Deploying a Strategic Plan for Manufacturing CEOs

September 7, 2023 | by Dennis Kelley

In my work with companies across the manufacturing landscape, I see it all the time. While many companies are great at creating strategies, very few are adept at deploying and managing them. Many companies mistakenly view their budgeting cycle as strategy deployment, keeping their focus solely on spending money on the things they predict will bring them the most success. 

Annual budget allotment, though, isn’t a deployment strategy. Instead, true strategy deployment requires a long-term vision, clear articulation of goals, identification of barriers, and ongoing monitoring and adjustment. Here’s how to create an effective and efficient strategy deployment process that aligns with your company’s long-term objectives and ensures continuous progress.

Look Beyond the Immediate 

To deploy an effective strategy, manufacturing CEOs need to take a forward-thinking approach. Instead of concentrating only on the current year, they should also look three to five years into the future. 

By clearly understanding where they want their company to be in three to five years, CEOs can articulate their goals and key performance indicators (KPIs). These goals should encompass market share, profitability, cost reduction, or any other relevant KPIs. 

You can’t get to where you need to be if you’re unsure where you’re going. So establishing those goals first is crucial to future success.

Where Are We Now? 

Once the long-term goals are established, the next step is to evaluate the current state of the company. You and your leadership team need to determine how far you are from your desired future and identify any potential challenges or market shifts. 

I’ve found that this assessment allows you to gauge the gap between the current position and the desired outcome. By understanding the starting point, you’re then able to develop a more accurate roadmap for strategy deployment.

Identify Barriers and Set Annual Targets 

Leaders need to identify the key barriers preventing progress to bridge the gap between the current status and the long-term vision. These barriers could be related to employee development, supplier performance, or other critical factors. By narrowing the list down to the top two or three barriers, you can then set annual targets that address these obstacles. Setting specific milestones for each year helps maintain focus and ensures steady progress toward long-term goals.

Develop an Actionable Plan 

Simply setting annual targets is not enough for successful strategy deployment. CEOs and their teams also need a detailed plan outlining the steps to overcome the identified barriers. This plan should assign clear ownership to individuals responsible for executing the strategy and eliminating obstacles. I’ve found that monthly check-ins during the first year are crucial for monitoring progress and making necessary adjustments. Continual execution and assessment of the plan are essential to ensure it aligns with the desired outcomes.

Continuous Monitoring and Adjustment

Your leadership team should also regularly assess whether your strategic plan is giving you the expected results. Monthly reviews allow you to track progress, determine if the plan is being executed effectively, and evaluate if it is producing the desired outcomes. If you’re not on track or are finding that things simply aren’t working, adjustments may be necessary. While early results may be inconclusive–you may not be able to tell what’s working and what’s not during the first few months–consistent monitoring helps identify patterns and trends. If the plan is yielding the expected results, you can continue with the initial plan. If not, you and your team may need to reassess the plan’s effectiveness or implement more accountability within the task ownership structures. 

Annual Planning for Long-Term Success

As the year draws to a close, you and your team should get together and evaluate the progress made so far toward both the one-year and five-year targets. In fact, this should be the first instance of what will become an annual planning session. By reviewing what’s been achieved and identifying areas for improvement, you and your leadership team can ensure the strategic plan remains on track and in line with the long-term vision. On top of this, it is essential to stay flexible and adaptable since things are under constant threat of change from all directions, both internally and externally. 

I have a friend who pours concrete for a living. The only guarantees he gives his clients are that their concrete won’t be perfectly flat and will crack at some point. It’s the same with goals made months or years in advance. Regular check-ins and adjustments are vital to aligning the strategy with minor changes and evolving industry trends.

The Truth About Deployment

Deploying a strategy is not a one-time event. Instead, it’s an ongoing process that requires continuous attention and adaptation. To make it work, many manufacturing CEOs have to shift their focus from mere strategy creation to effective strategy management. By establishing a long-term vision, setting targets, removing barriers, and monitoring progress, you are in a prime position to steer your company toward success–no matter what is happening across an ever-changing manufacturing landscape.