Management Bench Strength. Since 1989.
PERSPECTIVES – JANUARY 2013
Eric Cole. EDC Business Strategies
416-727-1523 [email protected] linkedin.com/in/coleeric
SHOULD YOU MAKE NEW
YEAR’S RESOLUTIONS?
Regardless of where you sit on that issue personally, your
business should make resolutions. Make them every fiscal or
calendar new year and /or as part of any planning cycles.
Resolution: “to be resolute”, “firm determination to do
something”. Nice definitions, and the basis of your plan and the
significant opportunities you pursue to grow profits and
shareholder value.
If your board, banker, investors and accountants aren’t
asking for a plan, shame on them.
If you and your entire staff are not working towards a plan
and measureable targets, the business will under-perform.
If you don’t have a comprehensive plan and resolutions for the
business - why not? The benefits should be obvious to all
business leaders, so here we’ll focus on getting the biggest bang
(profits & value) for the buck with plans and projects.
PROJECTS VS. PLANS
In a recent client assignment, we stopped full planning efforts
very early in the process. The management team could not
produce a dynamic and truly shared vision of the business, and
some members lacked the expertise handle certain big
opportunities being identified. The CEO also decided that he
would make management changes within 6 months, and that
fuller planning should wait.
With the “wrong” team or timing – robust business planning
can be risky. Focus instead on specific strategic opportunities.
We chose instead to pursue “strategic” opportunities that we
were confident would be successful with the current team.
First, “strategic” means it must be BIG financially - perhaps in
cost, but certainly in expected returns. Strategic also means
making a BIG impact on market positioning – such as new /
significantly improved offerings, branding or promotional
campaigns, markets or distribution channels. Or it means BIG
operating changes to improve margins, capacity, efficiency,
quality, customer service, etc. Make them BIG, but realistic.
STRATEGIC OPPORTUNITIES & PROJECTS
Strategic projects light-up entire departments and businesses
because they are focussed, self-contained and directly improve
profits and business value. Often they are the low hanging fruit.
First Pass. As below, first identify and validate opportunities
that are truly “strategic. Then build plans and accountabilities.
Second Pass. Prioritize opportunities by ROI, long-term market
impact and your ability to execute. Ideally, the project “syncs”
with current plans, or changing the plan to make it so is
reasonable. Otherwise, if the opportunity is worth it consider a
“special assignment” needing specialized resources or handling.
THE FACTS
Projects are wasted and often detrimental to the business if
they are poorly assessed, launched and /or managed.
At least some projects must be truly “strategic”. Make this
a guiding principle in your planning.
Choose a process leader that will energize the process,
ensure objectivity, bring fresh ideas and allow your team to
focus on thinking and outcomes, and not process.
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Management Bench Strength. Since 1989.
PERSPECTIVES – JANUARY 2013
Eric Cole. EDC Business Strategies
416-727-1523 [email protected] linkedin.com/in/coleeric
SHOULD YOU MAKE NEW
YEAR’S RESOLUTIONS?
BUSINESS PLANNING: SHORT AND SWEET.
Allow 2-4 weeks for annual planning. Much shorter risks a less
robust or poorly entrenched plan. Much longer risks fatigue,
analysis-paralysis or excessive complexity. Regardless, each of
the stages shown below must be completed and should conclude
with vital deliverables that bring confidence and alignment
across the team.
Stage 1. Set the Platform
The team assesses the business, identifies “profit & value
drivers” and lists strategic options. Exciting stuff that causes
those “ah hahs”. Sounds easy, but its hard work to really push
through the comfort zone. See below.
Stage 2. Build Strategy and Plans
Step 1 powerfully sets up Stage 2 shown in the next image. Here
the team refines the vision for the business and sets out options,
targets and plans. Additional research, business cases and
forecasts must be complete and “signed off” before moving on
to Stage 3.
Stage 3. It’s the Execution “Stu_id”. It’s Live and On-Line
Which is more important: a great plan or great execution? The
answer is… yes! However, planning is “off-line”: brilliance is
still unproven, mistakes are caught, refinements are made, etc.
EXECUTION IS THE SHOW. It impacts resources,
customers, profits & value. It’s ENTIRELY distinct from
planning - many good plans get poor results.
It’s live and on-line after you press the button. Launch the plan
and projects creatively and monitor progress to bring maximum
results. Consider different / unique people and processes than
usual to make that a reality. Challenge the status quo.
CONCLUSIONS
Update your plan and launch strategic projects annually. A
good plan can be poorly executed, and a weak plan can be
improved upon in execution. Go step-by-step and think outside
the box to ensure great execution.
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