Springfield Remanufacturing Corporation (SRC) is well-known for high-involvement business planning structure.
Using this structure, we develop our strategic plans as a collective organization—involving literally everyone in the company, from hourly employees to management, in the planning process.
While it might seem extensive, this process proves an integral component of our open-book management structure. Over the years, involving everyone at all levels of the company has also proven repeatedly to generate positive results.
SRC uses four types of key planning that translate directly to our sustainable business success. Let’s dig deeper into each of these four key types of planning:
- Financial Planning: It goes without saying that you must have a tangible financial plan for your business, but with the infinite number of ways you can develop yours, what do you do? When it comes to our financial planning, we’ve found the strongest results after following this handful of “musts”:
- The plan must have buy-in from employees at all levels of the organization.
- The plan must be clearly communicated.
- The plan must be rooted in reality.
- The plan must be forward-looking.
- The plan must be reviewed formally; progress must be tracked on an ongoing basis.
- Strategic Planning: In addition to having a strong financial outlook, your company also needs a clear strategic vision. (Again, you probably already know this—it isn’t rocket science!) We suggest doing a quick online search—you’ll find several great templates that will guide you in establishing your strategic vision.
Our simple SRC guidelines to strategic planning are as follows:
- You must have a believable, predictable sales line for the strategy to work.
- You must clearly analyze and address your company’s opportunities, threats, strengths and weaknesses.
- You must have a clear intelligence on your competitors.
- You must have a realistic and detailed understanding of the marketplace and the economy.
- Contingency Planning: A sturdy contingency plan is essential to growth and business success. After all, you need a “Plan-B” or a backup plan to launch when the unexpected happens, right? Contingency planning makes you proactive and serves as a source of innovation and business growth in and of itself (double win!). In short, a good contingency represents a researched and vetted realistic opportunity. If disaster strikes, activate contingencies in order to fill a void.
- Succession Planning: What if your manager or an executive left suddenly? Is your organization prepared to replace a major player on your team? While “missing” them is one thing, making sure your organization continues to grow beyond their departure is crucial to your overall success (obviously!). To make sure you don’t skip more than a beat, you need to beef up your succession planning process.
Succession planning, however, needs to be more than just naming a successor for major company positions. A strong succession plan creates opportunities for managers as well as succession candidates because with a developed successor in place, managers are primed to move into new positions and pursue opportunities when those arise as well. Therefore, succession candidates must be groomed, developed and prepared to step into a new role when the opportunity arises so that the multi-shift can happen simultaneously as needed (not to put off until candidates are “ready”). You won’t experience that lag time trying to figure out who can take over their responsibilities and continue on your path to growth without wasting time or additional resources.
The Planning Process—An Obvious Non-negotiable to Long-term Success
Whether or not you utilize an open-book management style at your company, implementing a strong and consistent process for financial, strategic, contingency and succession planning will create a strong foundation for your business as well as set your company up for sustainable business success. These four key planning processes mean to set your organization up for high levels of growth and success, a goal that just about every business has in common.
Visit us at The High Involvement Planning Workshop, where you can learn more about the planning processes we use at SRC. Take the practices back to your organization after we share our proven pattern for growth and success!