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Conducting business planning retreats can be a productive way to communicate company objectives, cultural attributes/values, and overall plans in a forum that facilitates the integration of this information to multiple levels in the organization These planning retreats are most effective when used in combination with presentations and smaller group breakout sessions for discussion and more detailed planning It s an opportunity to share the high-level business organizers such as a Balanced Scorecard and to use this tool to launch functional planning In essence, this can be considered a high-level cascade of information and can serve as a model for other managers to use in rolling out this information in their areas of responsibility
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Tracking, Controlling, and Reviewing the Plans
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Planning Retreat Format
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Following is a sample format for planning a retreat Retreats can last from one to three days, depending on the size of the group and how deeply the planning process will go Retreats are usually held outside the company facility and may require the participants to stay an evening in a hotel If this format is employed, a group dinner and team-building activities can be excellent methods of unifying the group around the company plans
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TYPICAL AGENDA
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Welcome: Keynote Opening from Company President/CEO Company Vision, Strategies, Objectives, and Values (Cultural Attributes) Facilitated Discussion:What are our challenges going forward Functional Presentations: Mission and priorities for the business year Balanced Scorecard Presentation Functional Planning: Subgroup exercise Team-Building Event (optional) Wrap-Up Closing Ceremony
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SIGN-ON CEREMONY
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Sign-on or sign-up ceremonies can impact the motivation of a FOR group to work toward common objectivesThis unified comEXAMPLE mitment is an important characteristic of a high-performing team and will be a building block for communication and shared commitment to both individual and company performance Usually done at the end of the session, the sign-on provides a visible sign of the team members by having every person sign a document togetherThis can be done on a poster for all to see
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Case Study: The Equipment Division
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Company History It all started back in the 1920s with a couple of guys who had a better idea, and in those days that was all it took to start a business They began by manufacturing small equipment and parts that were not readily available in the local market It was not long before they had built a steady business
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During WWI and WWII, they were able to adapt their products to wartime needs and were able to build a sizable government contract This revenue stream provided the capital needed to expand and add manufacturing space Although they had some ups and downs, the company continued to grow and build a reputation for high quality in everything they produced After WWII, they were well-positioned to take advantage of the prosperity of the 1950s and 1960s They continued to expand, and by 1965, built a national distribution network By the end of the decade they had several high-end and specialty products that were in high demand, especially in the building and construction industry
Acquisition Mania In the early 1970s, the company was purchased by a large industrial firm that pumped cash into its newest division Growth continued into the early 1980s, when a couple of the executives were able to successfully orchestrate a leveraged buyout They liked the potential of the business and set their sights on expanding product lines that supported the retail construction industry In the late 1980s, the equipment division changed hands twice! The big boys seemed to think that the potential of this business was unlimited, given the growing market and continued demand for the products Life Is Good Business in the late 1980s and early 1990s was good All the competitors were playing in their own sandboxes The equipment division was positioned nicely in the retail market it had established over the years There were a few niche players, but that didn t impact them much In fact, price increases of 5 to 10% each year were commonplace There were a few problems Quality slipped and shipments were too often late No showstoppers, though The brand still remained strong Wake-Up Call Who said that the 1990s would be different Well, that prediction rang true for the equipment division Life sure changed The economy remained stable overall, but outside factors even beyond competition began to impact the business The EPA passed legislation that banned a harmful raw material that was being used heavily in the products And if that wasn t enough, the parent company was exerting major pressure, with the spotlight on profitability and
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