_________________________________________________ Mangement Focus:
Strategic planning is critical to developing a successful business. Strategic planning requires vision creative and thinking. It describes where you want your company to go and then allows you to set specific sales, marketing, operational and financial targets with your management team. These can then be used to set performance targets and budgets to generate revenue and growth, which can be easily monitored and measure on a regular basis by you and the management team to ensure the business remains on track.
The better you are able to plan, the better you will be at managing and monitoring your business and management team’s performance.
Note: good things usually happen when a plan is working - business and revenue is grow, opportunities are plentiful - and it is easy to sit back and take your eye off the ball, allowing hidden weaknesses to gain a foothold in the business without realising it. It is important that all plans are regularly reviewed, updated and directly linked to specific actions, for example against sales, operations and financial performance. While monthly management accounts will keep you up to speed with how well the business is doing on a monthly basis the strategic plan will keep you focussed on how you want the business to progress in the future.
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___________________________________________________ Management Issue:
Strategic planning becomes an issue when revenue and growth is declining or is slower than industry expected. Threats to the business’s future are everywhere: increased competition, higher material and labour costs, poor management and business practices. In addition to the obvious problems that occur a number of other problems that were initially "hidden" when the business was doing well will come to the surface, for example in planning, finance, management, sales, marketing, products and services, technology, people, processes and stakeholder relationships.
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Management Solution:
Focus on formulating your vision, mission and future plans for growth. Ensure that they are appropriately researched, validated and communicated to your workforce through your business aims and objectives. Set individual and team targets, then monitor and measure performance.Make sure your aims and objectives are achievable, assigned, monitored and measured, to ensure performance results are delivered on a timely basis and at the appropriate quality and planned cost planned. Make sure your workforce is trained and competent to deliver the appropriate quality standard required. Ensure you stay on target by setting in place the appropriate management mechanisms and information reporting procedures necessary to check and manage your business.
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__________________________________________________ Management Mechanisms:
- Weekly/monthly management meetings with managers to review, discuss and monitor operational progress towards the achievement of your aims and objectives.
- Weekly/monthly individual manager action plan performance review to monitor and measure progress against criteria and delivery dates agreed.

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