the basic business planning process to help your business move in the right direction.

What is Business Planning?

Business planning is the process whereby an organization’s leaders figure out the best roadmap for growth and document their plan for success.

The business planning process includes diagnosing the company’s internal strengths and weaknesses, improving its efficiency, working out how it will compete against rival firms in the future, and setting milestones for progress so they can be measured.

The process includes writing a new business plan. What is a business plan? It is a written document that provides an outline and resources needed to achieve success. Whether you are writing your plan from scratch, from a simple business plan template , or working with an experienced business plan consultant or writer, business planning for startups, small businesses, and existing companies is the same.

Finish Your Business Plan Today!

The best business planning process is to use our business plan template to streamline the creation of your plan: Download Growthink’s Ultimate Business Plan Template and finish your business plan & financial model in hours.

The Better Business Planning Process

The business plan process includes 6 steps as follows:

• Do Your Research
• Calculate Your Financial Forecast
• Draft Your Plan
• Revise & Proofread
• Nail the Business Plan Presentation

We’ve provided more detail for each of these key business plan steps below.

1. Do Your Research

Conduct detailed research into the industry, target market, existing customer base,  competitors, and costs of the business begins the process. Consider each new step a new project that requires project planning and execution. You may ask yourself the following questions:

• What are your business goals?
• What is the current state of your business?
• What are the current industry trends?
• What is your competition doing?

There are a variety of resources needed, ranging from databases and articles to direct interviews with other entrepreneurs, potential customers, or industry experts. The information gathered during this process should be documented and organized carefully, including the source as there is a need to cite sources within your business plan.

You may also want to complete a SWOT Analysis for your own business to identify your strengths, weaknesses, opportunities, and potential risks as this will help you develop your strategies to highlight your competitive advantage.

2. Strategize

Now, you will use the research to determine the best strategy for your business. You may choose to develop new strategies or refine existing strategies that have demonstrated success in the industry. Pulling the best practices of the industry provides a foundation, but then you should expand on the different activities that focus on your competitive advantage.

This step of the planning process may include formulating a vision for the company’s future, which can be done by conducting intensive customer interviews and understanding their motivations for purchasing goods and services of interest. Dig deeper into decisions on an appropriate marketing plan, operational processes to execute your plan, and human resources required for the first five years of the company’s life.

3. Calculate Your Financial Forecast

All of the activities you choose for your strategy come at some cost and, hopefully, lead to some revenues. Sketch out the financial situation by looking at whether you can expect revenues to cover all costs and leave room for profit in the long run.

Begin to insert your financial assumptions and startup costs into a financial model which can produce a first-year cash flow statement for you, giving you the best sense of the cash you will need on hand to fund your early operations.

A full set of financial statements provides the details about the company’s operations and performance, including its expenses and profits by accounting period (quarterly or year-to-date). Financial statements also provide a snapshot of the company’s current financial position, including its assets and liabilities.

This is one of the most valued aspects of any business plan as it provides a straightforward summary of what a company does with its money, or how it grows from initial investment to become profitable.

4. Draft Your Plan

With financials more or less settled and a strategy decided, it is time to draft through the narrative of each component of your business plan . With the background work you have completed, the drafting itself should be a relatively painless process.

If you have trouble writing convincing prose, this is a time to seek the help of an experienced business plan writer who can put together the plan from this point.

5. Revise & Proofread

Revisit the entire plan to look for any ideas or wording that may be confusing, redundant, or irrelevant to the points you are making within the plan. You may want to work with other management team members in your business who are familiar with the company’s operations or marketing plan in order to fine-tune the plan.

Finally, proofread thoroughly for spelling, grammar, and formatting, enlisting the help of others to act as additional sets of eyes. You may begin to experience burnout from working on the plan for so long and have a need to set it aside for a bit to look at it again with fresh eyes.

6. Nail the Business Plan Presentation

The presentation of the business plan should succinctly highlight the key points outlined above and include additional material that would be helpful to potential investors such as financial information, resumes of key employees, or samples of marketing materials. It can also be beneficial to provide a report on past sales or financial performance and what the business has done to bring it back into positive territory.

Business Planning Process Conclusion

Every entrepreneur dreams of the day their business becomes wildly successful.

But what does that really mean? How do you know whether your idea is worth pursuing?

And how do you stay motivated when things are not going as planned? The answers to these questions can be found in your business plan. This document helps entrepreneurs make better decisions and avoid common pitfalls along the way. ​

Business plans are dynamic documents that can be revised and presented to different audiences throughout the course of a company’s life. For example, a business may have one plan for its initial investment proposal, another which focuses more on milestones and objectives for the first several years in existence, and yet one more which is used specifically when raising funds.

Business plans are a critical first step for any company looking to attract investors or receive grant money, as they allow a new organization to better convey its potential and business goals to those able to provide financial resources.

How to Finish Your Business Plan in 1 Day!

Don’t you wish there was a faster, easier way to finish your business plan?

With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

Click here to finish your business plan today.

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.

Click here to see how Growthink business plan consultants can create your business plan for you.

Other Helpful Business Plan Articles & Templates

PWW Insights and Intelligence Blog

Published: July 18, 2019

Let’s cut to the chase — over half of all enterprise strategic plans fail the same year they’re born.

Downstream risks aren’t accounted for, objectives go unmonitored, budgets are misappropriated and accountability is left static. The result is an organization acting as its own worst enemy, unable to execute on business opportunities before and while they strike.

However, you don’t need more apocalyptic reminders aggrandizing what’s risked without agile business strategy execution. Instead, org visionaries need clear, actionable templates that translate business planning concepts to reality — yet can adapt when reality decides to keep you on your toes.

That fluid implementation template starts here, with actionable steps, tools and insights into successful business planning and execution.

The True Objective of Continuous Business Planning

Once institutionalized, continuous business planning enables organizations to quickly and strategically act on business growth opportunities — even ones it didn’t forecast.

True continuous strategic business planning also means all personnel, at all levels, across all departments, are familiar with the strategic business plan. They also know what goals are prioritized, their execution timelines, implementation stages and, most importantly, what they as staff are individually responsible for every day that contributes to that goal becoming tangible change.

Enterprise-wide tools — namely, strategy management or resource planning software — and workflows are available to temperature-check organizational processes continually with goals. Data measures the effectiveness of goal execution. As a result, the entire organization has clear visibility into the business plan as its happening, in-situ, regardless of time or place. Or, put plainly, your organization can now recognize what’s working and what isn’t , then make the appropriate shifts in plan execution — all ensuring you’re not another business whose strategic plan failed before it began.

Strategic Planning Business Models

Successful business plans are often tied to a strategy planning framework. These frameworks are a competitive and preemptive assessment of your organization’s readiness for strategic planning, delivering historical and market data informing your current strategic positions.

Enacting a strategy planning model at your organization delivers data-driven, researched foresight into the internal and external variables affecting the outcomes of your ideal business plan. Reviewing such data ahead of time prevents risky business strategies from being implemented without proper parameters — or launching the wrong strategy altogether.

Your organization can use several business strategy planning frameworks to begin shaping appropriate business plan opportunities.

1. Transformational Business Modeling

Business models are used to document and share the fundamental operations of an organization — its products, services, customer base, finances, revenue streams and more.

However, few organizations leverage the same cohesive documentation to communicate its vision for a business plan. Instead, they rely on ad-hoc departmental meetings and individual leaders to relay core priorities and expectations, without giving staff the resources to help ground that information.

Enter the transformational business modeling strategy. Organizations with an effective transformational business model learn how to create visual tools to communicate a strategic business plan, plus its implementation steps and balanced scorecard methods. This increases business plan buy-in and creates a clear, collaborative and accessible road map for everyone at the organization to follow.

2. Scenario Planning

Scenario planning imagines future circumstances that could jeopardize the fulfillment of your business plans. Organizations can then better prepare for these scenarios, analyzing and comparing best and worst-case trade-offs in costs, resources, employee capacities, profit margins, customer values and much more.

There are intuitive benefits of scenario planning before creating and executing a business plan. Scenario planning is one of the only frameworks that truly creates detailed risk summaries before a plan launches. Organizations that partake in scenario planning preempt many unforeseen challenges and discrepancies in the implementation of their strategic plan, preventing risks from hemorrhaging into fatal wounds.

3. Business War Games

Don’t let the name fool you — wargaming is an approachable and actionable business plan model for organizations across industries to understand their competitive marketplace better and therefore adapt appropriate strategic goals.

Using actual marketplace and competitor data, businesses participate in workshops that identify a competitor’s future endeavors as well as their own responses and countermoves to those endeavors. Ideal wargaming strategies then allow that organization to funnel resources and investments into truly competitive differentiators — differentiators which become the core tenets of their new strategic plan.

Creating an Agile Strategic Business Plan

As the famous Abraham Lincoln quote reminds us, “Give me six hours to chop down a tree, and I will spend the first four sharpening the ax.”

So it goes with creating your agile business plan. After conducting an appropriate business planning model — and reaping the data and insights from its findings — your business is ready to begin outlining its actual business goals and strategies.

Consider these best practices when drafting that strategic plan, as each is an essential preparatory step before plan execution.

1. Know Your Why

Understanding your organization’s driving “why” goes beyond its mission statement. It’s even beyond your list of corporate values, which are often noble and promising but locked in the abstract.

Instead, strategic business planning must be driven by objectives, advantages and outcomes. These are your plan’s true “whys” influencing what ideas you choose to execute. Determine, with detailed granularity, your target objectives, the competitive advantages of those objectives and how you’ll measure their success outcomes. Doing so sets the framework for an actionable and value-adding strategic vision.

2. Compile a Cross-Functional Team

Strategic business plans must have insights from every major department or domain at your organization. Consider the alternative — how can you expect to implement enterprise-wide strategy goals without input from across the enterprise?

• Pick your change agents: Your planning team should include members of the board or other executive leadership as well as reps from major departments including marketing, sales, finance, accounting, operations and HR. It should also include IT staff as well, particularly if you intend to implement strategy management software.
• Determine business process owners and overall strategy directors: The former spearhead the actual, tangible changes made in their teams during plan implementation, while the latter represent the top plan overseer or administrator and will often be someone in your Office of Strategy Management .

3. Create “Living” Timelines

Fight strategic fatigue by creating realistic yet prorated schedules for your strategic plan.

This means going against the traditional strategic planning timeline, the one where most organizations set annual business goals and then macro-review their progress only a handful of times throughout the year.

Instead, consider allocating more meetings that are granular in topic and scope. Schedule these meetings as early as possible before you begin any official plan implementation, and share their agendas to keep focus relevant. Creating this kind of micro-timeline also equips your management team to respond more fluidly to business strategy changes that reveal themselves through benchmarked or scorecard data. After all, it does your organization no good if data tells you a process isn’t working, but you don’t address that issue for another three months.

