An effective strategic plan is one which benefits the stakeholders of an owner-managed business by stating and accomplishing goals acceptable to each owner of the business. Ineffective plans conflict with an owner's values and cause tension and conflict between owners. If there is no strategic plan or if the plan is not effective, the progress of the business toward its goals will be encumbered to the point that the success of the business may be jeopardized. In drafting the strategic plan, the work that is done in forming goals acceptable to all owners is essential to the effectiveness of the plan and success of the business.
For each owner to agree with and support a strategic plan (express or implied), the goals of the plan should appear to that owner to enhance the owner’s sense of well-being, including a sense of self fulfillment. This comes from the axiomatic observation that if one exercises personal choice in the management of resources in harmony with core values, one will likely experience a sense of self-fulfillment and personal well-being. For a plan to accomplish that sense of personal well-being and self-fulfillment for each owner, that owner must perceive that the plan has been formulated in accordance with that owner’s values.
Where values are not defined or articulated, owners will still have a sense of what they are. Plans (express or implied) which conflict with the owner's values will not seem right and not be satisfying to the owner. Most owners are only vaguely aware of the standards and concerns that compose their personal value systems. Most unthinkingly embrace an array of normative standards to which they assume most people adhere. Few have consciously attempted to resolve the tension that inevitably arises when those standards and concerns conflict with the expressed or unexpressed goals of the business.
Generally owners spend very little time discussing goals, instead there are assumptions declared: "we all want to make as much money as we can" or "this is what we have always wanted." Most owners, even if they develop a strategic plan, are not able to articulate values statements that will communicate what are acceptable goals. The formulation of effective goals comes only after a candid discussion between owners who are articulating their values with clear value statements and through that process accomplish the formulation of strategic goals acceptable to all owners.
The ability to engage in a discussion to set strategic goals resulting in an effective plan depends on whether the owners can define their values and then articulate their values in values statements.
To define values each owner should think about the core values that are important to the owner. A core value is a normative principle that informs and shapes thoughts, desires, feelings, choices, and behavior. A core value is not a preference, but an enduring and essential attribute of character. The following are words describing commonly-held core values and examples of words describing attributes within a core value: integrity – honesty, sincerity, authenticity, dependability, stewardship, and personal responsibility; security – self-reliance, self-determination, self-actualization, prudence, health, education, comfort, acceptance, power, and prestige; and beneficence – philanthropy, gratitude, respect, tolerance, generosity, compassion, service, and justice. A values statement provides information about conduct based upon the core values.
To bring clarity and order to the owner’s personal value system, the owner must reflect on the circumstances and experiences that have informed and shaped the owner’s perspective of life, including hopes, fears, and resolutions. The product of this reflection should be discussed with others as is appropriate and memorialized in writing. The writing should be reviewed and altered from time to time to reflect changing circumstances and perspectives.
For the group effort of the owners to plan based on values, each owner must be able to articulate values statements. To be clear, the owner is not enabling strategic planning if the owner announces that the business should be conducted in an ethical manner. While this is a values statement, a values statement more relevant to strategic planning is: “I have made a commitment to my spouse to be out of the business in five years.” This is a complex and important values statement that must be articulated in the planning process. If the business plan includes a provision to retain the present ownership for ten years, there will be a conflict for that owner, and there will be resulting tension between owners.
Each owner should define that owner's value system and articulate that value system with values statements in conversations regarding the conduct and ownership of the business. These conversations will result in increased understanding about the values and feelings of the other owners. These discussions will indicate whether the owners should be in business together and what the strategic goals might be that are acceptable to all owners' values. The plan emanating from this process will receive the full support of all owners and be effective.
