The eighth step
in our 12 Step Program for Business is planning, or as we have
labeled it, “Planning for Success”. One might object to that title,
stating that no one plans to fail. However, I believe failing to
plan IS planning to fail. Too many business people fail to plan by
not taking any action at all. Thus, they take an “action” by
default. There are lots of interesting stories to tell about
decision-making by default. That’s a subject for another
column.
Today, I want
to focus on planning. So, beginning with the assumption that we all
agree on the importance of taking purposeful, planned steps forward
in our businesses, let’s consider the types of planning.
Strategic
Planning: This is a critical activity for all businesses,
large and small. During my years at IBM, planning sessions
were an annual
rite for each New Year. January was lost to regular activity, as
we all huddled in multi-day planning sessions with colleagues
and
management. We would go offsite or at least into a conference room
away from our desks and phones (I am old – this was during
pre-cell phone days) and hammer out the goals, strategies
and actions for the
upcoming business year. So that is my definition. Strategic planning
is removing oneself from the daily grind and examining the
big
picture, defining issues and goals, then setting out plans to
accomplish those goals within a logical, set time frame – usually
1 year. You may strategize and set longer term goals – say 3-5 years –
but it is best to focus on 1 year for the actual action plans. The
resulting plan should be documented, and most importantly, used!
This
is the part that too many of us miss. Our beautifully documented
plans gather dust on a shelf. A good plan is a living document,
communicated to all involved in executing it, used to provide
guidance during the year, and modified as appropriate.
Succession
Planning: This is planning for the orderly transition of
ownership of a company, from the current business owner to someone
or something else. The reasons for the transition can be one of
many. The owner may sell the business. He/she may pass it on to a
son or daughter. There may be employees who have interest in buying
the company. Whatever the reason or circumstance, the transition
will be far smoother if there is a plan in place.
Personal
Crisis Planning: This type of plan is directed at handling the
“3D’s”; death, disability and divorce. Why deal with such a personal
form of planning here? Because business IS personal when you are the
owner. How will your company survive and continue if you suddenly
die? What if you are disabled and no longer able to run the company?
Then, there is the other “d” word – divorce. This is a biggie for
business owners. Suddenly, your business is a marital asset on the
chopping block. How can you protect it? Think it through and make a
plan.
Disaster
Planning: Disaster planning is an important part of Step 8 in
our 12 step business program. However, it is also an important
component in several other steps, particularly steps dealing with
your company’s physical plant, business technology and taking care
of your employees. This is where you must think through the wide
variety of potential disaster situations and plan for how you will
deal with them, protecting both your assets and your people. If you
are hit by a fire, a flood, or an earthquake, what will you do to
protect the lives and safety of your employees and then keep the
business functioning? These things don’t just happen. You need plans
and the necessary supplies to implement your plans. And you need to
communicate your disaster plans to everyone on your staff.
These are the
primary types of plans we deal with regularly. There are a few
others. The first that comes to mind is a Business Plan. This
is essentially a sales pitch for potential investors or bankers. It
serves as proof that you have thought through your idea for a
business and have done the necessary research and analysis. It helps
investors quantify their risks and potential return before
committing their dollars. Second, there are Marketing Plans.
To me, these are a subset of Strategic Plans. The process is the
same. The result is just more focused.
In future
newsletters, we will delve into more detail on each of these types
of plans. We also invite you to share your thoughts and experiences
on this important topic. Particularly if you have had experience
dealing with a major disaster, let us know! Our readers would
benefit from hearing your stories.
Ready to tackle
your own plans, but not sure how to proceed? Get some help from one
of the many sources available. There are some excellent books on the
topic as well as skilled consulting resources, including Next Step
Solutions, Inc. We work with our clients regularly on all types of
plans, particularly Strategic Plans. We strongly encourage our
clients to make strategic planning a regular exercise. We act as
both planning session facilitators and outside business experts
during the planning process. We also offer seminars and teleseminars
on this important business topic. Please contact us and we can
explore ways we can help you through the critical planning
process.
The eighth step
in our 12 Step Program for Business is planning, or as we have
labeled it, “Planning for Success”. One might object to that title,
stating that no one plans to fail. However, I believe failing to
plan IS planning to fail. Too many business people fail to plan by
not taking any action at all. Thus, they take an “action” by
default. There are lots of interesting stories to tell about
decision-making by default. That’s a subject for another
column.
Interested in
learning more about our 12 Step program for business excellence? We
have two free overview sessions on the schedule. The first is April
10th and the second is May 1st. Both are scheduled at 4:00 PM
Pacific Daylight time. To enroll, please call 425.918.1910 or email
info@nextstepsolutions.com.
