Does Your Organisation Have a 5 Years Plan — Microsoft Example

Ask any Entrepreneur what is the one question they get asked most by consultants after “what is your vision?” — wait for it, you may have guessed “ What is your 5 years plan?” even if you cannot recall being asked those questions which would be strange (you probably have had to do some projections for your bankers or would be investors that required that information). Funny you even ask interview candidates the same question

Let’s agree one thing up front, for many, 5 years seem like a lifetime but let's be real with each other, those 5 years barring any worldwide earthquake or a nuclear war, that 5 years eventually does come around. Whether you plan for it or NOT.

I am talking about the 5 years plan today because I want you to watch this 40sec video created by the Wall Street Journal depicting the price movements that took place between 2014 and last month when Microsoft hit the $1 Trillion Dollar Valuation.

Here is my opinion of how Microsoft achieved the One Trillion Valuation during the 5 year period:

a. They had a plan: Of course, it seems obvious given the position they were 5 years ago, they were No 4.

b. The Team was laser focused: It focused on its strength, remove distractions like Nokia and double down on the cloud and AI businesses

c. Recurring Revenue: Since moving its focus to cloud and software rental, it's business model changed, it had more predictable income. The income came from Azure and Office 365. Ask anyone involved in the sale or acquisition of companies, would know, the more annuity or recurring revenue an organization has the more valuable the company

d. Made Strategic Investments: Purchase of Linkedin, Minecraft, Github

e. Openness and Collaboration: Microsoft has always preached openness but during the past few years, it has taken actions that confirmed its seriousness (embracing everything mobile)

If you an entrepreneur reading this post, this is a gentle reminder: 5 years may seem far, but it always comes around, so take that question your consultant ask you seriously, what is your company’s 5-year plan? A lot can be achieved in 5 years Microsoft is a living example

If you don’t know how to create a 5-year plan, you may want to Google it but if you want to implement a 5 years plan that will take your organization to the next level, call me (I can help)