Creating Your Dynamic Strategic Planning System: A Step-by-Step Journey
Hey there!
Your company probably spent thousands creating a strategic plan that probably nobody looks at. It's not your fault. And it's not your team's fault either. It's because almost every organization treats strategic planning exactly the same way, and that way is completely broken.
Let me show you what's happening, and more importantly, how to fix it.
The "Before" Picture: How Most Companies Do Strategic Planning Today
Let me paint you a picture of what happens in most organizations right now.
The Old Way Looks Like This:
In January, the leadership team create "THE PLAN." They write down their big goals like:
Increase revenue by 20%
Launch three new products
Improve customer satisfaction
Expand into two new markets
They make it look pretty, put it in a PowerPoint, present it to the board and the company. Everyone nods. It gets saved in a folder. And then... life happens.
By March, the plan is collecting dust. Nobody looks at it. When someone suggests something new, nobody checks if it fits the plan. When problems pop up, nobody asks "Does this change our strategy?"
By December, they look back and realize they forgot about half the things in the plan. Some goals didn't make sense anymore. Some opportunities they missed weren't even in the plan. But hey, it's time to do next year's planning, so let's start over!
Here's the flow of the old system:
Start of Year → Create Plan → Present Plan → Store Plan → Forget Plan → End of Year → Repeat
It's a straight line. Once you create the plan, it just sits there. There's no loop back, no checking, no adjusting.
What's Actually Happening Behind the Scenes?
The company is like a ship without a captain watching the sea. Things are happening all around: storms, other ships, changing winds, but nobody's adjusting the sails.
Markets are shifting, customers are changing what they want, competitors are doing new things, technology is advancing.… but the plan from January doesn't know about any of this. It's frozen in time.
My Thought Process: Why This Doesn't Work
Okay, so here's how I'm thinking about this problem from a systems perspective.
When I look at that old way of planning, I see a system with no feedback loops. It's like a body with no nervous system, you can't feel pain, you can't sense temperature, you can't react to danger.
Although we do not consider that everything is connected. Your sales affect your cash flow. Your cash flow affects your ability to hire people. Your people affect your product quality. Your product quality affects your customer satisfaction. Your customer satisfaction affects your sales. See how it all connects in a circle?
But the old planning system treats everything like separate boxes. It doesn't see these connections. It doesn't watch how changes ripple through the whole system.
So my thought is: What if we treated strategic planning like a living system that constantly senses what's happening and responds?
Building the New System: The "After" Picture
Alright, below I will explain to you how to build this new way, step by step.
STEP 1: Design Your Sensing System
Before you can respond to anything, you need to be able to sense it. Think of this like installing sensors all over your business. Just like your body has sensors for hot, cold, pain, pressure. Your business needs sensors for what's happening.
What This Looks Like:
Instead of waiting for the annual planning meeting to gather information, you're gathering information all the time. You're listening continuously.
Here's what you set up:
Market Sensors:
Weekly scan of what competitors are doing
Monthly customer feedback sessions (just pick 5-10 customers and have real conversations)
Quarterly trend analysis (What's changing in your industry?)
Internal Sensors:
Weekly team pulse checks (How are people feeling? What problems are they seeing?)
Monthly performance dashboards (Simple ones - not 50 metrics, maybe 5-7 key ones)
Quarterly capability audits (What can we do now that we couldn't do before? What can't we do that we need to?)
Let me give you an example:
Let's say you run a bakery. Your old way was planning once a year. Your new way looks like this:
Every Week:
You ask your staff: "What are customers asking for that we don't have?"
You check: "Are we running out of anything? Are we throwing away too much of anything?"
You peek at what the bakery down the street is doing
Every Month:
You sit with 5-10 regular customers and just chat: "What do you love? What would you change?"
You look at your sales numbers: "What's selling more? What's selling less?"
You check your costs: "What's getting more expensive?"
Every Quarter:
You look at bigger trends: "Are people eating more gluten-free? More vegan? More traditional?"
You assess your team: "Do we have the right skills? Do we need training?"
You see how you're constantly feeling the pulse of your business? You're not trying to predict the future. You're just watching what's happening right now, in real-time.
STEP 2: Create Real-Time Feedback Loops
Okay, now you're sensing things. But sensing alone doesn't help if that information doesn't flow back to affect your decisions. That's what feedback loops do, they connect what you sense to what you do.
