Where are you going?

Quick Insight

Defining your purpose, vision, and mission will create the boundaries for all the decisions that follow. Many people don’t think they need a strategic plan because they know what they need to do. What they don’t have is clarity on what they shouldn’t do.

Purpose, vision, and mission are crucial.  One of my favorite quotes is, “When your vision is clear, the decisions are easy.” Defining your purpose, vision, and mission will create the boundaries for all the decisions that follow. 

For example, I was the CFO of a community health center that also provided transitional housing.  The mission of the company said nothing about transitional housing.  That was a need in the market the company had decided to help address.

The transitional housing was a constant distraction from our core healthcare mission.  We decided to exit transitional housing so we could focus on our core mission. 

Many people don’t think they need a strategic plan because they know what they need to do. What they don’t have is clarity on what they shouldn’t do.

Your strategic plan says what you will focus on, so it’s clear what you won’t do.  Many people don’t think they need a strategic plan because they know what they need to do.  What they don’t have is clarity on what they shouldn’t do.  These are the things that will distract them and cause them to be unfocused and inefficient throughout the year.  Worse, they could cause a massive shift of resources away from a better investment.

A vision statement is a short summary of what you want your company to look like in 5-10 years. It explains how your company will support your personal aspirations.  A mission statement is a short summary of how your company will achieve that vision. Specifically, it states who your company serves and what it does for them.

Do you, your customers, and your employees clearly know the goal of your company (i.e., where it’s headed) and how you are going to get there?  That’s what a mission and a vision statement provide. You may have never considered how powerful that would be for marketing to customers and to guide employees.

I wish you easy decisions from a clear vision. I wish you well.

- Rob Stephens

Further Insight

CFO Perspective Resources

  • Video: KPIs And Strategic Planning - KPIs are most effective when they’re integrated into your strategic planning process. I’ll explain how KPIs fit into a strategic planning process. I’ll cover the critical items you need in your strategic plan to make KPIs more effective, and the 6 questions a strategic plan should answer.
  • Course: ACE - Strategic Planning for Small Businesses - Small business strategic planning should quickly lead you from defining where you are going to deciding how to get there. Getting there takes a well-built strategy and implementation plan. Get planning and management tools with the basics of how to use them.

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