Page 160 - Finance for Non-Financial Managers

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Business Planning
Fewer wrong turns means less time spent, less money spent,
and more results with the same resources.
Communication. We have a means to communicate consistent-
ly and easily the goals we want to achieve to anyone who we
believe can contribute to our meeting those goals, such as staff,
bosses, customers, and suppliers. Goals that are communicated
clearly, without ambiguity and confusion, and without the added
emphasis of today’s emergencies, are more likely to receive
support from all those who can help us get there.
Empowerment. In any challenging endeavor, we face goals that
seem difficult if not impossible to reach. They may not be
impossible, but the idea of getting that far beyond where we are
today can seem that way—and when something seems impos-
sible, that can be a self-fulfilling prophecy. By writing our plans
down, along with all the critical steps to get there, we effectively
break the goals down into small steps. We can then look at
each step and clearly see the possibility, even probability, of
achieving it. Thus we give ourselves permission to believe the
goal is achievable. That permission does powerful things in our
minds, shifting what is often the most significant obstacle to
success, our own beliefs about the possibilities.

Strategic Planning vs. Operational Planning
There are business plans—and then there are business plans.
Let’s begin by distinguishing between the two principal types of
business plans: strategic plans and operational (or operating)
plans. The two will actually look quite different and be written in
a different style, because they are intended to be read by differ-
ent people for different reasons. Every marketing manager
knows that a brochure, to be effective, must be customized to
its audience. The same holds true for a business plan, whichev-
er type it is. It should always be written to its intended purpose
and directed to its intended reader.
A strategic plan is usually more than just a statement of
goals. It’s a statement of corporate purpose, a request for sup-