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According to Peter Wright of The Planning Boot Camp: when we take executive teams through an exercise to create a 2-3 year practical vision, they are visibly uneasy. If they commit to a vision of the company only 8-12 quarters away, real plans will need to be underway within a few months just to be on track. This sense of urgency is the best reason to keep planning horizons short. Bridging the gap between strategy and execution is difficult, and a vision that is both practical and compelling is the best foundation. A vision should drive the articulation of an organizations most crucial priorities, its strategic imperatives, as well as a solid plan for how to achieve those priorities. Without that short, practical vision, turning strategy into action is almost impossible. There is one important caveat: strategic planning, in particular vision statements should never have a horizon that is too short. A vision for an organization that is only 12 months away, for example, is likely unrealistic, and can cause a sense of hopelessness. This can be just as damaging to successful execution as a vision that is too long. There is a place for a very high level, longer term strategic vision for your firm, but dont let it be a substitute for a practical vision and strategy that will be the drivers of real action. Keep your business planning horizon between 2-3 years to create plans that are practical, compelling, and stand a fighting chance of execution. |
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