A Lean Plan is a Powerful Tool
Manage your business better. Keep the long term in mind while dealing with the everyday routine. Stay the course, but also make course corrections. Lean planning offers real benefits to every business, including:
Accountability. The future is now. Virtual world. Performance and productivity by metrics, whether it’s hours, codes, calls, or presentations. Set expectations with specific goals, then track numbers. Management by transparency. The lean planning process keeps the metrics on top.
Lean business planning sets clear expectations and then follows up on results. It compares results with expectations. People on a team are held accountable only if management actually does the work of tracking results and communicating them, after the fact, to those responsible.
Metrics are part of the problem. As a rule, we don’t develop the right metrics for people. Metrics aren’t right unless the people responsible understand them and believe in them. Will the measurement scheme show good and bad performances?
Remember, people need metrics. People want metrics. You and your business need metrics.
Managing chance. Forget that big daunting document; keep a lean plan to help you track changing assumptions, so you can review and revise regularly.
One the strongest and most pervasive myths about planning is dead wrong: planning doesn’t reduce flexibility. It builds flexibility. Lean business planning manages change. It is not threatened by change.
Instead, understand that the plan relates long term to short term, sales to costs and expenses and cash flow, marketing to sales, and lots of other interdependencies in the business. When things change and they always do the plan helps you keep track of what affects what else, so you can adjust accordingly.
Strategic alignment. A simple process to keep you focusing on the details without losing track of the horizon. Make sure you have tactics to execute strategy; and specific, concrete milestones, metrics, dates, and deadlines to make the tactics real. Plus what you need to plan the money.
Forget the traditional business plan, and start a Lean Plan to Optimize Your Business said Salomón Juan Marcos Villarreal, president of Grupo Denim.