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The Definitive Business Plan, 3rd Edition by Sir Richard Stutely

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T
he journey through the business plan is now complete. You have a sparkling new plan
with all the required approvals and funding. So where is it that you have arrived? Only
at the starting point. You are embarking on a new era. You have a new or revitalised busi-
ness to run. I am envious. I wish I was in your shoes at this moment. There is so much to
do and it is all new and exciting.
In exactly the same way that I took you mechanically through the process of preparing
a business plan, I will now run through the logical steps that turn a plan into reality. I think
you will agree that these are simple and obvious. But please do not become obsessed
with them. They are tools only. Your other management skills are much more important.
When you have completed this chapter, you will be armed with an excellent plan and
a solid method of executing it. Then it is down to your personal and unique business
acumen and skills. I know that you can make it happen. Good luck.
Time for a break?
You have produced a superb business plan. It has been approved by your shareholders,
board of directors, bank manager, the boss or whoever. You have the required funding sit-
ting in the bank. You know what has to be done. I guess that it is time to stick the business
plan in a drawer, enjoy the honeymoon period and worry about getting results later.
This is the worst possible step to take. Start turning the plan into reality while it is still
fresh. Extend it into policies and procedures, objectives and budgets. This is easy after
all the hard work that you have done up to this point. Make it permeate every nook and
cranny of the business. Monitor the results and the environment watch the economy
and especially your competitors, business partners and customers. Keep the plan up to
date. Most important, revise the strategy and plan if new information so requires. Do any-
thing other than put the plan away in a drawer.
From plan to reality
There is a simple relationship between a business plan and all those ring binders and
papers on your shelves. This is illustrated in Figure 13.1. The business plan is the basis
for creating:
job descriptions;
policies, rules and procedures;
operational limits;
budgets;
employee objectives.
FROM PLAN TO REALITY 319
320 CHAPTER 13 NOW MAKE IT HAPPEN
These are the things that get your people pulling together to make your business a suc-
cess. We will run through them one by one. First, though, think about communicating
your aims throughout your enterprise.
‘He that is over-cautious will accomplish little.
SCHILLER, WILLIAM TELL
Avoid bureaucracy
Please keep remembering that good management is the key. The mechanisms
described in this chapter are just that tools but no more. Do not become
bogged down in paperwork. Keep everything simple and efficient.
t
The fast track to making it happen
1 Communicate the plan. Make sure that you have the widest possible
understanding and commitment throughout your enterprise.
2 Develop policies, rules and procedures that extend the plan right to the very
edges of your business.
3 Develop job descriptions and allocate responsibilities.
4 Set objectives for every employee.
5 Set spending and decision-making limits at the functional level (e.g. Head
of R&D, accounts clerk grade 3) and the personal level (the Head Boffin, Bobby
Bookkeeper).
6 Distribute budgets.
7 Monitor the objectives, budgets and the world.
8 Reward success.
9 Take confirmatory or corrective action as necessary. Revise the strategy and
plan if necessary.
10 Feed back outcomes into the planning exercise and make a start developing
the next business plan.
FROM PLAN TO REALITY 321
‘First, make yourself a reputation for being a creative genius. Second, surround yourself
with partners who are better than you are. Third, leave them to get on with it.
DAVID OGILVY
Formal
business
plan
This sets out:
higher-level
organisation
chart
strategy
operating plan
higher-level
objectives
and the
financial plan
Develop organisation chart.
Write job descriptions.
Allocate responsibilities.
Recruit to fill vacancies.
Develop policies, rules
and procedures.
Extend library of corporate
handbooks and manuals.
Set functional and
employee operating limits
for decision-making,
spending, etc.
Allocate budget
responsibilities:
operational revenue and
spending plans.
Set any missing divisional,
departmental and team
objectives.
Set employee objectives.
Feedback.
Confirms strategy and plans
– or leads to revisions.
Determines who does what.
Explains how they do it.
Limits opportunity for
creative error.
Establishes revenue and
spending controls.
Defines what is expected.
Action.
Figure 13.1 Business plan to action and back

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