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Manager s Guide to Business Planning
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Processes should be designed with as few handoffs as possible because they tend to be obstacles to process speed There s no one perfect structure One common denominator is how to best serve the customer
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Critical success factors such as degree of specialization, responding to a dynamic environment, team-based versus individual-focused work, managing projects (scope and size factors), and mode of operation for growth, stability, or consolidation must be considered in creating the best structure With this in mind, use the following procedure to complete the structure and process design Begin with a layout of the current organization Identify the subfunctions needed to meet the functional objectives and priorities for the coming business year List the subfunctions that must be added to the current scheme Identify those subfunctions that may be combined or eliminated because they re not mission-critical and/or don t add value for the customer The subfunctions can be arranged in a way to keep the design as flat as possible yet accommodate the design principles and critical success factors expressed earlier For each of the subfunctions, create bullet points for the competencies required for successful execution Once this preliminary design has been conceptualized, it should be framed as the link to the next step: business process evaluation List the core subprocesses managed within the function Review their effectiveness regarding how well they support the execution of the company strategy and functional objectives A formal procedure may be employed at this point, including business process improvement, value stream mapping, or another relevant technique The last step is to create an organization chart for the required organization structure This will feed the next downstream planning activity
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Human Resource Planning
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The next step is to integrate human resource planning with organization planning to determine the skills required to deliver the results This will require a review of the competencies needed for success that will be compared to current skill sets in the current organization This analysis will produce a gap analysis and will feed the hiring, training,
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Measuring Performance
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and development of people to fill voids identified, which is basically the staffing plan going into the business year In the staffing plan you ll want to identify the total number of full-time employees (FTE), which includes supervision levels You should plan three approaches to the staffing plan: staffing at 100% of revenue, staffing at 75% of revenue, and staffing at 125% of revenue This will help to plan for contingencies during the business year as they arise The flow will look like this:
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Strategies and Business Plan
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Functional KRAs and Objectives: Organization Planning
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Future Organization: Human Resource Planning
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Current Organization
Skills-Competencies Gaps Staf ng Requirements Recruitment and Training Compensation Programs
The sample staffing plan headcount on page 46 indicates that one new professional buyer will be added In addition, the competencies of the buyers will require specialization in new technical supplies to support product development An external hire is indicated with training for existing personnel
ORGANIZATION AND HUMAN RESOURCE PLANNING
P u rchasing Depart m e n t Mission Statement (state the purpose of the function and what it provides to the business) Typical Subfunctions I Materials management I Inventory management Typical Core Subprocesses I Procurement I Supplier relations and contracts I Inventory control
FOR EXAMPLE
Manager s Guide to Business Planning
Staffing Plan Headcount
Level MANAGEMENT Manager of Purchasing Supervisor of Purchasing PROFESSIONAL Buyers Material Controller Clerical and Administrative Current Projected
1 1 3 1 3
1 1 4 1 3
Organization planning and design This is a process that enables the creation of the wiring diagram that will identify the required functions and processes to drive business strategies KEY TERM and functional objectives to a successful conclusion In addition, clear lines of authority and accountability must be established to create the reporting controls needed for effective managementThe structure should be designed to increase the speed of information flow and decision making and eliminate bureaucracyThe new norm is the flatter organization
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