4. Perform Competitive Research Analyses

A competitive research (CR) analysis builds an accurate profile of the strengths, weaknesses and overall operational health of your business compared to other companies in your vertical.

Similar to the business strategy models discussed earlier, your competitive research — otherwise known as competitive intelligence (CI) — gives you the most honest, quantitative assessment of where your organization currently sits versus where it aims to be. Many organizations opt to bring on an  external consultant to perform their CR or CI assessments to enrich findings and paint a more accurate competitive portrait.

5. Assess Your Technological Infrastructure for Enterprise Harmony

How do departments communicate essential information with one another? Where are projects and progress tracked? Who has access to these resources, and could you expand that access?

Siloed departments are one of the most common reasons strategic plans fail. If your internal teams can’t communicate data reports, information and plan updates with one another, then goal execution will only go so far.

Technology like stratic management software and enterprise resource planning software provides a solution. These technologies serve as the primary repository for all reports, documents and information related to the status updates and benchmarked measurements of the strategic plan across departments, today and tomorrow.

6. Develop an Accessible Strategy Management Framework

Your strategy management framework will assign the individual activities and initiatives necessary to execute your business strategy. It will also set up those activities’ timelines, as well as outline team responsibilities and set up benchmarking scorecards to measure and report progress.

All these concerns must be represented and shared in a cohesive format. Each department will use the strategy management framework to gauge their own activities, relay and receive plan updates and pivot actions, when necessary.

Select the framework most suited from your operations. Once the cross-departmental strategy team finalizes implementation activities, you’ll create a graphic framework representation depicting every activity, in every team, across the implementation timeline. Have team leaders conduct training with personnel on how to access and read the framework so everyone is on the same page.

There are dozens of strategy management frameworks on the market today, including leading models like:

• SWOT Analysis
• Porter’s Five Forces
• The Balanced Scorecard
• Objectives and Key Results (OKRs)
• Theory of Change Model
• The Strategy Map

7. Employ Technological Onboarding

At this stage in the strategic planning process, your organization should currently have — or be in the process of adopting — strategy management or resource management software.

These pieces of enterprise technology are pivotal for streamlined communication and collaboration across your strategic initiatives. The system houses all major and micro-projects that scaffold the complete business plan, plus designates who’s in charge of what, when and why. It’s also the portal all employees will use to make activity updates and signal status changes related to those activities.

Remember, strategic business planning must be a cross-functional endeavor. All representatives must plan and execute relevant training for new project or resource management systems within their departments, be that sales, HR, IT or operations. Failing to properly train employees on strategic planning technology is like handing a teenager the car keys and telling them to go on a road trip but never teaching them to drive.

8. Consider a Strategy Management Office (If You Don’t Already Have One)

Strategy management offices can be their individual division reporting directly to the COO or CEO. Other organizations wrap these offices into their finance departments.

Regardless of organizational structure, your strategy management office is the overseeing body coordinating end-to-end strategic plan design and implementation. They’re tasked with:

• Facilitating the strategic plan’s timeline
• Setting up and maintaining more granular meetings to review plan benchmarks
• Updating documents, information and files within the strategy management software
• Administering enterprise-wide updates on the strategic plan’s achievements and ongoing activities
• Serving as the go-to resource for questions, concerns or directions when change situations do strike

9. Adjust Budget Allocations to Match the Upcoming Strategy Implementation

Strategic planning and budgeting cycles are complementary activities that can easily run asynchronously. Business spend is known to proliferate across budget cycles, with forecasted expenses often ballooning on top of ad-hoc, unexpected costs that inevitably occur.

Review your budget structuring to ensure their alignment with the tenets and action items of your strategy framework. Of course, not every dollar will end up dedicated to strategic plan initiatives. Yet non-value-adding expenses should be analyzed and minimized , ensuring resource allocation is linked to your top priorities and adjusted routinely as you become more familiar with those purposeful contributions.

Implementing and Executing Changes in a Business Strategy

All the strategic planning in the world leads to this moment — implementing the business strategy and staying on top of its progress through completion.

Implementation centers on translating goals into smaller action items, with teams chiseling away at their assigned items, then consistently reporting performance for leadership to assess progress and adopt any changes. Those adaptations are then communicated swiftly and clearly back to the teams and departments executing them, typically through regularly conducted strategic planning micro-meetings and strategic management software’s project dashboards.

How do you create a fluid business plan that executes like clockwork? Consider these strategic plan implementation building blocks to successfully execute — and even change — your strategy.

1. Establish a Formal Change Communication Workflow

Automated communications provide the ideal solution here. No business strategy will come to fruition if teams and departments simply don’t know how they’re supposed to be contributing to the plan — or worse, if what they’re currently undertaking adds to or detracts from the organization’s strategic vision.

There are several ways to keep employees engaged and informed on changes with the strategic plan, from its origins through each phase of implementation:

• Automated strategy status updates or reports: Created by the strategy management office and sent to key department heads or directly to employees.
• Visual project trackers within the strategy software: Mimicking other project management software, with user-friendly dashboards relaying the current statuses and workflows of initiatives.
• Multimedia announcements: Keeping employees engaged through print, video, email and other media on updated objectives, scope or deliverable, plus the wider impact of these changes.
• Feedback channels: Ensuring all strategy is a two-way street, with employees’ thoughts, opinions and experiences valued.

2. Practice Prorated Report Timelines

Annual strategic reports don’t cut it. When business plans adapt, waiting months — or even just weeks — to officially announce pivots silos teams and makes employees feel left behind.

Any process or operational change to the business strategy will likely affect your staff within days anyway. Withholding status reports because you’re adhering to formalities should be done away with when you embrace living project timelines.

At a minimum, announce strategic plan reports every quarter. Even better, pick specific action items straight from the strategy management framework and hold monthly meetings reviewing its progress or fluxes, connecting how these changes will improve long-term business outcomes.

3. Institutionalize Reporting Software and Benchmarked Measurements

Tracking and measuring the progress of action items in the overall strategic plan is paramount to its continuous success — and one of the most cited reasons plans putter.

Without some digital repository centralizing project updates, it will be far more difficult for any member of the organization to gather and assess data, update project components, communicate horizontally with other departments and signal information to leadership. In other words, no one will be on the same page. Siloed communication is the bane of modern business planning and is best countered with a cohesive piece of reporting software that monitors progress and shares process changes with all.

4. Hold Regular Status and Accountability Meetings

We know, we know. Another meeting? We can hear the sighs from here.

Yet one of the most challenging aspects of shifting a business plan often involves communicating those changes downstream. What’s more, strategic changes must come with a compelling “why,” one relevant to employees and aligned with the company’s cited values and vision.

In-person meetings remain a meaningful way to review shifting business processes based in data, both for constituents within and outside the organization:

• Amongst the cross-functional leadership teams: Executive decisions can be leveraged after reviewing performance feedback and benchmarked progress data in person, all while still maintaining the integrity of the overall strategy management framework.
• Within individual departments: Regularly conducted status meetings let teams review resource allocations and process pain points in their daily activities against the cited outcomes of the business strategy. It turns the overall plan from a static, top-down set of directives to a collaborative endeavor employees associate and identify with their roles.

5. Avoid Corporate Speak

Business jargon can easily come off as insincere or out of touch. In fact, industry surveys find managers who use corporate speak during meetings and interactions with their teams actually make their departments less productive , less motivated and more likely to experience high rates of turnover.

When executing shifts in your business planning, it’s important to emphasize the human. After all, the whole goal behind continuous business planning is to be able to tweak and tailor processes fluidly after performance feedback, then funnel those changes seamlessly back into daily operations. Using technical language and corporate speak when explaining process shifts makes these conversations stiff and mechanical — the opposite of what’s needed.

6. Review Emerging Data Trends

Conducting regular reviews of performance feedback and data is the most objective way to temperature check the execution of the business plan.

KPIs and OKRs should have been established across multiple stages of the planning timeline, including during competitive research analyses and while drafting your step-by-step strategy framework.

Employees and managers may feel everything is being managed perfectly. But when performance metrics indicate otherwise, executive decision makers and the strategy management office can rectify inefficiencies or discrepancies, then use the established communication channels and management software to notify personnel of the “why” behind plan shifts.

7. Consult With a Strategic Planning Firm

Strategic planning consultants deploy personalized — and often proprietary — research methods with one goal in mind — to make their clients an industry poster child for growth, innovation and profitability.

Firm research directly translates into strategic planning by creating tangible goals suited for your organization. Their objective, external lens can be the difference between a generic business strategy plan and a comprehensive, substantive and fitting one.

Strategic planning firms offer many services that directly inform a fluid business planning system, including:

• In-depth industry and market research
• Competitive analyses
• Transformational business modeling
• Scenario planning and risk mitigation
• And more services

Learn How to Recognize and Update Business Opportunities as They Occur

Organizations today can’t practice agile planning without first establishing a successful strategic vision. Doing so puts the proverbial cart before the horse — and prevents resources from aligning with daily actions to create a truly value-adding, competitor-busting business future.

Looking to get your business priorities straight? Proactive Worldwide provides one of the most renowned, substantive intelligence-based strategic planning portfolios in the industry. When you’re ready for research-backed insights delivering progressive strategic change tactics, you’re ready for us.

Explore our portfolio of strategy planning and execution consulting services , then contact us to begin strategizing your future.

What can we help you achieve?

Get in touch with our market intelligence company today to start planning for the future of your organization.

• Contact sales

Start free trial

How to Execute a Plan Successfully (Tools & Templates Included)

Planning is everything. Without a plan you’re working in the dark. But the plan is only the beginning. The real work begins when executing that plan. Learn how to execute a plan to deliver a successful project.

How to Execute a Plan in 8 Steps

Once you’ve put the time and effort into creating the plan, you need to execute it. That means doing the tasks in such a way that you don’t spend over your budget and miss your deadline. Follow these eight steps to ensure a successfully executed project.

Get your free

Action Plan Template

Use this free Action Plan Template for Excel to manage your projects better.

1. Identify the Goals & Objectives of Your Plan

You’ve already identified the goals and objectives of the project and created a project plan to achieve them. Now that you’re executing that plan, always keep those goals and objectives in mind and make sure the project is working towards reaching them.

2. Map Out Tasks On a Timeline

To make sure that all the tasks are completed by the deadline, you’ve organized them by priority and have mapped them on a timeline . As you execute the project, refer back to that timeline to make sure that the tasks are completed in a timely manner.

3. Assemble a Team

The plan can’t be executed without a team. They are your most valuable resource. Choose your team wisely. They should have the skills and experience necessary to complete the project and jell as a team to work collaboratively.

4. Assign Tasks to Team Members

Once you have the team, assign them tasks according to their abilities. Make sure you give them direction, but also ownership of the work. Be available to answer any questions and get feedback from them.

5. Track Your Team’s Progress

As the team works on their tasks, you’ll want to keep track of their progress and performance. If you see them falling behind it might be necessary to reallocate resources to get the project back on track.

