joint business plan objectives

Joint Business Plan (JBP): Benefits, Best Practices & Objectives

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Last Updated on November 28, 2023 by Arif Chowdhury

Imagine two retail brands, each with their own unique strengths and market presence. Now picture the joint business venture, with two partnering business partners, joining forces to conquer a new market together through joint ventures. This is the power of partnering with other teams in a company – a joint business plan , where executive summaries are created to outline shared goals and maximize potential.

Collaboration is vital in today’s competitive industry landscape. By forming joint ventures, companies can pool their resources, expertise, and networks to unlock new opportunities, expand their reach, and drive growth like never before.

Joint ventures allow companies to collaborate and create stronger teams , leading to increased success. A joint business plan serves as the blueprint for this collaborative venture, outlining key objectives, strategies, and tactics that both parties will execute together.

A well-crafted joint business plan typically includes an executive summary that outlines the purpose and scope of the collaboration. It also details specific marketing initiatives such as promotions or product launches aimed at capturing the target market’s attention. It covers aspects like distribution channels, branding efforts, and sales projections to ensure alignment between both parties.

In this blog post series on joint business plans, we will explore the importance of collaboration in driving success for retailers and companies in today’s fast-paced retail industry. Collaboration is crucial for the success of ventures in the retail industry.

We will delve into the key components of an effective joint business plan and provide real-life examples to illustrate its impact. So buckle up as we embark on this exciting journey towards collaborative success!

Benefits of implementing a joint business plan

Implementing a joint business plan can bring numerous benefits to retailers and companies involved in the venture. Let’s explore some of these advantages in detail:

1. Increased Alignment and Synergy between Partners

One of the key benefits of implementing a joint business plan is the increased alignment and synergy between partners. When all parties in a joint venture are working towards a shared goal, it becomes easier to align joint venture strategies , joint venture objectives, and joint venture activities.

This alignment fosters collaboration and teamwork in the venture, allowing partners to leverage each other’s strengths and expertise.

• Better coordination between teams.
• Shared vision leads to improved decision-making.
• Enhanced trust and mutual understanding.

Example: Imagine two companies collaborating on a marketing campaign. With a joint venture business plan in place, both companies can align their messaging, target audience, and promotional activities for maximum impact.

2. Enhanced Communication and Coordination

Another significant benefit of a joint business plan is the improvement in communication and coordination among partners.

Clear channels of communication are established, ensuring that information flows seamlessly between all parties involved. This enhanced communication enables faster problem-solving, timely decision-making, and efficient resource allocation.

• Regular meetings facilitate open dialogue.
• Improved sharing of information and knowledge.
• Quick resolution of conflicts or issues.

Example: In a joint business plan between a manufacturer and distributor, regular communication helps them stay updated on market trends, customer feedback, and inventory levels. This enables them to make informed decisions regarding production volumes, delivery schedules, and product promotions.

3. Improved Resource Allocation and Cost Optimization

Implementing a joint business plan allows partners to optimize resource allocation effectively. By pooling resources together strategically, partners can reduce duplication of efforts while maximizing efficiency.

This collaborative approach also helps in identifying cost-saving opportunities by streamlining processes or leveraging economies of scale.

• Shared resources lead to reduced costs.
• Elimination of redundant activities.
• Efficient use of available assets.

Example: Two companies in the logistics industry can collaborate on a joint business plan to optimize their transportation routes, thereby reducing fuel costs, minimizing delivery times, and maximizing the utilization of their fleets.

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Best practices for successful joint business planning

1. establishing clear goals and objectives.

To ensure a successful joint business plan, it is crucial to establish clear goals and objectives . This means clearly defining what you want to achieve together with your partner or stakeholders. By setting specific targets, you can align your efforts towards a common purpose.

One way to do this is by using category management principles. This involves analyzing market trends, consumer behavior, and competitive landscape to identify opportunities for growth. By understanding the category dynamics, you can develop strategies that capitalize on market trends and consumer preferences.

2. Regular Communication and Feedback Among Stakeholders

Effective communication is key in any collaborative effort, including joint business planning. Regularly communicating with your partners and stakeholders helps maintain alignment and fosters a sense of shared responsibility.

By providing feedback throughout the planning process, you can address any issues or concerns promptly. This allows for adjustments to be made in real-time, ensuring that everyone remains on track towards achieving their goals.

3. Creating a Structured Timeline with Defined Milestones

A structured timeline with defined milestones is essential for keeping joint business planning on track. Breaking down the plan into smaller, manageable tasks helps ensure progress is made consistently.

Consider creating a Gantt chart or project timeline that outlines key activities, deadlines, and responsible parties. This visual representation provides clarity on the sequence of tasks and allows for better coordination among team members.

Establishing milestones helps measure progress along the way. Celebrating these achievements boosts morale and keeps everyone motivated throughout the planning process.

4. Developing a Win Strategy

A win strategy focuses on identifying how both parties involved can benefit from the joint business plan. It aims to create mutually beneficial outcomes that drive growth for all stakeholders.

When developing a win strategy, consider factors such as market share gains, revenue growth opportunities, cost savings through economies of scale, or access to new markets or distribution channels.

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Evaluating the progress of a joint business plan

To ensure the success of a joint business plan, it is crucial to regularly evaluate its progress. This evaluation allows you to monitor key performance indicators (KPIs), conduct reviews and assessments, and make necessary adjustments to stay on track.

Monitoring Key Performance Indicators (KPIs)

Monitoring KPIs is an essential step in evaluating the progress of a joint business plan. These performance metrics provide valuable insights into the effectiveness of your plan and help you gauge its success. By tracking KPIs, such as sales growth, revenue generated, or customer satisfaction levels, you can assess whether your joint business plan is delivering the desired results.

Some key performance indicators that are commonly monitored include:

• Sales performance: Keep an eye on how well your products or services are selling. Track factors like sales volume, average transaction value, and conversion rates.
• Promotional effectiveness: Evaluate the impact of marketing campaigns and promotions on driving sales. Measure metrics like click-through rates, website traffic generated from promotions, or coupon redemption rates.
• Product performance: Assess how well specific products are performing in terms of sales numbers, customer feedback, or market share gained.
• Customer satisfaction: Monitor customer feedback and ratings to determine if your joint business plan is meeting their expectations.

Conducting Regular Reviews and Assessments

Regular reviews and assessments are vital for evaluating the progress of a joint business plan. Schedule periodic meetings with all stakeholders involved in the partnership to discuss achievements, challenges faced, and areas that require improvement.

These reviews provide an opportunity to analyze data collected from KPI monitoring and gather insights from each party’s perspective.

During these sessions:

• Share research findings: Present any relevant market research or consumer insights that can inform decision-making processes.
• Discuss results achieved: Review the outcomes achieved so far based on set goals and objectives outlined in the joint business plan.
• Identify bottlenecks and risks: Identify any obstacles or risks that may be hindering progress and brainstorm potential solutions.
• Collaborate on adjustments: Work together to determine necessary adjustments or modifications to the joint business plan, ensuring it remains aligned with changing market dynamics.

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Making Necessary Adjustments to Stay on Track

Flexibility is key when evaluating the progress of a joint business plan. As you monitor KPIs and conduct reviews, you may identify areas where adjustments are required to maximize success. Making these necessary adjustments allows you to adapt your strategies, overcome challenges, and capitalize on emerging opportunities.

Consider the following steps for making adjustments:

• Analyze data: Examine the data collected from KPI monitoring and reviews to identify trends or patterns that require attention.
• Identify areas for improvement: Pinpoint specific areas within the joint business plan that need adjustment based on performance gaps or changing market conditions.
• Collaborate with partners: Engage in open discussions with your partners to gather their input and insights regarding potential adjustments.
• Develop action plans: Create detailed action plans outlining the necessary steps to implement changes effectively.
• Monitor results: Continuously monitor the impact of these adjustments on performance metrics and assess their effectiveness.

By regularly evaluating the progress of your joint business plan, monitoring KPIs, conducting reviews, and making necessary adjustments, you can enhance its chances of success. This iterative process ensures that your joint business plan remains aligned with evolving market dynamics and increases your likelihood of achieving mutually beneficial outcomes.

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Finding the right partner for joint business planning

Identifying the ideal partner for joint business planning is crucial to the success of any collaborative endeavor .

It requires careful consideration of various factors, including complementary strengths and expertise, compatibility in terms of values and culture, as well as conducting due diligence before entering into an agreement.

Identifying Complementary Strengths and Expertise

When seeking a business partner for joint business planning, it’s essential to identify individuals or organizations with complementary strengths and expertise. This means looking for partners who possess skills and resources that complement your own.

For example, if you’re a manufacturer looking to expand your distribution channels, partnering with a retailer or distributor who has established relationships with consumers can be highly advantageous.

Consider the following when assessing complementary strengths:

• Look for partners who excel in areas where you may have limitations or gaps.
• Seek out individuals or organizations that bring unique perspectives and capabilities to the table.
• Evaluate potential partners based on their track record of success in relevant areas.

Assessing Compatibility in Terms of Values and Culture

In addition to complementary strengths, compatibility in terms of values and culture is vital for a successful partnership. When embarking on joint business planning, you’ll be working closely together towards shared goals.

Therefore, aligning values and having a similar organizational culture can foster effective collaboration.

Here are some considerations when assessing compatibility:

• Evaluate whether your partner shares similar core values such as integrity, transparency, and customer-centricity.
• Assess whether there is alignment in terms of long-term objectives and vision.
• Consider how well your respective cultures will blend together to create a harmonious working relationship.

Conducting Due Diligence Before Entering into an Agreement

Before finalizing any partnership agreement, it’s crucial to conduct thorough due diligence. This involves gathering information about potential partners to ensure they are reliable, trustworthy, financially stable, and have a good reputation within their industry.

Here are some steps to consider during the due diligence process:

• Research: Conduct extensive research on potential partners, including their history, financials, and reputation.
• References: Reach out to their existing or past business partners to gather insights into their reliability and performance.
• Legal Assistance: Engage legal professionals to review contracts and agreements to ensure they protect your interests.
• Pilot Projects: Consider starting with small-scale pilot projects to test compatibility before committing to a long-term partnership.

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Maintaining a common vision and strategic objectives

To ensure the success of a joint business plan, it is crucial to maintain a common vision and strategic objectives with your partner. This involves aligning long-term goals and ensuring a shared understanding of strategic priorities. By continuously reinforcing the importance of collaboration, you can foster a strong partnership that drives mutual growth.

Aligning Long-Term Goals with the Partner’s Vision

When embarking on a joint business plan, it is essential to align your objectives with your partner’s vision.

This alignment ensures that both parties are working towards a common goal and have a clear understanding of each other’s expectations. By taking the time to understand your partner’s vision, you can identify areas where your goals intersect and collaborate effectively.

Ensuring Shared Understanding of Strategic Priorities

In order to execute a successful joint business plan, it is vital to establish shared understanding of strategic priorities.

This involves open communication and regular discussions about the strategies and tactics that will be employed to achieve desired outcomes. By aligning your strategies with those of your partner, you can create synergy and maximize the impact of your joint efforts.

Continuously Reinforcing the Importance of Collaboration

Collaboration is key in any joint business plan, as it allows for the pooling of resources, expertise, and networks. To maintain effective collaboration throughout the partnership, it is important to continuously reinforce its importance.

This can be done through regular check-ins, open communication channels, and providing support where needed. By fostering an environment that encourages collaboration, you can build trust and strengthen the relationship with your partner.

Maintaining a common vision and strategic objectives in a joint business plan requires strong leadership and effective strategy execution. It involves aligning long-term goals with your partner’s vision, ensuring shared understanding of strategic priorities, and continuously reinforcing the importance of collaboration.

You raise the chance of reaching win-win results if you keep this alignment throughout the collaboration. Recall that effective collaborative company planning needs constant communication and a dedication to collaborating to achieve shared objectives.

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Resources to help you get started with joint business planning

Creating a joint business plan can seem like a daunting task, but fear not! There are plenty of resources available to assist you in this process.

Let’s explore some of these resources that can help you get started with joint business planning.

Online Templates for Creating Joint Business Plans

One helpful resource is the availability of online templates specifically designed for creating joint business plans. These templates provide a structured framework that allows you to outline your goals, strategies, and actions in a clear and organized manner.

With pre-defined sections and prompts, these templates make it easier for you to navigate through the planning process.

• Saves time and effort by providing a ready-made structure.
• Ensures consistency and completeness in your joint business plan.
• Provides guidance on what information to include in each section.
• May lack customization options for unique business needs.
• Requires careful adaptation to fit your specific partnership dynamics.

Industry-Specific Case Studies Showcasing Successful Collaborations

Another valuable resource is industry-specific case studies that showcase successful collaborations between businesses. These case studies offer real-life examples of how joint business planning has been implemented effectively across various industries.

By examining these success stories, you can gain insights into best practices, challenges faced, and strategies employed by others in similar partnerships.

• Offers practical examples that demonstrate the benefits of joint business planning.
• Provides inspiration and ideas for implementing collaborative strategies.
• Helps identify potential pitfalls and ways to overcome them.
• May not directly align with your unique partnership situation.
• Limited availability of industry-specific case studies may restrict options for certain sectors.

Expert Guides on Effective Partnership Management

To further support your joint business planning efforts, expert guides on effective partnership management are available as well. These guides provide comprehensive advice on building strong partnerships, fostering collaboration, managing conflicts, and maximizing mutual benefits.

They offer valuable insights from experienced professionals who have navigated the complexities of joint business planning.

• Offers expert advice and proven strategies for successful partnership management.
• Provides step-by-step guidance on various aspects of joint business planning.
• Helps you avoid common pitfalls and challenges associated with partnerships.
• Requires careful adaptation to your specific partnership dynamics.
• May not address industry-specific nuances or challenges.

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Frequently Asked Questions (FAQs)

Can any type of business benefit from joint business planning.

Absolutely! Joint business planning is applicable across industries and sectors. Whether you’re a small startup or an established corporation, collaborating with another company through joint business planning can bring numerous benefits such as increased market share, cost savings through shared resources, access to new customer segments, enhanced product offerings, and improved overall competitiveness.

How do I find the right partner for joint business planning?

Finding the right partner for joint business planning starts with identifying companies that complement your strengths and fill gaps in your capabilities. Look for organizations with similar values and strategic objectives but different areas of expertise that can add value to your offerings.

Networking events, industry conferences, trade associations, online platforms are great places to connect with potential partners. Take the time to build relationships, assess compatibility, and ensure alignment before diving into joint business planning.

What are some common challenges in joint business planning?

While joint business planning offers numerous benefits, it can also come with its fair share of challenges. Common obstacles include differences in organizational culture and decision-making processes, conflicting priorities and objectives, resource allocation issues, and communication breakdowns.

The key to overcoming these challenges is open and transparent communication, mutual respect, and a willingness to compromise when necessary.

How do you evaluate the progress of a joint business plan?

Evaluating the progress of a joint business plan requires establishing clear metrics and milestones at the outset. Regularly review these indicators to gauge performance against targets.

Maintain open lines of communication with your partner to address any concerns or roadblocks that may arise along the way. By regularly assessing progress and making necessary adjustments, you can ensure that your joint business plan remains on track towards achieving its objectives.

Are there any resources available to help me get started with joint business planning?

Yes! There are several resources available to assist you in getting started with joint business planning. Industry publications, online forums, webinars, and workshops often provide valuable insights and best practices for successful collaboration.

Consulting firms specializing in strategic partnerships can offer guidance tailored to your specific needs. Don’t hesitate to tap into these resources as you embark on your joint business planning journey.

In today’s competitive business landscape, collaboration is key to success. That’s where joint business planning comes in. By partnering with another company and aligning your goals and strategies, you can unlock a whole new level of growth and profitability. Joint business planning allows you to pool resources, share expertise, and leverage each other’s networks to achieve mutually beneficial outcomes.

But it’s not just about the immediate gains. Joint business planning sets the foundation for long-term partnerships built on trust and shared vision. It enables you to navigate challenges together, adapt to market changes swiftly, and seize opportunities that may have been out of reach individually. By working hand in hand with a like-minded partner, you can amplify your impact and create a powerful synergy that propels both businesses forward.

Ready to tap into the power of joint business planning? Start by evaluating potential partners who align with your values and objectives. Establish open lines of communication, set clear expectations, and define measurable goals together. Remember, successful joint business planning requires ongoing collaboration and commitment from both parties. With the right partner by your side, there’s no limit to what you can achieve together.

What Is a Joint Business Plan (JBP)? Benefits & Best Practices

By 8th & Walton | on October 2, 2022

From small businesses to large corporations, the most successful companies begin and stick with a clear business plan. When a company defines its goals, lays out a path to meet objectives, and agrees on financial spending and expectations, it creates a shared vision and accountability to succeed.

Many businesses experience greater growth when partnering with another business. In the supplier and retailer relationship, both parties working independently would be detrimental. To create a mutually beneficial partnership, they must begin by defining each company’s responsibilities, expectations, and needs in a joint business plan.

What Is a Joint Business Plan?

A joint business plan (JBP) is the collaborative process of planning between a retailer and a supplier in which both companies agree on short-term and long-term objectives, financial goals, growth, and shared business initiatives for profitability.

Joint business planning focuses on agreeing on common objectives and aligning on a single goal or set of goals. The companies in the joint business plan must work together to accomplish a shared vision.

What Is the Purpose of a Joint Business Plan?

For retailers and suppliers, having a joint business plan can create a win-win strategy in growing consumer sales. An effective JBP allows suppliers to build stronger relationships with their retailers so both parties can mutually support and benefit from each other.

When a retailer and supplier recognize each others’ needs and agree on common goals, they can share insights to support each other and improve sales, customer growth, and processes.

How Does a Joint Business Plan Work?

Two companies can come together with a joint business plan because they have one thing in common: a shared shopper . Whether it is a supplier partnering with a retailer or a children’s clothing company partnering with a toy manufacturer, having the same target audience is the first element that brings the companies together.

The companies considering a joint business venture should then share their individual business plans and discuss their mutual growth opportunities. This is where the general goals and areas of support can be defined. Specific tactics and category strategies can also be fleshed out in early discussions before moving to the formal process.

Once both companies are in agreement that the partnership will be mutually beneficial, the joint business plan can be created. Formal contracts are drawn up, approved, signed, and the plan is ready to be executed. Periodic reviews and necessary adjustments to the JBP are recommended as needed.

