99Forum - Discussion Forums - Message Board Forum

Organizations successful at implementation are aware of their need to fund their intended strategies. And they begin to think about that necessary financial commitment early in the planning process. First, they "ballpark" the financial requirements when they first develop their strategy. Later when developing their action plans, they "firm up" that commitment. As a client of ours explains, they "dollarize" their strategy. That way, they link their strategic plan to their annual business plan (and their budget). And they eliminate the "surprises" they might otherwise receive at budgeting time.

Planning is essential if you have somewhere to go. If you want to grow your business, if you want to have more free time, if you want to introduce a new product, if you want to enter a new market.

You dont need to plan if you have reached your destination, if your business is all you hoped it would be. BUT have you considered that the world is changing pretty rapidly these days. Even if you are happy with what you have, your environment is changing, which, if you like it or not, is going to change your business.

Therefore, we come back again to the need to plan.

Annual planning is about creating a vision for the next 3-5 years and then formulating concrete plans to achieve that vision.
It is about deciding on a future and how you intend to obtain that future, one year at a time.
It is about creating measurable goals that can be tracked.
It is about tracking those goals on a weekly and monthly basis so that they are actually achieved at the end of the year. Goals can only be tracked if they are measurable.
Annual planning is about understanding what is working and not working and using that to set further action plans.
Annual planning should also be able to able to monitor the performance and effectiveness of your staff over the year.

A well structured plan will also have the ability to be used as an effective monthly reporting tool by managers. It becomes the common language.

Planning is not only for whole businesses but also for business teams, divisions, projects and even individuals.

Planning brings about focus and clarity of what is to be achieved. Equally when done effectively, planning brings about alignment between team members and people become accountable for completion of their goals.

The main aim of your annual business plan is to set out the strategy and action plan for your business. This should include a clear financial picture of where you stand - and expect to stand - over the coming year.

Your annual business plan should include:

* an outline of changes that you want to make to your business
* potential changes to your market, customers and competition
* your objectives and goals for the year
* your key performance indicators (KPIs)
* any issues or problems
* any operational changes
* information about your management and people
* your financial performance and forecasts
* details of investment in the business