6. Control Costs & Risks

Also, monitor how much money the project is spending. You’ll need to control those costs to keep them aligned with the budget . You should have identified risks when planning. Now you want to keep an eye out for any issues that arise and quickly resolve them.

7. Communicate with Your Team

Stay in communication with your team. They will have questions about tasks and can provide feedback from the front lines of the project. The more open communication is in both directions, the better for the health of the project.

8. Measure the Success of Your Execution

Use key performance indicators (KPIs) to track your project . They are also helpful as success criteria.

Tips to Execute a Plan

The planning phase is the backbone that holds up any project. Jennifer Bridges, PMP, shows you how to take your project plan and execute it right.

Thanks for watching!

What Tools Can You Use to Execute a Plan?

Project management tools are ideal to track the execution of any type of plan. Let’s see how project management tools that can help you stay on track.

Gantt Charts

The Gantt chart is a scheduling tool that has a spreadsheet on the left and a timeline on the right where you can see the entire project, including dependencies, milestones and more. You can track progress on the Gantt chart, but there will undoubtedly be changes to the project plan.

A digital Gantt chart, like the one in ProjectManager’s software, makes adjusting the scheduling easy. Just drag and drop the task to the new start date or deadline. All the other tasks are adjusted automatically.

Project Dashboards

The monitoring and controlling phase of a project occurs simultaneously with the execution of the project. Using a project dashboard provides a high-level view of the project whenever you want. Unlike light-weight competitors, ProjectManager has real-time dashboards that don’t require time-consuming set up. You can use it right away to monitor time, cost, workload and more.

Kanban Boards

Gantt charts usually have more information that a project team needs when executing its tasks. Kanban boards are a great tool for teams in that they allow them to manage their backlog and collaborate when planning sprints. The visual workflow of the kanban board is also great for managers who get an overview of the production cycle and can identify and remove bottlenecks before they cause problems.

Free Planning Templates

ProjectManager has all the tools listed above and more, but if you’re not ready to upgrade yet we also offer dozens of free project management templates for Excel and Work for all phases of a project that you can download right now. Here are a few that can help when executing your project.

Our free action plan template for Excel can be used to plan and execute projects. It breaks the project down into phases, tasks, assignees and more. You can even track time and costs.

To-Do List Template

If your project isn’t that complex or if team members want to manage their tasks, our free to-do list template for Excel is a great help. Not only does it list your tasks, including start and end dates, but you can see the percentage complete to ensure you’re staying on schedule.

RACI Matrix Template

To successfully execute a project you need to identify and assign the roles and responsibilities of the team. Our free RACI matrix template for Excel helps you do this by indicating who is responsible, accountable, consulted and informed.

So as you can see there’s so much more than just executing the plan. So if you need a tool that can help you execute your plan successfully, then sign up for our software now at ProjectManager .

Deliver your projects on time and on budget

Start planning your projects.

Strategy, Implementation, and Execution: The Key to Business Success

• September 20, 2023
• Business Strategy & Innovation

Despite the increasing complexity and evolving nature of business, some may argue that the distinction between strategy, implementation, and execution is merely semantics. However, a closer examination reveals the crucial role that each of these elements plays in achieving business success.

Strategy provides direction and differentiation, while implementation aligns people and processes with the strategy. Finally, execution turns the implemented strategy into commercial success.

To drive innovation and stay ahead in today’s competitive landscape, business leaders must understand and effectively navigate the interconnectedness of strategy, implementation, and execution.

Table of Contents

Key Takeaways

• Strategy involves making choices about the company’s capabilities, competitive advantage, target customers, value proposition, and how to win.
• Strategy should provide direction, align resources, and help differentiate organizations from competitors.
• Strategy implementation is the process of turning strategic choices into action, involving aligning people, processes, and systems, effective communication, leadership, monitoring progress, and making adjustments.
• Execution is the process of turning an implemented strategy into commercial success, and it depends on successful strategy implementation, clear communication, engagement and empowerment of employees, effective performance measurement, and continuous learning and adaptation.

The Importance of Strategy in Business Success

A well-defined strategy provides direction and aligns resources, playing a crucial role in the success of a business. In today’s dynamic and competitive business environment, innovation is key to staying ahead. Organizations that embrace innovation and incorporate it into their strategy are more likely to achieve long-term success.

Innovation allows businesses to differentiate themselves from competitors, create new opportunities, and meet the changing needs of customers. However, measuring the effectiveness of strategy implementation is essential to ensure that innovation is driving business success. By monitoring key performance indicators and regularly evaluating progress, organizations can assess the impact of their strategy and make necessary adjustments to achieve their goals.

Effective strategy implementation, combined with a focus on innovation, is vital for businesses to thrive and maintain a competitive edge.

Key Elements of a Successful Strategy Implementation

Effective communication ensures understanding and buy-in during the implementation of a successful strategy. To overcome implementation challenges and measure strategy effectiveness, business leaders should consider the following:

Embrace innovation: Encourage a culture of creativity and experimentation to adapt to the changing business landscape and stay ahead of competitors. This fosters a mindset of continuous improvement and agility.

Foster collaboration: Promote cross-functional collaboration and teamwork to break down silos and enhance coordination. This allows for effective implementation by leveraging diverse perspectives and expertise.

Provide clear guidance: Clearly communicate the strategy, objectives, and expectations to all stakeholders. This ensures alignment and clarity in roles and responsibilities, minimizing confusion and resistance to change.

Monitor and evaluate progress: Establish key performance indicators (KPIs) and implement a robust monitoring and evaluation system. This enables the measurement of strategy effectiveness and the identification of areas for improvement.

The Role of Leadership in Strategy Execution

Leadership plays a crucial role in driving the successful execution of strategies. Effective leadership is essential for strategy implementation as it sets the tone, provides direction, and ensures alignment within an organization.

In order to achieve successful execution, leaders must demonstrate strong communication skills and effectiveness. Communication plays a vital role in strategy execution as it facilitates understanding, alignment, and buy-in among employees. Leaders must effectively communicate the strategy to all levels of the organization, ensuring clarity and comprehension.

They must also engage and empower employees, encouraging their involvement and commitment to the strategy. Additionally, leaders must provide clear performance measurement and feedback, driving accountability and continuous improvement.

Aligning People, Processes, and Systems With Strategy

To ensure the successful alignment of people, processes, and systems with the organization’s strategy, leaders must actively engage employees at all levels and foster a culture of collaboration and continuous improvement. This requires managing change effectively and implementing performance measurement practices.

Embrace change: Leaders need to proactively manage change by communicating the rationale behind strategic decisions and involving employees in the process. This fosters a sense of ownership and commitment, making it easier for individuals and teams to align their efforts with the organization’s strategy.

Set clear performance metrics: Performance measurement is crucial for tracking progress and ensuring that activities are aligned with strategic goals. Leaders should establish clear and meaningful metrics that enable employees to monitor their performance and make data-driven decisions.

Provide regular feedback: Continuous performance feedback is essential for driving improvement and enhancing execution effectiveness. Leaders should provide timely and constructive feedback that reinforces positive behaviors and addresses areas for development.

Foster a learning culture: Innovation and continuous improvement thrive in organizations that value learning. Leaders should encourage experimentation, knowledge sharing, and the adoption of new ideas and technologies. This creates an environment where employees feel empowered to challenge the status quo and contribute to the organization’s strategic objectives.

Overcoming Challenges in Strategy Execution

Overcoming challenges in strategy execution requires a proactive and collaborative approach from leaders and employees, as well as a commitment to continuous learning and adaptation.

Effective implementation of a strategy involves turning strategic choices into reality and aligning people, processes, and systems with the strategy. However, there are obstacles that can hinder successful execution. Resistance to change and insufficient resources are common challenges that organizations face. In addition, ineffective performance measurement and feedback can impede progress.

To overcome these obstacles, leaders must foster a culture of accountability and ensure clear communication of the strategy. Engaging and empowering employees is also crucial for effective execution.

Continuous learning and adaptation are essential for improving strategy execution outcomes and driving innovation within the organization. By addressing these challenges head-on, businesses can increase their chances of successfully implementing their strategies and achieving their desired outcomes.

Effective Communication and Strategy Implementation

Effective communication plays a pivotal role in ensuring that the chosen strategy is successfully implemented. It is essential for organizations that desire innovation to prioritize effective communication during the strategy implementation process. Here are four reasons why effective communication is crucial for successful strategy implementation:

Clarity: Effective communication ensures that everyone involved understands the strategy, its objectives, and their role in its implementation. This clarity helps align efforts and minimizes confusion.

Buy-in: When communication is effective, it fosters buy-in from employees and stakeholders. They understand the rationale behind the strategy and are more likely to actively support and contribute to its implementation.

Alignment: Effective communication helps align all levels of the organization towards the strategic goals. It ensures that everyone is working towards the same vision and minimizes the risk of misalignment.

Feedback: Communication allows for feedback and open dialogue, enabling organizations to identify and address implementation challenges promptly. This feedback loop helps refine the strategy and adapt it as needed for better results.

Monitoring Progress and Making Adjustments in Execution

Monitoring progress and making adjustments are essential components of effectively executing a strategy. In today’s rapidly evolving business landscape, organizations face numerous execution challenges that require proactive and agile adjustment strategies.

By monitoring progress, businesses can identify areas of success and areas that need improvement. This allows them to make necessary adjustments to ensure that their strategy remains aligned with their goals and objectives.

However, executing these adjustments can be challenging, as it requires a deep understanding of the market, competitors, and internal capabilities. Additionally, organizations must be willing to embrace innovation and adapt to changing circumstances.

The Impact of Poor Execution on Business Success

Poor execution can undermine an organization’s ability to achieve its desired outcomes and hinder its potential for growth and competitiveness. When execution falls short, the consequences can be severe, impacting the overall success of the business. Here are four key consequences of ineffective execution:

Missed Opportunities: Poor execution can result in missed opportunities to capitalize on market trends and customer demands, leading to lost revenue and market share.

Declining Performance: Ineffective execution can lead to declining performance, as the organization fails to meet its targets and deliver on its promises. This can erode customer trust and loyalty.

Wasted Resources: Poor execution wastes valuable resources, including time, money, and talent. Inefficient processes and ineffective decision-making can drain resources without producing desired results.

Diminished Competitive Advantage: Ineffective execution hampers the organization’s ability to differentiate itself from competitors and maintain a competitive edge. This can weaken its position in the market and limit its growth potential.

To improve execution performance, organizations can implement strategies such as:

Clear Communication: Ensuring that the strategy is effectively communicated throughout the organization, promoting understanding and alignment.

Empowering Employees: Engaging and empowering employees by providing them with the necessary tools, resources, and authority to execute the strategy effectively.

Performance Measurement and Feedback: Establishing robust performance measurement systems and providing regular feedback to drive accountability and continuous improvement.

Continuous Learning and Adaptation: Encouraging a culture of continuous learning and adaptation, where lessons are learned from both successes and failures, and adjustments are made to improve execution effectiveness.

