Index:
Planning
Planning
It’s often said, “The
best way to predict the future is to create it!” In
general, people spend more time planning the family vacation
then they do their individual future, their department’s
future or their company’s future.
The two basic plans you hear about in business are the Strategic
Plan and the Business Plan. One can exist without the other;
however in concert, they are a powerful force. In general,
organizations view the strategic plan as a long term plan
and the business plan as a shorter- term plan. What is long-term
for one organization may be drastically different than long-term
for another.
For example, a new business may see long-term strategic planning
as three years out and its business plan a working document
for the next 18 months while a Fortune 500 company may set
its Strategic Plan for 20 years out and its Business Plan
for the next five years. The point being, what is long term
and short term is up to you and your business.
The Strategic Plan includes your vision (a vivid mental picture
of your future) for your company or division.
It also includes an external assessment covering customer
segments, competitive analysis, and trends for your industry.
Next would be the internal assessment to determine your organizational
structure, your resources, your strengths and weaknesses,
and determining your key assumptions. These assessments then
combine to develop long-term goals and objectives.
The Business Plan takes the concepts developed in the Strategic
Plan and evolves them into short-term objectives.
These include developing a mission statement, identifying
your customer base, defining critical goal categories, developing
a marketing and sales plan, budgeting, and identifying performance
indicators. The business plan is a living, breathing document.
It should be developed so that it can be modified and adapted
to changing situations. It should give you the road map to
your success!
Results of Strategic and Business Planning are measurable
and include:
• Increased Market Share
• Increased Shareholder Earnings
• Strengthened Focus on Attracting, Servicing, and Keeping
Customers
• Greater Employee Contributions to Results
• Defined Strategic Direction
• Motivated Employees
• Resources Allocated
• Success Defined
• Guidelines for Decision Making
• Pro-Active Management
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