Your Annual Plan Isn’t Working. Try a Six-Quarter Walk Instead.
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We have about six weeks left in the year. Right now, everyone’s got their heads down putting together their 2023 budget.?
You too?
That’s great, except a budget isn’t the same as a strategic plan. And there are a lot of problems with this kind of operational planning.
For starters, it’s primarily focused on what you’re going to spend over the next 12 months –– not actions. And it’s incredibly inflexible. You’re basically stuck with it until your next annual planning cycle.
So you better brush up on your crystal ball reading skills! Given how volatile the environment is right now, figuring out the plan –– not to mention all the contingencies and changes – isn’t an easy task.
But you do need a plan, especially in a large organization. So what should you do instead?
Introducing the six-quarter walk
The six-quarter walk is a different approach to strategic planning that extends beyond 12 months to 18. It includes six quarters ––?not just four.
But this isn’t your long-term strategy that outlines where you want to be three, five, or 10 years from now; it’s a shorter-term horizon to execute against.?
It’s also detailed. You might not have every single execution point fine tuned, but the high-level quarterly goal should be just as detailed in Q6 as it is in Q1. It’s a challenge, sure, but 18 months isn’t so far away that you can’t imagine what things will look like.
And here’s the fun part: At the end of the first quarter, you go through the planning process again and extend your plan another quarter so you always have a rolling 18-month plan.
If you’re thinking, “This sounds like a lot of work!” let me assure you it doesn’t have to be. You already have the detailed plans. You know the interdependencies. You know where you ended up at the end of Q1. All you’re doing is adjusting for a new reality or a new baseline. You know what worked and what didn’t, so you can update your entire plan to reflect that knowledge.
One of the most important parts of a six-quarter mile walk is transparency. Everyone in your organization needs to see and understand the plan. Everyone has to know what they’re working toward. Everyone’s on the walk together, which creates organization-wide accountability and agility.?
I’m a huge advocate of a six-quarter walk, and there are more advantages than disadvantages. But there are some drawbacks you should be aware of before you jump in.
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Pros and cons of a six-quarter walk
As I mentioned, a six-quarter walk keeps everyone aligned and on task, working toward the same goal. No one is asking, “Why are we doing this?”
This type of planning also highlights areas where help is needed. You can see if someone is falling behind or if a department is having an issue with an initiative. But because everyone is on the walk together, they can support each other.?
And it keeps the jack rabbits in check. (You know, the people who see a great opportunity and want to jump on it right away, even though it doesn’t fit into the six-quarter plan.) They might be right –– it is a great opportunity –– but you can point to the plan and remind them, “This is when we’re going to do that. This is when we’ll be ready.” And at the end of every quarter, there’s an opportunity to review if and how to shift things around.?
The biggest disadvantage of a six-quarter walk is that it takes time to set up in the beginning. But you’re already planning 12 months out –– you just have to add another six months on. And it’s much easier to update because you’re walking it forward, one quarter at a time.
A six-quarter walk can save you a ton of grief, as long as you’re consistently updating your strategy, your operational plan, and your budget on a regular basis.
So how do you get started?
Three tips for creating a six-quarter walk
The beauty of the six-quarter walk is its flexibility. You’re not stuck trying to adjust your existing 12-month plan if a big change, like a pandemic, or a small change, like inflation, happens.
Here are a few tips for extending your plan to 18 months:
Remember it’s a living, breathing document. Yes, there is a big push to create the initial six-quarter walk. But after that first planning session, you’re simply updating one quarter of your plan based on what’s changed. Hopefully, you’re just updating a few things, but sometimes you will have to make wholesale changes if a big seismic event happens. And that’s okay –– your plan is a living, breathing document that’s constantly evolving.
Just like our livestream schedule! ?? We’ll return to our regular schedule after Thanksgiving. I’ll see you on Tuesday, November 29 at 9 am PT for a great (and timely!) conversation about giving.?
Your Turn
How do you handle strategic planning? Do you get everyone together? Or is it just one person creating the plan and asking for input? I’d love to hear what you include in the process and how far in the future you look. Please share your thoughts in the comments –– I look forward to hearing from you!
This newsletter is sponsored by Workplace from Meta, where culture and technology come together to create a more productive future of work. Check out www.workplace.com/future to learn more.
Partner at PA Consulting | Public Sector | People & Workforce
2 年Really liked this Charlene Li - always been a fan of a balance between a deliberate and emerging plan, and this strikes a pragmatic balance between the two ????
Inspiring commercial growth with leading global corporations
2 年Charlene - some great perspectives here and very timely too!
freelance
2 年??????
密歇根软件实验室的联合创始人和管理合伙人。福布斯科技委员会成员。财富 500 强公司的 Frequest 作家和演讲者。
2 年Really good stuff. Thanks for sharing.
Helping others learn to lead with greater purpose and grace via my speaking, coaching, and the brand-new Baldoni ChatBot. (And now a 4x LinkedIn Top Voice)
2 年Great idea Charlene Li Think beyond the boundaries of tradition, e.g. 6 rather than 4 q's. It opens up new possibilities.