Let me explain the two types of feedback loops you need:
Type 1: Balancing Feedback Loops (These keep you on track)
Think of a thermostat. When it gets too hot, it turns on AC. When it gets too cold, it turns on heat. It's constantly balancing toward your goal temperature.
In your business, this looks like:
Let's use our bakery example. You set a goal: "We want 50 customers per day."
Your feedback loop looks like this:
Goal: 50 customers/day → Current Reality: Only 35 customers today → Gap Detected: We're 15 customers short → Response: Let's do a special promotion tomorrow → Check Result: Did it work? → Adjust: Do more of what worked, stop what didn't → Loop back to the top
This loop runs constantly. Every day, you're checking, adjusting, checking again.
Type 2: Reinforcing Feedback Loops (These amplify change - good or bad)
These are like snowballs rolling downhill, they get bigger and bigger.
Examples of good and bad reinforcing loops.
You need to set up systems that amplify good loops and break bad loops before they spiral.
Here's how to connect your sensors to your decision-making:
Weekly Quick Checks (15 minutes with your team)
"What did our sensors pick up this week?"
"Any surprises?"
"Do we need to adjust anything small?"
Monthly Deep Dives (1-2 hours)
Look at trends from the whole month
Ask: "What patterns are we seeing?"
Make small strategic adjustments
Quarterly Strategic Reviews (Half day)
This is where you ask the big question: "Is our strategy still right?"
Not just "Are we hitting our goals?" but "Are these still the right goals?"
For Example:
Let's say in January, your bakery's strategy was: "Focus on wedding cakes because that's where the profit is."
But your sensors pick up something interesting in March, lots of people are asking for everyday celebration cakes (birthdays, promotions, etc.). Your monthly feedback reviews notice this trend growing.
By your April quarterly review, you have three months of data showing this shift. Now you ask: "Should we adjust our strategy? Maybe focus less on big weddings and more on small celebrations?"
The information flows in a loop from sensing → reviewing → deciding → acting → sensing again?
STEP 3: Build Strategic Learning Cycles
This is the heart of the whole system. Most companies ask "Did we hit our targets?" I want you to ask something much more powerful: "What did reality teach us about our assumptions?"
This is what turns your strategic planning from a static document into a learning system.
Here's the four-part cycle you run every quarter:
Part 1: What Did We Expect?
At the beginning of the quarter, you wrote down what you thought would happen. You made assumptions. Write them down clearly.
Example assumptions for our bakery:
"We assumed wedding season would bring 30 new wedding cake orders"
"We assumed our gluten-free line would be 10% of sales"
"We assumed hiring one more baker would increase our capacity by 25%"
Part 2: What Actually Happened?
Now look at reality. No judgment, just facts.
"We got 18 wedding cake orders, not 30"
"Gluten-free is actually 22% of sales, not 10%"
"The new baker increased capacity by 15%, not 25%"
Part 3: What Does This Teach Us?
This is the learning part. Why was reality different from our assumptions?
"Wedding cake orders were lower because... turns out couples are going for smaller, simpler weddings now"
"Gluten-free sales are higher because... we didn't realize how many people have dietary restrictions"
"Capacity didn't increase as much because... the new baker needs more training time than we thought"
Part 4: How Does This Change Our Strategy?
Now ask this question: "Given what we learned, should we change our plan?"
Maybe you decide:
Shift resources away from wedding cakes toward everyday celebration cakes
Invest more in gluten-free options and marketing
Create a better training program for new bakers
You're not saying "We failed to hit our targets." You're saying "Reality taught us something, and we're smart enough to listen".
This is what transforms your quarterly reviews from report cards into learning sessions.
Systems Map for Strategic Learning Cycle:
Systems Map for Strategic Learning Cycle
Notice it's a loop, not a line! It keeps cycling.
STEP 4: Create Scenario Playbooks
Here's where we get really smart. Instead of having one plan and hoping it works, we're going to create multiple playbooks for different possible futures. Then when reality unfolds, we're ready. Think of it like a chess player who thinks several moves ahead for different possibilities.
How to Build Your Scenario Playbooks:
Scenario A: Optimistic ("Everything Goes Great")
What if things go better than expected? What if the economy booms, customers love your new product, sales explode?
