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Product Strategy: A Guide With Examples and Best Practices

Sep 4, 2020

“What should we work on next?”

The question hangs in the air, laden with the heaviness that’s been growing inside you since you took on your new role as a product manager.

“It’ll be fun,” they said. “This is what you’ve been waiting for,” they said. And you believed them. Now you’re not so sure. You feel like you’re being pulled in every direction without anything to hang on to.

“Uh, Peter?” A voice cuts through your thoughts.

“Our product strategy,” you answer. “We should work on our product strategy,” you repeat with more conviction.

You’re right. You can’t manage a product without a strategy. When you finish this post, you’ll know what a product strategy is, why it’s important, and how to create one that’s perfect for you. And you’ll also get a few pointers for the execution of your strategy so you’ll have more insight about and control over your product delivery.

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What Is a Product Strategy?

According to Wikipedia, a strategy is “a general plan to achieve one or more long-term or overall goals under conditions of uncertainty.”

That last part is essential.

Without uncertainty, you don’t need a strategy. You can go straight to a detailed plan.

In uncertain circumstances, you have to rely on a high-level, general plan. One that says what you want to achieve, but leaves the how well enough alone. It gives direction without specifying speed or means of motion. It guides everyone’s actions and decisions without telling them exactly what to do.

A product strategy, then, is a strategy to create and further develop a product to achieve one or more business goals.

Why Is a Product Strategy Important?

In an uncertain environment, it’s hard to know whether what you plan to do will pay off. But you still need to make decisions and produce results in line with your business goals.

It’s like navigating a ship.

You can’t get from A to B without a voyage plan and regularly checking where you are. And you’ll have to adjust along the way. You’ll have to avoid other ships (you’d be surprised how many you encounter at full sea), and adjust for currents and wind. You may even have to adjust your entire voyage plan to steer clear of a hurricane.

Your product strategy is the voyage plan for your product.

Staying Focused

A product strategy is important because it helps you to focus. To stay on course and resist the lure of that nice tropical island along the way.

Many people think focus is about saying “yes” to something and ignoring the rest. It isn’t. Focus is about saying “no” to everything that sounds good but doesn’t fit your overall idea and planning.

Saying “no” is hard enough as it is. Everyone with an idea has good reasons  why you should do it.

Having a product strategy will make it far easier to say “no” and stay on course. Because a product strategy doesn’t only tell you what you will do. It also tells you what you won’t do. Explicitly, or by omission.

Staying Aligned and Agile

Having and communicating a clear product strategy serves as the voyage plan, the initial course.

Knowing where you want to go and what you’re aiming for is essential for making quick, confident decisions. This allows you to respond and adjust more quickly to changes in your business environment, without veering too far off course.

For example, consider a developer who faces a dilemma between spending more time to polish the user experience of a task in your product or inventing a new way to calculate some metrics. If part of your strategy is to have the easiest-to-use product, the dilemma is off the table: the developer knows to focus on the user experience.

Clarity on what you’re aiming for means you no longer have to spell out what employees need to do.

What’s more, a product strategy works not just in your own product and development teams, but also in marketing, support, operations, and…well, actually, all departments in your organization.

So you no longer have to be involved in decision-making processes throughout your organization. Everyone can figure it out for themselves. And because of their knowledge and expertise in their own areas, they’ll come up with better solutions to contribute to those aims than someone outside their department ever could.

Charting the Way Forward

A product strategy is a high-level, general plan. It doesn’t yet tell you exactly what to do.

But it’s essential in creating those more detailed plans. Your product strategy guides the process of creating a product road map, including the decisions on what needs to be done first and what can wait until later. Exactly like it guided the developer in deciding what to spend time on.

And it serves the same purpose for other departments that work on or for the product.

4 Types of Product Strategy

Now that you know how a product strategy can benefit you, let’s talk about the different types of product strategies you can have.

Being the Alpha

This strategy, aka Leader, is to be the market leader, creating innovative products that’ll leave your competition lagging behind. It’s expensive, it’s risky, but the rewards can be huge.

Giving the Alpha a Run for Its Money

This strategy, aka Challenger, is to challenge the market leader by beating them at their own game.

Piggybacking

This strategy, aka Follower, is to piggyback on the innovations by the leaders and their challengers. You don’t create any innovative products yourself, but use them to create cheaper, derivative products.

Dominating a Corner

This strategy, aka Niche, is to create a product for very specific types of people in an otherwise large market. This allows you to work with limited resources because you don’t cater to everyone in the larger market.

The Elements of a Product Strategy

The most quoted elements that need to be in a product strategy are your vision for what the product will do, the business goals it’s meant to contribute to, and the initiatives to achieve those goals.

That, however, leaves out two essential topics.

What you also need is a description of who you’ll be serving (in other words, your ideal customer or customers), and how your product will solve their problems.

And you also need to include how your product is unique. The key features and differentiators that’ll set you apart from your competitors and attract your ideal customers.

