Welcome to the 31st edition of The Pulse, your bi-weekly newsletter of Insights for Strategy Leaders. And welcome to all of the new subscribers since the last edition!
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Why 2025 Planning Must Be A Priority
Last week was a big one for us here at Elate.
In addition to co-leading a webinar on Strategic Planning Framework Best Practices, I also had the opportunity to travel to Chicago for an annual summit hosted by one of our favorite investors (shoutout M25!).
The webinar was a smashing success (here's a recording), and the summit is something I look forward to every year. One thing I love about both is that they give me a better sense of what’s happening in the broader economic landscape and macroeconomic sentiments.
At the Summit, I met folks ranging from early stage venture capital investors to some of the world’s largest private equity firms, and a range of people in between. The webinar, on the other hand, gave us direct visibility into what’s happening at organizations and the challenges Strategy and Operations Leaders are facing today.
Yet, as exciting as last week was, there was a pronounced sentiment I felt in many of the conversations I had with investors, strategy and operations leaders, and founders - uncertainty. 😐
Now, let me stop right here - I’m not going to lament uncertainty, how it complicates everything, or even debate whether it is real or perceived. In my mind, it is what it is. Some markets are feeling acute pain due to current conditions, while others aren’t feeling nearly as much of the squeeze.
And I’m happy to connect one-on-one with anyone to discuss the specific challenges they are facing.
However, what became apparent to me is that if Leaders and markets are feeling a sense of uncertainty, you know who is definitely feeling that tenfold?
Employees.
If you are feeling uncomfortable with market dynamics or clarity on where your organization is heading, rest assured your employees are feeling it too.
And look, this statement isn’t just a theory. We work with hundreds of Strategy and Operations Leaders and have helped shape thousands of Strategic Plans across industries, ranging from Fortune 100 organizations to professional sports teams, universities, manufacturing companies, and high-growth software companies.
We’ve seen it all. 👀
Without a doubt, we see that employees - whether they’re individual contributors, front-line managers, department leaders - are craving clarity, transparency, and an understanding of how their work aligns with the organization’s strategy. 💫
But this presents a truly unique opportunity for Strategy and Operations Leaders.
In the past, employees might not have cared as much about the overall strategy or how their work connected to the organization’s direction. But that couldn’t be further from the truth today.
Today, Strategy and Operations Leaders have the opportunity to bring direction and clarity to employees that are craving it.
Employees want to understand how to prioritize their time ⏰, what initiatives truly move the needle for the organization, and what operating rhythm they can expect for how teams are accountable for delivering what they commit to.
And Strategy and Operations can, and frankly should, provide that for them.
During last week’s Strategic Planning Framework Best Practices session, one attendee asked, “How far do you recommend rolling out Elate within an organization?”
Bluntly - we want every eye in Elate. We want every employee to understand their organization’s vision, mission, and values, as well as the strategy to bring that vision to reality.
That said, this transformation won’t happen overnight.
In fact, we encourage every organization we work with to take a phased approach that starts with building a foundation at the Leadership level. This foundation requires three things:
- Commitment from Leadership
- Clear Strategy Aligned with Your Operating Plan
- Agreed Upon Operating Rhythm/Cadence
Of course, there are nuances and additional factors that contribute to success, but it starts with these principles.
Leadership must be committed to a process. If Strategic Planning and the governance of the strategy have been afterthoughts in the past, the culture needs to change. The leadership team must collectively acknowledge that continuing the status quo, or making decisions based on the "fire of the week," isn’t sustainable.
Your Strategy is the connective tissue between your operating plan and the steps to achieve it. While we often talk about bringing together long-term vision with tactical execution, I’d put it even more directly: Strategy is the plan that empowers your organization to hit the Operating Plan commitments made to your Board of Directors, shareholders, and other stakeholders.
Lastly, you need to define ‘what comes next.’ Too many organizations build a killer strategy during planning season, one that cohesively connects to hitting operating targets, but then fail to keep it top of mind. They might have weekly Leadership meetings and hope that’ll suffice. But I promise you, just having meetings on the calendar isn’t enough. You need a defined cadence, with clear expectations and expected outcomes, as you head into 2025.
Once you’re in the thick of it, it’s too late. ❌
I’ll wrap up with this...
Last week while at the summit, I had one Private Equity Partner ask me, “How many companies are good at Strategic Planning? It seems like most of our companies are really bad at it.”
I shared that while some companies are bad at Strategic Planning, no question, many are actually good at it.
Where companies often fall short is in the three areas I outlined above:
- Commitment from Leadership
- Clear Strategy Aligned with Your Operating Plan
- Agreed Upon Operating Rhythm/Cadence
Because these are the hard things.
The tough conversations that hold people accountable to their commitments.
The diligence to build a strategy that actually drives outcomes, not just outputs, and connects directly to your operating plan.
And finally, the persistence to maintain your operating rhythm, even when Leaders complain.
Committing to these three areas will not only make your organization better at Strategic Planning, but it will also serve your employees by giving them the clarity they need in times of uncertainty.
For those who want to make 2025 planning a priority, or who want to learn more about how we bring this to life, I’d love to connect. Feel free to send over a note or find time with our team today.
-Brooks
