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Plan your work like you plan your vacation
Beginning with the destination in mind leads to success.
by Tim Smith, Principal
 [ Print Version ]
Improving your business in 2005 is just like planning a vacation.
It’s true. Think back to the last great getaway you planned.
Before you started making flight arrangements or booking hotels, you decided on a specific locale.
In fact, you probably had the destination in mind long before you began coordinating details – at the
least, you had a vision of what you wanted to do or see.
It’s tough to plan a trip if your only definition is that it be “fun.” Or “far away.” While those are indeed
interesting qualities, they are too vague to give you any direction. Without proper guidance, your travel
agent may have you skiing in Switzerland when you really wanted to be sunning in San Juan.
That same approach holds true for most business efforts. As you think about improving your company’s
results in 2005, begin with the end in mind. Where do you want to go?
Get Clear – Gain Clarity
Many times I hear from clients who are frustrated over aspects of their operations, or at the level of
commitment from employees. They want customer service to “improve.” Or manufacturing to be
“better.”
Sometimes, they want their company to be an “industry leader” but are disappointed that it hasn’t happened
yet. And sometimes, they just want “things to run more smoothly.”
Like a vacationer who wants to go somewhere far away, they aren’t defining their goals with enough specificity
to make them achievable. What does “better” look like? How will we know if we’re an “industry leader?”
What does “smoothly” really mean?
And how can employees show motivation or commitment to a goal if they don’t really understand what’s
expected of them, or what they should be working to achieve?
Managers often don’t get what they want because they haven’t clearly defined what the end result looks like.
Doing so makes all the difference.
It’s what I call “gaining clarity.”
Take The Next Steps
In other words, it’s not enough to simply have a goal, or even to communicate that goal.
You have to take the next steps – visualize the end result, and define what success looks like.
Gaining clarity means setting specific qualitative and quantitative measures to define what you want to achieve.
The objective is to make certain that success is measurable.
In other words, “better” might mean reducing manufacturing defects to less than 3 percent. “Improvement in
customer service” might mean obtaining greater than 95 percent satisfaction ratings on annual surveys, or
perhaps retaining 100 percent of all existing accounts. And so on.
See the difference? One goal – being better or improved – is obtuse, easily dismissed or misunderstood.
The other is specific and focused, and enables everyone to clearly grasp what is expected and track whether
it is being achieved.
Defining that level of detail creates buy-in from management and employees, as others understand your goals
more accurately. It keeps your team focused and working together. And it drives actions that lead to the
desired target.
The Apex Of Planning For Success
Let’s look at an example of how the “begin with the end in mind” style of planning can lead to
success.
Apex Industries has a problem with its receivables. Even the company’s best customers pay slowly, and
cash flow is an issue.
Apex’s management team has talked for some time about getting “better at managing receivables,” but
that’s as far as things get. Something else always takes priority, and the employees in accounting and
customer service typically think that receivables are someone else’s job.
But when planning for next year, Apex’s management team “gains clarity” – with the help of The Plaid Group,
of course. Together, they decide to put some specific measures in place – and accountability, too.
- The team first visualizes its desired end result. The vision is simple: Apex will no longer have cash
flow issues because existing customers will pay promptly. And credit worthiness of new customers
will be sufficiently evaluated prior to the start of work to ensure that they are financially sound and
responsible.
- Next, the team defines clear targets for its vision. In year one, 80 percent of all receivables will be paid
within 30 days, 95 percent will be paid within 60 days, and 99 percent within 90 days. This will be
accomplished without alienating any existing customers. Finally, no work for any new clients will begin
without sufficient background checks and reporting.
- Now, the team builds in accountability. All the steps in the process are spelled out in detail, including:
- Receivables clerks will be responsible for contacting customer accounts payable departments after
31 calendar days, if payment is not received;
- Additionally, at the 32-day mark, the assigned customer service rep will contact the customer
directly to arrange payment;
- All clerks and reps will undergo training prior to the start of activities to ensure that they are
communicating with customers in a positive, productive manner; and
- Sales teams will be responsible for explaining the company’s credit policies and terms to new
customers, and for securing all background information on new customers, with approval of credit
for new clients coming from the Credit and Collections Manager.
- Finally, the team plans its communications process. It’s critical to make sure that employees understand
the desired end result, the measurements used to track progress, and the business rationale behind the
effort. To ensure this, the management team plans meetings with affected departments. The HR group will
follow up with detailed policies as well as information about the training classes. Each month, the
Accounting department will produce a report showing progress toward the goals that will be distributed via
e-mail. Finally, the team agrees that a follow-up employee meeting at the 90-day mark will help
strengthen the company’s commitment.
With a strong vision and measurable goals, the Apex team found that developing the tactics and efforts was simple.
And now that the accounting and customer service departments understand what is expected of them, they can begin
to develop and tweak the individual tasks or efforts that will help them achieve that goal. That builds acceptance and
buy-in, too.
Think Destination
To help your business achieve greater success in 2005, plan for success like you would for your vacation. Begin
with the end in mind by visualizing the destination first, and follow up with specific measures that can be communicated
and tracked.
The results will be more beautiful that a Caribbean sunset … or fresh snow on a black diamond run.
Whichever you prefer!
More Information? If you’d like to learn more about developing specific, measurable plans for enhancing success
in your organization, , please send an E-mail to tim@plaidgroup.com,
visit our web site at www.plaidgroup.com, or call us at 713-627-3569. The Plaid
Group publishes a free bimonthly e-mail newsletter filled with insights and ideas you can use to enhance your company’s
operational performance, spur growth and increase bottom-line profits. To subscribe, change your e-mail address or
unsubscribe, please visit www.plaidgroup.com/newsletters_subscribe.asp.
Author's Note: Tim Smith is a Principal with The Plaid Group. The Plaid Group helps companies simplify and stabilize their business
operations to improve financial performance and gain a competitive edge.
Copyright 2004 The Plaid Group
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