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Manager s Guide to Business Planning
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Process I Review each section of the business plan to identify impacts on your area of responsibility I Identify a supporting mission statement for your area of responsibility I Identify the key results that will be required to meet day-to-day operations and to help achieve the strategies and objectives of the company I Solidify the direction and purpose served by this business and support functions I Begin to develop the framework for a specific operating plan Outputs I Sample key results areas (KRAs) for the functional plans: R&D Launch new products ahead of the competition Reduce cycle times I Sales Achieve revenue goals Create customer retention program I Operations Meet production goals Improve customer satisfaction for on-time delivery of products and services I Engineering Improve product and service quality Support reduction of cycle times I Finance Provide financial analysis tools, turnaround reports, and timely information required to track and measure business performance (monthly, quarterly, annually) I Purchasing Increase supplier quality Reduce lead times for raw and finished goods I Human Resources Ensure proper talent is acquired (right skills and motivation) to meet business plan requirements
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Creating a Focused Business Plan
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Information Technology Provide support for software development to meet information reporting needs Provide on-site problem-solving support via company-managed help desk Safety Reduce lost-time accidents Expand safety awareness programs to every department in the company
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Sample Functional Plan Format: Focus on Part 1
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The information presented in 1 regarding the development of a mission statement and the information gleaned from your business plan will provide the input for completing the first part of the functional plan Use the following format as a guide to using the information presented in this book
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FUNCTIONAL AREA
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Mission Statement: Part 1 I Key Results Areas Part 2 I Objectives I Maintenance I Improvement I Other Part 3 I Organization and Human Resource Plans I Link to Annual Budgets Part 4 I Performance Standards and Measurements Established Part 5 I How Tracked
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Integrating Plans
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In most business operations, discrete functions emerge after startup that are required to run the business effectively Each of these functions
Manager s Guide to Business Planning
CREATING MOMENTUM FOR BUSINESS PLANNING
The idea of participating in a planning session often evokes FOR visions of boredom and just plain old lack of enthusiasm One EXAMPLE way to create momentum for the planning session is for the company leaders to emphasize the importance of participation and that they are counting on every employee s input for the company to be successful in a given business year Some examples of creating momentum are: publish the planning calendar well in advance, prepare departmental managers with worksheets and planning tools, provide opportunities for brainstorming sessions to gather data and share ideas during the planning process, create updates and communications that place importance on the planning process and the end results, and use town hall meetings to create motivation and participation in helping to shape the direction of the company will produce an individual plan in support of the overall company business plan and strategies One danger that exists in all businesses is the planning-in-a-vacuum risk, in which an individual function or department plans in isolation and lacks an integration point with other parts of the business This is often true where a business has become interdependent in all aspects of its functions in order to be successful in reaching its goals There are two key integration points that will be addressed: horizontal and vertical When these integrations are completed, the likelihood of business success in a given year increases and the company achieves an important step in alignment
Horizontal Integration
The first integration that should occur prior to the finalization of the functional plan is a planning session that involves cross-functional representatives, often unit managers, to share preliminary key results areas and objectives The identification of interdependencies with the other functions required for successful overall business plan achievement is discussed An important takeaway here is the agreement on shared responsibility for achieving results
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