Pro tip: include what your product will not do. The features that it won’t include. The bright shiny objects that you already know will be a distraction and that you’ll say “no” to from the outset.

5 Steps to Create a Product Strategy Perfect for You (With Examples)

Salute simon sinek.

According to Simon Sinek, in the TEDx talk  that put him on everyone’s radar, you have to start with why .

Why you go to the trouble of creating your product. What impact you want to have. Whose lives you intend to change.

The vision for your product is essential. Without an inspiring reason to create your product, and for your customers to buy it, everything falls flat.

Examples of Product Visions

Google for its search engine: “Provide access to the world’s information in one click.”

Nike for its Nike Free shoe: “A shoe which mimics barefoot running in order to strengthen runners’ feet and legs, giving them more power and speed while reducing the risk of injury.”

Paint Your People

The second step is to describe your ideal customer. Who they are, what they do, the problems they face, and how your product will solve their problems.

Understanding your ideal customer, your target audience, is key in creating a product that’ll appeal to them.

You need to understand what they want—and more importantly, what they need. The difference between wants and needs is the difference between shrugging and paying.

And you need to be specific. Large audiences—for example, parents—fall into different groups with different needs.

Examples of Target Audiences

Parents with young children who need an educational app, as opposed to parents with teenage children.

Amateur photographers using their smartphones to take pictures who need a picture enhancement app, as opposed to professional photographers.

Stand Out From the Crowd

The third step is to identify which key features you need and how to differentiate common features in similar products to stand out from the pack.

This speaks to the characteristics of your product: features, usability, quality, cost, customizability, robustness, and so on.

Examples of Key Features and Differentiators

Tax software with the specific forms for expatriates.

Content marketing with a CMS feature and step-by-step wizards for small business owners.

Word processing software specifically designed for users that rely on voice control.

Ready, Aim…and Keep Score

To know how you’re doing on your journey to contribute to the business goals of your organizations, you need four things.

Your current state.

Your goals—your desired state or target condition.

The metrics that describe your current and desired state.

Measuring regularly to check you’re still on course.

Examples of Goals and Their Metrics

Business goals:

Increase number of new sign-ups per month by 30% by the end of Q3.

Reduce time to market by an average of 20 days by year end.

Customer goals:

Increase the number of clients that create a full profile by 20% by the end of Q2.

Decrease time between sign-up and first valuable action by 50% by year end.

Blaze a Trail

Finally, then, you get to make a plan. At least, a very high-level plan. With your business and customer goals in mind, you identify the initiatives you’ll use to achieve the goals you’ve set.

Initiatives are more technical than goals. You can think of them as the grand themes of the actions you’ll take to bring your vision to life.

Examples of Initiatives

Attract customers from a new industry.

Launch a Wimbledon site for your tennis stats app.

Improve responsiveness and accessibility across your website and apps.

4 Best Practices for a Perfect Product Strategy

Problems are good.

Focus on problems, not solutions. When setting a strategy, talking about solutions is a form of premature optimization. It blinkers you to other solutions that may be better, easier, more cost effective, more relevant.

While you’re still discussing what strategy to take, the focus should be on understanding the problem you’re trying to solve and the challenges you face in reaching your business goals.

Only when that’s clear can you start generating possible solutions and initiatives to make them happen.

Options Are Even Better

When you start generating solutions to the challenges you face, don’t lean back when you’ve found the first. That’s only your start. Ask questions about how this solution helps you meet the business goals for your product. And how it doesn’t.

Ask yourself how else your product can meet the challenges you face.

It doesn’t matter how far out the challenges are. Feasibility is not the point at this moment. Creative thinking is. And far-out ideas can spark other ideas that are (more) feasible.

Plus, you’ll have plenty of time to cull any infeasible ideas before you start executing them.

That takes far less time and effort than prematurely picking a solution and realizing, halfway into executing it, that it doesn’t live up to expectations. U-turns and other sharp deviations of a set course are very expensive.

The More, the Merrier

Don’t sit in an ivory tower thinking up a product strategy for others to follow. Collaborate. Use the benefits of back-and-forth conversations between people with different perspectives and cognitive styles. Recruit from departments across your organization. And organize conversations both to understand the landscape of the challenges you face, and to get a plethora of solutions to pick from.

Facilitation Is Not Everybody’s Cup of Tea

Find a good facilitator and don’t get in their way.

Good facilitation isn’t easy. It takes skill and experience to guide a diverse group through problem solving. And it’s essential to ensure that everyone gets to contribute their best ideas.

You don’t want to jeopardize something as important as your product strategy with groupthink, loudmouths, shyness, HiPPOs (highest paid person’s opinion), and other group dynamics that discourage people from participating.

Pro tip: Hire an outside facilitator. Someone whose only interest is to ensure the quality of the process and has no interest whatsoever in the outcome of the conversation.

3 Tools for Effective Product Strategizing

When you’re working on your product strategy, you want to be concrete—but don’t get bogged down by details yet. Three tools, or rather worksheets, can help you do just that.

