Planning for the Future
If I had a Franklin for every pundit who has suggested that strategic plans are now worthless, I could buy a boat. Indeed, I was beginning to get sucked into the vortex, pondering what I should do for my clients who had completed their Strategic Plans with us over the past year.
In preparation for just such a phone call a few weeks ago, I pulled out one of the Plans we had facilitated earlier this year. Interestingly, most of the goals and objectives still rang true. Indeed, some more loudly demanded action than in the pre-COVID world. I started pulling other clients’ Plans and found the same thing. Most of the goals were as relevant now as when the Board approved them. Maybe not the "Destination Development" Goal... but the rest cried out for action.
Now, we need to take a step back before diving into why these Plans still make sense. The phrase “Strategic Plan” is one of the most misunderstood and misused expressions in Destination Marketing. Maybe it’s because the term means something different in corporate America. Maybe it’s because people think the phrase sounds powerful and by attaching it to any initiative gives it gravitas. Whatever the reason, in Destination Marketing, the “Strategic Plan” is the Action Plan for the Board of Directors.
There’s a reason for separating the Marketing (or Business) Plan from long-range strategy (and vice versa). The Marketing Plan deals with the right now; with this year. That’s the purview of professional staff and not the Board. And, because the Board’s role is not to direct sales and marketing, this creates distinct lanes necessary to ensure that both Board and Staff are crystal clear regarding their roles.
The Destination Marketing Accreditation Program (DMAP) recommends that Strategic Plans be updated no less than every three years. But, that doesn’t mean a Strategic Plan can’t be updated every year…or that many of the goals and objectives within the plan can’t be addressed in year one. So, with that out of the way…here are three things your next DMO Strategic Plan MUST include (along with everything else).
Diversity, Equity and Inclusion. One of the most powerful lines I heard at Destinations International’s Advocacy Summit here in Madison last November was this: “Diversity is being invited to a dance. Inclusion is being asked to dance. Equity is planning the dance.” Powerful.
Look at your Board of Directors. If yours is like most we work with, there are not a lot of people of color that have even been asked to the dance, let alone asked to lead. And, if that is to change, it starts at the top. Because a Board that is not diverse will not inspire diversity and inclusion at a professional staff level...or throughout their community.
And, it goes well beyond color. How many Young Professional voices are at the table? How many people with disabilities or sensory challenges?
These voices are crucial to ensuring that DMOs are Shared Community Values; that we have deep lines of support and partnership in our communities. We need their truth and life experiences to guide our work and celebrate the rich tapestry of our destinations.
Your By-Laws won’t allow it, you say? That’s what that short little chapter in the back of the document is for; the one that outlines the process for amendment? Use it. Now. Your Board is appointed? Do the appointers really want to be known for blocking diversity at this moment in time? This is the opportunity to have a meaningful conversation with community leaders to build a better Board in which you all can be proud.
In the past three years of guiding over 50 DMOs through their Strategic Planning processes, I can count the Boards that have made diversity and inclusion a Strategic Goal on one hand with fingers left. That must change. And, I’ll take the blame for not pushing harder. But, no more.
Let’s be clear. I’m not advocating for checking boxes with your Next-Gen Board composition. As I said in Destination Leadership, the most important trait we need in our Board members is influence. But, there are lots of influential people in the myriad of networks in your community. Find them. Ask them to dance.
Diversification of Revenue Streams. This is one that I have pushed over the past two decades of facilitating Strategic Plans. And, it all started as I watched a first-meeting Board Member who happened to be the CEO of a Bank look up in horror as he looked at the DMO Budget. “Honestly,” he sputtered, “you have one revenue stream? Are you nuts?” That’s when it became crystal clear to me.
But, in those 50 or so Strategic Plans we’ve facilitated over the past three years, easily a quarter of those Boards have pushed back, saying they didn’t need more revenue. Which is complete horseshit, as we all need more revenue. They just didn’t want to do the heavy lifting.
Of course, none of us believed that a pandemic could dry-up said singular revenue stream in a New York Minute (except maybe coastal destinations that have experienced the aftermath of a hurricane). And, what we’ve learned over the past four months is that Room Tax is no longer a reliable source of funding. So, yeah…no more Mr. Nice Guy when it comes to diversification of revenue.
Reserve Balances. If we’ve learned anything from those on the coast (who know exactly what it feels like to have single-digit occupancy after a storm), it’s that a reserve account of at least 6 months is absolutely critical to the sustainability of our DMOs. I was meeting with a County Commissioner the week before travel stopped who was highly critical of his DMO “sitting on” six months of reserves. I suggested that, with the specter of a virus we didn’t yet understand, he might soon be grateful the DMO had built a rainy day fund. Little did we both know.
During these horrible months, I’ve talked with several DMO CEOs that have shared that their Board or Government have historically demanded that every dollar be spent. Being a good steward of tax revenue demanded no less, they would say. Except, we now know that being a good steward of tax revenue is being able to claw your way out of a recession. Some DMOs will be able to do just that. Others will not.
As I left the meeting with the County Commissioner, in which I did not dissuade him from his position, I remember shrugging and saying, l under my breath, “your loss.” Never again. I’ll fight that fight with anyone.
I feel so strongly about these three points that, if your Board Leadership doesn’t agree to include these components in their next plan, we’ll share with you some names of other consultants we respect to assist with the development of your next plan. We’re just not going to produce any Strategic Plans that don’t include these three objectives. We’re not going to give you a day pass because your destination or situation is “different” or “unique.” We’re going to agree to disagree, hope we stay friends and wish you well.
But, if you’re ready to get to work…we are raring to go.