(E18) Why leaders struggle with annual planning
In this episode I explore the challenges organisations can face when leaders can’t align personal and organisational priorities. I share the reasons why the annual planning process can feel like groundhog day. I discuss the problems caused by poor personal planning and what this means for your different stakeholders. And I share the three foundations all leaders need to have in place to deliver with the right impact.
Why does the annual planning cycle always feel so hard and like starting from scratch?
You’ve spent all that time and energy developing an organisational strategy that will transform you over the next three to five years. In theory everyone should know what needs to happen year-on-year to deliver it.
But when it comes to the new financial year, it can feel like Groundhog Day, with everyone trying to figure out what needs to be different in order to meet internal and external demands.
One of the mistakes I see at this time of year is that whilst there is clarity around an organisational strategy, individual directors don’t have a clear vision of what their teams need to do to deliver it and struggle to connect their plans with wider targets and objectives.
And so:
they and their teams are overloaded with priorities instead of providing clarity on a few things that can be done well
they don’t have the resources they need to deliver the ask because they haven’t properly considered and costed the work
they can’t clearly and confidently communicate and manage people’s expectations for the year ahead.
What happens next?
The Board - isn’t bought in or doesn’t understand how the big organisational priorities are being met, leading to challenging conversations and extra scrutiny.
The team(s) - aren’t aligned in the actions they should be taking, either focussing on the wrong things or feeling overwhelmed with too many confusing and conflicting demands.
The system partners - feel frustrated that work isn’t joined up and that the organisation isn’t committed or focussed enough.
The peer group - if execs aren’t clear in their personal vision and strategy and can’t align it with organisational direction, then as an exec team it’s really hard to do that peer challenge, hold each other to account, you start to get ‘me’ thinking instead of ‘team’ thinking, especially when it comes to self-preservation with the Board who are being more challenging of you all.
In the conversations I have with leaders around this challenge they often admit to not having a clear plan; technically, yes, they’ve submitted something that looks like a plan, but is probably as valuable as the money in a monopoly game. Because they haven’t got the foundations in place:
they don’t have a clear vision or strategy for their area(s) of responsibility, which is aligned to delivering organisational strategy
they don’t have the right conditions of self-leadership in place, so they don’t know what or how to manage themselves
they haven’t had the right conversations with colleagues and partners and so don’t understand the interdependencies at play and how that will impact.
And it’s easy to see how this can happen…
How many directors are appointed primarily for their expert knowledge and skills? This narrow focus has enabled them to excel in past roles, but it doesn’t necessarily prepare them to represent a whole organisation.
Then there are the so-called ‘soft skills’, like relationship building, communications, empathy, influence - being able to earn trust and build connection to mobilise hundreds, if not thousands of people. It’s not something you get taught in director induction!
It’s vulnerable for someone to admit that they don’t know how to do this stuff, especially when the weight of expectation is on you as a new director. And so it never gets tackled. And then you’re not-so-new and supposed to have figured it out to help those joining the team.
It can be a vicious cycle.
I had a conversation recently with a new director who felt he was failing in his role because he was struggling to get the Board off his back about what he was doing to improve performance. He felt like his team weren’t delivering and he was having to hand-hold far too much. And he was taking all this pressure home with him, working late into the evening, missing spending time with his family, and not sleeping because his mind wouldn’t stop whirring.
Following our intensive strategy day he had clarity around his priorities, new messaging to communicate those with his Board and team, and a plan of action he could take forward that would enable him to show up at work and home in a way that didn’t compromise who he was.
This isn’t an isolated case. I’ve spoken to many leaders who feel stuck in situations like this. If it’s something you’re seeing in your organisation, let’s have a chat about how I can support you.
Resources and helpful links
If you want breakthroughs like this, my coaching packages provide that safe space to explore and test different ways in which you want to show up as a leader. And if you want to get clarity on your purpose and strategy, a VIP intensive day could be the answer. Drop me an email lwi@sundayskies.com or book a free call.
