Articles tagged "Management"
In a tough economy or a vibrant one, gaining or finding and hiring good employees is one of the most challenging, and re-curing problems confronting most organizations. We've all done it, and many still do: In our desperation to fill the empty position, we simply hire the most interested, and sometimes, the only applicant who appears close to what we're looking for.
If you're wondering when to update your company's strategic or business plan, here are ten indicators it may be time:
- Someone wrote "Update Me" in the dust on the printed version of your plan.
- You vaguely remember creating your plan about the same time you bought your first fax machine.
- When asked if they've ever seen your company's strategic plan, your employees laugh and reply, "Strategic plan? This company has a strategic plan? I don't believe it!"
- You ask eight different employees to identify the top three projects the company is working on and you get eight different answers.
- Projects and project budgets drift and are regularly "cannibalized" by new projects.
- There are regular turf battles across departments on whose project is more important.
- Your company no longer does what your mission statement says you do.
- Your current company vision is similar to: As a premier company, we will provide exceptional services so that we may exceed our customers' expectations.
- The economy has changed. Regulations have changed. There are new competitors and new business models challenging your products and services.
- Another year has passed.
You probably need to update your plan, right? However, before you dust off your old one, stop and ask yourself a very basic but important question:
"What do I need this plan to do for my company?"
"Do I need an updated plan to share with my bank or an investor to support my request for credit or capital? Do I need an updated plan to reshape the focus and direction of the company given changes in our industry, the economy, or other factors? Do I need an updated plan for my team to use as our roadmap over the next few years? Or, do I need to update my plan because it's covered in dust!"
Whatever your reason for realizing an update is in order: Great! However, you need to be clear and honest with yourself and your team going into the planning process. Whatever the reason: financing, strategic, or business operations, if you want your plan to actually be of use to you, it needs to become one of your primary management tools that you consider every day - and I do mean every day. It's not doing you or your company any good if it's sitting on the bookshelf. An effective plan takes time, dedicated thought, and coordinated planning to develop. Updating your plan doesn't have to be painful. However, it needs to be purposeful and then it becomes incredibly useful. I'll share why and when to update your company's plans in this article, and in a future blog we'll talk about how to update it and manage it.
So why do you create or update your company's plan? As suggested above, first determine what purpose the plan will serve. If it is a financing request, you'll need a business plan and its intended purpose is to clarify financial need and payback terms. You then need to include relevant, clearly outlined financial projections of capital need, revenues, cash flow, expenditures, etc., over the period in play. A good Certified Public Accountant can help identify and prepare the appropriate financial statements, schedules, payback projections, and charts to bolster your case. However, remember, the reviewers are going to need to be "sold" on you and your team's management capabilities, business/market strategies, and overall projected "Business Plan" to ensure the success and payback you're projecting. You're asking a bank or investor to "be sold" on your capabilities to do what you say you can within a specified time period. You need to consider and address all of the possible "But what if," scenarios they may ask. Remember, they're trying to protect their investment. If they believe your plan, you may get the money. If they don't, you won't.
A strategic plan and a business operations plan are more internally targeted as the audience is more often the board, management team, and employees. Stakeholders and others also review the plan, but a strategic or business operations plan outlines organizational direction and major projects to move the organization forward. With these types of plan, you're not focused on "selling" your qualifications to anyone. The purpose of a strategic plan is to clarify where your organization needs to be three or more years into the future to ensure its viability and success - i.e., your company's big goal; its vision, and then broadly, how you will get there. A business operations plan then details the goals that need to be accomplished to move your organization toward its vision.
Given the rapid changes in technology, the economy, regulations, etc., my clients are now limiting their strategic plans to roughly 3-5 years out; business operational plans typically focus on the next 1-2 years so they can adjust to environmental conditions as needed. Business Operations plans serve as a roadmap for management on what needs to happen and when to ensure there is a well-orchestrated coordination among all departments and projects to move the organization forward. When created effectively, strategic and business operations plans become critical management project planning and tracking tools that are referenced regularly.
Now you know when and why you would update your company's plan. In a future blog, we'll talk about how to update and manage your plan.
Copyright MMX - Liz Weber, CMC, CSP - Weber Business Services, LLC – www.WBSLLC.com +1.717.597.8890
Liz supports clients with strategic and succession planning, as well as leadership training and executive coaching. Learn more about me on LinkedIn!
(As printed in the PA Business Woman Magazine MMX)
I've heard the same question from three board presidents over the past few weeks: So how do we make sure we implement the strategic plan we just completed? My answer: That's your job as the board president. Make strategic plan updates a regular part of your monthly or at least quarterly board meetings. Put it on the board meeting agendas; then address it. If you don't track it, monitor it, and coordinate with the CEO and others as appropriate to make sure action is being taken, who will? Your CEO may - or may not.
If your strategic plan is not important enough to you to track, why bother to develop one in the first place?
Now, I do believe I know why these board presidents are really asking the question: They don't understand what their job as board members - and specifically - a board presidents is. Boards of directors are supposed to give direction to the CEO or administrator. The boards are supposed to determine strategy based upon their expertise and ability to see the big picture because --- now pay attention to this part --- they're not wrapped up in the day-to-day management issues of the organization. This is where many boards run into problems. The board president and members are often too involved in the day-to-day management of the organization. Because many organizations have limited staff and managers, many boards "get really involved" in the business, and often end up being "doers" and "wannabe managers." They then stumble over themselves and the "real managers" on who's doing what, and they lose sight of what they're supposed to be doing as a board: determining strategy, monitoring and providing direction to the CEO, tracking the financial statements, and planning for leadership succession. Who has time for that when you're involved with determining vacation schedules with staff?
So what can a board do?
- Let staff and management do its job. Get out of the way. Stay out of the day-to-day management issues.
- Find stronger managers/leaders if necessary who are capable of handling the details so you can focus on board issues.
- Remember, the management team works for you: you don't work for them. If you're doing things the managers should be doing, become aware of it, make them aware of it, and start doing your respective jobs.
Boards should do board stuff. Managers should do management stuff. It tends to work better that way.
What do you think?
Copyright MMVIII - Liz Weber, CMC, CSP - Weber Business Services, LLC – www.WBSLLC.com +1.717.597.8890
Liz supports clients with strategic and succession planning, as well as leadership training and executive coaching.