Tag Strategic Plan | Jenifer Bartman

December 24, 2020 by Jenifer Bartman

MEDIA: 2020 Delivers Canada Post a New Business Model (CBC News)

COVID19 has brought interesting times to many companies and organizations, including Canada Post. It was not that long ago when people might have viewed this longstanding organization as having a waning future, as society became increasingly mobile and digital in nature; then, 2020 came along.

With Canadians confined to their homes on an ongoing basis, the need to procure goods was, and continues to be, of heightened interest, while efficient movement of money and information has also been in need. This situation has presented both opportunities and challenges for Canada Post, a topic I recently discussed with CBC News. This story is of significant interest, as the Holiday Season approaches, appearing in print and also on CBC Cross Canada Syndicated Audio (great to chat with radio in major markets, from coast to coast to coast!).

There is much that can be said about business model evolution. One of the interesting things about this particular example is the notion of “everything old being new again”. Some viewers will remember the old days of home delivery, be it milk, department store trucks, or other household items being sold door-to-door (yes, people actually earned a living this way). We waited by the mailbox for important letters, cards, and parcels; perhaps, if we were lucky, there was a cheque in the mail. Having a family member that worked at the downtown Eaton’s store meant that the delivery man was at the door, often. Why was this business model so popular at the time?

As recently as the 1970’s, many Canadians had limited mobility; think about the relative norms of women taking time off from the workforce to raise children and families having one vehicle, at most. This created a need for products and essential goods to be brought to the doorstep. Studies have shown that women have significant purchasing power, in terms of shopping decisions made by households, further supporting this business model of the past.

Increased mobility brought progress, where the 1980’s, 1990’s, and 2000’s meant that a lot of time was spent out and about. This new freedom included Canadians spending a significant amount of time in shopping malls and restaurants, as well as at events and attractions. As 2010 and beyond arrived, it is interesting to see how much this trend has changed.

In short: technology has provided a different type of mobility, one that we can hold in our hand. Be it by way of a smartphone or tablet, Canadians can order just about any type of item for delivery, as well as transmit information and money. Many businesses have capitalized on this trend, including major courier companies and financial institutions, as well as relative newcomers, such as Amazon and food delivery upstarts; this has also changed how businesses, in general, operate. The masses of envelopes that once included letters and payments can now be sent electronically, representing a decrease in traditional mail, while parcel traffic has increased (at the time of this writing, thousands of parcels are stuck across Canada, as a result of volume increases and COVID19 protocols, including one of mine).

What this means for Canada Post’s business model is actually not that different from the case of any business: know where the company can successfully compete and have the pieces in place to do it well. So, while traditional letter mail will continue to decline, there is an ongoing need to get goods to Canadians. Integral to doing so on a competitive basis are the logistics infrastructure and capability, within acceptable cost parameters. This includes continuing to invest in technology, for both Canada Post staff members and customers.

This brings the story full circle, where getting goods to Canadians (rather than going out to get them) is the priority. The reason, this time, is not due to a lack of mobility, but rather, it is a function of how mobility has changed (it is now digital, not physical), as well as the time constraints that have become a way of life for many. Think about this the next time a purchase is being contemplated, and ask: what is driving this decision?

Thank you for including me in your stories, CBC, and best of the Holiday Season, everyone!

in Media / News 0 comments

December 30, 2016 by Jenifer Bartman

No Plan for a Succession Plan? 5 Practical tools to get your business on the road to succession planning

Published by Divestopedia

Every day, business leaders who have been at the helm of their company for many years have fleeting thoughts about what the future might hold. How long do I want continue to work? Should I sell my business? Who could manage my business? Is it time to make a move? Perhaps the biggest question may be this: how do I even get started with addressing these questions?

It’s not uncommon for business leaders to meet with their advisors from time to time; to develop their personal post-sale financial plan, establish family trusts, or work through tax planning strategies. Although all of these are necessary and important tasks, there is often one very important component missing: how to bridge the gap between a post-sale retirement plan and the current state of a company. In other words, business leaders might be good at planning for life after selling their business, but are not so good at undertaking the succession planning process. Why is this the case?

One reason could be so simple that it isn’t fully appreciated: many businesses don’t do a very good job of planning, period. Annual budgets: we don’t need that. Business planning: too much trouble. Sales planning: all sales budgets are too inflated to be useful, right? Technology planning: we just buy the new stuff every few years. It’s no wonder the succession planning process never gets off the ground.

Here’s the problem with businesses that don’t plan: since planning is a process that is developed through practicing it, these companies don’t have the opportunity to generate competency in this important area. A disciplined planning process, starting with shorter term and more straightforward plans, such as an annual budget, can help staff members develop the competency to approach more complex initiatives, such as business and succession planning. What’s more, the corporate history and financial results that are compiled during the process represent an information base that is integral to succession planning.

So, in the spirit of walking before you can run, here are 5 ways to get the planning process started in your company today:

Get the right assistance—as with any new task, it can be much easier to design a process and overcome roadblocks by engaging the right advisory expertise. Business advisors that have helped companies work through the annual budgeting or business planning process can provide valuable insight into establishing an appropriate approach and avoiding common pitfalls. This course of action typically brings far more value to a business than its actual cost, in terms of time savings and identifying best practices for use over the long term.
Develop standardized documents—as with any key process, taking the time to develop templates and documents that can be used repeatedly is a much better approach than starting from scratch every time. A standardized budget template, including information to be collected, supporting calculations, assumptions, and financial statements in the proper format can greatly expedite the process and help users become more productive when undertaking a new initiative.
Assign roles and responsibilities—the planning process should be the responsibility of all key management team members within a company and not just a task relegated to a particular department. Ensuring that roles are clearly defined and that a number of people are responsible for providing information to be included in the budget, for example, has benefits of at least threefold: better information, planning training across the organization, and enhanced “buy in” of the result.
Set (and adhere to) timelines—like any other initiative, the planning process requires formal deadlines that are not simply kicked down the road if they are not met. Planning can sometimes take a backseat to other activities that are considered to be more relevant or immediate, and maintaining this type of attitude will not enable a business to develop the competency that is required to support more complex initiatives, such as succession planning.
Keep planning relevant—one of the fundamental mistakes that companies make is failing to keep the planning process top-of-mind, resulting in budgets and other plans becoming quickly irrelevant as soon as they have been developed. It’s critical to ensure that actual results are compared to plan consistently throughout the year (monthly is ideal) and variances investigated and resolved. It’s no wonder that companies that fail to do this find little value in the planning process. Even more, striving to meet or beat the plan is the real challenge, so don’t miss out on this valuable opportunity to enhance corporate performance.

Although this might seem like a lot of work, think of it as an investment. The key is to start today, take a gradual approach, and build planning into your regular business routine. Doing so will get you one step closer to starting the succession planning process, as well as actually implementing your post-sale financial plan.