Make a New Plan, Stan.

I have worked for companies large and small, US and Canadian, with Japanese and domestic management. I have seen a wide variety of planning techniques, strategies, and implementations. And, you won't be surprised to learn, much of the effort put into their planning was wasted.

In large organizations, senior management assembles The Plan at the start of the year. It is then set in stone, and set on the shelf to collect dust. In my opinion, a very poor approach.

In small organizations, by contrast, there often really isn't a Plan. Also a poor approach.

So what makes a Good Plan?

Successful companies see planning as an on-going process that periodically produces a temporary document, called The Plan.

The purpose of the process is to determine:

• What's working, and what's not
• What shifts in the marketplace are creating challenges
• What adjustments need to be made NOW to meet those challenges

The process should be a collaboration between those that are close to the market (sales, marketing, customer-facing staff), those in touch with industry trends, and those that can re-allocate resources.

The purpose of the document is to:

• Communicate the near-term goals to every staff member
• Coordinate everyone's efforts
• Keep resources from getting dissipated on secondary tasks

If your planning process hasn't providing the bang you had hoped for, here are some thoughts:

First, Scrap the Annual Plan

I saw this in action while working for Japanese organizations. They prefer a 6-month planning time frame, and base their performance compensation on the 6-month goals.

A 12-month program stretches out too far. Market conditions can change significantly over that length of time, making the plan irrelevant. Also, a 12-month deadline is so far off that the hard projects just keep getting push back.

A 6-month time horizon is long enough to tackle big projects, and short enough to keep everyone focused.

Next, Don't make the Plan about Numbers

The focus of the plan should be on:

• the projects you want to get done
• the people you want to train
• the new markets you want to open up
• the new products you want to get out on the store shelves
• etc.

It should be about the changes you want to make so that the company is better positioned for the future.

If you are doing the right things and focusing on the right issues, the numbers will follow. Putting too much emphasis on the numbers causes staff to take short cuts that look good in the near-term, but don't move the company forward.

Finally, Share the Plan with Everybody

Don't keep it a secret from your staff. Share the plan, share the logic behind the plan, share your belief in how achieving the plan will make the future better, and (often the hard part) solicit their opinions. The further you go down in the company hierarchy, the closer you get to the customer. And that's where you will find the ideas that can really make a difference.

Practical Tip of the Day:

• Can everyone in the company tell you what the key objectives are for this quarter?
• Do you staff refer to the plan regularly to see which projects should be given priority?
• If the answer is No, throw out the plan binder that's just sitting on your shelf, and start over.