Strategic Planning With Implementation in Mind

Plans come in all shapes and sizes, but the sorts of plans that I have in mind are those whose effective implementation is vital to the organisation's continued well-being. The plan might be a marketing plan involving the development of new markets and products; it might be a restructuring to enhance flexibility and customer focus or the adoption of a concept such as lean thinking. It might be all of these which, together, form the elements of a strategic business plan. The common denominators are that the effective implementation of the plan involves many more people than were involved in the plan's formulation and the price of failure to execute is high. The three fundamental reasons for poor strategy implementation are: Planning and implementation are seen as two entirely separate activities whereas the reality is that the seeds of success or failure are sown the moment the planners sit down to plan. Planners spend a disproportionate amount of time deciding what they are going to do rather than dividing their time equally between that and planning how they are going to do it. Too few people are involved in the "how" process - assessing the plan's feasibility and its impact on all the organisation's resources. These are further broken down into the following 13 barriers to good planning: Planning Barrier No.1 - "The plan did not take into account the new environment we were operating in". If the plan ignores the present or fails to predict the future environment that the organisation will be operating in, it is doomed to failure from the start. Planning Barrier No.2 - "The rationale behind the plan was never incorporated into the written document" It is said that 70% of people will change, given a good enough reason to do so. Since almost by definition these days plans involve change, the rationale behind the proposed changes must be explained and justified. It is not sufficient to state that "this is what we are going to do". 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A division of a large public company recorded an average CSI that was satisfactory but which masked a significant problem - inconsistency. The 24% of clients who rated the supplier very highly was offset by the 27% of clients who were dissatisfied with the supplier's performance. The supplier decided to set an overall goal of a certain CSI to replace the contribution margin that they had previously used. Although the staff found the new measure of performance much easier to relate to than the old one, it would have been even better if the revised goal was to eliminate any customer ratings below an agreed figure in an agreed time frame. Planning Barrier No.4 - "The plan was just a series of activities - there were no clear results to aim for" If you were trying to lose weight, you might decide to exercise more, drink less alcohol and eat more green vegetables. These are activities. I'm sure your campaign would be far more successful if you set a goal weight to be achieved at the end of 12 months together with intermediate monthly targets. Corporate plans are no different. Planning Barrier No.5 - "Those responsible for the plan's execution were not sufficiently involved at the planning stage" There is an old adage that says that the more people who plan the battle, the less there are to battle the plan. Not only does this strategy begin the transfer of ownership from the "planners" to the "implementers" but it also results in a better quality of planning. Planning Barrier No.6 - "The planners failed to integrate the plan with the current circumstances facing the organisation" Very few planners start with the luxury of a clean sheet of paper. As a consequence any plan needs to address the present as well as the future. Womack & Jones in their book "Lean Thinking" recount the story of a company that decided to embrace the concept of "Just-in-Time" - reducing inventories and manufacturing batch sizes. Unfortunately for them, they made no fundamental changes to their production system that remained as inflexible as before. Manufacturing costs and freight costs skyrocketed due to increased machine downtime and the need to airfreight customer orders to meet delivery times. These six barriers are connected to the first component of any plan which is deciding "this is what we are going to do". The next stage is to think through the implications of stage 1 of the plan on every function that makes up the organisation. Planning Barrier No.7 - "The implications of the plan were not sufficiently worked through by the planners" For example, what if the plan calls for the development of six new products a year? Such a target has implications for Development, Production, Marketing, Sales, Distribution, Supply, HR and Finance. To minimise this problem, you need to involve the people with detailed knowledge of these functions at the planning stage.