One part of the military’s planning process (post #29 — https://www.thefivecoatconsultinggroup.com/the-coronavirus-crisis/planning-process ) is the mission analysis or, in the corporate world, analysis of the problem or analysis of the task. As part of the mission analysis it is important for the leader and the planning group to have a common understanding of the facts and assumptions that form the foundation for the plan or strategy that is being developed.

The military’s definitions of facts and assumptions translate to a corporate environment as well. A fact is a statement of truth or a statement considered to be true at the time. An assumption is a supposition on the current situation or a presupposition on the future course of events, assumed to be true in the absence of positive proof or necessary to enable the leader/planning group to complete their analysis and make a decision on a course of action.

The facts and assumptions that you built your corporate plan upon in January 2020 are different now in August 2020. Let’s look at a small Injection Molding Company in Kansas City as our hypothetical example:

Injection Molding Company, January 2020

Facts:

• 10 Manufacturing Employees, 2 Sales People, 1 Office Manager, and 1 Executive

• Annual salary = $1,150,000

• Travel budget = $75,000

• Building lease and operation costs = $5,000,000

Assumptions:

• Sales volume will grow 5% from 2019 volume

• Margin will be flat vs 2019 average

• HDPE will remain between $0.35 and $0.40/pound

Injection Molding Company, August 2020

Facts:

• 8 Manufacturing Employees, 3 Sales People, 1 Office Manager, and 1 Executive

• Annual salary = $1,050,000

• Travel budget = $25,000

• Building lease and operation costs = $5,000,000

Assumptions:

• Sales volume will decline 10% from 2019 volume

• Margin will increase 5% vs 2019 average

• HDPE will remain between $0.40 and $0.45/pound

Although this is a simple example, the facts and assumptions have clearly changed since the beginning of the year. Does your team know this? Have you communicated your understanding of the new environment? Have you re-looked your plan that you will follow for the rest of the year based on the new facts and assumptions?

Revisiting your facts and assumptions are critical for establishing shared understanding in the team and constructing a feasible plan to move your company forward no matter what the challenges.