9/14/11

Working Plans: Business Planning (Part 5)

The Business Planning series will posted on Tuesdays, Wednesdays and Thursdays through the month of September 2011. A number of business planning issues will be addressed in the blog. For more detail, depth or individual information and answers, please contact Soltys, Inc. Comments and questions are welcome. We will post answers and responses.


Kudos to those who plan and do make their plan a working company document, but often these companies are the exception rather than the rule. Even rarer are the companies who have communicated essential elements and objectives beyond the leadership of the company. How can you expect your plan to be executed if those who are expected to make the plan a reality do not know what the plan is? The plan must pulsate life into the opportunities ahead, meet challenges and become a path for bringing objectives to reality.

Perhaps you are one of the companies who have tracked your progress against plan. How did you do? Did you implement the strategies and tactics planned or was your plan simply calculated numbers. Were you accountable to the plan?

When writing plans, a lot of companies and business units take out and dust off last year’s plan as a starting point for writing the next plan. This, unfortunately, may be the first point since the plan was written that there was any real review. Other companies work without a plan and hope that the “Ready, Fire, Aim” methodology will work for them. Where there is abundant opportunity with little finesse required, it may seem to work for a while but has little ability to deal with change or be sustainable over the long term.

The real estate industry had enjoyed abundance for a fairly long time. Just about anyone who could spell real estate could sell something. Then almost like a date on the calendar, the industry hit a brick wall. As some put it, the bubble had burst. Most were not ready to believe that the industry would be changed forever. Not only was the volume significantly less, there had been several years of downward pressure on commissions, a rise in the commissions paid to sales associates, and rising costs of operations. The next few years saw real estate prices drop with competition for REO’s and short sales impacting valuation. New construction virtually stopped and commercial buildings now faced even more pressure as the demand for physical space was reduced by consumer use of the Internet with often virtual based workforces.

The bottom line was that every one of these forces impacted margin and the ability to operate a viable business based solely on commission driven revenue. Significant cuts in expenses were made everywhere possible. It was almost impossible to drive increased business in most markets without mergers and acquisitions to take the business away from someone else. The industry was bloated in just about every way imaginable. Accountability that had not been important now became critical but difficult to implement in the business culture that existed.

The industry faced structural changes that had not been seen in decades.

Companies that really worked by a plan often saw the changes quicker than others. The writing had been on the wall for a long time, simply ignored while there was money to be made. Management and leadership teams, many developed during the high growth period, did not have the experience or tools to consider other options for creating revenue and increasing margins. Fewer still saw ways to implement changes in the culture that had been created by the Independent Contractor sales people who had bought into the concept that since they were a commodity of value, it was all about them.

The structural changes companies needed to make with pressures to commissions and fees included expansion of services and products where the real estate brokerage business was often the initial point of business generation for business units and related services. These companies had also, in many cases, given up relationship and ownership to the consumer base served by their companies to individual practitioners and anyone who could post a property search engine. Few plans dealt with these issues or had strategic initiatives in place to counter the challenges.

The good news/bad news is that the industry is a bit less bloated than it was in terms of practitioners who are actually competing for the business available. Some markets have shown definite signs of improvement including some that had not suffered the full impact of the bubble, claiming stabilization. Yet many large markets have a long way to go to recovery and the economic environment remains the elephant in the room.

When writing your business plans and calculating the related numbers, consider several points of analysis – worst case scenario, anticipated scenario and scenarios which are a definite stretch. Look at each source of revenue in terms of its potential, taking into account the pressures the create change. Challenge each area of expense against the desired operational model.

Plans written as working documents, communicated as a path to execution and utilized are often one of the best tools a company can employ. Best of all, it is mostly an investment of time, effort and thought rather than hard dollars.

7 comments:

oakleyses said...

prada outlet, kate spade outlet online, coach outlet, burberry outlet online, longchamp outlet, longchamp outlet online, nike outlet, jordan shoes, ray ban outlet, oakley vault, tiffany jewelry, louis vuitton outlet, tiffany and co jewelry, ray ban sunglasses, gucci handbags, christian louboutin, michael kors outlet store, longchamp handbags, christian louboutin shoes, polo ralph lauren outlet, nike air max, coach outlet store online, michael kors outlet online, louis vuitton outlet online, prada handbags, louis vuitton handbags, coach outlet, tory burch outlet online, michael kors outlet online, louis vuitton, chanel handbags, true religion, cheap oakley sunglasses, louis vuitton outlet, michael kors outlet online, red bottom shoes, michael kors handbags, nike free, christian louboutin outlet, michael kors outlet, polo ralph lauren, kate spade outlet, coach purses, nike air max, burberry outlet online, true religion outlet, oakley sunglasses

oakleyses said...

ralph lauren pas cher, air max pas cher, hermes pas cher, longchamp, ralph lauren, longchamp pas cher, louis vuitton uk, ray ban pas cher, nike air max, nike roshe, vans pas cher, nike free pas cher, sac michael kors, scarpe hogan, hollister, abercrombie and fitch, converse pas cher, lacoste pas cher, sac vanessa bruno, nike roshe run, burberry pas cher, chaussure louboutin, north face pas cher, true religion outlet, air jordan, north face, louis vuitton, louis vuitton pas cher, mulberry, timberland, nike air max, oakley pas cher, hollister, tn pas cher, ray ban uk, nike blazer pas cher, guess pas cher, nike air force, lululemon, air max, true religion jeans, michael kors uk, barbour, new balance pas cher, michael kors canada, sac louis vuitton, nike free

oakleyses said...

north face jackets, reebok shoes, ugg, nike huarache, uggs on sale, ugg soldes, celine handbags, north face jackets, giuseppe zanotti, marc jacobs outlet, ugg outlet, uggs outlet, replica watches, birkin bag, bottega veneta, ghd, vans outlet, soccer jerseys, babyliss, canada goose outlet, mont blanc pens, asics shoes, insanity workout, canada goose outlet, canada goose outlet, nike trainers, nike roshe, ugg boots, lululemon outlet, canada goose, longchamp, soccer shoes, ferragamo shoes, chi flat iron, mac cosmetics, wedding dresses, ugg boots clearance, valentino shoes, instyler ionic styler, jimmy choo shoes, herve leger, nfl jerseys, beats headphones, abercrombie and fitch, mcm handbags, hollister, new balance outlet, uggs outlet, p90x workout

oakleyses said...

nike air max, montre femme, vans, hollister clothing, toms outlet, canada goose, swarovski jewelry, moncler, iphone 6 case, pandora charms, canada goose, gucci, uggs canada, ray ban, moncler, timberland shoes, karen millen, thomas sabo uk, converse, pandora uk, converse shoes, parajumpers outlet, lancel, moncler, coach outlet, moncler outlet, louboutin, moncler, supra shoes, ugg, links of london uk, baseball bats, moncler, oakley, louis vuitton canada, air max, pandora jewelry, hollister canada, swarovski uk, hollister, juicy couture outlet, juicy couture outlet, moncler outlet, replica watches, ralph lauren, wedding dress, canada goose pas cher, canada goose

mao qiuyun said...

6
coach factor youtlet
kate spade handbags
mcm handbags
michael kors outlet
instyler
tiffany and co
ed hardy t-shirts
oakley sunglasses wholesale
beats solo
kate spade uk
pandora jewelry
marc jacobs
lululemon outlet
louis vuitton
nike air max uk
cheap ray ban sunglasses
karen millen dresses
coach outlet online
ray ban wayfarer
lacoste shirts
kobe 9
salomon running shoes
michael kors handbags
valentino outlet
discount oakley sunglasses
kobe bryant shoes
louis vuitton handbags
coach purses
true religion
ray ban wayfarer
iphone 6 plus cases
air jordan gamma blue
true religion jeans sale
ferragamo shoes
foamposite shoes
kate spade factoryoutlet
tods shoes
hollister uk
polo ralph lauren outlet
kobe shoes
fitflop shoes
20150407maoqiuyun

Hyabe Ibbe said...

cheap nike shoes
nike outlet store online shopping
timberland outlet
coach wallets
michael kors sale
michael kors sale
red sole shoes christian louboutin
juicy couture
jordan retro 6
polo factory store
gucci outlet
puma shoes
reebok outlet
michael kors handbags
cheap jordan shoes
christian louboutin outlet
cheap converse shoes
michael kors outlet
christian louboutin outlet
lebron james shoes
gucci outlet
supra shoes
coach sunglasses
michael kors handbags
chanel outlet
michael kors outlet
new balance shoes
kobe 8
nike heels
abercrombie kids
coach purses outlet
michael kors outlet store
nike store
mont blanc pens
jordan 11 concord
michael kors outlet store
timberland shoes
coach shoes
gucci belts
canada goose jacket outlet
jordan 14
kate spade outlet
christian louboutin sale
dior outlet
nike outlet
clark shoes outlet
20150919hxt

Meiqing Xu said...

20160323meiqing
kobe 9
giuseppe zanotti sneakers
replica watches
coach factorty outlet
ray ban sunglasses outlet
kate spade
jordan 4 toro
louis vuitton
michael kors uk
nike sb shoes
michael kors outlet
louis vuitton outlet
fitflops sale clearance
cheap jordans
ugg outlet
cheap oakley sunglasses
coach outlet
gucci handbags
timberland boots
supra shoes
michael kors bags
basketball shoes
christian louboutin
louis vuitton
ray ban sunglasses
toms shoes
juicy couture
louis vuitton
gucci handbags
nfl jerseys
louis vuitton handbags
cheap jerseys
nike air jordan
ray ban sunglasses
louis vuitton
burberry outlet
michael kors outlet
nike blazers
ralph lauren outlet
ray ban outlet