GCSBDC July Newsletter

Carroll Cobb

One of the nice things about being the Director of the Galveston County SBDC is that I get the opportunity to write about topics that interest me and speak with business owners about their problems. Having been a business owner myself, I am well aware of the many demands on the owner's time and energy. The following is an excerpt from a talk I delivered on "Strategic Planning."

As business owners, we are required to solve problems every day. Most of the time, we develop a solution using our common sense and judgment without giving much thought to the process involved. Sometimes, however, the problem is so complex that we need a plan. Good planning requires a systematic approach to break down the problem and devise a solution. The first step is to clearly define the problem. Example:

Problem: Sales are declining

Planning is a systematic approach to solving a problem to achieve a goal. So, the next step is to define the result that we are willing to accept as a solution to the problem. Others may offer valuable input, but only the manager can really define the acceptable outcome. The manager may define the solution as the minimum acceptable result. Or one may define the solution as the optimal result. My own preference is to define a solution that will make me feel satisfied as a manager and one that I believe can be accomplished within my time and budget restraints. Example:

Problem: Sales are declining

Goal: Increase sales by 8%

Goals, however, are meaningless without a timeline for completion. The time allowed for completion may, in itself, be another goal, and something about which you will want to confer with staff. But ultimately, the decision rests once again with the manager. The deadline should not be arbitrary; it should allow sufficient time to accomplish the result without undue stress on staff while still posing a challenge. Example:

Problem: Sales are declining

Goal: Increase sales by 8% within the next six months

Now comes the hard part. The "HOW." What methods or means are we to use to accomplish the goal? The "HOW" is the overall strategy definition. It differs from "Tasks" as you will see. There may be more than one strategy to be employed to accomplish the goal. Example:

Problem: Sales are declining

Goal: Increase sales by 8% within the next six months

Strategy: Use the internet to increase product awareness

Obviously, there may be several strategies to accomplish your goal. We may employ these strategies simultaneously, sequentially, or with staggered beginnings. For each strategy, we will need an implementation plan. The implementation plan will define what is to be done and who is to do it. It will also set a date by which it is to be done, and assign a budget for accomplishment. It may also include a monitoring/feedback loop. Example:

Problem: Sales are declining

Goal: Increase sales by 8% within the next six months

Strategy: Use the internet to increase product awareness

Implementation: John Doe will work with XYZ Company to redesign our website to provide better product information and to increase traffic to website through search engine optimization, pay per click advertising, and social media marketing. Budget not to exceed $4500. New website to be up and running within 2 months. Report to Owner every 2 weeks or as needed.

The strategy and implementation portions of the overall plan will be repeated for as many strategies as are being employed to solve the problem. For instance, in this case, we might increase our sales force, open a new target market, or run specials on our best selling products. All these would be valid strategies. But we don't have a plan until someone is assigned to carry it out, given a timeframe, and allocated a budget to achieve the goal. Remember..."if we fail to plan, we plan to fail".