The Connection Between Strategy, Implementation, and Execution

The impact of poor execution on business success highlights the importance of understanding the connection between strategy, implementation, and execution. Strategy provides the roadmap for achieving a specific goal, while implementation involves turning strategic choices into action. However, it is the execution that ultimately determines the success or failure of a strategy.

The relationship between strategy and implementation is crucial, as the effectiveness of the implementation directly affects the achievement of strategic goals. A well-defined strategy is essential, but without proper resource allocation and execution, it remains merely a plan on paper.

Resource allocation plays a vital role in strategy execution. It involves allocating limited resources, such as financial resources, human capital, and technology, to the areas that will have the greatest impact on achieving the strategic objectives. Effective resource allocation ensures optimal use of resources, maximizes efficiency, and minimizes wastage.

Innovation-driven organizations understand that successful strategy execution requires not only a well-defined strategy but also the proper allocation of resources to support its implementation. By aligning strategy, implementation, and resource allocation, companies can increase their chances of achieving business success and staying ahead in a competitive market.

Understanding the Semantics of Strategy, Implementation, and Execution

Understanding the nuances and distinctions between strategy, implementation, and execution is crucial for effective business leadership and achieving desired outcomes. In the fast-paced and ever-changing business landscape, it is essential to have a clear understanding of these concepts to drive innovation and success.

Here are four key points to consider when exploring the semantics of strategy, implementation, and execution:

Thinking and Doing: Strategy involves thinking and making choices about where to compete and how to win. Implementation is the translation of strategy into action, aligning people, processes, and systems. Execution is the process of turning an implemented strategy into commercial success through decision-making and activities.

Interconnected Processes: Strategy, implementation, and execution are parallel processes that are interconnected. They should be approached holistically and not conflated, as each has its own distinct activities, tools, and people involved.

Clear Definitions: Meticulous word choice and understanding of these concepts are crucial to prevent confusion and ensure clarity in business operations. Ignoring or blurring the distinctions can lead to sloppy decision-making and hinder success.

Impact on Results: The choices made in strategy, implementation, and execution have a significant impact on a company’s results. By understanding the semantics and applying them effectively, business leaders can drive innovation, overcome challenges, and achieve desired outcomes.

The Significance of Clear Definitions in Business Operations

The previous subtopic emphasized the importance of understanding the semantics of strategy, implementation, and execution.

Now, shifting focus to the current subtopic, it explores the significance of clear definitions in business operations.

Clear definitions play a vital role in ensuring effective communication, alignment, and understanding within an organization. By having clear definitions of key terms and concepts related to strategy, implementation, and execution, businesses can avoid confusion and ambiguity.

This clarity enables leaders and employees to make well-informed decisions and take appropriate actions to drive business success. Clear definitions also help establish a common language and framework for discussing and evaluating business operations, facilitating innovation and collaboration.

In a rapidly changing business landscape, clear definitions provide a solid foundation for navigating complexities and seizing opportunities.

Driving Success Through Strategy, Implementation, and Execution

Clear definitions of terms and concepts related to strategy, implementation, and execution enable effective communication, alignment, and understanding within an organization.

When it comes to driving success through effective planning and executing the strategic vision, there are four key factors that evoke emotion in an audience:

Visionary Leadership: Inspirational leaders who can articulate a compelling vision and motivate others to work towards it create a sense of excitement and purpose.

Agile Adaptation: The ability to quickly adapt and respond to changing market conditions and customer needs demonstrates a commitment to innovation and staying ahead of the competition.

Collaborative Culture: Fostering a culture of collaboration, where ideas are encouraged and diverse perspectives are valued, promotes creativity and drives innovation.

Results-Oriented Execution: A focus on delivering tangible results and continuously improving performance instills confidence and generates a sense of achievement.

Continuous Learning and Adaptation in Strategy Execution

Continuous learning and adaptation play a crucial role in effectively executing a company’s strategic vision. In today’s rapidly changing business landscape, organizations must be agile and responsive to stay ahead of the competition.

By embracing continuous learning, companies can gather insights from both internal and external sources, enabling them to make informed decisions and adjust their strategies accordingly. This involves actively seeking feedback, analyzing market trends, and staying abreast of industry advancements.

Additionally, adaptive strategy execution allows organizations to be flexible and make necessary adjustments as circumstances evolve. This approach encourages experimentation, innovation, and the ability to pivot when needed.

Frequently Asked Questions

How can a well-defined strategy help organizations differentiate themselves from competitors.

A well-defined strategy allows organizations to differentiate themselves from competitors by identifying unique value propositions and target customers. This competitive advantage gives them an edge in the market and helps them stand out in the eyes of consumers.

What Are the Key Activities Involved in Turning an Implemented Strategy Into Commercial Success?

To achieve commercial success, key activities involve implementing the strategy, setting clear goals, establishing success metrics, aligning people and processes, and continuously monitoring and adapting. Success depends on effective execution of these commercialization activities.

How Can Business Leaders Overcome Resistance to Change During Strategy Execution?

Business leaders can overcome resistance to change during strategy execution by fostering open communication, providing clear rationale for the change, involving employees in the decision-making process, and offering training and support to help them adapt to new ways of working.

What Are Some Common Challenges That Hinder the Successful Execution of a Strategy?

Common challenges that hinder successful strategy execution include lack of alignment between strategy and execution, resistance to change, insufficient resources, ineffective performance measurement, and lack of accountability.

Why Is It Important for Business Leaders to Understand the Semantics and Distinctions Between Strategy, Implementation, and Execution?

Understanding the semantics and distinctions between strategy, implementation, and execution is important for business leaders to effectively align their goals, allocate resources, and drive results. It allows them to develop a clear vision, translate it into actionable plans, and ensure successful implementation and execution.

Strategic Performance Management: How To Guide

Like what you’re reading, download the complete guide to strategic planning today..

GET THE SAMPLE GUIDE

Phase 4: Plan Execution and Strategic Performance Management

Phase Duration

• Until you need to formally update your plan, starting again at Phase 1

Question to Ask

• What is on and off target ‘ what do we need to adapt in our plan?
• What emerging strategic topics do we need to identify and solve?
• What can we do to be more effective as a team?

Data Needed

• Status on goals from the individual to organizational-wide level
• Monthly or quarterly Key Performance Indicator data

Outcomes / Deliverables

• Implementation schedule
• Regular and effective quarterly strategy updates
• Solutions to ‘Strategic Topics’
• Relevant strategy and plan

Action Grid

*To access the worksheets under “Tools & Techniques” please refer to our Strategic Planning Kit for Dummies .

OnStrategy is the leader in strategic planning and performance management. Our cloud-based software and hands-on services closes the gap between strategy and execution. Learn more about OnStrategy here .

Implementation Schedule

Implementation is the process that turns strategies and plans into actions in order to accomplish strategic objectives and goals. Whereas the strategic plan addresses the what and why of activities, implementation addresses the who, where, when, and how. It is believed that implementation is as important, or even more important, than strategy. The fact is that both are critical to success. In fact, organizations can gain competitive advantage through implementation if done effectively. Below is a sample planning calendar that can help aid you in executing and rolling out your plan successfully. Once your resources are in place, you can set your implementation schedule.

Use the following steps as your base implementation plan:

• Establish your strategic performance management and reward system.
• Set up monthly and quarterly strategy meetings with established reporting procedures.
• Set up annual strategic review dates including new assessments and a large group meeting for an annual plan review.

Now you’re ready to start plan roll-out. Below are sample implementation schedules, which double for a full strategic management process timeline.

Ideas for Successful Implementation:

• Communicate the strategy to everyone in your organization.
• Involve your staff in the development of the plan.
• Assign your staff clear goals that tap into their strengths.
• Have your staff create the action items to support their assigned goals.
• Hold your staff responsible for the achievement of assigned goals.
• Monitor the Scorecard monthly or quarterly.
• Hold a monthly or quarterly staff strategy meeting to report on the progress.
• Hold meetings with the team leaders, where you only discuss strategy.
• If something in the plan is not working, change it. Take corrective action or move to build on success.
• Plan quarterly meetings where you only discuss strategy.
• Link strategy to performance.
• Make true self-assessment an ongoing practice.
• Celebrate when goals are reached.

Tracking Goals & Actions

Monthly strategy performance management meetings don’t need to take a lot of time ‘ 30 to 60 minutes should suffice. But it is important that key team members report on their progress toward the goals they are responsible for – including reporting on metrics in the scorecard they have been assigned. By using the measurements already established, it’s easy to make course corrections if necessary. You should also commit to reviewing your Key Performance Indicators (KPIs) during these regular meetings.

Your Bi-Annual Checklist

Never lose sight of the fact that strategic plans are guidelines, not rules. Every six months or so, you should evaluate your plan implementation by asking these key questions:

• Will your goals be achieved within the time frame of the plan? If not, why?
• Should the deadlines be modified? (Before you modify deadlines, figure out why you’re behind schedule.)
• Are your goals and action items still realistic?
• Should the organization’s focus be changed to put more emphasis on achieving your goals?
• Should your goals be changed? (Be careful about making these changes ‘ know why efforts aren’t achieving the goals before changing the goals.)
• What can be gathered from an adaptation to improve future planning activities?

Common Pitfalls

Here is a list of lessons that are usually learned the hard way. Because you want your plan to succeed, heed the advice here and stay away from these common pitfalls of implementing your strategic plan:

• Lack of ownership:  The most common reason a plan fails is lack of ownership. If people don’t have a stake and responsibility in the plan, it will be business as usual for all but a frustrated few.
• Lack of communication:  The plan doesn’t get communicated to employees, and they don’t understand how they contribute.
• Getting mired in the day-to-day:  Owners and managers, consumed by daily operating problems, lose sight of long-term goals.
• Out of the ordinary:  The plan is treated as something separate and removed from the management process.
• An overwhelming plan:  The goals and actions generated in the strategic planning session are too numerous because the team failed to make tough choices to eliminate non-critical actions or don’t have employee buy-in.
• Annual strategy:  Strategy is only discussed at yearly weekend retreats.
• Not considering implementation:  Implementation isn’t discussed in the strategic planning process. The planning document is seen as an end in itself.
• No progress report : There’s no method to track progress, and the plan only measures what’s easy, not what’s important. No one else feels any forward momentum.
• No accountability:  Accountability and high visibility help drive change. This means that each measure, objective, data source and initiative must have an owner.
• Lack of empowerment:  Although accountability may provide strong motivation for improving performance, employees must also have the authority, responsibility and tools necessary to impact relevant measures. Otherwise, they may resist involvement and ownership.

Remember, it’s easier to avoid pitfalls when they’re clearly defined. Now that you know what they are, you’re more likely to jump right over them!