Benefits of Joint Business Planning

Why enter into a joint business plan with another company? The benefits can be not only financial but educational as well:

• Aligning goals.  For a retailer/supplier joint business plan, being aligned on goals creates clarity on all other areas of the business. Defining expectations on all areas from marketing to supply chain to sales goals leaves minimal area for questions. Agreeing on goals, no matter how and when they are measured, keeps both parties accountable and benefits both to meet expectations.
• Shared resources and exposure. Partnering with another company can bring a new audience and a new platform. In a simple retailer/supplier joint business plan, the retailer can introduce the supplier’s product to its core shoppers. At the same time, shoppers loyal to the supplier’s product or brand can be introduced to the retailer’s store and website for the first time.
• Greater return on investment.  By partnering with another company with a shared vision, the benefits above will provide a better ROI when the plan is executed correctly.

Joint Business Planning Best Practices

How can companies ensure their joint business plan is a good fit for both parties? These are some best practices to include in preparation for entering into the partnership:

1. Align Internally First

Before entering into a joint business plan with another company, all members of the business must agree on the benefits of the partnership. Recognizing the advantages and seeing the bigger picture is key. When employees are in alignment within the company, it will be easier to align with the partnering company on the shared vision of the joint business plan.

2. Create the Plan Together

When two businesses enter into a partnership, the joint business plan should not be built by only one. A company sending another a complete plan or just a form to fill out is not collaborative. Both companies need to build the plan from the ground up. Collaborating in the development of the joint business plan is just as important as executing the plan itself.

3. Set Specific Goals

Expectations for success in the partnership need to be specific. “We need to grow sales” or “production costs will decrease” are good goals, but too general. Keep specifics in your plan that are as specific as they are realistic. If one company wants to grow sales by 40% in the next quarter, this should be spelled out in the joint business plan so get early support or push back from the other company.

4. Assign a Metric to Each Goal

Putting a metric with a goal keeps the company accountable to the mission of the joint business plan. For example, if the goal is to grow sales by 40% in the next quarter, it would be wise to assign a weekly growth metric. If the metric is too low over a few weeks, the plan shows that action needs to be taken immediately in order to meet the 40% sales growth goal for the quarter.

5. Communicate Responsibility and Accountability

The joint business plan is the place to eliminate all guesswork. If Company A is responsible for providing labels to Company B, be very specific about the responsible parties. Clarify that the packaging coordinator of Company A will mail the labels to the warehouse manager of Company B on the first of the month.

6. Include Risks and Solutions

Planning for setbacks is key to planning for success. The joint business plan should include any possible risks or obstacles foreseen by either company. Having solutions in place for multiple scenarios makes the plan easier to execute.

7. Constantly Evaluate the Relationship

Joint business plans work better with trust, mutual respect, and a great working relationship. Keeping the relationship healthy between the companies and individuals relying on each other brings more success to the overall plan. Monitor the relationship periodically and work to resolve conflicts as they arise.

Joint Business Plans at Walmart

Walmart works with its suppliers to create plans for sales and category growth. The company relies on suppliers to bring insights to the table to spot trends and get in front of potential gaps in the business.

Back in 2011, Walmart created a joint business plan with Proctor and Gamble to pick up lost sales in air fresheners. This category was down over 2% across the chain, but P&G brought insights to Walmart on how consumers were purchasing throughout the industry.

Consumers had no problem going to Walmart for aerosol sprays for under a dollar, but would then go to specialty stores to purchase expensive candles in the same scent. Through communicating through the joint business plan, Walmart was able to create excitement around higher price-point items and show the shared shopper they could purchase the extra items in one store.

Positive business collaborations can be extremely beneficial in growing retail sales. Two companies sharing a common vision can build on each other’s best practices and support each other to mutually win at the register.

Suppliers looking for support in their Walmart business have found great collaboration with 8th & Walton. Our team of experts supports suppliers to improve reporting, analytics, supply chain, accounting, and more. To begin a great collaboration with us, request a free 15-minute consultation this week.

About the Author

8th & Walton consists of retail industry experts with a combined 200+ years of Walmart and Walmart supplier experience. Having helped hundreds of CPG companies in their efforts to be better supplier partners to the world's most influential retailer, the 8th & Walton editorial team prides itself on being a go-to resource for Walmart supplier news and insights.

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A Guide to Joint Business Planning Best Practices

• March 21, 2024
• No Comments

Joint business planning is a crucial aspect of fostering successful collaborations between companies. In today’s dynamic business environment, strategic partnerships have become increasingly prevalent, making it essential for organizations to adopt effective joint business planning best practices. This article will explore the key principles and strategies that contribute to successful joint business planning, providing insights into how businesses can optimize their collaborative efforts for mutual growth and success.

Table of Contents

The Importance of Joint Business Planning in Today’s Market

In an era defined by rapid change and increasing interconnectivity, the significance of joint business planning cannot be overstated. This section explores how businesses can gain a competitive edge, foster shared vision, and unlock mutual growth opportunities through effective collaborative strategies.

Competitive Advantage and Shared Vision

Joint business planning serves as a catalyst for companies seeking a competitive advantage in the market. When organizations come together to strategically plan and align their strengths, they create a synergy that surpasses individual capabilities. This subsection delves into how collaborative efforts can amplify competitiveness by leveraging the unique strengths of each partner.

A shared vision is the cornerstone of successful partnerships. This subsection emphasizes the importance of establishing a common understanding of long-term goals and objectives. By aligning visions, businesses can enhance cooperation, minimize conflicts, and work towards a unified purpose. Effective joint business planning ensures that all stakeholders are on the same page, promoting a cohesive approach to achieving shared goals.

Mutual Growth Opportunities and Win-Win Strategy

Joint business planning creates a framework for identifying and capitalizing on mutual growth opportunities. This involves exploring synergies between partners, uncovering complementary strengths, and strategically leveraging resources. This subsection explores how collaborative planning facilitates the identification of avenues for joint growth, leading to mutually beneficial outcomes.

The essence of successful joint business planning lies in adopting a win-win strategy. This involves creating scenarios where all parties involved stand to gain, fostering a collaborative environment based on trust and reciprocity. This subsection delves into the principles of a win-win approach, showcasing how it not only enhances the success of partnerships but also builds a foundation for long-term, sustainable relationships.

Core Elements of Effective Joint Business Planning

Collaboration is only as strong as the foundation it is built upon. This section delves into the essential elements that underpin successful joint business planning, emphasizing the importance of aligning business strategies, sharing shopper and marketplace insights, and cultivating collaborative working relationships.

Aligning Business Strategies for Success

Central to effective joint business planning is the alignment of business strategies. This involves harmonizing the goals, tactics, and overarching plans of collaborating entities. By ensuring strategic congruence, partners can maximize the impact of their combined efforts. This subsection explores the intricacies of strategic alignment and how it forms the bedrock for successful joint business planning.

Effective joint business planning goes beyond immediate gains; it incorporates a holistic approach that integrates both short-term wins and long-term objectives. This subsection discusses how businesses can synchronize their timelines and milestones to create a comprehensive strategy that facilitates sustainable success.

Shared Shopper and Marketplace Insights

An integral aspect of joint business planning is the sharing of shopper insights. By pooling data and understanding consumer behavior and preferences, partners can tailor their strategies to meet evolving market demands. 

This subsection delves into the importance of shared shopper insights and how they contribute to more informed decision-making in collaborative endeavors.

In a dynamic marketplace, staying ahead requires constant awareness. This subsection explores how joint business planning encourages the exchange of marketplace intelligence. Partners can adapt to changing trends, capitalize on emerging opportunities, and navigate challenges more effectively by combining their knowledge and resources.

Collaborative Working Relationships

At the heart of effective joint business planning is the cultivation of collaborative working relationships. Trust and open communication form the backbone of successful partnerships. This subsection explores strategies for building trust among partners and fostering an environment where transparent communication is prioritized.

Collaboration often involves navigating unforeseen challenges and capitalizing on unexpected opportunities. This subsection discusses the importance of flexibility and responsiveness in joint business planning, emphasizing the need for partners to adapt and evolve together in a dynamic business landscape.

How to Create an Effective Joint Business Plan

In the pursuit of successful collaborative ventures, crafting an effective joint business plan is paramount. 

This section outlines the key steps involved in creating a robust plan, covering aspects such as setting joint objectives, resource allocation, and addressing legal considerations.

1. Setting Joint Objectives and Account Management

The foundation of any joint business plan lies in establishing clear and achievable objectives. This subsection explores the importance of defining shared goals, aligning strategies, and ensuring that all stakeholders are committed to a common purpose. Clear objectives provide a roadmap for collaborative efforts, guiding partners toward mutual success.

Effective account management is crucial for the seamless execution of joint business plans. This involves assigning responsibilities, creating accountability structures, and establishing communication channels. 

Delving into the intricacies of strategic account management, this subsection highlights how a well-organized approach contributes to the overall success of collaborative initiatives.

2. Resource Allocation and Shared Resources

Resource allocation is a critical aspect of joint business planning, ensuring that both parties contribute and benefit equitably. 

This subsection explores strategies for optimizing the allocation of financial, human, and technological resources. By balancing contributions, businesses can enhance efficiency and maximize the impact of their collaborative efforts.

Collaborative ventures often involve the pooling of resources to achieve common goals. This subsection delves into the concept of shared resources, emphasizing how partners can leverage each other’s strengths to overcome challenges and capitalize on opportunities. 

Efficient utilization of shared resources enhances the overall effectiveness and sustainability of joint initiatives.

3. Formal Contracts and Legal Aspects

A crucial step in creating an effective joint business plan is the establishment of formal contracts. This subsection explores the importance of clearly defined agreements, covering aspects such as roles and responsibilities, dispute resolution mechanisms, and exit strategies. 

Robust contractual frameworks provide a solid foundation for trust and transparency between collaborating entities.

Navigating the legal landscape is essential for the success and longevity of joint business ventures. 

This subsection delves into the legal aspects involved in collaborative efforts, addressing issues such as intellectual property, confidentiality, and compliance. Understanding and addressing legal considerations from the outset safeguards the interests of all parties involved.

Best Practices for Joint Business Planning Execution

Effective execution is the linchpin of successful joint business planning. This section explores best practices that organizations can adopt to ensure the seamless implementation of collaborative strategies, including the use of performance metrics, monitoring, accountability, and value chain analysis.

1. Performance Metrics and KPIs

Setting and monitoring performance metrics are essential elements of joint business planning execution. This subsection delves into the process of defining key performance indicators (KPIs) that align with the shared objectives of the collaborative venture. 

By establishing measurable benchmarks, organizations can gauge the success of their efforts and make informed decisions to optimize performance.

Performance metrics should not be static; instead, they should be subject to continuous evaluation. This subsection emphasizes the importance of regularly assessing KPIs, analyzing performance data, and adapting strategies based on the evolving needs of the collaboration. 

A dynamic approach to performance measurement ensures that joint business plans remain responsive to changing market conditions.

2. Monitoring and Accountability

Effective monitoring is a cornerstone of successful joint business planning execution. This subsection explores proactive monitoring strategies, including the use of technology, regular communication channels, and real-time data analysis. 

By staying vigilant and responsive, organizations can identify potential issues early on and take corrective actions to maintain the trajectory toward shared goals.

Clear accountability structures are vital for the success of collaborative ventures. This subsection delves into the importance of defining roles, responsibilities, and expectations within the partnership. 

Establishing accountability structures fosters a sense of ownership among all stakeholders, ensuring that each party contributes actively to the joint business plan’s execution.

3. Value Chain Analysis and Multi-functional Execution

Conducting a value chain analysis is a best practice that can significantly enhance joint business planning execution. This subsection explores how organizations can identify value-creation opportunities at each stage of the collaboration. 

By optimizing the value chain, partners can streamline processes, reduce costs, and deliver enhanced value to customers.

Collaborative ventures often involve the integration of multiple functions within each organization. This subsection discusses the importance of multi-functional execution, emphasizing the need for seamless coordination across departments. 

By breaking down silos and promoting cross-functional collaboration, organizations can ensure the holistic implementation of joint business plans.

Creating Value Through Customer Focus

In today’s customer-centric business landscape, creating value for consumers is at the forefront of successful joint business planning. 

This section explores strategies for placing customers at the center of collaborative efforts, enhancing consumer sales, and elevating the overall customer experience.

How to Create Value for Customers Through Joint Business Planning

A fundamental step in creating value through joint business planning is gaining a deep understanding of customer needs and preferences. This subsection explores how organizations can leverage market insights, customer feedback, and data analytics to identify and prioritize customer-centric initiatives. 

By aligning collaborative strategies with customer expectations, businesses can create offerings that resonate with their target audience.

Effective joint business planning involves co-creating solutions that address specific customer pain points. This subsection emphasizes the importance of collaboration in ideation and product development, showcasing how partnerships can bring together diverse perspectives and expertise to deliver innovative solutions. 

Co-created offerings not only meet customer needs but also differentiate the collaborative venture in the market.

Consumer Sales and Customer Experience

Joint business planning can significantly impact consumer sales by optimizing distribution channels, expanding market reach, and aligning sales strategies. This subsection explores how organizations can leverage their collaborative efforts to boost consumer sales. Whether through joint marketing initiatives, bundled offerings, or cross-promotions, aligning sales strategies enhances the overall success of the partnership.

Customer experience is a critical differentiator in today’s competitive market. This subsection delves into how joint business planning can be structured to elevate the customer experience. 

From seamless transactions to personalized interactions, collaborative ventures can enhance every touchpoint in the customer journey. Focusing on customer satisfaction not only builds loyalty but also contributes to the long-term success of the collaborative partnership.

In conclusion, the journey through the intricacies of joint business planning best practices has highlighted the pivotal role that effective collaboration plays in today’s dynamic business environment. 

From aligning business strategies and setting joint objectives to executing plans with a customer-centric focus, the success of collaborative ventures hinges on a thoughtful and strategic approach.

Frequently Asked Questions (FAQs)

What are the key metrics to measure the success of a joint business plan.

Measuring the success of a Joint Business Plan involves tracking key metrics such as revenue growth, market share expansion, customer satisfaction, cost savings, return on investment (ROI), and adherence to compliance and risk mitigation. 

These metrics provide a comprehensive evaluation of the collaborative venture’s impact on both financial and operational aspects, ensuring a holistic assessment of the plan’s effectiveness.

How do you resolve conflicts during the Joint Business Planning process?

Resolving conflicts during the Joint Business Planning process requires an open communication approach, identification of root causes, and, when needed, the involvement of a neutral third party for mediation. 

A clear definition of roles and responsibilities, the establishment of conflict resolution protocols within the joint business plan, and a focus on shared objectives contribute to addressing conflicts promptly and fostering a collaborative environment.

What role do executive sales leaders play in Joint Business Planning?

Executive sales leaders play a pivotal role in Joint Business Planning by strategically aligning sales efforts with overall business goals, contributing to resource allocation discussions, cultivating relationships with key stakeholders, providing market insights, and overseeing the performance of sales teams. 

Their involvement ensures that sales strategies complement the collaborative venture’s objectives, driving success in terms of revenue and market impact.

How often should a Joint Business Plan be reviewed and updated?

The frequency of reviewing and updating a Joint Business Plan varies but commonly involves quarterly reviews for timely adjustments based on market changes and annual updates for comprehensive reassessment of long-term goals. Additionally, trigger events such as major market shifts or significant internal changes may prompt unscheduled reviews. 

Adapting the frequency based on the dynamic nature of the business environment ensures the plan remains relevant and responsive to evolving conditions.

Are there any software tools that can facilitate Joint Business Planning?

Various software tools facilitate Joint Business Planning, offering features such as collaboration, data analysis, project management, and document sharing. Platforms like Microsoft Teams, Slack, or Asana enhance communication, while tools such as Tableau or Power BI aid in data analysis.   Project management software like Trello or Jira helps in planning and tracking progress, and CRM systems like Salesforce or HubSpot centralize customer interactions and sales activities. The selection of tools depends on the specific needs and preferences of the collaborating organizations.

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• " class="font-normal text-gray-700 hover:underline" >What is JBP in marketing?
• " class="font-normal text-gray-700 hover:underline" >What are the benefits of JBP?

JBP Objectives

Levels of jbp.

• " class="font-normal text-gray-700 hover:underline" >How do I prepare for a jbp marketing?

JBP helps customers goods suppliers and eCommerce store owners to build good relationships that benefit both and improve the eCommerce experience.

What is JBP in marketing?

JBP means  Joint Business Planning. It's like shared business planning , JBP is building winning relationships that benefit both suppliers as well as sellers and improve the good experience for consumers through clear insights.

Basically, JBP is an alignment process between the goods suppliers and sellers that produce breakthrough business plans. The main objective of JBP is to set the alignment of goals and some action plans between the two collaborative parties.

For sellers and suppliers, having a  jbp   marketing  can produce a win-win strategy in growing sales . An effective joint business plan allows suppliers to build stronger relationships with their sellers so both partners can mutually support and take benefit from each other.

When a seller and supplier understand each other's needs and agree on common objectives, they can share insights to support each other and that helps to improve conversion , product growth, and processes.

What are the benefits of JBP?

Some benefits that actually helpful while using the  jbp   marketing  model can be not only financial but educational as well.

Alignment: JBP being aligned on objectives creates clarity on all other areas of the business for both partners. Agreeing on the same goals, no matter how and when they are calculated, keeps both seller and supplier accountable and benefits both to meet expectations.

Exposure: Partnering with another business can bring new consumers and a new platform. In a simple seller/supplier JBP, the seller can sell the supplier’s product to its potential shoppers. At the same time, shoppers loyal to the supplier’s product can be visited the seller's eCommerce website for the first time.

ROI: By partnering with another business with a common goal, the benefits above will provide a better return on investments for both parties when the plan is executed correctly.

JBP is designed to deliver shared benefits or objectives, mutual accountability, and a perfect work strategy.

• Shoppers profile creation
• Time to time opportunity identification
• The alignment process focused on the same goal
• JBP including Scorecards and Strategies for both
• Mutually understanding joining plan development
• Understanding the seller Economics
• Differentiate JBP and Align It
• Maintain good contact with customers

There are mainly three levels of JBP present.

1. Foundational Level: In this aligns with basic metrics of sales, expenses, profit ,

etc. Plan for upcoming new product introductions and necessary adjustments, etc.

2. Advanced Level: Deeper planning. Foundation Level + more complex analysis such as supply chain/logistics efficiencies, and shopper marketing process.

3. Leadership Level: This is the highest level of commitment. Advanced Level + significant investment

in high-return elements of joint value generation such as new product innovation, equity building, and joint products.

How do I prepare for a jbp marketing?

Planning for a joint business plan involves several important steps that can greatly contribute to its success. We want to make sure that we cover all the necessary aspects to ensure a successful outcome.

