It was Albert Einstein who said that, “the definition of insanity is doing the same thing over and over again and expecting different results.” Perhaps some of us have fallen into the same rut as we face a local economy that isn’t providing the growth that seemed to be a constant a short time ago. We do nothing different and wait for things to get better. Or perhaps we’ve done the opposite - to offset a drop in sales, some have jumped into new products or markets. Only time will tell which path was the correct one to take. However, without performing a thorough strategic evaluation of your business, any success will likely be the result of plain luck. Instinct alone is not sufficient to ensure survival, especially in these turbulent times.

Before beginning the strategic planning process, you may need to change your mind set. Instead of considering your business to be in “survival mode” you need to envision it as one that is going to thrive. That doesn’t mean that you should set unrealistic expectations, rather focus on truly succeeding. You need to re-energize yourself and those around you.

The first step is to reassess your vision for the company. What will it look like in the future? This is not just an exercise to wordsmith a new mission statement that sounds and looks better on corporate stationery. This is a process of examining every aspect of your business. You need objective information about what is and isn’t working. You should consider (a) products or services, (b) staff, (c) customers, (d) competition, and (e) financial resources. Where are you leaking oil?

One of the most effective ways to do this is through the use of a SWOT analysis (strengths, weaknesses, opportunities, and threats). Don’t perform this in a vacuum. Whether you obtain information from within your own organization, a trusted business associate, or paid expert(s), you should seek input from people who can provide you with a combination of creativity, pragmatism and knowledge. Beyond the talent that they offer, you need them to express their thoughts and opinions openly. Through this process you need to listen more and talk less. The group must understand that you value their honesty and that constructive criticism is not only welcome but crucial.

Assessing your vision through a SWOT analysis is not something that can be accomplished over lunch or as an agenda item for a weekly staff meeting. Typically, the sessions are conducted away from the work place and may consist of more than one meeting, depending upon information that needs to be gathered. It is critical that conclusions are reached based on objective data. Once you have condensed all the ideas and input from the group, several major themes will surface to help you assess the vision for the future of your company.

The results of the SWOT analysis will likely lead you down one of two paths: closing your doors or moving your business forward with renewed passion and insights. If the conclusion is to sell or close the business this should not be considered a failure. It will be a transition perhaps to a new career, a new locale or retirement. A true failure would be to not recognize the inevitable and continue to “throw good money after bad.” Hopefully, you have discovered the oil leak (or leaks) and are now prepared to fix them. Caution: Don’t just concentrate on the oil leak(s). Make sure your plans include ongoing maintenance on the rest of the engine that is performing well..

To implement your plan, outline your strategies, tactics and goals. Strategies are major areas of focus that are critical to achieving the vision. Tactics are the tools used to accomplish the specific strategy. Goals are established to measure progress. For instance, the vision of a sporting goods store may be to become the largest supplier of sporting equipment in southwest Florida. A strategy may be to offer the widest selection of fishing rods, reels and accessories. A tactic may be to sponsor a fishing tournament. A goal would be to increase sales of rods and reels by 10% within 90 days.

Take sufficient time to lay out your plans, but be prepared to be flexible and modify your plans and goals as you get into the process. Don’t over analyze and develop plans that are too detailed. The sooner you can implement, the better. Also key is to articulate clearly to your team and get their buy-in. Your goals should be a stretch, but they should also be realistic. Do not create an activity trap by setting too many goals to monitor and report. Pick four to six goals that are really important and report results routinely. Regular feedback to your team will encourage their efforts and keep them focused on the target.

Finally, assign responsibility and hold people accountable. If people are not performing to your expectations and you have provided the time and the tools for them to do so, you can ill afford keeping them on. These are very difficult decisions to make. However, not making needed changes sends the wrong message to those who are meeting their goals and ultimately jeopardizes the livelihood of everyone concerned.

Tips for successful implementation

• Walk the talk. As the head of the organization, everyone looks to you. Be committed to your plan. Be outwardly positive. There will be bad days but you will get through them. As the actor Michael Caine puts it, “Be like a duck; calm on the surface, but always paddling like the dickens underneath.”
• Be decisive. Too often, when companies experience a downturn, they announce a “hiring freeze.” This demonstrates no vision, no planning, and, most importantly, lack of leadership. Perform the steps outlined above and make the changes necessary to move the company forward. Cutting costs in an underperforming area provides resources that can be redeployed elsewhere.
• Do not confuse core values with sentimentality. If you stray from your core values, you will have a very difficult time succeeding. In the sporting goods store analogy, if you buy inferior clothing or no longer offer outstanding customer service, your hard earned reputation will quickly fade. If tastes or needs have changed, don’t hang on to products or services that are no longer in demand, even if it “hurts” to move on.
• Maintain professionalism and integrity. Even in the bleakest of times, you should be proud of your business. You have provided a livelihood for the people who have worked for you and sold products or services that your customers have valued. Hopefully, the reassessment of your vision and organizational priorities will breathe new life into your business. Some painful changes may need to be made with personnel. Every effort should be made to treat those being displaced with dignity and respect. Not only is it important for their self-esteem and the morale of those who remain, it says everything about you and the integrity with which you conduct your business.
• Be a good steward of your time. Evaluate how you spend your day and your week. Efficiency is critical. Evaluate whether activity traps have crept into your business. Use your time and that of your team wisely. Question processes when you hear the phrase “we have always done it that way.”
• Be creative. After you have laid out your plans, don’t think for a moment you are done. Keep your eyes and ears open, keep searching for a better way, get out from behind the counter, read, learn, and get involved in things away from work. Opportunity and inspiration are out there.
• Celebrate. It is easy to get wrapped up in the day-to-day challenges and stresses. As you move forward with your plans, celebrate every success. Whether it is the result of an individual’s performance or a team effort, celebrate with everyone. Buy lunch or take fifteen minutes and slice up a cake. Laugh. Build confidence through recognition of the abilities of each other. It will create a momentum that will continue to move your business forward.

We are experiencing an economy that is more difficult than most of us have faced in our careers. To survive in the current environment and then thrive as things improve, every business should perform a thorough assessment of its current vision and strategic plans. As hockey great Wayne Gretzky said, “Skate to where the puck is going, not where it has been.” It’s time to sharpen your blades and get back in the game!

James A. Warnken, CPA is a Senior Consultant with Markham Norton Mosteller Wright & Company, P.A. a certified public accounting and business consulting firm with offices in Naples and Fort Myers. He welcomes your comments and questions, and may be reached at (239) 261-5554.