The Problem

Operating managers usually view the planning process as a time-consuming, distracting financial exercise rather than an opportunity to formulate the future direction of their business. However, effective corporate planning has very little to do with finance and everything to do with the underlying business.

The Solution

Ridge Hill helps operating managers use their extensive knowledge of the overall market and competition to examine every factor impacting their businesses. During the planning process, we recommend that our clients start by examining revenue issues:

• Overall demand
• Pricing trends
• Product line profitability
• Competitive products

We take this approach because we know companies often project stronger growth after new products in the pipeline are shipped. However, companies should take a critical view of new product development: analyzing market potential, pricing, and time-to-launch of all products in development, as well as competitor efforts. Only after companies identify realistic product revenue potential should they examine cost structures, since costs are more likely to meet budget than revenue.

To assist our clients in corporate planning, Ridge Hill customizes services to clients' unique requirements and uses creative problem solving rather than imposing standardized approaches. Our ultimate objective is to improve the quality of corporate planning throughout the company.

Read our article: Developing A Successful Strategic Plan