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Technical
Reference
Bulletin
No. 102
Stand By Your Plan
Planning allows you to "look before you leap."
When asked how I define the word “planning,” I usually say, “planning is a process by which you continuously create your own future." Planning is not a mental exercise, a method of forecasting, or even a systematic recording of past data from which you attempt to predict future events. In a business organization, planning is a process by which business owners and managers thoroughly analyze requirements needed to make their expectations become realities.
Of all the responsibilities you confront as a business owner, few receive so much lip service and so little action as the task of planning. Why? Many times planning is put off because of the extensive behind-the-scenes digging for facts required or because the parties involved in planning do not agree on the direction the company should take.
Other times the fear of drastic company changes resulting from a new plan dissuades business owners from rocking the boat.
The benefits of planning, however, far outweigh the inconveniences and frustrations involved. A well-developed plan will:
• Relate individual employees’ objectives to the goals of the business as a whole.
• Offer a means of measuring costs, time involvement, personnel requirements and so on.
• Identify problems and obstacles as well as benefits and opportunities.
• Suggest the most effective schedule to attain company objectives in the shortest time period.
Practical planners see a task in its entirety, from the general to the specific, and organize the action to be taken. Others tend to barge ahead, never really focusing on important jobs. Because planners think ahead, set priorities and measure progress, they succeed far more often than do those who merely try to “get by for now.”
Where Have You Been?
The first and most important step in planning is to analyze your present situation. An effective analysis permits you to look before you leap. Well handled, this step develops a clear picture that determines:
• Problems that must be resolved before other action can be taken.
• Opportunities not previously seen—those that may have emerged recently or are likely to be seized by competitors.
• Competitive factors that - unless carefully countered - can stop you from achieving objectives.
• New prospects that can contribute to growth.
• Previous mistakes or oversights that have proved costly.
Where Can You Go?
Guess work has no place in conducting a needs analysis. Remember: The analysis can be no better than sources and resources used. Company records, previous plans, reports from subordinates, and trade and industry data provide important information. Other sources of information include personal contacts, customer/prospect requests, product or service applications, complaints or changes, demo- graphic studies and computer-stored data.
Analysis allows you to select both immediate and long-range objectives. These objectives should be:
• Realistic. Will they bring about desired changes? Can they be realized from within a reasonable length of time? What costs are involved regarding time, money and personnel?
• Specific. Do they specifically identify anticipated results? When can the results be realized, and at what cost?
• Achievable. Are the objectives sufficiently challenging? Will they help your company overcome problems or seize opportunities? Can they contribute significantly to growth, revenues, profits, market share and return on investment?
How Do You Get There?
Your plan should designate who and what will be required. Establish checkpoints to keep the plan on schedule. Finally, develop alternative courses of action. The action plan, when properly prepared, provides these benefits:
• Agreement about what to concentrate on. (Low-priority activities can be dropped, delayed or reassigned.)
• Fewer false starts.
• Improved teamwork.
• Fewer and less-severe errors.
• Fewer excuses from subordinates because of misassigned responsibilities.
As you review the steps of your plan, ask yourself the following questions. Your answers will help keep you on target.
• Will accomplishing the objectives make a significant difference?
• Will the results be cost-effective?
• Are the steps in logical order?
• Are the right people involved?
• Are deadlines realistic?
• Are interim checkpoints acceptable?
Staying On Target
To be an effective planner, you must constantly evaluate your plan and be flexible. This means you must be prepared to modify or redirect portions of your plan as situations dictate or conditions change.
To ensure realistic workloads for those carrying out your objectives, prepare a schedule. This provides a regular means of keeping your plans on track. You need to:
• Anticipate the time needed to meet deadlines.
• Determine whether objectives are being achieved on schedule.
• Check any problems causing delay.
• Ensure that project deadlines remain realistic.
• Keep everyone involved informed of progress.
Effective business owners don’t lose sleep over the possible adverse results of every action they take. If they do, they’d be better off taking orders instead of giving them.
About the author:
Dr. Roger Fritz is president of,
Organization Development Consultants in Naperville, Illinois.
Exchange is a publication of: BEC Advisors & Private Equity Services LLC
3003 Northup Way Suite 101
Bellevue, WA 98004
425.635.5000