Review & Adapt

Guidelines For Your Strategy Review

Restricting the meeting to reporting on measurements can help you stay on task and keep the meeting within 30 minutes, but if you can commit to a full hour, the meeting agenda should also include some time devoted to working on one specific topic or on one of the quarter’s priorities where decisions need to be made. Once agreed upon, this topic should be developed to conclusion. Consider these additional tips for making your strategy meetings more effective:

• Schedule the monthly performance management meetings on the same day and time each month in order to encourage making strategy a habit. Likewise, schedule quarterly meetings for the same week of each month following the end of a quarter.
• Invite individuals or departments/team leaders. Their presence creates visibility and recognition for the people getting things done.
• Make the meeting mandatory ‘ no exceptions. This is 30-60 minutes time well spent.
• Start and end on time and stay on task with an agenda.

Holding meetings helps focus your goals on accomplishing top priorities and accelerating growth of the organization. Although the meeting structure is relatively simple, it does require a high degree of discipline.

Below is a sample strategy review agenda.

Why Hold Strategy Reviews?

Holding regular strategy reviews is the key to implementing your strategic plan, making the numbers, achieving your company goals, and, finally, making strategy a habit for everyone involved. These meetings will give you the ability to manage activities that drive future results and hold people accountable for making sure those activities happen. According to a past Fortune cover story, 86% of business owners and managers spend less than one hour per month discussing strategy. Not surprisingly, this same article also reported that nine out of ten organizations failed to implement their strategic plan. Quarterly and, in particular, monthly strategy meetings allow you to keep your finger on the pulse of your strategic planning efforts and make any necessary adjustments before it becomes too late.

Guide to Strategic Performance Review Meetings and Keeping Your Team on Track

Key Points between Operational Status and Strategic Performance Meetings:

Monthly Strategy Review Meetings: Purpose The monthly strategy review meeting is the heartbeat of the strategic performance management process . In order for a plan to be an effective management tool, it must be up-to-date, guide decision making and be top of mind. Therefore consistent review and monitoring of the plan is necessary to know if we are on or off course and to modify the course if necessary. Required Attendees: Executive Strategy Team Date, Time, Frequency: Once a month, 1 hour Input to Meetings: Only relevant comments that week from updated goals Individual Handouts for Meeting: Department Managers’Department Action Plans (weekly) / Strategy Director’Full Plan with Progress’for all (monthly).

Annual Updates

The three words  strategic planning off-site  provoke reactions anywhere from sheer exuberance to ducking for cover. In many organizations, retreats have a bad reputation because stepping into one of the many planning pitfalls is so easy. Holding effective meetings can be tough, and if you add a lot of brainpower mixed with personal agendas, you can have a recipe for disaster. That’s why so many strategic planning meetings are unsuccessful. This section focuses on the ten guaranteed ways to ruin your next meeting and what to do to avoid them in advance.

Top 10 Ways to Ruin Your Annual Strategic Review Meeting

1. refusing to use a facilitator: .

Make sure to find a facilitator who understands and runs strategic planning meetings regularly. You want someone who can keep the meeting on task and guide the process so you achieve the desired outcome of a strategic plan.

2. Neglecting to Conduct Any Research Before the Meeting: 

Some research is better than none. So if you find yourself in a pinch the day before or the day of the meeting, do what you can to get data about your customers’ needs, your competitors’ actions, and your employees’ opinions. You need the right information in order to feel confident in your strategic decision making.

3. Inviting Everyone: 

Although it’s imperative that key employees have a voice in planning, not everyone has to literally be at the meeting table. Too many people in the room can lead to chaos and confusion, resulting in a strategic plan by committee instead of through educated decisions and leadership.

4. Holding an Annual Retreat :

Strategic management should be a  habit,  not an event. Hold your strategy meetings regularly (more than once a year) to realize enhanced performance. With that said, annual retreats are okay, but make sure they’re not your only meetings of the year.

Strategic thinking is hard work. It takes a lot of mental energy to pull all the pieces of the puzzle together, see the future, make strategic decisions, and organize the plan usefully. By then end of most strategic planning meetings, people are mentally exhausted. Getting through the agenda is usually what it takes to have a completed plan. However, sometimes getting it all done just isn’t possible. Focus on the outcomes instead of the exact agenda.

6.Forgetting to Explain the Process:

A good facilitator explains the strategic planning process and the expected outcome of the meeting from the get-go. Most people think they know how to develop a strategic plan, but that doesn’t mean they truly can. Naturally, you don’t want to insult anyone’s intelligence, but take the time to review the different terms used in strategic planning and each step of the process. By making sure that everyone starts on the same page, you eliminate any confusion that may derail your meeting.

7. Assuming Everyone Thinks Like You:

Of course, everyone thinks like you, right? As a good leader, you know that’s not the case. Unfortunately, sometimes you forget what’s obvious and end up structuring a meeting based on your own preferences. In reality, stepping into other people’s shoes and ways of thinking is a difficult task. But in strategic planning, you want everyone in the room engaged.

8. Ignoring the Elephant in the Room:

Would you like to see a strategic planning meeting go down in flames? Forge ahead, even though you know you have some staff issues. If any key staff member is upset or has an outstanding problem, your strategic planning meeting may be disrupted. That person may sit in the meeting like a brooding elephant and finally blow his top and get the meeting off course.

9. Ending on a Low Note:

The best way to get people jazzed about the plan is to have them visualize success and ensure that everyone is comfortable with the work product. What does success look like? Help your team feel successful by living the future today. Ask your team to draw a picture of what the company may look like if you achieve your strategic plan. How many employees? What is the office like? Where are you located? Who are your customers? What’s the media saying? And so on. Then have your team explain its vision to the group. After the drawings and explanations are over, tell your staff members to hang their creations at their desks to remind them of the plan and their part in it. That way, everyone leaves the planning session feeling successful, bought in to the decisions that were made and not overworked.

10. Overlooking Life after the Meeting: 

The absolute worst thing you can do is continue business as usual, as though you never had a strategic planning off-site. Not only have you wasted everyone’s time and your money, but you’ve also made it nearly impossible to get people to participate in the future.

Join 60,000 other leaders engaged in transforming their organizations.

Subscribe to get the latest agile strategy best practices, free guides, case studies, and videos in your inbox every week..

Leading strategy? Join our FREE community.

Become a member of the chief strategy officer collaborative..

Free monthly sessions and exclusive content.

Do you want to 2x your impact.

• Plan Monitor Control Cycle in Project Management
• Post last modified: 18 March 2023
• Reading time: 16 mins read
• Post category: Project Management

Plan Monitor Control Cycle (PMC Cycle)

The Plan-Monitor-Control (PMC) cycle is a fundamental process in project management that enables teams to plan, execute, monitor, control, and improve their projects. It is a continuous improvement cycle that allows project managers to assess the progress of their project against the project plan, make adjustments, and take corrective actions to ensure the project stays on track.

Table of Content

• 1.1 What is Plan?
• 1.2 What is Monitor?
• 1.3 What is Control?
• 2.1 Setting Objectives
• 2.2 Identifying Key Control Parameters
• 2.3 Formulating Processes for the Controlling System
• 2.4 Deploying Metrics in Processes
• 2.5 Implementing Processes
• 3.1 They Provide Direction to the Project Manager
• 3.2 They Can Be Used for Comparison
• 3.3 They Help in Taking Decisions
• 3.4 They Help With Proactive Measures
• 4 Project Metrics

Before we learn about these three vital steps to guide a project through its initial stages to the destination in IT project management, let us first define the terms plan, monitor and control separately and understand how they find important in the management of IT projects.

What is Plan?

What is monitor, what is control.

The term plan refers to determining the path, means, and mechanism to reach an aspired place in the future. Planning means visualizing the future elements and tasks at present to analyze problems and risks arising from them.

Let us understand ‘plan’ with an example. When we start serious planning over a project, what we do is bring the future into the present. How? We want to finish the project within a deadline of, say, 6 months. Once the deadline is fixed, we turn to devise the best means including resource requirements and quality assurance requirements, software requirements, hardware requirements, etc., for meeting this deadline. This way, we have already determined that the project will be completed in six months.

The term monitor refers to keeping a tab on the application and working of the means and mechanisms that were planned to be used for the project. In other words, to monitor is to oversee the associated resources, schedules, cost implications, etc.

Control, in simple words, means ensuring that the project is going forward according to the plan. If there is a deviation, the software professionals will deploy workable measures that will get it back on track, i.e., in the path as defined in the plan.

For example, suppose during the execution of an IT project, it is seen that the schedule for the development of a module is late by 1.5 months; so the controlling measures may include the induction of more resources so that the delay can be covered.

Designing a Project Control System in Project Management

Every project is required to be controlled efficiently. This is more crucial in the case of IT projects because they are carried out to create technical products. In a technical piece, even if one part does not function well or is missing, the overall work will be affected.

Hence, adequate controlling tools must be deployed to ensure that no error or negligence goes unnoticed in the project. Designing a project control system is a big activity in itself, which every project manager must conduct right at the beginning of the project plan.

The following are the basic steps of designing a project control system:

Setting Objectives

Identifying key control parameters, formulating processes for the controlling system, deploying metrics in processes, implementing processes.

By setting the objectives of a project control system, the management specifically fixes the direction concerning the requirements of the project as well as of the organization. Note that these objectives must be aligned with the business objectives of the organization. If this alignment is not there, the whole purpose of developing a project control system would be ineffective.

For example, if an IT company develops software by using .NET technology, the objectives must be set concerning the .NET system.

On the other hand, if the company sets the objective of the project control system in the PRO-IV environment (a business rule engine to deliver complex and critical software projects quickly and securely through a varied range of environments), which is not much in demand, this will defeat business objectives as the main operations of the company are in the .Net environment. Another example could be a reduction of software testing defects by 10% of the previous year at an overall organizational level.

This step involves the identification of key control parameters. Continuing with the example from the previous step, one of the key control parameters is a 10% reduction in the fatal defects in the software of the company. By establishing this parameter, project managers know their requirement that is to be controlled exactly. The classification of the defects such as fatal, minor, or major is done according to the definitions as accepted by the organizational decision-makers.

In the absence of this classification system, managers may wrongly classify a fatal defect as minor and may not take the level of action that is appropriate or required. For example, during the testing of software, a defect is observed, and the software cannot run unless this defect is removed.

Now, as per the classification criteria drafted by experts, it is a fatal defect, but the project manager classifies this defect on his/her judgment and labels it as a major defect. Will it not disrupt the smooth progress of the project and cause unwarranted delays and arguments? Hence, along with objectives, an IT project must also have its key parameters defined beforehand.

This is another important step that formulates processes required for implementing the controlling system. The process so formed must follow the Entry, Task, Verification, and Exit (ETVX) model that is widely used in the IT industry. ETVX is a framework for the Software Development Life Cycle (SDLC) processes or phases. Entry refers to the point at which a process comes into existence.

Task refers to a job to be executed in a sequence. Verification refers to the method of checking whether all tasks of the process have been executed. Exit refers to the stage where the process moves out of the system.

