Most people sense there is value in planning. They intuitively know that planning will lead to a greater definition of what they wish to achieve and to actions which will grow their businesses. A frequent question is: How to move from absolutely no formal planning to some form of planning?
My first reaction: Congratulations, any form of planning is better than no planning! I have great respect for the type of intuitive planning which most entrepreneurs do. It usually will get you through days, months and even years with satisfactory results. But you need something more comprehensive if you want to really get moving; if you want better results, faster. Structured planning will oblige you to think of a range of topics which you have never dealt with before; topics which should form part of your routine business thinking.
How to proceed? Firstly, don’t hesitate. Formal planning is straightforward. Start with thinking in broad terms about where you are heading; where you want to be at the end of this year and the next.
Business planning is like planning a vacation. If you wish to take your dream vacation abroad would you simply go to an airport, and at the airport select a destination and an airline? Would you depart trusting that your vacation will materialize; that the right vacation initiatives will somehow pop into your head when you get there, wherever it is? This is how many entrepreneurs operate. Of course, an unstructured vacation might turn out to be just right, but most of us cannot afford running a business in this manner. Can you?
Planning requires a bit of structure. It will accommodate the intuitive planning which you normally do but it will also contain new elements. It will require a bit of learning and some effort. And it will require commitment. Build your planning on passion. What new direction or expansion would excite you? Determine direction and set a number of goals. Which continent do you wish to visit; and which cities? What type of vacation would give you a kick? An urban holiday: Cities, museums, restaurants and side-walk cafes? Or a rural one with backpacking and hikes through the countryside?
Choose a simple planning format which is easy to use. You should start using it within the first month. Don’t go overboard and develop a huge plan. If it is complex you will find it off-putting. Think big but start with a small plan and few steps. I believe that after your have established broad direction, you should work with very few objectives. Also plan how you will monitor your actions and results. How will you execute your plan?
Take purposeful action immediately and results should show pretty soon. Results will motivate you. In due course, expand the plan on the run. And write everything down. Bit by bit.
Thin slice it. Then do it.
I like Nike’s slogan: “Just do it.” The secret lies in the word “do”.
Albert
keywords: balanced scorecard, organisation, planning
While I agree in spirit with your comments, the use of the word “planning” could be confusing to some. Historically, planning within companies has usually meant financial planning (primarily budgeting) or more generally resource allocation. I think you mean something closer to strategy or objective setting. Here are two posts that provide some more of my thoughts:
http://alignment.wordpress.com/2008/08/17/strategy-vs-planning/
http://alignment.wordpress.com/2008/04/23/planning-vs-budgeting/
Hi Jonathan
You comment about the origins of “planning” is correct.
“Growing Clients” is aimed at drawing my clients and others into a discussion and an informal exchange of thoughts. I do not envisage making it academic as most of my clients prefer gaining an informal conversational understanding of various aspects of planning and execution – but I have quickly visited your informative blog and you can be certain that I intend visiting it again!
Consider visiting my Website: http://www.abplan.co.za
Albert-
I don’t think of myself as “academic” but I am often quite careful with words. I find that the difference between similar concepts (goals and targets, metrics and objectives) can be quite crucial to an organization’s success. I’m glad you found my blog informative — there’s also a great deal of interesting content on your site.