Implementation Isn't Automatic

Chapter 20: Planning for Implementation - Page 20.2

Implementation Isn't Automatic

Track and Follow-Up

Ironically, a good plan alone isn't enough. As the illustration on the previous page indicates, other elements are also critical. Even a good plan means virtually nothing if somebody doesn't follow-up on its concrete and specific milestones or results. A plan won't be implemented unless responsibilities are assigned to specific people, milestones are established and agreed upon, and the people responsible know that somebody will follow up to check on results.

A useful business plan is a live document. As you review implementation results with the people responsible, you will often find the need to set new goals and make course corrections. Keep track of the original plan and manage changes carefully. Although changes should be made only with good reason, don't be afraid to update your plan and keep it alive. We recommend using a computer for your financials so you can easily make changes, as described below.

Prescription for Live Planning

One of the main advantages of creating a plan on a computer is how easily you can change it. Month by month, as you record your actual results, you can make changes to your plan in the future months of the actual tables, preserve the plan tables, and be able to see the plan vs. actual variance.

After your plan starts, type actual results into the sales forecast, balance sheet, profit and loss, and cash plan. Watch what the plan vs. actual worksheets tell you.
Note when actual results indicate you need to make changes.
Stay in the Actual mode and make adjustments to future months of your Actual cash plan. After all, it is already more accurate than the original plan because it has actual results for the months already completed.
As each month closes, type actual results over your revised plan numbers into the Actual area, then repeat steps 2 and 3, above.

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