Product Strategy Canvas

Melissa Perri, CEO of Produx Labs and Product Institute, developed the product strategy canvas. It’s simple and straightforward, using a fill-in-the-blanks approach that doesn’t allow you to dig into details prematurely.

This canvas differs slightly in terminology from the standard vision-goal-initiatives template. It talks of your big business goals as the challenges you face. And instead of initiatives, it talks about your target condition—your desired state—and current state.

The product strategy canvas lets you focus on a single challenge-target condition combination at a time.

A complete product strategy will use more than one of these canvases. The vision will be the same for all, but the challenge can be different for each of your products. The target conditions and current states will vary across teams working on a product.

Including the current state in your product strategy is a smart move. It helps teams set the course to reach the target condition from where you are now. After all, if you don’t know where you’re starting out, you can’t set a good course to your destination.

And it brings another benefit. It helps you see how far you’ve come and celebrate your progress.

Finally, the language of the canvas helps you set SMART challenges, and measurable objectives to reach them.

Here’s an example of a filled-out product strategy canvas, from Melissa Perri’s blog :

Product Vision Board

Roman Pichler, founder of Pichler Consulting and author of several books on product management, developed the product vision board.

It too is simple and straightforward. It has your vision at the top, overarching the four areas you need in your strategy to make that vision happen.

The product vision board (“The Product Vision Board” (c) by Roman Pichler, licensed under CC BY-SA-3.0 US ) gives a broad view of the product and keeps all business goals together in one place. You can use it in a collaborative discussion across the organization. It guides these conversations with pertinent questions for each part.

To download a blank copy, go here .

Strategy Kernel Canvas

Chris Butler, member of the UX Collective and author of uxdesign.cc on Medium, proposed the strategy kernel canvas.

Like the product vision board, it takes a broad view on product strategy and can be used in a collaborative discussion across your organization. And it too has prompts in each area of the canvas to direct the conversation.

Like the product strategy canvas, it makes your current state explicit by prompting you to analyze how you got where you are and what you’re going to bet on to get you where you want to go.

You can find a discussion of the strategy kernel canvas by Chris Butler himself, here .

Execution: Moving From Product Strategy to Product Delivery

Just as knowledge is useless without action, a product strategy is useless without execution.

Execution is what brings your product to life (when you’re creating a new one) and what keeps it relevant (when you’re refining an existing one) and contributing to your business goals.

In a world that’s changing faster than ever before, you’ll need to act and respond quickly. That creates two challenges for you as the product manager:

reducing the time it takes the teams to delivery value to your customers, and

having visibility of and controlling the software delivery process across the whole product.

As you can’t do everything yourself, you’ll want help.

From linking pins between you and the agile product and development teams, the product owners  in Scrum.

And from tools, like Plutora’s dashboards for product leaders and managers , that give you insight into what’s happening across all the product and development teams, regardless of the software tools that each of them uses.

To reduce the time to value in developing your product, value stream mapping is a valuable technique to have in your toolbox, especially when you use a value stream mapping tool that integrates with your teams’ delivery toolchain. It will then provide you continuously with up-to-date metrics linked to the goals in your product strategy.

Product Strategy for the Win

You now have everything you need to create a perfect product strategy for your product. And you know where and how to get the help you need to execute it and be confident along the way that you’re on course.

So take the plunge and start work on an inspiring product vision. It’ll be your North Star that’ll guide your decisions, help you say “no,” and keep you from feeling like you’re being pulled in every direction.

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Advanced Product Quality Planning (APQP)

– Advanced Product Quality Planning –

⇓   Introduction to APQP

⇓   What is APQP

⇓   Why Implement APQP

⇓   When to Apply APQP

⇓   How to Implement APQP

Introduction to Advanced Product Quality Planning (APQP)

Complex products and supply chains present plenty of possibilities for failure, especially when new products are being launched. Advanced Product Quality Planning (APQP) is a structured process aimed at ensuring customer satisfaction with new products or processes.

APQP has existed for decades in many forms and practices. Originally referred to as Advanced Quality Planning (AQP), APQP is used by progressive companies to assure quality and performance through planning. Ford Motor Company published the first Advanced Quality Planning handbook for suppliers in the early 1980’s. APQP helped Ford suppliers develop appropriate prevention and detection controls for new products supporting the corporate quality effort. With lessons learned from Ford AQP, the North American Automotive OEM’s collectively created the APQP process in 1994 and then later updated in 2008. APQP is intended to aggregate the common planning activities all automotive OEM’s require into one process. Suppliers utilize APQP to bring new products and processes to successful validation and drive continuous improvement.

