| Business Plans attract a lot of
attention. The government encourage you to have them, the banks insist you
have them and a few businesses identify the need to have them. Business
Planning (as opposed to a plan) is absolutely essential. It should be an
ongoing process, not just a one stop on the way to the bank - or a once a year
retreat.
The speed of business, coupled to the speed of life means that our
decision loop is ever increasingly smaller - we see it, and if we can't
orientate on to it - decide what to do with it and then act on it quickly -
that opportunity is gone, or worse, the threat has devastated us. The
tools that we have traditionally used for business planning tend to be very
linear. That is, they state where we are, where we are going and exactly how
we will get there. Just like the old military planning during the
earlier global wars. These days, the military recognise that this is to
prescriptive, that as soon as you blow the whistle and cross the line, the
plan was yesterday's news... So too with business plans. The way
the military have adapted to the speed of battle is absolutely applicable to
business. The key is Business Navigation; or - Mission, Method and End State Planning. Lets
start with the end... End State.
Like a captain of a ship - you set out for a voyage to the island of your
dreams (End State). You need a vessel that will weather the seas and be
capable for the journey (COG). A course must be plotted to the island
and alternatives prepared for changes in the weather (Method Planning). Your
crew must be trained in the procedures and drills for an effective and safe
journey (BOS). You must have a crew you can trust, one that knows where the
journey is going (Mission), and be able to take the wheel while you get some
rest (Leadership). With all these things in place - you can then start
tuning the motor (Profit Drivers), improving the ship (COG), looking at the
weather and charts (Tactical Marketing), improving your crew (Tactical Sales)
and setting out for your idyllic vision (Doing business!).

Vision (End State)
The End State is the vision, or the ongoing purpose of the business as
described by the owner. This provides the ultimate goal (be it short
term - 1-3 years, medium term -3-10 or longer... Or in fact, no time - just a
description of a desired state) for the business to achieve. This needs
to be articulated, not only to the business management and stakeholders, but
to the entire team. There may of course be aspects that are very
personal, or potentially commercially sensitive, but as much as possible
should be shared with every one within the business. It empowers the
team, to help shape and drive the business towards achieving it. Just
like a skipper on a boat - the Captain can't steer all the time - to get some
rest, and to be effective - you need to share the destination with the crew!
Method
Method
statements are the way that you 'plan' to achieve the End State. This is
the key to Business Navigation. Just like a journey, each leg of the
journey is one step towards the destination. Like a ship is navigated
by it's crew, Business Navigation creates the 'next steps' from Method
statements.
A simple example might
be a Method by which the business will:
"Develop and maintain an accounting system to provide accurate and timely
information to the management team.."
This might mean that when the business starts as a one-person enterprise it
uses a spreadsheet and cash book. As it grows and funds become
available, the business owner can test against this Method Statement. "I
now have a range of products, a range of cost centers and more transactions
than I can handle - I think I'll get QuickBooks.." By testing Quickbooks
against the Method Statement - you can see that this provides the same
capability - just a more useful and powerful version. Assuming the
business can afford it and it conducts a decision support process to provide
some due diligence - the business can now adapt the accounting system to
provide that Method of doing business. The very same Method Statement
also drives a requirement for the owner to create business operating systems
that detail how financial entries are made, who is responsible and what and
when various reports will be presented to the Business' Advisory Board.
Method
Statements are expanded continually to develop the specifics. Warn and
fuzzy sentences provide little practical application, but they do set the
framework. It is essential then that each Method Statement is explored
fully - to provide the 'do-abe specifics'. This is an ongoing process
and one by which you should conduct regularly - depending on the speed of your
business environment. This creates an 'on-going' business plan - one that can
be simply a number of dot points under a Method Statement. Far more
portable and doable than an inch thick binder written two years out of date.
The following image provides an example of an expanded Method Statement.

Mission Statements.
Certainly the flavour of the last few years - every one seems to have a
Mission Statement now. No missing the military connection here! In
the Business Unusual context - the Mission Statement is fairly simple.
It just succinctly states: Who, What, Where, How and Why...
This is the 'front end' of the business plan - it drives the enterprise
practically towards it's ultimate purpose, or End State. A Mission
statement is the public part of this process - it is ideal for brochures,
cocktail parties and the like. It tells people what the business does..
(Answers that question, "so, what do you do?")
Ideally it is less than 20 seconds, and focuses on the practical
operational aspects of the business in a 'market focused' context.
Business Navigation™
The owners of the ship (Board of the Business) sets the destination, the
Captain (Managing Director) commands the ship towards it, the Navigator
(Business Unusual professional directors) help plot and maintain the course,
the crew (the business team) of course sail, scrub and run the ship for the
benefit of the passengers (customers).

Bringing all of these together on to a single document will set the
conditions by which the business can move towards achieving financial,
lifestyle and entrepreneurial goals simply in an ever changing business
environment.
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