How Many Years Should Your Strategic Plan Cover?
Strategic plans are a lot like running shoes: they’re important if you want to go a considerable distance, only last a certain amount of time, and one size definitely does not fit all. One question we often hear is, “How many years should a strategic plan cover?” to which the answer is usually, “It depends.” Most strategic plans span between three and five years, but that range leaves a lot of room for interpretation. So, how can you determine the optimal length for your organization's strategic plan? Just like choosing the right pair of running shoes for your unique feet, finding the perfect duration for your strategic plan requires careful consideration of your organization’s unique needs and circumstances.
The Age of Your Institution
New Shoes, New Steps: Is your institution brand new or well-established? For newer organizations, it might not make sense to draft a six-year strategic plan when your institution could look drastically different after just two years. Don’t buy top-of-the-line marathon shoes if you can only manage a 5k right now. There’s no reason to commit to a long-term plan when you’re still figuring things out. Shorter plans can provide flexibility and allow for adjustments as you learn and grow. Things change quickly for new institutions, and you don't want to have to scrap the last three years of your plan just because something unexpected comes up.
Financial Resources
Run Within Your Means: How’s that balance sheet looking? A robust budget can support longer-term plans, offering the stability needed to pursue extended strategic initiatives. If your finances are stable, maybe you can set and pursue 20 strategic goals over the next six years; maybe these are in your closet. But, if your financial situation is a little less stable, a shorter plan might make more sense, allowing you to adapt to fiscal realities more swiftly. Achieving 5/5 goals in two years and then reevaluating is better than achieving 5/20 goals in six years.
Human Resources
How’s Your Relay Looking? The people powering your strategic plan are crucial. If you have a strong, stable team, you might be able to run an amazing relay—go ahead, buy those sprinting shoes! However, if your team isn’t as reliable or stable, and you risk losing runners from your relay lineup, planning for long distances might backfire. You could end up running much farther than you bargained for, in which case those sprinting shoes won’t be doing you any favors. Carefully think through your leadership and staff. Is there historically a lot of turnovers in your organization? Are there factors that could take some of your team out of the relay in the coming years? If so, a shorter plan can help you adapt and pivot.
Issues with KPI/Data or Accountability
Perfecting Your Fit: If your organization struggles with setting or tracking Key Performance Indicators (KPIs), or if your accountability structures are still being developed, it might be wise to opt for a shorter strategic plan. This allows you to refine your metrics and accountability processes before committing to longer-term objectives. It’s like trying on different pairs of shoes to find the right fit—don’t immediately commit to the first pair you try on for the rest of your life. Try out several styles over time. Shorter plans can serve as a testing ground, helping you identify what works and what doesn’t, allowing you to dial in your strategy and improve as you move forward.
Regulatory/Industry Changes
Know Your Terrain: The world outside your institution plays a significant role in determining the optimal length of your strategic plan. In rapidly changing regulatory or industry environments, a shorter strategic plan allows for greater nimbleness, enabling your organization to pivot in response to new regulations or market conditions. Your strategic plan should be adaptable to external changes, ensuring your institution can thrive no matter the landscape. By opting for a shorter plan, you give yourself the flexibility to adjust your strategies and actions as external circumstances evolve, ensuring that your institution remains resilient and responsive. It’s like running on different terrains—shoes made for a smooth track might not work for a rugged trail.
Organizational Culture
Find Your Style: Your organizational culture plays a crucial role in determining the optimal length of your strategic plan. Is your culture one of rapid innovation and change, or do you value caution and slower-paced development? Aligning the length of your strategic plan with your cultural values can enhance buy-in and effectiveness, ensuring that the plan feels like a natural extension of your institution's ethos. Just as a runner chooses shoes that match their running style and preferences, your strategic plan should fit comfortably within your organizational culture. A plan that resonates with your organization's core values and ways of working will be more readily embraced and effectively implemented.
By carefully considering the particularities of your institution, you can determine the optimal duration for your strategic plan. Whether you choose a two- or three-year plan for agility or a five-year plan for depth, the most important thing is to ensure that your strategic plan is tailored to your organization's specific context and aspirations. Just like the perfect pair of running shoes, your strategic plan should support you, fit well, and be suited to the race that you’re running. Engage your team in reflecting on the successes and challenges of each strategic planning cycle. It may take two or three strategic planning cycles to really dial in your organization’s ideal timeframe, but the more data you collect and observations you make, the better fit you'll eventually get. At the end of the day, the ultimate goal is not to have a perfect strategic plan, it’s to focus your efforts on continuous improvement and pursuing your mission. So, lace up, find your pace, and get moving!