There are numerous tools and techniques described within APQP. Each tool has potential value when applied in the correct timing. Tools that have the greatest impact on product and process success are called the Core Tools. The Core Tools are expected to be used for compliance to IATF 16949 . There are five basic Core Tools detailed in separate guideline handbooks, including Advanced Product Quality Planning (APQP).  The other Core Tools are:

• Failure Mode and Effects Analysis (FMEA)
• Measurement Systems Analysis (MSA)
• Statistical Process Control (SPC)
• Production Part Approval Process (PPAP)

What is Advanced Product Quality Planning (APQP)

APQP is a structured approach to product and process design. This framework is a standardized set of quality requirements that enable suppliers to design a product that satisfies the customer.

The primary goal of product quality planning is to facilitate communication and collaboration between engineering activities. A Cross Functional Team (CFT), involving marketing, product design, procurement, manufacturing and distribution, is used in the APQP process. APQP ensures the Voice of the Customer (VOC) is clearly understood, translated into requirements, technical specifications and special characteristics. The product or process benefits are designed in through prevention.

APQP supports the early identification of change, both intentional and incidental. These changes can result in exciting new innovation supporting customer delight. When not managed well they translate to failure and customer dissatisfaction. The focus of APQP is utilization of tools and methods for mitigating the risks associated with change in the new product or process.

Why Implement Advanced Product Quality Planning (APQP)

APQP supports the never ending pursuit of continuous improvement. The first three sections of APQP focus on planning and prevention and make up 80% of the APQP process. The fourth and fifth sections support the remaining 20% of APQP and focus on validation and evidence. The fifth section specifically allows an organization to communicate learnings and provide feedback to develop standard work and processes. A list of APQP benefits are:

• Directing resources by defining the vital few items from the trivial many
• Intentional (what is being changed on purpose to bring value to the customer)
• Incidental (environments, customer usage, degradation and interfaces)
• Fewer design and process changes later in the product development process
• On-time quality product at lowest cost
• Multiple options for mitigating the risk when found earlier
• Higher capability of verification and validation of a change
• Improved collaboration between Design of the Product and Process
• Improved Design for  Manufacturing and Assembly  (DFM/A)
• Lower cost solutions selected earlier in the process
• Legacy capture and reuse, advancement of Tribal Knowledge and standard work creation and utilization

When to Apply Advanced Product Quality Planning (APQP)

APQP facilitates communication between the supply chain and the organization / customer. Requirements that translate into more detailed specifications are clarified and decomposed to more detail as the process continues. APQP is used in 2 ways:

1. New Product Introduction (NPI) Support:

APQP supplements product development processes by adding a focus on risk as a substitute for failure. This allows the team to take action on the risk instead of having to wait for failure to occur in testing or worse, in the hands of the customer. APQP utilizes risk based tools that focus on all aspects of product and process design, service, process quality control, packaging and continuous improvement. Each application of APQP may be unique to a previous application because of the percentage of new content, changes to current off-the-shelf technology or past failure history.

2. Product or Process Change (Post Release):

APQP follows a product or process change outside of Product Development and assures the risk of change is managed successfully by preventing problems created by the change.

How to Implement Advanced Product Quality Planning (APQP)

APQP is comprised of one pre-planning stage and five concurrent phases. Once begun, the process never ends and is often illustrated in the Plan Do Study Act (PDSA) cycle. PDSA was made famous by W. Edwards Deming. Each section is aligned with analytical risk discovery tools and techniques. Finding risk in product and process development is more desirable than finding late failure. The APQP Sections are defined below:

Section 0: Pre-Planning

APQP begins with assumptions, concepts and past knowledge. Bookshelf knowledge and standard work practices are listed as well as areas where significant change is expected. This section compiles the inputs into Section 1 – Plan and Define.

Section 1: Plan and Define

Section 1 links customer expectations, wants, needs and desires to requirements. Plan Development will assure the output of this section is satisfactory product quality. Resource planning, process and product assumptions are made. A list of preliminary special characteristics and design / reliability goals are also established.

Section 2: Product Design and Development

The focus in Section 2 is on product design and development. Geometry, design features, details, tolerances and refinement of special characteristics are all reviewed in a formal Design Review. Design verification through prototypes and testing are also part of this section. Tools which typically provide great benefit in this section are DFM/A, Design Failure Mode and Effects Analysis (DFMEA) and Design Verification Plan and Report (DVP&R) .

Section 3: Process Design and Development

Section 3 explores manufacturing techniques and measurement methods that will be used to bring the design engineer’s vision into reality. Process Flow Charts, Process Failure Mode and Effects Analysis (PFMEA) and Control Plan Methodology are examples of tools used in this section.

Section 4: Product and Process Validation

Validation of the process quality and volume capabilities is the focus of Section 4. Statistical Process Control (SPC), Measurement Systems Analysis (MSA) and Process Capability Studies are introduced in this section. Product Part Approval Process (PPAP) is ready for submission and production begins upon approval.

Section 5: Feedback Assessment and Corrective Action

Section 5 explores learnings from the ongoing manufacturing process, RPN reduction, corrective actions (both internal and external), Eight Disciplines of Problem Solving (8D) and the capture of information pertinent for future use.

