1. Was last year’s plan referred to and measured
against regularly (not less than quarterly)?
|
No
Why invest in a plan if you aren’t going to use it? don’t waste your
effort. Effective business strategies generally include periodic plan reviews. |
Yes
If it was useful as a guide, consider using the same process and format again. If
not, reevaluate your planning process and your goals. |
2. Was last year’s plan effective? Did you achieve
your goals?
|
No
Your business and your planning process may be in need of help. |
Yes
Check it against your long range strategic plan, make any necessary adjustments,
and do it again. |
3. How rapidly is your business changing?
|
Slowly
Consider adapting prior successful plan elements where practical to save effort. |
Rapidly
Build flexibility into the plan. Keep planning horizons short and targets clear.
Organize resources to enable change. |
4. How critical is any particular plan element?
|
Low
A summary approach may be acceptable. Look at last year’s plan for carryover
elements. Consider using inflation factors for adjustment. |
High
Apply resources to creating adequate detail and understanding. Focus your energies
here where it counts. Establish appropriate review milestones. |
5. How complex is your business or a particular business
unit?
|
Low
Critical parts of your business deserve attention no matter how complex they are.
Don’t let simplicity or complexity distract you from priority. |
High
Be careful not to be tricked into spending too much effort on complex but non
critical business elements or units. |
6. Do other business units or plan elements depend on one
part of the plan? (e.g. standard costs)
|
No
Depending on other criteria, these may require less attention. Substantial independent
preparation may be okay. |
Yes
Make sure these are accurate and sufficiently detailed. An error here can cascade.
Ensure that other affected units have the chance for review and approval. Don’t throw
it over the wall. |
7. Is the annual plan consistent with your long term
strategic plan?
|
No
A long term strategic plan is an important tool for success. It allows you to manage
today with a view for the future that you are trying to create. The recommendation is to
develop a strategic plan now. |
Yes
Excellent. The opportunity is to reexamine and adjust your strategic plan as
appropriate on an annual basis. |
8. Does your plan include cost reduction, revenue
enhancement, quality improvement, and other continuous improvement activities and goals?
|
No
You’re missing out. It’s time to build these improvement processes into your
plan. |
Yes
Congratulations. Assess program effectiveness and adjust them as necessary. |
9. Are you fully satisfied with your planning process and
the results?
|
No
Consider bringing in trained planning consultants to facilitate the process and to
teach your teams how to be more effective in planning. |
Yes
Keep up the good work. |