One important thing to consider is to conduct comprehensive research on the market and the potential partners involved. This research can greatly assist in understanding the goals, objectives, and expectations of all parties involved, as well as identifying any possible challenges or risks that may arise during the planning process.

It is of utmost importance to establish friendly and open lines of communication with our partners in order to foster effective collaboration and coordination. This can be achieved by scheduling regular meetings, creating shared document repositories, and implementing clear protocols for decision-making and problem-solving.

Moreover, it would be really helpful to create a detailed timeline and action plan so that we can stay organized and keep track of all the tasks and activities needed for the joint business plan.

It would be really great if this plan could include some specific milestones and deadlines. That way, we can all stay on track and hold ourselves accountable.

Finally, it is crucial to consistently assess and review the progress of the joint business plan, making any necessary adjustments and improvements along the way to ensure its successful implementation.

By following these steps and putting in enough time and effort into the preparation process, you can significantly improve the likelihood of a successful joint business plan.

Frequently asked questions

A successful Joint Business Plan requires each party to have a clear understanding of the goals, business, and customer requirements of the others. A great JBP isn't just about the end result, but also about the process and strategy behind it.

It involves careful analysis, thorough research, effective communication, and strategic decision-making. A great JBP takes into account various aspects like market trends, customer needs, competition, and financial projections.

A joint business plan typically covers several aspects to make sure that a collaborative business venture is successful. These aspects include:

• A clear vision and mission statement
• A detailed market analysis
• A comprehensive marketing strategy
• A thorough competitor analysis
• A well-defined target audience
• A comprehensive financial plan
• A detailed implementation plan
• A robust evaluation and monitoring framework

In simple terms, a JBP partnership refers to a collaborative agreement between two or more businesses to achieve common goals and mutually benefit from the partnership. It involves working together, sharing resources, knowledge, and expertise to make the most out of each other's strengths and increase the chances of success.

Related terms

Taking supplier collaboration to the next level

Companies with advanced procurement functions know that there are limits to the value they can generate by focusing purely on the price of the products and services they buy. These organizations understand that when buyers and suppliers are willing and able to cooperate, they can often find ways to unlock significant new sources of value that benefit them both.

Buyers and suppliers can work together to develop innovative new products, for example, boosting revenues and profits for both parties. They can take an integrated approach to supply-chain optimization, redesigning their processes together to reduce waste and redundant effort, or jointly purchasing raw materials. Or they can collaborate in forecasting, planning, and capacity management—thereby improving service levels, mitigating risks, and strengthening the combined supply chain.

Earlier work has shown that supplier collaboration really does move the needle for companies that do it well. In one McKinsey survey of more than 100 large organizations in multiple sectors, companies that regularly collaborated with suppliers demonstrated higher growth, lower operating costs, and greater profitability than their industry peers (Exhibit 1).

Despite the value at stake, however, the benefits of supplier collaboration have proved difficult to access. While many companies can point to individual examples of successful collaborations with suppliers, executives often tell us that they have struggled to integrate the approach into their overall procurement and supply-chain strategies.

Barriers to collaboration

Several factors make supplier collaboration challenging. Projects may require significant time and management effort before they generate value, leading companies to prioritize simpler, faster initiatives, even if they are worth less. Collaboration requires a change in mind-sets among buyers and suppliers, who may be used to more transactional or even adversarial relationships. And most collaborative efforts need intensive, cross-functional involvement from both sides, a marked change to the normal working methods at many companies. This change from a cost-based to a value-based way of thinking requires a paradigm shift that is often difficult to come by.

The actual value generated by collaborating can also be difficult to quantify, especially when companies are also pursuing more conventional procurement and supply-chain improvement strategies with the same suppliers, or when they are simultaneously updating product designs and production processes. And even when companies have the will to pursue greater levels of supplier collaboration, leaders often admit that they don’t have the skill, lacking the structures they need to design great supplier-collaboration programs, and being short of staff with the capabilities to run them. After all, what great supplier collaboration necessitates is much more than the mere application of a process or framework—it requires the buy-in and long-term commitment of leaders and decision makers.

A shared perspective

To understand more about the factors that hamper or enable supplier-collaboration programs, we partnered with Michigan State University (MSU) to develop a new way of looking at companies’ use of supplier collaboration. The Supplier Collaboration Index (SCI) is a survey- and interview-based benchmarking tool that assesses supplier-collaboration programs over five major dimensions (Exhibit 2).

During 2019, researchers from McKinsey and MSU rolled out the Index in a pilot project involving a dozen leading consumer-goods companies in North America, along with ten to 15 of each company’s strategic suppliers. We collected more than 300 written responses from more than 130 organizations, and conducted in-depth interviews with around 60 buyer and supplier executives. The work provides some important insights on the state of supplier collaboration today, revealing the elements of collaboration that companies and suppliers believe are working well, and the areas that present the greatest challenges.

The results of our consumer-industry benchmark are summarized in Exhibit 3, with average buyer and supplier perceptions of their own collaboration programs rated from one (low) to ten (high) in each of the five dimensions.

Overall, the research reveals close alignment between buyers and suppliers on the relative strength of most dimensions. It also shows a clear drop in perceptions of strength as the discussion moves from theory (strategic alignment) to execution (value creation and sharing, organizational governance).

The in-depth interviews conducted with senior buyer and supplier personnel as part of the SCI data-collection process provide further insights into the challenges companies face in each of the five dimensions, while also revealing some examples of best practices that lower-performing companies can emulate.

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Achieving strategic alignment.

Benchmark participants understood who their strategic suppliers are, although they do not all use formal segmentation approaches to categorize their supply bases. Likewise, suppliers understood their strategic importance to their customers. Buyers and suppliers agreed that there was good alignment on the pursuit of sources of value beyond cost—but also agreed that their efforts to capture these value sources were not always successful.

The first step for an organization is to define what it wants to achieve from its collaboration efforts, and what it needs to do to realize those goals. Internal alignment and commitment by senior managers to ensure appropriate resources are available is also critical. For example, in a quest to develop more sustainable detergents, Unilever partnered with Novozyme—a major supplier of enzymes— to jointly develop new enzyme solutions. The collaboration leveraged each party’s strengths, merging Unilever’s understanding of which types of stains and materials were most relevant with Novozyme’s reagent-optimization capabilities. The partnership resulted in two enzyme innovations that improved product performance, increased market penetration, and allowed the company to target premium-branded competitors. Moreover, the new formulation performed well at lower temperatures, helping customers save energy and reduce CO2 emissions.

Joint business planning

Joint business planning is a collaborative planning process in which the company and its supplier align on short- and long-term business objectives, agree on mutual targets, and jointly develop plans to achieve set objectives (exhibit). It brings a formal approach to collaboration with suppliers and helps to engage stakeholders from different functions in the collaboration effort.

Joint business planning works best when companies have a clear understanding of the strategic suppliers with which they want to engage, and where they have strong core supplier management capabilities in place. The approach can be applied at several levels. At its simplest, joint planning can involve aligning on metrics and value sharing agreements. At its most advanced it can include joint investment to create new sources of value.

Other organizations participating in SCI have introduced formal methods to promote greater strategic alignment, such as by introducing a joint business-planning approach. The buyer and supplier align on short- and long-term business objectives, set out mutual targets, and jointly develop plans to achieve objectives. Areas of opportunity for collaboration include growth, innovation, productivity, quality, and margins (see sidebar, “Joint business planning”).

Communication and trust

Buyers and sellers both describe high levels of trust in relationships that they consider strategic. In most cases, that trust has been built up over time, based on longstanding business relationships. Companies involved in collaborations tend to appreciate each other’s capabilities, understand each other’s businesses, and believe that their partners will stick to the commitments they make.

Companies are less convinced, however, that their partners will be ready to put the interests of the collaboration above the interests of their own organization. Many interview participants noted that greater transparency over sensitive areas such as costs was key to attaining the highest level of collaboration, but said that this goal was often difficult to achieve.

Building trust takes time and effort. Often this means starting small, with simple collaboration efforts that deliver results quickly, building momentum. This way, companies can demonstrate a serious approach to collaboration and their willingness to share gains fairly. More importantly, companies should base their relationships on transparency and information sharing as a foundation, with the expectation that greater trust will follow.

Cosmetics company L’Oréal follows this approach to encourage collaborative innovation. Through open dialogs concerning company goals and long-term commitment, L’Oréal has been able to establish an effective codevelopment process. The company’s annual “Cherry Pack” exhibition, for example, offers suppliers a preview of the consumer trends that the company will be working on, and asks them to develop packaging solutions in harmony with these trends. During the exhibition, L’Oréal creates a trust-based forum for suppliers to present the ideas and products in development—including ideas that have yet to be patented. The forum thus gives suppliers access to practical short- and long-term ideas and projects that ultimately accelerate packaging innovation.

Cross-functional engagement

To generate value from changes in manufacturing methods, quality-assurance regimes, or supply-chain processes, representatives from the respective functions on both sides of the partnership will need to work together. Yet this type of cross-functional engagement is something most benchmark participants find extremely difficult. Executives reported that while traditional relationships—such as those between buyers and supplier sales teams, or suppliers and buyer R&D functions—were strong, wider cross-functional engagement was patchy and poorly managed at best.

Improving cross-functional engagement is a leadership issue. Organizations with the most successful collaboration programs use a formal approach to manage cross-functional teams, with clearly defined roles and responsibilities on both sides of the partnership, backed by changes to internal incentive systems to promote full participation in collaboration projects.

Some companies, such as P&G, have taken a step further in creating cross-functional teams solely focused on joint innovation with suppliers. By creating a practice of “open innovation,” P&G aimed to coordinate its efforts and leverage the skills and interests of people throughout the company to assess the competitive landscape, identify types of innovation that can help develop disruptive ideas, and identify appropriate external partners. For innovation to work, P&G has stressed the need to integrate cross-functional teams that, in turn, integrate business strategy with operations—which requires a broad network of interactions.

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Value creation and sharing.

The pursuit of shared value is the reason buyers and suppliers take part in collaboration projects, so unsurprisingly procurement executives consider it the most important dimension of their collaboration efforts. Yet few participants in our study track the impact of collaboration on sources of value beyond cost reductions. Where companies have tracked the impact of collaboration projects on revenues, margins, or other metrics, they have done so only for a handful of high-profile projects.

For buyers, additional volume remains the most common way that the extra value created by collaboration projects is shared. Some partnerships had made use of other types of value sharing, such as performance-based incentives for suppliers. Where these approaches were employed, both buyers and suppliers were happy with the results. That suggests significant opportunity for companies to expand their use of such approaches, provided they can reach agreement on cost baselines and incentive structures.

Cleansheet cost modeling

Many of the potential sources of value targeted by supplier-collaboration efforts depend upon a mutual understanding of the true costs of a product or service. Achieving that sort of transparency can, however, be difficult in buyer-supplier relationships. Suppliers may be reluctant to reveal too much about their own manufacturing processes and costs, fearing that this information will be used against them in negotiations, and buyers may not want to let suppliers know just how critical they are.

Cleansheet cost-modeling approaches have risen to prominence in recent years as a tool to allow an open, fact-based cost discussion between buyers and suppliers. A cleansheet calculates the cost of each step during the creation of a product, component, or service, using a database of information on the materials, labor, factory space, equipment, time, and energy required to complete each step—and the implications for the desired product volumes on the utilization of those resources.

Cleansheet cost transparency helps collaboration partners generate ideas for design and process improvements. The approach can also underpin value-sharing agreements, allowing organizations to establish clear cost baselines and measure improvements against them.

Cost transparency is a critical enabler here. Some companies have found cleansheet cost modeling to be a very effective way to conduct fact-based discussions on costs and improvement opportunities with their collaboration partners (see sidebar, “Cleansheet cost modeling”).

ASML, a lithography-equipment manufacturer for the semiconductor industry, operates a value-sharing mechanism for its suppliers. The company allows suppliers to maintain healthy margins (as a volatility buffer), provides financing for the infrastructure needed to make its products, and offers staggered purchase guarantees. In this way, ASML incentivizes and rewards its strategic suppliers for prioritizing its business, gains access to cutting-edge technology, and reduces costs and improves stability in an industry with short lifecycles affected by substantial swings in demand.

Throughout its long history of collaboration with suppliers, P&G has used a wide range of commercial models to partner with suppliers across the entire R&D chain. Its value-sharing models range from shared fund pools for codevelopment of products to licensing agreements for commercialization. The flexibility to employ different mechanisms has allowed P&G to tap into supplier innovation without the need to overinvest in the development of deep partnerships with every potential collaborator.

Organization and governance

Like cross-functional engagement, the organization and governance of supplier-collaboration programs suffers from a lack of formal structures and processes. Interviewees admitted that their companies, both buyers and suppliers, were relatively lax in tracking and valuing their supplier-collaboration efforts. Few organizations had done anything to align the incentives of project participants within their own organizations, and most relied on informal mechanisms to share feedback or review progress with partners.

Introducing a clearer governance structure for the overall supplier-collaboration program and for individual projects has the potential to significantly improve outcomes in most organizations. Two-way scorecards, for example, allow buyers and suppliers to let each other know if they are effectively supporting the goals of the program. Governance of collaboration projects should be cross-functional, with appropriate incentives introduced throughout the organization to encourage full participation and ensure both parties pursue long-term win-win opportunities, not just short-term savings.

Supplier advisory boards

A supplier advisory board (or council) serves as a neutral and collaborative forum for the exchange of ideas between the host company and a group of strategic suppliers. Such boards are widely used by companies with mature procurement organizations, and they do so for a variety of reasons. A board may advise on key industry trends, risks, and potentially disruptive threats in the supplier ecosystem. Or they may provide a place for companies to explore the potential impact of business decisions on sourcing strategy. Some boards act as a hub for projects to improve operational processes between the company and its suppliers. Others are assembled to support special projects, such as joint innovation programs or sustainability initiatives.

An advisory board is usually chaired by an executive business sponsor and sourcing lead. Buyer-side members include representatives of multiple functions, such as marketing, legal, and R&D. On the supplier side, companies usually nominate a lead strategic supplier, along with around a dozen supplier board members chosen from the strategic supplier base. Those suppliers are selected after evaluation against a matrix of criteria determined by the objectives of the board.

Several leading organizations have created supplier advisory boards to provide high-level support and guidance for their supplier-management and supplier-collaboration programs. These boards act as a forum for the supplier base to advise on key issues and collaborate with the organization to further its business agenda. Companies use their supplier advisory boards to help manage risks and disruptive threats to the supplier ecosystem, and such boards also serve as a neutral space for the exchange of ideas between the host company and a group of strategic suppliers (see sidebar, “Supplier advisory boards”).

Toyota has been a prominent example of supplier collaboration, whose success can be explained in part by the use of clearly defined targets and supplier-performance metrics. These are built into contracts that hold suppliers accountable for continued improvements in quality, cost, and delivery performance. The company governs supplier relationships using a steering committee, staffed with relevant senior stakeholders from both organizations, to define the scope and objectives of the collaboration, review progress, and take action to remove roadblocks and resolve issues as they arise.

The Supplier Collaboration Index has already revealed several major opportunities for companies seeking to expand and improve their supplier-collaboration efforts. Some of those opportunities are quite straightforward, such as more proactive management of cross-functional teams involved in collaboration projects, or the introduction of formal governance systems to manage those projects. Others, such as greater cost transparency between buyers and suppliers, or the use of performance-based supplier-incentive mechanisms, may require more time and effort to achieve.

Excelling at supplier collaboration requires a more active and engaged working relationship with suppliers. It also calls for a change in mindset, encouraging both buyers and suppliers to commit to the long-term pursuit of value from their collaborative relationships. We end with eight steps that any organization can take to put its collaboration efforts on the right track.

• Start by identifying those suppliers that offer unique joint opportunities to create and retain significant value.
• Align strategically with these partners to define joint objectives and develop a compelling business case for both parties.
• Adopt a methodical and structured approach to define the scope, pace and targets for joint projects, including a clear methodology on how to measure value creation.
• Define simple, clear value-sharing mechanisms, and align incentives of the cross-functional team accordingly.
• Invest in allocating the appropriate resources and building the required infrastructure to support the program.
• Create a governance model focused on performance, implementation tracking, and hardwiring supplier collaboration into core operational processes.
• Foster a culture founded in proactive communication, transparency, consistency, and knowledge sharing, to strengthen long-term partnerships.
• Invest in building world-class organizational capabilities to ensure sustainability over time.

For any organization seeking to improve the performance of its procurement practices, supplier collaboration can no longer be considered a nice-to-have. As companies reach the limits of conventional purchasing practices, further progress will require a new approach based on close relationships, cross-functional engagement, and the shared pursuit of new value.

Agustin Gutierrez is a partner in McKinsey’s Mexico City office; Ashish Kothari is a partner in the Denver office, Carolina Mazuera is a consultant in the Miami office, and Tobias Schoenherr is the Hoagland-Metzler Endowed Professor of Purchasing and Supply Management at Michigan State University.

The authors wish to thank Juby Cherian, Pat Mitchell, and Valeria Saborio for their contributions to this article.

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Joint Business Plans: Top Tips for Successful Retail Collaboration

Our top tips on how to develop a joint business plan with your retail partner..

Aug 21, 2023

Joint Business Plans (JBPs) are strategic collaborations between suppliers and retailers to drive mutual growth and achieve shared business objectives. These plans outline the joint activities, goals, and strategies that both parties will undertake to grow retail sales, enhance profitability, and improve the overall performance of the partnership.

JBPs are usually negotiated once a year, at the start of the retailer's financial year. Most things that happen in that year such as distribution changes and promotional space offered are usually dictated by the JBPs; that doesn’t mean that changes not specified in the JBP won’t happen but in general, they influence the year’s decisions.

Here's a few of our top tips to developing Joint Business Plans:

1. understand the retailer's business objectives:.

Gain a deep understanding of the retailer's overall business strategy, goals, and priorities. 

2. Align with retailer's strategy:

Ensure your business objectives align with the retailer's strategy. Identify areas where your brand or product can contribute to the retailer's goals.

3. Gather data and insights:

Collect relevant data and insights to support your JBP. This includes market research, consumer trends, sales data, and shopper behaviour analysis. 

4. Develop strategies and action plans:

Work together with the retailer to develop strategies and action plans that will help achieve your defined goals. 

5. Communicate and review:

Maintain open and regular communication channels with your buyer throughout the JBP implementation. Schedule periodic meetings to review progress, share insights, discuss challenges, and make any necessary adjustments. 

