Why do so many entrepreneurs operate without a business plan? Why do people who actually create plans fail to execute? There are many reasons I suppose, but the greatest barrier is complexity: People avoid complexity in favor of simplicity.
As a public company executive, I was required to provide two plans annually: the long-range plan and the annual operating plan. The planning cycle began in July and lasted into the following January when the final versions were approved. Each plan contained roughly one hundred pages of text, spreadsheets, and executive summaries that were placed in a handsome binder and stored on the shelf in my office until the next planning year began. No exceptions were allowed. And every year we failed to meet the objectives in the plan.
As an entrepreneur who valued simplicity, speed, and execution, the process felt like insanity to me.
I believe that planning is important. As Lewis Carroll says in Alice and Wonderland, “If you don't know where you are going, any road will get you there.” But how can we simplify our planning in order to create focus?
As an 80/20 thinker, I wanted to get 80% of the value of my plans with 20% of the effort. (Quite honestly, it was more like 98% value and 2% effort). I decided to shelve the binders for good and try a new approach. Once I discovered the key, I became a true believer in simple business plans. Here’s the approach I took:
As the company president, I carved out the essence of the plan and the top objectives and then assigned each of them to various champions on my staff. Each quarter the champions reported on the progress of their piece of the plan. With this new model of delegation and empowerment, we finally began to see the rewards of execution of our plans, and each year we achieved the majority of our goals.
Once I became a Convene Chair focused on Christian leadership strategy and faith-based executive coaching, I wanted all of my Convene members to benefit from this simplified process of annual planning. I made little progress until years later when Marc Koehler arrived on the scene as an advisor to some of my Convene team members. He had a similar history as mine of failed plans, so over time he boiled down the process that he calls “Lead With Purpose” and Symblicity – the process of putting everything that is important to your company and business plan on a single sheet of paper. I was sold immediately and his template became the tool I have used ever since for my business groups.
So here is my advice for 2022 ANNUAL PLANNING FOR CHRISTIAN BUSINESS EXECUTIVES AND ENTREPRENEURS:
Assemble trusted staff members to help you – no matter the size of your organization. They will rise to the occasion, knowing you have given them such a voice in the process of running the company.
Make a questionnaire to help your team answer these questions:
What is our mission?
Where are we headed in 2022 and beyond? Who do we want to become?
What are the market/industry trends we are facing now and in the near future?
Who are our greatest competitors?
What are their strategies?
What is our differentiator that compels our customers to use our products and services?
What must we do to remain ahead of our competition?
To create objectives, ask this question of each business area: How does our business need to improve to be our customer’s first choice?
Products and Services (Quality, R&D, New Product Launches, etc.)
Sales
HR (Recruiting, Employee Development, Team Strength)
Organizational Structures
Marketing and Branding
Financial Health
Succession
Write all of the input on the wall or screen and have everyone vote. YOU VOTE LAST.
Pick the TOP 4 or 5 objectives and make them your company’s objectives for the year.
Commission champions for each objective. These do not need to be the trusted staff members you enlisted earlier.
Have your champion add Mission/Vision/Values and SWOT language to each objective.
Simplify and focus each objective until the entire plan fits on one page.
Print the plan and display it in HIGH VISIBILITY AREAS of the office and plant.
Revisit progress frequently and allow champions to tell their stories
As a leader, you have limited time. Will you spend wasted time and energy on business plans that only collect dust? Or will you streamline the process, allowing time for you to focus on Christ’s kingdom work within your organization? I highly recommend you try some version of this process, with a facilitator to lead you through the process. I would be happy to explain any piece of this methodology that empowers your company to succeed and shine. Enjoy your annual business planning for 2022 and beyond!
About the Author
Jeff Abbott
Jeff was President of Aerochem, a $30 million aerospace chemical milling company in Southern California, and was also General Manager of the consolidated divisions of Ducommun AeroStructures, a $105 million entity before becoming a Chair for Convene. His many years managing in challenging conditions gives him a deep toolbox from which to help clients eager to gain answers about improving their company’s performance.
To learn more about Jeff and his Convene teams in Orange County, view his profile or connect with him here.