The Importance of Feedback Loops in Strategic Planning
"Information is Power"
In this ever-changing business world, it’s imperative that organizations take a well-rounded approach with their strategic positioning by constantly looking at all the internal and external threats of their business. One often overlooked strategy, is using valuable feedback loops to create rich data that can be instrumental in developing a strategy for an organization.
So, what is a feedback loop? A feedback loop in the strategic planning process is when organizations reach out to key stakeholders for the purpose of extracting valuable information about the company and the market. This data can play an important role by giving organizations key information to start strategically thinking and positioning their company for success. It’s imperative that executives get out of their comfort zone and reach out to individuals who can actually see what is going on at the street level of their organization. Without this key data, companies can be late to the game, and in many cases a lack of data can catch them totally “off guard” creating a negative tailspin for their organization.
There are various types of audiences both internally and externally that an organization can use to benefit their company. Internally, they could ask for feedback from their staff encouraging critique on such issues as productivity, quality, customer service, product development and strategy. Some of the “best ideas” come from your staff. These feedback loops can be done through townhall meetings, surveys, reviews and individual one-on-one meetings. By encouraging and fostering this type of feedback culture, employees will feel empowered and become more engaged in your business. Certainly, a win-win situation for both the company and its staff.
Externally organizations can loop back to customers, suppliers, contractors and board members to give them valuable information. Customer feedback is instrumental in helping define markets and demands for products. By listening to the customer, companies will greatly benefit from this data and be able to identify trends and gaps in their business – always staying two steps ahead of the competition. The customer is always the most important person in any business process and by listening to them, it gives you the opportunity to transform your business and strategy. Simply put, without customers businesses don’t exist.
Observations from suppliers, contractors and key stakeholders can also be extremely valuable. Perhaps there is a new competitor in the marketplace, or you gain valuable information about a competitors upcoming marketing campaign. Maybe you get access to your competitors financials or gain insights from some of the products they are developing. While this key information is not easy to extrapolate, it’s certainly worth trying. Information is power and can provide your company with a new strategic direction that will help improve your position in the marketplace.
In today’s every changing business world, organization need to be prepared, and by continually scanning your environments through key stakeholders loopbacks - will give you that competitive edge your company needs. Incorporating this valuable data in your strategic plan is imperative, as voices from all levels of the organization is paramount in any strategic plan. The fundamental process of listening and getting feedback from people, is the key to unlocking an organizations full potential