What Could Go Wrong In Business Planning

Every October or November, companies, big or small, new or old, regardless of industry engage in an exercise called business planning.

This would be a great exercise except that, on many occasions, less emphasis is given to the content and process of business planning in favor of things like venue, meals, and accommodations.

Imagine deliberations take so long in deciding what venue (and in many companies, you can’t have the same venue again).

As a consultant handling business planning sessions, I often wonder if the client is really serious in developing a business plan that would lead the company into the next year or simply using the planning session to go out of town.

Below are some reminders to get the best out of your company's next planning exercise.

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1. Always Do Pre-work.

Bringing insufficient information affects input and discussion during the planning session. Presenters waste time to call or e-mail their people back in the office to give them financial information or statistical data. Business planning sessions are not data gathering and collation sessions!

2. What Will Be Presented?

Unless your company is a free-spirited organization that allows departments to preset what they want, better stick to a presentation agenda. Also allocate time for each group or presenter. Advise staff on agenda as early as when the memo announcing the business planning schedule is sent out.

3. Don’t Pull Any Surprises.

Many times business planning sessions turn into bull sessions or fingerpointing. Not only does this interrupt the planning session, it also creates tension, making succeeding presenters defensive instead of proactive and supportive. Unpleasant surprises have no room in planning sessions.

4. Follow Presentation Sequence Protocol.

It seems many companies still do not have a clear appreciation that a certain protocol must be followed in business planning sessions. When we as consultants are asked to facilitate planning sessions, we are often surprised that some departments present next year's plans at the same time the sales and marketing departments present their targets.

We wonder how departments like Personnel/HR, Logistics, Production, or Operations can tell what to do next year when they don’t know what volume and value targets are projected by Sales and Marketing. We always insist that Sales and Marketing targets and plans should be first agreed on by top management and the departments concerned, and then be given to the other departments. After a week, the other departments can present their plans.

5. Venue Is Never Critical.

The more far away the planning session venue, the more tired participants become. Ideally, the following criteria should be used in the selection of a venue.
a) Privacy
b) No distractions (i.e., swimming pools, billards, beaches, nightspots)
c) Well lit (fluorescent lights, not mood lighting)
d) Good sound system and acoustics
e) No buffet meals for breakfast or lunch (Studies have shown a buffet makes it more difficult for participants to concentrate.)

6. An Insider Must Not Facilitate.

Business planning sessions are supposed to be one of the few remaining activities where everyone can speak their mind and express an opinion. The sad part is, although this is expected, participants would tend to be less than candid in their observations since they are still 'employees' of the organization. Who would want to antagonize other departments or top management?

Additionally, getting an insider to conduct the planning sessions would not only limit learning, but would also place undue stress on the insider-facilitator since he/she also has to present his/her departmental business plan.

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