Strategic Planning

It is that time of year. Every business owner and manager is faced with the daunting task of planning for the following year. This year, the stakes are especially high and the risks are lurking everywhere. So, where is an entrepreneur to begin?

We (entrepreneurs) are “shoot from the hip” types as a breed. Howe ever, the annual planning process is an area where random firing will miss your target. You must be willing to be flexible, but having a firm plan in place is essential.

Sure, virtually every business has a sales target and/or profit target going into next year. Or, do you? Does your planning include a firm goal of sales and profit by month? Do you have specific people in your company assigned to be accountable for each expense item? If you do, you are among the few leaders who have full accountability, responsibility and authority alignment.

Sure, virtually every business has a sales target and/or profit target going into next year. Or, do you? Does your planning include a firm goal of sales and profit by month? Do you have specific people in your company assigned to be accountable for each expense item? If you do, you are among the few leaders who have full accountability, responsibility and authority alignment.

There are many systems and tools that can be used as a structure for your planning process. I have used several. Among those I have used are: the lean thinking system from the Toyota Production System, the MBO method and the “seat of the pants” method.

At FabTech, we recently embarked on the planning process. We started with a teambuilding exercise that included blowing off some steam with the ownership and top management. It was not quite like the AIG spa boondoggle, but did help us get in the right frame of mind. The next day, we worked through a robust process that helped us identify, in detail, the strengths and weaknesses of our company. And, MOST IMPORTANTLY, the detailed steps to address weaknesses and build on strengths to meet the needs of our customers.

The real work comes at the start of the year when your plan must be a living system not just a document in your drawer or a sign on the wall. Whatever system you use, use it!

On a personal note, I am very thankful for the support of many people that have made my first year in the architectural fenestration market so rewarding and fun. Props to the team at FabTech, our valued supplier partners and customers for their support and patience teaching a blond, Polish guy the ropes.

Most of all, I am grateful for the love and support of my wife Jean and 4 children. They have been incredible in their patience and understanding. Can’t wait to sit down to the turkey dinner …