The management plan is a description of how the organization or business will run. With a management plan, you can formulate management structures and operations. The plan also ensures that all members share the same view and that goals will be achieved. You can draw up a management plan easily through a few simple steps.
Step
Part 1 of 4: Starting a Management Plan
Step 1. Determine the need for a management plan
The management plan serves to formulate the procedures and policies that are important to the organization, as well as the responsibilities and authorities of everyone involved. Without a plan, operations may be inconsistent, responsibilities unclear, and the organization unprepared for certain events.
- The business plan allows all members of the organization to clearly know their position, including who they should report to, who reports to them, and their responsibilities.
- Role assertion also creates a sense of responsibility because it will be clear who is at fault if something happens or doesn't happen.
Step 2. Outline the plan
The management plan should contain a number of key elements. Draw a simple outline on a whiteboard or computer document, showing the sections of the management plan so that you and your team can discuss them. The management plan should include the following sections:
- Description of the management structure.
- A section detailing each member and their responsibilities and authorities.
- A chart showing the interactions and responsibilities between each level in the organization.
- Sections that describe various aspects of the organization being managed as well as management policies and procedures.
- Schedule for updating, enlarging, and developing management and management plans.
Step 3. Describe your management structure
Each organization or business has a somewhat different management structure. At the beginning of the plan, describe the management structure in words or diagrams. Make it clear who makes the final decisions, whether management, the board, or a single person. Include external and internal decision makers, as well as consultants. If necessary, explain how decision-making is allocated based on the organizational hierarchy.
Step 4. List the various aspects of the organization to be managed under the plan
Divide all processes and functions into categories. Categories can be defined by department in a large business, or by business process in a small business. Aspects of operations that are generally included are employee management, financial control, inventory or supply control, marketing or public relations, and operations (such as manufacturing or sales). Divide all aspects of the organization so that you can define their respective roles and procedures.
Part 2 of 4: Describing Ownership and Management
Step 1. Pay attention to the ownership type of the organization
Describe company ownership in clear terms. State whether the organization is public, private, or not-for-profit. In addition, if there are multiple owners or investors, you will need to explain the division of powers, liabilities, and shares. For example, ownership of the organization might be shared in a partnership or company shareholder agreement.
Step 2. List the names of the board members
If your business has a board, list the members. Write a summary of their leadership, experience, strengths, and weaknesses. Private businesses may not have a board of directors. If there is no board, you do not need to enter this section.
Include a copy of the board's policies, including terms of election, term, responsibilities, powers, and conflict resolution. This information must be stated in the business operating agreement or other incorporation document
Step 3. Introduce key management members
Write down the qualifications and experience of each member. In addition to owners and board members, this section includes investors, executives, managers, key employees and staff, and entrepreneurs. Describe the background of the members, along with their characteristics and contribution to the success of the business.
Step 4. Present the strengths of each individual on the management team
Explain how valuable these qualities are to the position each member holds. Include attributes such as motivational ability, financial aptitude, and business prowess.
- List each member's previous positions and duties, which apply to their current obligations. Explain how the obligation leverages capabilities and strengthens management's position.
- Enter the educational background of each manager. Explain how their training is beneficial for the company. Include education that is only relevant to their current position.
- If you are the only employee, include your own experience and strengths.
Step 5. Describe the hiring process
Explain the basics of recruiting new employees. State the qualifications and experience required for each position. This is especially important if you haven't hired a manager. Include the training process and any incentive or reward programs implemented. A description of the benefits can also be included here.
Step 6. Include the name of the outside consultant or advisor you will use
There are people you might contact for marketing, personal advice, and financial consulting. For example, your business may need:
- Lawyer
- Accountant
- Insurance agent
- Consultant
Step 7. Include a summary of the management team's capabilities
Write a short description explaining why your team is successful. At the end of the management plan, state specifically why your team will determine the success of the business. Explain how the combination of managers in this business model will help the company in the years to come. This section combines the various points of the plan.
For example, “Our team of people of varying abilities have a combination of 40 years of experience in this field. With a coordinated democratic structure, they can work together effectively to achieve the desired results. With this team, we believe that the business will be profitable in two years.”
Step 8. Describe the relationship between management, owners, and employees
An important aspect of management operations is the interaction between management levels and between management/owners and employees. Describe the authority, responsibility, and role of each level in this aspect of business operations. Include shared decision-making and collaboration processes, as well as necessary meetings or lines of communication. Make sure everyone agrees on how to resolve disputes and share power.
Part 3 of 4: Writing Policies and Procedures
Step 1. Consider the need for a written policy
Written policies aim to define operations in large organizations. Policies will create consistency and ensure all processes run smoothly. However, a very small business or organization may not need a policy. In fact, policies can sometimes limit collaboration and slow small group work. Think about the size and needs of your organization before drafting a policy.
Step 2. Assemble a group of management and employees
In each consideration of aspects of operations, gather management members and employees who are directly affected or responsible for the process or area. Define policies and procedures with them, receive input, and clarify all the details. This allows plans to be implemented in real operations and gives employees a sense of ownership.
Step 3. Write down policies and procedures for each aspect of the business
This will be used as an explanation to management and employees on how to operate this part of the organization. Organizational policies, philosophies and regulations are designed to achieve objectives and ensure operations are in line with organizational principles. This policy is realized through procedures, which are specific methods for carrying out business operations.
For example, the policy to only use and sell environmentally friendly materials and products. The procedure to support this policy is to buy goods from environmentally friendly vendors or check the environmental impact of the materials or products used
Step 4. Make sure the policy fits your culture and philosophy
Policies and procedures must be made in line with the philosophy and objectives. Check each policy point to make sure they all lead to the same ending. If something doesn't align or is questionable, make changes to better fit the mission.
Part 4 of 4: Revising the Plan
Step 1. Read the plan again carefully
The management plan must be professional. The document must be free of spelling and grammatical errors. Print on wrinkle-free, smudge-free white paper.
Step 2. Choose a clear format
The management plan format should be the same as any other business proposal. You can mark main sections with bold headings. Use an easy-to-read font. The standard font is Times New Roman, size 12. You can use bullet points to list your experiences, abilities, and responsibilities, or present important information in short paragraphs.
Step 3. Consider asking a business consultant to review the draft plan
The more people who read it, the better. A business consultant or financial planner can provide better advice. Discuss with a consultant. They may be able to find gaps or conflicts in it.
Step 4. Send it to all owners
All owners and high-level managers in the company must approve the management plan. Make sure each owner has a copy. They can send you corrections and revisions. Consider their input carefully. If you don't agree with a change, discuss it with them to find a compromise.
Once they agree, have all owners sign a management plan before you turn it over to investors, banks, or funding bodies
Step 5. Make a commitment to change the plan if needed
All newly created management plans are untested and will likely require revision once they are implemented. Therefore, you should include a stipulation that the plans can be changed and revised as the business travels. Start by making an assessment schedule, stating when a meeting will be held to discuss the effectiveness of the plan and the success or failure of its implementation.
- Ensure there is a way for all management and employees to submit feedback related to the management plan.
- Then, create the approval method and apply the changes.
