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1-Year-Plan

I. Definition​

The one-year-plan or 1-year-goals on Simplamo revolve around the following:

  • Financial goals: Desired revenue and profit
  • Measurables: Success measurement metrics
  • Non-financial goals: 3 to 7 important objectives of the whole business to support the achievement of revenue and profit targets.

Why only 3 to 7 Objectives? Because "Less is more". When a business tries to do too many things, it loses focus, spreads its resources, and, as a result, accomplishes very few of set objectives.

II. 3 Values​

  • Once the 1-year-plan is completed, you will have a clear view of what needs to be accomplished in 12 months to support the Target 3 Years and eventually reach the 10-year targer.
  • All resources will be focused on selecting critical tasks, creating momentum for the company to have a higher chance of significant success.
  • Building a solid foundation for setting Quarterly Priority Objectives, which we will explore in the following section.

III. 4 Steps to set up​

Step 1: Define the Date​

It is the final date to measure the performance of the business within one year.

Typically, it will be the last day of that year, 31/12/20XX.

Step 2: Determine Financial Goals​

  • Revenue
  • Profit

You can take the estimated numbers from the previous year and add a percentage or a specific number that the Company aims to increase.

Remember to balance the opportunities, finances, time, and resources to obtain realistic target.

Step 3: Identify Measurables​

Answer the question "Where does this revenue come from?" or "What numbers can measure success?"

Commonly, these factors can be referred to:

  • Number of new customers
  • Number of contract renewals with existing customers
  • Number of domestic contracts
  • Number of international contracts
  • ...

Step 4: 3 to 7 Non-financial Goals​

Answer the question "What are the 3-7 most important things to do to achieve the revenue mentioned above?" and/or "What are the 3-7 most critical things to accomplish to realize the Target 3 Years?" (refer to the "Company Vision" section if you haven't filled in the Target 3 Years).

Write all objectives following the S.M.A.R.T Format:

  • S (Specific): Understandable
  • M (Measurable): Quantifiable (related to numbers)
  • A (Attainable): Achievable (with enough personnel and budget)
  • R (Relevant): Related to higher-level objectives
  • T (Time-bound): Has a deadline for completion.

In case there are too many objectives listed in the table, try to review each line and condense them to a maximum of 7 by using the "Keep - Kill - Combine" formula:

  • KEEP - To be executed during the year
  • KILL - Not urgent or necessary to implement
  • COMBINE - Combine into one major objective.

An example:

Now, you have established a clear one-year objectives for your business. Let's proceed to break down the objectives into Quarterly objectives and assign them to the Owners.

To have a Plan that’s contributed by all members of Leadership Team, Simplamo encourages you to organize the Annual Planning Meeting Day using the standardized framework, which is thoroughly described [HERE].