Case Study - A Plan for Action

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From all of the information gathered so far from the Wellness Questionnaire, the additional Q&A and SWOT analysis, we are now prepared to develop an Action Plan.

The Action Plan is an graphic portrayal of the necessary steps and tasks needed to achieve the target goal. It's in graphic form to better illustrate to all members of the team all the elements that go into accomplishing the goal. It places ownership on the team members on their roll in reaching the goal.

This is the most important segment of the whole Performance Measurement process. Without a well orchestrated Action Plan, the target goal cannot be attained. The Plan chronicles in written form all the essential information gathered, lists the tasks and phases, critical success factors, challenges, team members, etc.

Click for full-sized graphic.

Measurable Goals

20% Growth in Gross Sales
Turn-key Operation

Benefits to Owners/Team

Increased business value
Owners freedom to travel
Team participation in growth and profits
Marcy and Barry's Retirement Plans realized

Benefits to Customers

More Reliable and Consistent
On-time Delivery
More Value Added
Improved Quality
Customer Loyalty
Broader Capabilities
Long-term Stability of Relationship

Action Plan

First Quarter

Action Items

Conduct Inventory of existing information systems
Develop Marketing Plan
Conduct CCI - Map Measures
Establish Performance Standards - document systems
Establish Performance Measurement Reporting System

Critical Success Factor: Customer Satisfaction & Acquisition

Challenge: Dependency on Owners

Second Quarter

Action Items

Implement Marketing Plan
- Gather Testimonials from Raving Fans
- Meet with Key Referral Sources
- Set appointment with target prospects - follow-up
Establish key personnel in new management roles
Monitor adherence to performance standards
Monitor performance measurement reports

Critical Success Factors:

Operational effectiveness and efficiencies
Quality Work

Challenge: Growing too fast - Capacity management

Third Quarter

Action Items

Continue face-to-face marketing effort as capacity for growth allows.
Hire new personnel as required by growth demands
Transfer all day-to-day activity management to new managers.
Establish Executive Reporting structure and regular meeting agenda

Critical Success Factors:

Management Team Development
Succession Plan

Challenge: Owners must let go of day-to-day operations

Fourth Quarter

Action Items

Owners take a trip for 30 days to test new management and operations structure
Transfer marketing activities to someone other than Marcy - perhaps hire a full-time sales person.
Continue to monitor company growth and operational effectiveness through executive meeting format.

Critical Success Factors:

Marketing Effectiveness
Pricing and Margins

Challenge: Lack of follow-through on Marketing Plan

And then what?

Do it again!

Set new goals for growth and profitability
Develop new strategic plan
Refine Performance Measurement Systems Accordingly

CFO As You Grow is an on-going cycle of establishing measurable goals, a plan for reaching them, and measuring performance against the plan.

Of course, a plan is only good if you have some way to measure your progress against it! So, the next step was to create a dashboard of performance measurements which would allow the Rickenbachers (and ultimately, their employees) to gauge and adjust progress against the plan.

The process of creating a dashboard for Medi-Bill started with understanding the basic process of their business: acquiring and servicing customers.

Previous: The SWOT Team

Next: Understanding Customer Interaction