John Downes - From Vision to Reality - 4 Steps to Craft a Winning Strategic Plan

In this episode of the #CriticalFewActions™ podcast, John Downes shares a simple four-step approach to strategic planning that turns vision into action.

With real-life examples, John explains how to focus on what matters most—understanding your customers, assessing your business, setting a clear vision, and prioritising the #CriticalFewActions™ that drive real progress.

If you're ready to stop being overwhelmed and start moving forward, this episode is essential listening.

Click here to see more information including the downloads

Highlights:

00:00 No more drifting! Why your business needs a strategic plan to drive it forward

02:52 Step 1: Nail down what your customers really want

08:16 Step 2: Get real—assess where your business stands now

14:12 Step 3: Set a bold vision that unites your team

17:09 Step 4: Turn strategy into action with a focused plan

21:10 Final thoughts and actionable #CriticalFewActions™

today we're diving into the bedrock of any successful

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business, the strategic plan.

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Now, if you've ever felt like you're

running your business without a clear

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direction, or maybe you've got too

many ideas and not enough focus.

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This episode is tailor made for you.

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I've been in the trenches with

businesses of all size from startups

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just finding their feet to established

mid market companies looking to

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break through to the next level and

large listed and government agencies.

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One thing I've consistently seen

is that businesses without a clear,

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actionable, strategic plan often

struggle to reach their full potential.

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I remember working with a growing

tech firm full of energy and

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ambition, yet they were like a ship

in a storm without a compass, tossed

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around by every new opportunity,

but never really moving forward.

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That's when they realized the

importance of a solid strategic plan.

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So today I'm going to walk you

through the approach I've been

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using for the last 15 years.

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to create a strategic plan that not only

charts your course, but ensures you're

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focusing on the criticalfewactions™ that

will actually drive your business forward.

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And as always, I'll share real life

examples to show how this works in

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practice, so you can apply these

insights directly to your business.

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I believe that developing a

strategic plan isn't rocket science.

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It's just a matter of following four

straightforward steps and always

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keeping the customer at the center.

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Let's start with a metaphor that

really resonates with clients.

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Strategic planning is a lot

like preparing a birthday cake.

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Before you can bake, you need to

decide what kind of cake you want.

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That's like understanding what

your business's end goals are.

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You gather your ingredients.

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This is assessing your

business , where it stands now.

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And you visualize the finished

cake, setting your vision.

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And finally you bake it.

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That's your implementation plan.

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Imagine little Johnny's birthday

is coming up and you decide you

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want to bake him the perfect cake.

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You wouldn't just start

throwing ingredients together

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without a plan, would you?

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No, you'd first figure out

what kind of cake he wants.

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Does he want a chocolate, a vanilla,

maybe something more elaborate, like a

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layered cake with frosting and sprinkles?

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I'm salivating.

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Um, that decision is crucial because

it guides everything that comes next.

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In business, this is equivalent

to understanding your

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customer's needs and desires.

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It's the foundation of

your strategic plan.

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If you don't know what your customers

want, You're just guessing and in

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today's competitive market, guessing

is a luxury you can't afford.

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So one of my clients had an IT services

company, Charles, and he was trying to

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be everything to everyone, offering IT

systems to anyone with a checkbook in

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a wide range of markets without a clear

understanding of who their target clients

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were and what they actually wanted.

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They were spread thin, their

messaging was unclear and their

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sales were accidental and reactive.

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When we narrowed down their focus in on

who their ideal customers were, which

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was medical practices, they realized they

needed to focus on understanding exactly

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what flavor their customers were craving.

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And by narrowing their focus and

aligning their products to those

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customers needs, they saw a significant

increase in conversion and satisfaction.

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To dig into the customer more, I

use the business model canvas to

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understand the customer's view.

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This isn't just about a

surface level understanding.

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It's about diving deep into who your

customers are, what problems they face

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and how your business can solve these

problems better than anyone else.

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anyone else.

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The business model canvas has been

around for years and that's divided into

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several key components that help you map

out your business's value proposition.

