Use a large quiet room with no distractions (an off-site location is recommended)

Gather the following materials:

• Calendar of last year, this year, and next year
• Large white board, dry erase markers, and eraser
• Large peel-and-stick paper with black, red, and other colored markers
• Complete set of 12-month running, departmentalized, financials for each manager
• Water, drinks, snacks and catered lunch for two days (longer for some companies)
• Last year’s annual planning papers (if possible)
• Last year’s detailed marketing expenditures

Prior to the planning session, have each manager prepare for their department in advance. This will make the planning process flow much easier and faster.

• Break down department sales, service calls, call conversion ratio, and revenue numbers by month
• Make note of wants, needs, past mistakes, and past successes

1. MISSION & VISION STATEMENT | 1-3 HOURS

The mission is a brief, yet detailed, customer oriented statement, designed to promote the company value and culture.

The vision statement is a detailed summary of the core company value and growth plan for the next 1, 5 and 10 years. This should include a detailed growth and profit plan for at least 5 years.

2. THE GOOD, THE BAD, THE UGLY | 1-3 HOURS

A top 10 list of the best things your company did last year. Can they be improved upon?

A list of the worst things your company did last year. Can some ideas or processes be improved upon? If so, create a plan to do so. Or, do you cut your losses and try something new?

3. DEPARTMENTS THAT WORK AND THAT DON’T | 1-3 HOURS

Troubleshooting Process: Problem statement, define problem, possible solutions, best solutions, action plan, repeat process

4. GROWTH BY DEPARTMENTS | 3-6 HOURS

Break down every department by monthly revenue production last year
Add in desired growth budget for next year; add extra 5-10% for BHAG

All managers must sign off on department goals. Find out what will get them to their goals and make it happen.

5. TRAINING PROGRAM | 2-4 HOURS

Annual calendar designed to strengthen your staff (technical staff, managers, human resources, OSHA)

Life planning, company culture, goals and vision, and best practices.
This should have an annual budget that should take in revenues from manufacturers you do business with. Make it FUN! The Great Game of Business by Jack Stack.

6. MAN POWER | 2-4 HOURS

Build a calendar that takes in all departments. This calendar is designed to know that your monthly man power needed in each department.

Its goal is to be able to cross train your staff to move from their main department to a secondary department to prevent seasonal layoffs.

It’s also designed for the manager to be prepared for 90 days in advance for hiring opportunities and allow advanced training to be achieved.

7. MARKETING & BRANDING BUDGET | 4-6 HOURS

Marketing Plan- this should be a set monthly budget of all marketing expenditures that may be adjusted weekly according to work load. When busy, move budget to a slower time of the year. When slow, add to budget to keep trucks running.

Branding for Long Term- this is a budget you should look at on a 5 to 10 year commitment. This is a plan that should change very slowly after much thought is made. It is a culture you build that both attracts customers and staff.

8. MANAGEMENT AND ORGANIZATIONAL CHART | 1-2 HOURS

Managers are the layer of workers who design systems and processes that make the everyday task of the staff more efficient. They provide motivation and training to staff members and show a career path of promise. Managers are the level who take action on the company vision.

The organizational chart is designed to show leadership in the company. If a manager earns respect, he will remain a cornerstone in the company and should earn very high compensation based on the production of his crews. Organizational charts are also designed to show a potential career path for all to follow. A well run company with systems and processes will allow upper management and owners to have the freedom to be away from everyday business activity.

Managers should be able to advise only 5-8 staff members before using supervisors to divide work load.

9. KNOWING YOUR BREAKEVEN POINT, PROFITS AND BONUS PLAN | 2-3 HOURS

Breakeven point is a place where your monthly revenue reaches the point it overcomes your monthly fixed expenses. It is a moving object that changed monthly.

Profits are what is expected by the company each and every month to remain a strong and growing independent entity. A good range of profits in the Service Industry is between 15-30% NIBT.

Bonus plans should reflect performance when goal is obtained and should raise upon over achievement.

10. WANTS, NEEDS, WISH LIST BUDGET | 1-3 HOURS

Additional trucks and major tools, office needs (copier, software, etc), updated phone system, computers, servers, work stations, production department (insulation blower, radiant spray setup, etc)

The list can get big, so put a real time goal to fulfilling this list.