For many businesses, 2023 was a year for caution. Wait and see what happens with interest rates. Wait and see if inflation reduces. Hold off on any large expenditure before sales start to slide. For others, they were busy investing and building for the future for when things improve. A lucky few smashed 2023 and posted record profits. However, they all tend to have one thing in common. The CEO returns refreshed from their annual leave and has big ideas. As a result, many workers trudge into work (or to their spare room) in January with baited breath – eager to see what changes result. Additionally, they know that most changes won’t make their lives any easier, nor will they tear up the rulebook. So, today we discuss new year business plans, the new rules or same old, same old.
New year business plans
Let’s be honest here. The majority of CEOs and boards do not appear to spend days and weeks formulating strategies and detailed plans. True, they need to articulate a few key objectives for their business and a compelling story on how and why they believe they can achieve them. But, do they really spend such precious hours, days and weeks underpinning well-informed goals? Similarly, many management teams know that they simply have to wait for the CEO to tell them what to do. What the boss says goes in most cases. Furthermore, most CEOs are not shrinking violets.
Whether some new initiatives were cooked up on a beach, over dinner or overlooking downtown Manhattan, they will likely be aired in the coming days and weeks. Many CEOs will be bursting to tell their teams what they have come up with and how this will boost the business. Given how little quality thinking time that most senior roles allow, it is little wonder that this happens in January. Ideas will take many forms, such as a reorganisation or a new proposition. The trouble is that your people are now expecting this ‘relaunch’ every January and some will silently groan inside.
New plan, new rules?
It is asking a lot to change a business after a few piña coladas on a beach. SMEs are easier to bend to your will quickly. Mid-market corporates to blue chips are an altogether different beast. At one end, any new initiative will need a coordinated effort. At the other end, it may be easier to make a few lofty statements to the market and hope that the share price rises. The trouble is that most employees are hoping for a better 2024 and an increase in workload may be the opposite of what they want. Since we know that fewer UK employees see work as the most important thing to them, galvanising the troops could prove challenging.
Additionally, we know that only 22% of true transformation projects succeed. We know that only about 50% of businesses have formal plans. We also know that a sizeable proportion of managers avoid strategic planning because they see it as distracting them from the job. So, what makes us think that employees will deliver the new ideas? The larger the organisation, the harder the changes and the longer it takes. Tales of transformation and exciting initiatives represent ‘jam tomorrow’ for many. We also know that in UK politics, the majority of people now believe that they can’t change anything. This undermines democracy. In this context, we have a backdrop for apathy and ennui.
Plans to beat same old, same old
It is worth repeating. Successful strategies require employees to view their leaders’ plans as achievable and they need to understand their part in delivering that plan. If strategies seem devoid of research, reality or reason, nothing will truly change. Furthermore, if employees have had no say in the goals of the organisation or the plans, are we doing the right things? For example, employees that interact with customers are a great source of insight and innovation. Were they involved in the process in any way?
Ultimately, the best laid strategies and plans and the capabilities of the business need to come together under good leadership and management. Doubts about the skills of managers? That’s probably a good place to invest. After all, remember that 85% of staff view a good manager as key to their happiness at work. However, nearly 1 in 5 large organisations has no training budget. By one statistic, nearly 4 in 5 managers is inadequately trained. Finally, there is a need to communicate and to share the plan. We emphasise the need for a ‘kick-off’ event for the year ahead. This is both an opportunity for senior management to stand up and be counted by standing behind their plans and to evoke a positive response from staff.
New year business plans and rewriting the rulebook
CEOs don’t lose control by involving consultants. Similarly, they don’t lose credibility by listening to the results of research. Neither do they risk embarrassment by collecting ideas for innovation or investing in training. The real risks are in not seeking help, not gathering all of the information available and not involving or training your people. Most employees know that new year plans will be ‘done unto them’. Unfortunately for senior leaders, this goes directly against our brain’s need to feel some level of control. Employees who get pushed into places they don’t understand may suffer worse mental health. So, are you happy to maintain the same old, same old or do we write some new rules?
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Finally, why not read about making plans for 2024 or some pitfalls to 2024 planning.