APQP Inputs and Outputs by Section

Each section of APQP depends on risk information that has previously been discovered. The information sharing assures a flow of logical risk discovery and mitigation. The detailed inputs and outputs for each section are described below:

Inputs into Section 1:

• Market research
• Historical issues
• Team experience
• Business Plan and Marketing Plan
• Product and Process Benchmark
• Product and Process Assumptions
• Product Reliability Studies
• Customer Inputs as applicable

Outputs of Section 1:

• Design Goals
• Reliability and Quality Goals
• Preliminary Bill of Material (BOM)
• Preliminary Process Flow
• Preliminary list of Special Characteristics
• Product Assurance Plan
• Gateway approval

Outputs of Section 2:

• Design FMEA (DFMEA)
• Design for Manufacturing and Assembly (DFM/A)
• Design Verification
• Design Review
• Prototype Control Plan
• Engineering Drawings CAD the Master
• Engineering Specifications
• Material Specifications
• Change Control for Drawings
• New Equipment, Tooling and Facilities Requirements
• Special Product and Process Characteristics
• Gages / Testing Equipment Requirements
• Team Feasibility Commitment and Gateway approval

Outputs of Section 3:

• Packaging Standards and Specifications
• Quality System Review
• Process Flow Chart
• Floor Plan Layout
• Characteristics Matrix
• Process FMEA (PFMEA)
• Pre-Launch Control Plan
• Process Instructions
• Measurement Systems Analysis (MSA) Plan
• Preliminary Process Capability Plan
• Gateway Approval

Outputs of Section 4:

• Significant Production Run
• MSA Results
• Process Capability Studies
• Production Validation Testing
• Packaging Evaluation
• Production Control Plan
• Quality Planning Sign-Off and Gateway approval

Outputs of Section 5:

• Reduced Variation
• Improved Customer Satisfaction
• Improved Delivery Performance
• Effective Use of Lessons Learned

Examples of Where to Incorporate APQP:

• Develop Requirements from Voice of the Customer (VOC) using Quality Function Deployment (QFD)
• Develop a Product Quality Plan integrated into Program / Project Timeline
• Translate percentage of new content into Product and Process Assumptions
• This may include new geometry, shape, parts, tighter tolerances and new materials linking the DFMEA to PFMEA
• Develop test plans (DVP&R)
• Use of formal Design Review to track progress
• Plan, acquire and install appropriate process equipment and tooling based on design tolerances provided by the product design source
• Assembly and Manufacturing personnel communicating suggestions of ways to better assemble a product (DFM/A)
• Establish adequate Quality Controls for Special Characteristics or Key Characteristics features of a product or parameters of a process, which still risk potential failure
• Performing Stability and Capability studies on special characteristics to understand the variation present and predict future performance with  Statistical Process Control (SPC)  and Process Capability (PPK and CPK)

How to Develop a Product Quality Plan (PQP)

The APQP process begins with the creation of a Product Quality Plan (PQP). The PQP may be unique for each individual development. During the planning section, a core group of personnel will review the concept design, process and product assumptions, overall goals of the project and past failures. After collecting this information, the core team selects tools from each section, based on the value they may bring when failure prevention is discussed. The PQP is linked to the project timing plan to aid in program / project management efficiency. The tools and techniques are selected based on what risk may be present, created by the intentional and incidental change. Discovering unknown risk is desirable. Each risk is quantified and mitigation actions are developed and implemented increasing the probability of project success.

Example of a Product Quality Plan

The Quality-One approach depicted in the following PQP example is a matrix with calculated ratios of qualitative tools verses quantitative evidence. Since qualitative tools can be used earlier in the product development process, Quality-One expects a 3:1 qualitative to quantitative ratio. The opportunity to discuss potential issues based on change with qualitative tools should be three times greater than the actual data collected. Observed data collection happens late in Product Development (PD) and reaction to failure may be required. Discussion of the change, using a tool and a Cross Functional Team (CFT), often results in discovering and preventing a failure early in PD. APQP is focused on predicting and preventing failure (80%) and less on detecting it (20%).

The APQP Cross Functional Team (CFT)

The Cross Functional Team (CFT) in APQP evolves and changes as the process progresses. Preliminary details required to begin Product Quality Planning are collected by a CFT prior to project kick-off. This process is typically short and does not involve any product or process design effort. Aspects of Pre-Planning include:

• Scope of the project
• Past Failure
• Team size, structure and experience
• Methods for issue resolution
• Space and resources required
• Timing of the project

The CFT adds members as certain disciplines are required. Two examples of team evolution are: purchasing engagement when “make / buy” decisions are required and engagement of tool design resources when prototype and production tooling is required.

