BUSINESS PLANNING WORKBOOK
by Michael Manes
Introduction
Planning is a commitment to move your organization from where it is to where it needs to be. The process expends resources to facilitate change. Unfortunately, many people in most organizations talk about changes but do not really want to see them implemented.
Planning is an affront to the status quo. It's one of the most important things you can do to enhance your chances for future success. However, your future success does not depend on completing the plan but on implementing it. It's successful when it moves from the bottom shelf to the bottom line.
To implement a plan, obtain the commitment of your organization's members by involving them in the planning process. Each member of the organization needs to enroll in the vision and process. The leaders must give an unwavering commitment to implementing the plan.
Be loyal to the vision. Your task is to base the plan on reality and build it on a foundation of integrity. Constantly encourage, support, inspire, and facilitate all efforts to achieve the plan's goals. Be willing to rehabilitate or release any members of the organization who will not commit to this new vision.
Bringing change is one of the most challenging roles of a leader-and failure to manage change is the greatest threat to the future of the organization.
This document provides a quick, simple insight into the planning process. It describes one way-not the only way-to plan. The process of and commitment to planning is important, but the plan's format is not. Choose the best process for your organization and move forward.
Preface
Fast food, convenience stores, and microwaves were societal phenomena in the last quarter of the 20th century. They speak volumes about the pace of life and the need for convenience. This document acknowledges the need for 'quick.' It's not intended to be an all-inclusive thesis on the art of planning but merely a practical tool that some may use to understand the planning process better-and ultimately, to facilitate it.
For many busy executives and staff, planning is an interruption of an already too-busy day. Before the process can be effective, it must be embraced by the organization's members. One method to involve everyone (and thereby gain their commitment) is to make the process simple and fun: user friendly. By 'simple,' I mean using single language or experience familiar to an organization's diverse membership. 'Fun' guarantees that they will greet the process as a welcome break, rather than as more work.
For those with the time and will to pursue more analytical and academic methods, detailed documents and systems are available. For the rest, this system will work!
The Process
Planning is like putting together a jigsaw puzzle. With the finished picture in mind, you spread out all the pieces, start filling in the border, and work your way in until the picture is complete. This all takes place 'out of the box.' The planning steps are very similar.
The Finished Picture
First you dream! Dream without limits-be creative. An organization's future lies in the vision of its members. Stretch yourself to reach as far as possible into the future. After there is a shared dream, focus it through a lens of reality-but make certain that this is a 'best case' reality lens. Be driven by your hopes, faith, and optimism, without the distraction of doubts and fears. This focused dream is your vision.
Define the organization you need to achieve this shared vision, and write down the definition. This is your mission. Learn it, share it, live it. It's the vehicle that will carry you into the future.
On completing the planning process, review this mission. The planning process will make you much more aware of your organization and its future, so take advantage of this new-found knowledge by refining and polishing the mission if necessary. You and your organization are learning and growing. Capture these positives that develop on the way.
The dream, vision, and mission are the finished picture of your organization.
Spread Out the Pieces
By spreading out the pieces, you determine your starting point. You turn the pieces face up, sort by color and shades, and search for flat edges and corners. In planning, this is the situation analysis: the starting point in completing the finished picture. The better your understanding of where you are, the more successful you will be in your efforts to get to where you want to be.
This analysis is the study of the organization's records and history, and an evaluation of the your organization's internal factors, such as the people, products, and process you control or influence. The analysis is based on strengths and weaknesses.
An analysis of external factors-the elements of your world that you do not control but that can seriously affect you-should focus on threats and opportunities. You must determine their potential positive (or negative) impact.
Make the Border First
The border encompasses the shape and size of the picture. The border includes hard issues (facts) and soft issues (feelings). The hard issues include your financial posture, market service area, staff skills, competition, and so forth.
The soft issues are more subjective, yet of equal or greater importance. They include the staff and leadership's commitment, your company's culture and values, and the employees' behavioral style. Soft issues deal in attitude more than aptitude. These factors can be influenced more than the hard issues can. They're also more difficult to manage and can be used by the proponents of the status quo to deny or delay the plan's implementation and resist the changes it represents.
