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““If You Don’t Know Where You Are Going, If You Don’t Know Where You Are Going, Any Any Road Will Get You SomewhereRoad Will Get You Somewhere””

Planning PhilosophiesPlanning Philosophies::

If You Fail to Plan You Are Planning to Fail!If You Fail to Plan You Are Planning to Fail! Planning is as much about doing the right Planning is as much about doing the right

things as it is doing things right.things as it is doing things right. Are you a WITB or a WOTB?Are you a WITB or a WOTB?

Don’t confuse business Don’t confuse business activityactivity with with business business achievement!achievement!

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Begin with a S.W.O.T. AnalysisBegin with a S.W.O.T. Analysis

S.W.O.T. stands for Strengths, S.W.O.T. stands for Strengths, Weaknesses, Opportunities, and Threats.Weaknesses, Opportunities, and Threats.

Strengths.Strengths. What are you or your business good at, What are you or your business good at,

what are your particular advantages, what are your particular advantages, what positive things are you best known what positive things are you best known for, or what do you excel at?for, or what do you excel at?

Weaknesses.Weaknesses. What are you or your business not good What are you or your business not good

at, what represents your failures, what at, what represents your failures, what can you improve on or eliminate can you improve on or eliminate altogether? altogether?

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S.W.O.T. Analysis continued:S.W.O.T. Analysis continued: Opportunities.Opportunities.

What goods or services in demand within the What goods or services in demand within the economy or community are not currently economy or community are not currently being provided or provided in sufficient being provided or provided in sufficient numbers?numbers?

Is there an availability of financing, time, or Is there an availability of financing, time, or labor that should be taken advantage of?labor that should be taken advantage of?

Are there cost cutting measures or additional Are there cost cutting measures or additional revenue sources you could implement.revenue sources you could implement.

Threats.Threats. What issues within the economy, the world of What issues within the economy, the world of

finance, the application of government finance, the application of government regulations, the demographics of society, or regulations, the demographics of society, or the world of labor might present roadblocks the world of labor might present roadblocks or obstacles to the future achievement of or obstacles to the future achievement of your organization?your organization?

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S.W.O.T. Analysis continuedS.W.O.T. Analysis continued:: Invite employees and possibly family to the Invite employees and possibly family to the

S.W.O.T. analysis.S.W.O.T. analysis. Hold the meeting in a semi-formal Hold the meeting in a semi-formal

atmosphere where people feel comfortable atmosphere where people feel comfortable yet lends itself to serious thought.yet lends itself to serious thought.

SometimesSometimes it is recommended that the it is recommended that the organization’s owner or leader not be organization’s owner or leader not be present.present.

Have a facilitator lead the discussion. Invite Have a facilitator lead the discussion. Invite everyone to participate, to be honest and everyone to participate, to be honest and candid, but also to be tactful.candid, but also to be tactful.

Write the participants ideas and comments Write the participants ideas and comments on a whiteboard or flipchart in front of the on a whiteboard or flipchart in front of the room. room.

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S.W.O.T. Analysis continued:S.W.O.T. Analysis continued:

After the meeting compile the notes into a After the meeting compile the notes into a summary form and distribute them for summary form and distribute them for everyone to consider and evaluate. Then:everyone to consider and evaluate. Then:

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Follow up the S.W.O.T. Analysis with Goal Follow up the S.W.O.T. Analysis with Goal Setting:Setting:

Ideal = the perfect situation.Ideal = the perfect situation. 100% calf crop.100% calf crop.

Goal = a realistic achievable situation.Goal = a realistic achievable situation. 95% calf crop.95% calf crop.

Objective = an event that helps achieve a Objective = an event that helps achieve a goal.goal. Move the calving area to a south sloping Move the calving area to a south sloping

area.area. Ground warms up earlier in the winter.Ground warms up earlier in the winter. Rain water and snowmelt drain away Rain water and snowmelt drain away

allowing animals to be drier and warmer.allowing animals to be drier and warmer. Purchase bulls with a “calving ease Purchase bulls with a “calving ease

breeding trait.”breeding trait.” Consider building a calving barn.Consider building a calving barn.

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Goal Setting:Goal Setting: What should I do when I achieve a goal?What should I do when I achieve a goal?

Replace it with a new one.Replace it with a new one. Goal setting is not a destination, it is an Goal setting is not a destination, it is an

ongoing activity.ongoing activity. The proper number of goals is three per The proper number of goals is three per

category.category. Business.Business. Personal.Personal. Professional.Professional.

Deadline Driven.Deadline Driven. ““The Pareto Rule”The Pareto Rule”

Write it down.Write it down. Assessment = Accountability.Assessment = Accountability. Rewards = Rewards = There is a benefit to effortThere is a benefit to effort

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Is there a specific format for a business Is there a specific format for a business plan?plan?

Who = Who are the owners or managers. Who = Who are the owners or managers. What is the legal form of the business or What is the legal form of the business or organization.organization.

What = What is the nature of your What = What is the nature of your business or organization.business or organization.

Where =At what location or locations are Where =At what location or locations are you located.you located.

When = During what time of year does When = During what time of year does your business or organization function.your business or organization function.

Why = For what purpose are you doing Why = For what purpose are you doing this.this.

How = The plan objectives.How = The plan objectives. How Much = The plan budget.How Much = The plan budget.

FOLLOW THE ROADMAP!!FOLLOW THE ROADMAP!!

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Complete the process with a strategic plan:Complete the process with a strategic plan:

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Strategic Planning Recommendations:Strategic Planning Recommendations:

““No one size fits all answer.”No one size fits all answer.” Be open minded.Be open minded. Think outside the box.Think outside the box. Invite in another “set of eyes.” Invite in another “set of eyes.” Spend as much energy trying to prove Spend as much energy trying to prove

yourself wrong as you do to prove yourself yourself wrong as you do to prove yourself right.right.

Have someone play the role of the “Devil’s Have someone play the role of the “Devil’s advocate.” As Jim Collins states in the advocate.” As Jim Collins states in the book, “Good to Great”, spend time looking book, “Good to Great”, spend time looking under rocks for ugly squiggly things.under rocks for ugly squiggly things.

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Vertical and Horizontal Integration:Vertical and Horizontal Integration:

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Ralph and Kay Jones Business Plan:Ralph and Kay Jones Business Plan: The plan was written in December 1984.The plan was written in December 1984. The plan was to be achieved by June 15, The plan was to be achieved by June 15,

1989.1989. The goals were:The goals were:

To fund Brian and Kristi’s college To fund Brian and Kristi’s college educations.educations.

To pursue different challenges for Ralph.To pursue different challenges for Ralph. To allow Kay to pursue a masters degree.To allow Kay to pursue a masters degree. To secure five retirement plans.To secure five retirement plans. To be prepared to provide for Ralph’s To be prepared to provide for Ralph’s

parents.parents. To pay off all real estate, machinery, and To pay off all real estate, machinery, and

livestock debt within 4.5 years through livestock debt within 4.5 years through progressive change.progressive change.

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The plan The plan FAILEDFAILED. We missed it by:. We missed it by:

How $5,000 became $40,000:How $5,000 became $40,000:

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H.U.T.H.U.T.

Hear.Hear. Understand.Understand. Take Action.Take Action.