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Writer's pictureAlbert Durig

Mindsets for Transformational Strategy Planning

Transformational planning provides companies with the ability to respond to market dynamics with strategic thinking, growth, sustainability, highly relevant action, and flexibility. Different from traditional approaches to strategic planning and execution, Transformational planning requires a few changes in our beliefs and mindsets surrounding strategy planning.


What follows are eight key mindset shifts we recommend in order to successfully embrace, implement and maximize the value of Transformational planning.


1. Far Sighted/Near Sighted: From “Planning occurs annually in line with our fiscal year and commitments.” to “Planning occurs quarterly to quickly manage our business towards a desired future that we can sustain.” The very first and most tangible shift required to engage in Transformational Planning is the shift from planning annually to planning quarterly. This in turn shifts the planning and execution rhythm from quarterly business reviews to weekly execution meetings, monthly business reviews and quarterly strategy planning. This shift enables a faster response to market dynamics and a sharper focus on short-term achievement that moves the business through phases on its way to achieving long-term goals and desired future.


2. Looking Back and Reacting/Looking Forward and Responding: From “Lagging indicators tell me how we are doing” to “Leading indicators tell us when to act.” Traditional strategy planning is about making choices around where to focus energy and resources to achieve specific measurable goals. However, most traditional planning looks back using lagging indicators to determine what needs to change in order to achieve goals. Even goals are set based on what they were previously. Transformational Planning requires looking forward and identifying triggers that highlight movement to be responded to or led by one’s efforts. Transformational Planning looks forward in every way using leading indicators that show thresholds and tipping points that indicate change in approach is necessary.


3. Goal Oriented/Trigger Oriented: From “Goals are set to be achieved by strategies.” to “Strategies evoke triggers that move us towards our desired future state.” Transformational Planning places goals as the long-term view towards sustainability. However, instead of developing strategies to achieve long-term goals, Transformational Planning defines internal and external triggers that mark the occasion for change in strategy. In this way, strategies are created when pre-determined triggers mark the appropriate moment for change and shift in approach.


4. Profit/Sustainability: From “Planning should focus on profit.” to “Planning should focus on sustainability.” Growth in revenue and profit are evergreen objectives for business. In fact, these two metrics define the practice of capitalism. However, due to the increase in speed, disruption and change, sustaining a business has become an equally important concern. Transformational Planning never loses sight of growth in revenue and profit but focuses on managing business in the present with an eye on the short-term outlook. This allows business to respond faster and with greater flexibility while transforming to lead versus only adapting to change. This requires an eye on sustainability for the long-term.


5. KPI/OKR: From “Key Performance Indicators (KPIs) measure activity we need to track” to “Objectives and Key Results set ambitious goals and define tactics to achieve them.” Traditional planning often defines KPIs to drive action and track progress against their achievement. As such, KPIs are usually focused on measuring the past. In Transformational Planning, Objectives and Key Results (OKRs) set the focus on more ambitious short-term goals wherein teams are left to define how to achieve them. The result is a faster paced approach with greater empowerment to move business towards its desired future state.


6. Victim/Player: From “It’s not my fault” to “How can I respond to this situation.” Having a mindset of responsibility really means focusing on one’s ability to respond in the face of challenge or in the face of any situation. Surely a useful mindset for life in general, it is essential for Transformational Planning wherein focusing on responding to market dynamics and internal changes via triggers. Transformational Planning is a response-based endeavor that puts the focus on how best to respond regardless of the situation. It calls on this mindset continuously. The enemy of Transformational Planning is a focus on factors outside of one’s control.


7. Knower/Learner: From “I know what’s best and if you don’t agree, you are wrong” to “I have knowledge and believe other’s point of view may be complimentary.” Like the shift from victim to player, Transformational Planning requires being open and flexible. Certainty in one’s way and knowledge will be continuously challenged when engaging in Transformational Planning. One must move from knowing with certainty to knowing with curiosity. Through curiosity, Transformational Planning continuously seeks to learn and apply.


8. Fixed/Growth: From “My abilities, intelligence and talents are fixed traits. I am the way I am, and my intelligence cannot change.” to “My abilities, intelligence and talents can grow and change. Agile planning is all about learning and applying new knowledge in a dynamic environment that is short-term focused. As a result, any time spent in a fixed position regarding one’s potential or a company’s potential is going to hinder the planning process.

The promise of Transformational Planning is greater flexibility, resilience, and a faster ability to respond and lead the market. Transformational planning allows business to learn how to transform itself so as to be sustainable in its growth verses only adapting to change in order to keep up with competitors. Success in the deployment of Transformational planning requires more than implementing a new process. It requires shifting the way we think about planning timeframes, the indicators we use to drive our decision making, the role of goal setting, sustainability, measurement, our sense of responsibility, and the role of learning to drive strategic choices. These do not have to be difficult shifts to make, but not making them is not an option if you want to succeed in Transformational Planning.

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