Sustainable business success originates from an executable strategic plan. However, creating a strategic plan does have a price tag. The underlying business strategy is to realize a positive return on investment (ROI) by quickly achieving specific and aligned organizational goals.
Business owners to executives have a plethora of resources from which to select the type of strategic plan along with the numerous business coaches, business consultants or national training organizations who can help them to create strategic plans. Yet, most of the outside resources fail to deliver a quick positive return on investment.
The creation of a strategic plan has 3 costs: money, time and results. When analyzing the cost of a strategic plan, each of these costs should be reviewed and compared.
- Money
- Time
- Results
A recent review of a national seminar offering strategic planning 3 day to 2-day workshops indicated a cost ranging between $2,000 and $1,500. These dollar costs do not include travel, lodging along with salaries.
When compared to business coaches or consultants offering strategic planning on site or off site with fees ranging from $3,000 to $10,000 and up, the national seminars appear to be the best deal, buy are they?
Research suggests that a one time exposure to a learning event. If there are not additional opportunities for performance that being the application of learning, then the money spent whether $1,500 to $12,000 is moot. This is why most traditional training offered through a 2 or 3 day event fails to deliver a positive return on investment.
How much time does it take to create an executable strategic plan? From my experience has a business coach, this ranges from 20 to 30 hours to create the plan and then another 10 to 20 hours to monitor the plan so that the business goals are achieved. Two day to three day traditional training seminars or retreats fall short of the basic time necessary to develop a solid strategic plan. Also, these off site locations do not allow the participants time to do complete the necessary research or answer specific questions necessary to operationalize the strategic plan.
What results are you getting from the traditional approach to strategic planning? First, the origins of the word strategy mean as a general to deceive the enemy. In today’s world, that means to out think and simultaneously out perform the competition.
From the initial meeting, a good strategic planning process will begin to deliver immediate results. Additionally every strategic plan should contain a strategic action plan that is everyone works from on a daily basis. In this way the results are almost continuous.
When a strategic plan is created off site in a few days, the likelihood of immediate results has been greatly diminished because of this learning structure. By crunching some numbers, we can immediately see the advantage for a longer planning cycle
A 3 days event probably means 6 hours per day planning or a total of 18 hours at an investment of $2,000. Adding in 3 nights of lodging, meals and miscellaneous experiences results in at least another $600. The hourly rate for this seminar per participant is at least $145.00. And what results or deliverables do you have from such an investment?
Comparing a 10-week (3 hours per week) on site with 6 monthly follow-ups suggests at least 39 hours. Since there are no travel costs, the hourly rate based upon a $5,000 fee is $128.45. And the results are a tangible, active, dynamic and interactive strategic plan that is being executed every week ensuring measurable outcomes.
Given that most national seminars require payment up front and do not offer a money back guarantee, this becomes a win win for them and a potential lose lose for your firm. If you charge the costs, then your hourly rate has just increased not to mention the charges for any other costs. However, if you can locate a strategic business coach who provides a money back guarantee in some format and will work with you by offering non-traditional forms of payment, then what makes more sense?
If you are deciding to seek some help in the creation of your strategic plan, congratulations. Just make sure that you have analyzed ALL the costs and have a better idea of your potential ROI.
Leanne Hoagland-Smith, M.S. is a business coach who specializes in strategic planning with offices in Indianapolis and near Chicago. She writes, speaks and coaches people in businesses to quickly double results through the creation of an executable strategic plan.
One quick question,if you could secure one new client or breakthrough that one roadbloack holding you back from success, what would that mean to you? Then, take a risk and give me, Leanne, a call at 219.759.5601 to experience incredible results.
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