Setting Your Plan in Motion
Written by Kelly Scanlon
Implementing your plan is the biggest challenge in every growth initiative.
By Margaret Reynolds
The biggest challenge in every growth initiative comes with implementation. Most executives agree that the number one reason most plans fail is that they are not properly implemented. In fact, only 25 percent of investments in growth initiatives create value.
There are many things that can derail a plan. A few of the more common reasons are under-resourced initiatives and lack of consistent and regular communication. That can take the form of not achieving buy-in to the plan, not communicating how employees’ roles and responsibilities will change, having team leaders communicate different parts of the plan and not sharing how the components come together, or forgetting to provide updates and encouragement on a regular basis.
There are many things an organization can do to ensure their plan is implemented properly. The most important is to have a plan champion (usually the CEO) keep the plan visible and on the table. This usually involves discussing progress against the plan on a regular basis (quarterly is ideal), measuring progress against specific deliverables and outcomes listed in the plan and annually revising the plan to accommodate changes in the market or new information.
Here are some tools that can aid in the process:
Sequencing
One of the most common flaws in a plan is biting off more than our resources can chew. In other words, many five-year plans are comprised of initiatives in which everything is to be done next month with results next year. That defeats the purpose of a long-term plan. A five-year plan gives a company the opportunity to reach out beyond current processes, products and personnel to envision what might be, and then build the critical path to achieve it. Not everything can or should be done in the first year. Resources have to be practically managed, and it is often advisable to stairstep an action plan so that the company can absorb change as it goes.
Communication Plan
Because effective communication is one of the most critical factors in successful imple inmentation, every company needs a communication plan to accompany the strateg:. The communication plan does two things: 1) by communicating the plan, people are committing to it, and 2) it establishes accountability so communication actually occurs. Since many people are likely to be involved in that communication, it ensures that there are clear expectations and consistencies in the message.
Resource Planning
Every company has its own resource planning process. The key is to link that process to the decisions and assumptions you have created in the growth plan. So far in our article series, you have identified specific initiatives and the resources they will require. In completing your forecast, you made decisions about what expenses will be reduced in order to invest in these new initiatives.
In the sequencing stage above, you determined what order and pace these initiatives will follow, which also has bearing on your resource needs. The resource planning process should not involve a debate about what is important, as there should already be agreement based on your plan.
The key challenge here is avoiding the temptation to underfund new initiatives, which typically results in underperformance. Look for where a reduction in resources will have a relatively minor effect, and invest the savings in your new initiatives in ways that will have significant leverage. No department likes to give up resources, but if everyone understands the benefit to the company and, eventually, to them directly as the company increases its financial health and success, they will be much more supportive of the changes.
Measures
We have all heard the old adage, “What gets measured gets done.” But, do we really understand how to measure the right things? You can use a dashboard system and develop measures in three key categories that are linked to strategic objectives. To be effective, it requires the right measures to be selected, effective communication around the measures and the personal accountability of those required to produce the measured outcomes.
So where do you start? You start with your overall strategy. Ask yourself, “What actions are most critical to perform if I am to accomplish my strategy?” If you are Nike, how often you are able to introduce a hot new shoe style is critical. So an important measure might be percent of revenue from new shoe styles. If you are a manufacturer with a fairly stable product line, you may need to ensure growth by driving volume with new customers, so you choose to measure percent of revenue from new customers.
Measures are not limited to top-line drivers. You will likely have strategic measures for expense control, too. An across-the-board expense reduction, while possibly necessary, is usually not strategic. Rather, you may want to look at certain aspects of production that can be an enabler of your strategy. For example, improving inventory turn by converting to a just -in-time inventory approach may be a strategic benefit to your customer and an improvement to your business practice that yields important bottom-line benefits. That is a strategic measure.
Communicate, Monitor and Adapt
With these tools in place, you and your management team have created a plan for action that is reasonable and achievable. The key is then communicating with your team, monitoring performance against your dashboard and adapting to changes in your environment. Next month, we will review the ongoing dynamics in managing your plan.
Margaret Reynolds is managing principal of Reynolds Consulting, LLC. (816) 350-7680 // This e-mail address is being protected from spambots. You need JavaScript enabled to view it
