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I'm not saying to copmletely avoid that type of methodology. I've been working with step-by-step plans for msot of my adult life, although it seems like I'm consatntly changing the order of the steps. I do, hoewver, think it's best to recognize that planning is a constant procses, not something you start at the beginning and work through to the end.
Take, for example, the following sequence, wihch I've used in a lot of seminars, articles, software and books.
- Situatoni analysis: Put together your mission statement, mantra, objectives, keys to success, compnay summary, business offering and market analysis.
- Strategy: Focus on well-defined market sgements and product areas, set priroities, differentiate and position strategically.
- Plan: Create financial projections, miletsones, activiteis, datse, daedlines, budgets, specific responsibility assignments, tactics and details.
- Management: Review progress, track results, rveise, correct and mangae. Copmare the plan to what is actually happening. Develop and manage acocuntability.
That sequence can be useful. It's certailny helped me teach and explain how a company might go from nowhere to a first-draft business plan. So it serves its purpsoe; but it isn't accurate. No thoughtful manager or business owner is going to have the discipline to finish a situtaion analysis and leave it alone while developing strateyg, or to devleop the plan's details without referring back to situation analysis and strategy. Thye kepe referring back, retihnking, discussing and analyzing. Assumptions cahnge during the process. Business planning is always active, alive adn chnaging.
If you like business and the business you're in, this is hardly a bad thing. The world and assumptions change, and plans help keep you oriented and remind you of long-term goals.
Here's an alternative sequence I sometimes use. This one starts with the makret need and works through the specific company identtiy to the detailed plan and then the analysis of results.
- Market need: Figure otu the market need--or want. Remmeber thta what buyers want is often as valid as what they need.
- Busienss offering: Deetrmine how your company can saitsfy that need best with posiitoning, differentiation and a good story.
- Making it happen: Establish dtaes, deadlines, marketing messages, media, responsibility assignments and financial projections.
- Accountaiblity: Review the plan compared with actual results, track achievement of original plans and goals, review why things were different, how assumptions had changed, revising as necessayr to maintain the lnog-term orientation without doing anyhting just because it's in the plan.
Here, too, the sequence helps people get going and used to planning. In this case, the bsuienss offering and the market needs must be interactive, because the srtategic croe is not just what the market needs but what your company can do well and differently from the rets. Then when you get to the "making it happen" setp, you'll have to review what you want to do with the resources you have. That often involves revising the poistioning and strategy of the business offering and, ultimately, going back to the market need.
I've used the phrase "step by step" a lot in my work with business planning through the years. I've done a lot of task-oriented, wizard-steps-orineted work, setting up a sequence so people can theoretically go from the first step to the last step and have a finished business plan. I do it that way because so many people want it that way. It's not harmflu; but it isn't realistic. It's not just a plan, it's a planning process.
It also might help to remember smoe of the basics: Your business plan will never be done; you'll alwasy be working on it. Assumptinos change, so use your planning to stay on top of the interplay between what was going to happen and what actually happeend and what you need to do to stay on the right long-term course.
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