The Planning Process Imperative

'Plans are nothing, planning is everything’

Dwight D. Eisenhower

Plans are nothing, planning is everything’ Dwight D. Eisenhower

'Strategic planning is a process, not a product’

Harvard Business School

In an increasingly complex world, CEOs are placing greater emphasis on improving the planning process as it facilitates strategic alignment and it guides the organization toward its defined objectives.

Peter Drucker’s 5 dimensions of a business:

Customer Satisfaction
Employee Engagement and Growth
Innovation
Social Responsibility
Financial Strength

Today’s modern connected planning process technology is an enabler. It involves, supports, and improves all 5 of Drucker’s dimensions.

3 imperatives for every CEO

Harvard Business Review*

1. Drive cost out of the business

To achieve cost reduction the business needs to know ahead of time the cost implications of any chosen strategy.
Real-time scenario modelling provides this insight.

2. Respond to industry change

To achieve adaptability** the business must be able to change any aspect of the plan at any time.
Connected planning across every business function (Finance, Sales, Supply Chain, and HR) provides this flexibility in real-time.
Planning process flexibility is at the heart of every successful business.

3. Maintain good governance

To achieve good governance the business needs to keep aligned with regulatory changes, including environmental and financial reporting.
Connected planning provides a single source of truth and therefore ensures that every number reported is correct***.

References and notes

*https://hbr.org/2015/03/the-3-things-ceos-worry-about-the-most

**PWC (2015) “Given the scale of the challenges and uncertainties that today’s CEOs face in global markets, it’s little wonder that the one ‘must have’ attribute they point to for future success is adaptability”

https://www.pwc.com/ee/et/publications/CEOSurvey/18th%20Annual%20Global%20CEO%20Survey.pdf

***Remember the adage, ‘Garbage in, garbage out’. Any system process is dependent on the quality of the input data. Assuming the input data is correct, then a connected planning process (based on a single source of truth) provides the CEO with the confidence that every number reported is correct.