6. Accountability & Conditionality:

Within the JBP it’s likely you’ll have invested in the retailer to gain additional space or get new products listed etc. Ensure you only pay investment that was linked to changes once that change has been completed by the retailer; this is referred to as conditionality.

Conclusion:

Remember, a successful Joint Business Plan requires strong collaboration and a focus on mutual growth. By aligning goals, strategies, and resources, suppliers and retailers can create a powerful partnership that drives sustainable business success.

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JBP: The Brave Approach to Writing a Joint Business Plan

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How you can take the Brave Approach to Writing a Joint Business Plan – JBP – with a UK Supermarket:

Writing a Joint Business Plan (JBP), creating Joint Business plans, JBPs, or terms negotiations, as they can be known, are all relatively new phenomena in the world of supermarkets and suppliers. Whilst some supermarkets and suppliers, particularly the brands, have talked about joint business planning for some time, it is only in the last few years that it has become ‘business as usual’. Now featured in industry news and some Joint Business Plans are published online – This JBP is for Tesco and Nestle in Poland.

The first moves towards a JBP were made when Category Management and ECR made an appearance in the 1990s with tools like the Category Scorecard. Hard-nosed buyers and sceptical account managers reluctantly dipped their toes in the water of true collaboration. Though, as Stephen Covey writes in Habit 4 win:win, the only way forward is together for mutual benefit. The definition of joint business planning is to work with a collaborative mindset towards mutual goals agreed upon for the benefit of the supermarket, supplier and shopper.

The Brave Approach to Writing a Joint Business Plan with a UK Supermarket is about helping UK supermarket suppliers to identify their true business objectives . Also, to understand what is strategic planning, identify the business terms and create a business plan that is worth having for both parties. Here are 7 brave moves that should be taken in The Brave Approach to Writing a Joint Business Plan with a UK Supermarket. This is because a supplier that does, will be best in class:

1. Stating the Blindingly Obvious – A Joint Business Plan is All About Trust

In Accenture’s free report on joint business planning, they talk of a change in mindset for both parties to achieve ‘Increased trust among parties’. And, of course, Accenture is right that trust is absolutely essential for a joint business plan to be effective. Plus, the IGD industry survey on Category Management Capability and Partnership of 2014, said that ‘Too often trust is the biggest barrier to putting any proposal into action’.

The challenge is that trust is hard to build and even harder to understand, particularly for people representing two large companies, where the aim is to make as much money as you can, usually by giving the other party less.

Discussing trust can be a sensitive topic and a brave topic to raise. Doing so provides a solid foundation to build upon. The simple choice is to either raise these issues now or to become frustrated when nothing happens. Better now because both parties are wanting to build a future together.

Action: Add ‘Building further trust’ as an early agenda point in your joint business planning meeting.

2. KISS is the Route that Succeeds Most with Joint Business Plans

KISS is a mnemonic that is often said and rarely used. In joint business planning the watch out is not to write a joint business plan together where people spend days locked away in darkened rooms solving the vision, the big category problems, discussing shopper switching, the next range review, why promotions don’t work, and the ‘kitchen sink’. The challenge and the brave approach is to work on less to achieve more.

Scoping what both parties want to achieve is essential and then identifying the 80:20 of those items. The objectives will be easily identified and usually around, ‘To write a joint business plan that delivers x growth/market share/sales by <date>’. The scope is hard. The important part because it might be just to complete a simple one-page document showing:

• Category Targets
• Category Measures
• Enabling Big Projects
• Project Milestones
• Ways of Working

This document could be just one page. But it is a bought-in, thrashed and motivating page. A page that both parties agree to start with and then review in 3 months. An 18-month plan is about the right timescale to tackle a joint business plan. There are those that will advocate 3 years and even 5-year business plans are needed. The challenge is that most supermarket buyers will not be in place beyond 18 months, and many account managers too.

Action: Agree on the scope of the joint business plan. Divide a page into two, headed up with the scope and then 2 columns; In and Out. Agree on what is in scope, e.g. Discussions that are big picture and what is out of scope, e.g. The day-to-day detail.

3. Naming the Big Project Outcomes is the Key to Success

In our Time Management Training course we talk with the learners about the importance of having a project list and describe the daily to-do list as the wheels of a car, and the project list as the steering wheel. Those without a project list fail to steer towards their KPIs and KRAs , preferring to work on the day-to-day, refusing to acknowledge the big stuff and claiming that they are ‘too busy’.

The same is true of joint business plans and the key is to define the outcome. Instead of writing ‘Promotions Project’, change it to a project outcome title, which could be ‘Promotions Adding Sales of £5m p.a.’. Whilst a subtle change, the difference is that if no traction is made the impact is obvious – £5m lost. Plus, it is less likely that the person will remove the project when the outcome is obvious, and the project owner can genuinely begin with the end in mind – £5m sales to identify.

Making traction on the big projects is essential to see early progress on joint business planning. For each big project, the collaborators need to agree on the first 3 practical and simple actions. These 3 actions will get the project moving. Even if those actions are to get together for 1 hour to brainstorm. Maybe brainstorm how to achieve £5m additional sales from promotions. It is imperative that these debates are not tackled at the Business Planning meeting. This is because it is ‘scope creep’. Which means that it is against the scope that was agreed. Plus, the meeting will achieve very little because too much is trying to be achieved.

Action: Change project titles to project outcomes and agree on the first 3 practical and simple steps for each project.

4. A Simple Dashboard Every 2 Weeks to Keep Things Moving

The experience of most people is that business plans are built with love and sit on a shelf with hate. Their examples have taught them that joint business planning is a necessary evil and ultimately achieves very little.

The brave move is to change your mindset. Get out of the self-fulfilling prophecy, by doing Joint Business Plans differently to the last 10 times. Helping to achieve that is a simple dashboard showing the Category Targets, Category Measures, Enabling Big Projects, Project Milestones, & Ways of Working and most importantly, the progress, with a short commentary. Ideally, on one page, the dashboard is published every 2 weeks. Fortnightly because 1 week is not long enough to see progress and one month is too long if progress is going off-course.

By having a dashboard the joint business plan is kept alive.

Action: Propose a simple dashboard that is to be published every 2 weeks, for the group to approve.

Free Download: JBP Template

Please contact us if you have any questions, 5. reviewing the joint business plan quarterly together.

A smaller team is a brave move. This is because, during the landing of Category Management and ECR in the 90s, the supermarket team and the supplier team would be around 12 people each.

Whilst this was more a demonstration of collaboration and ‘equalling the fight’ than anything else, progress was slow. Nowadays a smaller team can achieve more if they accept that their accountability is to get the information, persuade the other departments, and basically make progress, not being able to cite every other department in their company as the reason for not achieving the required progress.

A smaller team should meet every quarter with the only point on the agenda to discuss the joint business plan. These dates need to be diarised for the full 18 months. Again, the scope is important because the temptation will be to discuss the other 100 issues that need addressing. But bravely accepting that the joint business plan, if delivered, will achieve everyone’s goals, then this is the only topic of discussion.

Beginning with a refresh of what the joint business plan looks like, the agenda should look like this:

• Refresh the joint business plan.
• Ways of Working – Have these been adhered to? What else needs to be done?
• Performance Vs the agreed targets.
• Project progress Vs the agreed milestones.
• Discuss the usefulness of the dashboard, not being tempted to make it too onerous.
• Run through the actions stating what, who and when very clearly and emailed before everyone leaves. Our top tip is to capture actions on email as the meeting progresses. Not afterwards because each one is likely to be re-debated.
• Agree on the date of the next meeting.

Action: Propose dates for the next 18 months and a suggested agenda.

6. Strategic Thinking is the Essential Skill

In the most recent IGD trading survey both suppliers and supermarkets ranked ‘strategic alignment’ and ‘long term planning’ as important now and even more important in the future. The supermarkets said that having these skills was what a supermarket would expect from a ‘best in class’ supplier. Strategic Thinking , as well as being one of those overly used terms and mystifying skills, has now become essential to joint business planning. So much so that job advertisements are asking for applicants to have joint business planning experience. Strategic thinking, strategic planning, and having strategic objectives are about being able to see the big picture, identify insights with high impact and make them happen. The skills of joint business planning are the same, as well as an effective use of some negotiation skills.

The brave move would be to initiate a joint business plan with the supermarket and begin to implement this roadmap to category growth. Action: Read this post on strategic thinking and consider an executive coach to prepare you for your next JBP so that you are the best version of yourself when you negotiate, share your big-picture thoughts and discuss trust.

7. These Critical Meetings are ‘Must Win Meetings’ for Any Supermarket Supplier

Initiating, or being invited to a Joint Business Plan meeting, is pivotal to every supplier because, of course, terms are negotiated and the outcome will have a high impact on the supplier’s annual performance, but also a Joint Business Plan meeting is an opportunity to demonstrate ‘best in class’. Best in class for category understanding, shopper understanding, supermarket understanding, possible solutions, and how to manage these plans to make them work.

For these reasons, the preparation for a must-win meeting must be to achieve the old adage of ‘sweat in training, no need to bleed in battle’. Role plays are an undervalued tool for preparing and for getting the heads-up on those things that could not be predicted and are yet to happen. When millions of pounds can be at stake for one meeting, it pays to be prepared, and ask the experts for help to be the very best version possible.

Action: Book a role play with a suitable colleague/s so that you can sweat in training, or contact us for help. See our Fyffes testimonial for how we supported them.

A Summary of the 7 Brave Moves 

Here is a summary of the 7 brave moves that should be taken in The Brave Approach to Writing a Joint Business Plan with a UK Supermarket because a supplier that does, will be best in class:

• Stating the blindingly obvious – It’s all about trust.
• KISS is the route that succeeds most with joint business plans.
• Naming the Big Project Outcomes is the Key to Success.
• A Simple Dashboard Every 2 Weeks to Keep Things Moving.
• Reviewing the Joint Business Plan Quarterly Together.
• Strategic Thinking is the Essential Skill.
• JBP Meetings are ‘Must Win Meetings’ for Any Supermarket Supplier.

What is your top tip for writing a JBP? Please share your view by commenting at the end of this article.

Creating a JBP that Includes the Required Elements of the Groceries Code Adjudicator 

Only 1 in 2 Suppliers has a written supply agreement according to research by the Groceries Code Adjudicator (Slide 16). A written supply agreement is often a joint business plan. Therefore here is a checklist of often-forgotten items that should form part of the written supply agreement/JBP:

• Payment terms
• Marketing costs, e.g. artwork, packaging, consumer research, or hospitality
• Payments for wastage

A Must Win Meeting Masterclass is only £750+vat for up to 12 people (£62.50 per person). Contact us to book.

Feel free to get in touch. Simply fill out the form below or email us at  [email protected] , and we will be happy to get back to you with further information.

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How to Create an Effective Joint Business Plan

For two businesses to form a joint venture, they need a plan that outlines the nature of the business coalition. A joint business plan defines the state of the companies involved, the purpose of the joint business and the partners’ responsibilities.

A joint business plan describes all the activities that these business ventures must carry out to achieve specific goals.

The relationship between the two parties and their goals must be clearly understood. After creating the business plan, it must go through a legal review to test its legitimacy. In your business planning, you work together in a collaborative relationship toward mutually agreed terms.

Business planning for joint ventures helps the parties leverage resources, reduce costs, combine expertise and/or enter foreign markets. A well-defined joint business plan is vital for any agreement and business strategy.

What is a joint business plan?

A joint business plan is a document that defines a merger between two or more companies. It describes the purpose and responsibilities of each partner in the incorporation. You may also see it as a collaborative process of planning where a supplier and retailer agree on both long- and short-term goals, including growth, finances and shared initiatives for profitability.

The purpose of a joint business plan is to design a win-win strategy for increasing consumer sales. This plan allows the partners to build a formidable relationship with retailers for mutual support and benefits. Having agreed upon goals, both parties share insights on a common vision for better support, customer growth, enhanced process and improved sales.

Business planning depends on interested parties sharing their plans with defined mutual growth opportunities. The partners can detail and share strategic planning, growth strategy, tactics and any area of competitive advantage.

The joint business plan is created once a partnership agreement is mutually beneficial and defined. Parties would draw up, approve and sign a formal contract before the execution of the plan. This is followed by a periodic review of joint scorecards based on necessary performance metrics to fine-tune strategies.

The joint business planning process comprises every possible logistic, including human resources planning and how to reach project milestones. Resource accountability is vital to building trust. Your best tool for transparent resource use and accountability is a resource planner .

If the employees of the venture will need to go to a different location, the venture will likely have difficulty planning their tasks and locations. TimeTrack Auto-Scheduling provides joint ventures with a transparent planning tool that reduces effort and enhances error-free shift planning.

TimeTrack Auto-Scheduling

Types of joint business plans

Standard plan.

This is often referred to as the working plan. It offers an overview of the company, outlines its goals, and details when and how entrepreneurs wish to achieve the goals. Such a plan helps secure funds, investments or loans. Within the plan, you could specify how you will use investor funds and their potential profits.

What-if plan

Sometimes things don’t go as planned in business. The what-if business plan defines the various roadblocks that a company might face as it strives to achieve its business objectives. The venture is largely at the whims of external factors, including the supply chain and stock market. You need to outline a predictable scenario to let business partners know how to recover their funds.

One-page plan

While a detailed plan is vital, there are instances where you will need to provide an abridged version of your plan. This one-page business plan outlines the summary of demand, solution, model, management team and action plan.

Start-up plan

A business plan for entrepreneurs, especially those in the early stages of their business planning, will need a start-up business plan. It is designed to give potential investors the bigger picture and outline how you want to achieve your goals. It often includes an executive summary, background, product and service descriptions, market analysis, costs and financial projections.

Expansion plan

This is a business plan that’s necessary when you need to scale your business and identify the necessary resources for its development. These could be financial investment, an additional workforce, new products or raw materials. This plan will detail the business background, needed resources and how they will contribute to growth and business expansion.

Operational plan

An operational business plan revolves around near-term goals , especially those you will work towards achieving within a year. It defines the activities your venture will focus on and emphasizes the role of the workforce and budgeting in achieving the operational goals. In most situations, the heads of departments are key participants in the operational plans because of the need for approval in achieving the goals.

Strategic business plan

This is different from the others because it focuses on how departments can work together. This venture plan is more comprehensive and requires senior-level approval before implementing goals. This plan answers the questions of how to achieve goals, what resources are needed and the execution plans for achieving the goals.

Joint business planning tips

Companies that benefit from a joint business plan

A joint venture exists mainly as a contract between new cooperating partners. In forming a joint venture, each of the business partners agrees to the assets they will bring to the table and how income and expenses will be shared.

While a joint venture is a corporation between two or more entities, each of the companies, be it an individual, company, corporation or group of individuals, still has its original legal status, though not all joint ventures result in a new business entity. These companies could be sole proprietorships or partnerships, limited partnerships, corporations, limited liability companies or non-profit organizations.

Examples of a joint business plan

Perhaps you have an online venture selling high-quality products at reasonable prices, while needing to increase brand strength. Such an example of a joint business plan outlines a company overview, executive summary, product and service offerings, marketing strategy, market analysis, budget and financial planning.

A joint business plan may be designed for ventures rendering menu services such as lattes, espresso, coffee, cappuccinos, and sandwiches. The business plan outlines an executive summary and studies your competition , target market, marketing plan, ownership structure and operational plan.

A joint venture could be designed around offering services such as shipping, faxing, postal and copying to residents to conduct research , create debate space and generate ideas. This example of a business plan will include an executive summary, a vision and mission statement, goals, objectives, and measures, organizational structure, marketing analysis and a financial plan.

Top strategies for effective joint business plan

In a joint business venture, there are risks which include rising complexity, cultural diversity, high failure rates and language diversity. The strategies detailed below will benefit the venture in navigating the challenges through effective joint business planning.

Strategic plan

Strategic global planning is an effective business practice for entering a new market. It helps to identify opportunities and threats. Before beginning strategic planning, be sure that a joint venture is the right action for you. Compare the strengths and weaknesses of the partners to confirm a good match. Your strategic plan should explain why you want to collaborate with that partner and what you hope to achieve, how to monitor trends and collect good data. Some of the reasons you may wish for a new joint partner may be to enter a new market, geographic expansion, financing, etc.

The right partner

The choice of partner is crucial, but what is more important is understanding the effectiveness of partners in delivering on their promises. Do your due diligence on your partner’s attitude toward collaboration, performance and level of commitment. What about sharing the same objectives?

Effective communication for a great relationship

After your investigation, if you deem the partner fit, find mutual ground. Communication is the key to a good relationship. Make sure your partner understands the foundation of the joint venture and agreement. Ensure they agree on human resources, financial contributions and goals. To consolidate the stability of your venture, be upfront, honest and transparent about your objectives.

Clarify how, what, and where

Be clear on the vision, strategic plans and scoreboard to ensure that everyone is energized and united about the goal. Define a common working pattern. This has to include conflict management, decision-making, collaboration, problem-solving and technology strategies. Focus on win-win solutions.

Track performance

Is everyone putting in the hours and making productive headway? One way to gauge this information is by time tracking. One of the challenges for companies whose employees work in shifts and in different locations is tracking attendance. TimeTrack Attendance Tracking helps companies monitor employees’ work hours and leave days, so that managers can stay up to date on potential delays.

TimeTrack Attendance Tracking

Once you have set out the goals and vision for the new venture, establish key performance indicators, the data you want to track and the process to measure those performance metrics. This involves creating a joint scorecard for each metric against trends and competition. The targets you set must guard against possible problems the partners might encounter.

Build trust

Your best joint business strategy is to build trust and create value, without which your partnership is bound to fail. Trust is the foundation of every partnership. It is an important factor in business planning. Without it, neither partner can succeed. How do you manage diverse cultures, interests and languages if the partners lack trust? Trust builds team strength and encourages creativity while promoting collaboration.

Good leadership

The cost of poor leadership is so high that you must not venture into joint partnership without assurance of good leadership. Focus on building good leadership and not just creating “bosses”. Leadership presents the biggest opportunities to change the performance narrative. Create a strong leadership team, from whom all employees can learn.

A joint business venture is not without its challenges. To ensure a successful collaboration, focus on a clear strategy, excellent communication, transparency and strong leadership.

I am a researcher, writer, and self-published author. Over the last 9 years, I have dedicated my time to delivering unique content to startups and non-governmental organizations and have covered several topics, including wellness, technology, and entrepreneurship. I am now passionate about how time efficiency affects productivity, business performance, and profitability.

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Improve Collaboration and Joint Business Planning Results in 3 Steps

Collaboration is on many organization’s strategic plans, with effective Joint Business Planning (JBP) being the outcome. Retailers’ and Vendors’ have the opportunity to determine mutual areas of interest and build their businesses in a collaborative way — namely by taking steps to improve Shopper satisfaction with a better experience.

