Good leaders are aware of their surroundings; they know their employees, how the business is performing, and the strengths and weaknesses of the company. Great leaders look ahead; they establish an effective recruitment and retention program, identify the threats and opportunities of a company, and invest in a long-term business strategy. Both short- and long-term planning and strategy is imperative to business success, for multiple reasons.
These are daily operational tasks that must be performed in order to keep day-to-day business running smoothly and move towards increased success. Short term planning examples could include increasing monthly output, decreasing daily mistakes, or hiring a number of top-performing employees in one month. Short-term strategy can then be broken down into tasks such as establishing a committee, hosting a training session, or partnering with a company that can screen potential new hires.
Your managerial tasks are important because they drive your business everyday. If you have a long-term strategy but no short term plans, it becomes easy to get sidetracked or lose focus on what you should be doing.
Long term strategy looks at where a company is going in the next three to five years. These plans are going to be what drives your company and decides the direction you need to go in. Examples of long-term planning can be to improve your product or develop your software, become the top-of-mind brand in your industry, or to increase revenue by 50 percent in three years.
These long-term goals are important because they drive your company forward. They continue to push growth and keep your company from getting stagnant. Without long-term strategy, a company could become complacent with success rates and revenue, and begin to coast along instead of innovate further.
Both short-term and long-term strategy is important for the success of any organization. Focus on a strategic plan and identify what tasks you need to complete in order to achieve your long-term goals. Your business must plan out the overall business strategy and then coordinate your immediate goals with tactical, operational tasks.