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 Action plans used in strategy formulation are:
- a coarse estimate of what has to be done, how much it will costs,
what is the benefit and who has to help.
- usually multi-year plans
- the rough numbers used to prepare a budget input
Use the action plan to:
- rehearse, step through, block out the idea
- anticipate who you need help from, particularly if they do not work
for you
- estimate the value the plan adds to the firm or the cost that has
to be borne
- make sure the strategy it supports is grounded in reality
- compare different approaches
As long as the computations are consistent across all the action plans
and the estimates are easy to explain, you'll have a good
sense of the relative value of each
plan.
Still, the value of each plan is an "experienced" guess: at best, first
two years' numbers more reasonable than the "out" years.
And, for complex plans, the next step is bottom up estimates using project management software.
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3 Coordination
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Computing the Value  |
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