Annual Planning: Exponentially better with Foundations and Strategy
So this year you’re going to complete Annual Planning - even on time - before the end of the year. Congrats! Annual planning is a valuable exercise for any organization. It helps set direction, align resources, and create momentum for the year ahead. But annual planning without the right groundwork risks becoming a list of disconnected initiatives rather than a clear path to meaningful business progress.
That groundwork comes from two Company Operating System components: Business Foundations and Strategy.
Why Annual Planning Alone Isn’t Enough
Most companies enter their annual planning sessions with good intentions. They brainstorm goals, assign priorities, and draft action items. But if the Business Foundations aren’t in place, the result is usually:
Goals that aren’t connected to the company’s true purpose
Confusion about what matters most
Energy spent on initiatives that don’t move the needle
A plan that loses traction as the year progresses
Annual planning without Business Foundations is like building a house without a blueprint: the pieces may fit together, but the structure won’t be sound.
Step 1: Solidify Business Foundations
Before setting annual priorities, organizations need clarity on their vision, mission, purpose, and values. These elements:
Provide context for decision-making
Anchor the company’s culture
Define what success really means
With these Business Foundations in place, annual planning becomes more than a to-do list. It becomes a way of advancing the company’s identity and long-term goals.
Step 2: Establish a Clear Strategy
Once Business Foundations are set, the next step is Strategy: choosing where to play and how to win. This ensures Annual Goals:
Align with the company’s strengths
Address the right markets and opportunities
Differentiate the business in a meaningful way
Strategy provides the “why” and “how” behind Annual Goals. Without it, planning can drift into chasing opportunities that don’t align with the company’s direction.
Step 3: Annual Planning That Builds Momentum
With both Business Foundations and Strategy defined, Annual Planning takes on new power:
Goals are relevant, connected, and inspiring
Priorities are clear, reducing wasted effort
Initiatives build on one another, creating compounding progress
Teams are more engaged because they see the bigger picture
Annual Planning becomes less about checking boxes and more about building momentum toward a thriving future.
The Exponential Effect
When businesses sequence their planning process correctly— Business Foundations first, Strategy second, and Annual Planning third—they unlock an exponential effect:
Every initiative strengthens the company’s identity
Every goal moves the business closer to its vision
Every year builds on the last, creating compounding results
Final Thought
Annual Planning is good. But Annual Planning with Business Foundations and Strategy is exponentially better. It transforms an ordinary plan into a roadmap for growth, clarity, and long-term success.
At Salient7, we help leaders get this sequence right—so their annual plans don’t just sit on a shelf, but actually move their companies forward. And it’s called a Company Operating System.