The Right Plan

How do you know if you are working to the right plan? In 1977, when the government of the time recruited Michael Edwardes to run British Leyland, BL was trying to implement the wrong plan. The Ryder report had led them down the path of brand unification and the ultimate abandonment of the traditional BL brands (Rover, Triumph etc). The mistake that had been made was to create a plan based on operational expediency rather than building on the existing strengths of the organisation.

Planning Pitfalls

• Rushed, incomplete or over-optimistic (dishonest?) SWOT analysis
• Unbalanced business goals
• Failing to take a proper account of the past
• Becoming wedded to past glories
• Ignoring the wider business environment (political, economic, social, technological etc)
• Sales targets plucked out of the ether.

Best Practice

• Use a proven process to create your plan
• Test your plan - conduct a sensitivity analysis on the numbers; Talk to your sales channels; Talk to key customers; Talk to other stakeholders
• Reflect on the big changes
• Get objective input - Accountant; Adviser; Analyst

Further reading:

• "Back from the Brink" by Michael Edwardes, published Collins 1983 (ISBN 0002170744)