How can you measure the success of a strategic plan?

These KPIs are indeed quite effective in reflecting the organization's performance. I would like to suggest adding an "S" to make them SKPIs, signifying Sustainable Key Performance Indicators. Many strategic plans tend to be short-term in nature, typically spanning three years or so before they are considered completed. SKPIs offer a valuable approach to planning that extends beyond the immediate strategic plan, aiming to support the long-term success of the business. Consider the examples of GE and Microsoft for a moment and reflect on how short-term gains don't necessarily guarantee long-term success.

I would place the customer at the core of the stakeholder mapping, ensuring that all actions are designed with the customer in mind, both in the present and the future. The customer is the primary reason for the existence of the business, not an interruption to it.

Two more significant matrices are, (a) Customer. Customer Satisfaction is something very critical to measure. Conduct surveys or feedback to gauge customer satisfaction and loyalty. Also, Customer Retention, where you monitor the rate at which you retain existing customers and Market Share, where you track changes in your market share compared to competitors. All are essential to reshape your strategy. (b) Compliance and Risk Management: This can be seen in two ways. Regulatory Compliance, to check and ensure that the organisation is adhering to relevant laws and regulations and Risk Mitigation, to assess whether the plan has effectively reduced or mitigated identified risks or not. The compliance requirement here is is non-negotiable.

Here are additional ways to gauge the effectiveness of a strategic plan: 1. The numbers matter; analyze financial indicators to assess return on investment (ROI) and cost reduction to assess the plan's impact on the organization's financial health. 2. Evaluate employee engagement and retention rates to understand the plan's impact on the workforce. Higher engagement and reduced turnover are often good indicators of a successful strategy. 3. Track the progress and successful completion of key projects or initiatives outlined in the plan to ensure that execution aligns with strategic goals. 4. Evaluate the enhancement of employees' skills and capabilities through training and development programs listed in the strategic plan.

One key element that I've consistently observed being overlooked, and which can potentially derail any strategic plan, is the availability and readiness of the workforce's skills. In parallel with the business strategy, it's crucial to establish a people strategy that ensures the availability of talented individuals capable of sustaining both current and future growth.

Strategic plans can be considered a success if.... > It's achieved with the planned resources and within the planned budget > If there is a consistent and sustainable growth > if the Employee Experience(EX) has been exceptional while achieving the Strategic plan. > if the Customer Experience (CX ) has been WOW while achieving the Strategic plan