However, effective Collaboration and JBP require more than a desire or written strategic plan. Both require that your organization undertake 3 consecutive steps:

• Prepare your organization internally for collaboration;
• Align your internal approach across your multifunctional teams through common training; and
• Implement external Collaboration and Joint Business Planning.

Collaboration and Joint Business Planning can help both Retailers and Vendors manage the change that continues to dominate, including:

• Changing partner needs and expectations between Retailers and Vendors
• Changing market and Shopper,
• Less resources available internally due to downsizing / consolidation, and
• Increased requirements due to more and bigger data and a more complex Shopper.

Here are some resources to help you get started:

• Complimentary Download: Collaborative Relationship Continuum Model
• Course Video Preview: Collaborative Business Planning
• Course Overview:   Collaborative Business Planning

3 Steps: Improved Collaboration and Joint Business Planning 

Step 1: be prepared internally.

It’s important for teams and organizations to first understand what collaboration is: 

Collaboration is highly diversified multifunctional teams   working together inside and outside a Retailer / Vendor with the purpose to create value   by improving innovation, Shopper relationships   and efficiency while leveraging technology for effective interactions in the virtual and physical space. (Carlos Dominguez, Cisco) (modified by Sue Nicholls, CMKG)

Are you ready to collaborate?  Start by defining your assets, prioritizing your opportunities and seeking out the right business partners. The questions below can help determine if your organization is ready to collaborate ( taken from the Category Management Association’s whitepaper on “Strategic Collaboration for Shopper Satisfaction” ):

• What do you want to gain by collaborating?
• Is your company set up to foster and support collaboration?
• What multifunctional resources / data / technology / intellectual property can be shared with your collaborative business partners?

Step 2: Create Internal Alignment

Moving to a collaborative approach requires your multifunctional teams to be able to see the “bigger picture”, turn data into insights, think beyond brand into total category, and better understand the consumer AND Shopper. These responsibilities must be expanded to marketing, sales, private label and retail teams in an aligned approach. 

Alignment of all functions in your organization occurs through engagement and training in category management . In fact, training approaches need to change for most organizations, as traditional “point and click” linear approaches based on a new data source or tactic no longer suffice. In a collaborative approach, teams need to start thinking more strategically about how the decisions and recommendations they make align to the overall strategies for the organization and for their external collaborative business partners. This can be accomplished by equipping multifunctional teams with a common set of knowledge and skills acquired through training courses. 

Role-based training in combination with strategic training will help individuals and teams feel more confident they are making choices and recommendations that match with your overall collaborative efforts and Shopper.

Step 3: Move to External Collaboration and Joint Business Planning

Now that you’ve established where you are currently at with your Retailer or Vendor partners, you can undertake Joint Business Planning (JBP) — the “next level” in a collaborative relationship. JBP should build from foundations established in collaborative relationships.

In theory, Joint Business Planning is a collaborative effort between the Vendor and Retailer which involves open sharing of information. Shared information allows for the creation of a common, mutually-agreed-to business plan. But let me insert a bit of reality into this idyllic definition. From a basic level, it is a business plan that is developed between Vendors and Retailers, through sharing of select information. The plan should include expected trends, initiatives and the forecasted market environment, so that there is a greater chance for the goals and objectives within the plan to be attained. 

The higher the level of collaboration between the organizations, the closer you will move toward the theoretical definition of Joint Business Planning.

A successful Joint Business Plan requires each party to clearly understand the others’ goals, business and customer requirements. This shared understanding becomes the foundation of the JBP, with both businesses pooling their resources and expertise to achieve specific goals. The risks and rewards of the plan are also shared.

While specific approaches vary by Retailer, the following framework from CMKG category management training provides the key steps associated with most joint business planning processes:

Let’s look at the first step for the Retailer – identifying corporate strategies and goals . The Retailer, usually led by the senior management team, creates the sales, cost of goods and operating targets for the upcoming year. When you look at a Retailer’s income statement , there are 3 ways that a Retailer can influence net income:

• increased sales;
• decreased cost of goods sold; and
• decreased operating expenses.

Retailers’ targets will most likely include initiatives behind all three of these components of the income statement to increase their net margin and income. Examples of initiatives may include new store openings, the current market, and private label opportunities for the Retailer. Other initiatives may be based on supply chain upgrades, information technology upgrades, or any other types of business process improvements that will impact the bottom line for the Retailer.

In summary, if you have properly defined collaboration internally and strategically selected your business partners upfront, you are less likely to run into problems. Problems are likely to arise in a Joint Business Plan if:

• There are unclear objectives, one of the parties was not transparent in their sharing of information, or the plan was not properly communicated to everyone involved.
• The partners have different objectives or hidden agendas in the joint venture.
• One party is investing much more in terms of expertise, financial, and/or assets than the other party, creating an imbalance.
• Different cultures and management styles with partners may result in poor integration and cooperation.
• The partners don’t provide sufficient leadership and support in the early stages of the program.

The Opportunity?  For Retailers and Vendors to define mutual areas of interest, build business in a collaborative way, and improve the Shopper experience. 

Want to learn more about Collaborative and Joint Business Planning? Category Management Knowledge Group can help you, your team or your organization through a single online, live or webinar course or a customized program. We have some great category management training options available to meet your needs. You can preview our brand new, accredited  Collaborative Business Planning   course below:

Topics: Category Management , Strategic Collaboration / Joint Business Planning

Written by Sue Nicholls, Founder & President CMKG

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What Is Joint Business Planning?

Executive Vice President and Chief Merchandising Officer , Sam’s Club (Walmart)

Tectonic Shifts in the Retail Environment

The symbiotic relationship between retailer and Consumer Packaged Goods (CPG) companies has, till now, been able to support steady growth based on demand alone. Now, as the Consumer Goods (CG) industry continues to shift away from organic expansion, the need to reach more customers and engage new audiences is more important than ever.

Let’s dive in to some of the key shifts our customers are seeing in the retail environment:

• Competition: Authentic challenger brands are continually entering the market. According to a recent survey carried out by McKinsey, 30-40% of consumers have been trying new brands and products during the pandemic. Of these consumers, 12% expect to continue to purchase the new brands after the pandemic. More competition = more difficulty obtaining or retaining market share.
• Price Pressures: Global supply chain stress has created a multitude of issues for companies seeking to keep costs down. Disruptions in labour markets have seen  15% of companies  with insufficient labour for their facilities to keep up with increases in demand, leading to inflation re-emerging as a significant problem for the first time since the 1970s.
• Regulations: Changing consumer needs are not only encouraging the rise of new, healthier alternative brands but also instigating real legislative change. For example, in October 2022, HFSS (High in Fat, Salt & Sugar) regulations  will see a crackdown on promotions for unhealthy food and drinks, which will have serious repercussions for both suppliers and retailers.

Traditional Account Management Is Obsolete

Retail, Wholesale & Distribution Leader , Deloitte Global

These shifts have caused retailers to change the way they do business; the traditional playbook needs to be thrown out and rewritten. The diversification we have seen in channels, models and store formats means that retailers’ expectations for suppliers have changed. And, as increasing numbers of authentic challenger brands come to market, competition has never been higher. 

For both retailers and suppliers, Key Account Management (KAM) needs to be revisited. A culture of test & learn in real time needs to be applied to contend with these new market entrants and, with “key accounts contribut[ing] between 40% to 80% of revenue for a branded supplier” in developed markets as indicated by   this article by Bain & Company , the time to reinvent is now.

Major incentives for change can be distilled into these three points:

Negotiation Can Feel Like a Zero-Sum Game

In the past, the CPG industry power dynamic has often favoured the supplier, but this is no longer the case.   Only 3% of retailers   are in an exclusive relationship with just one supplier in a given category, indicating the clout they hold to sway access to consumers is higher than ever before. With   a number of Consumer Goods companies   falling prey to a one-size-fits-all to their global business models, they have been losing valuable ground to more specialised, relevant competitors.

For CPG companies, visibility at point-of-sale for their products is vital. For retailers, getting the product in-store   to   sell is their business. Having retailers being ‘on-side’ and aligned is game-changing for suppliers. 

But, as indicated in the name, Joint Business Plans need to be exactly that: Joint. If the manufacturers arrive at the table with a railroad agenda, offering little to no agency to the retailer, it will be too one-sided and off balanced. If retailers have unrealistic expectations, e.g broad assortments or 24-hour delivery, from certain suppliers, the equilibrium of the plan will be thrown off from the outset. This is where the value of insight-sharing cannot be understated;   IGD asserts   that both sides must ‘be prepared to share information with each other’ to achieve success.

Both CPG companies and retailers need to be able to influence the plan and offer respective insights to avoid creating a zero-sum atmosphere.

How Can Joint Business Planning Be Achieved?

For companies collaborating on Joint Business Plans, certain proactive steps need to be taken to fit the plan to benefit both parties. Bain & Company have set out   five key steps   that they have seen Consumer Goods companies take to achieve ‘more trustful and productive’ relationships and provide significant value.

1. Understand the Retailer’s Economics as Well as Your Own

Entering into a business relationship, such as a JBP, with a full understanding of where a potential partner is in the market is pivotal to a successful collaboration. Being aware of any weaknesses provides the opportunity to address them before they become an issue and impact your business. 

In turn, a complete understanding of your own business’ strengths and weaknesses before embarking on any external partnership is equally important. A Joint Business Plan can only be successful if it truly brings benefit to both the retailers and CPG companies; without this, joint commitment can’t be assured. 

This demands the creation of an environment where retailers and CPG companies can offer total visibility into their data, thereby enabling creation of target audiences and consumer journeys. As indicated by an   IGD Industry Survey , ‘Too often trust is the biggest barrier to putting any proposal into action’. Data transparency reduces the possibility of down-the-line surprises and potential derailing of the plan.

2. Differentiate Your Joint Business Plan and Align It With Your Retailer’s Strategy to Target Shoppers

While keeping costs down may be   advantageous, it is vital not to lose sight of the top priority; understanding the target customer segments. 

Customer data extracted through the collaborative JBP can help maintain product stock levels, illustrate demand and identify trends in product distribution. Without this information, even a theoretically perfect Joint Business Plan will fail. Understanding who the customers are and what they are buying better enables CPG companies and retailers to produce and distribute – keeping the customer’s needs at the crux of their strategy.

It’s important to note that Joint Business plans are not one-size-fits-all; it may take more time to differentiate a plan to make it more tailored to a specific relationship, but the benefits can outweigh the expense.

3. Have Teams on the Ground Executing Key Customer Touchpoints and Confirming Compliance

Research by POI illustrates that   58% of CPG companies   are struggling with retailer aligned compliance for store-level promotion execution. Clearly, there is a concerted need to ensure in-real time that assured promotions are being carried out, but   27% of CPG companies   do not get   any   real-time insights into retailer compliance, forcing them to wait until the end of a cycle to make any significant changes.

While promotion compliance isn’t a new issue in the Consumer Goods industry, it can be a major roadblock to a JBP. With teams in the field, far more regular compliance checks can be performed and the information shared much wider, much faster. 

4. Maintain Year-Round Contact With Customers at Multiple Levels and Functions

The dialogue between each party needs to continue beyond initial negotiations and agreements. Regular meetings provide opportunities to correct mid-cycle issues, where the retailer and CPG company can align on real-time results and solutions. 

Without clearly defined and tracked performance metrics, the success of the JBP is uncertain. Both parties need to agree on what data sources are going to be reviewed. Expectations must be laid out internally and externally, to establish what each side hopes to get out of the arrangement. This will prevent potential disappointment if or when unaired expectations aren’t met. 

It is also important to have discussed and agreed upon the terms and investment in the JBP. Going into a project aware of the value that each business is adding to the other and being able to quantify the ROI is fundamental to a successful Joint Business Plan.

5. Use the Most Advanced Tools and Insights to Stay on Top of Your Joint Numbers

As shown in the recent Promotion Optimization Institute (POI)   State of the Industry Report , 64% of manufacturers have challenges when looking for data from retailers. When data is such a foundational element to gainful retailer partnerships, it needs to be shared. The ideal is to involve teams from across the company including distribution, sales, finance and marketing. Siloed internal communication can negatively impact information sharing and lead to failure of a JBP.

CPG companies need to leverage real-time insights pulled from a range of commercial data sources that allow them to optimize strategies based on their business goals and current supply and promotion constraints. This maximises the value of every dollar invested in trade spend.

Aforza & Joint Business Planning

Closely aligned with the tenets of   Bain’s Key Account Management Commercial Excellence   framework, Aforza drives Joint Business Planning with an end-to-end platform of core functionalities:

• Account 360° View : Gain a complete view of an account’s hierarchies and key relationships, as well as visibility into all engagement activity across channels.
• Real-time Data & Insights on Account Performance:   Get real-time insights, from a range of commercial data sources, across all aspects of your key account performance.
• Integrated Trade Promotions:   Optimize trade spend  and   target key customers   by displaying a real-time view into promotion performance, inventory levels, sales order insights, budgets & funds, plans & objectives.
• Retail Execution   Checks from Field Sales Teams:   Leverage your teams in the field to check key account compliance and take promotion-based order capture with penny-perfect pricing on mobile;   online or offline .
• Digital Asset Management :   Ensuring all important business documents are centralised and accessible against the account, such as contracts and Joint Business Plans.

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JOINT BUSINESS PLAN: Top 7 Secrets To Successful Joint Business Planning&

• by Kenechukwu Muoghalu
• August 14, 2023
• No comments
• 8 minute read

Table of Contents Hide

What is joint business planning, what are the benefits of a joint business planning, what is a joint business plan , #1. have a plan, #2. choose the right joint venture partner , #3. communication, #4. define the where, what, and how, #5. monitor performance, #6. build trust, #1. how ready are you, #2. choose the right partner, #3. source business together, #4. ending a joint business planning, what if i lack the skills to create a joint business plan for myself, joint business plan faqs, what should be in a joint business plan, how do i set up a joint venture in the uk, how do you split profits in a joint business.

If you have plans to join a joint business, you have to understand the ethics of this venture before you proceed. You will need to set the right objectives for the business partnership. You will also need to have a joint business plan stipulated just for this course. There are a lot of processes, but not to worry. This article has exclusively explained what a joint business plan is and how it can help your investment, coupled with a sample template that can help make your journey easier. Let’s dig in!

Joint business planning is a collective effort between a vendor and a retailer. In this form of business, the two parties will be involved in the open sharing of information. However, it allows the joint parties to reach common ground and mutually agree on the business plan. I will give it a simpler definition, I need you to understand the basics of this Joint business planning. 

A joint business plan can also be said to be an agreement between two or more businesses in order to pool their resources to achieve a goal. It’s just like two or more people running a business. A joint partnership can be initiated in any business. A sample of this can even be found in jointly owning a personal trainer business and turning it into a joint business. 

They also share the risks and rewards of the investment. The joint companies also collectively own equal shares and put their heads together to make their investment successful. They work with trends, initiatives, and forecasted market environments. 

People can choose to open a joint venture for multiple reasons. It can be due to a business expansion, a new product development, or moving into new markets, especially internationally. Or just practicing the adage that says “two heads are better than one”. 

However, it can be difficult to build the right relationship that can boost the venture. But with the right resources, which includes having a joint business plan to serve as a guide, you would scale through. You should also know that Joint business planning with partners has proven to be one of the most effective ways to drive revenue and establish joint accountability.

Having talked about what a joint business venture is, now we will talk about having a plan that will serve as a guide through your investment. A joint business plan is a document that outlines a business coalition of two or more companies. This joint business plan is divided into several sections which state the companies involved, their purpose, and their responsibilities in the business. 

In summary, you can say that the plan contains temporary activities that can help achieve specific goals. What a proper joint business plan requires is to incorporate each party and make sure they clearly understand themselves and their goals. After the plan is been created, it will need to pass through a legal review just to test its legitimacy. 

Read Also: JOINT LOAN: Definition And All You Need To Know

Mind you, this joint business plan is above and beyond a standard business plan . It can also help you plan some measurable objectives, execution tactics, go-to-market, target account lists, and more. This business plan can serve you well, especially when it is for a joint business. Keeping track of all your business activities is a must because other people are involved in the investment. You can try checking your partner’s progress once in a while against the agreed plan.

Top 7 Secrets To a Successful Joint Business Planning

When it comes to joint business planning, there are secret tweaks that can help you scale through. You know Joint business comes with risks because of its joint partnership nature. Partnership most times can be diverse language, increased complexity, diverse cultures, and frequency of failure.

That is why we have formulated the top 7 secrets to having a successful partnership. Let’s take a quick rundown on them.

It always pays off to have a strategic plan on standby in your joint business. Your joint partnership should kick off with careful planning. To aim this, review your business strategy to see if a joint venture is even the best way to plan and achieve it. Consider the businesses involved, and compare their strengths and weaknesses to determine if it is a good match. Your strategic plan has to also answer why you want to partner with what you need to achieve from it. Is it for geographic expansion, new markets, or funding? Being clear will make the parties involved work towards achieving their objectives. 

Before going ahead to choose a partner, it is wise to determine how well they perform. Find out their attitude to collaboration and their level of commitment. Find out if you share the same business objectives with them, are the people you could trust? Do they have a nice reputation? These questions are necessary to determine who you are going into business with. Do your due diligence checks and don’t spend time having lunches with them. 

After your little investigation work on your partners, and hold a common ground with them if they fit. Communication can help build a relationship. Ensure that your partners understand what the basics of a Joint Business agreement really are. Are they clear on the goals, human resources, and financial contributions? This is the time to meet them, have those one-on-one meetings with them, communicate and make the best out of it. If you fail to plan like this, your joint business won’t be stable.

Create ways of working to energize and unite the partners involved. Map out the vision, strategic plans, and the scoreboard to make sure that everyone is following a common goal. Provide a common working pattern that includes decision-making, problem-solving, conflict management, collaboration, and technology. Find a way to deal with problems that occur, and look for win-win solutions instead of trying to score points off each other. 

When your partners have reached common ground on what the goal is, then let the work begin. You and your partners should also establish a clear performance indicator that allows you to measure your performance towards the goal. You should also set targets so that you can keep track of any possible problems that might occur. 

To be honest, this is the most crucial step in these secrets. You should understand that without trust, your Joint partnership will fail. There is no need to paint the truth to make it appear nice. Every team needs trust amongst themselves. Imagine having companies merging together, having diverse cultures, languages, and interests without trust. How do you think that ship will sail? When you have trust in someone, their differences turn into strengths. You will also tend to encourage creative challenges just to promote collaboration. This is an important factor that should not be ignored in your joint business planning.

