The thought of corporate planning can lead to some strong objections.  CEOs frequently say things like 'we don't have time to plan' or 'we have to be nimble, so we can't plan'.  

These objections to planning expose a critical lack of understanding.  Planning saves much more time than it uses, and being nimble doesn't mean you can't plan - it just gives the company and the leadership team a way to hold each other accountable for the things they feel are crucial for the success of the company.  Most importantly, it can help you avoid getting distracted by every new shiny object - this is actually the reason many founders and leaders resist planning.  They like new, shiny objects.

What Planning Actually Does

Planning is actually a simple process. At its core, regular company planning gives you the ability to:

• Establish the 2 or 3 most important goals you have as a company for the next quarter
• Come to an agreement on the key activities needed to achieve these goals
• Set up a way to hold everyone accountable for the first two bullets

After the planning session is complete, your leadership team will know what goals and activities are most important for the company.  One of the most powerful aspects of planning is that it makes prioritization discussions and tradeoffs more objective and less emotional. The team will be able to hold each other accountable as they work towards the goals because they were agreed upon as a group.

How to Hold a Planning Session

For a planning session to be effective the leadership team must dedicate time to it - ideally an entire day. This time should be free from distractions and should allow the team to focus solely on the task of planning.  It is often useful to have someone separate from your organization who is also skilled at facilitating planning sessions work with you because an outsider can help mediate emotional discussions and disagreements, as well as keep you on track. A part time CMO is a great choice for this job.

The topics covered during a planning session line up with the key items discussed above.  A typical agenda includes:

• Review of previous quarter's performance towards goals
• Identification of 2 or 3 key goals for the next quarter
• Discussion of the key activities needed to achieve these goals
• Document the initiatives that will help you work through those activities
• Discussion of the financial plan for the next quarter

Holding a planning session each quarter is ideal, but it can still be effective every six months or even annually.  Planning and goal setting is a skill like any other, and you and your company will get better at it over time.  It is common to miss goals when you begin the process but if you keep with it, you will improve your goal setting skill and start to see significant movement in your business.

Emily Slatkavitz is a freelance writer at Kettle Hole Partners. In her free time, she enjoys hiking with her dog and trying new recipes.