SMEs AND CORPORATE STRATEGIC PLANNING

Ask any CEO anywhere in Nigeria if they have a corporate strategic plan and the answer you get is hmmmmm and ooooooh.

Some will end up saying no, while others will outrightly lie to you and say yes. Ask the liars to work you through the plan and the arrogant ones will end the meeting right there.

I call them activity CEOs or CEO for show. This folks are so lazy mentally that they cannot even brainstorm for one hour talk less of sitting down for five hours daily for two weeks to craft a clear direction for their businesses. They prefer activities to strategic planning.

This same CEOs will not start a building construction without first getting a solid plan to ensure safety and durability of the structure. A business is not different from a building construction.

This is the reason we don’t have a lot of the likes of the recently passed Group Managing Director/CEO of Access Bank Plc; Herbert Wigwe CFR. Tony Elumelu CFR comes to mind when one thinks of a businessman in Nigeria that is highly strategic in his approach to doing business. He may have started as the chief marketing officer (CEO) of UBA Plc, but today he oversees the strategic direction of all his businesses that span many industries.

3 reasons why SMEs lack strategic plans;

1. Busy CEOs: No doubt, the CEOs of startups are usually very involved in the day to day running of their businesses and as such may not have time to think and plan the next step for the business. The solution to this challenge is delegation. CEOs who cannot delegate effectively end up with a small and stagnant business.

2. Lack of strategic planning skills: Some CEOs are not skilled at developing strategic plans and may not be interested or patient enough to develop the skills. Outsourcing such planning to a consultant will solve the challenge of lack of strategic planning skills.

3. Lack of budget for strategic planning: SMEs often lack adequate capital to finance outsourcing strategic planning to consultants who are professionals in churning out excellent plans in record time. Outsource to freelancers who are cheaper or better still employ someone good with writing strategic plans.

Benefits of strategic planning for SMEs: There are basically 4 major benefits SMEs with corporate strategic plans enjoy;

1. Clarity: a corporate strategic plan serves as a roadmap that guides the CEO and his team on the direction to take the business. Confusion is the roadmap that guides a company with no strategic plan.

2. Product-market fit: some companies are struggling just because their product are not needed in the market where they operate. A good plan will help solve the problem of product-market fit as products are tested before launch.

3. Good corporate structure: Good corporate structure enhance seamless team work and high productivity. Most companies without a clear plan are either overstaffed or understaffed.

4. Market dominance and high revenue: Marketing is the soul of most businesses because marketing differentiates companies in the same industries. Lazy marketing which is a product of lack of strategic planning precedes low revenue.

Just like the old saying goes; “He that fails to plan, plans to fail.” In fact today, he that fails to plan has failed already.