The only constant is change.

In our last blog, "Practicing what we preach," we talked about the investment we made in planning activities for our own businesses, Play the Field and All-In Gaming & Hospitality Advisory Group Inc. In that essay, I described a business plan as a snapshot of your enterprise at a moment in time. Tom Curran, a contributor to www.itisadirtyjob.com, suggested that Field Marshal von Moltke (1800 -1891), the 19th century Prussian military leader, had something to say on this topic. Tom offered the following summary of von Moltke’s thinking:

No plan of battle ever survives the first shot: battle plans are not wall decorations waiting for admiration, because they are never fixed or stable; fluidity and adaptation are "key" to the success of any plan...

This idea perfectly and concisely captures what I was trying to communicate. It also speaks to one of the excuses people offer for opting out of planning. If one reads only the first half of the von Moltke’s thought, one might question the value of a plan. Why bother planning, if it is finished once the first shot is fired? In our fast thinking age[1] it is easy to miss the profound insight at the end – that the ability to adapt is the essence of a plan.

In my experience, people can find differentiating between strategy and tactics to be challenging. I think von Moltke makes the distinction clear by suggesting that the strategy is a foundation and provides you with a framework for decision-making. Having a strategy means you know where you are going and what is driving that decision. Tactics describe how you achieve your objectives. The strategy is firm, but the tactics need to be adapted to respond to constantly changing realties that are beyond your control. If we do not have a clear strategy to guide our decisions, then our responses will be disorganized and lacking in purpose. In a business context this results in wasted time and money, and missed opportunities.

In summary: strategy is fixed, and tactics are fluid. I have cited one of the key clichés that addresses this reality in the title: the only constant is change. How can you be ready to respond to the inevitable changes that are coming? Have a plan!

Your advice for this week:

• Our clients, understandably, emphasize the importance of value. Too often in the haste of every day operations, money is spent without a fully developed plan, or without referencing existing business objectives. If getting value for your investments is a priority, you must have a solid framework to guide decision-making.

• Don’t shy away from spending time on planning, knowing that you will need to make constant adjustments along the way. Have a plan and a direction for your business, it is more efficient than the alternative, and you will achieve better results.

So, to adapt von Moltke for a business context we may ask: does any plan survive the expenditure of the first dollar? We also take from von Moltke the need to adapt to the shifting realities to ensure you are getting value for your investment, rather than being tied to tactics that may no longer apply. From these two ideas, the importance of planning and the need to be flexible, you can derive value from your investments in your business, respond to issue that arise along the way and act on opportunities..

[1] See The Frenchman and the Spaniard, June 22, 2016, by Tom Curran

#Planning #Value