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Sustainable Planning and its Benefits for Business


19 December 2023
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Every business runs a process that continues to change from time to time. Company executives must be open to business processes that are developing rapidly. If you don't keep up with the times, business planning will not be profitable.

Business planning must be carried out continuously and followed by all organizational stakeholders. This will simplify the process, reduce repetitive efforts, and make scenario modeling easier in your business operations.

To stay ahead, businesses must be able to adapt and respond quickly to external factors. One way is to change priorities through continuous planning.

What is Continuous Planning?

Continuous planning is a method of planning and creating business budgets that emphasizes continuous and recurring updates rather than annual or quarterly budget cycles.

Rather than creating a single business plan or budget over a specific period, companies need to monitor internal performance and external influences. This aims to inform proactive changes and make quick decisions.

Continuous planning can also be understood as an approach to organizational leadership and management that integrates strategic and financial planning efforts. This strategy is implemented in all aspects of the organization to encourage informed, timely and data-based decision making.

Chief Finance Officers and other financial executives face enormous pressure to play an active role in organizational strategic decisions. Organizations often rely on them to gain visibility into how finances impact overall business strategy.

Continuous planning establishes an ongoing financial business plan to provide a framework and tools for aligning the organization. This covers three important areas, namely strategy formulation, strategy alignment, and performance monitoring.

Benefits of Continuous Planning

Apart from enabling organizations to quickly adapt and respond to change, continuous planning also makes organizations more agile in various ways. By utilizing the latest and accurate data, here are some of the benefits of continuous planning.

1. Smoother budgeting process

Eliminating unexpected obstacles to the budgeting process requires access to more accurate information through the cloud (rather than spreadsheets) and more precise financial forecasting capabilities help.

By continuously monitoring metrics and potential roadblocks, funding shortfalls or budget overruns become more visible. Budgets can be adjusted to stay on track rather than re-estimating annual plans.

Managing small, incremental changes throughout the year is much more effective than creating an annual plan. Just as you keep your kitchen tidy while cooking, you can reduce the need to clean up afterward.

2. Better communication

Decisions in continuous planning should not be left to chance because all parties involved are empowered to implement them. However, this approach will not work without constant and transparent communication.

As a result, continuous planning can build trust and ensure everyone in the organization is on the same page. Even better, when direct communications are based on reliable data, executives and teams can come together and talk in absolute terms rather than basing decisions on a gut feeling alone.

3. Improved team performance

When all teams in a company use one integrated platform, leaders from all business functions have more access to information. Data helps break down silos, making previously disparate teams better able to collaborate.

4. Increased confidence in forecasting

Predictions (forecasts) carried out regularly and continuously will build confidence in the reliability of the planning process. This belief increases trust among stakeholders and investors.

5. Greater efficiency

Business teams can formulate, revise, and implement beneficial changes without being burdened by plans or budgets. For example, performance assessments can be accessed through automated data analysis tools that provide real-time business insights. This helps reduce the time between analysis and decision making.

Implementing continuous planning can be an effective way to deal with changes that occur in business. Budget planning can be better predicted to still get the profits the business wants to achieve.

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Get to know Risk Assessment which helps companies gain profits
20 June 2024

Risk assessment is an integral part of risk management which involves identifying potential hazards, assessing the probability and impact of risks. This also includes implementing measures to reduce or control risks.

In business, carrying out a risk assessment is one of the strategic efforts that needs to be carried out. Because to gain as much profit as possible, of course there is also a risk of possible losses.

Therefore, risk assessment exists to analyze the risks that a company can bear when making efforts to achieve profits.

Risk assessment is not only carried out for a department. Strategically, employees will often carry out their own risk assessments to understand the potential benefits of a job and its feasibility.

Generally, risk assessments are carried out by the HR team or even have a special team to do it.

Usually companies that have a team to carry out separate risk assessments are large-scale companies.

Does the company you work for have a team that does this? So, is this risk assessment something that must be done? Read this article further so you can understand the concept and can make a plan to apply it in today's workplace!

