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n the words of the great UCLA basketball coach John Wooden, In anything, failing to plan is planning to fail The message he conveyed many years ago rings true today Most busy managers focus more on the what of their efforts the tangible results they are measured against The emphasis lacking in many situations is on the how of their efforts, that being the plan to get there In a global marketplace, the view of American managers is that they, for the most part, are fast on the implementation but lack the detailed planning process necessary to make their efforts successful One European manager described it as shooting from the hip Irrespective of your own perception, the impact of poor planning on a business can result in such problems as false starts, waste and duplication, and dissatisfied customers
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Why Plan
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A manager in one of my client companies once commented, Why plan It only gets in the way of getting things done Although this is a shortsighted view of planning, many managers believe that the value of planning is diminished because they must act more quickly, especially in competitive situations, and don t want to be held back by a list of objectives that are no longer realistic Of course, this is a misconception that
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Manager s Guide to Business Planning
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will be explored later, in that a good plan must have flexibility and contingencies to produce successful results It s important to dispel some of the myths regarding business planning to create a level playing field going forward Exhibit 1-1 lists a few to ponder: Myths The planning process is busy work Facts A good plan may be the only way to achieve your results in tough business conditions The business plan is the roadmap to achieving and exceeding the expected results There are recommended formats that will help guide the planning process, but they should be customized to the needs and stage of business the company nds itself in (startup, growth, consolidation, etc) The most effective planning processes are two-way Operating managers must have input into the goals and, certainly, the action plans
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At the end of the day I am only measured on the bottom-line results A business plan should follow a speci ed, structured format that is the same for all companies
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The plan should be prepared by the top leaders and passed down for implementation
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Exhibit 1-1 The myths and facts of planning To illustrate the point, consider the case of the man who wanted to cut back on his personal budget to save money this year He planned to do his own gardening and yard work rather than hire a landscaper One morning, he decided that he would trim a large tree in the yard He climbed up the tree, sawing the branches below him When he reached the top, he realized that he had cut off the only route back to the ground Fortunately he was able to alert a neighbor, who came over with a ladder to rescue him Just think how some basic planning could have eliminated the problem
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The Hierarchy of Business Planning
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One way to think about planning for results is to envision the hierarchy or levels of planning that should occur in an organization, irrespective of
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its size, industry, or for-profit versus nonprofit It might be helpful to see this planning as a hierarchy of thinking and ideas that come together to complete a picture This becomes the vision of the future both in the long term (strategic plan) and in the short term (business plan) The third level is the planning for initiatives each year that will help drive both the long- and short-term priorities Here is the hierarchy with some examples of each level
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