Knowledge Base

About Business Plans

Step-by-Step Implementation

Dr Jack Jacoby
DBA, MBA, BA, CMC, MIMC, AFAIM
Managing Director - Jacoby Consulting Group

Step 1. Project Start-Up

Start date:

Finish date:

1.0 Preliminary activity:

1.0.1 Establish Steering Committee for this project

1.0.2 Identify individual who will be selected and empowered to

coordinate this project, and act as conduit to and from external consultant

1.0.3 Confirm project:

1.0.3.1 objectives

1.0.3.2 timeframes

1.0.3.3 resources

1.0.3.4 Consulting resources

1.0.4 Select and establish Ratification Committee

1.0.5 Confirm presence, and authority of Executive to sign off appropriate procedural steps

1.0.6 Set workshop date, place and personnel and issue invitations/memos

1.0.7 Finalise workshop choreography

1.0.8 Confirm structure of document "Procedure for Plan Development" (Planning Document)

1.1. Formulate definitive statement of core, measurable objectives and required outcomes.

1.1.1 Document existing core measurable objectives and required outcomes

1.1.2 Ratification Committee reviews, amends and finalises "Statement of Core Objectives"

1.1.3 Steering Committee Chairman instructed to obtain sign-off on "Statement of Core Objectives" 

1.2. Have Executive sign-off "Core Objective Statement"

1.2.1 Steering Committee Chairman secures sign-off on "Statement of Core Objectives"

1.3. Formulate document entitled "Procedures for Plan Development"

1.3.1 Chairman of Steering Committee organises the collection and collation of material for the "Procedures for Plan Development"

1.3.2 Draft is reviewed and finalised by Steering committee

1.3.3 Copies are produced for workshop session

1.3.4 Finalisation of workshop presentation method and material

1.3.5 Produce workshop presentation material

1.4. Conduct one workshop for Divisional Managers and senior operating officers which will:

1.4.1 outline objectives of the Functional Plan Development Project

1.4.2 explain "Core Objective Statement"

1.4.3 explain Plan interdependencies and inter-relationships

1.4.4 explain the distributed "Procedures for Plan Development"

1.4.5 establish lines of communications for queries or calls for assistance

1.4.6 request questions and provide answers

1.4.7 confirm understanding of deliverables: content, quality, form and performance measures

1.4.8 obtain commitment on deadlines

1.4.9 obtain commitment on Project

Step 2. Divisional Affirmation

Start date:

Finish date:

Each division will have two days to confer with their own divisional personnel and confirm in writing to the Project Office/Coordinator:

2.1. who within their division has been allocated to the preparation of their Functional Plans (if this process has been delegated to any one other than the most senior functional staff member, then a justification for such a delegation must be provided)

2.2. what projects or processes are being deferred due to the re-deployment of resources needed to undertake this project (if any).

2.3. that the desired plans will be completed within the required deadline

2.4. that the outcomes from their division shall have "broad ownership" of the rationale, products, commitments and targets designated. If there is no such broad ownership of the division's plans, then at the time of the submission of the plans, a separate memorandum must be supplied detailing the scope, reason and implications for the lack of broad-based support.

Step 3. Marketing Assumptions & Orientation

Start date:

Finish date:

All Divisions complete that part of their marketing plan which:

3.1 - identifies all trends, industry structures, environmental influences and competitor strengths, status, and products.

3.2 - conduct a SWOT analysis for that division

3.3 - based on the foregoing, present a set of alternative options and strategies.

Broad argument for the acceptance/rejection of each must be presented with either one or a short list of recommended product strategies. The recommended option must capitalise on opportunities, minimise threats and risks AND which, at this stage, is most likely to fulfil the broad objectives.

3.4 - NO detailed product information is desired at this stage.

Step 4. Ratification - Marketing Assumptions

Start date:

Finish date:

Divisions return their Step 3. deliverables to the Project Office where the nominated review committee assesses all divisional marketing "assumptions" for:

4.1 - consistency with core objectives

4.2 - solidness of industry and market understanding

4.3 - accuracy and reliability of core information upon which

assumptions and recommendations have been made

4.4 - strength of business case logic

4.5 - ensure cross-divisional compatibility and complementarity and avoid

cross-divisional overlap

4.6 The Project Office will either:

4.6.1 Refer deliverable back to Division for re-work

4.6.2 Refer to Executive for sign-off

Step 5. Product/Strategy Synopses

Start date:

Finish date:

5.1 Upon receipt of the sign-off of their marketing assumptions, each division shall prepare a brief (no more that ten pages) Product/Strategy Synopsis statement based on the confirmed marketing information and recommended course of action.

