Failing to plan is planning to fail.
You’ll have heard that one before. The sentiment behind it is why we all plan for success. But all plans are not created equal, some are absolutely better than others. They’re easier to produce, deliver better results and drive more success for the business.
What makes the difference?
The best plans are those which are robust. At its most fundamental, this characteristic can be defined as the ability to perform effectively whilst variables or assumptions are altered.
Continuous alterations are certainly familiar characteristics of the current environment. Changing variables are becoming something of a constant and assumptions and estimates require regular revision where future sales are a key driver of the planning process.
Plans which are robust will continue to operate and produce positive results even under these changing conditions.
The benefits of robust planning
Robust planning allows your business to:
- React to changing circumstances
- Mitigate against known risks
- Operate within an optimal degree of comfort and contingency
- Access a toolkit for dealing with an uncertain future, enabling scenario planning and informed decision-making.
Why are we really planning?
- To create a benchmark against which to measure performance – are we doing better or worse than expected?
- To garner buy-in from across the business and create a single version of the truth and consistency of focus from all stakeholders.
- Plans inform decision making in the face of unforeseen circumstances. They provide the basis for scenarios and insight into the impact of adopting different courses of action.
- Ultimately robust planning increases your business’ chances of success.
What does the best planning look like?
- It contains all available information, end-to-end along your value chain and wider details from the market overall.
- It is based on realistic projections:
- What sales can we achieve and where will they be achieved?
- What stock do we need to manage this?
- What margin will these sales deliver?
- It considers the potential bumps in the road, identifying both potential opportunities and possible risks and the required contingencies.
To find out more about the importance of robust planning and how the AGR software enables enhanced processes, catch up on our recent webinar: