Plans are useless

As an undergraduate I was tasked with writing an essay: “Strategic planning, impossible or essential?” I don’t recall thinking about the question very deeply. I do remember, figuring that my best route to a good grade was to argue it was both.

At the time of writing, the UK is facing multiple uncertainties; Brexit, deal or no deal? A further lock-down about to start, ports in chaos, more than 40 countries banning arrivals from the UK, and national borrowing hitting a new record high. Other than the extension of the furlough scheme to the end of April 2021 there have not been any announcements of fresh assistance from Holyrood or Westminster. In the absence of further government support many businesses that are obliged to close their doors might never re-open them. By the time you read this the uncertainties will have changed, but uncertainty will still exist.

The future is always uncertain. Nobody ever knows what is going to happen in the future. Recent events have neither added to the uncertainty nor do they invalidate business planning. The famous observation from Dwight Eisenhower, 34th President of the USA, remains relevant: “In preparing for battle I have always found that plans are useless, but planning is indispensable.”

Business plans are not just for start-ups or loan applications. There are for every business that is serious about its future. There are numerous benefits of planning, it helps to:

1.      Manage cash and other resources

2.      Provide a focus for the business

3.      Set priorities

4.      Monitor progress

5.      Benefit from changes in technology

6.  Identify market opportunities

7.  Set the tone

8.  Ensure alignment

9.  Manage change

10. Anticipate risk

Good business planning should teach us things about our businesses. The empty space on the first draft of your plan is valuable. It identifies the gaps you need to plug. We will never be able to anticipate every possible risk or scenario; the pandemic is a prime example. Whilst few businesses had drawn up plans to cope with a pandemic, those that are in the habit of planning are generally more able to adapt to new circumstances. 

I remember attending a lecture on planning by a senior British military officer. He’d directed troops in battle – his planning was a matter of life and death. He had 4 simple rules:

Put the plan in writing

Communicate the plan

Stick to the plan

Don't be afraid to change the plan for new circumstances (if so, put the plan in writing, etc)

This is a good model to follow. Irrespective of Brexit, Covid or whatever else happens next, we shouldn’t let uncertainty stop us planning. Quite the reverse, uncertainty should make us plan. Whether your planning is basic cash flow forecasting, a risk register, a disaster recovery plan or a fully thought out marketing, personnel and operating plan – it remains valuable and relevant.

In my inexperience, little did I know that my essay tactics would prove to be true. Planning is tough but essential.