How does your department determine it's strategy for the upcoming year? If you operate like most companies, you review the previous year's initiatives, look at how you fared against budget, discuss what worked well and why, and agree on the strategic initiatives and budgets for the year ahead.

In other words, it's a process based on past performance.

Your track record as a team or department of course is an important indicator to keep in mind, but it shouldn't form the starting point or be a limiting factor for future strategies. The saying "if you do what you've always done, you'll get what you've always gotten" springs to mind.

When facilitating strategy sessions, we take a different approach. We start with determining what is possible under ideal circumstances; i.e. what is your max capacity in terms of production? delivery? sales? product development? marketing? We then work with our clients to set a BHAG (Big Hairy Audacious Goal, Jim Collins), and only then do we look at what could get in the way ... and how to overcome each barrier.

The difference?

With the traditional model of conservative goal setting based on historic performance, companies often get stuck setting safe targets of 5 - 10% growth year on year  (based on market conditions). Setting goals based on what is possible introduces a whole new dynamic. The goals become more optimistic, more challenging; the awareness of the potential barriers more real; and the mindset to overcome these barriers more determined.

So what is the key to setting exciting but achievable BHAGs? Ensure that your people have ownership and skin in the game. We help our clients determine what this looks like. What is the carrot that would leave your people excited and motivated rather than feeling that you're just expecting more and more without anything in it for them. 

What is your strategy for the year ahead?