One of our recent Balanced Scorecard students was struggling to develop performance measures. I wanted to help and so I asked to see their strategy and objectives. I was surprised when he said that he didn’t think it would be helpful, but then he pulled out a document that was dated 2014 and it became clear. Nothing the organization cared about today showed up in this ten-year-old document!
In today’s rapidly evolving strategic landscape, the strategies that once propelled your organization to success may no longer be effective. Markets change, customer preferences shift, and new competitors emerge, making it essential to keep your strategic plans relevant and responsive. But how do you know when it’s time to revisit your organization’s strategy? Below are five signs your organization might be due for a strategic planning refresh.
Your Goals or Objectives Feel Outdated or Irrelevant
If you’re still working toward goals set several years ago, they may no longer reflect your organization’s current priorities or the realities of your current strategic environment. Perhaps your industry has experienced a technological shift, or maybe customer expectations have changed. Maybe a strategy that made sense in the immediate post-COVID world is no longer appropriate. When your team feels disconnected from the goals in your strategic plan, it’s a clear signal that the plan needs updating. Refreshing your goals ensures alignment with today’s opportunities and challenges, allowing you to better meet customer demands and stay relevant.
Key Performance Indicators (KPIs) Aren’t Meaningful Anymore
I might be generous with the word “anymore” here – I have one client that came to us to help with their refresh, and they didn’t have ANY actual KPIs or Targets. KPIs serve as the compass for your strategic plan, helping you track progress and measure success. However, KPIs that no longer align with your objectives can hinder progress and leave you chasing irrelevant targets. If you find that your KPIs don’t effectively reflect business health or strategic goals, it’s time to rethink your measurement approach. A strategic planning refresh can help you redefine meaningful metrics that accurately capture and support your desired outcomes.
Employee Engagement and Motivation Are Declining
When employees don’t feel connected to the organization’s strategy, it can affect morale and motivation. Disengaged teams are often a symptom of an outdated or unclear strategic vision. If your employees are questioning the organization’s direction or lack enthusiasm about goals, a strategic planning refresh can provide a renewed sense of purpose. By involving teams in the planning process so that they can align their work with your goals, you can improve engagement and ensure everyone understands their role in achieving the organization’s vision.
Your Relevance Is Slipping
Does it feel like you are falling behind? Are competitors gaining ground if you are in the private sector? Or are you struggling to maintain relevance in the public sector? Whether it’s due to changes in the market, shifting customer preferences, or emerging technologies, a strategic plan that doesn’t account for these changes can quickly become obsolete. A refresh will help you evaluate your strengths and weaknesses in the current environment, reposition your brand, and ensure your organization remains competitive.
Decision-Making Feels Reactive Instead of Proactive
A strong strategic plan enables you to make proactive decisions and anticipate changes, rather than reacting to them as they happen. If your leadership team often feels caught off guard or overwhelmed by unexpected shifts, it’s likely because your current strategy isn’t flexible enough to respond to new challenges. A refreshed plan can help you build an agile framework for decision-making, allowing your organization to pivot effectively and stay resilient in a fast-paced world.
Ready to Refresh? Here’s What’s Next
If any of these signs sound familiar, it may be time to revisit your organization’s strategic plan. A well-executed strategic planning refresh will realign your goals with today’s realities, reenergize your team, and reinforce your competitive position. By investing in an updated strategy, you’ll not only navigate change more effectively but also set your organization up for long-term success.
Ready to take the next step? Our team of experts can guide you through a comprehensive planning refresh to help you achieve your goals. You can learn more about the strategy refresh process in our Balanced Scorecard Professional or Strategy Execution Certification Programs. Or, if you need support for your strategy refresh, contact us about consulting services.
David Wilsey is the Chief Executive Officer with the Balanced Scorecard Institute and co-author of The Institute Way: Simplify Strategic Planning and Management with the Balanced Scorecard.