APQP is performed using Collaborative Product (Process) Development (CPD). Each CFT discipline communicates with their counterparts on items which can impact quality, cost or delivery, either positively or negatively. Special Characteristics are also communicated between each CFT discipline. The earlier a product or process problem can be found, the less expensive and work intensive it will be to fix it. Working concurrently per the project timeline, the team completes the Plan and Design activity:

• Product Engineering (PDE) addresses Product Design and Development
• Process and / or Manufacturing Engineering (ME) addresses the Process Design and Development

Each section has inputs, outputs and management gateway reviews. Gateways are timed to coincide with key decisions impacting project Quality, Cost or Delivery.

How is APQP related to PPAP?

Product Part Approval Process (PPAP) highlights the proof or evidence collected through APQP. Validated results from the first trial run supports the assertion that quality of delivery is expected. The trial run must represent the production environment, with correct tools, machines, processes, personnel and conditions that may affect part quality.

PPAP and APQP cannot be separated, as PPAP documents are the result of APQP. PPAP provides evidence that APQP has been successfully performed. Poor performance in a PPAP or a rejected sample can be attributed to poor APQP. Deliverables in PPAP are extensions of APQP Planning. The PPAP elements are listed below, note that many are the same as APQP tools or are the output results of APQP tools:

• Part Submission Warrant (PSW)
• Design Records
• Engineering Change Documents
• Customer Engineering Approval
• Process Flow
• Dimensional Results
• Performance and material test results
• Initial Process Capability Study
• Qualified Laboratory Documentation
• Bulk Material Requirements (if required)
• Control Plan
• Cosmetic or Visual Signoff
• Sample Product
• Master Sample
• Checking Aids
• Records of Compliance with customer specific requirements

How are APQP, NPI and DFSS Related

APQP, NPI, Design for Six Sigma (DFSS) and other Product Development Processes share goals and development tools. Examples of these tools can be found in our Core Competencies . APQP is often the Product Development Process that is used as a default process to support supplier engagement. DFSS is a highly focused effort reserved for high value requirements or specifications. APQP is broader in scope than DFSS and scalable to perceived risk each supplier, design or process poses on program success.

Example of APQP, NPI and DFSS Relationship

An Original Equipment Manufacturer (OEM) is preparing a new end user product. The product will follow the OEM NPI. Several of the subsystems and components require supplier engagement to assure that their expertise is included in product design. APQP will be used to collaborate with the suppliers.

DFSS will focus on key features that are highly valuable and quite different than past products. A Six Sigma Black Belt is assigned to follow these features across all communications channels and groups. The tools used in each of these endeavors are the same. The tools may be used at differing utilization levels at the Black Belt’s discretion.

Learn More About Advanced Product Quality Planning (APQP)

Quality-One offers Quality and Reliability Support for Product and Process Development through Consulting, Training and Project Support. Quality-One provides Knowledge, Guidance and Direction in Quality and Reliability activities, tailored to your unique wants, needs and desires. Let us help you Discover the Value of APQP Consulting , APQP Training or APQP Project Support .

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Guide to Advanced Product Quality Planning (APQP)

Looking to learn more about advanced product quality planning (apqp) we cover everything from definition to implementation..

APQP is a process designed to provide a clear understanding of customer wants, needs and expectations. This will support you and your business in delivering the best possible products and exceeding these expectations. APQP is one of the five core tools for effective quality management alongside PPAP, FMEA, MSA and SPC, and is particularly valuable in manufacturing industries where there is a risk of production and process failures. The APQP process reduces these risks, provides greater quality control, and increases business success.

In order for you to benefit from implementing APQP into your production processes, you need to understand how it works and where it adds value. In this guide, we will discuss:

What is APQP?

Why is apqp important, when to apply apqp, the five phases of apqp.

• How to Implement APQP
• Developing a Product Quality Plan (PQP)
• APQP and PPAP

APQP is a structured approach to product and process design. The framework includes a set of quality requirements that allow suppliers to create products that meet the expectations of their customers.The core function of APQP is to identify the requirements of the customer. Manufacturers can then create a product quality plan for developing and manufacturing products that meet those requirements.

APQP is also used to facilitate communication and collaboration between engineering activities. This is done using a Cross Functional Team (CFT), involving manufacturing, marketing product design and other relevant departments.

There are five key phases to APQP, which we will examine in more detail further on in the article.

APQP is important for both customer and supplier because there is a structured agreement in place that outlines expectations and specifications for a product. This avoids any confusion or misinterpretation during planning and production, creating a platform for efficient communication.

The business benefits of implementing APQP include:

• Product conformity
• Improved quality of product
• Improved customer service
• Improved customer satisfaction
• Faster time to market
• Transparent communication
• On-time products at a low cost
• Improved risk mitigation
• Improved Design for Manufacturing and Assembly (DFM/A)
• Lower cost solutions selected earlier in the process
• Necessary changes identified earlier

APQP benefits OEMs dealing with multiple supply chains and suppliers looking to achieve part approval and compliance.

