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April 28 - June 18, 2020
RAM: After the telecommunications bubble burst, Cisco Systems was slow to face reality.
company’s unwarranted optimism.
Cisco’s optimism was misguided.
your competitors
Your suppliers:
Your distribution channels:
The economy:
In preparing our economic assumptions for this automotive product, we looked at four areas.
First, we looked at the legislative situation,
Second, we looked at the macroeconomic environment
Third, we looked at the underlying environment
Fourth, we analyzed each major automotive market in ...
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Once the assumptions are pinned down,
in the operations process
operating plan...
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in the operating...
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three-part ...
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setting the t...
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develop the actio...
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get agreement and closure
The operating plan starts by identifying the key targets: revenues, operating margin, cash flow, productivity, market share, and so forth
give a one-page overview focused
are set from the outside in and from the top down.
economic and competitive e...
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from the whole to the part—that
business as a whole, with subsets for its various components.
many companies do it the other way around, using the budgeting process to get plans from the various levels of each business an...
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Usually the final financial target is earnings per share.
depends heavily
targets for r...
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close attention to gross margins.
gross margins are where the bottom
operating expenses are deducted from the gross margin,
marketing and sales, production, functional operations, capital spending,
One
is identifying targets that clearly and specifically reflect not only what a business wants to achieve but what it is likely to achieve—because
Figures 4 and 5
operations process yields a lot of learning.
In the process of working these things out with the leader, people get practice in making the trade-offs, balancing the short and long term.
In this social environment, people also acquire the knowhow of asking incisive questions,
One powerful technique is to send each person a memo outlining the details of the agreements.
I want to know what you would do,
how much it would cost,
the impact to...
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1999 AOP fina...
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Do not fix the problems individually; fix the process.
Quarterly reviews
people- and organization-development plans.
What I say is, “People, we’re talking about operating plans. This is not about hopes and dreams. This is about realities.
conventional budget processes is that targets disconnected from reality