What is Risk Assessment?

Risk assessment is the process of identifying, analyzing and mapping potential dangers that will be faced by an organization or company. In doing business, all actions will certainly have an impact.

Even things that seem to increase profits can still cause losses in business.

Risk assessment is carried out as an action to prevent the danger of loss within a company when running a business. Preparation of more strategic scenarios needs to be well structured and prepared.

The main goal is, if the worst thing happens, namely a loss, every department involved will know what needs to be done to help the company.

The implementation of risk assessment can be done physically or non-physically. Physical includes; evaluation routes, gathering points, handling of work injuries or accidents.

Meanwhile, non-physical includes; digitally recorded data and also research carried out by the company.

Process of Conducting Risk Assessment

You must be wondering how to carry out a risk assessment after knowing what it means. Will the process of carrying out a risk assessment take up your time when there are other tasks that need to be done?

This is the process carried out in carrying out a risk assessment!

Hazard Identification

The first step taken in a risk assessment is identifying the dangers faced by employees and the company. These things include;

  • Natural disasters (floods, earthquakes, hurricanes and many more)
  • Biological hazards (diseases in pandemics, food-borne diseases)
  • Incidents at work
  • Technological danger
  • Employee demo
  • Interruptions in the supply chain
  • Mental health hazards

Look at the place where you work, identify the dangers that are likely to befall the company. Include all aspects of employment including remote workers and non-routine matters such as maintenance and repairs.

Determining Who Will Be Affected

When analyzing an organization or company, think about how your employees will be affected if a danger occurs in the organization.

One of the goals of risk assessment is to obtain minimal losses. So that in the process we can find out who will be harmed and how they will be harmed.

Evaluate Risks and Take Precautions

In the risk assessment that you carry out, of course you can find out the risks that might occur when doing business. Once you know how big the risk is, you can take preventative action.

In the process, risk evaluation helps you reduce the level of risk and which hazards need to be prioritized first.

Documenting Discoveries

If the company where you work has more than 5 employees, it is mandatory to document the results of the risk assessment. The results should also include; the hazards you discovered, who they will impact, and a plan to reduce those risks.

Apart from that, when recording risk assessment results there are things that need to be considered:

  • Carry out proper checks on the company you work for
  • Determine who will be affected
  • Control and deal with obvious hazards
  • Initiate risk prevention measures
  • Involve staff in the process

5. Review the Assessment and Update it

Companies will continue to change as the business develops, therefore risks can change. After completing the risk assessment, don't forget to review and update it.

The purpose of doing this point is so that you can continue to take preventive measures and know what dangers the company will face. Always review and update the results of the risk assessment process that you carry out so that you stay abreast of developments and remain relevant.

Benefits of Carrying Out a Risk Assessment

Carrying out a risk assessment will help you as a party in the company to provide efforts to prevent losses within the organization.

As business continues to develop, the dangers will become more diverse. Therefore, the benefit of risk assessment is as a preventive measure for companies when they experience serious losses in running a business.

Risk assessment as a strategic process is usually carried out in various departments. Both formally and informally, this is done to understand the impact of actions and minimize risks.

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Currently, prasmul-eli provides various short programs to improve your skills at work. Starting from programs to sharpen leadership skills, research, innovation creation strategies, and much more.


Interested in increasing your knowledge and performing better as an employee? Take part in a short program featuring experienced speakers at Prasmul-Eli. For further information, click this link!

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Change Management: Meaning, Benefits, Framework, and Steps to Do It
18 June 2024

In a company, changes can result in decreased work productivity and even losses. Therefore, proper change management is needed.

There are several types of frameworks that you can use to ensure changes in your business can be implemented and accepted well. In this article we will explain in full about change management.

What is Change Management?

Change management is a systematic step that companies must take in implementing organizational, operational changes, and the technology adaptation process. In other words, companies must ensure change continues while encouraging employees to take part in it.

