Implementing and Sustaining
Your Business Plan
T
his chapter describes how you implement and sustain your
business plan. It suggests how you can assemble the plan from
different levels, initiate the plan, and provide sustaining activities.
These are the third and fourth steps in the four-step plan (see Figure
12-1) that began with preplanning and planning activities.
Included in the implementation phase are suggestions for measur-
ing the performance of your plan.
323
CHAPTER
12
One of the key steps for implementing the plan is the removal
of heat loss or organizational inefficiencies inherent to any system.
This chapter provides the steps for you to successfully map and cor-
rect any deficiencies.
The chapter concludes with information on conducting orga-
nizational change activities, along with suggestions on leadership
and managership skills development. For the plan to succeed it
must be implemented by people with the basic skills of leading and
managing the workforce.
Seven Steps to a Successful Business Plan
324
Figure 12-1. The implementing and sustaining phases must work
together in a seamless flow to ensure execution of the plan.
H
OW TO
I
MPLEMENT
Y
quarter. Reporting results on a quarterly basis is the most accepted
business practice for performance measures. The framework is con-
sistent with financial reporting, shareholder expectations, and pub-
lic acceptance. I recommend this as your minimum reporting
schedule (see Figure 12-2).
Implementing and Sustaining Your Business Plan
325
The fourth point of monitoring your plan is the annual report.
At the end of the fourth quarter you need to look back at the four
quarters collectively. The past year is compared with the previous
year and projected out to the ten-year plan. This gives you a base-
line to begin planning for the next year or repeating the one-year
operational plan. The results are published in the annual report.
Companies spend a lot of money and effort writing, publishing,
and distributing their annual report. You may make the report sim-
ple or detailed, depending on your desire and intent.
In establishing the next operational plan, year two of the ten
years, repeat the process of setting tasks as you did with the first
operational plan and the related action plan list. Each year you
Seven Steps to a Successful Business Plan
326
Figure 12-2. The implementation period is characterized by quarterly
reviews. A full review and update of the plan is conducted in the fourth
quarter.
rebuild your operational plan based on what you are trying to
accomplish in the one-year period against the ten-year goals. This
means your plan’s time span is getting shorter each year. The com-
mon trap is to also extend the life of the business plan by one
year—always keeping a ten-year time frame. This is dangerous
because you fall into the trap of strategic planning creep. Allow
■ Is it a failure of the management team to implement? This is
the most common cause of plan deviation. Repeatedly I
find teams not fulfilling promises made in the action plan.
Once the planning session is over, business as usual pre-
vails. The individual or team doesn’t follow through with
commitments. The antidote for individual failure or non-
compliance is to tie the results of the plan into your per-
formance reward program. People have a tendency to do
the things for which they are rewarded. Consistent failure
to perform takes on a whole different meaning that begins
with coaching, progresses to performance counseling, and
finally ends with termination. The sooner you legitimate-
ly get rid of nonperforming management, the greater your
chance of hitting your targets.
Measuring Everyone Against a Business
Performance Model
There are three levels of performance you must consider when for-
mally tracking your business plan (see Figure 12-3). The perfor-
mance is tied specifically to the annual targets of the business plan.
This standard keeps each level focused on doing mission-essential
work, not extraneous, fun activities. These levels are:
■ Level 1. Organizational performance (business plan track)
■ Level 2. Team performance (business plan track)
■ Level 3. Individual performance (performance review pro-
gram)
Seven Steps to a Successful Business Plan
328
Figure 12-3. There are three levels of performance that must be tracked against the business plan. They ar
e
organizational, team, and individual. All lead to the strategic goals.
well were the lessons learned in training applied to perform the
job? This criterion ties any company training activities to the busi-
ness plan, prevents training for training’s sake, and makes account-
ability for skills integral to the individual performance review.
Seven Steps to a Successful Business Plan
330
Establishing Two Types of Standards of
Performance
To successfully implement processes at the three levels, manage-
ment must set and maintain its standards. This is a stabilizing fac-
tor in any organization. There are certain performance levels that
must be held constant. In widely fluctuating situations it becomes
difficult to know what performance factors are satisfactory and
what are unsatisfactory.
Management must improve its standards. Standards are not
fixed points or objectives, but rather the start points for doing a bet-
ter job the next time. Once performance is fixed in place with the
maintenance of standards, improvement begins.
Two types of standards exist: stabilized and evolving. Stabilized
standards are the standards that tell individuals how their perfor-
mance is measured. Goals and objectives usually contain standards.
This helps provide stability to the work situation. As the stabilized
standards are met and improvements in the workflow occur, the
standards are shifted upward. These standards are said to be evolv-
ing as the system becomes fine-tuned. There can be no improve-
ment (the ultimate goal of process mapping) if there are no stan-
dards, they are not disciplined, or they are not allowed to evolve.
Standards carry certain characteristics that help the organiza-
tion form, shape, and project consistency in its story. These may be
found in company documents such as the Standard Operation
A
SSURANCE
A
CTIVITIES
Your plan cannot be launched without support in the background.
There are at least four support areas (see Figure 12-4) for the suc-
cessful implementation of your plan. They are:
1. Business Process Mapping
2. Organizational change management
3. Leadership development
4. Management development
First you must clean up any organizational inefficiency found
in the processes. This is done through Business Process Mapping
(BPM). Don’t delay the implementation of your action plan until
the process improvements are completed because they will never be
finished and must be seen as ongoing initiatives. The BPM can and
should run concurrent with your plan implementation.
A number of organizational change activities may also take
place to support your plan. They may include activities such as
restructuring the organization, an acquisition for growth, or restruc-
turing the debt burden. Strategically realigning the resources and
core competencies may be other examples of the organizational
change necessary to support the future direction of your company.
Leadership and managership behavior must also be aligned
with the plan. Little is accomplished by establishing a vision if lead-
ership is remiss or by setting bold goals if the skill of managerial
efforts is lacking. Actions for improving leadership functions and
management behaviors necessary to match the plan requirements
must be carefully programmed.
Seven Steps to a Successful Business Plan
Two ways of thinking must be dovetailed for process mapping
to work. First, the manager must be concerned with results. Of
course results are ultimately the profit goal of any business. That
doesn’t mean that profit drives all actions. It simply means that
profit and other cost issues must be accounted for in the thinking
process. You must be results-oriented. This means a concern for
profitability, cost-effectiveness, and financial goal accomplishment.
The second is to think in terms of processes. This means a concern
for organizational discipline and workflow effectiveness. Often the
results become the focus to the exclusion of the process. The suc-
cessful execution of process mapping can occur only if both process
and results are integrated.