This is another important variable that needs to exist in a Joint partnership because, without it, things will fail to happen. Invest in leadership, don’t focus on the senior leader, because even those leaders at the pointy ends will do just great. The reason for this action is that leaders tend to be the biggest opportunity to shift performance. You need to have a strong leadership team. And they must trust each other, connect, listen, and engage like no other. 

Joint Business Plan Template Checklist

To summarise all that is been said in this article, we have also included a sample template checklist that can help you prepare for and plan a successful Joint business. To make use of this joint business plan sample template effectively, you have to make sure that you follow all the options listed below. They include:

This is a joint business plan template you need to check off your list. Determine how ready you are, is your business also ready for the change? You can determine this by researching on the activities of other businesses. You can also carry out a SWOT analysis of your business. Compare your working methods with that of your partners and also involve your employees, tell them about your new plan.

This is been mentioned again for those at the back. It is crucial to choose the right partner. When choosing you should consider their existing customers and suppliers, their behavioral patterns, and also the available finances of the partners. 

Know the capabilities of your partners, and discover which has a specified responsibility. It can be sales activities, marketing, or new business generation. Each company should understand what they should work for and see that they achieve it. 

Most times, we should consider all possible factors because of the fear of the unknown. Your agreement with your partners should make provisions for terminating the joint partnership. In your agreement, make sure to include an exit strategy , specified ownership of assets in the business, and distribution of any weaknesses resulting from the joint venture. 

We got you, just right in time. We understand where it pains the most and we also understand why you would have so much difficulty creating a joint business plan for yourself even with the provision of a sample template. If this is you, then you need not worry.

Creating a business plan from scratch is no child’s play. It can even be harder while trying to use an existing plan to mold yours. You don’t have to if you don’t want to, because we have created a ready-made joint business plan just for your comfort.

This business plan does not require you to spend most of your day trying to figure out one section or the other. All you need to do is to apply directly to your joint business and watch it blossom. No long talks! Grab a copy of your joint business plan here !

It is certain that having Joint business planning can be difficult and challenging with tons of risks to take. But there is always a way around every hard obstacle. If you carry your Joint partnership and nurture it in the right way while following all the rules that apply, then you won’t have a problem.

These rules can be either creating a Joint Business plan or following some basic factors that can help maneuver your way through the investment or even using a sample template. When you follow the rules and secrets that guide them, then your investment won’t be the same. If it gets too hard, then contact us here.

To acquire a successful joint business plan, you need to ensure that both parties involved are capable of understanding each other’s goals. They should also understand the nature of their business and customer requirements. When they are on a mutual level, their foundation becomes strong.

To set up your joint business in the United Kingdom you will need to check the exact legal status of the new business. You can also begin due diligence on your joint partners. Know the financial commitment and how profits can be earned.

Before splitting the profits in a joint business, you must ensure that all business partners are in agreement about the profit-sharing. It can be split equally or on a different base according to the original agreement.

Related Articles

• SETTING UP A PARTNERSHIP: How to Start a Business Partnership In simple Steps
• JOINT MORTGAGE: Simple Guide To The Processes
• JOINT LIFE INSURANCE: Guide to Life Insurance Plan

Kenechukwu Muoghalu

Kenny, an accomplished business writer with a decade of experience, excels in translating intricate industry insights into engaging articles. Her passion revolves around distilling the latest trends, offering actionable advice, and nurturing a comprehensive understanding of the business landscape. With a proven track record of delivering insightful content, Kenny is dedicated to empowering her readers with the knowledge needed to thrive in the dynamic and ever-evolving world of business.

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9 Directions to revamp your Joint Business Plan

• December 21, 2022
• Retail Experts

Why Revisiting JBP is important?

We are in a challenging economic situation where cumulative trends are creating tension for both retailers and their suppliers:

• Decreased spending power
• Fear of an economic Recession
• Cost increases leading to both inflation and availability challenges

Besides, a few new business drivers have changed during the last years, challenging the existing business models:

• Rise and fall of e-commerce despite heavy investments
• Multiple assortment rationalization
• Lower shopping frequencies and basket value
• Thinner margins for both Suppliers and Retailers

In such a context, JBPs must ensure they address 5 requirements:

• Flexible Range Management to respond to shortages. quick shopper demand’s changes and maximize the sales of existing SKUs
• Much higher effective promotion plan to deliver higher returns on investment
• Integrate the diversity of each sales channel’s business drivers
• Ensure Shoppers (and their characteristics) are truly at the heart of each decision
• Your business with the Retailer is B2B, meaning that your JBP must fit in and support their business plans.

Remember that Retailers and Manufacturers are facing similar challenges. A well-planned and executed JBP is one of the difference makers that can promote your company as a Preferred Strategic Supplier. In this article, we share 9 ideas on what you can do to become this Preferred Strategic Partner.

A Joint Business Plan (often called JBP) is a process that helps retailers, and their suppliers solidify the objectives, the activities they want to execute and jointly monitor to achieve these objectives and their respective conditions for success.  

JBP is not new and has been a well-known practice for years, and is part of Key Account Management Activities, as described below by Bain & Company.

9 directions to revamp your Join Business Plan

1. align your mindset it’s all about the category and its shoppers -not your brand.

Of course, the JBP you are building is about your Brand. But remember: Retailers’ goal is to increase their category sales by increasing Shopper traffic and spending. Your Brand is just a tool. And you want your Brand to be one of the best – if not the best Tool – retailers will use.   What retailers are looking for when they build their categories plan is:

• Ensure Range completeness, and appeal to all Shopper Groups by Store format
• Product Availability ‍
• Attractive Promotions, but not create Promo Picker habits to Shoppers
• ‍ Price Image competitiveness compared to other Retailer competitors, not necessarily to be cheaper on all items • Make it Easy for Shoppers to find the products on the shelves (physical or digital)

When reviewing your JBP, ensure you are ticking all these boxes and can substantiate each point.

2. Know Your Retailer better than they know themselves ‍ Share their performances in the market

Whatever the strengths and depth of Retailers’ research capabilities, they can’t know everything. Still, retailers feed their decisions with numbers and data. And like their manufacturers, gaining market share is part of their priorities. Every bit of meaningful and quantified information you can share with retailers about their performances and benchmark, from your own Brands to the categories you service, will have 2 benefits:

• Increase the Retailer’s perception of the value you deliver
• Establish a legitimate and data-based benchmark to substantiate some of the activities and decisions you recommend in your JBP.

Below is an example of calculating Lost Opportunities Values by using other retailers’ performance data.

Such an approach should be applied to other metrics as well: volume, penetration , basket value, promotion intensity, …

3. Put Shoppers at the Heart of the Discussion Share about your understanding of Shoppers Decision Trees.

Shoppers satisfaction is the end goal for Both Retailers and Brands. Sharing critical shopper insights (from the retailer or from other retailers). Such an approach can bring massive value in building the Category together.  A robust Shopper Decision Tree with well-defined product attributes and the ranking of their importance is one of the most important insights into each Category. With such insights, Retailers can identify their Range Gaps (and maybe your range can fill some of these gaps), and improve their displays.

Therefore, you can use Shopper Decision Tree insights to share your proposed action plan on   ‍

1. New Items to close Category Range Gap 2. Product Display to ease Shoppers in finding your product on the shelf  

4. Strengthen the fit between your range and retailers’ expectations ‍ Make Range efficiencies as the Corner Stone of your Approach.

Shoppers visit stores because they want to buy the products that they want. To state the obvious, the range is the foundation of the Category (as well as the majority of its sales and profitability) With limited space for each Category, Retailers need to ensure that the selected items being displayed on the shelves deliver an optimal good return space.

It’s therefore critical for you to know what is the effectiveness of your Brand’s range. If your Brand’s sales contribution is higher than your SKUs’ contribution, you are in a good place. When your Brand offers products that are present across several sub-categories, you want to know what your effectiveness by sub-categories (see example below) is

The below chart presents Sales Share (Blue) vs SKU Share (Yellow) by subcategory. The higher Blue over Yellow, the better it is.

In summary, you will always want to measure your Brands’ effectiveness in 2 perspectives:

• From a sub-category view, to identify potential new items or items to remove • From a Brand view, to benchmark your Brand with the competitors  

Below is the action summary for each

5. Fish in pounds where Fishes are ‍ Focus on your Targeted Shoppers

The end of Covid19 restrictions in most markets generated a massive return of shoppers to stores. At the same time, the current economic recession has pushed shoppers to decrease their spending. More than ever, Promotions have become the major tool to entice shoppers and win as much share of wallet as possible.   In this context, traditional mass promotions might not always be the best option: they impact the margin of both Retailers and Brands. Additionally, the return on investment they deliver (in sales, in penetration, in basket growth…) is not optimal. Therefore, targeted promotions or campaigns can be an attractive alternative to consider for both parties. A collaborative approach using Loyalty data can be easily setup as soon as both agrees on:

•  Which customer segment to target (you want both to focus on big spenders) •  Which products to select (you don’t want their promo selling price to be too much higher than the average selling price) •  Which mechanics to choose

6. Make each planned campaign count ‍ Be more precise and quantitative about the objectives and the tactics you choose  

In addition to the standard financial KPI you can assign to your campaigns, understanding how shoppers respond to your brand activities can also be very valuable.   The first thing you want to do is to be crystal clear on what you want the campaign to achieve. Do you want to drive traffic to your brand (i.e. acquire new shoppers, even if they don’t spend much, so you can work with them again later)? In that case, penetration and number of transaction growth will be important to measure. ‍ Or Do you want to drive spending to your brand (i.e. existing shoppers will spend more)? In that case, the number of items purchased as well as the average selling price of the items purchased will be important to measure. Once you have solidified your objectives, the 2 nd thing you want to do is, with your retailer, ensure that the mechanics you will select will support your campaign objectives.

7. One size doesn’t fit all ‍ Strengthen the offer by channel to gain Shopper wallet share.

One shopper could shop for all the store types. However, they chose the store format differently based on their shopping mission.   Multi Format Retailers is an excellent place for your brands to please the different Shopper Types. You can drive the commercial offers for

– Family shoppers to do one-stop shopping in Hypermarkets – Household buyers in Supermarkets – Conveniences Shoppers in Convenience stores

The more you study about each channel’s shopper behaviors, the more you can build collaborative tactics that will deliver results.  This channel-based approach should ideally be applied to each of your Brand’s sales drivers.

Below is an example of the offer’s differentiation by channel

8. Give meaning & Purpose to Business Reviews Make it collaboratively and ensure it delivers a Win for the Category

Remember that for your retailer counterpart, his or her performances are assessed on the Category growth, not your Brands’ growth. In their perspective, a great JBP is on which clearly explains and details how the Category is going to be (positively) impacted. This fact should be the beacon that drives your approach at each stage of the JBP, from the analyses of past performances to measured deliverables you expect to achieve with your proposed strategy and tactics.

“Them, us, fit and action” is the structure to be systematically applied.

An obvious recommendation: the review of each of the retailer’s business performance you address in your JBP is factual , not judgmental.

9. Leverage technology in the meeting room to accelerate & improve Decision Making Don’t be stalled because you didn’t have the right numbers.

Each of the actions you will propose must be legitimated by numbers. Some of the actions will be agreed, some adjusted, some challenged, some rejected. The point is that for all the arguments you will make, they also need to be supported by data if you want to have a chance to influence and convince. You can prepare some of the objections in advance ,identify some of the decisions you know will be a hard sales. But you can’t prepare them all. Still, you must be ready to provide supporting numbers and analyses at any time. So, bring your online category management tool with you and run, jointly, all the analysis and diagnostics you need in no time. Decide. Move to the net point.

Below is an example of a category diagnostic tool

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Joint Business Plan: what's the point? .

It’s around this time that manufacturers and retailers agree joint business plans, or JBPs, for the coming year. But JBPs can be a very mixed bag, so if you’re going to do one, it’s essential you do it in the right way and for the right reasons. JBPs come in just three flavours, so which one is right for each of your major relationships?

The Sales Plan:

It’s the most common form of JBP but, in reality, it’s nothing more than a 12-month promotion calendar. Periods of trading, interspersed with launches and deals. It’s a low-value exercise. At best it helps you coordinate activity, stock, and investment across the year, but it’s never going to transform your businesses, so don’t waste much time on it.

The Battle Plan:

This flavour of JBP is really a competitive negotiating tool, to be used to gain specific commitments and concessions. A retailer may be offered extra promotions for a cost price increase. A manufacturer might be promised volume growth in return for more investment. The numbers in the plan are only there to support the negotiation, and to be used as a beating stick, for one side or the other, during the year. It’s a hard-nosed deal for a 12-month period, so it needs time, focus and planning.

The Strategic Plan:

The “strategic” JBP is very different. It requires an open, collaborative relationship. It starts with an ambitious vision of where the relationship could be in the future, where it could add genuine value for customers, and where it could create something new, different and worthwhile. The strategy is as much about joint initiatives as it is about buying and selling, and it may outline a plan that will run for the next several years.

BOTTOM LINE:  you can’t collaborate with someone intent on competing with you. But for those relationships where you can collaborate, the rewards from a strategic JBP can be huge. Choose the right approach, set appropriate objectives, and adopt a style to maximise the opportunity. Don’t waste your time going through the motions – there’s really no point.

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Ten Best Practices for Better Joint Business Planning

We recently led an alliance team through an alliance business planning session.  Through that process we captured a number of best practices that lead to better business planning and ultimately better performing alliances.  Here is what we learned:

•  Develop the business plan with your partner.  Successful alliances are win/win/win . Your partners’ strategic objectives, resources, commitment and creative insight are critical to the process and to a successful outcome for you, your partner, and your joint customers.
• Use the templates and checklists as stimuli for thought not a rigid formula.  Your alliance is unique. The value creation thought process and business plan should reflect that.
• Build from the specific to the general.   You may find that over several initiatives you have 80% commonality, but it is that 20% differential that makes for a successful joint offer.  Specifics make an impact – generalizations put you to sleep.
• Articulate the differentiation in the solution clearly, unambiguously. Contrast with the competition…50% more scalable than .
• Individual value propositions should include specific descriptions of how value is created, so that a reader not in the alliance understands it. You will be describing the value of this alliance to executive management and other stakeholders.
• Include customer value and metrics .Hard metrics on customer value ie. “reduces deployment costs by 7%”, gives you a compelling reason to get in the door with customer decision makers and energizes the sales teams to engage collaboratively.  Value props that impact customer business model are especially compelling i.e. increased competitive advantage for your customer. Focusing on your customer maintains common vision between partners.
• Keep focus on specifics: – “saving millions per drill head” is a more powerful vision than ‘saving costs’; “ saving up to $5M per well” even better! Same for alliance objectives, again, the best have very clear, numerically stated objectives for both partners and customer.
• For each metric establish a baseline “where you are today” and a goal “where you want to be in 6 mo, 1 yr”
• Identify risks and obstacles to success and include risk mitigation and contingency plans
• Evaluate your sales and marketing value props from the sales perspective.  Are they strong enough to compel you sales teams to want to sell with a partner?
• Bonus Best Practice: Relationship strength is critical in an alliance.  Measure it regularly via partner health checks and proactively manage the relationship.

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Why Joint Business Planning is the Key to Success for McKinsey and Other Companies

By knbbs-sharer.

The world of business is an ever-changing landscape, and businesses need to be able to adapt and evolve to stay competitive. One of the ways companies can stay ahead of the pack is through joint business planning. McKinsey and other companies have found that joint business planning is an excellent way to improve their business outcomes.

What is Joint Business Planning?

Joint business planning (JBP) is a way for two or more companies to work together to achieve shared business goals. It’s a collaborative process that involves identifying strengths and weaknesses, opportunities and threats, and jointly developing a plan to achieve success.

JBP is typically used when two or more companies have a vested interest in achieving a shared goal, such as launching a new product or service. By working together, companies can leverage each other’s strengths and resources to achieve success.

The Benefits of Joint Business Planning

There are many benefits to joint business planning. Some of the main benefits include:

1. Improved communication: JBP requires regular communication between both parties. This helps to build strong relationships and ensures that everyone is on the same page.

2. Shared responsibility: Both parties share the responsibility of achieving the shared goal. This creates a sense of shared ownership and accountability.

3. Improved decision-making: Joint business planning involves a collaborative approach to decision-making. This helps to ensure that decisions are made based on a range of perspectives and considerations.

4. Leveraging of resources: By working together, both parties can leverage their respective resources to achieve success. This can include manpower, expertise, and finances.

How McKinsey Uses Joint Business Planning

McKinsey is one of the world’s leading consulting firms, and JBP is a critical part of their success. McKinsey works with clients to develop a JBP that aligns with their business goals and objectives.

McKinsey’s JBP process involves:

1. Defining goals and objectives: McKinsey works with clients to identify their business goals and objectives.

2. Identifying key performance indicators (KPIs): McKinsey works with clients to identify KPIs that will help to measure the success of the joint business plan.

3. Developing a roadmap: McKinsey and the client work together to develop a roadmap for achieving the shared goals and objectives.

4. Regular check-ins and adjustments: McKinsey and the client regularly check in on progress and make adjustments as necessary.

By using JBP, McKinsey is able to deliver exceptional results to its clients.

Joint business planning is a powerful tool that can help companies achieve their business goals and objectives. With improved communication, shared responsibility, and leveraging of resources, companies can achieve success that they may not have been able to achieve on their own.

McKinsey and other companies have shown that JBP is a valuable approach that can be used to drive success. By working together, companies can achieve more than they ever could on their own.

(Note: Do you have knowledge or insights to share? Unlock new opportunities and expand your reach by joining our authors team. Click Registration to join us and share your expertise with our readers.)

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Joint Business Plan: What It Is and How to Create One with Your Partners

Are you struggling to align your business goals with your partners? Look no further than a joint business plan. This collaborative approach allows for clear communication, shared expectations, and ultimately, success. Learn how to create one with our guide and take your partnership to the next level.

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Are you tired of working with partners who seemingly have different priorities? Does your business lack direction or goals that are aligned with the vision and values of your company? Well, we have good news for you! A joint business plan might just be the solution you need. A joint business plan is a powerful tool that enables you and your partners to set clear objectives, develop strategies, allocate responsibilities, and align your efforts toward a shared vision. So, whether your business is just taking off or it’s been around for a while, a joint business plan can help ensure its success. In this article, we will guide you through the process of creating a joint business plan with your partners, step by step. Trust us; this is something you don’t want to miss!

