Steps for Strategic Planning Success

Strategic management accounting (SMA) is the gathering and analysis of the financial and nonfinancial information of a company and its competitors to develop that organization’s corporate strategy.

It is not shocking that the concentrate of the SMA mirrors the characteristics recognized as significant in strategic management; that is, a longer term focus, the environment external to the company and a prospect instead of traditional perspective. This emphasis contrasts with the traditional concentrate of the management accounting.

Strategic management accounting addresses weaknesses in traditional management accounting. The modern marketplace requires a strategic focus to be applied to management accounting information and decision making.

Although strategic planning is generally applicable to the goals and objectives of an organization, it does not always have to be about in business matters. It may also get along with personal career growth. Thus, if the person is an owner of an accounting company seeking to take advantage on new market opportunities or an most up-to-date tax professional looking to make own space in the industry, these five steps for strategic planning success should be considered.

Defining specific objectives

Change occurs if the goals are perfect, therefore it is essential to make sure that the goals are SMART—Specific, Significant, Achievable, Practical and Time-bound. Such as, “Raising consulting revenue $150,000 by December 31, 2017” is a decent goal, but just saying, “Increasing consulting revenue” is not.

It is important too to consider the time to write down the goals. Written goals increase accountability—and that is important if the goals are personal or team-based.

Organizing the team

The need for creating a team to accomplish particular goals is normally overlooked. Teams must be well balanced, especially from a work style point of view, and each member should be aware of their role and what they are responsible for.

If it is about creating a development plan, this step still is true, but rather include a “team” of people who are able to support in reaching the goals (i.e., a mentor, leaders out there, etc.).

Developing metrics

When the goals are known, it’s essential to build milestones and benchmarks into strategy. Such as, if a company trying to move to an advisory-based model, maybe it tries to increase consulting earnings by specific increments each quarter. These kinds of metrics are essential as to measure progress toward the objectives. They also help to see where adjustments need to be made or where more focus is required. Reviewing metrics at regular intervals ensures that team remains on track to fulfilling the goals.

Aligning marketing tactics

With regards to firm-wide goals for progress, strategies of customer outreach are an essential area of the complete plan. Determining the prospective audience and choosing the ways in order to connect with them. While direct mail campaigns and email blasts are absolutely effective techniques, but more innovative marketing strategies should be considered, like establishing a following on a social media platform, focusing on leads at their industry events, or starting a affiliate campaign. Using metrics to comprehend what marketing techniques are worthy of spending some time and cash on, and which usually are not.

Gathering feedback — and applying it

As working via the strategic planning process, must be sure to build in systems for feedback, whether it is from clients, associates or management. Should not hesitate of constructive criticism and being sure to become versatile enough to adjust to recommendations and make changes to the plan where and when they are required. This is applicable not just in organizations, additionally, to personal plans.

Making the effort to formulate an extensive strategic plan is what sets the pathway for a successful execution. With a powerful strategic plan, ensuring to remain on the right track to meet—and potentially exceed — objectives.