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For example, when you look at

customer segments, you're asking who

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are our most important customers?

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What type of relationship does

each segment expect us to have

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with them and how we're doing?

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With which channels do the

customers want to be reached,

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and which are we actually using?

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Are we forcing them to use something

that they don't want to use?

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What value do we deliver to our customers,

and what problems are we solving?

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And, uh, What makes us distinct?

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And then what are the key activities we

need to perform to deliver that value?

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And what key resources or

partnerships do we need to help

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with that delivery process?

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And then finally, what revenues do we

receive and what costs do we incur?

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And is this business model viable?

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Each of these components is critical

because they help you see the business

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from the customer's perspective.

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Then we can reflect and challenge

the model to see how it changes

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under different circumstances,

such as what would happen if

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we couldn't meet face to face?

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What would happen if there were

severe import restrictions or other

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major supply chain disruptions?

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What if there was a new

technology or a very low cost

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competitor entering the market?

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And how would the model change?

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This level of understanding allows you

to tailor your products and services

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to meet customers specific needs.

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Which can significantly boost your

customer attention and satisfaction.

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So for instance, Peter and Roger had

a landscaping services business that

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I worked with a number of years ago.

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They'd been serving a broad

range of customers from

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corporates to urban planners and

councils without a clear focus.

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They were good at a lot of

things, but exceptional at only

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serving one type of client.

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By using this sort of analysis, we

identified that their success rate,

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most reliable and profitable revenue

came from one specific customer segment.

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And once we honed in on that

sector, they jettisoned a

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range of unnecessary services.

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And doubled down on their niche.

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Now, after five years, they pretty

well own that segment of mega

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customers in long stable contracts.

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This step is foundational.

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Without a deep understanding of

your customer, your strategic

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plans, just a shot in the dark.

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Your customers are the reason your

business exists and understanding them

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fully is the first step towards creating

a strategy that drives real results.

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Step two.

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After you've decided on the kind

of cake you want, the next step

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is gathering up the ingredients.

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You check your pantry to see what you

already have and what you need to buy.

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In business terms, this is where

you assess your current situation.

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Looking at your resources,

capabilities and market position.

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So, This step is really to take

a good heart look at where your

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business stands today, a comprehensive

assessment of your entire business.

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And so I think there's four parts to that.

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First, we look at the operations

of the business and I use the

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Organization Performance and

Value™, (OPV) framework to do this.

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It's like holding up a mirror to your

business, forcing you to see everything

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as it really is both the good and the bad.

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The OPV framework is built around

six levers that every business leader

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can pull to improve their business.

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One vision and strategy.

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Two.

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3.

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Delivering profit.

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4.

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Supporting your people to perform.

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5.

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Driving asset returns.

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And 6.

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Developing your learning

from the organization.

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Each of these layers represents a

different aspect of your business.

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And by assessing each of the 75 factors,

you can identify where you're strong

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and where you're weak, and where there

are opportunities for improvement.

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For example, under vision and

strategy, we look at your why, and

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we need a clear and compelling vision

that everyone in the organization

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understands and is committed to.

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This is crucial because without a clear

vision, your team won't be aligned, and

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then your efforts will be scattered.

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Building revenue focuses in on your

marketing strategy, your sales process,

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and your ability to generate demand

for your products and services.

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Delivering profitability examines how

you deliver product and services to your

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customers in full and on time and at what

margin and how your costs are structured

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and your ability to retain profit after

all expenses have been accounted for.

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Supporting people's performance is

all about your team, your culture,

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your leaders, and how you recruit,

train, , and manage your people to

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ensure they're performing at their best.

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One of the questions I like to ask came

from Vern Harnish in his book, Scaling Up.

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If I knew what I know now,

would I rehire this person again

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unreservedly for the job they're in?

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And we start with the CEO and work down.

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It's a great way to see if we have

the right people on the bus in the

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right seats and whether or not we're

supporting them to perform well.

