Global events such as the financial crisis, COVID and armed conflicts have shown the importance of effective business planning for businesses to thrive and survive. While the future remains unpredictable, businesses that plan well are better poised to detect significant change early and respond to it in a timely and effective way. At the core of effective planning is trust – trust in the data, trust in leadership, and trust in the process. If a business is to successfully connect its strategy to planning and execution, trust in the plan must be absolute.
Effective business planning
Planning is challenging, and it doesn’t always come naturally. People and organizations have to learn how to plan effectively and collaboratively, particularly in larger businesses, where many different people in diverse roles must come together to connect and align various plans and link them to the business strategy.
Trust in leadership
Trust begins with leadership alignment. Without it, there are real costs to the business, both hard and soft. Distrust amongst leaders inevitably cascades down through their teams, so strengthening silos and cross-functional collaboration at lower levels in the company becomes difficult, if not impossible. Instead of proactively solving problems, people focus their energy on preparing explanations for why they weren’t at fault.
A human challenge
The challenges of trust are rooted in human behavior that often values self above all others. A sustainable solution requires the endorsement of the most senior leader – the president, general manager, or CEO. Accountability cannot be delegated when business leaders do not trust one another to share credible information to run the business, thwarting all sorts of collaborative efforts.
The right person for the job
It is essential those involved in developing and communicating the plan are perceived as credible and trustworthy. Building trust involves more than just having the right answers; it requires being respected for judgment and business acumen. Consequently, business leaders must be skilled in cultivating trusting relationships and collaborating well with others.
Embracing change
Fostering trust and earning trustworthiness invariably entail embracing change. Change is hard, especially for leaders, who must understand and accept what a change means for themselves, while under the scrutiny of their peers, observing how they handle the change and expecting them to articulate what that change means for the rest of the team.
A competitive edge
Leaders who embrace trust always seem to outperform their less-trusting peers. Companies ingrained with a culture of trust attract the best talent, achieve their goals and objectives, and offer rewarding careers for their employees. Trusting and trustworthy leaders spend less time politicking and more time leading, moving their focus to working on the business strategy and long-term goals.
As we look toward the next twenty years and try to predict what will come, the one constant will be people. Companies are made from people and thrive when people trust each other and can work together as a team, resulting in better business decisions that ensure the realization of strategic goals.
Do you recognize any of these issues around trust or the lack of it in your own business and are they preventing you planning effectively? If so, don’t despair, many companies have worked with Oliver Wight to successfully overcome these types of difficulties to establish trustworthy behaviors throughout their organizations, leading to the establishment of trustworthy plans. You can learn more about the solutions to the challenges discussed in this blog in our white paper ‘Deploying strategy with Integrated Business Planning – The Demand Review’ white paper.
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By Greg Spira and Charity Lopez