Ever wonder what is going wrong with our 'well-thought-out-business-plan'? We all planned it, signed off on it, made copies, passed it around. One quarter passed and we are behind.....why?

1. 3/30/2017
The One Page Business Plan
Company
1
The Failure of Linguistics
Execution, What Goes Wrong and
What To Do About It
April 7, 2011

2. 3/30/2017
The One Page Business Plan
Company
2
If you don’t get the words right…
Might build the wrong business
~
May never get the numbers right

3. 3/30/2017 The One Page Business Plan Company Page 3
Unlike Medical, Legal, Engineering
Professions…Biz Language is
Casual & Less Precise!
 Balance Sheet = Profit & Loss Statement
 ROI = Any benefit from any action
 Vision = Mission & Mission = Vision
 Strategies, Goals, Objectives: Interchangeable
 Income = Sales or Profit

4. 3/30/2017 The One Page Business Plan Company Page 4
CEOs
Complain
~
Can’t get
People to Work
on the Right
Things

5. 3/30/2017 The One Page Business Plan Company Page 5
But only 60% of CEOs report
having a business plan
~
Less than 50% of those
indicate they are useful
business tools

6. 3/30/2017
The One Page Business Plan
Company
6
Let’s quickly review
elements of Strategic Plans
written by five CEO’s
Look for clues as to why these plans might
not be powerful business tools?

7. 3/30/2017 The One Page Business Plan Company Page 7
Vision Statement
“Crossing dietary, cultural and geographical
boundaries by the innovative development,
manufacturing and distribution of milk
throughout the world”
Nice words, too vague..of little value!
What business this is? What it will look like in 3, 5 or 7 years?
Annual Revenues? Types of products? Distribution?
Markets Served? Number of Employees?

8. 3/30/2017 The One Page Business Plan Company Page 8
Mission Statement
To exceed the expectation of our customers through the
delivery of superior service and products that
rewards our employees and enhances the value of our
shareholders investment.
Could be any corporate business! Typical 1975 Mission Statement!
Sterile, generic…states the obvious!
No statement about uniqueness of company or value to customers!
NOT MEMORABLE – NOT MOTIVATIONAL

9. 3/30/2017 The One Page Business Plan Company Page 9
Strategies
• Lead people, manage resources
• Measure means as well as results
• Make decisions at the proper levels
• Challenge others to grow through
appropriate risks
Extraordinarily poor! This CEO’s brain was not engaged!
Statements too generic to be of any value. They provide NO
ground rules, boundaries, formulas for success, best practices,
business models, philosophies, values, etc.

10. 3/30/2017 The One Page Business Plan Company Page 10
Plans
 Get understanding of partner characteristics and look
for potential partners
 Assist in the development of new products
 Develop system to measure product margins
 Search for new customers & opportunities to continue
maximum capacity
Plans should describe business building projects. These
statements look like “weak strategies”…at best.
No start or completion dates! No assignment of responsibility!
No work scope! Extremely poor set of “Plans”

11. 3/30/2017 The One Page Business Plan Company Page 11
Objectives
 One new partner by Dec. 2012
 Two new markets by Dec. 2012
 One new product by Dec. 2012
 FY2003 profits of $6 million
 Performance mgt system completed 12/31
Objectives define what we measure…and are always GRAPHABLE
A CEO’s Objectives should “holistically” measure the business.
What’s missing? Sales, Customer Service, Mfg, Operations, etc.
This set of Objectives is very weak, poorly defined, incomplete.

12. 3/30/2017
The One Page Business Plan
Company
12
Is it Really Surprising Business Plans
Don’t Work…if Written So Poorly?

13. 3/30/2017
The One Page Business Plan
Company
13
What happens if we chose our
words carefully?

14. 3/30/2017 The One Page Business Plan Company Page 14
Vision Statement
“Within the next 3 years build Colorado Garden
Window Company into a $40 million home
products company specializing in manufacturing
and distributing custom and replacement garden
windows and skylights for the upscale home and
baby-boomer markets.
“Vision statements describe the business we are building”

15. 3/30/2017 The One Page Business Plan Company Page 15
Mission Statement
Bring light, air, and
the beauty of nature into homes
through creative windows.
- Colorado Garden Windows
“Mission statements describe why the business exists and the
benefit the customers will receive.”

16. 3/30/2017 The One Page Business Plan Company Page 16
Strategies
• Focus on upscale home developments & baby-
boomer remodeling trends
• Build Colorado Garden Window into nationally
recognized brand name
• Become vendor of choice by maintaining
inventory of standard window sizes
• Control quality by manufacturing in-house
“Strategies are broad statements that describe how the business
will be built and what will make it successful overtime.”

17. 3/30/2017 The One Page Business Plan Company Page 17
Plans
• Introduce new Scenic Garden Window at SF
Products Show in March 01
• Hire new sales rep by April, focus on Signature
Homes in Denver & Provo
• Phase in new packaging design by Mar 31st.
“Plans describe the work or projects that need to be
completed in the next twelve months.”

18. 3/30/2017 The One Page Business Plan Company Page 18
Objectives
• Increase gross revenues 15% to $17 million
• Achieve profit before tax of $1.5 million
• Reduce COGS to 38% thru automation program
• Reduce Distribution costs to 4% of sales.
• Reduce inventory to 3.3 months by August 31st.
• Increase active store count to 4,500 by yr end
• Achieve 98% on time delivery w/ 98% accuracy
“Objectives define what we will measure. Well written objectives can
be graphed because they contain a numerical value.”

19. 3/30/2017 The One Page Business Plan Company Page 19
If we chose
our words
carefully…
~
sometimes
we are
understood

20. 3/30/2017 The One Page Business Plan Company Page 20
Aoccdrnig to a rscheearch at Cmabrigde
Uinervtisy, it deosn't mttaer in waht oredr
the ltteers in a wrod are, the olny
iprmoetnt tihng is that the frist and lsat
ltteer be at the rghit pclae. The rset can be
a total mses and you can sitll raed it
wouthit a porbelm. Tihs is bcuseae the
huamn mnid deos not raed ervey lteter by
istlef, butthe wrod as a wlohe.
Amzanig huh?
(Question: why can we read & understand this, but the previous 5
pages were almost incomprehensible?)

21. 3/30/2017
The One Page Business Plan
Company
21
Final Thought…
Successful businesses are built everyday…even
with the imprecision of language!
~
Why take the chance?
Choose your words carefully!
Demand managers choose their words carefully!
~
Be Precise…in words and action!

22. 3/30/2017
The One Page Business Plan
Company
22
Questions??
Optional Slides on Future of Planning

23. 3/30/2017
The One Page Business Plan
Company
23
Future of Planning &
Performance Management
Simple, concise, web-based, linked
~
Alignment, Accountability…Results

24. 3/30/2017 The One Page Business Plan Company Page 24
Navigate to Plans via
Organization Chart – on the web


25. 3/30/2017 The One Page Business Plan Company Page 25
Every
manager
has a plan
~
it’s just a
click away

26. 3/30/2017 The One Page Business Plan Company Page 26
Each
Objective
has a
Scorecard

27. 3/30/2017 The One Page Business Plan Company Page 27
Every
Action
Plan
has a
Progress
Report
11/30/2000
10/28/2000
12/29/2000
2/5/2001
2/15/2001

28. 3/30/2017 The One Page Business Plan Company Page 28
Tell the
status
of
every
plan at
a
glance