The market place determines our future, and as a group and as individuals we need to spend quality time there. The customer always must take precedence over everyone else.
The business must work on stretch targets to exceed the full year profit target.Internally we have to ensure that broad thrust areas are opportunities that can be converted into strengths by leveraging our people assets and sound managerial systems and processes. Involving frontline people, backed up by clear, all round management processes will make sure that our capabilities are sustainable.
We need to gear up to achieve our targets regardless of these changes, since changes are going to be the way of life in the days to come. That is precisely why we are managers. Shareholders expect us to deliver value irrespective of whether the environment is kind to us or not.
Companies need to achieve higher productivity from existing assets and rationalize excess capacity – thereby improving overall cost management. Focus on asset productivity ensures that capital investments are made efficiently and the organization grows with least risk.
We need to reduce our working capital substantially and release the funds locked in for investment in better technology and productive assets.
Preparation of Business Plan
This involves preparation of the Business Plan for the Company for the current year and the Next 3 Years keeping the performance of the previous 3 years–
We will be needing the following information which we will be collecting from the respective functions. After assimiliation of this information we will be having the first cut figures and we will then brainstorm on this in order to freeze our current and future years projections and the action plan.
Based on these projections we will be freezing the budgets for various expenses both fixed and variables ,list down the capexplans ,internal process improvement plans,HR related plans,IT related plans and putting numbers in the Balance sheet,P & L statement, Cash flow statements, Financial Planning sheets ,Financial ratios ,EVA etc.
To achieve this the following inputs will be required –
- 1. Market Information
Analysis of what we did in the current year. Weight, No’s and the values dispatched, breakup of the products.
To highlight how we can bring the 15%-20%-25%-30% growth for the current year with respect to the previous year depending upon the comfort level.
Also what are the verticals we can add in our business for future growth- shall we accelerate getting into some selected product lines.
With above brain storming we will be able to put the revenue figures for the current and the next 3 years.
- 2. Industry Analysis
Our Key Products-Market Segmentation- what the Competitors are doing .and figure out our plan to Counter our Competitors .
- 3. List down 5 Factors which will Impede Our Aggressive Profitable Growth.
We do the SWOT analysis and list down our strengths, weaknesses and opportunity available and identify threats in the market.
- 4. Analysis of the Financial Figures for the last year
- 5. Inventory- Stock Position in Raw Materials ,WIP and Finished Products.-Reduction opportunities in all areas- what and How ?.
- 6. Internal Process Improvement Plans – (Enhancing Operational Efficiencies)
- 7. Raw Materials Rates-
- 8. Packing Budget Finalization-
- 9. Consumables Summary
- 10. HR Related Plans
- 11. IT Related Plans
- 12. Manufacturing Technology Plans
- 13. Freeze the CAPEX Plan
- 14. Operational Efficiency Improvement Plans
- 15. Key Assumptions and Sensitivity Analysis
- 16. Balance Score Cards for all levels 0 and 1.Performance Score Cards for the staff and Skill Matrix for the Associates.
- 17. Development of the Financials Data for the Current and the Next 3 years-
- 18. Development of Finance Results month wise for easy understanding of the Function Managers.-(Introduction of Lean Accounting)-
- 19. Implementation and Monthly Review.
Monthly Review is to be done and VarianceAnalyzed and Corrective Action are to be taken to Achieve and Exceed the Budget Figures.
Companies will have the opportunities to see all possible manifestations of business challenges: be it direct or indirect material cost increase, raw material shortages, government regulatory changes, intense competitive pressures, stagnant demand, employee turnover, FOREX and stock market fluctuations etc. to name a few. The silver lining is that with this the business has gained the knowledge and experience to counter these challenges and going ahead, these learning’s will be the key.
Once we master our cost structure, the responses to the changing business environment will happen automatically because we would have become more efficient in running our businesses in the segments we represent.
From that perspective, the agenda of countering the external changes and launching a vicious attack on our costs is one and the same. The language of addressing areas of improvement is more easily understood than communicating plans to counter forces that are external to the business.
We shorten the learning curve to provide an effective response to any of the externally motivated changes.
Jishuken Center of Excellence has expertize in implementation of the Business Plan. These experts work with all departments and your teams and your Top Management and ensures that a Practical Plan is finalized for the current and the next 2 years and implemented.
We also supervise the reviews so that the lean gains are converted to Top line growth and bottom line gains and ensure these gains are sustained and become a habits and culture of the organization.
Jishuken Center of Excellence offers the highest quality training and consulting services available anywhere; and we feel strongly about producing results in your plant, with your people, addressing your problems and opportunities.