Page 14 - Growth and Contingency Planning Toolkit

GROWTH & CONTINGENCY PLANNING
4 Types of Planning For Sustainable Business Success
4 TYPES OF PLANNING FOR SUSTAINABLE BUSINESS SUCCESS
Planning For • Financial Planning
Business
Success • Strategic Planning
• Contingency Planning
• Succession Planning
Springfield Remanufacturing Corporation (SRC) is well-known for High-Involvement 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 to repeatedly generate positive results. SRC uses four types of key planning that
translate directly into our sustainable business success. Let’s dig deeper into each of these four
key types of planning:
PLANNING DEFINITIONS
1. Financial Planning - Long-term profit planning aimed at generating greater
return on assets, growth in market share, and solving forseeable problems.
2. Strategic Planning - A systematic process of envisioning a desired future, and
translating this vision into broadly defined goals or objectives and a sequence of
steps to achieve them.
3. Contingency Planning - A plan devised for an outcome other than the usual
(expected) plan. It is often for risk management when an exceptional risk that,
though unlikely, would have catastrophic consequences.
4. Succession Planning - A process for identifying and developing internal
people with the potential to fill key business leadership positions in the company.
Succession planning increases the availability of experienced and capable
employees that are prepared to assume the roles as they come available.
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GROWTH & CONTINGENCY PLANNING
1. 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.
• Be clearly communicated.
• Be rooted in reality.
• Be forward-looking.
• Be reviewed formally; progress must be tracked on an ongoing basis.
2. Strategic Planning:
In addition to having a strong financial outlook, your company also needs a clear strategic vi-
sion. (Again, you probably already know this—it isn’t rocket science!) 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.
3. Contingency Planning:
A sturdy business 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 busi-
ness 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.
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