It’s also important to know when and how to implement APQP to maximize benefits from the process. APQP is typically used for New Production Introductions (NPIs) when OEMs and suppliers are working together to develop a new product. It supports product development by using risk-based tools to focus on the design, service, quality control and continuous improvement of a product. Identifying risks early allows teams to act before waiting for a failure to occur.

APQP should also be applied if a product or process is changing after its release, ensuring the risk of the change is managed successfully and doesn’t create any problems.

There are five concurrent phases and a pre-planning stage involved in the APQP process. It involves the Cross Functional Team (CFT) of engineers, manufacturers, marketers, and other core functions so communication and collaboration are important. A project manager will be responsible for managing and planning the process.

Section 0: Pre-Planning

Pre-planning begins with assumptions, concepts, and past knowledge. Standard work practices and significant change expected should be listed down to support section 1 – plan and define.

Section 1: Plan and Define

This section translates customers wants, needs, and desires into production requirements. It involves gathering the necessary data from the customer and using the information to outline characteristics and specifications. The design, reliability and resource requirements of the product can then be defined.

• Design goals
• Reliability and quality goals
• Preliminary Bill of Materials (BOM)
• Preliminary process flow chart
• Preliminary listing of special products and process characteristics
• Product assurance plan
• Management support

Section 2: Product Design and Development

The focus of this section is the design and development of the product. It should also involve a product feasibility assessment. A complete design review and verification is carried out using prototypes and material specifications and equipment requirements should be defined in this section.

Design Failure Mode and Effects Analysis (DFMEA) and Design Verification Plan and Report (DVP&R) are also used in this section to assess failure probability.

Design Failure Mode and Effects Analysis (DFMEA)

• Design for Manufacturability and Assembly (DFM/A)
• Design verification
• Design reviews
• Prototype control plan
• Engineering drawings (including math drawings)
• Material specifications
• Drawing and specification changes
• New equipment, tooling, and facilities requirements
• Special product and process characteristics
• Testing equipment requirements

Section 3: Process Design and Development

This section identifies the techniques and measurement methods that will be used in the manufacturing methods. These details are used to bring the design engineer’s vision to life.

• Packaging standards and specifications
• Quality system review
• Process flow chart
• Floor plan layout
• Characteristics matrix

Process Failure Mode and Effects Analysis (PFMEA)

• Pre-launch control plan
• Process instructions
• Measurement Systems Analysis (MSA) plan
• Preliminary process capability study plan

Section 4: Product and Process Validation

This is the test phase that validates that the manufacturing process and the final product meet the requirements of the customer. Production Part Approval Process (PPAP) should be ready for submission and once this is approved production can begin.

• Significant production run
• MSA results
• Preliminary process capability study
• Production Part Approval Process (PPAP)
• Production validation testing
• Packaging evaluation
• Production control plan
• Quality planning sign-off and management support

Section 5: Launch, Assessments, and Continual Improvement

Production begins in this section and there should be a focus on evaluating and improving processes. This involves reducing process variation, identifying issues, and corrective action (both internal and external) that supports continual improvement.

• Reduced variation
• Improved delivery and service
• Effective use of lessons learned

How is APQP related to PPAP?

Product Part Approval Process (PPAP) is used to highlight the evidence collected throughout the APQP process. This ensures the customer that the supplier is delivering the quality that is expected. PPAP includes details on the production environment, tools, machines, processes, personnel, and conditions that could affect the quality of the part.

There are 18 elements involved in PPAP that determine the success of the first trial run:

Design Documentation

Engineering Change Notice

Customer Engineering Approval

Process Flow Diagram

Control Plan

Measurement System Analysis (MSA)

Dimensional Results

Design Verification Plan and Report (DVP&R)

Initial Process Studies

Qualified Laboratory Documentation

Appearance Approval Report (AAR)

Sample Production Parts

Master Sample

Checking Aids

Customer Specific Requirements

Part Submission Warrant

The purpose of the process is to minimize errors and ensure both supplier and customer are happy with the result. You can learn more about the Production Part Approval Process (PPAP) by reading our in-depth guide.

APQP requires a lot of work as there are so many different people and supply chains involved. The result is a lot of laborious administration, involving documents, processes and data, and the traditional paper-based workflow can lead to repetitive manual work and human error becoming a risk.

Digitizing APQP can save time with PPAP, FAI, and CMM and leads to repeatable, fast processes. Plex can support businesses looking to digitize their Product Quality Planning (PQP) , achieving operational excellence.

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Product Strategy: What It Is, How To Build One, and Examples

Published: June 01, 2023

To create innovative and beloved products, companies have to understand their buyers, identify the problems they want to solve, and then develop and launch the solution successfully.

An important part of the process: having a product strategy that integrates different aspects of  product development , and serves as a compass for the entire organization.

What Is Product Strategy?

Product strategy is the overarching plan explaining what your business aims to achieve with a product or feature. It includes how you plan to create the product, how it will impact buyers, and how it helps achieve your business goals.

