“Plans are nothing. Planning is everything.” – Dwight D. Eisenhower

Last week we talked about three key questions that a great plan must answer. They were: Where are you now? Where are you going? How will we get there?

Today, I want to tell you about the four crucial planning elements that will lead to those answers.

Purpose

Organizational purpose is a big part of the answer to where are you now. Purpose goes deeper than your financials and competitors. Purpose tells you why things like financials, competitors, customers and employees matter.

Your purpose is your greater reason for being beyond making money. Purpose is how the organization is making the world a better place while it serves its customers, shareholders and employees.

As an example, Walt Disney’s purpose is “To Make People Happy.”

Vision

Your vision is the specific destination that your organization is striving toward. Vision unifies the efforts of your team and gives everyone a way to test their actions. Does this action get us closer to our vision?

Vision answers the question — Where are we going?

Your vision should be based on your competitive advantage. You achieve your vision by leveraging your competitive advantage.

I should never set a vision to be the lead in the Bolshoi Ballet. I have no skills, passion or connections that would allow me to get there. And I look funny in tights. If you don’t believe me, check out some of my high school wrestling photos. Whew – glad those days are behind me!

Competitive Advantage

Your competitive advantage is how you are going to win as you pursue your vision. Your competition is chasing after your customers. Why should your customers choose you?

If you don’t have a competitive advantage, the marketplace will make your product or service a commodity. Commodities trade for the lowest possible price. You don’t want to play in that game. If you do not have a competitive advantage today, you must build one that will allow you to better serve your target customers.

Action Plan

I used to always call these “execution” plans because what we are really talking about is strategy execution. But the word execution keeps bringing up images of the guillotine in my head, so let’s call them action plans.

As the great poet Mike Tyson once said, “everyone has a plan until they get punched in the mouth.” Planning is everything, but the plans are useless if you do not have a strategy to put the plan in action.

The organizational ability to execute a plan is far more valuable than the plan itself. Your plan will change. The structure and disciplines required to execute a plan will give you the ability to change your plan and keep marching toward the inspiring vision for your organization.