The top 20 percent of investment advising firms are nearly twice as likely to have created a formal strategic plan, according to Charles Schwab’s 2012 RIA Benchmarking Study. Almost twice as many Best Managed Firms (Charles Schwab’s top 20 percentile for productivity, profitability and revenue growth) have written strategic plans in place compared to the lower 80 percent.
Not surprisingly, formalizing a strategic planning process correlates with much higher performance. Best Managed Firms are nearly 75 percent more productive per professional revenue-wise and have 19 percent higher operating income and 12 percent higher annual revenue growth, according to a separate Charles Schwab report, Best-Managed Firms: The Business of Serving Clients.
Although distribution industry-specific statistics aren’t so readily available, it makes sense that distribution companies could see similar results. Success in both industries requires a careful balance between long-term goal setting and quick adaptation to local and global economic conditions.
Brent Grover’s latest book The Little Black Book of Strategic Planning for Distributors can help distribution companies reap similar rewards by walking business leaders through the strategic planning process step-by-step in a way that speaks to the unique needs of distribution companies. Order your copy today.