So what separates those who are struggling to survive and those who are achieving their performance goals? It’s the ability to adapt business models to take advantage of market opportunities. These opportunities exist in every market, even a down cycle.

Who would argue that in this down cycle we have seen companies emerging stronger—usually by NOT playing by the rules that everyone else seems to follow? Apple, named by Fast Company as the Most Innovative Company last year, continues to pull away from the pack with the launch of the iPad and by broadening distribution for the iPhone.

What concerns keep leaders from developing a clear plan that will help them overcome the “business gravity” they encounter?

1. I already have a plan

Usually, the plan consists of a list of objectives, operating enhancements and sales goals based on a SWOT analysis. While those are all valuable to help companies survive day to day, they do not provide strategic direction or organizational alignment.

Creating these “plans,” in the absence of strategy, is one of the reasons companies average only a 25 percent ROI on growth initiatives. There are often too many initiatives not tied to a direction, resulting in a rifle shot instead of a laser. Many confuse strategy with strategic implementation. For example, The Rockefeller Habits is a great book on improving focus within your current business model, and I recommend it for that purpose. However, it does not help you determine if your objectives are helping you achieve your strategy. If you are excelling at an outdated business model, you will eventually fail.

2. It is not the right time

Like having children, there is never a good time. Yet it is one of the most important things we can do to ensure that everything else we are doing has value. If you are devoted to implementing a tactical project—a new ERP system, bringing new employees onboard or launching a new product—without knowing how they fit into your overall vision and growth plan, you may be spending a lot of time and money less productively than you thought. Strategy should guide these decisions, not be pushed out as an afterthought.

3. It costs too much

Like everything else, you get what you pay for. If you want to produce a great strategy, spend the resources (time, people power, professional support) to do it right. The great thing about a strategy is that you don’t do it every week, every month or even every year. You devote time to getting it right and then updating it.

The really great thing is that spending on strategy development generates a return on investment larger than any other project. And don’t forget there is an opportunity cost—if you put it off, you are delaying the potential reward. You can never recover the period of time you could have been moving forward, achieving higher performance and reaping the reward. NPV (net present value) is alive and working with regard to your strategic return.

Finally, this is the future of the company. Put this work in the hands of the best minds, internally and externally.

4. Who can plan in this environment?

The uncertainty and volatility of the environment means that business models are becoming outdated faster, and markets that we serve are changing forever. We are the emperor with no clothes if we feel we can keep doing what we have always done only harder and faster, or just wildly guessing what will work!

The worst faux pas of all is to copy competitors because there is a reasonable chance it won’t work for them either, and even if it does, it may not be the right thing for YOU. Companies that are succeeding have dynamic plans with high-level strategy that they adapt as the market evolves. I guarantee that Apple, Southwest Airlines, Facebook and other strong performers know who they are, why they succeed and whom they serve, and continue to innovate their offering using those key strategic insights.

5. We are doing well

Awesome. Like any successful entity, great football teams or companies, none of us can afford to get complacent. Champions get one night to celebrate and then go back to practice the next day.

Companies that get lulled by success and turn it into habit get blindsided by new approaches. Most retail businesses that have a viable digital alternative are struggling with the changing business model in their industry, and some of the big players are not proving agile enough to respond—rental movies, social communication, newspapers, books, etc.
In fact, one of the most challenging aspects of business growth (and least understood) is that companies need to start on their next big revenue-generating concept when the current one is raking it in.

As you know, the business development cycle says that you reach the peak of success just before your business becomes mature, multiple competitors create price pressure and your products turns into a commodity. If you wait until then to innovate, it may already be too late. Those who develop a clear strategy and can cite what is next when they are at the top today are in the best position to grow long term.

6. We are just trying to survive

Survival is often not possible without a vision of what you are trying to achieve. It is often no more than a placeholder for a slow slide to oblivion. If you are a business on the brink, you have no choice but to think differently. Because you are not going forward and might be headed backward, you are already at high risk; planning will reduce that risk. No company needs a strategy more than those in “survival mode.”

7. We have never needed a plan before

Congratulations. However, the market has forever changed, and this journey we call business will need to change with it. The pace of change has picked up to an incredible whirlwind. Never has the collective brain trust of your employees and stakeholders, including customers, been more important to incorporate into your success.

To achieve maximum growth, superior execution and high performance, a clear plan, written or not, must be widely understood and communicated. Not having a plan invites chaos, creates a lack of accountability, and puts an undue burden on leadership that they will always have the answers. A company cannot achieve its potential in that setting.

8. It has never helped before

Chances are, if you feel that way, you have not had a strategic plan (see No. 1) or it was not executed well. In fact, studies show that most plans fail to realize their full value due to being under-resourced and not well implemented. Surveys show most executives feel at a loss of how to put the company back on track to achieve their plan, feeling that they don’t have the skill set. (This is when hiring a professional will help!)

A good plan has three parts:

• Discovery or learning about the market opportunities that your company can uniquely capitalize on.
• Development of the strategy.
• Delivery or developing the implementation plan that corresponds with the strategy so everyone knows what is getting done, who is accountable, where the resources are coming from and what they can expect from leadership. It requires an extraordinary commitment to clear and constant communication.

9. Plans are only for big companies

Large companies do have plans—agreed. Yet they suffer from many of the same challenges listed here. They don’t always succeed in implementing their plans.

Frankly, while big companies must create plans and execute them well, it is even more critical for small and medium-size companies. There are fewer resources available, so proper allocation is even more critical. Smaller firms have a higher risk of extinction, so they need to be even more vigilant of lowering risk by having a clear plan for themselves, their key stakeholders and partners like bankers, investors, customers and employees. A great plan can help a small company grow exponentially.

10. I don’t know where to start or how to create a strategic plan

A very honest concern. Anytime we are learning a new skill—such as playing piano or improving wellness—the key is to start. A little is better than none.

Books can be a good source of information, but there are over 200 different techniques for planning, and they are all not created equal. None is a silver bullet. A good choice is a membership program where you can begin to educate yourself and pick up useful tips, often for pennies a day. Often, a professional can get you on the right path and transfer skill in this area along the way.

The important thing is to realize strategy is a skill and the ability to be a strategic leader can be acquired. It is a journey, not a destination, and the important thing is to begin.

Take the first step, and commit to developing a plan now. Identify an accountability partner, internal or external, to ensure it happens.