Most corporations require leaders to produce an annual plan to project possible future results. Many leaders tend to undertake this assignment with little or no enthusiasm, even though it is necessary to forge new paths to generating positive, successful outcomes.
Once completed, most annual plans sit on the shelf until the next planning cycle. Many times the rationale is that people are too involved and overwhelmed with daily activities to follow their plan.
Effective leaders tend to view planning as a means to generate, oversee and measure results. Planning gives leaders time to consider how they can improve their own, as well as overall workplace performance. It allows leaders to reflect on ways to stretch their employees’ abilities in order to make them a more viable resource for generating and enhancing long-term results.
Leaders also must recognize that preparing for results does have its challenges, and be aware of them before beginning their next planning cycle.
During planning and budgetary reviews, leaders sometimes develop unreliable projected numbers and assumptions. It is all too easy to develop projections without specific facts to back them up, yet obtaining positive end results relies on sound forecasting.
Many leaders fail to invest the needed effort to review past performance, and this deficiency tends to affect their end outcomes. Some also fall short in taking the necessary time to effectively base future projections and assumptions upon what their organizational units have actually achieved in the past, which distorts expectations.
Obtaining results implies that plans and budgets not be developed in a void. Effective leaders realize that they must build on past successes and determine why and how past failures occurred. They know that to increase results it is essential to plan for strengthening weak and non-performing areas.
Leaders can only accomplish this by thoroughly reviewing past performance in all areas in order to link plans to where the organizational unit currently stands. Performance reviews allow leaders to accurately project their organizational unit’s performance forward in incremental steps. This is the only realistic method of achieving and sustaining growth.
As leaders begin the planning process to increase performance and results, they need to address specific areas that tend to create the greatest challenges:
Every plan that is designed to increase results needs to be based upon a series of assumptions. Consisting of future and anticipated variables that impact the actual performance of the plan, assumptions include economic conditions, sales and production forecasts, as well as anticipated major orders.
If assumptions are inaccurate, plans will be worthless and future results will not be realized. For example, if a plan is based upon 10-percent growth when in reality the economy is causing a 10-percent decline, everything in the plan is based upon an inaccurate assumption.
When developing their plans, leaders must focus on carefully creating, listing and detailing accurate and realistic assumptions. As conditions change during the year, reviewing assumptions becomes a necessary procedure in order to adjust them to actual conditions.
This enables leaders to quickly alter and adapt their plans throughout the year, ensuring the likelihood of obtaining the results they want.
To get results, the development and use of accurate information within the planning process is essential. Accurate information is one of the most important aspects of planning and the most significant step in the plan’s implementation process.
Leaders must take the opportunity to examine every aspect of their organizational unit’s past performance. This includes reviewing past plans and budgets against actual performance.
Results-oriented leaders understand what worked in the past and why. They identify areas for improvement, revision, modification or an increased workforce. They then focus on underlying causes that tend to influence or precipitate inadequate employee performance.
Leaders who make it a point to conduct exhaustive performance reviews are able to produce accurate information and data, which helps to generate higher levels of results over shorter periods of time.
Once leaders produce a comprehensive review, it becomes much easier to update and maintain their information with a higher degree of accuracy. Leaders use the planning process to audit their information and insure its reliability and accuracy.
Pitfalls to Effective Plan Development
The first major planning pitfall that definitely affects positive end results lies in leaders choosing to create new strategies by simply duplicating previous annual plans with one or two selective changes. Most often changes include simply altering numbers to reflect current conditions.
These plans have little value in terms of results-oriented direction or particular action steps to follow.
A second major pitfall is found in writing plans from a “backward perspective.” This is where plans are made according to where leaders want to go, rather than on where they should be going. Strategies are developed without regard to the specific facts, data, timelines and information needed to ensure they are accurate and realistic.
All pertinent information and related data supporting various desired outcomes must be included when generating plans, with all other information that tends to conflict with the desired outcomes omitted.
Both pitfalls are attempts to short-circuit the planning process or avoid it, and greatly reduce the chances of obtaining the results leaders need to generate. When this happens, leaders fail to meet their responsibilities to themselves, their employees and their business.
Impossible Plan Timetables
How plans are scheduled can have a major impact on whether or not results are obtained. Many leaders often assume they can achieve more than is realistically possible to attain. They tend to insert and carry over expectations of impossible timelines and deadlines for employees to follow and meet.
Performance plans should stretch each organizational unit and members’ capabilities. However, time allotments to move processes and actions along toward achieving goals and objectives must be realistic. Additional time must be factored in for unanticipated events that will inevitably occur during the year.
It is essential for leaders not to under-plan, where employees are not pushed to perform. Equally as important, they should not over-plan to where employees are constantly placed under stress to meet deadlines.
To get better results, leaders must consider the need to balance their plan’s time requirements, workload criteria and expectations.
Failing to Follow Through
Often, leaders will produce required plans and forget about them until the next ones are due. It is a serious mistake to view planning as an impediment to their work and daily responsibilities.
Results-oriented leaders appreciate how and why performance plans are powerful management tools. Plans guide and direct their actions throughout the year toward the accomplishment of their goals and objectives, which always move them to securing higher levels of workplace results.
Results-oriented leaders focus on taking their plans and breaking them down into smaller monthly plans, which can be easily monitored and altered. Leaders also make certain to generate smaller step-by-step plans for every individual employee.
This process tends to link both time and individual performance toward the accomplishment of common goals and objectives.
Planning is a continuous, ongoing process. Performance plans need to be continually revisited, modified and adapted to reflect actual conditions. Situations change and performance plans should allow leaders to readily anticipate and adapt to fluctuations, speedups and slowdowns, as well as unforeseen occurrences.
Excerpt: “Becoming a Leader of Your Own Making” (Majorium Business Press, Stevens Point, WI 2011). To learn more about author and publisher Timothy F. Bednarz, email email@example.com visit www.majoriumbusinesspress.com.