Table of Contents

1. unleashing the power of joint business plans, 2. why joint business planning is crucial for your partnership, 3. collaboration that works: how to create joint business plans, 4. the benefits of joint business planning, 5. step-by-step guide to crafting joint business plans, 6. assessing your partnership: the first step in joint business planning, 7. aligning your goals: a key element in crafting joint business plans, 8. creating the perfect joint business plan: tips and strategies, 9. implementing and executing your joint business plan, 10. evaluation and review: tools for improving your joint business plan, 11. taking your partnership to the next level with joint business planning.

• 12. Closing Thoughts: Harnessing the Power of Collaboration with Joint Business Planning

Our Readers Ask

Final thoughts.

Joint business plans (JBPs) are the secret recipe for unlocking formidable results in business. JBPs involve collaboration between two or more companies to craft a strategic plan aimed at delivering mutual benefits. When companies partner using JBPs, they can leverage each other’s strengths and use them for the benefit of the collective. This strategic collaboration also enables companies to share risks, maximize profits and enhance their competitive advantages.

Successful JBPs require comprehensive planning, execution, and review. Companies involved in JBPs must align their visions and goals to minimize conflicts and create a symbiotic relationship. With proper planning and strategy, JBPs can help companies create fresh opportunities, increase market share, boost sales, and drive innovation. By working together, companies can achieve what they would have failed to accomplish independently. It’s high time businesses embraced JBPs as they have a proven track record of expanding boundaries and growing businesses beyond what they thought possible. Through JBPs, businesses can harness existing experience, put their strengths to work, and foster productive partnerships to achieve valuable results.

Joint business planning is an essential aspect of building a successful partnership. At the heart of any partnership is the goal of achieving shared success, but this can’t be achieved without a clear plan in place. Joint business planning involves setting out a detailed, actionable plan that identifies specific goals, milestones, and responsibilities. Successful partnerships are built on a foundation of collaboration, and joint business planning is the cornerstone of this.

One of the key benefits of joint business planning is that it creates a shared understanding of what success looks like. This helps all parties to work towards the same goals, aligning their efforts to achieve a common purpose. Joint business planning also promotes accountability and transparency, providing a clear framework for measuring progress and evaluating success. By working together to develop a joint business plan, all parties have a clear view of what needs to be done, how it will be achieved, and who is responsible for delivering it. In short, joint business planning is crucial for any partnership that wants to achieve sustained success.

Creating joint business plans can lead to effective collaboration between businesses. When creating these types of plans, it’s crucial to have a clear understanding of each other’s objectives and goals. By working together, businesses can help each other identify any potential roadblocks and develop strategies to overcome them.

When developing a joint business plan, communication is key. Each party should be open to sharing their ideas and concerns. It’s essential to discuss each other’s strengths and weaknesses and to create a plan that will allow both businesses to benefit. By working together, businesses can find new opportunities to grow their customer base and improve their products and services. To ensure that the plan is successful, both parties should commit to it and stay focused on the end goal.

Joint business planning is a powerful approach that brings together two or more companies to work together strategically. It involves close collaboration to achieve common goals, share resources, and most importantly, boost profitability. The idea behind joint business planning is to create a win-win situation for all companies involved.

One of the significant benefits of joint business planning is stronger relationships between companies. This approach helps to foster positive relationships between partners, which can lead to long-term collaboration. Moreover, joint business planning allows each business to bring its strengths to the table. This helps to create a much stronger overall strategy, which can be leveraged to gain a competitive advantage. In turn, this can lead to increased revenue and profitability for all parties involved. Joint business planning is a valuable tool for any company looking to expand its revenue streams and reach new customers while maintaining quality relationships with its partners.

Crafting a joint business plan with your partner can be a daunting process. But don’t worry, we have compiled a step-by-step guide to make this process as smooth as possible. So grab your favorite drink, sit back, and let’s get started!

1. Align your Goals & Objectives: The first step in crafting a successful joint business plan is aligning your goals and objectives with your partner. It is crucial to have a clear understanding of each other’s vision, values, and desired outcomes. Identify your strengths, weaknesses, opportunities, and threats to come up with a plan that leverages both partners’ strengths and mitigates weaknesses. Keep an open mind and be flexible as the process of aligning your goals can take time. Remember, the goal is to build a sustainable and mutually beneficial partnership. 2. Identify KPIs & Milestones: Once you have aligned your goals, it’s time to get down to business and identify the key performance indicators (KPIs) and milestones that will help measure progress towards your goals. These KPIs should be specific, measurable, achievable, relevant, and time-bound. It’s also essential to set realistic milestones that will help you track progress against the plan. The key is to focus on a few critical KPIs and milestones that will drive the desired outcomes. Remember, it’s better to have a few well-defined KPIs than too many that can cause confusion and lack of focus.

Assessing your partnership is the crucial first step in joint business planning. Your success in business hinges on the strength and health of your partnership, so it’s crucial to determine and evaluate where you stand in terms of communication exchange, accountability, and performance.

It’s essential to assess if you and your partner(s) have a clear understanding of roles, responsibilities, and goals. This process involves reviewing each partner’s contribution to the business, identifying strengths and weaknesses, and decision-making strategies. We recommend identifying Critical Success Factors (CSFs) to measure the progress of your partnership. CSFs could include customer satisfaction, productivity, quality of work, and timely completion of tasks. This assessment should be repeated at regular intervals, at least once a year.

When crafting joint business plans, aligning your goals with your partner’s is crucial. Without this, you may find yourselves hitting roadblocks or even worse, going in completely opposite directions. To avoid this, it’s essential to communicate clearly and frequently with your partner and make sure everyone is on the same page.

One effective way to align goals is to create a shared vision. This should include a clear understanding of what both parties hope to achieve and how it will benefit each other. Don’t be afraid to brainstorm and get creative in generating ideas for this vision. Once it’s established, use it as a reference point and constantly refer back to ensure you’re both working towards the same goals. With a clear vision in place, you’ll have the foundation needed to drive your joint business plan forward.

Joint business plans are essential for successful partnerships, and creating the perfect one requires careful planning and execution. A well-crafted business plan can help you and your partner brainstorm innovative ideas, establish goals, and identify potential challenges and solutions. To ensure that you create a joint business plan that meets both of your expectations, consider the following tips and strategies.

1. Define your goals and objectives: Before starting, it’s essential to define the goals and objectives of your partnership. Take the time to understand each other’s business priorities, strengths, and weaknesses, and how you can complement each other. Clarifying your goals will help you set the direction for the business plan.

2. Communication is critical: Good communication is vital when creating a joint business plan. Make sure you and your partner are on the same page and have open lines of communication throughout the process to capture new ideas and avoid misunderstandings. Regular meetings and progress updates will also help keep everyone aligned and ensure that you stay on track toward your goals. With these tips and strategies, your partnership can be successful and result in a formidable joint business plan.

Now that you and your partner have crafted a comprehensive joint business plan, it’s time to put it into action. The success of your partnership relies heavily on how well you execute the plan. In this section, we’ll cover some essential steps to take in implementing your joint business plan.

First, it’s vital to assign responsibilities correctly. You and your partner should establish clear roles and expectations for each team member involved. Don’t leave any room for confusion or ambiguity. Next, create a timeline with specific deadlines for action items. Once you’ve established a timeline, stick to it as closely as possible. Make sure to communicate frequently with your partner to make sure progress is being made. Lastly, be prepared to make some adjustments along the way, as things may arise that are beyond your control. By working together proactively and communicating effectively, you can successfully execute your joint business plan and achieve your business objectives.

As with any business strategy, evaluating and reviewing your joint business plan is crucial to its success. By doing so, you can identify areas where you need to adjust your approach and make changes that will help you achieve your goals. Fortunately, there are several tools you can use to make this process easier.

First, consider using a SWOT analysis. This involves analyzing your plan’s strengths, weaknesses, opportunities, and threats. You can use this information to refine your strategy and make it more effective. Other tools include regular check-ins with your partner, tracking your progress with specific metrics, and seeking feedback from customers and other stakeholders. Whatever method you choose, make sure you are regularly evaluating your plan’s effectiveness and making changes as needed to stay on track.

Another critical tool for improving your joint business plan is to conduct regular reviews. This can involve reviewing your progress against your goals, analyzing any roadblocks or challenges you’ve encountered, and brainstorming new ideas for growth and development. These reviews should be conducted on a regular basis and involve all stakeholders to ensure that everyone is on the same page and working towards the same goals. By taking the time to evaluate and review your plan, you can ensure that you are always moving forward and continually improving your partnership.

Now that you have established a great partnership with another business, it’s time to take things to the next level. Joint Business Planning is a strategic process that allows both businesses to work together to create a plan that benefits all parties involved. This is an excellent opportunity to align goals, prioritize initiatives, and create a roadmap for success.

Joint Business Planning involves collaboration, communication, and open-mindedness. Both businesses should be willing to share insights, resources, and challenges to achieve the best possible outcomes. Through this process, you can identify opportunities to grow revenue, increase market share, and optimize operations. Moreover, this process ensures that both parties are on the same page in terms of timelines, budgets, and expected outcomes.

Here are some tips to ensure that your Joint Business Planning process is successful:

-Create a shared vision and mission statement that aligns with both businesses’ core values and objectives. -Develop a clear methodology that outlines goals, strategies, and metrics for success. -Identify areas of expertise and assign individuals to take responsibility for specific tasks. -Set realistic timelines and budgets for project phases. -Be transparent, open-minded, and willing to compromise for the greater good.

By investing time and effort in Joint Business Planning, you can take your partnership to the next level and achieve great things together.

12. Harnessing the Power of Collaboration with Joint Business Planning

Joint Business Planning (JBP) is not just another fancy corporate buzzword. It represents a powerful tool that allows collaborators to examine their respective strengths and weaknesses to achieve a common goal. Collaborative teamwork that rests on transparency, honesty, and mutual trust is key to the success of a JBP. In this era of intense competition, JBP has become an essential component of the business strategy that enables companies to survive and grow. Therefore, companies that are willing to harness the power of collaboration as facilitated by JBP are best positioned to succeed in today’s marketplace.

Remember, the JBP process is not a one-time event. It is a continuous process that requires the active participation and commitment of all parties involved. JBP has proven to enhance cohesiveness, efficiency and ultimately the profitability of businesses. It gives the collaborators the best chance of achieving their goals in a way that benefits all parties. Harnessing the power of JBP enables businesses to save costs, reduce risks, and increase revenues by tapping into the knowledge, resources, and expertise of others with complementary skills. So, put your ego aside, and start exploring the benefits of JBP, as it is a proven method to achieve success in the world of commerce.

Q: What is a joint business plan? A: A joint business plan is a document created in collaboration with your business partners that outlines key objectives, strategies, tactics, and timelines for achieving common goals. It’s essentially a roadmap for success that everyone can agree on and work towards achieving.

Q: Why is creating a joint business plan essential? A: Creating a joint business plan is crucial because it helps align the objectives and strategies of all parties involved. It reduces misunderstandings and conflicts that may arise from different interpretations of goals and expectations. Additionally, it ensures that everyone is on the same page and working towards the same end result.

Q: How do you create a joint business plan with your partners? A: To create a joint business plan, start by coordinating with your partners to determine shared objectives, values, and priorities. Next, identify key performance indicators (KPIs) and milestones to help measure progress and track success. Develop targeted strategies and tactics for achieving these goals, and establish clear timelines and accountability measures.

Q: Who should be involved in the joint business plan process? A: Ideally, all partners should be involved in the joint business plan process. This includes stakeholders, executives, managers, and other key decision-makers. However, the specific roles and responsibilities of each individual may vary depending on the nature of the partnership and the goals outlined in the plan.

Q: What are some benefits of using a joint business plan? A: The benefits of using a joint business plan are many. It helps increase accountability, promote collaboration, and improve communication between partners. It also helps avoid misunderstandings and conflicts that can arise from differing interpretations of goals and expectations. Overall, it’s a powerful tool for achieving business success.

Now that you know about joint business plans, it’s time to take the leap with your partners and start creating a practical roadmap for your business. With a solid plan in place, you can achieve your goals faster and achieve success with ease. Remember, collaboration is key in every business, and in joint planning, you get to leverage the strengths of every partner, to maximize your output. So, don’t hold back, get your partners together, and create an effective joint business plan today. Trust me; it’s the best decision you’ll make for your business!

Business Writer

A dynamic business writer with a talent for uncovering the latest trends and innovations in the world of startups and entrepreneurship. With a background in finance and a passion for storytelling, Morgan’s articles offer a unique perspective on the challenges and opportunities facing today’s business leaders.

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Next-Generation Joint Business Planning

A group of industry insiders debate the current state of jbp but reach consensus on where it should be heading for the benefit of manufacturers, retailers and, ultimately, shoppers..

The best way to have a productive and meaningful discussion about joint business planning between consumer goods companies and retailers is to establish early on that everyone is talking about the same thing. That’s because joint business planning, or JBP, means different things to different people. “The term is really loose,” says Patrick Fitzmaurice, CEO and “head farmer” of Caterpillar Farm, an organizational change-activation consulting firm based in Atlanta. “It would be interesting to put a stake in the definition of what we mean when we talk about JBP.”

Trying to nail down one specific definition based on interviews for this article was a flummoxing and ultimately futile exercise, but though there was no consensus on what JBP means and entails currently, there was a convergence of views on what it means and entails ideally. What came into focus is a vision of next-generation joint business planning, shaped by current and projected disruptions in retail. Modeling the JBP process of the future is beyond the scope of this article, but from those interviews, Path to Purchase IQ has distilled some of the essential elements.

The Prerequisites

By definition, JBP is collaborative, but in practice, manufacturers and retailers often aren’t truly collaborating. Instead, they’ve just slapped a new label on business as usual. Traditionally, a manufacturer’s sales rep met annually with the retailer’s buyer to discuss operating plans, including basic logistics and pricing, and the relationship that grew out of that was transactional, tactical and, inevitably, adversarial.

This relationship based on jockeying isn’t conducive to JBP, which requires true collaboration for win-win results. Going forward, for JBP to work, the plan must be co-created, the timeline longer and the approach cross-functional.

Trust is a sine qua non of JBP because of the transparency and exchange of information required of both parties. Each partner needs to understand the other’s business, its target shopper and its strategic goals. This understanding forms the basis of a mutually beneficial plan, and the open exchange of information – within the context of a confidentiality agreement – allows for its co-creation.

Trust isn’t the only foundational element that must be built. “I call it getting your house in order – developing supports internally before even having JBP discussions,” says Mike Holcomb, managing director of The Partnering Group (TPG), a Cincinnati-based consulting firm that works with manufacturers and retailers on collaborative planning. Without pillars in place, from the right technology to properly trained people, even the most smartly conceived plan will fail to reach its potential.

Because next-gen JBP requires resource reallocation and role changes internally, change management and cultural shift must take place. Toppling siloes, breaking habits and rethinking job descriptions are part of this process because JBP requires cross-functional connectivity, among other new paradigms in supplier-retailer relations. “Businesses run on systems that are slow to change – process systems, technology systems, people systems,” Fitzmaurice says. “A lot of legacy systems are holding manufacturers and retailers back from creating higher-order strategic initiatives.”

The Players

Traditional planning at the category manager and retail buyer level does not rise to the level of JBP. “Higher-level strategic planning, when done well, has a broad set of players who contribute in some way to the overall plan and its execution,” says Anne Chambers, CEO of Capre Group, an Atlanta-based sales and marketing consultancy that helps clients with JBP 2.0, which it calls “collaborative partnership planning.”

Disciplines involved in that planning process include shopper insights, shopper marketing, loyalty, category management, merchandising, sales, revenue growth management, supply chain, e-commerce and others. Team members are connected and aligned throughout each other’s organizations. “Defined roles and aligned performance metrics keep all parties focused on mutual goals,” Chambers says.

Omnichannel retailing, e-commerce, voice shopping and other developments bring more players to the team and “have an impact on the overall JBP process,” says Steve McGowan, regional vice president of shopper and consumer activation at Mondelez International. “Some additional people are included from both sides, and the strategic planning and alignment takes a broader look at the shopper journey to ensure that all touchpoints are being met.”

Bringing in this many players, and giving them new demands and priorities, makes leadership endorsement critical. “Leadership plays such a key role with change management and creating momentum in the organization,” Chambers says. “People need to understand this is a permanent shift; it’s the way we go to market now.”

Senior-level involvement is imperative on both sides to ensure follow-through and accountability. Though not bogged down in every detail, leaders oversee the entire process, from approving plans and allocating the necessary cross-functional resources to evaluating the results.

Arguably, the most important player is one who is never physically present: the shopper. A shopper-centric approach inspired by the needs of the partners’ mutual customers becomes the game plan for “the trifecta – the win-win-win for the shopper, retailer and manufacturer,” says Christopher Brace, founder and CEO of the New York-based marketing strategy firm Syntegrate Consulting.

Next-gen JBP requires significant time and resources. As a result, “Some retailers are backing away from the formal JBP work while still having really strong business plans with their strongest suppliers,” Holcomb says. Those that do engage in JBP do so strategically and selectively. “The manufacturers doing true JBP are working with two or three retailers in the country, and retailers are maybe doing it with four to six suppliers.”

The Process

Three essential elements of JBP are transparency, collaboration and agreed-upon performance indicators. “KPIs [key performance indicators] ensure that both sides are working against a consistent set of metrics that will help drive each respective business,” McGowan says.

Currently, collaboration tends to be lopsided, “but JBP at its best entails that the retailer and the brand co-create programs that meet the needs of the brand, the retailer and the shopper equally,” says Brace, adding that retailers prefer partners who demonstrate they understand category growth drivers and have a category-first mindset. “A common mistake is going to the retailer and talking all about the brand instead of starting out by saying, ‘Here’s what we know about you and your growth strategy, your strategic priorities and your strategic challenges, and here’s how we can help you meet those challenges.’ Another mistake is showing up with a program idea that’s too fully baked to allow for retailer input.”

Manufacturers with a good handle on consumer, shopper and category insights for their brands need to go the extra mile “to customize for the individual retailer’s shopper,” says Karen Sales, founder of Boise, Idaho-based sales and marketing firm KSMarketing and formerly vice president of shopper marketing at Albertsons.

Category comes before brand, insights inform the conversation, and each side helps solve the other’s long-term business challenges by pooling resources. According to Fitzmaurice, if there’s one question that drives the planning process, it’s this: “Where is there growth we could be capturing together?” Partners reach an agreement on activities that will drive growth for both of them, as well as financial and nonfinancial targets, relevant KPIs, responsibilities and timing.

