Do you have your growth plan modeled for the next three to five years? Defining goals are the first step in every successful growth strategy. The implementation of a well-developed growth plan integrates marketing and operations into a cohesive organization focused on corporate objectives. It helps identify opportunities, define needs and avoid pitfalls.

If you don’t have your growth plan modeled, you are in good company. Many catalog and ecommerce companies develop annual plans. Some simply plan from one campaign to the next. Most plans encompass marketing and sales to the exclusion of operations. There are many reasons for not planning beyond the next campaign or year. The primary reason is that the economic climate and other factors that impact business dynamics are very hard to predict. It seems counterproductive to spend time planning when the dynamics are constantly changing.

Planning is hard. First, it requires that you develop a model guaranteed to be wrong since there is no way to accurately predict the future. Since everyone wants to be right and most corporate cultures punish those who are wrong, planning is avoided. Second, planning is perceived to limit flexibility. Some companies require strict allegiance to the plan, believing that any variance is a recipe for failure. Finally, planning takes time, effort, and distracts from the daily crisis management prevalent in many organizations. It is extremely hard to stop fighting the fire to build the buffer.

The key to effective planning is to understand that it is a process, not a destination. It isn’t the specific details that generate success. It is the review of current business dynamics, research into economic trends, and corporate integration required to develop the plan that enhances the organization. Basically, the planning process is business intelligence in action converting information into application.

If planning isn’t standard operating procedure, the first initiative can be overwhelming. Benchmarks have to be established, goals defined, team members chosen, and the process designed. It is best to divide and conquer so the process isn’t self-defeating. Follow these steps and you will be on your way to successfully planning and achieving your growth objectives.

1.      Choose the planning team members. A proven leader should represent every department. The ideal candidate is respected by his or her peers, has problem definition and resolution capabilities and works well with others. It can be the manager if no one else is qualified, but the process works better with key staff members and managerial guidance.

2.      Establish the benchmark baseline. You have to know where you are, to plan where you are going. Benchmarks such as lifetime value, response rates, average order, average lines, inventory turns, order turnaround, fill ratios, etc. are critical to the growth process. They position the starting point and provide quantified information for establishing goals and measuring results.

3.      Identify short and long term goals. They have to be specific and applicable to be effective. Increase annual sales 30% seems specific but it doesn’t easily translate into application. It feeds the “business as usual, but do it better” mindset. Increase annual sales $2 million (or $200 million!) by finding new opportunities and improving existing campaigns is specific and applicable. It encourages team members to seek additional opportunities that will achieve the goal.

4.      Define the process. How are you going to achieve the goals? Where are the constraints? What are the opportunities? You know where you are and where you want to go, so now is the time to map the journey. Identify opportunities and research the marketplace. The best thing about our industry is our willingness to help each other. Ask those who have ventured before you to tell you about their journey. It will help you avoid the pitfalls they have found.

5.      Monitor the progress. Establish an executive information system that provides detailed results daily, weekly, and monthly. This information should be provided to all team members. Revise the plan when business dynamics warrant change. (Note: For more information on developing an executive information system click here.)