The best way to survive 2009 is to have a solid and realistic business plan.

It’s hard to believe that we are entering another new year. For many, it may be difficult to fully comprehend how hard this upcoming year is going to be. In my many decades of working, I cannot remember a time of such uncertainty and economic challenge. Between the commodities’ roller coaster, evaporating available credit and Main Street’s obsession with pinching pennies, it makes planning a task not for the faint of heart.

But then again, planning has never been our industry’s strong suit. For OEMs, business planning is an established process, often whipsawed by the whims of Wall Street or significant investors. For smaller, entrepreneurial companies (the majority of our industry today), planning is either a foreign concept or one that flies in the face of the customer-driven or seat-of-the-pants style that brought business owners into the PCB industry in the first place. And yet, now more than ever, the ability to plan, adjust and effectively implement the plan may be exactly what is needed to ensure survival!

Planning is not necessarily the issue. We all plan. Most of us probably do a satisfactory job identifying what we want to do, but then fall short – way short – in two vital areas: being realistic and executing the plan. I know that my weak point is in execution. It sure sounds easy to get everyone to play off the same sheet of music and to do what is needed when it is needed. Equally, I know some who can get the troops marching, but in the wrong direction because the plan was unrealistic. In either scenario, excellence is rarely the end result!

Good planning really begins with a keen awareness of the external environment you are operating in, as well as the resources you have and/or can commit to achieving the goal. In both cases, people might get gummed up by wearing rose-colored glasses while looking at the outside world and the inside resources. In today’s global environment, I think it is safe to assume the worst case and plan from there. Opportunities – great opportunities – still exist for all, but times are certainly tough and require an extremely conservative outlook. Equally, because the external environment is very volatile, planning needs to incorporate the ability to change rapidly. You need to have a structure and process in place to deal with whatever may happen, realizing that in these dynamic times, your plan needs to be flexible.

Even more critical is understanding – really understanding – the internal resources that are available to make any plan happen. Again, clarity is needed when you review what you have and compare it to what is needed.

Most of us can understand the financial resources available and, with some level of accuracy, can forecast the amount of funding needed. However, most of us have a tougher time estimating the human resource side of the equation. Whether estimating hours or skill, most people underestimate how long it will take and overestimate the time and capability available.

This later point has caused more problems for our industry than anything else. If there is any lesson we should have learned from the 2001-2002 downturn it is that skilled, experienced and motivated people count. I know too many companies that are no longer in business due to the fact that when they had to “adjust their plan” downward, they cut the wrong people. Or, more to the point, they kept the wrong people! How many times have companies in our industry cut someone with years of experience and kept a junior person simply because the experienced person was paid more? Our industry has lost many dedicated and experienced people in the last downturn simply to save a couple bucks per hour.

In planning, a key point is to realistically understand the skills, abilities and attitude of your existing work force and, if you need to add or to reduce head count, make sure you identify people with complementary skills and the best attitude to move the organization forward. In some cases, that means saying good-bye to an old timer who is not moving forward or keeping the highly-paid, experienced person in a lower-level job. In all cases, it requires planning for what is needed, and clearly and objectively understanding what you have.

Implementation is the second area that can derail the planning process. You can fully understand the financial and human resources at hand, have identified all the external issues that will impact you and, of course, have a worthy and attainable goal. However, if you can’t implement the plan, then it’s all for naught!

Implementation means making the tough decisions – decisions that you often will be second guessing yourself about. This is why being realistic about your resources is so important. When you have to make the tough decisions, you want to minimize the second guessing as much as possible so you can make decisions that are needed to move the plan forward. Equally, in times where uncertainty may force many mid-course corrections, you need to have both the conviction to make the tough decisions and to walk-the-walk so everyone, including yourself, experiences the commitment to achieving the plan’s objectives.
This new year may be one of the toughest we have encountered, and it will bring with it a hard environment to excel in. In tough times, solid planning can be a key to survival. PCD&F

Peter Bigelow is president and CEO of IMI (imipcb.com); This email address is being protected from spambots. You need JavaScript enabled to view it..