I'm Not Sure Where We're Going - But We're Making Good Time
By Gary Drake, Associate Director, Operational Efficiencies and Organizational Effectiveness, CLIENT ADVOCATE NETWORK
At some point in our career, all of us have had that feeling. Waking up at 3 am in a cold sweat, wondering what to do, or what our next step should be.
Whether your business is large or small, several key elements should be in place to reach your goal(s). These are: a written Business Plan, an Organization and Processes to execute the plan, identified Key Measurements for periodic feedback of variance to plan, and proper allocation of Capital, People, and Knowledge. These elements overall will define your Business Model. Your Plan and Processes must be in writing. If these elements are not in writing, then it has not been said.
Why have a written Plan?
- Allows Management to brainstorm and talk through the Business Goal(s) and Objective(s). The Plan creates a visual "Roadmap" that outlines your Goal(s) and uncovers possible obstacles. It will allow for the evaluation of the Goal(s) making sure that each is obtainable. This addresses the Strengths, Weaknesses, Opportunities, and Threats that the business must both rely upon and overcome to reach its Goal(s). These areas include both internal and external conditions. This evaluation will lead to a gap analysis so management has a clearer understanding of how to allocate Capital, People and Knowledge.
- Allows Management, using Key Measurements, to compare actual performance against the plan so necessary corrective action is taken in a timely manner. If the business lacks a plan, Management will be reactive rather than proactive. Our "Roadmap" will provide options to manage variances with clearer solutions. Managing "variances" is one of management's key responsibilities.
- Allows Management to change the Goal(s) and Objective(s) in a proactive manner with an understanding of the change's impact.
- Allows Management the option, when there is a variance from plan, to determine the real cause of the problem instead of just the problem's symptoms.
Why have written Processes?
- To identify the steps required in executing the Business Plan. These are a collection of activities that will produce results necessary to meet the goal(s) and objective(s). These processes are critical, since they generate revenue and often represent a significant proportion of costs.
- To help define the skill sets and other resources of the organization's internal structure.
- To provide a framework for Ongoing Process Improvement to eliminate waste, reduce cycle time, and improve efficiency. This will improve customer satisfaction, increase revenue and reduce cost.
- When processes are changed, this allows Management to understand the real cause of the problem, and to differentiate causes from symptoms.
With a written Plan, and Processes to execute it, the required resources can be identified, acquired and allocated in an efficient manner.
Without a Plan, success is more luck; just being at the right place right time. Even then, Management will probably not have a good understanding of what really happened and more importantly - why.
Creating a Plan without Processes, resources cannot be clearly identified, acquired, and allocated. Management will be inefficient, more reactive than proactive. This management style is known as Fire Fighting.
By creating a written Plan, and uncovering the Goal(s) and Processes to execute it, you will able to connect the dots with efficient utilization and allocation of Capital, People, and Knowledge to ensure your success.
We will then "Know Where We're Going and Be Making Good Time".
Managing "Variances" and understanding their causes will help create a more productive and successful business environment.
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