For our bakery:
What if we suddenly get flooded with orders?
What if a food blogger features us and we go viral?
Your playbook answers:
How would we handle double the orders?
Where would we get more supplies quickly?
Could we hire temporary help?
How would we maintain quality while scaling?
Scenario B: Pessimistic ("Things Get Tough")
What if things go wrong? Economy crashes, costs rise, sales drop?
For our bakery:
What if flour prices double?
What if foot traffic drops 40%?
Your playbook answers:
What costs could we cut without hurting quality?
What products have the best margins to focus on?
Could we pivot to delivery/shipping?
What's our absolute minimum to survive?
Scenario C: Wild Card ("Something Unexpected Happens")
What if something totally unexpected happens?
For our bakery:
What if a huge competitor opens next door?
What if a food safety issue forces us to close for a month?
What if a celebrity randomly visits and loves our stuff?
Your playbook answers:
How would we differentiate if competition intensifies?
What's our emergency response plan?
How would we capitalize on sudden fame?
Scenario D: Most Likely ("Things Stay Pretty Normal")
What's the most realistic middle ground?
This is your primary plan, but you have the others ready just in case.
When something changes in your environment, you're not caught flat-footed. You pull out the relevant playbook and start executing.
Let's say flour prices suddenly spike 50%. Instead of panicking, you pull out your "pessimistic scenario" playbook, and you already know:
Which products to emphasize (higher margin items)
Which suppliers to call for alternatives
How to communicate price changes to customers
What you can cut without hurting your core business
Systems Map for Scenario Planning:
Systems Map for Scenario Planning
You're not predicting which scenario will happen. You're prepared for any of them.
STEP 5: Model the Ripple Effects
For every decision you make ripples through your whole business system. We need to see those ripples before we make big decisions.
How Ripple Effects Work:
When you throw a stone in a pond, you don't just see one splash. You see waves spreading out in circles, touching everything. Your business works the same way.
Example: You're thinking about cutting prices by 20%
Let's trace the ripples through your bakery system:
First Ripple: Direct Effect
More customers buy (because it's cheaper)
Revenue per item drops (because prices are lower)
Second Ripple: Indirect Effects
More customers = need more baking capacity
Need more capacity = need more staff or longer hours
More staff = higher labor costs
Lower prices + higher costs = profit margins shrink
Third Ripple: Delayed Effects
Shrinking margins = less money to invest in quality ingredients
Lower quality = customer satisfaction drops (but this takes months to show up)
Lower satisfaction = fewer repeat customers (this takes even longer)
Fewer repeat customers = need even more new customers to maintain volume
Need more customers = maybe more price cuts? (This creates a dangerous downward spiral!)
Fourth Ripple: Unintended Consequences
Cheap prices = your brand becomes known as "budget bakery"
Budget image = hard to charge premium prices later even if you want to
Competitors might match your prices = price war (nobody wins)
This is what most people miss! They only see the first ripple (more customers). They don't map out the whole system.
How to Map Ripple Effects (Simple Method):
Before any major strategic decision, draw this out:
Drawing of a Map Ripple Effects (Simple Method)
For Example: The Bakery Wants to Add Online Ordering
Let me map the ripples:
Decision: Add online ordering system
Immediate Effects:
Cost: $5,000 for system + $500/month
Need someone to manage online orders
Customers can now order from home
Secondary Effects:
Online customers might order more (convenience)
But online orders might be more complex (special requests)
Need packaging suitable for transport
Need to manage pickup/delivery timing
In-store customers might have to wait longer (because you're fulfilling online orders too)
Delayed Effects:
If online is successful, might need dedicated space for online order prep
If in-store experience suffers, might lose walk-in customers
Might attract customers from farther away (new market!)
Competitors might copy, neutralizing your advantage
Unintended Consequences (Positive):
You now have customer emails (can market to them!)
You can see ordering patterns digitally (better forecasting!)
Could expand to catering more easily
Could offer subscription boxes
Unintended Consequences (Negative):
Tech problems could damage reputation fast
Online reviews become more important (and visible)
Might cannibalize your most profitable in-store traffic
Now you can decide: Knowing all these ripples, is it still a good decision? What do we need to prepare for?
