In brief
- A strategic plan becomes useful when it helps the organization make choices.
- Directors and management need a shared understanding of priorities and tradeoffs.
- The board should be able to recognize progress and revisit assumptions.
- Management needs enough clarity to translate direction into everyday work.
What the plan needs to resolve
A planning process can produce an impressive document and still leave an organization unsure what to do next. The goals may all be worthwhile. The harder question is which deserve attention first, especially when money, time, and capacity are limited.
That is where the board and executive team need a real conversation. They may agree on the mission but have different views about growth, services, investment, or the pace of change. A useful plan brings those differences into view.
Make room for the difficult choices
Before polishing the language of the plan, consider the questions it needs to answer. These can provide a starting point:
- Direction. Whom are we trying to serve, and what difference do we want to make?
- Priorities. Which goals deserve the greatest share of our attention and resources?
- Tradeoffs. What will we need to do less of, delay, or stop?
- Progress. What would help us understand whether our choices are working?
The answers may take time. If directors use the same words to mean different things, it is worth finding that out while the plan is taking shape.
A plan is useful when it helps people choose what to do next.
Give directors a useful discussion
A board can only weigh choices it can see. Material that presents a single recommendation without the alternatives may leave directors debating details while the bigger decision goes unexplored.
Give the discussion a clear question, a fair view of the alternatives, and space for uncertainty. A director who raises a concern may be identifying an important assumption. The chair’s role is to help the group understand that concern and decide what to do with it.
Keep the choices visible
After the discussion, check that the board and executive team understand the priorities in the same way. Record the choices and their implications clearly enough that someone who missed the meeting could follow the reasoning.
Then use those choices. Bring them into budget discussions, proposals, and reviews of progress. When circumstances change, the plan should give the board a basis for reconsidering its direction.
About the author
Dan Liutikas
Dan Liutikas is Boardpath’s founder. A former chief executive of the International Legal Technology Association and chief legal officer at CompTIA, he works with boards and executive leaders on decisions, governance, and their working relationships.
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