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Simple, Effective Planning

Written by: Jim Horan

Article Overview: Business plans... you either love them or hate them. If you love your planning process it is because the process and investment produces results all year long. It keeps you and your team focused, it’s the basis for all significant decisions and everyone knows not only the master plan, but also their piece of it. If your past planning efforts have left you and your team frustrated, you are not alone, it happens far too frequently. The annual planning process does not have to be complicated and time-consuming. Here are some thoughts on how to make planning simple and effective in your company:

Simple, Effective Planning

Business plans... you either love them or hate them. If you love your planning process it is because the process and investment produces results all year long. It keeps you and your team focused, it’s the basis for all significant decisions and everyone knows not only the master plan, but also their piece of it. If your past planning efforts have left you and your team frustrated, you are not alone, it happens far too frequently. The annual planning process does not have to be complicated and time-consuming.

Here are some thoughts on how to make planning simple and effective in your company:

The greatest value in creating a plan is not the final document. It’s the communication, prioritization, focus, clarity and learning that make the process worthwhile.

The business plan you write to get your company funded is almost worthless for running your company. Don’t confuse your funding efforts with running your company. They are very different. Commit to having a plan for managing your company.

Have every manager and/or every team write a plan for their business unit, project or program. If it is their plan, in their words... its much more likely to become a valuable tool.

Make the plans important all year long by reviewing the performance and progress against the plan as a part of your monthly management team meeting.

Have your managers/teams prepare a written plan first... then have them prepare their budget. Remember, budgets are just numbers. Numbers can’t describe what is being built or how it will be built or the work that needs to be done. Words can!

If you don’t get the words right, you may build the wrong business. I bet you know of several small businesses that look like mini-conglomerates.

If you don’t get the words right, you may never get the numbers right. Unfocused businesses typically waste a lot of resources. Focus your team and your assets; the bottom line will improve dramatically.

Managers speak the plan every day. Capture these verbal plans in writing using key words and short phrases. A powerful one page document can be written in a short amount of time.

You and your managers may need some outside assistance with your planning and performance processes. Find a consultant that specializes in planning. Ask other business owners for a referral.

All too frequently the goals or objectives in a plan are too vague to be of any value. The best goals or objectives are ones that can be graphed over time, like sales, number of new customers, units produced, billable hours, manufacturing yields, and gross profit.

Federal Express’ rationale for existence can be stated in three words – overnight package delivery. Why does your company exist?

If your employees, investors and/or partners cannot accurately describe the business you believe you are building, they may be building a different business.


Remember profitability is not an accident nor is it a guarantee. It always starts with a plan! Start the year with a written plan... then put it into action. And remember... keep it to one page!

Related Articles
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  How much Planning is enough - Use Lean and Standardize
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  Succession planning myths and realities
  “The Top Ten Reasons Strategic Planning Meetings Fail, According To Your Strategic Thinking Business Coach”

Article Tags: assets, bottom line, budget, budgets, business plan, business unit, clarity, conglomerates, decisions, management team, small businesses, unit project, valuable tool



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Re: New Infographic: Top Ten Reasons to Partner with Someone - I like it. Simple yet informative. I also RT'd it for you.
Re: Is being too connected pushing your business forward or back - Good advice, Terrycan! Simple but necessary.
Re: How do you make the most of your day? - Planning, To Do lists, and deadlines all help me. Also being self critical of my own time management helps me raise the bar. I still check email too often though.
Re: Success - I think it was Gary Player who said the harder I practice the luckier I become when it came to his success as a world class golfer. Planning and dedication to a task can make all the difference between success and failure. MichelleJ
Re: Quote of the Day - "If you hesitate, some bolder hand will s - Excellent quote, Evan. This reminds me of the saying, "The early bird catches the worm." It's important to act on impulses, rather than hesitate and plan. Planning isn't a bad thing and is warranted in certain cases, but those who act quickly will get a step ahead of the competition.


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