According to TechTarget, change within a company, on any scale, can cause stress and discomfort. Decreased productivity and job satisfaction are only a small part of the negative impacts of messy change.

Before making changes within your company, you should consider the following:

  • Impact of changes on operations and employee conditions.
  • Prepare clear stages and implementation schedule.
  • Document all stages and change processes so that nothing is missed.

All of the above considerations will form the right change management plan. You can also choose a framework that suits the type of change and all employees.

Benefits of Change Management

If the company has a structured and systematic change management plan, the following are a number of benefits that will be felt:

For companies

  • Complete system and documentation.
  • Ensure the similarity of expected and occurring changes.
  • Automation systems can be adopted precisely and quickly.
  • Can identify what needs to be changed and eliminated.
  • Can determine infrastructure whose function can be changed.

For employees

  • Understand the reasons and solutions carried out by the company in the change process.
  • Understand the role and impact that can be provided during the change process.
  • Equalize the perspective and feelings of each employee towards change.
  • Understanding that his and the company's future is on the same path.
  • Can compare expectations and facts of changes that will occur.

Types of Change Management Frameworks

As mentioned above, there are several types of change management frameworks to ensure a smooth process. Summarizing Apty, here are four frameworks commonly used by companies in carrying out change management.

Kotter change management

This framework was popularized by Harvard professor John Kotter. The process he introduced is popular and has been used by many companies since 1996.

Kotter divides the change management process into eight important steps.

  1. Create urgency for change.
  2. Building collaboration within the organization to support change.
  3. Create a strategic and realistic vision.
  4. Can convey the vision well and clearly.
  5. Encourage various parties to take part in the process.
  6. Celebrate all small and short-term achievements.
  7. Maintain the duration and speed of the change process.
  8. Cultivate and form a corporate culture within the company.

When creating urgency for a change, you must be able to convey the reasons and the problem you are trying to solve. Make sure this information is conveyed transparently to employees.

Lewin's change management model

This change management model is quite simple, Lurt Lewin describes the following three phases.

Unfreeze

This phase is used to map out what needs to be changed and what kind of preparation is needed. In detail, pay attention to the following three things:

  • Decide what to change.
  • Analyze the company's current operations and what changes need to be made.
  • Communicate changes transparently.

Change

This phase is when all changes begin to be implemented. Make sure these two things are done:

  • Ensure all employees understand the positive impact of change.
  • Provide training and time for employees to adapt.

Refreeze

This final phase is to ensure the changes are implemented correctly. Three things to do are:

  • Convey again the goals and impacts that will occur from changes to the company's internal processes.
  • Ensure company stability during and after changes.
  • Celebrate success and success in making changes.

PDSA

This change management is a framework that prioritizes continuity. This means that even though changes have been implemented, the process will continue to be optimized and developed. The PDSA stages are:

  • Plan – Identify changes and develop a plan.
  • Do – Make changes from the smallest scale.
  • Study – Analyze the results of changes and identify successful patterns that need to be corrected.
  • Act – Make decisions and implement changes based on analysis and lessons learned.

This change management helps companies and employees to remain flexible and develop.

ADKAR model from Prosci

This framework prioritizes perceived outcomes in change management. Prosci outlined these five results or achievements:

  • Awareness – Company management explains the changes that will occur and their causes.
  • Desire – Leaders and managers ask for employee support through case studies and facts about company conditions. It is recommended to conduct 1-on-1s to understand employee opinions and concerns.
  • Knowledge – Changes are implemented thoroughly. Companies must hold training to support employees in adapting.
  • Ability – Employees will begin to apply changes in their daily work.
  • Reinforcement – ​​Give appreciation to employees for implementing and making the change a success.

Steps to Perform Change Management

If you look at the various frameworks above, the key steps for effective change management are:

Open-minded leader

Quoting Asis Online, feelings of frustration and uncertainty in change can be overcome by a company that can embrace all parties and be open. Internal stakeholders, clients, employees and consumers must receive a complete explanation and understand the new steps the company will take. The right leader will ensure all of those things happen.

