So, what do you require for a plan? Information, facts and your assumptions. In order to establish a plan, there is some analysis required, some preparation in order to piece everything together. You’ll need to make some deductions from the available information and assumptions you make. Now often the case will be that the plan sets itself out in front of you quite clearly, in order to get from A to B I do x, y and z. How many of those plans have worked for you? How often have you abandoned the plan owing to the changes encountered? The obvious answer is known as ‘the most likely course of action’.
In this planning process, you’ll determine the number of courses of actions or COA’s. You will determine the least likely COA and a number between that and the most likely COA. This will allow you to prepare for other eventualities, have the agility that if or once the plan changes you can adapt swiftly knowing what you need to do.
You might be thinking right now ‘that’s ok in the military context, business isn’t like that’! Let me ask you now if you have a cash flow forecast? From my experience, very few small and medium-sized business will develop a cash flow forecast. Essentially determine the most likely COA in terms of their income and outgoings within the business. Let’s be clear in business you’re going to want to avoid the avoidable. Here we can shape our future, we can now make some assumptions towards what we desire happens.
Now this is all well and good when its business as usual, what about when there's a crisis? We need to have clarity of thought, we need to be able to plan under pressure, we need to remain claim and we need a framework to use. The business estimate is a modified process from which the military have been able to plan with clarity in extreme situation. Today I offer you a version you can use in business, these 7 questions will help you develop a clear plan of action in any crisis situation and out of crisis.
In developing the business estimate there are two parts, first situational awareness
and second the development of the plan. The first is situational awareness takes a good look at the environment in which your business operates. The impact of competition, the habits of your prospects and the impact of external influences; political, economic, social, technical, legal and environmental (PESTLE).
Situational Awareness
Question 1 – What’s happening in the marketplace/industry and why?
In order to make some assumptions towards creating your plan you’ll need to take a look at the following:
- What are the current market/industry trends which affect the business environment? What assumptions can we make about the habits of the potential customers, why are they buying, where are they buying, how much are they buying and what stops them from buying from us? From this what are likely to be the COA’s; most likely, probable and least likely?
- What are the competitions capability in these highlighted areas and what do I need to do in the business to counter them?
- What are the intentions of my competition in direct response to or in reaction to my actions?
- What will be the likely financial consequences of these?
Question 2 – What is the purpose of my business and why?
From your vision what is your purpose, why are you doing what it is you’re doing? What are the driving factors here, what is it that will set you outside your competition? What are the drivers of the business? Why do we exist? What drives the business, the team and indeed our customers?
What are the constraints we have to take into account in regards to our purpose in relation to time, team, finances, marketing, sales, logistics or any other relevant impact on the business and opportunities? Which of those do we impose on ourselves? Which are imposed on us and outside our control?
What are the specific outcomes and deductions in relation to my business purpose? What is absolutely essential? What are the critical numbers required; the break-even, the gross profit, the net profit, lead generation, conversion rate, production requirements, service levels, the prospect habits, locations, and needs?
What are the implied outcomes and deductions required from my business purpose? The standards and values; service/product quality, quality assurance, customer relationship management, skillsets and training required etc?
It’s important to ensure you evaluate and re-evaluate throughout this process to ensure the circumstances and the market situation remains the same in context to what you aim to achieve. The concept of the plan doesn’t escalate and become over complicated.
Question 3 – What impact do I want to have on the marketplace and what must be achieved in order to achieve that; the key performance indicators?
In answering this question you’ll start to gain an idea in direct relation to what you want and need to achieve within the marketplace. This will help to determine the level, consistency, and quality of action and the potential resources which will be required. You will further develop specific targets and goals which will need to be achieved in order to have the desired impact.
You will further establish what the major focus is, what is the desired outcome, in terms of revenue, new business, clients, leads generated and from this where the focus needs to be. What will all the actions be focused on achieving? You can also develop and determine what the main effort will be. In all activities what will be the one major outcome, the impact which will be desired. In this manner, you will remain focused on achieving the overall impact.
Areas to consider in the market: market segmentation, targeted marketing, who you are targeting, where will you find them, what they seek, what they need, your USP. In terms of measurable you might want to consider: lead generation, conversion, average transaction, average spend, hourly rates, break-even, gross profit.
Development of the Plan
The next 4 questions will allow you to start to develop your plan, what actions and activities need to be defined in order to achieve your goals.
Question 4 – What are the business objectives and how can I best achieve them?
Having a clear understanding of your business environment, you can now begin to take a look at developing a plan of action.
What will the objectives and outcomes be for marketing, sales, logistics, operational, financial, HR etc? Who will be responsible for the delivery of the outcomes, what team collaboration will be required and what managerial support will be needed to support the activity?
You can determine what the mission for the plan should be, which will give the business the outline guideline of what must be achieved. As a reference, it will keep the team on track to accomplish the plan.
Question 5 – What will be the resource’s need to accomplish the objectives?
Here you can determine what you will need to assign to each of the desired outcomes in order to ensure they are delivered. How much time will need to be allotted? What are the financial implications and how much will be required to invest? Who will be given the task and what levels of managerial support will be required?
In addition to this what levels of constraints will be required, what are the decision points, what activity and action when accomplished or when it happens will trigger additional actions, outcomes or choices of direction to go? What are the levels of autonomy in regard to making decisions?
Probably most important here is what direction and support do you need to ensure is in place to facilitate the delivery of these tasks and outcomes required. How much detail will be required for the team to undertake the activities?
Question 6 – When and where will the activities take place in relation to the overall desired outcome?
What will be the timeline in order to synchronise and deliver the outcomes of the plan? When will activities take place and what will be the priorities of the activities? What will need to happen in order to trigger the following activities? You’ll also be able to define where decision points will be, at which point a multitude of alternate actions can be defined only by the specific outcome of the previous action. In these cases, it may be a financial target that will trigger a certain level of marketing or different marketing activity.
This is referred to as the Gantt chart in the project managing world. As a visual aid, it can be extremely beneficial in monitoring the progress of the plan, individual activity, market trends, sales activities and your operational outputs.
Question 7 – What control measures and limitations do you need to ensure are in place?
In order to create momentum and facilitate the delivery of the plan without you becoming the default solution to every problem or issue you will need to have clearly defined limitations for the team. At which point do they need to seek clarity. What happens if the situation changes and when do they need to refer to you for guidance.
The Business Estimate allows you very swiftly to establish a plan of ACTION. You can use the estimate to deal with a challenge that needs dealing with right now. Just answering the 7 key questions will ensure you develop a plan. For a more detailed plan you can then dive into each question and create a comprehensive plan of action.
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