On Your Behalf

On Your

Behalf

Planning for 2022 – What else could possibly happen?

This is the time of year when many suppliers update their strategic plans and develop the coming year’s operating budget. Traditionally, making business assumptions regarding investment, program volumes, inflation and productivity have been important aspects in empowering teams to be successful in the coming year. If you get the “equation” wrong, motivation and morale can suffer. Get it right and teams will step up to the challenge.

With the unknowns more complex this year than at any other time in recent history, planning process for 2022 will need to be different. Every aspect of the automotive industry is in flux – volumes, technology, the economy, labor availability, and the pandemic to name a few. And while the many engineers reading this - including myself - will be disappointed, there is no correct solution to this equation. Developing a 2022 operating plan using traditional methods would be a bit like playing the lottery; you are betting on a million-to-one odds that your assumptions will be correct – unlikely at best!

So, how can leaders approach this coming year? 1. Define the equation: Start with your priorities – and keep eliminating unique priorities until you have three or fewer. 2. Determine the current variables necessary to solve the equation: Work with your team(s) to determine what they need to accomplish their priorities and how the company can provide the resources needed to get them done. 3. Ensure the equation has an answer (not an imaginary number): If you can’t connect the resources to the outcomes – something needs to adjust. 4. Re-evaluate often, insert the modified variables, and repeat #2 and #3: Re-evaluate weekly, monthly, or whatever timeframe works best for your teams, and be prepared to find different ways to enable them to achieve their priorities. If necessary, redefine the priorities and the equation.

Easy, right? Not so fast! Leadership during this time will be much more difficult and challenging than ever before. While this description is overly simplistic (yes, I realize this!), the key takeaway is to understand and accept the new level of adaptability and flexibility required to enable your teams and organization to be successful.

OESA is here to support you and your teams through this challenging time. Please reach out to me or any team member if we can be of assistance. I look forward to continuing to support the OESA membership during these uncharted times.

As always, please feel free to contact me at 248.430.5963 or jfream@oesa.org.

Julie A. Fream President and CEO OESA