Involvement of all related parties

Still related to the previous point, change requires help from all parties in the company. Every team, stakeholder and employee must work together to carry out and support the change process.

Open and clear communication

It can be concluded from the various frameworks above, transparent, intensive, effective and personal communication can help the change process run smoothly.

Change-related training

Employees must receive training and be given realistic time to adapt to changes. Managers can hold 1-on-1 sessions to check on employee conditions.

Clear success metrics

The final step is to determine realistic and clear targets for success. Frustration and uncertainty can result from metrics that are “too high” or impossible to achieve in a short time frame.

That is a summary of change management so that companies can avoid problems that could have a bad impact.

Through proper change management, the mission and vision of leaders and employees will be united. Therefore, change management is a process that must be prepared carefully.

Before making a decision, you should first study the change process and management.

Join the prasmul-eli short program and learn about various change processes and management!
Click here now to discover classes and programs!

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Differences between CBO and COO in Company Operations
29 May 2024

Many things are developing along with the growth and development of the company's business. Therefore, a more specific executive role is usually determined in dealing with problems that become obstacles in developing the company.

In designing and executing a company strategy, contributions from the Chief Business Officer (CBO) and Chief Operating Officer (COO) are usually needed. Although in practice there are some similarities, the tasks and skills required are actually different.

This is what causes the roles of CBO and COO to exist simultaneously in a company. Specifically, there are several questions that are often asked and differentiate between the roles of CBO and COO.

Difference between CBO and COO

Although often understood as positions that can be used interchangeably, the qualifications and objectives of the CBO and COO roles are separated by several main differences, including the following.

1. Tasks performed

A CBO has the task of overseeing all company operations that generate profits. This usually spans all company departments and may involve strategic decisions that are aligned with company goals.

The CBO monitors business effectiveness and recommends things that need to be improved in company operations. In optimizing organizational talent, CBO also participates in HR management including the recruitment or learning and development process. They can review documents, statements and financial reports to determine compliance with company targets and identify and correct risks.

Meanwhile, a COO oversees daily administrative and operational functions with the CEO. In some situations, they may also manage a department to develop the company's sustainability strategy. The COO communicates this to employees and ensures that their tasks are aligned with the goals the company wants to achieve. If necessary, the COO also helps with human resource management.

2. Working conditions

Typically, CBOs spend more of their working hours in an office environment. The CBO will support strategic initiatives through meetings with employees or partnering with clients. CBOs work hours often the same as employees, although there may be overtime during peak seasons.

The COO works independently, but may collaborate regularly with selected teams to complete specific initiatives. The COO's work environment is fast-paced and may work long hours to ensure the production process runs smoothly. The COO may also travel to meet suppliers or clients.

3. Skills and abilities

In fact, the skill requirements of CBO and COO are similar, but have certain differences. Both need to have effective verbal and written communication skills to be able to give instructions to employees and provide reports to the CEO.

Both CBOs and COOs also need the ability to identify problems, develop solutions, and problem solve. Both require strategic thinking skills in order to make decisions that have a positive impact on the company.

However, the main difference in the CBO role is that it focuses more on the financial aspects of the company so strong financial or accounting skills are required. Meanwhile, the COO will oversee day-to-day operations so the skill he needs is an understanding of company and organizational processes.

4. Position requirements

As company executive positions, CBO and COO usually both require a bachelor's or even a master's (postgraduate) degree. The educational background of CBOs and COOs can come from majoring in finance, economics, or business administration. Typically, these executive positions also require 10-15 years of work experience to ensure that they understand various organizational processes, procedures and policies.

If you look at their responsibilities, CBO and COO both have a focused role in business operations. In this case, the CBO focuses more on business operations, while the COO looks at day-to-day operations. This means that the CBO has a role that has a broader scope with the role of strategic integration between departments, driving business development, and focusing on long-term growth.