During the formulation of processes, metrics must be incorporated. Metrics refer to data that assist in the controlling of processes, and thereby, the project also. For example, in the case of project management, schedule variance is a metric that enables the project manager to take additional measures such as instructing employees to work overtime to finish the project on time.

Here, the project enters the execution mode, and the processes formulated in the previous steps are put into practice. Various metrics generated are collected and analyzed systematically, and control measures are deployed in the project execution mode.

Suppose a project that has just commenced is at the requirements stage. Hence, requirements gathering and analysis take place at this stage, and the metrics documented in the process are gathered as per the steps in the process. These metrics are analyzed, and control measures are taken in case the project is going slow or fast.

Project Control Through Metrics in Project Management

Metric is a measurement standard that helps in measuring the quality or performance of a deliverable project. Something that can be measured can be controlled. Thus, metrics are used for controlling purposes.

The importance of metrics can be listed through the following advantages:

They Provide Direction to the Project Manager

They can be used for comparison, they help in taking decisions, they help with proactive measures.

Through metrics, the project manager can easily know whether the project is behind schedule or ahead of it.

This means that the project manager will be able to compare and conclude who has efficiently done the job and who has not. For example, the manager can compare whether Joe is a good tester or Dean, as both have tested the software and the data about the number of defects of each tester is available.

With the help of metrics, taking decisions is easier, and the decisions made are more effective, as they provide objective evidence of the progress status of project execution. For example, the project manager can decide whether to continue with smoke testing or any other testing technique not as the timeline for project delivery is approaching fast.

With metrics in hand, the project manager can take proactive measures. For example, suppose the root cause analysis of reviewed defects has indicated that a lack of experience in gathering requirements is the main cause of the defects; therefore an experienced person should be deployed for this purpose now.

Project Metrics

The following project metrics are widely used in IT projects:

• Effort Overrun: This is used as a control measure to monitor effort variance in the ongoing project.
• Size Variance: This is used to determine a variance in terms of the project size concerning the initial and final estimates of the project. The size estimate can be in the form of several function points, objects, screens, reports, etc., depending on the project.
• Productivity: This is used to measure the productivity of the appointed software professionals. The productivity output can be in terms of the number of functions developed per day or the number of defects per line of code.
• Resource Utilization: This is used to measure the rate of utilization of resources employed in the project. This can be in terms of percentage also; for example, resource utilization can be 90% over a given period.
• Schedule Compliance: This is used to measure how well the planned schedule was adhered to by those for whom it was meant. For example, schedule compliance of 90% means that the project is behind 10 days assuming 100 days as the time for completion.
• Defect Density: This is used to measure the defect density of the code. For example, defect density can be in the form of 5 defects/fp.
• Test Efficiency: This is used to measure the efficiency of the testing process. It is generally 70% as per the industry, which means the testing process can detect 70% of the defects only.
• Review Effectiveness: This is used to determine the effectiveness of the review process. An efficient review process can detect and remove 80% of the defects before implementation
• .Test Coverage: This is used to determine the adequacy of the testing process. Testing is an endless process, and its adequacy can be measured only by covering a limited part of the process.
• Turnaround Time: This is used to determine the time taken to clear or rectify the reported issue or defect.
• Schwalbe K. (2016). Information Technology Project Management (Eight Ed). USA: Cengage Learning.

Best Project Management Courses

Project management skills are in demand. If you are ready to get started, consider enrolling in the  Google Project Management: Professional Certificate  Learn the job-ready essentials of project management in six months or less, such as initiating projects, risk management and change management. Also we have made list of best project management courses as there are a plethora of options available, and it can be challenging to identify the best one.

Best Project Management Tool

• Mid & Large Size Team
• Higher Plan
• Standard Feature
• Flexible Database & Stability
• Small & Growing Team
• Smaller Plan
• Standout Feature
• Try New Feature

The ideal project management tool selection will eventually rely on the particular requirements of your team. We suggest experimenting with the free versions of various tools to gauge your team’s comfort level and then proceeding accordingly.

Project Management Tutorial

( Click on Topic to Read )

• What is Project Management?
• Functions of Project Management
• What is Project?
• Project Managers
• What is Project Life Cycle?
• Project Feasibility Study
• What is Project Analysis?
• What is Project Planning?
• What is Project Selection?
• What is Project Schedule?
• What is Project Budget?
• What is Project Risk Management?
• What is Project Control?
• Project Management Body of Knowledge (PMBOK)
• Best Project Management Tools
• What is Project Organisation?
• What is Project Contract?
• Types of Cost Estimates
• What is Project Execution Plan?
• Work Breakdown Structure (WBS)
• Project Scope Management

Project Scheduling Tools and Techniques

Project risk identification.

• Risk Monitoring
• Allocating Scarce Resources in IT Project
• Goldratt’s Critical Chain
• Communication in Project Management | Case Study
• Reporting in Project Management
• IT Project Quality Plan
• Project Outsourcing of Software Development
• Implementation Plan of Software Project
• What is Project Implementation?
• What is Project Closure?
• What is Project Evaluation?
• Software Project Management Challenges
• What is Project Management Office (PMO)?
• IT Project Team

Business Case in IT Project Life Cycle

• PMP Study Guide
• What is Data?
• Big Data Management
• Types of Big Data Technologies
• Big Data Analytics
• What is Business Intelligence?
• Business Intelligence Challenges in Organisation
• Essential Skills for Business Analytics Professionals
• Data Analytics Challenges
• What is Descriptive Analytics?
• What is Descriptive Statistics?
• What is Predictive Analytics?
• What is Predictive Modelling?
• What is Data Mining?
• What is Prescriptive Analytics?
• What is Diagnostic Analytics?
• Implementing Business Analytics in Medium Sized Organisations
• Cincinnati Zoo Used Business Analytics for Improving Performance
• Dundas Bi Solution Helped Medidata and Its Clients in Getting Better Data Visualisation
• What is Data Visualisation?
• Tools for Data Visualisation
• Open Source Data Visualisation Tools
• Advantages and Disadvantages of Data Visualisation
• What is Social Media?
• What is Text Mining?
• What is Sentiment Analysis?
• What is Mobile Analytics?
• Types of Results From Mobile Analytics
• Mobile Analytics Tools
• Performing Mobile Analytics
• Financial Fraud Analytics
• What is HR Analytics?
• What is Healthcare Analytics?
• What is Supply Chain Analytics?
• What is Marketing Analytics?
• What is Web Analytics?
• What is Sports Analytics?
• Data Analytics for Government and NGO
• What is E-Business?
• E-Business in India
• What is Mobile Commerce?
• E-Business Strategies
• E-Business Revenue Model
• What is E-Commerce Software?
• What is Electronic Payment System?
• What is Payment Cards?
• What is Payment Gateways?
• Types of Payment Systems
• Security Threats in E-Business
• Online Security in E-Business
• What is Online Marketing?
• What is Website Usability?
• What is Web Advertising?
• What is E-Mail Marketing?
• What is Online Brand Management?
• What is E-CRM?
• What is E-Supply Chain Management?
• What is E-Retailing?
• What is E-Banking?
• What is Enterprise Resource Planning?
• Benefits and Advantages of ERP & Reasons for Growth
• Success Factors of ERP Implementation
• ERP Implementation Life Cycle
• Risk in ERP Implementation, Cross Function, ERP Technology
• Maintenance of ERP
• What is Business Model?
• Business Process Reengineering (BPR)
• Types of Information Systems: TPS, MIS, DSS, EIS
• What is SAP?
• Modules of ERP Software
• SAP Application Modules
• SAP R/3 System
• ERP Modules
• ERP in Manufacturing
• ERP Purchasing Module
• What is SAP Sales and Distribution (SAP SD)?
• ERP Inventory Management Module
• ERP Implementation
• ERP Vendors, Consultants and Users
• Oracle Corporation
• PeopleSoft ERP
• Edwards & Company ERP
• Systems Software Associates ERP
• What is ERP II?
• ERP Implementation at Rolls-royce
• What is MIS?
• Requirements of Management Information System
• What is Risk Management?
• Nolan Six Stage Model
• What is Cloud Computing?
• Information Systems in Organisations
• Challenges Faced by Manager in Managing Information Systems
• Decision Making With MIS
• What is E-Governance?
• What is Green IT?
• What is Smart Cities?
• What is IT Infrastructure?
• Cloud Service Models
• Cloud Migration Challenges
• Security Threats Faced by Organization
• Managing Security of Information Systems
• What is Data Management?
• What is Database?
• What is Data Warehouses?
• Enterprise Resource Planning Systems
• What Is IoT?
• IoT Design and Size & Space Considerations
• IoT Architecture
• Iot Applications
• IoT Security Challenges
• Big Data Processing Frameworks
• IoT for Smart Cities
• IoT Consumer Wearables and Application
• Smart Retail IoT
• What is Augmented Reality?
• AR Applications
• What is Virtual Reality?

You Might Also Like

What is project contract principles, what is project selection criteria, process, models, what is work breakdown structure (wbs) creation, resource allocation, what is project life cycle phases, characteristics, what is project schedule importance, creating, goal, project implementation plan: objectives, role, importance, content plan, challenges, issues, what is project closure administrative closure, realities, concerns, final report & meetings, what is project evaluation stakeholders, types, objectives, what is project risk management process, definition, principles, leave a reply cancel reply.

You must be logged in to post a comment.

World's Best Online Courses at One Place

We’ve spent the time in finding, so you can spend your time in learning

Digital Marketing

Personal growth.

Development

• Strategic Management
• Belt – Risk Management
• Lift – Performance Management
• Score – Bonus
• Grid – Budget Matrix

Business planning 2024: Goals and strategies for success

• Letícia Tagliamento | Actio Global
• strategic management

Many large enterprises acknowledge the importance of developing a business plan to achieve success. 

However, according to a Project Management Institute (PMI) survey, many need help effectively implementing these ideas.

In this blog, we’ll guide you on how to strategically and effectively carry out business planning. Keep reading to learn more!

What you will see in this post:

What is Business Planning?

Before delving into implementing strategic business planning, it’s essential to understand its concept, serving as a fundamental basis for the entire process. 

Business planning is a strategic stage that aims to define goals, establish objectives, identify necessary resources, and outline actions to achieve those objectives. 

This process spans various organizational levels, from long-term strategic to short-term operational planning, ensuring cohesion and synergy among various company activities.

Why Create a Business Plan for 2024?

Creating a strategic plan for 2024 is essential for companies to face challenges and thrive in highly competitive and ever-evolving market environments.

The key advantages include:

1- Gain an Overview of the Next Year

Strategic planning gives the company, its leaders, and employees a clear and transparent vision of what to expect in 2024. 

This forecast goes beyond analyzing market trends, encompassing a broad understanding of the external environment, such as economic conditions, political changes, technological advancements, and even sociocultural factors. 

