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Long-Term Business Planning
Long-Term Business Planning
In this next section you are tasked with thinking about where you would like to see your business long-term. In here you must envision what some of the finer details of your long-term goals might look like (objectives and key results (OKRs), key performance indicators, etc.). This is where you will need to construct yearly plans, formulate objectives, and decide on your KPIs. Your BHAG(s) (if you've made any at this point) will automatically generate at the top of this section to give you reference of your largest long-term goal.
The main components of this section are:
- Creating a 3-5 year KPIs
- Creating 3-5 year OKRs
- Creating 1 year KPIs
- Creating 1 year OKRs
The main components of this section are:
- Creating a 3-5 year KPIs
- Creating 3-5 year OKRs
- Creating 1 year KPIs
- Creating 1 year OKRs
Tip:
Key Performance Indicator (KPI) - a standalone metric used to tell you when a certain metric is good or bad
Tip:
Objectives - a targeted outcome requiring a series of specific actions and or measurable steps to be completed (medium-long term)
Tip:
Key Results - a specific measurable action of some metric value needed to be completed in order for the objective to be achieved (usually short-term)
Important:
When creating long-term plans, try to avoid strictly setting OKRs or KPIs related to money or revenue. Try to at least mix in one or two OKRs and KPIs that would be more inspiring for someone to measure and or achieve. You will likely notice that a lot of the more meaningful OKRs and KPIs will have a direct impact on revenue anyways!
Creating 3-5 Year KPIs
This is where you essentially want to decide on metrics that will tell you whether or not your business is making progress towards the ultimate goal. You may use measurable targets such as customer satisfaction, monthly costs, quality assurance, survey reviews, monthly revenue etc. Here's an example:
Creating 3-5 Year OKRs
The objectives made in this range are focused on impacting your BHAG. They should also be considered fairly aggressive but realistic when compared to your more big, hairy, and audacious goals.
When creating key results you need to remember to use actionable metrics that will directly impact your 3-5 year objectives. These KRs don't need to be extremely specific as they are a number of years down the road. But don't make them too broad as well or they will likely start to sound like objectives or goals. Here's an example:
When creating key results you need to remember to use actionable metrics that will directly impact your 3-5 year objectives. These KRs don't need to be extremely specific as they are a number of years down the road. But don't make them too broad as well or they will likely start to sound like objectives or goals. Here's an example:
Creating 1 Year KPIs
When creating 1 year KPIs you are choosing what you will be deciding on the metrics which will decide whether or not your business is doing well and progressing towards it's goals. These should be aggressive, yet realistic as they are not set very far in the future. Here's an example:
Creating 1 Year OKRs
The objectives for your 1 year OKRs should be aggressive and set the bar higher slightly than the desired outcome. This will allow room for overachievement if someone becomes hyper-motivated/inspired to surpass the desired outcome of an objective.
When creating key results you need to remember to use actionable metrics that will directly impact your 1 year objectives. These KRs should be relatively specific as they are to be completed in only 1 years time. Here's an example:
When creating key results you need to remember to use actionable metrics that will directly impact your 1 year objectives. These KRs should be relatively specific as they are to be completed in only 1 years time. Here's an example:
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