PAS => Plan of Action Strategy

"If you don't know where you are going, you'll never get there."

"You don't know what you don't know"

[Attributed to Yogi Berra]

Writing a Small Business PAS is a basic part of crafting the STRATEGY of your small business. It has three areas: main objectives, external environment PAS, and Internal environment PAS. PAS is an Activity Based Model of Strategic Change. What accounting gives you is not the whole story of your hidden costs (hidden from your accounting report) and your hidden gains (untapped revenues that escape your grasp).

Plan of Action Strategy

Learn SEAM and PRISMA!

1. Part I of PAS Objectives, Mission, Vision, & Values

a.

Quality of Products

Human

Potential

Three objectives of 3 to 5 years (e.g. product changes, technology changes, human potential

i. Each objective has set of several goals (with date of completion for each one)

ii.

Control Hidden Costs & Gains

E.g. Within 3 years double the visibility of products in the Las Cruces NM market as measured by customer surveys

iii. E.g. Within 3 years adapt the product to measured changes in customer preferences as measured by focus group

b. Mission statement answers two questions:

1. "Who are our customers?"

2. "Why do we exist?"

c. Vision statement answers one question: "where are we going?" (Comes out of the founding story of the enterprise)

d. Values (comes out of the history of the enterprise)

2. Part II PAS EXTERNAL ENVIRONMENT PRIORITY ACTION PLAN (3 months)

a. What are three strategic actions to change the external environment of the enterprise over next six months? For example, in David Tobey’s 3-10-N there are small business strategic changes needed to get from 3 to 10 to ‘N’ customer levels. What are the critical variables that differentiate the mark and the organizations in it? How will your small business affect that market? With jump from 3 (repeat customers) to 10 (repeats) you begin to understand the important questions and answers to PAS EXTERNAL ENVIRONMENT. You being to move from the 3 (innovative risk-taking customers) to the 10 followers to the mass of “N” that allows you to dominate the market.

i. E. G. Prepare flyers to distribute on campus to promote new products by Oct 15^th 200_.

ii. E.G. Run a focus group with customers to assess taste changes by Sep 10^th 200_.

iii. E.G. Attend trade association meeting to change New Mexico tax laws by Nov 1^st 200_.

b. Each has date of completion

3. Part III PAS INTERNAL ENVIRONMENT PRIORITY ACTION PLAN (3 months)

a. What are the Root Cause HIDDEN COSTS/HIDDEN GAINS that need to be changed (We recommend Root Cause Analysis)

b. Specify the actions to take on the internal environment of the small business Root Cause Dysfunctions:

i. Working Condition changes (with date of completion for each one)

ii. Work Organization changes (with date of completion for each one)

iii. 3C's (Communication, Coordination, & Conciliation) changes

iv. Time Management changes (with date of completion for each one)

v. Training changes (with date of completion for each one)

vi. Strategic Implementation changes (with date of completion for each one)

1. E.G. Get the free assistance of NMSU Small Business Consulting class to assess HIDDEN COSTS and HIDDEN GAINS in REVENUES by submitting application by Aug 1^st 200_.

2. E.G. Form a task group of manager and workers to assess hidden costs and hidden gains by Sep 10^th 200_.

3. E.G. Implement Hidden Cost/Hidden Gain incentive plan as part of each worker’s Periodically Negotiable Activity Contract (PNAC), such as 5% of profit increases 1^st year, 10% in 2^nd year.

4. Part IV Transform PAS (Plan of Action Strategy) into PAP (Priority Action Plans)

PAS OBJECTIVES	PRISMA	External/Internal PRIORITY ACTION PLANS	PEOPLE CONCERNED		FORECAST PLANNING 1^st Half of fiscal year						Comments:
			Marketing	Research	J	F	M	A	M	J
1. Increase Visibility of products in Las Cruces Market within 3 years	Premier to Absent	Prepare flyers	Mr A	Mr B Miss C							Budget has to be set
2. Adapt product to measured changes in customer preferences within 2 years	Acceptable to "7' score on customer survey ==> Premier	Initiate focus group Conduct focus group Customer Survey	Mr A Mr. D	Miss C Miss C Mr. D		x	x	x x			Participants have to be invited Where are the benchmarks?
ETC.
	ENERGIZING		DELEGATION		SYNCHRONIZATION

Note: PAS is adapted form Savall, Henri; Zardet, Veronique; & Bonnet, Marc. 2000. Releasing The Untapped Potential of Enterprises Through Socio-Economic Management. See p. 115.

PRISMA Performance Grid (adapted from James R. Ball. 1997. DNA Leadership Through Goal-Driven Management. Reston, VA: The Goals Institute.

P Premier Level 6	The best possible; leading by example No one can be better
R Robust Level 5	Substantial progress; raising the bar
I Improving Level 4	Exceeds expectation and progressing
S Satisfactory Level 3	Historical level of performance is bare minimum
M Moot Level 2	Declining/Undesirable Of Debateable (moot) value
A Absent Level 1	Vacuous (brain dead) completely lacking any interest Damaging to self and others

See the Online PRISMA example of insturctor expectations of student work

Click here for PRISMA blank form