Is your strategic plan effective? Our guide to helping you avoid any pitfalls
Today’s blog post places an emphasis on guiding you through making an effective strategic plan, and how to avoid any potential pitfalls. We also cover the government’s plans to invest in AI to improve productivity. Read on to find out more!
Pitfalls to avoid in making a strategic plan
For businesses, having a strategic plan in place is vital for the long-term success and sustainability of the business. It serves as a roadmap for your business that gives you a clear direction, sets out the priorities, and helps you to make sure that you are using your resources effectively to reach your goals.
There are some potential drawbacks though and we will discuss a few so that you can avoid them.
Rigidity
A strategic plan can sometimes lead to rigidity. The business becomes too focused on the plan and resists adapting to new opportunities or changes in the market.
It’s important then to strike a balance between sticking to the plan and being flexible. This can be more difficult when a plan is very detailed. Therefore, concentrate on broader concepts rather than nailing down every detail so that flexibility can be built into the plan.
Time-consuming
Developing a strategic plan can be time-consuming and resource-intensive. It needs thorough research and analysis and will likely also involve consulting with other parties. This can all divert attention away from day-to-day activities if you’re not careful.
You need to allocate sufficient time but be careful not to aim for a ‘perfect’ strategic plan. If daily activities are being compromised, then you may be going too far.
Overemphasis on long-term goals
Focusing too much on long-term goals can sometimes lead to neglecting short-term needs and opportunities.
By including short-term objectives and milestones into the strategic plan, you’ll be able to work at things that contribute to the overall vision but give room for finding success and accomplishment in the short term rather than delaying this to a distant future.
Implementation challenges
Even the best strategic plans can fail if they are not implemented effectively.
It is important that you take a strong lead in the business and clearly communicate the plans and objectives to your employees. It is also important to keep monitoring as this will highlight where an objective may not actually be realistic, or it may provide opportunity to readjust so that the business can continue to press forwards.
While creating a strategic plan can be challenging, the benefits far outweigh the drawbacks. We have useful tools and checklists that can help you to put your strategic plan together. Why not ask us for a copy, we would love to help you in making your business grow and be successful.
Chancellor refuses to rule out increase to capital gains tax
Chancellor Rachel Reeves visited the US and Canada last week, and during an interview with Bloomberg was asked whether she was considering increasing capital gains tax.
She replied: “We’ve got a budget on October 30 and we will set out our policy then, but it’s always important when you’re deciding tax policy to strike the right balance. Of course, you need to bring in the revenue to fund public services, but we’ve also got to grow the economy. I won’t do anything that makes it harder to achieve that economic growth and prosperity.”
The Chancellor has ruled out raising VAT, income tax rates or National Insurance rates, but this has added speculation on whether other taxes will be increased.
Last year, Ms Reeves told the BBC that she had no plans to increase capital gains tax. However, since the Labour party came into office, she has claimed that there is a £22 billion shortfall in public finances this year. She has identified some savings, but it seems likely that the gap will also be plugged by raising taxes somewhere.
In addition to changing the rates of capital gains tax, the government could also remove some reliefs to increase their tax take.
Whether there will be any changes to capital gains tax, and what they might be, is difficult to predict, but it may be telling that Ms Reeves refused to rule it out.
If you are thinking about disposing of an asset and would like to know the likely tax cost under the current rules, please get in touch. We would be happy to help you.
See: https://www.bbc.co.uk/news/articles/c9v880z470lo
Government investing £32 million in AI projects to boost productivity and improve public services
The UK government has announced £32 million in funding for 98 innovative AI projects, aimed at improving efficiency in various sectors. These include delivery of prescriptions, railway maintenance and training construction workforces. The funding will support over 200 businesses and research organisations across the UK.
The projects span across the UK from Southampton to Birmingham and Northern Ireland. Examples of some of the projects being funded include:
- Construction Safety Training: V-Lab Ltd has received £165,006 to develop AI-powered virtual simulations for training workers in the construction sector. These simulations train workers on risk assessments and safety protocols, ensuring a skilled and safety-conscious workforce.
- Efficient Prescription Deliveries: Anteam, based in Nottingham, is working with retailers and the NHS to optimise prescription deliveries using AI algorithms. This initiative seeks to match delivery needs with existing routes, reducing carbon emissions and improving patient experience.
- Autonomous Railway Maintenance: Hack Partners is spearheading a project to create an autonomous system for monitoring and maintaining rail infrastructure. This development hopes to improve the efficiency and safety of the UK’s railway network.
- Electric Vehicle Motor Design: Cambridge-based Monumo is part of a team awarded £750,152 to enhance motor designs for electric vehicles using a 3D Generative-AI Tool, aiming to improve sustainability across various transportation sectors.
The government is clearly committed to finding ways to harness the power of AI to improve productivity. AI can bring benefits to businesses of all sizes, have you considered how AI could help you?