Tuesday, July 13, 2010

I Love It When a Plan Comes Together

Watching the All Blacks take apart their opposition, like they did the Boks on Saturday, is always a satisfying experience. Doing it in the clinical and comprehensive way they did was doubly satisfying. To a man everyone had a great game. They all seemed to have a specific role and executed it well, both on attack and in defence. The Boks were simply shut down at every stage and never allowed a look-in.

That type of performance does not come about by chance. Sure, the Boks probably took the game a bit lightly and figured that sooner or later they would get an intercept try and things would swing their way, but the All Black’s game plan did not allow that to happen. The All Blacks obviously had a plan and they stuck to it. And it was beautiful to watch.

So too in business it is a beautiful thing when a plan is well put together and executed with focus. The game of business is a lot longer than 80 minutes and a lot of outside factors influence the run of play, but some good planning and day to day actions that are aligned to the plan will help a business achieve a winning score. So what are some important elements of a good business plan?

Objectives. Setting clear, realistic objectives help to provide a long term target and also help to measure decisions against. Will this help us achieve our objectives? Yes, then let’s do it. No, then let’s think again.
Realistic Financials. Setting a lofty target is one thing, but financial predictions of super profits and huge returns are not helpful. Targets and assumptions need to be defensible, especially if you are taking the plan to the bank or other investors.

Cash Flow. Along side projected P&L figures, attention should be given to the effects of cash flow on the business. Having a growing profit is one thing, but how will this be financed and will the company run out of cash before the goals are half way achieved.

Brevity. It is not necessary to write a 30 page plan to be effective. It is better to keep the plan to under 5 pages and put the detail in some other supporting documents. A weighty document is likely to be relegated to the shelf because it is too long to be referred to on an on-going basis. I would rather see a 5 page plan that is covered in hand written notes, with coffee cup stains and bent edges being used. At least it is more likely to be read and updated on a frequent basis.

Review. The best plans and more like a blueprint for a house. They are a living document that is referred to on a constant basis and updated due to changing circumstances. The ultimate goals may not change, but the path or timing towards those goals may.


Those are a few points that will help to keep the planning process real and effective. There are others and I will cover off on subsequent posts. Meantime I look forward to another AB win on Saturday and will be interested how they adjust their game plan to take account of the wounded Boks. Go ABs!!