Organizational values determine why the group works and what is important. The organizational culture (personality) determines how the group will function. This dictates who the leaders are, what motivators will work best, and which behaviors are rewarded. It is difficult to change culture-and impossible to work successfully over the long term outside of the organization's values.
Understand these factors and make your plan congruent with your values and culture.
Fill in All the Spaces
With a clear vision of the finished picture and a complete understanding of the border, your next step is to fill in the spaces. The factors you need to accomplish your mission are the pieces of the puzzle. Properly fitted, they'll bring completion of the picture and achievement of the dream.
Identify these factors. Think hard to shape four to eight factors-goals-that will collectively complete the picture. Each should address a segment of the organization's mission: the how, what, who, where, and when steps necessary to obtain the result you desire. Persistence, discipline, and follow-through will ensure that these goals are achieved.
Out of the Box
'Today' is the box of collective experiences of all yesterdays. Your fortune and your mission are in tomorrow. Your past has determined what and where you are. Yesterday's world was a system of tradition and status quo, and any change was incremental and non-threatening. Tomorrow will be marked by rapid change, bringing tremendous opportunity and grief. The management of change will separate the winners and losers. View tomorrow through yesterday's paradigms and lose; think and dream 'out of the box' and win!
Conclusion
Once you begin to implement your plan, you must focus on the final destination-the completed mission. Do not romanticize your past. Don't abandon the trip at the first sign of trouble. Wrong turns, bad weather, breakdowns, and pot holes are part of a journey's excitement and adventure-part of the process that strengthens your skills and experience and better prepare you for additional adversity.
Memories of the good old days will tempt you. They'll be used by opponents of change-your organization's status-quo advocates-to persuade you to turn back. Great overt and covert pressure will be exerted to reverse the process by those who fear the unknown. Do not weaken in your resolve! Continue on your trip.
Be constantly aware of all elements of the environment as you continue on the path. Slow down, speed up, and take detours. If necessary, stop and ask directions. Do what's needed to stay on track. The leaders must constantly inform, involve, encourage, and reassure the organization's members.
That the world is moving and changing is the final evidence of the rightness of your trip and the absolute necessity of your efforts. Changing and planning are not an option, and you can never return to the good old days. It's essential to manage change. The best opportunity for tomorrow is to get there first and build your new status quo.
Your plan and the change management it represents are simply your investment in tomorrow. You want to be absolutely certain that there's space available for you when you arrive.
Michael G. Manes can be reached at Square One Consulting, 625 Weeks Street, New Iberia, LA 70560, (225) 939-5944 (Cell), e-mail [email protected], or visit www.squareoneconsulting.com.
BUSINESS PLANNING WORKSHEETS
A. The Finished Picture-MISSION STATEMENT
B. Spread Out the Pieces-SITUATION ANALYSIS
C. Fill in All the Spaces-
1. Part I-RESULTS
2. Part II-FRAMING THE RESULTS
WORKSHEET: The Finished Picture-MISSION STATEMENT
1. Dream. Sketch your dream.
2. Describe your dream focused through a 'positive reality lens.' This is your vision.
3. Define the values of your organization. What is important? Why do you function?
4. Determine your organization's culture (personality). How do you function? How important are:
Power/Personalities
Role/Structure
Achievement/Rewards
Support/Relationships
5. Answer the following questions:
Who do we serve (who is the customer)?
What do these individuals/entities want and need?
How can we profitably provide this?
6. List a word or two that defines your organization and its products and services in terms of the following:
Organization type: ______________________ Industry: ___________________________
Marketplace: __________________________ Customer base: ______________________
Products/services: ______________________ Pricing basis: ________________________
Distribution style: ______________________ Priorities: ___________________________
Structure: _____________________________ Management style: ___________________
Functions: ____________________________ Expansion plans: _____________________
Other: ________________________________ Other: ______________________________
Other: ________________________________ Other: ______________________________
7. Weave these words into a few sentences that describe what your organization needs to be and do. This is your draft mission statement.
After you complete the entire planning process, refine this draft into a final mission:
WORKSHEET: Spread Out the Pieces-situation analysis
1. Analyze carefully all available historical and management information. Include:
- Organization History
- Financial Statements
- Management Reports
- Customer Profiles
- Marketing Service Area
-