Accomplishing something complex without a plan can be challenging – especially running a business. Yet, some financial institutions have never created a strategic plan. Imagine trying to build a house without a blue print. That’s pretty much what these financial institutions are doing. They are trying to build a business and a brand without any type of plan to guide them.

Strategic planning, when done well, is extremely effective. It provides specific direction, defines strategies to support that direction and helps the organization determine how to spend money and allocate staff effectively.

Strategic planning not done well is a different story. Usually, ineffective planning happens when leaders fall into certain traps or subscribe to common myths about the right way to do planning.

Myth: We just have to get through the next few days and planning will be over

Truth: Strategic planning is an every-day affair

Your strategic plan should be in action every day your financial institution’s doors are open for business. That doesn’t mean you are sitting in a daily meeting planning strategy. It means you are carrying out the goals and actions defined during your annual planning session. It means your board is reviewing those goals and actions monthly or quarterly and holding management accountable to the strategy developed during that annual session.

Strategic planning often fails, not because the strategy is unsound, but because nobody bothers to follow-through with the strategy once the planning session is over. That’s when the real work begins. That is when you put ideas into motion. If nobody at your financial institution does this, there’s no point in planning at all.

Myth: Planning is only for executives or managers

Truth: Proper planning involves every employee

Executives and managers may make the final decisions, but they can’t possibly decide what is in the best interest of your financial institution, its employees and its customers or members without input from those people. It just can’t happen.

Ask employees what processes work and what needs improvement at your financial institution. Encourage them to offer solutions. If your strategy includes something massive like replacing your core processor, involve the people who use that system in discussions prior to your planning session. Find out how a major change will impact their jobs. Consider the time needed to train them on a new system. All of that ties in to your strategy. The more input you receive before you make a decision, the more support you will get from employees when it’s time to implement that decision. Making decisions in a vacuum slows progress and often hinders it altogether.

Myth: Your strategic plan must remain top secret.

Truth: Communicate your strategy and goals to every employee at your financial institution.

Employees cannot execute your strategy if they don’t know what the strategy is and how their jobs contribute to it. Everyone’s job description and goals must tie back to your strategic plan in some way. If it doesn’t, you don’t need them.

Communicate your strategic plan to every employee. Do it in a big meeting or delegate managers to communicate with the people who report to them. Each employee needs an explanation about how their job ties to your financial institution’s strategy. Their performance and goals should directly support some part of the plan, and that is how they should be evaluated on their annual performance reviews. Everything should tie together.

Construction workers cannot build a structurally sound house with a solid foundation unless they all have access tothe same blueprint and understand their role in the project. The same is true of your financial institution’s strategic plan. Get input. Communicate plans to your employees and remember that planning done well is planning that happens every day your doors are open for business.