Discussed in the previous post a series of tools that can be used for effective business management. These tools are focused on the short term, as used in a temporal scope that goes beyond the annual activity of the business. But the planning and objectives, which form the basis for establishing control procedures for the management, can also be made under a long-term horizon.
Let’s see what measures can the direction of the company for management and control within an average of 5 to 10 years. The starting point must be, as already discussed above, and planning objectives and strategies to follow to achieve them.
It is necessary to investment planning. The company must provide that either the growth potential resulting from the evolution of the business, either on renewal or upgrade, we will have to face a series of investments. We must therefore draw up a plan which will reflect the new investments to be made, when it will be time to address them and how to finance.
Related to the previous point, we should consider making an estimate of financial needs. Strategies launch new products or new business lines or the costs of business development itself will require a detailed financial plan that provides for these needs in the coming years.
As already discussed in the preceding paragraphs, the estimates of business development covering several aspects. Another to be considered are the organizational changes. Organization planning medium and long term must be considered by the anticipated needs of personnel, training, etc.
We must also consider that during the normal course of business becomes necessary collection and treatment of a large amount of information. This will increase over time, so we instrumentalize appropriate information channels to the needs of the company, these channels must consider the input information (from outside to inside the company), the output (which goes outside the company) and internal communication.
Finally, in our long-term planning projections contemplate launching new products or services, investments in R & D, etc. All this has to be asked in advance to prevent these tasks from interfering with the development of other activities of the organization.