Business Planning With Six Sigma
Posted by in Business Plan on May 24, 2011
DMAIC stands for Define, Measure, Analyze, Improve and Control. Here we analyze how these steps can streamline the business planning process.
Define
This is the phase that requires attention to VOC, which is ‘voice of the customer’. Here you are the customer since the business plan is meant to serve you. There are other minor customers, such the government, partners and shareholders etc., and all have an interest in the business. Here you define what you wish to achieve with your business in the near and foreseeable future.
Measure
The purpose for measurement is to set the targets to be achieved. The baseline for measurements is the previous year’s budget and accounts. For making a business plan, the previous year’s gross margin and profit in dollar terms would serve as parameters to determine the projected targets that need to be achieved.
Analyze
This is the stage that requires you as the business owner to put in the maximum effort, as it is here that you will critically examine your business to identify areas for improvement. As overall business objectives are achieved through a variety of actions, it is necessary to break down the entire process into different activities, depending upon what exactly your business does. However, there are some activities that are common to most businesses that are helpful in understanding the process. Read the rest of this entry »
The Importance of Succession Planning
Posted by in Project Plan on May 24, 2011
Business Continuity Planning
The Disaster Recovery Journal (DRJ) defines Business Continuity Management (BCM) as “A holistic management process that identifies potential impacts that threaten an organization and provides a framework for building resilience with the capability for an effective response that safeguards the interests of its key stakeholders, reputation, brand and value creating activities. The management of recovery or continuity in the event of a disaster. Also the management of the overall program through training, rehearsals, and reviews, to ensure the plan stays current and up to date.” (n.d.) Within the scope of BCM comes succession planning, defined by DRJ as “A predetermined plan for ensuring the continuity of authority, decision-making, and communication in the event that key members of executive management unexpectedly become incapacitated.” (n.d.)
The Importance of Planning
Why are these planning aspects critical to businesses and governments? Planning to do business during a crisis is critical to being able to perform essential functions during and after the crisis. The prognosis for those without a plan is certain business death:
Of businesses without a disaster recovery plan:
> 80% will fail in just over a year,
> 43% will not even reopen,
> 93 percent that experience a significant data loss are out of business within five years according to the U.S. Bureau of Labor. (Hatter, 2004) Read the rest of this entry »