Operational Vs. Marketing Growth Plans

[Roy Strauss]

When most companies prepare their growth plans, the plan is conceived by the marketing staff or company ownership without consulting with the operational staff or determining the company’s operational capabilities. The growth plan is memorialized and goals are set. It was not determined if and how well those goals can be achieved, or what resources are required vs. those available to be able to achieve them. The plan usually is a percentage number and does not consider contingencies for better or worse than anticipated circumstances. Growth goals are often not achieved, customers are disappointed, and profits suffer.

To increase the odds of achieving the goals, and meeting customer service requirements in a timely manner and within budget, the aforementioned process must be changed. Marketing should provide the growth goals with high and low potential variations. Once sales goals are submitted, operations must establish production goals and determine if and how they can be met and if there is a shortfall, which resources and at what cost are required to meet them. The company then has a choice whether to provide additional resources, scale back growth plans, or choose a compromise solution.

Roy Strauss is President of the Strauss Consulting Group, a supply chain logistics company that specializes in helping companies increase profits and customer service while reducing costs. For additional information, please go to www.scg4u.com.

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