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Driving asset returns looks at

how effectively you're using your

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assets, whether they're physical

assets like equipment and facilities

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or intangible assets like brand

and intellectual property and

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how you're financing your growth.

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and infrastructure.

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And then finally, we look at how you

develop your organization learning,

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which is all about how well you

learn the lessons that your business

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is trying to teach you every day.

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What are our budgets, our KPIs or

OKRs, and how are we tracking and what

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can we learn from our performance?

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So, I worked with a professional

services business in the

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building and construction game.

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I thought they were doing pretty well

because they had steady sales, great

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cash flow, and to die for profitability.

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Yet, when we looked closer with the

OPV framework at their business unit

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performance, we found that one was

dramatically over subsidizing the other

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because of bloated staffing levels,

poor communication and leadership.

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And no adherence to performance metrics.

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These blowouts were not only costing

the money, but the inequities in

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workload were causing severe hits

to the culture within the business.

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By confronting these issues head

on, getting clarity around the

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numbers and the leadership, they

were able to set the teams free

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to run their own race and culture

improved and profitability is sought.

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But without that intervention,

they were destined for destruction.

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It's easy to get caught up in the day

to day operations of your business

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and assume that as long as you're

not losing money, everything's fine.

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But that kind of thinking can lead to

complacency and complacency is really

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dangerous in a competitive market.

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Another aspect we look at is to get

some independent industry research.

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I've been using IBISWorld Research Reports

for years because they cover all the

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major standard industry classifications

for large and SME businesses.

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This just gives you an independent

outsider's view of who's in your

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market, what are the market dynamics

now and in the future, and what are

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the metrics you should be targeting.

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It navel.

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And finally, I think it's

essential to review our financials

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in detail and ask how are we

performing against industry norms?

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And are we performing well

enough for the risks that we're

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taking in running a business?

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Reflection, honest, in depth

reflection is essential if you want

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to ensure that your business is

not just surviving, but thriving.

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And that's exactly what this,

where are we now steps all about.

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Thank you and step back.

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Assessing your situation and identifying

those areas when you, where you

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can make meaningful improvements.

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Step

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three then is where are we going now that

we've taken stock of where we are, the

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next step is to define where we're going.

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It's about painting a picture of

success that not only motivates you.

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But also rallies your

team around a common goal.

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Bit like me with that chocolate cake.

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vision is your North star.

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It's what guides every decision you make.

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and every action you take.

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Without a clear vision, you're

likely to find yourself drifting,

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reacting to circumstances rather

than proactively shaping your future.

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But when you have a compelling

vision, it gives you a sense

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of purpose and direction.

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It helps you prioritize your

efforts and ensures that everyone

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in the organization is aligned and

working towards the same goals.

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But before you can define your vision,

You need to understand your why.

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Why does your business exist?

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What's the impact you want to

have on your customers, your

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employees, and your community?

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Simon Sinek, in his famous 24 million view

Ted Talk, talks about how great leaders

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inspire action by starting with why.

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People don't buy what you

do, they buy why you do it.

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And when you can articulate your why

clearly, it resonates with people.

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It gives them a reason to care about your

business, and it gives your employees a

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sense of purpose beyond just making money.

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remember working with Daniel in a

homewares import and distribution company

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that had been operating comfortably

without a clear vision for years.

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They were doing well enough, hoping for

annual growth, but there was no real sense

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of direction and no unifying purpose.

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This lack of clarity was a source

of mediocrity in their teams, which

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in turn was affecting operations,

customer service and sales.

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We spent time asking the question,

if we're getting together in

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five years time, what would we be

celebrating this business has become?

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How will it be different?

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What will our customers be saying?

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What will it look like and what

will it feel like to be here?

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This led us to develop a vision

that everyone got behind, which

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wasn't just about making people

feel good, it had tangible results.

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We saw a 15 percent increase in business

performance year on year to achieve

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that doubling of profitable revenue

and a more cohesive company culture.

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But a vision is only as good as

the action plan that follows it.

