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Time to Plan for year 2009 & Budget Realistically

As you are coming closure to the close of the year 2008-9 financial year, its important that you focus on planning for the next year. Here are the few steps suggest to ensure that you plan the most critical year ahead to beat the Recession Blues……

1- Define Organisational Objectives for year 2009-10
2- Identify the various matrices of organizational performance
3- Assign the basic assumptions based on Historical data for last year to future year and Make a tentative Manpower Plan (To be reviewed along the year)
4- Plan control mechanism every month for actuals Vs. Planned

Please refer to the previous posting on 29.1.09 for better utilization of the following inputs.

1. Define Organisational Objectives for year 2009-10
a. If you have not done the Clear objective setting till date or did not bother because of the good market condition earlier.
b. Its time that you tighten the basics of Objective setting & Communication to employees this year which would put you into the driver seat or else You are planning TO EXIT the BUSINESS.
c. Some of the Inputs for Creating Objectives
i. Identify the most critical measurements for organizational performance.
ii. Define the objectives clearly using the SMART rule – Simple/Specific, Measurable, Attainable, Realistic/Realtime & Timelines for completion.
iii. Do not take more than 6-8 objectives may include Revenue, New Investment, Business expansion geographies/verticals, Quality, People Development, Technology & specific organizational developmental objectives.

2. Identify the various matrices of Organisational Performance
a. This may include various ratios related to Revenue Vs. People (Month wise, Division Wise and Yearly)
i. Revenue per person/employee
ii. Operational activities/logistics per Person/Employee
iii. Ratio of support function vs. the number of people in organisation
b. Based on the ratio’s create base assumptions for Manpower Planning ( Need to plan to stretch while assigning for better organizational performance).

3. Assign the Basic Assumptions for Manpower Planning
a. Make division-wise revenue & operational flow expectations
b. Assign the ratios to the future year
c. Create a statement showing manpower requirements division wise/ month wise / year.
d. Critical of this stage is to finalise the numbers & Various Cost implications based on the plan (Financial budget to be interlinked).
i. Map with each of the unit and finalise the realistic people requirements.
ii. Finalise the number of positions and the profiles to be tracked and hired during the next year.
iii. MOST IMPORTANT FOR THIS YEAR : You can list the acitivites which can be done at a backoffice create in any of the Institutes/colleges would help to reduce the budget. The Institutes can help you in Research for Business Development, Cold Calling, Creating Database, Identifying potential buyers/suppliers, create presentations and documentations etc., This is the most critical part in the times of recession… You would save atleast 60% of the cost using this model. Create a option for your to try as part of the plan.

4. Control the Plan
a. Identify the the time lines to review the actual vs. projected every month
b. Identify the areas where you can tweak the plans to ensure that it goes with your business value


Best Wishes for 2009-10,
Reddy GR
Watchout for NEW BUSINESS SCHOOL for Industry Support from Husys 2009 - InHusys Business School

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