By previewing these elements, the company can strategically position itself to anticipate challenges, set goals, identify opportunities, and adapt to changes in the business landscape.

2- Track Goal Development: 

Setting clear and measurable goals is the first step to success , but this is only achieved by closely monitoring their progress throughout the year. 

Strategic planning provides a framework for teams to monitor progress, identify obstacles, and adjust strategies as needed.

 By understanding what is working and what needs improvement, the organization becomes more agile, adaptable, and ultimately more successful.

3- Define Resource Allocation

An organization’s financial, human, or technological resources are limited and valuable. 

Identifying priority areas for investment and optimization becomes possible with business planning, providing strategic allocation that enhances operational efficiency. 

Whether expanding into promising growth areas, enhancing technology for innovation, or investing in team development, careful definition of where to direct resources is crucial for achieving the outlined strategic objectives.

Types of Business Planning

There are four main types of business planning, each playing a crucial role in directing and ensuring a company’s success. These include:

1- Strategic Planning

Focuses on medium and long-term solutions with broad impacts. Through detailed analysis, it seeks to understand what is necessary to make the company more competitive and keep it ahead of competitors.

2- Operational Planning

Closer to the company’s daily operations, it involves creating schedules, assigning responsibilities, and managing activity flows to ensure efficiency in task execution.

3- Tactical Planning

Integrates strategic and operational analyses, developing planned actions for the entire year. It aims to optimize the implementation of medium-term strategies by aligning strategic objectives with operational activities.

4- Financial Planning

Essential for organizing the company’s financial resources, including cost management, revenue, and cash flow. Without proper financial planning, even a company that sells its products and services well risks significant financial difficulties, potentially leading to bankruptcy.

Are you looking for strategic management software? Get to know Tune by Actio!

Practical Tips for Implementing Business Planning

Now that you understand business planning and its advantages, let’s explore how to start implementing this valuable strategy for your company.

1- Conduct a Diagnosis

Begin with a thorough analysis of the company’s internal and external environment. Evaluate resources, competencies, opportunities, and threats, understand market trends, and identify the organization’s strengths and weaknesses.

2- Identify Mission, Vision, and Values

Involve key members of the company in defining the mission (purpose), vision (desired future), and values (guiding principles). Ensure these elements are clear, inspiring, and aligned with the organization’s identity.

3- Use PDCA

Implement the PDCA cycle (Plan, Do, Check, Act) to plan, execute, monitor, and continuously adjust actions. Establish specific goals for each phase of the cycle, promoting continuous improvements.

4- Analyze the Competition

Study direct and indirect competitors, analyzing their strategies, strengths, and weaknesses. Identify opportunities for differentiation and innovation to position the company competitively.

5- Define Objectives

Set clear, measurable, and achievable objectives at each planning level (strategic, tactical, operational). Involve all stakeholders in goal setting to promote greater engagement and alignment.

6- Identify and Ensure Necessary Resources

Evaluate the resources needed to achieve the defined objectives, including financial, human, and technological resources. Ensure that resource allocation aligns with strategic priorities.

7- Delegate Responsibilities

Finally, distribute responsibilities clearly and transparently. Ensure that each team member understands their role and is 

Get to know Tune by Actio, strategic management software 

While business planning is a powerful approach, it’s important to remember that its implementation requires the entire organization’s commitment, planning, and involvement to achieve significant results. 

However, it’s not just that; using the right technology for your management processes is crucial to being effective. Get to know Tune by Actio , software to manage the business planning in your company; with it, you ensure total control of all information, goals, and actions.

Frequently Asked Questions

1- how does business planning work.

Business planning involves anticipating and developing programmed strategies to achieve a specific goal. 

This approach aims to identify a specific target, allowing the organization to implement the best ways to reach it.

2- What is the Importance of Planning in Companies?

Planning enables organizations to develop strategies to achieve their goals efficiently, an essential element for success and adaptation to the demands of the business environment.

3- What Does Planning Require?

To carry out effective planning, it’s necessary to establish clear objectives, measurable goals, performance indicators, and strategic initiatives. 

However, the efficiency of sectors and employees is insufficient if the company lacks robust planning. It’s essential to adopt appropriate methods, be prepared to deal with potential crises, and strategically position oneself ahead of contingencies.

Understanding the importance of anticipating challenges, setting clear goals, and efficiently directing resources, companies can face obstacles and thrive in a highly competitive market. 

Practical implementation of this planning, from environmental analysis to clear responsibility distribution, is crucial. 

Don’t forget to follow Actio on Instagram , LinkedIn , and Facebook .

Did you like the content? Tell me in the comments.

Hey Great job putting this together! I wonder what AI will do in this area over the next five years.

Hi Excellent work putting this together! I wonder what AI will do in this area over the next five years.

Leave a reply

Your email address will not be published. Required fields are marked *

Save my name, email, and website in this browser for the next time I comment.

Recent Posts

• Business strategic planning: why do it?
• Understand the importance of strategic planning
• Strategic planning: what it is, how to do it, and examples
• Check out 10 employee bonus ideas
• Understand why you shouldn’t use OKRs for individual performance management

• Privacy Overview
• Strictly Necessary Cookies

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.

Strictly Necessary Cookie should be enabled at all times so that we can save your preferences for cookie settings.

If you disable this cookie, we will not be able to save your preferences. This means that every time you visit this website you will need to enable or disable cookies again.

How to Create and Use a Project Execution Plan

No project is created perfectly. 

However, a project’s quality depends entirely on your project execution plan — and you can significantly improve it with the right process. Here’s how project managers should approach such a project plan.

What is a project execution plan? 

A project execution plan is a comprehensive document that outlines the strategy, approach, and specific actions to be taken during the implementation phase of a project. It serves as a roadmap or guidebook for the project team that specifies key operational and quality specifications, including:

• Project goals (usually as a goal statement)
• Project purpose
• Project leaders, stakeholders, and teams
• Expected deliverables
• An outline of the project’s life cycle
• Details of project operation

What should a successful project execution plan contain? 

A project execution plan in a professional services industry typically includes the following key elements:

• Project scope defines the project’s objectives, deliverables, and boundaries, creating a clear understanding of what will be accomplished.
• Work breakdown structure (WBS) is breaking down each stage of the project into smaller, more manageable project tasks or activities, establishing a hierarchical structure that shows how the work will be organized and executed.
• Project schedule and milestones outline the start and end dates for each task or activity and identify significant project milestones or checkpoints crucial for a good project execution plan.
• Resource planning involves assigning employees to the project, its stages, and individual tasks. 
• Risk management is a crucial part of a project execution plan that identifies potential risks and uncertainties associated with the project and outlines strategies to mitigate or respond to these risks effectively.
• Quality management defines the quality standards and processes the team will follow to ensure that project deliverables meet or exceed the specified requirements.
• Change management establishes procedures and protocols for managing changes to the project scope, schedule, resources, or other aspects, ensuring that any modifications are properly evaluated, approved, and implemented.
• Monitoring and control mechanisms describe how project status, performance, and adherence to the plan will be monitored, measured, and controlled, allowing for timely adjustments and corrective actions when project managers find it necessary.

How to Create a Project Execution Plan Step-By-Step 

Step 1: define the project objectives.

Before starting the project, choose a title for it and delegate a project manager responsible for its execution. 

Then, identify and document the project goals, desired outcomes, and success criteria that need to be met for the client to be completely satisfied — in other words, specify what a “successful project” means for its key participants. Without that, your project will be prone to scope crawl or random changes in the requirements. 

Step 2: Analyze Needed Resources 

Evaluate the feasibility of the project execution plan by assessing its technical, economic, operational, and schedule viability. This analysis helps the project manager determine if the project execution plan is possible and provides insights into potential risks and constraints related to its business goals. In other words, check whether your company has what it takes to execute the project successfully. 

Step 3: Identify Key Stakeholders

Identify all individuals, groups, or organizations who have an interest or will be affected by the project. That may include stakeholders, project sponsors, or a project manager. If possible, choose a single product champion on the customer’s side to oversee the project execution plan. This will be their representative responsible for making critical decisions and communicating with your team throughout the project. 

Step 4: Define a Project Scope

It’s time for project leaders to prepare a final outline for the project, also known as project scope — critical for all project execution plans.

This document should clearly define the boundaries and extent of the project, specifying what is included and what is excluded, ensuring a common understanding among team members and stakeholders. In other words, it should be a governing document for your key activities.

Step 5: Work Breakdown Structure 

Separate the project into smaller tasks using a hierarchical structure. Start with major project deliverables and break them down into subtasks until the work is granular enough to effectively plan and execute every project task. If you want a general overview of your project, we recommend dividing it into stages ending with significant milestones to create more general team plans.

Step 6: Project Schedule 

Establish a timeline for the project by determining task dependencies, estimating durations, and sequencing activities. Use resource management software — like BigTime Foresight — or tools to visually represent the necessary elements of the schedule, including start and end dates, milestones, and critical path analysis.

Step 7: Resource Allocation

Identify the skills and availability your employees will need to complete each task or activity in the project execution plan and choose the task owner. Ensure that you have the necessary resources for the job and that their available capacity will be sufficient to cover the needs of a new project at its projected start. Do this before you assign people to tasks — otherwise, your operations will be prone to schedule conflict! 

Step 8: Risk Mitigation

Conduct a thorough risk assessment to identify potential risks, uncertainties, and obstacles that may impact the project’s success. Make sure your project execution plans meet all the contractual requirements and that you have the resources required for it to succeed. Verify whether its goal statements align with the responsibilities you have assigned in your resource management software in the previous step and the due dates you have set for the projects in question. Develop strategies to mitigate, minimize, or respond to each risk, ensuring proactive risk management throughout the project lifecycle.

Step 9: Monitoring and Reporting

Determine how project progress, performance, and adherence to the plan will be monitored and controlled. Define key performance indicators (KPIs), establish reporting mechanisms, and set up regular project reviews to assess progress and make necessary adjustments. In other words, specify what a successful project is in your case.

Step 10: Refining the Project Execution Plan

Review and refine the project execution plan. Seek feedback from relevant stakeholders, project team members, and subject matter experts. Review the project execution plan for completeness, clarity, and feasibility. Incorporate any feedback or suggestions and refine the plan accordingly.

Can I speed up the creation of an execution plan? 

As you can see from the steps for creating a project execution plan, the majority of its steps cannot be recreated in Excel — or, at least, it would be very time-consuming. That’s why leading professional services companies conduct the entire project in a single software like BigTime Foresight. 

What can BigTime Foresight do for me? 

BigTime Foresight is a comprehensive resource management tool that can help you stay on top of your project from start to finish using an interactive project execution plan. Using the tool, you can: 

• Estimate the amount of time needed to complete the project. 
• Verify whether your company has enough resources available for the project and its budget. 
• Define a project scope. 
• Create a project schedule and allocate resources to it. 
• Monitor the progress of the project, as well as the performance of your whole business.
• Make data-driven decisions based on information updated in real–time, and automatically turn them into reports. 

