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When to Change Your Business Plan
Sometimes you need to stick to your business plan to make it work. Even a mediocre strategy consistently executed over time is better than a series of brilliant strategies that keep going off in different directions. Strategy often takes time.
On the other hand, there is no virtue in sticking to a plan, just for having stuck to a plan. We live with constant change.
Which brings me to the dilemma that many business owners face:
Do I stick to my plan, or change it? If I change it, then is my plan vs. actual (reality) valid? Doesn’t it take consistent execution to make strategy work?
To which I’ll add;
“It is better to take many small steps in the right direction than to make a great leap forward only to stumble backward.”
– Chinese proverb
I’ve been dealing with this dilemma for years, as a business owner, entrepreneur, and consultant. I want to suggest some guidelines to help you decide whether to change the plan midstream, or not.
A Good Planning Process
It starts with having a plan that includes priorities, milestones, and expected results. Also, you have to track results and compare them to what you had planned or expected to see. And also, as you developed those expectations, you should have included assumptions.
Ideally you have that process going on already. Without it, there’s no plan to change, and you are managing reactively. If you don’t have a process of planning in place, start it immediately in order that you have a better planning process later on.
“The best time to plant a tree is 20 years ago. The second best time is today”. – African proverb
Stay the Course or Revise the Plan?
Take some time each month to review your plan and its results. Once you have the process established, it doesn’t take more than an hour or two to get team members together.
Start that monthly meeting with a good hard look at your underlying assumptions. Identify the key assumptions and whether or not they’ve changed. When assumptions have changed, there is no virtue whatsoever in sticking to the plan you built on top of them. Revise your plan, automatically, when key assumptions have changed.
Then look at the differences between what you planned and what actually happened. Identify key differences between the plan and actual results. Some will be better than planned, and some worse.
For each key difference you discover, and all of them combined, use your best judgment and common sense to determine whether the differences were caused by false expectations or unexpected good or bad execution. Also, consider external and internal factors that may have influenced the results.
Maybe your expectations were too conservative, or too optimistic. In that case, you revise your plan. Use your common sense. Were you wrong about the whole thing, or just about timing? Has something else happened, like market problems or disruptive technology, or competition, to change your basic assumptions?
Maybe you discover you and your team have executed better than expected, or results were better than expected. Hooray. Stick to the plan. It’s working.
And maybe you discover that your execution was wrong, poor, or flawed. If any of those reasons are the case, work on executing better and change the plan.
Do not revise your plan glibly. Remember that some of the best strategies take longer to implement. Remember also that you’re living with it every day; it is naturally going to seem old to you, and boring, long before the target audience gets it.
Are you a small business owner with an amazing success story to tell? If so, submit your nomination today for the 2017 National Small Business Week Awards. All nominations must be mailed or hand delivered to the nearest SBA Office no later than 3:00 p.m. ET on January 10, 2017. Consult the Awards Guidelines for details.