Sadly, the business planning cycle in most companies is not in step with the calendar, the execution of the work, or the need for planned thinking. Too often the plan for next year is developed in the middle of that year. It is a joke to your employees to issue a plan that is already half-expired. Stop that practice! It makes you look foolish and inept at planning.
Two methods can be used to get the cycle in the correct place. The first is to start earlier. That’s not magic. Just do it earlier. More important, though, is to cut down the amount of wasted energy in developing the key points. Remember that you are going to capture the essence of your complete business plan in five pages. To do that seemingly impossible task means you need a tool to organize your activities. The business planning cycle is the tool a successful organization uses to establish a business plan with all components in place for execution. It is more than a document. It is a completely integrated process consisting of four distinct phases. They are preparing, planning, implementing, and sustaining. Each phase has a unique and powerful place in the planning cycle.
Following the business planning session you must anchor the organization for continuing the planning cycle and implementing the plan. Little is accomplished if a great plan is produced but not supported by other organizational behavior. Make sure you have all the skills gaps identified before you begin any development. This includes preparing any other organizational assessments, employee surveys, or reports about your organization’s performance. Combine this information into one focused development program. The sustaining activities must include regular measurements of quarterly targets. During the sustaining phase you must pay attention to the leadership and managership activities required to keep the planning momentum.