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That's why the next step is crucial.

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Turning that vision into reality by

focusing on the criticalfewactions™

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that will make it happen.

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Your vision sets the destination, but it's

the action you take every day that will

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determine whether or not you get there.

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So step four, how do we get there

is about bringing the plan to life.

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The final step.

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is where the rubber hits the road.

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Implementation planning.

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Here we take all the insights and

visions we've developed and lay out

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the building blocks that we need to

get us from where we are to where

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we're going in clear, actionable steps.

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The key here is to focus on

the criticalfewactions™ that

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will have the biggest impact.

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It's not about doing everything.

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It's about doing the right things.

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And I like to address it at two levels.

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First, we look at the five year vision.

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What are the major building

blocks we need to get there?

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Do we need new infrastructure,

new plant, new capability?

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Do we need to develop new

product and service lines?

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Do we need new staffing,

new locations, maybe some

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acquisitions or some divestments?

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What do we need to stop doing?

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What are the key initiatives that need

to be undertaken, and who's going to be

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responsible for each of them, and what

resources are going to be required, and

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crucially, what are those timelines?

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This isn't about creating a long list of

to dos, it's about identifying the few

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critical actions that will drive the most

significant progress towards your vision.

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And once we understand those big

building blocks, I then like to focus

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down to detailed planning of the next

12 to 18 months and break that down

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into quarterly and monthly goals.

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This creates a clear roadmap that not

only shows where you're going, but

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also how you're going to get there.

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And by focusing in on just a few

key actions at a time, you avoid

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the overwhelm that comes from

trying to do too much at once.

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I believe that planning in any

detail beyond 12 to 18 months.

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It's just a fantasy as we can't see

clearly that far into the future.

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Let's face it.

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Few of us even predicted or planned for

COVID or the GFC, or even the introduction

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of accessible AI with chat GPT.

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And all of those were game changes.

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Let me tell you about Callum

at a tech startup I advised in

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the global logistics industry.

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And they had a lot of great

ideas and a seriously ambitious

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vision, but they were fragmented,

stagnated, and spread too thin.

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They were trying to execute on too

many fronts at once, and the focus

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was changing every few months.

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Almost in a panic.

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And as a result, they weren't

making meaningful progress

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in any particular direction.

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The CEO Callum was getting really

frustrated and money was evaporating

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faster than they could deliver progress

by reclarifying and getting agreement

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on the vision and prioritizing those

criticalfewactions™ like stabilizing

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their platform, digging deep into

their country rollout strategy

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and targeting key functionality.

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They were able to double their customer

base, deploy to more countries, and

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were acquired for over a hundred

million bucks within two years.

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This wasn't magic, it was the result

of disciplined focus and execution.

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By narrowing their focus, they were

able to do fewer things better,

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and that made all the difference.

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I've seen it time and time again,

businesses that focus on a few key

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actions achieve more than those

that try to do everything at once.

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You simply can't do

everything for everyone.

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All of the time, nothing much is

achieved and you live in a constant

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state of overwhelm and frustration.

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So by focusing on those

criticalfewactions™, that if

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you did nothing else, you give

yourself the best chance to

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succeed in delivering your vision.

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To recap, we've walked through our

four step approach to strategic

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planning, understanding the customer's

view, reflecting on where we are

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now, Defining where we're going and

planning for the implementation.

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Each of these steps is critical,

but it's a combination of all

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four that truly drives success.

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So as we wrap up, I want you

to think about your business.

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What are those criticalfewactions™

that you could focus on right now?

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What does success look like for

you and how will you measure it?

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And if you'd like to look into this

more, you can have a look at the

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process, templates, and instructions

your team can follow to deliver your

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strategic plan in the show notes.

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Thanks for joining me today.

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I hope you found this discussion

valuable and I'm excited to

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continue this journey with you.

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Until next time, remember that

I'm all about helping you get

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pleasure, fulfillment, and a sound

financial reward from your business.

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So let's get started on making those

criticalfewactions™ work for you.