Your 21st-Century Business Requires a 3-Year Snapshot
A three-year plan is a critical component of the long-term planning for any business. Why a three-year plan, specifically? Why not really dig in and develop a traditional five-year plan?
The answer is that, in just the last decade, the speed of business has increased to such a degree that tactical planning beyond three years is simply impractical. Things change quickly in the 21st century, and a three-year plan is the ideal sweet spot.
A solid outline of goals for the coming three years also gives you a framework for developing your one-year plan; we’ll be talking about that soon. But let’s first discuss what it takes to create an ideal three-year plan.
1. Define your essential numbers.
As with any goals, the objectives of your three-year plan must be measureable. Bring your leadership team members together and answer these questions:
- What will your revenue be?
- What will your profit be?
- What specific “measurables” will indicate your level of growth?
When you ask these questions, you’ll initially get a wide range of answers. The projections your team gives for revenue and profits will strongly indicate each team member’s expectation for the speed and scope of growth they expect.
Measurables are tangible indicators of your growth. They may be the number of clients or customers you will support, new products you want to add, or widgets you produce in a quarter.
Once you see the range of numbers the leadership team offers, work toward a compromise that looks realistic to everyone. This part of the exercise will not just help get everyone on the same page, but will also energize your team as they start to see a clear path toward the future.
2. Paint a new business picture.
Next, you’ll want to spend time with your team envisioning what the business will look like in three years, based on what you are measuring.
Your business picture should include personnel, added resources, office environment and size, what your operation looks like from top to bottom, product and client mix, and so forth. Write down details like:
- Size of the office and number of employees by department
- Description of the software or technology your operations will require
- List of the products you have now and those you want to offer
- Account of the sales and pricing for current and future products
- Details of the marketing and customer service efforts
- Description of your supply chain and fulfillment operations
It’s important to get really specific because this is the vision that will drive your actions through the next three years.
3. Put it all together.
Now, put the measurements and business picture together to create a complete view of what your organization will look like in three years. The bullet points now become descriptors of your business, and this vision is what the team will strive toward over the next three years. All your team members should be able to close their eyes and see that vision clearly.
Once your team members can all see the same vision, you’ll discover they are excited to get moving and make it happen. They’ll be ready to dig in and see that vision gain traction over the coming months.