Systems Map for Interconnected Business Decisions:
[Strategic Decision]
↓
┌───────────────┼───────────────┐
↓ ↓ ↓
[Operations] [Finances] [Customers]
↓ ↓ ↓
[Staff] [Costs] [Satisfaction]
↓ ↓ ↓
[Capacity] [Margins] [Loyalty]
↓ ↓ ↓
[Quality] [Investment] [Word of Mouth]
↓ ↓ ↓
└───────────────┼───────────────┘
↓
[Affects Original Decision]
[Creates Feedback Loop]
Every part affects every other part. They're all connected.
STEP 6: Connect Strategy to Daily Work
The fanciest strategy system in the world means nothing if people don't use it in their daily work. We need to connect the big strategy to the small daily decisions everyone makes.
The Connection Chain:
Think of it like a chain linking your big vision to someone's to-do list today:
A chain linking your big vision to your today’s to-do list.
Every person in your organization should be able to answer: "How does what I'm doing right now connect to our strategy?"
Example with our Bakery:
Big Vision: "Be the community's favorite bakery for life's special moments"
Strategy: "Focus on custom celebration cakes and build deep customer relationships"
Yearly Goal: "Increase custom cake orders by 50% and improve customer retention to 80%"
Quarterly Objective (Q2): "Perfect our custom cake ordering process and start a customer loyalty program"
Monthly Project (April): "Design new online custom cake designer tool"
Weekly Task (Week 2 of April): "Test the tool with 10 customers and collect feedback"
Daily Action (Tuesday): "Call Mrs. Johnson to walk her through the new tool for her daughter's birthday cake"
See how Mrs. Johnson's birthday cake connects all the way back to the big vision? Every interaction matters. Every task ties to strategy.
When someone isn't sure if something is worth doing, they ask: "Does this move us toward our strategy?"
STEP 7: Build the Continuous Rhythm
This is where we put it all together into a rhythm that breathes. Not annual. Not static. Continuous.
Think of it like breathing where inhale (gather information), exhale (make decisions), repeat.
Your Strategic Rhythm Looks Like This:
Daily (5 minutes):
Quick team check: "Anything unusual today? Any customer feedback? Any problems?"
This is your rapid sensing
Weekly (15 minutes):
Quick huddle with your team
Review key metrics (just 5-7 important ones)
Small adjustments if needed
Is anything showing up that we should pay attention to?
Monthly (1-2 hours):
Deeper look at trends
Review what you learned this month
Make small strategic adjustments
What patterns are we seeing? What's changing?
Quarterly (Half day):
This is your Strategic Learning Cycle (from Step 3)
Deep review: "Are we on the right track?"
Not just "Did we hit targets?" but "Are these still the right targets?"
Pull out scenario playbooks if needed
Make bigger strategy adjustments
Annually (2 days):
Big picture review
"Is our overall direction still right?"
Update your vision if needed
Refresh your scenarios
But this isn't starting from scratch like the old way, it's refining what you've been learning all year.
The Key Difference:
Old Way: Plan once a year → ignore it → start over
New Way: Sense daily → adjust weekly → learn monthly → review quarterly → refine yearly
It's a continuous cycle, not a one-time event.
Systems Map: The Complete Dynamic Strategic Planning System
Let me show you how all the pieces connect:
Notice how every stage feeds into the next. Information keeps flowing.
This Isn't Just About Better Planning, It's About Business Evolution
Here's what really matters: The world has changed. We used to live in a slower, more predictable environment. Five-year plans actually made sense.
But now? Everything moves fast. Markets shift. Customer preferences change. Technology disrupts. New competitors appear overnight. Employee priorities evolve.
The companies winning today aren't the ones with the perfect plan. They're the ones who can sense what's changing and respond quickly. They're the ones with feedback loops built into their Business DNA. They're the ones who treat strategy as a living system, not a document. They're the ones who ask, "What is reality teaching us?" every quarter instead of "Did we hit our targets?"
This isn't about doing more planning. It's about planning smarter. It's about transforming from a rigid ship that takes a year to turn around to an agile speedboat that adjusts in real-time.
And the beautiful part? Once you build the system, it becomes easier than the old way. You're not scrambling at year-end. You're not surprised by market changes. You're not wondering if your strategy is still relevant.
You know. Because you're listening. Constantly.
Talk Soon 😄
Elizabeth