The traditional 12-month planning cycle is too short for JBP. A time horizon of two or three years makes more sense “in the current landscape where so much can change in so many areas – commodities, shipping, e-commerce, media and measurement tools, supply chain, overall footprint,” says Sales. “Set a joint target and have a rolling plan you are working against with quarterly check-ins and annual reviews.”

Technology will facilitate collaboration and program management. Shared access to a dashboard, with a common scorecard, will allow for ongoing joint reviews of the plan’s execution. Both parties can track agreed-upon performance measures. When those metrics are below par, the team can take corrective actions.

The written plan is both the product of the process and the continuation of the process. In other words, the plan is a process. Based on mutual objectives and opportunities, it commits to writing the agreed-upon initiatives and activations; how and by whom they will be implemented; project milestones; expected benefits including return on investment; and performance metrics and results.

So parties can anticipate and react swiftly to changing market conditions, a joint business plan should take market trends and forecasts into account. Once the plan is deployed, partners continuously evolve it based on real-time results and market shifts. The retail industry is rocked by near-constant disruptors, and part of the plan’s purpose “is to adapt to those challenges and lay out how to positively leverage or counteract them,” Holcomb says.

Milestones include periodic check-ins when partners revisit the plan. “In most cases there’s usually an annual broader strategic alignment session followed by periodic check-ins on a quarterly or monthly basis to ensure we are all tracking and working against the collectively agreed-upon objectives,” McGowan says.

The performance metrics typically take the form of a joint scorecard with two sets of metrics. “One is the traditional category-health metrics of volume, sales and profit,” Chambers says. “The second set of metrics measures the progress on category strategies. These are specific to the strategy and may include metrics like trips, basket or shopper penetration.”

The financial benefits of next-generation JBP are evident on the scorecard, but beyond that are organizational benefits and – most importantly – benefits for the shopper. Many retailers and manufacturers have work to do before laying claim to those benefits or conferring them on the shopper. As Fitzmaurice sees it, the parties’ main problem is they’re not talking the talk, let alone walking the walk, when it comes to business planning. “Their discussions still focus on product and price issues instead of providing a better commerce experience,” he says.

Right now, few have mastered true JBP, says Brace, but that just means there’s a vast frontier with plenty of opportunity. “If you’re the first in your category to do it, you’ll gain a competitive edge,” he says. But hurry, “because that’s where the industry is headed.”

JBP 2.0 Cheat Sheet

Ante Up: What Both Sides Should Bring to the Table

• Cross-functional resources

• Applicable technology

• Shopper data

• Consumer and shopper insights

• Current and future category growth drivers

• Trends (industry-, technology- and shopper-based)

• Relevant intellectual property

JBP Best Practices for Manufacturers

• Show you understand the needs of the retailer.

• Give retailers an opportunity to influence programs. Don’t show up with “fully baked” programs.

• Share insights as to why shoppers do what they do inside the store, which stems from their life as consumers outside the store.

• Identify what is emotionally meaningful to the shopper relative to your brand, your category and the retailer.

• Translate those insights into stories that can be told in the retail space and other touchpoints along the shopper journey.

Source: Christopher Brace, Syntegrate Consulting

What JBP is NOT

• Handled at the buyer/category manager level

• Tactical trade negotiations

• Category management

• Promotional planning

• Short-term planning

• Brand focused

How to Write a Business Plan: Your Step-by-Step Guide

So, you’ve got an idea and you want to start a business —great! Before you do anything else, like seek funding or build out a team, you'll need to know how to write a business plan. This plan will serve as the foundation of your company while also giving investors and future employees a clear idea of your purpose.

Below, Lauren Cobello, Founder and CEO of Leverage with Media PR , gives her best advice on how to make a business plan for your company.

Build your dream business with the help of a high-paying job—browse open jobs on The Muse »

What is a business plan, and when do you need one?

According to Cobello, a business plan is a document that contains the mission of the business and a brief overview of it, as well as the objectives, strategies, and financial plans of the founder. A business plan comes into play very early on in the process of starting a company—more or less before you do anything else.

“You should start a company with a business plan in mind—especially if you plan to get funding for the company,” Cobello says. “You’re going to need it.”

Whether that funding comes from a loan, an investor, or crowdsourcing, a business plan is imperative to secure the capital, says the U.S. Small Business Administration . Anyone who’s considering giving you money is going to want to review your business plan before doing so. That means before you head into any meeting, make sure you have physical copies of your business plan to share.

Different types of business plans

The four main types of business plans are:

Startup Business Plans

Internal business plans, strategic business plans, one-page business plans.

Let's break down each one:

If you're wondering how to write a business plan for a startup, Cobello has advice for you. Startup business plans are the most common type, she says, and they are a critical tool for new business ventures that want funding. A startup is defined as a company that’s in its first stages of operations, founded by an entrepreneur who has a product or service idea.

Most startups begin with very little money, so they need a strong business plan to convince family, friends, banks, and/or venture capitalists to invest in the new company.

Internal business plans “are for internal use only,” says Cobello. This kind of document is not public-facing, only company-facing, and it contains an outline of the company’s business strategy, financial goals and budgets, and performance data.

Internal business plans aren’t used to secure funding, but rather to set goals and get everyone working there tracking towards them.

As the name implies, strategic business plans are geared more towards strategy and they include an assessment of the current business landscape, notes Jérôme Côté, a Business Advisor at BDC Advisory Services .

Unlike a traditional business plan, Cobello adds, strategic plans include a SWOT analysis (which stands for strengths, weaknesses, opportunities, and threats) and an in-depth action plan for the next six to 12 months. Strategic plans are action-based and take into account the state of the company and the industry in which it exists.

Although a typical business plan falls between 15 to 30 pages, some companies opt for the much shorter One-Page Business Plan. A one-page business plan is a simplified version of the larger business plan, and it focuses on the problem your product or service is solving, the solution (your product), and your business model (how you’ll make money).

A one-page plan is hyper-direct and easy to read, making it an effective tool for businesses of all sizes, at any stage.

How to create a business plan in 7 steps

Every business plan is different, and the steps you take to complete yours will depend on what type and format you choose. That said, if you need a place to start and appreciate a roadmap, here’s what Cobello recommends:

1. Conduct your research

Before writing your business plan, you’ll want to do a thorough investigation of what’s out there. Who will be the competitors for your product or service? Who is included in the target market? What industry trends are you capitalizing on, or rebuking? You want to figure out where you sit in the market and what your company’s value propositions are. What makes you different—and better?

2. Define your purpose for the business plan

The purpose of your business plan will determine which kind of plan you choose to create. Are you trying to drum up funding, or get the company employees focused on specific goals? (For the former, you’d want a startup business plan, while an internal plan would satisfy the latter.) Also, consider your audience. An investment firm that sees hundreds of potential business plans a day may prefer to see a one-pager upfront and, if they’re interested, a longer plan later.

3. Write your company description

Every business plan needs a company description—aka a summary of the company’s purpose, what they do/offer, and what makes it unique. Company descriptions should be clear and concise, avoiding the use of jargon, Cobello says. Ideally, descriptions should be a few paragraphs at most.

4. Explain and show how the company will make money

A business plan should be centered around the company’s goals, and it should clearly explain how the company will generate revenue. To do this, Cobello recommends using actual numbers and details, as opposed to just projections.

For instance, if the company is already making money, show how much and at what cost (e.g. what was the net profit). If it hasn’t generated revenue yet, outline the plan for how it will—including what the product/service will cost to produce and how much it will cost the consumer.

5. Outline your marketing strategy

How will you promote the business? Through what channels will you be promoting it? How are you going to reach and appeal to your target market? The more specific and thorough you can be with your plans here, the better, Cobello says.

6. Explain how you’ll spend your funding

What will you do with the money you raise? What are the first steps you plan to take? As a founder, you want to instill confidence in your investors and show them that the instant you receive their money, you’ll be taking smart actions that grow the company.

7. Include supporting documents

Creating a business plan is in some ways akin to building a legal case, but for your business. “You want to tell a story, and to be as thorough as possible, while keeping your plan succinct, clear, interesting, and visually appealing,” Cobello says. “Supporting documents could include financial projects, a competitive analysis of the market you’re entering into, and even any licenses, patents, or permits you’ve secured.”

A business plan is an individualized document—it’s ultimately up to you what information to include and what story you tell. But above all, Cobello says, your business plan should have a clear focus and goal in mind, because everything else will build off this cornerstone.

“Many people don’t realize how important business plans are for the health of their company,” she says. “Set aside time to make this a priority for your business, and make sure to keep it updated as you grow.”

Joint Business Planning

Business planning with partners is one of the most effective ways to drive revenue and create joint accountability. Flexible and configurable to your needs, the joint business planning module enables you to build measurable objectives, execution strategies and tactics, go-to-market plans, target account lists, SWOT analyses and more. Once completed, analyze the effectiveness of your plan and identify areas that may need modification.

Collaborative Joint Business Planning & Execution

From within the joint business plan, manage all program requirements developed jointly with your partners and check both you and your partner’s progress against the plan.

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Joint Business Planning

Course Description

This approach to Joint Business Planning (JBP) is rooted in an alignment process between the customer and seller (Manufacturer, Broker, Suppler, etc) that produces breakthrough business plans. The objective of JBP is to drive alignment of goals, strategies and action plans between the two collaborative partners.

Learning Objectives

• Customer Profile Development
• Situation Assessment & Opportunity Identification
• Alignment Process focused on Priorities
• Joint Business Plan Session including Scorecards and Strategies
• Joint Action Plan Development and Work Teams
• Instructor led
• Experiential

Target Audience

Any person from a Manufacturer, Retailer, Distributor or Agency, within the Consumer Product Goods industry, who seeks a more advanced understanding of Joint Business Planning. Typical participants include roles such as Category Managers, Buyers, Merchandisers, Customer Team leaders, Account Executives, Marketing Managers, Pricing & Promotion Managers, Finance Managers, Business Managers, Operations Managers, Retail or Sales Strategy Managers, Trade Marketers, Supply Chain Managers, Category Analysts, etc.

Supported Behaviors

Strategic Business Planning Analysis & Insights Trading Partner Development

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How To Prepare a Business Plan for Government Contracting

A well-written business plan is key to success in the competitive government contracting industry. It is a roadmap that outlines a contractor’s experience, capabilities and expertise as an ideal partner in fulfilling government objectives.

Learn the basics of a great business plan for government contracting.

Table of Contents

What Is a Business Plan?

A business plan is a comprehensive document that details the contractor’s objectives, strategies and financial projections. It serves as a manual for growth, helping organizations secure funding, attract investors and obtain new business opportunities. 

Having a business plan provides an organization with a method method to operate objectively, evaluate the feasibility of a new business idea and increase the probability of success in government contracting. 

Selecting the Right Format for a Business Plan for Government Contracting

There’s no one-size-fits-all approach to creating a business plan for government contracting. The ideal format depends on the type of business and its specific needs and goals. 

Two standard formats dominate the business planning process: traditional and lean startup.

Traditional Business Plan

A traditional business plan format must be very detailed to explain the contractor’s capabilities, past performance and compliance history. Government agencies consider these factors necessary in selecting the right contractor.

• Widely used — The traditional business plan’s structured approach infuses detailed sections that account for all business components, making it best suited for a situation requiring thoroughness.
• Detailed analysis — This business plan type executes a thorough analysis, where every section must be critically examined. It is particularly beneficial for contracts requiring a robust track record and complex project management.
• Lengthy document — A traditional business plan is generally protracted, sometimes containing containing dozens after dozens of pages. This lengthy plan can prove advantageous when the level of information provided in the document increases the chances of winning a contract.
• Specific use cases — A traditional business plan is well-suited for large-scale projects or high-security contracts, where the ability to deliver according to rigorous specifications is necessary.

Lean Startup Business Plan

A lean startup business plan involves quickly testing and validating business ideas. This approach is commonly used by startups and early-stage companies to create a strategic roadmap. It focuses on identifying and testing key assumptions about the market, ensuring that resources are used efficiently for agile adaptation based on market feedback.

For example, lean startup principles were utilized in the creation of healthcare.gov, which was launched within just 90 days and at a significantly lower cost than typical federal government projects of a similar nature.

• Focus on essentials — A lean startup business plan prioritizes conciseness, emphasizing the most critical elements of the business strategy.
• Efficient approach — This format streamlines the planning process by focusing only on crucial information, allowing for a more efficient document creation process.
• Less common — While less prevalent than traditional plans, lean startups can be used by contractors seeking a concise and focused format. 

5 Helpful Tips for Preparing a Business Plan

1. Conduct Competitive Analysis and Market Research

Conducting market research and competitive analyses enables a contractor to identify specific targets and procurement needs of government agencies.

For example, contractors may need to analyze the contracts that the agency recently awarded to better understand the project scale, contract size and qualifications. With this information, they can tailor the business plan according to the agency’s requirements.

2. Showcase Capabilities and Accomplishments

A business plan must showcase a contractor’s capabilities and previous performance. It should detail the contractor’s contractor’s qualifications and expertise, focusing on certifications and industry recognitions that demonstrate the ability to deliver contract requirements within the given timeline and required budget.

This information can prove a business’ expertise and capabilities in handling the project and providing high-quality service.

3. Integrate Competitive Financial Analysis and Projections

Integrating competitive financial analysis and projections in a business plan can demonstrate a contractor’s ability to manage large government projects. The projected revenue, operating expenses and profit margins from the contract are recommended to be included in the study. 

Contractors seeking funding to acquire crucial systems and equipment must detail how these resources can enhance their ability to fulfill specific government contracts.

4. Ensure Compliance With Government Contracting Regulations

Government contracting comes with a unique set of compliance requirements and regulations. Compliance is vital to demonstrate a contractor’s commitment to ethical business practices and adherence to relevant laws. 

When drafting the business plan, outline quality assurance procedures and highlight the track record of meeting quality standards.

5. Follow IT Infrastructure Guidelines and Cybersecurity Measures

Depending on the type of contract, a contractor may be subject to some cybersecurity measures, security clearances and IT infrastructure guidelines.

The business plan should emphasize the contractor’s commitment to security awareness and employee security training to secure cybersecurity contracts. It should also highlight the ability to safeguard sensitive government data through firewalls, intrusion prevention systems and data encryption protocols. 

More importantly, the business plan must detail the contractor’s vulnerability management approach, incident response and disaster recovery for cybersecurity measures.

Microsoft 365 Life Hacks > Organization > Goals vs objectives: What’s the difference?

Goals vs objectives: What’s the difference?

Setting goals and objectives is essential for teams to achieve desired outcomes. However, there can often be confusion between the two terms when establishing plans to reach your desired result.

What is a goal versus an objective?

When crafting long-term plans, it’s crucial to break them down into actionable milestones or steps. Goals and objectives serve as indicators of progress toward completing a plan. Generally, a goal encompasses a longer and broader scope compared to an objective. For an aspiring fiction writer, examples of long-term goals include:

• Establish a successful career as a published YA author.
• Build a strong online presence and author platform.
• Diversify income streams and build income stability.

An objective represents a short-term, achievable outcome that defines a measurable action toward a goal. They are realistic targets that help you focus on what is important. Objectives that can help an author achieve their goal of establishing a successful career include:

• Complete the first draft of a novel manuscript.
• Submit the completed manuscript to a literary agent or publishing house.
• Secure a publishing deal for the novel within three years.

Put simply, objectives are accomplished to achieve a goal , and goals are accomplished to fulfill a plan. The distinction is important for breaking down and outlining tasks. By creating smaller milestones with objectives to achieve a goal, it becomes easier to accomplish tasks, effectively assign responsibilities, and complete a plan within an allotted timeframe.

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How to create goals

To achieve a plan, it’s important to create realistic, achievable goals to measure your progress. Creating effective goals involves:

• Identifying the desired outcome: Before you outline goals, determine what the desired outcome is. It can be a specific result, milestone, or accomplishment.
• Making Goals SMART: SMART is an acronym that describes key characteristics of a goal, which include specific, measurable, achievable, relevant, and time bound. Ensure your goals have these characteristics to keep your plan clear and focused.
• Aligning goals: If you’re working with an organization, confirm your goals align with your organization’s mission, vision, and other objectives.
• Breaking down goals: Once you have the larger goals, you can break them down into tasks, sub-goals, and objectives to track your progress.
• Reviewing and adjusting goals: Monitor the progress of your goals and adjust as needed.

How to create objectives

Once you have your broader goals outlined, it’s easier to breakdown them down into objectives. Key things to keep in mind while crafting objectives are:

• Make objectives specific and measurable: While goals can broader, it’s paramount your objectives are specific and measurable, so there is a tangible outcome when it has been completed. Objectives should outline actions, steps, and tasks that need to be accomplished in a clear and concise manner.
• Align with relevant goals: Make sure your objectives are connected to relevant goals for purposeful progress.
• Set a timeline: Set a clear time frame to create urgency and complete objectives timely.
• Ensure they are achievable: Set objectives that are feasible within the project timeline and allocated resources.
• Define success criteria: Clearly articulate the criteria that will indicate successful completion of each objective.

Objectives and goals are two important aspects of successfully executing plan. Establish clear goals that are measurable, specific, achievable, and relevant that can be effectively broken down into objectives. By understanding how goals and objectives work together, you can execute and achieve your plans. For more strategies for goal setting , learn more organization tips .

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Mid-Year Review: Business Committee proposes Joint Caucus Meeting  

By Elsie Appiah-Osei, GNA 

Accra, June 28, GNA – The Parliamentary Business Committee has proposed a Joint Caucus meeting on Wednesday, July 3, to discuss urgent matters in the preparation of the Government’s Mid-Year Review of Economic Policy.  

The Mid-Year budget review is expected to be presented by the Minister of Finance before the end of July. 

Mr Alexander Kwamena Afenyo-Markin, the Majority Leader and Leader of Government Business, said this on Friday on the Floor of Parliament during the presentation of the Business Statement for the fourth week ending July 5. 

“Mr Speaker, the Business Committee proposes that a Joint Caucus meeting be held on Wednesday, 3rd July 2024, after adjournment. Urgent pertinent matters would be discussed in preparation for the Mid-Year Review of the Economic Policy of the Government,” he said. 

He encouraged the Members of Parliament (MPs) to attend the meeting. 

In the ensuing week, the Business Statement noted that 12 ministers would attend upon the House to respond to 78 questions.  

Sixty-one of the questions would be oral with the remaining 17 expected to be urgent.  

The Education, Health; Finance; Roads and Highway; Energy and Gender, Children and Social Protection ministers would respond to questions on the Floor of the House. 

Other ministers include the Local Government, Decentralization and Rural Development; Transport; Employment and Labour Relations; Interior; Food and Agriculture as well as Sanitation and Water Resources. 

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