Strategic planning is not exclusive to large corporations. SMEs in SLP that implement a structured plan grow on average twice as fast as those operating without clear direction. Here we explain how to do it.
Why SME strategic plans fail
Most strategic plans fail not for lack of ideas, but for three reasons: they are not connected to the budget, they have no clear owners, and they are not reviewed periodically. A plan written in January and forgotten by March is not planning — it is decoration.
The OKR framework for mid-sized companies
Objectives and Key Results (OKRs) are the most effective method for companies with 20 to 200 employees. They work as follows:
- Objective: a qualitative statement of where the company wants to go (e.g., Become the preferred supplier for the SLP industrial sector)
- Key result 1: a quantifiable metric (e.g., Close 5 contracts with industrial zone companies before September)
- Key result 2: another metric (e.g., Reach $3.5M in quarterly revenue)
Indicators that truly matter
Not all data points are strategic indicators. The KPIs that SLP SMEs must monitor monthly are:
- Gross margin by business line
- Customer acquisition cost
- Average collection period
- Inventory turnover (for commercial companies)
- Revenue per employee
How to implement it in 90 days
The first quarter is the most critical. We recommend: month 1 for diagnosis and OKR definition with the leadership team, month 2 for cascading to operational teams, and month 3 for the first formal review and adjustment. From the fourth month onward, the review should be monthly and take no more than two hours.