The final word

A final word about the Learning company and business development.

The core purpose of almost all organisations is to grow – that is how space is created for individuals to build their careers. It is how extra funds are generated to finance R&D, and to give special rewards for special success. For most organisations, the cost base is both relatively lean and relatively stable so that the next few sales will be highly profitable ones.

So the major focus each year is on holding prices and increasing sales. Business planning becomes in many cases an annual round of sophisticated top down bullying – corporate HQ sets a growth target of 20%, we interpret that for our unit, adjust the future budget accordingly and hope for a following wind. In some companies, the next year’s target is simply the new sales figure divided by 12 months. So month 1 is automatically 20% up regardless of any cyclical aspect, regardless of the drive in the previous month 12 to get in all the outstanding sales and to scramble a result, and regardless of the trend in the previous period.

It is as though the whole firm participates in an undiscussed cover up, a non learning culture and one that ultimately works in so far as it may on fear and stress rather than understanding and deterministic support.

For the learning company and for my clients, the approach is very different.*

  1. Assess the external market demands and opportunities for growth. Financial markets, share strategies may well demand a minimal figure. The state of the customer market may be offering special opportunities.
  2. Require each unit to prepare detailed day to day, month to month plans for how to achieve the targets. Build in the learning from the previous year’s campaigns. Highlight what, if any, unknowns are significant. 
  3. Check the unit plans, share "golden nuggets", introduce expert coaching where relevant, identify key result areas, key time scales, and key actions. Set feedback dates.
  4. Implement the plans; monitor the feedback milestones, and reappraise the plan on a regular basis.
For a more detailed account of Business Development see James Cooke:The Master Class Series

The 4 Step Business Development Plan is intended to achieve, and usually does, startling and often unexpected results.

  • Management is kept close to the reasons for performance
  • In many instances, market growth allows large increases year on year
  • Where the market is falling, the process stops blind continued investment and unachievable target setting.
  • Operators are helped to understand how they can grow their business; they learn together rather than are ruled by fear.
  • Budgets are flexed often several times in a year
  • Each business cycle becomes an opportunity to reinforce initiatives/approaches that work and to reappraise those that do not.
  • Each business cycle gives scope for sharing "golden nuggets" between one unit and the others.

Business development is inevitably stressful. Salesmen face rejection, unit heads face missing their targets. The Learning Company knows about this and knows the knock on danger of cover up and false excuses. Instead of an annual round of macho posturing, it seeks to share understanding, to learn from every success or failure and gradually to create an approach that wins, is understood and is continuously refined.

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