Ready to get started?

Recommended for you

How to Prevent Overutilization in Professional Services Companies

June 2019 BigTime Product Release

Revenue Recognition Software: 6 Key Questions Answered

Mobile Menu Overlay

The White House 1600 Pennsylvania Ave NW Washington, DC 20500

FACT SHEET: President   Biden Takes Action to Protect American Workers and Businesses from China’s Unfair Trade   Practices

President Biden’s economic plan is supporting investments and creating good jobs in key sectors that are vital for America’s economic future and national security. China’s unfair trade practices concerning technology transfer, intellectual property, and innovation are threatening American businesses and workers. China is also flooding global markets with artificially low-priced exports. In response to China’s unfair trade practices and to counteract the resulting harms, today, President Biden is directing his Trade Representative to increase tariffs under Section 301 of the Trade Act of 1974 on $18 billion of imports from China to protect American workers and businesses.   The Biden-Harris Administration’s Investing in America agenda has already catalyzed more than $860 billion in business investments through smart, public incentives in industries of the future like electric vehicles (EVs), clean energy, and semiconductors. With support from the Bipartisan Infrastructure Law, CHIPS and Science Act, and Inflation Reduction Act, these investments are creating new American jobs in manufacturing and clean energy and helping communities that have been left behind make a comeback.   As President Biden says, American workers and businesses can outcompete anyone—as long as they have fair competition. But for too long, China’s government has used unfair, non-market practices. China’s forced technology transfers and intellectual property theft have contributed to its control of 70, 80, and even 90 percent of global production for the critical inputs necessary for our technologies, infrastructure, energy, and health care—creating unacceptable risks to America’s supply chains and economic security. Furthermore, these same non-market policies and practices contribute to China’s growing overcapacity and export surges that threaten to significantly harm American workers, businesses, and communities.   Today’s actions to counter China’s unfair trade practices are carefully targeted at strategic sectors—the same sectors where the United States is making historic investments under President Biden to create and sustain good-paying jobs—unlike recent proposals by Congressional Republicans that would threaten jobs and raise costs across the board. The previous administration’s trade deal with China  failed  to increase American exports or boost American manufacturing as it had promised. Under President Biden’s Investing in America agenda, nearly 800,000 manufacturing jobs have been created and new factory construction has doubled after both fell under the previous administration, and the trade deficit with China is the lowest in a decade—lower than any year under the last administration.   We will continue to work with our partners around the world to strengthen cooperation to address shared concerns about China’s unfair practices—rather than undermining our alliances or applying indiscriminate 10 percent tariffs that raise prices on all imports from all countries, regardless whether they are engaged in unfair trade. The Biden-Harris Administration recognizes the benefits for our workers and businesses from strong alliances and a rules-based international trade system based on fair competition.   Following an in-depth review by the United States Trade Representative, President Biden is taking action to protect American workers and American companies from China’s unfair trade practices. To encourage China to eliminate its unfair trade practices regarding technology transfer, intellectual property, and innovation, the President is directing increases in tariffs across strategic sectors such as steel and aluminum, semiconductors, electric vehicles, batteries, critical minerals, solar cells, ship-to-shore cranes, and medical products.   Steel and Aluminum   The tariff rate on certain steel and aluminum products under Section 301 will increase from 0–7.5% to 25% in 2024.   Steel is a vital sector for the American economy, and American companies are leading the future of clean steel. Recently, the Biden-Harris Administration announced $6 billion for 33 clean manufacturing projects including for steel and aluminum, including the first new primary aluminum smelter in four decades, made possible by the Bipartisan Infrastructure Law and the Inflation Reduction Act. These investments will make the United States one of the first nations in the world to convert clean hydrogen into clean steel, bolstering the U.S. steel industry’s competitiveness as the world’s cleanest major steel producer.   American workers continue to face unfair competition from China’s non-market overcapacity in steel and aluminum, which are among the world’s most carbon intensive. China’s policies and subsidies for their domestic steel and aluminum industries mean high-quality, low-emissions U.S. products are undercut by artificially low-priced Chinese alternatives produced with higher emissions. Today’s actions will shield the U.S. steel and aluminum industries from China’s unfair trade practices.   Semiconductors   The tariff rate on semiconductors will increase from 25% to 50% by 2025.   China’s policies in the legacy semiconductor sector have led to growing market share and rapid capacity expansion that risks driving out investment by market-driven firms. Over the next three to five years, China is expected to account for almost half of all new capacity coming online to manufacture certain legacy semiconductor wafers. During the pandemic, disruptions to the supply chain, including legacy chips, led to price spikes in a wide variety of products, including automobiles, consumer appliances, and medical devices, underscoring the risks of overreliance on a few markets.   Through the CHIPS and Science Act, President Biden is making a nearly $53 billion investment in American semiconductor manufacturing capacity, research, innovation, and workforce. This will help counteract decades of disinvestment and offshoring that has reduced the United States’ capacity to manufacture semiconductors domestically. The CHIPS and Science Act includes $39 billion in direct incentives to build, modernize, and expand semiconductor manufacturing fabrication facilities as well as a 25% investment tax credit for semiconductor companies. Raising the tariff rate on semiconductors is an important initial step to promote the sustainability of these investments.   Electric Vehicles (EVs)   The tariff rate on electric vehicles under Section 301 will increase from 25% to 100% in 2024.   With extensive subsidies and non-market practices leading to substantial risks of overcapacity, China’s exports of EVs grew by 70% from 2022 to 2023—jeopardizing productive investments elsewhere. A 100% tariff rate on EVs will protect American manufacturers from China’s unfair trade practices.   This action advances President Biden’s vision of ensuring the future of the auto industry will be made in America by American workers. As part of the President’s Investing in America agenda, the Administration is incentivizing the development of a robust EV market through business tax credits for manufacturing of batteries and production of critical minerals, consumer tax credits for EV adoption, smart standards, federal investments in EV charging infrastructure, and grants to supply EV and battery manufacturing. The increase in the tariff rate on electric vehicles will protect these investments and jobs from unfairly priced Chinese imports.   Batteries, Battery Components and Parts, and Critical Minerals   The tariff rate on lithium-ion EV batteries will increase from 7.5%% to 25% in 2024, while the tariff rate on lithium-ion non-EV batteries will increase from 7.5% to 25% in 2026. The tariff rate on battery parts will increase from 7.5% to 25% in 2024.   The tariff rate on natural graphite and permanent magnets will increase from zero to 25% in 2026. The tariff rate for certain other critical minerals will increase from zero to 25% in 2024.   Despite rapid and recent progress in U.S. onshoring, China currently controls over 80 percent of certain segments of the EV battery supply chain, particularly upstream nodes such as critical minerals mining, processing, and refining. Concentration of critical minerals mining and refining capacity in China leaves our supply chains vulnerable and our national security and clean energy goals at risk. In order to improve U.S. and global resiliency in these supply chains, President Biden has invested across the U.S. battery supply chain to build a sufficient domestic industrial base. Through the Bipartisan Infrastructure Law, the Defense Production Act, and the Inflation Reduction Act, the Biden-Harris Administration has invested nearly $20 billion in grants and loans to expand domestic production capacity of advanced batteries and battery materials. The Inflation Reduction Act also contains manufacturing tax credits to incentivize investment in battery and battery material production in the United States. The President has also established the American Battery Materials Initiative, which will mobilize an all-of-government approach to secure a dependable, robust supply chain for batteries and their inputs.   Solar Cells   The tariff rate on solar cells (whether or not assembled into modules) will increase from 25% to 50% in 2024.   The tariff increase will protect against China’s policy-driven overcapacity that depresses prices and inhibits the development of solar capacity outside of China. China has used unfair practices to dominate upwards of 80 to 90% of certain parts of the global solar supply chain, and is trying to maintain that status quo. Chinese policies and nonmarket practices are flooding global markets with artificially cheap solar modules and panels, undermining investment in solar manufacturing outside of China.   The Biden-Harris Administration has made historic investments in the U.S. solar supply chain, building on early U.S. government-enabled research and development that helped create solar cell technologies. The Inflation Reduction Act provides supply-side tax incentives for solar components, including polysilicon, wafers, cells, modules, and backsheet material, as well as tax credits and grant and loan programs supporting deployment of utility-scale and residential solar energy projects. As a result of President Biden’s Investing in America agenda, solar manufacturers have already announced nearly $17 billion in planned investment under his Administration—an 8-fold increase in U.S. manufacturing capacity, enough to supply panels for millions of homes each year by 2030.   Ship-to-Shore Cranes   The tariff rate on ship-to-shore cranes will increase from 0% to 25% in 2024.   The Administration continues to deliver for the American people by rebuilding the United States’ industrial capacity to produce port cranes with trusted partners. A 25% tariff rate on ship-to-shore cranes will help protect U.S. manufacturers from China’s unfair trade practices that have led to excessive concentration in the market. Port cranes are essential pieces of infrastructure that enable the continuous movement and flow of critical goods to, from, and within the United States, and the Administration is taking action to mitigate risks that could disrupt American supply chains. This action also builds off of ongoing work to invest in U.S. port infrastructure through the President’s Investing in America Agenda. This port security initiative includes bringing port crane manufacturing capabilities back to the United States to support U.S. supply chain security and encourages ports across the country and around the world to use trusted vendors when sourcing cranes or other heavy equipment.   Medical Products   The tariff rates on syringes and needles will increase from 0% to 50% in 2024. For certain personal protective equipment (PPE), including certain respirators and face masks, the tariff rates will increase from 0–7.5% to 25% in 2024. Tariffs on rubber medical and surgical gloves will increase from 7.5% to 25% in 2026.   These tariff rate increases will help support and sustain a strong domestic industrial base for medical supplies that were essential to the COVID-19 pandemic response, and continue to be used daily in every hospital across the country to deliver essential care. The federal government and the private sector have made substantial investments to build domestic manufacturing for these and other medical products to ensure American health care workers and patients have access to critical medical products when they need them. American businesses are now struggling to compete with underpriced Chinese-made supplies dumped on the market, sometimes of such poor quality that they may raise safety concerns for health care workers and patients.   Today’s announcement reflects President Biden’s commitment to always have the back of American workers. When faced with anticompetitive, unfair practices from abroad, the President will deploy any and all tools necessary to protect American workers and industry.  

Stay Connected

We'll be in touch with the latest information on how President Biden and his administration are working for the American people, as well as ways you can get involved and help our country build back better.

Opt in to send and receive text messages from President Biden.

Why Register?

You will be able to access:

Content tailored to your personal preferences, Favorite content saved within your briefcase, Media advisories, newsletters, and email alerts and PR contact information

Forgot Password

Enter your email below and we'll send a link to help you access your account.

Sorry, your email address is not recognized.

An email has been sent.

Instructions on how to reset your password have been sent to the email you entered.

FORD  NEWSROOM

United States | English Select a location

Ford Media Center