Why Employees Need a Say in Your Business Planning When employees help set your company's goals, they'll be more committed to seeing them through. Here are some strategies to better engage employees in business planning.

By Dave Lavinsky Edited by Dan Bova

Opinions expressed by Entrepreneur contributors are their own.

Shutterstock

The other day, I presented a webinar to hundreds of entrepreneurs on key organizational changes that boost profits. During the webinar, I asked the following question: Do you have a written list of the top five goals you need to accomplish this year to give your company the best chance of long-term success?

The overwhelming majority responded "no."

I followed up by asking if they believed having this written list would allow their businesses to grow more successfully. They unanimously agreed.

This list of priorities is the basis for the business plan that successful companies develop each year. But sitting down and writing the business plan by yourself is not enough. You must involve your employees.

Let me explain why. Research from Harvard Business School and the Balanced Scorecard Collaborative, now part of The Palladium Group based in Boston, found that 95 percent of a typical workforce doesn't understand its organization's strategy. Think about that for a minute. Ninety-five percent of your employees don't understand your strategy. If that's the case, how could they possibly perform at their peak? How could they possibly make the right decisions when doing their jobs? Clearly, they can't.

Related: 5 Ways to Train Yourself to Be a Great Leader

The solution to this disconnect is fairly straightforward. Get your employees' input in developing your business plan. When you do so, they will clearly understand your organization's strategy and goals. They will also become more productive. Because they helped develop your strategy and goals, they will be more motivated to help you achieve them.

Here are four steps to involve your employees in the business planning process:

1. Ask for their feedback.
Ask each of your employees to identify the three things they think are working best and the three things that are least effective in your business. Brainstorm with them to figure out how your company can do more of what's working, and fix -- or simply stop doing -- what's not serving your business.

2. Have them set goals for the business.
Have your employees establish specific goals for each functional area of your business they are involved in. For example, within marketing, do they have specific goals for the number of leads generated during the year? Does your manufacturing staff have goals for the number of products produced?

Related: Richard Branson on Building a Strong Reputation

3. Build a plan off their ideas.
Develop the business plan using your employees' input. Once completed, have employees read the plan. Make sure they understand and agree with your strategy. Be open to modifying it if they don't.

4. Meet and update your goals monthly.
Annual goals are impossible to accomplish unless they are broken down into smaller goals. For example, an annual goal of acquiring 1,200 new customers is overwhelming. But when you break it down to 100 new customers per month or 25 new customers per week, it's more attainable.

Set goals with your team each month so that when they are accomplished, your company is on track to meet yearly targets. As needed, revise your annual goals up or down based on monthly results.

Great companies have a leader who involves employees in developing their strategy, plans and goals. Do this and your business with thrive.

Related: How to Get Ahead by Being Generous

Dave Lavinsky

Author and Co-founder of Growthink and Guiding Metrics

Dave Lavinsky is the co-founder of Growthink, a Los Angeles-based consulting firm that helps entrepreneurs identify and pursue new opportunities, develop business plans, raise capital and build growth strategies. He is also the founder of Guiding Metrics, a company that tracks KPIs to help businesses grow faster and more profitably, and the author of Start at The End (Wiley, 2012).

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Business Ideas

70 Small Business Ideas to Start in 2025

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2025.

Side Hustle

This Couple Started a Side Hustle to Improve a 'Terribly Made' Bathroom Essential. Now the Business Earns More Than $3 Million a Year.

Michael Fine and Lisa Schulner-Fine launched lifestyle brand Quiet Town in 2016 and have been growing it ever since.

Living

The 3 Lifestyle Habits That Made Me Sharper, Stronger and More Successful

These three simple yet powerful lifestyle changes transformed my productivity, energy and mindset. Here's how you can do the same.

Leadership

Lead From the Top: 5 Core Responsibilities of a CEO

Knowing exactly what the chief executive's role entails is critical for steering a company to success.

Business News

What's Open on Easter Sunday? Costco and Target Will Close, But One Major Retailer Will Be Open. Here's What To Know.

The stock market was closed for Good Friday on April 18. Here's what's closed for Easter Sunday, April 20.

Living

Inspired by the Masters? Bring Your Work Hustle to the Golf Course with Mind Caddie, Now $99.99.

If the Masters made you realize that your game needs work, check out this performance coaching audio app.