Business Planning and Plan Governance
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Learn an approach to business planning, what is important, what must be learned and how to govern them over time to stay on course.
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Business Planning and Plan Governance
- 1. BUILDING A REALITY-BASED BUSINESS PLAN TO DRIVE RESULTS Planning and plan governance is a critical part of a firm’s leadership infrastructure: a framework that keeps the entire team aligned and focused.
- 2. WHY WE NEED TO PLAN Five Clients with Five Unique (but common) Stories The Emotional CEO (with A.D.D) The Reluctant & Introverted CEO The Beer Garden Dreamer The CEO Atop the Rocket The Rocket That Ran Out of Fuel
- 3. THE PLANNING PROCESS IS TAILORED TO THE SIZE OF THE ORGANIZATION
- 4. LEADERS LEAD
- 5. ENTREPRENEURS HYPOTHESIZE & TEST SCALING COMES LATER Hypothesis Plan New Hypothesis Plan Identify Critical Assumptions Identify Critical Assumptions Develop New Strategies Prove or Disprove Them Prove or Disprove them Establish new data set Establish New Data Set
- 6. PLAN FORMAT (COMPANY, FUNCTION, DEPT.)
- 7. EIGHT FUNDAMENTALS LEAD TO SUCCESSFUL PLANNING. Its not really about “the plan”. It’s the planning and the governance that pays big dividends.
- 8. 1. THE TOP SETS DIRECTION
- 9. 2. CRAFTING LEADS TO A SENSE OF OWNERSHIP
- 10. 3. VISIBILITY TO ALL LEADERS
- 11. 4. BOTTOMS UP CAPABILITIES CONFIRMATION
- 12. 5. MEASUREMENTS
- 13. 6. INSURE SUPPORT FOR DEPENDENCIES
- 14. 7. THREE PHASES
- 16. BUSINESS PLANNING GOALS Learn • All leaders learn to plan. • The CEO learns to drive the process. • An operations focused leader learns to guide the process. Balance • Get the planning done quickly, while leaders can focus on it. • Be diligent in the planning, uncovering the likely problems. • Balance speed with diligence, through coaching and CEO support.
- 17. BUSINESS PLANNING GOALS-2 Prioritize Decide • This process is only for the most important priorities. • Identify projects and work that should NOT be prioritized. • Clarity on priorities means that departments will work together. • Strategic or operational debates must come to a head. • Decisions must be made so teams can execute without hesitation. • No decision must mean no execution.
- 18. BUSINESS PLANNING GOALS-3 KPIs Projects • Targets must be set and committed to. • KPIs must be date bounded. • Organizations new to planning should focus on the striving for a target, more than target attainment. • Projects must have deadlines. • They must have one responsible party (the plan owner). • They must be broken down into written steps for project management.
- 19. PLAN GOVERNANCE Expect what you inspect. Monthly team reviews at each level of leadership in the organization delivers exposure and visibility, allowing for appropriate rewards (or discomfort) that drives focus and innovation.
- 20. PLAN GOVERNANCE Scheduled Presented Targets Recorded • The plan review meetings must be set in advance, creating pressure to update scorecards and progress reports. These plan reviews are never skipped—only rescheduled if required. • Each plan owner must present their results. • Targets are not adjusted during the plan review phase. We hit them or we miss them. • Each plan owner must record their results each month, and compared against targets and prior year (if available).
- 21. PLAN GOVERNANCE - 2 Facilitated • The meeting must be facilitated, to insure it stays at a high level, that there is broad engagement, and that all plan reviews are completed in the allotted time for the meeting. Escalation • An escalation roster (ER) of issues needing deeper discussion must be created, with the responsible party noted (to insure follow up). Big Issues • Any issues uncovered that require the entire team’s participation can be worked once the plan reviews are concluded, if there is time. Forethought • Displeasure on the part of the leader should be expressed at these meetings only with careful forethought.
- 25. AN EXAMPLE
- 26. VISION
- 27. MISSION
- 28. STRATEGIES
- 29. OBJECTIVES
- 30. ACTION PLANS
- 31. TEN POINT ACTION PLANS
- 32. WORDS COUNT: CLEAN UP THE PLAN
- 34. Robert Sher is founding principal of CEO to CEO, Inc. and an online columnist for Forbes and CFO Magazine. The author CEO to CEO, Inc. improves the skills of of “The Feel of the Deal” and Leading in the leadership team of mid-market the Middle: Overcoming the Seven Silent companies who are navigating major Growth Killers of Midsized Companies shifts in their business or marketplace. (due September 16, 2014). Robert was We help these CEOs and their top teams CEO of a publishing company for more rapidly elevate their game and lead their than 20 years before launching CEO to companies to the next level and beyond. CEO in 2007. Who We Are and How We Help We work with the senior-most executive at companies or divisions with revenue from about $20 million to $500 million that are facing significant opportunities and challenges. Our clients are very talented CEOs who nonetheless feel they are still learning their craft; realize their company’s performance depends on improving their own performance; and want to enhance their skills rapidly and on the job. About Robert Sher Robert has worked with the CEOs of more than 80 mid-market firms including hyper-growth skin-care firm Rodan + Fields, Atlanta based Cellairis and the San Francisco law firm Hanson Bridgett. From 1984 to 2006, he was CEO of privately held, Bentley Publishing Group, which he grew into an industry-leading art publisher.
Editor's Notes
- Measurement is a critical step toward identifying both high performers and low performers in the environment. In order for measures to be effective, they must be relevant to the business, and accepted by the population as valid measures of their activity. Thus the measures must be built into operating plans, and crafted by each leader being measured. The top levels of leaders in big organizations spend much of their time planning. In contrast, leaders of small firms spend little time planning—they execute immediately. Execs of mid-sized firms must learn to devote more time to planning to keep up with a growing organization.
- 1. The broad intentions of the organization (i.e. growth, profit, geographic expansion) must flow from the CEO first, then the top team leaders, then downward from there. Teams cannot plan for progress in a certain direction until that direction is indicated.
- 2. Every leader must have a sense of ownership around their plan, and must have crafted the plan herself, with coaching as to process, format, and in full support of her leader’s plan. Her leader must approve the plan.
- 3. Plans at all levels must be visible to all leaders during the plan build, so that interdependencies and assumptions are accessible to all planners.
- 4. Capacity, capabilities and resources must flow from the lower levels of leadership up toward the company plan. High level executives cannot know for certain if certain projects or objectives can be achieved until lower levels have analyzed the challenges, identified the resources needed, and crafted a plan. Once accomplished, timelines and confidence levels can cascade upward toward the company level plans.
- 5. Measurements must use currently available data, or be able to use new reports or manual systems that can be implemented immediately. The creation of data collection processes are projects, not measurements. Once the project is completed, it might support a measure the next time the plan-build process occurs.
- 5. Measurements must use currently available data, or be able to use new reports or manual systems that can be implemented immediately. The creation of data collection processes are projects, not measurements. Once the project is completed, it might support a measure the next time the plan-build process occurs.
- 5. Measurements must use currently available data, or be able to use new reports or manual systems that can be implemented immediately. The creation of data collection processes are projects, not measurements. Once the project is completed, it might support a measure the next time the plan-build process occurs.
- 5. Measurements must use currently available data, or be able to use new reports or manual systems that can be implemented immediately. The creation of data collection processes are projects, not measurements. Once the project is completed, it might support a measure the next time the plan-build process occurs.