Happy New Year! What Are You Planning for 2014?

Happy New Year! What Are You Planning for 2014?
New Year’s resolutions, they are often the incentive for bad jokes and big New Year’s sales (think gym memberships, workout equipment and self-help books).  Yet, as we enter the New Year, many people do take time to reflect on how their past year unfolded and to think about plans, goals, and changes they want to make in the coming year.

Businesses should do the same, taking the time at the end of their calendar year (or fiscal year if it is not the same) to review and assess both their long-range strategic planning and their short-term operational goals.  Companies that consistently run their daily operations according to a strategic end game generate more revenue, are more successful and, ultimately, attain the most value for their accounts, whether in a complete exit, full or partial account sales, or through a dealer program.

Building a high-value business requires both a clear long-term strategy and well-defined short-term operational goals consistent with that strategy.  One without the other usually results in internal confusion, lack of focus, and generally poor performance, from your employees and the company as a whole. When combining the two planning elements, your long-term strategy allows you to set a path based on your company’s vision, mission, and values. While using a map – your short-term objectives or milestones provide guidance, validation, and metrics to gauge your company’s success.

Strategic Planning for the Long Term. Through strategic planning, your company establishes a long-term plan to achieve your specific mission by identifying a set of long-range objectives. These objectives function not only as goals but, once met, as evidence that your strategy is working and is the right one for you. Ideally, your strategic plan envisions your company over an extended time horizon – three to five years, or more.  The strategic plan determines where your company is currently and identifies where you want your company to go, based on your values, vision, and mission.  It details how you will get there.  And it provides benchmarks for how you and your management team will know when you have arrived.

Short-term Operational Planning. To accomplish your company’s long-term strategic objectives, you must also develop and implement a short-term operational plan.  The purpose of your business is to generate value.  For you and your company, that’s both revenue in the form of recurring monthly revenue and the value of your accounts and your business to a purchaser.  For your customers, that’s excellent service.  Your company creates this value and achieves the objectives in your strategic plan by setting and meeting short-term goals or milestones (from one to 12 months out) through your day-to-day business operations.   Your short-term goals function not only as objectives, but also evidence of your success as your achieve your long-range strategic objectives.

What’s your plan for 2014?
While there is no right way to develop your long-range strategic plan or your short-term operational goals, as you begin planning for 2014, you might want to think about a few basic questions, including:

• What is your personal and business mission?  What are your visions, values, and goals?
• What are your concrete objectives for the long and short-term?
• What challenges do you anticipate this year?
• Do you have a tentative timeframe for your business plan and your operational objectives?

Another year is upon us, we at Alarm Capital Alliance would like to extend warm holiday wishes to our colleagues and friends for a wonderful holiday season and a happy, healthy, and prosperous 2014!