February 6, 2012

Strategic Planning Backward

As a senior manager, you know the value of project work and how effective well-designed projects can be used to create organizational performance. In reality, all business work activity can be project work – activities that take company resources and deliver results to profitable customers. Unfortunately, routine job activities not related to well-designed projects often become part of the 80% of work that only delivers 20% value to your customers. A solution to this dilemma can be found in the writings of Russell Ackoff.

Ackoff was a leading systems thinker, college professor, consultant, and a prolific writer. (http://en.wikipedia.org/wiki/Russell_L._Ackoff) In 1986, Management in Small Doses. John Wiley & Sons: New York, Ackoff introduced the planning backward idea – planning with the end in mind versus starting with present circumstances. Of course construction and manufacturing have always started with blueprints and engineered designs, but organizational planning usually focuses on ‘fixing what’s wrong’.

So how do we start with planning backward? Begin thinking about strategic innovation projects to create competitive advantage. Work backward from customer needs and expectations. Eliminate or redesign business processes that do not create value. Outsource routine business activities to improve margins. Outsource projects to project providers to make change and accelerate the adaptation process necessary to compete in the globalize marketplace. Create meaningful work and have fun. GMO

About GMO
GMO is an online resource of business ideas and project provider expertise to help owners and senior managers create and maintain a competitive advantage.

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