Guest contributor Ernie Whitehouse of PCMS Consulting says:

Have you had enough of the pundits screaming "Build a Business Plan" from the lecture circuit? While they are correct, the fact is few of them have actually done it themselves.

They are terrific motivational speakers, and they really can talk the talk. But walking the talk in the everyday pressure cooker of running a business is a different story. Especially in this economic environment.

Most of us start the New Year with great aspirations about developing and implementing a new business plan for the upcoming year. Unfortunately, three quarters of the business plans never get fully implemented. Instead they end up filed under good intentions.

Understanding the reasons why business owners build a business plan, but then fail to implement it, is another long and complex blog post entirely. Resolving those issues for your specific company is better served with a diligent real estate coaching and/or consulting program.

However, there is a simple formula for business planning success in 2013. We have successfully used it in the businesses we own and run, and with those of clients we serve. Its core components include simplicity, clarity and accountability.

We call it: Build a Business Plan--SIX... FIVE... ONE... THREE

Let us explain how the SIX...FIVE...ONE...THREE strategy will help you successfully build a business plan.

SIX objectives to build your business plans

Your business plan should have NO MORE THAN six major objectives for the coming year. Less is better. Fewer objectives make your business plan far more manageable and its goals achievable.

Each objective should be clear, focused and quantifiably measurable. If you cannot benchmark and measure the objective, it is not an objective.

Here are six generic objectives to illustrate our point:

1. REVENUE:

1. Increase annual revenue by 5% over last year.

2. PROFITS:

1. Increase gross profit margin from 22% to 25%, or;
2. Increase pretax profit from $510,000 to $625,000.

3. GROWTH:

1. Open a new sales office in Any town, USA, or;
2. Launch a new business unit to deliver home services to new and existing clients, or;
3. Acquire ABC Company.

4. OPERATIONAL PRODUCTIVITY:

1. Increase the average number of closed sales units per sale associate from 13.5 units to 15 units, or;
2. Increase average closed commission per side from 2.75% to 3.0%.

5. COMMUNICATIONS:

1. Publish 12 monthly newsletters to current and prior customers, or;
2. Develop and implement a new daily internal electronic newsletter to all associates and staff.

6. CUSTOMER SERVICE:

1. Increase "Excellent" rating on customer service from 55% to 65%, or;
2. Implement a system to include expired and sale-fall-thru transactions in our customer service rating systems.

FIVE strategies per objective

Underneath each objective you should have no more than five specific strategies to accomplish the objective. That's right, a limit of five strategies to accomplish each objective. We repeat a theme here:

Each strategy should be clear, focused and quantifiably measurable. If you cannot benchmark and measure the strategy, it is not a strategy.

The clear, concise development of strategies is where the rubber hits the road for achievement of the objective. It is the critical success factor for your business plan. There must be a direct cause and effect relationship between the successful implementation of the strategy and the achievement of the objective.

The strategies are the heart and soul of your business plan.

ONE assignment per strategy

Each strategy needs to be assigned to an individual in the organization. Their compensation package needs to reflect the successful achievement of this strategy. This person is solely and or mutually accountable for the achievement of the strategy. Some executives and/or managers may have more than one strategy assigned and/or shared in a duplicate manner, but you must take care to spread the responsibility across all key leadership and management personnel.

The responsibility for achievement must be felt by all key leaders in your organization. With a maximum total number of thirty strategies in the overall business plan, all of your leadership team should be deeply involved and accountable for the achievement of the strategies.

THREE week reviews

As the Owner, President and/or General Manager, pick a time and day of the week that you can block off twost hours of your calendar for non-interruptible time every three weeks. Block off this time in your calendar every three weeks for the entire year. Do not take calls, meetings or other interruptions during this review time. This time is your exclusive strategy review time, and it occurs every three weeks.

Inform your leadership team you will require a short, concise written update and status report every three weeks, due in your email the day before your strategy review time. No excuses for late arrival. Set the annual schedule of due dates and publish it.

Respond to each strategy status report with a short, concise answer. If you like the progress, give the person positive congratulatory feedback. If remedial action is required, schedule a face-to-face meeting within the next seven days. Do not delay action.

The process of consistent review every three weeks and implementing immediate action (positive reinforcement or remedial action) on each strategy is a key to success for the business plan. Delays feed on themselves and this is the major downfall in the success of business planning. Be self-disciplined with the three week review process and you will reap the rewards.

Remember our simple formula: SIX...FIVE...ONE...THREE

• SIX OBJECTIVES
• FIVE STRATEGIES PER OBJECTIVE
• ONE ASSIGNMENT
• THREE WEEK REVIEWS

To view the original article, visit the PCMS Consulting blog.