Product Plans & Major Programs
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Template for: Product Plans & Major Programs
The purpose of this section is to list all of the product
plans and major programs which the business intends to perform in order to meet
its objectives. The key to this section is to ensure that the business
strategies identified earlier are directly supported by the product plans and
programs listed.
If, for example, the business strategy is to provide superior customer
service via the best customer service representatives, then, in the long-run,
the company should devote relatively more time, effort and money hiring and
training customer service representatives than the competition.
Also, many firms, even after they develop great plans which are tied to well
thought out strategies, still fail to implement the plans because people were
not assigned personal responsibility with deadlines.
Product plans and expenditures need to be tied to the budget and to the
profit and loss statement projections.
General Examples
- *Product Plan or Major Program: Introduce Product X
- Benefits Expected: $20 million profit in year one; 25% increase per
year for next five years.
Tactical Plan: Keep product secret until massive ad campaign begins.
Time Frame: by 3/1/95
Person Responsible: R. Brown
Discussion: Market test was a complete success. All relevant
departments continue to meet monthly to coordinate successful product
roll-out.
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- *Major Program: Reduce Employee Health-Care Insurance Overpayments
- Benefit(s) Expected: Save 5% on health care costs per year.
Tactical Plan: We have signed a contract with Oxxford Group to use
their proprietary system to screen past and future health care bills for
accidental and fraudulent overcharges by hospitals and other health-care
providers.
Time Frame: Implement audit system by 10/1/97
Person Responsible: B. Franklin
Discussion: Oxxford Group has been so successful that they charge no
fee; they are compensated with a percentage of recovered funds. Oxxford
Group is located at 230 Park Avenue in New York City.
Industry Specific Example for Retail Bank XYZ
* Major Program: Re-deploy Excess Personnel and Underutilized Assets
- Benefit(s) Expected: Reduce retail banking expenses by $10 million;
use funds for bold new venture.
Tactical Plan: Close 50 of the least profitable retail branches; open
50 new business centers.
Time Frame: by 12/31/95
Person Responsible: A. Smith
Discussion: As a greater percentage of retail banking transactions
are processed electronically, fewer retail branches are needed. They will be
converted to business opportunity centers to meet the needs of small
businesses requiring accounting, legal, and bank operating services.
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