Action plan: discover how good planning can boost your business in 2023

The end of the year is a great opportunity to evaluate the projects carried out in recent months and, of course, to plan goals for the new cycle. For this purpose, the action plan stands out for helping companies to establish their objectives and improve results. By adopting the methodologies of this type of planning, you can easily boost your business in 2023.

An action plan is a tool that maps the path that the company must follow to reach its objectives. It is a plan that defines the necessary actions to achieve “schedule and deadlines, responsible for each task, necessary financial and human resources and monitoring of results” (Neipatel).

It can be considered a mandatory tool in the organizational routine, as it is linked to various functionalities such as project management, risk management, and strategic planning.

According to Peter Drucker, considered the “father of management”, “the action plan needs to serve as a basis for managing time, which is an executive’s scarcest and most valuable resource. The loss of time is inherent in an organization, be it a public authority, a company, or a non-profit entity”.

How to create an action plan?

In practice, the action plan can be divided into five moments, also called life cycles:

  1. Initiation
    It is the starting point of any action plan, after all, it is the moment when the company’s objectives are defined and where it wants to go.
  2. Planning
    This second stage defines the main activities and resources needed to achieve the goals. It is time to set up the schedule and define who is responsible for each task. That is, planning is the basis of the action plan, which can be created based on the 5W2H methodology or the PDCA cycle, for example.
  3. Execution
    This is the time to put the action plan into practice and analyze possible errors or noise that could harm the company’s progress. Here it is important to highlight that the more detailed the planning is, the easier and better executed the action plan will be.
  4. Monitoring
    Business consultant Ram Charan once said: “seventy percent of strategies fail due to ineffective execution”. Therefore, monitoring is the best way to ensure that the action plan is evolving correctly. At this stage, when an error is identified in the process, it is already possible to apply an immediate correction to prevent major problems from reaching the production cycle.
  5. Closure
    After executing all the previous steps of the action plan, it is time to evaluate the results, based on the objectives established in the first step. Documenting the processes and their learning will serve as a basis for future projects and better results.

5W2H Methodology and PDCA Cycle

A widely used tool for creating an action plan is the 5W2H. The methodology consists of seven key questions that must be answered at the time of planning. The acronym is formed by the initials of the questions in English, namely:

– What
– Who
– When
– Why
– Where
– How Much
– How

When answering the questionnaire, the team will have an activity map in hand, which facilitates the visualization and understanding of the processes.

PDCA is one of the best management tools and it is surprising that it has been on the market for almost 70 years and is still up to date. It is used for the control and continuous improvement of processes and products, proposing changes based on scientific methods.

The PDCA has four steps, which give rise to its acronym: plan (plan), do (do), check (check) and act (act). “As the name implies, it is cyclic. So, it must be applied repeatedly and systematically so that it has an effect in the medium and long term” (Neipatel).

Count on Suite SA to prepare your action plan

Suite SA has an integrated management module that helps improve the action plan. It is SA Governance Manager, a complete system that guarantees excellence in corporate governance through 4.0 management.

Within the SA Governance Manager, the user will be able to consult and proceed with the plans that were created within the module, as well as update, edit and verify the processes.

With it, it is possible to structure the company’s strategic and operational planning, in line with the main market methodologies, such as BSC – Balanced Scorecard, GDP – Management by Guidelines and OKR – Objectives and Key Results.

Learn more about SA Governance Manager and all its possibilities!

Share it

Do you want to receive
management content?

Subscribe to our newsletter right now