This Synopsis shall address, in broad terms:

5.1.1 - consumer needs that the recommended product/service shall satisfy

5.1.2 - the competitive position of the product/strategy

5.1.3 - distribution implications

5.1.4 - service levels required

5.1.5 - promotional strategies proposed

5.1.6 - pricing implications

5.1.7 - sales and revenue implications, both short and long term (not detailed income projections)

5.1.8 - capital investment implications

5.1.9 - human resources implications, both in terms of numbers and skills needed

5.1.10 - information technology needs

5.1.11 - suggested performance criteria

Step 6. Ratification - Synopses

Start date:

Finish date:

Divisions return their Step 5. deliverables to the Project Office where the nominated review committee assesses all divisional product/strategy synopses for:

6.1 - consistency with core objectives

6.2 - solidness of concept extensions

6.3 - strength of business case logic

6.4 - ensure cross-divisional compatibility and complementarity and avoid

cross-divisional overlap

6.5 - assess implications of functional area strategies for products

6.6 - overview group sales, earning and investment implications

6.7 - set-up preliminary spreadsheet and modelling tools based on divisional inputs

6.8 The Project Office will either:

6.8.1 Refer deliverable back to Division for re-work

6.8.2 Refer to Executive for sign-off

Step. 7 Detailed Product/Strategy Plans

Start date:

Finish date:

Upon receipt of the sign-off of their product/strategy synopses, each division shall prepare a detailed Product/Strategy Plan.

Each Product/Strategy Plan shall address:

7.1 - detailed need analysis of intended consumers

7.2 - product lifecycle characteristics

7.3 - detailed distribution plan

7.4 - detailed service levels needed and the method to secure them

7.5 - specific promotional strategies required

7.6 - detailed pricing, cost and commission calculations

7.7 - sales and revenue projections for three years and longer term forecasts

until the year 2003

7.8 - business case justification for capital investment needed

7.9 - details of additional human resources needs both in terms of numbers and skills. Job descriptions required for each new position and or modified existing position.

7.10 - business case justification for information technology needed

7.11 - detailed performance criteria structure, monitoring procedure and MIS functions

7.12 - identify redundancies and/or cost savings that are outcomes of the adopted strategy and provide timeframes when such savings will be realised.

7.13 - outline in detail how the Division will structure its management and organisation, including all non-product-related functions.

Step 8. Ratification - Detailed Plans

Start date:

Finish date:

Divisions return their Step 7. deliverables to the Project Office where the nominated review committee assesses all divisional product/strategy synopses for:

8.1 - consistency with core objectives

8.2 - solidness of concept extensions

8.3 - strength of business case logic

8.4 - ensure cross-divisional compatibility and complementarity and avoid

cross-divisional overlap

8.5 - assess detailed products and divisional management and organisational structure

8.6 - verify all financial data

8.7 - finalise spreadsheet and modelling tools

8.8 - provide detailed implementation plan

8.9 The Project Office will either:

8.9.1 Refer deliverable back to Division for re-work

8.9.2 Remain in Project Office for next step.

Step 9. Divisional Assimilation

Start date:

Finish date:

The Project Office, in conjunction with corporate finance, human resources and strategy personnel, assimilate all divisional plans into a single First-Cut Business Plan and extend the corporate implications on:

9.1 - human resources

9.2 - group-wide information technology

9.3 - management structure and organisation

9.4 - finance and performance

9.5 - core objective and Mission

Step 10. First Efficiency Review

Start date:

Finish date:

The Project Office assembles a select group of senior, empowered executives to workshop the First-Cut Business Plan in order to:

10.1 - assess the document in terms of core objectives

10.2 - identify all existing non-core activities and resources

10.3 - identify processes, resources and tools that are performing below desired (planned) performance levels

10.4 - for redundant activities and resources; plan divestment strategy

10.5 - for under-optimised processes, resources and tools; plan training and upgrade strategy which addresses short, medium and long term objectives by concentrating on three major themes for productivity review:

10.5.1 - Focused improvement which:

10.5.1.1 - identifies and minimises non-value-added activities

and improves value-added activities

10.5.1.2 - improves competitive position by rapidly implementing process-analysis-based improvements in quality

10.5.1.3 - effectively streamlines business processes to initiate and sustain improvements

10.5.1.4 - facilitates a shift from a functional perspective to a cross- functional business process focus

10.5.2 - Continuous improvement which:

10.5.2.1 - identifies and implements human resources and organisational programs

10.5.2.2 - designs, develops and implements training and change management programs

10.5.2.3 - reverses eroding margins and/or decreasing profitability

10.5.2.4 - evaluates and improves competitive position against the competition and attains customer acceptance on the basis of quality, service and cost

10.5.2.5 - manages the implementation of operational and/or cultural change through continuous improvement initiatives and process improvement projects

10.5.3 - Process Innovation which:

10.5.3.1 - identifies the relationship between strategies and key business processes, then targets business processes for process innovation or other methods of improvement

10.5.3.2 - helps to innovate business processes to achieve an order of magnitude improvement in cost, cycle-time and/or quality

10.5.3.3 - designs a process prototype and implements a working process and system application to achieve the process innovation

 

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