What Techniques Do You Use to Prioritize Initiatives in Strategic Planning?
CorporateStrategy.io
What Techniques Do You Use to Prioritize Initiatives in Strategic Planning?
In the complex world of corporate strategy, prioritizing initiatives is key to success. We've gathered insights from CEOs and Business Analysts on how they tackle this challenge. From considering time in strategic planning to focusing on enterprise value enhancement, explore the top four techniques these professionals use to prioritize their strategic plans.
- Consider Time in Strategic Planning
- Use the Eisenhower Matrix
- Apply the 80/20 Analysis
- Focus on Enterprise Value Enhancement
Consider Time in Strategic Planning
Prioritizing initiatives takes more than an estimated ROI. Time is a huge factor. If it takes months to see results, the payoff matters less than a smaller win early on. This is especially true for newer companies with less budget room.
When I'm considering strategic movements that drive Bemana toward its goal, I like to think about the timeline generously. One thing I've learned is that completion dates are always an estimate, and deadlines are made to be broken.
This realism allows me to properly prioritize initiatives that will pay off when I need them.
Use the Eisenhower Matrix
One way I prioritize tasks is by using the Eisenhower Matrix. I sort tasks into four groups: urgent and important, important but not urgent, urgent but not important, and neither urgent nor important. This helps me focus on what really matters and use our resources wisely. I start with urgent and important tasks to meet immediate needs and also plan for the future. This method keeps our goals clear and easy to follow.
Apply the 80/20 Analysis
One technique I’ve found invaluable for prioritizing initiatives in our strategic plan is what I like to call the '80/20 analysis.' The idea is to identify the 20% of actions that will yield 80% of the results. I apply this by evaluating which initiatives are likely to bring the most value or resolve the most pressing challenges we face. By focusing on these high-impact areas, we're able to allocate resources more effectively and ensure that our efforts are concentrated on what will drive the firm forward. It’s about working smarter, not harder, and making sure that every move we make aligns with our long-term vision.
Focus on Enterprise Value Enhancement
Prioritize what would be important to you if you were looking for a buyer for your business.
Focus on what drives enterprise value first. These would be projects that enhance the company's USPs and drive value through IP, be it product development or systems that give your company an unfair advantage. Prioritize systems development, deskilling processes, and establishing robust procedures you can package as IP for your company.
By thinking about a sale of your business, even if it's not on the table, you force yourself to concentrate on what truly makes the company valuable. Streamlining operations, reducing dependency on critical individuals through deskilling, and implementing systems that make your business more autonomous—these initiatives increase the company's overall worth and pave the way for a more independent and self-sufficient business.