It guides the ideation, creation, and launch of your product. Though some products — such as the microwave and super glue — happen accidentally, the majority of successful products have an underlying, high-level product strategy to back it up.

Having a cohesive strategy helps different teams stay on track, and they will refer to it when they have questions or need to make decisions. Once you have a solid strategy set, you can then build out a product roadmap and, eventually, the actual product.

Product Strategy Framework Components

A product strategy often includes three core components: your market vision, product goals, and product initiatives.

Market Vision

Your market vision includes two aspects: the target audience and the business opportunity. It highlights how you plan to position the product and how it compares to competitors. Your vision should also explain how you plan to deliver a competitive offer that solves customers’ problems.

For example, a software company that creates a product management tool, similar to Asana or Trello, might include the following in their market vision:

• Audience: executive-level product managers
• Product positioning: an intuitive, easy-to-use interface for less technologically savvy users
• Competition: existing products are unspecialized, clunky, and hard to use

Product Goals

When measuring the success of a strategy, you need time-bound, measurable goals. For example, you could set a goal of having a customer retention rate of 97% or driving $50m+ in revenue in three years.

A goal addresses a specific problem you aim to solve, usually with a tangible way of measuring progress.

Product Initiatives

Alongside specific goals, your product strategy should have a complementary big-picture component. An initiative should explain your company’s focus and areas of investment. For example, you might set an initiative to improve the responsiveness of an app.

Unlike a goal, an initiative involves complex planning that brings together multiple stakeholders to achieve long-term success, often spanning the entire product life cycle.

Many use goals as the foundation for their initiatives. For example, you might set a goal of reducing the churn rate by 15% in one year. An initiative, then, might be improving the performance and responsiveness of the app.

Product Strategy Examples

Consider a company that creates time management software. When crafting their product strategy, they might include:

• Market vision: Create time management tools for senior managers in the software-as-a-service industry by providing an intuitive, easy-to-use interface — unlike competitors with clunkier software
• Product goal: Maintain a retention rate of 98% in the first year
• Product initiative: Improve the product's user experience and interface

Their market vision explains their target audience (senior management) alongside their competitive offering (an easy-to-use, UX-friendly interface).

Their product goal has a time constraint and a specific, measurable objective. The initiative — which has a more high-level aspect — complements the product goal, as improving user experience will likely increase retention rate.

Using another example, an artificial intelligence writing startup might have the following components in their product strategy:

• Market vision: Create an easy-to-use AI writing tool for small-business owners looking to save money on SEO and content creation — unlike competitors with unfocused writing tools
• Product goal: Acquire 500 users in the first three months
• Product initiative: Measure and optimize marketing campaigns promoting the AI tool

The company’s market vision explains both their audience and their differentiating factor. Similarly, their goal of acquiring a certain number of users goes hand in hand with their initiative — optimizing their product’s marketing.

The Importance of Having a Product Strategy

A product strategy gives teams direction — 35% of product teams reported wishing they had a clearer vision and purpose. It can also help your company increase collaboration, improve communication, and create better products.

Communicates Organizational Goals

A product strategy centers different stakeholders — including customer service, marketers, salespeople, and engineers — on one goal.

Although product managers , engineers, and developers may handle the day-to-day aspects of executing a product strategy, other departments need to know the product’s direction. For example, marketing and sales need to understand the most valuable features to create targeted promotions and advertisements.

Given that almost nine in 10 professionals blame a lack of communication for workplace failure, a product strategy can keep everyone aligned.

Defines Your Product’s Place in the Market

It’s near impossible to serve everyone in a market — and many startups fail because they misread market demand.

A product strategy helps set you apart from competitors because it answers the why behind your product. Creating a detailed plan forces you to spend time thinking about how to differentiate it from your rivals.

Enables the Creation of a Product Roadmap

As a result of creating a product strategy, you’ll set goals — both big-picture and specific ones. You can then use them as the basis for a detailed product roadmap . Since organizations waste 12% of resources due to ineffective product management , a solid product strategy optimizes that process.

Types of Product Strategies

Cost Strategy: Creating the best product for the lowest possible cost. This strategy works well in industries where customers put little thought into purchases, such as household cleaning products or toothbrushes.

Differentiation Strategy: Creating a product with a unique, standout feature. This can include a never-before-seen feature on a product or creating a product with whacky branding.

Focus Strategy: Creating a product that targets one specific buyer persona. This means focusing all your energy on a small set of people. You end up creating highly personalized products that gain significant brand loyalty .

Quality Strategy: Creating a product only using high-quality materials. This strategy naturally targets customers who have limited concern for price. To them, the quality or prestige justifies the high price — such as a luxury handbag.

Service Strategy: Creating a product complemented by high-quality customer service . Though the product still has to meet customer needs, this strategy leverages effective customer service to help build brand loyalty.

How To Create a Product Strategy

Creating a product strategy comes down to figuring out your market vision, product goals, and product initiatives.

Create Your Market Vision

Your market vision is a high-level overview of your company, competitors, your buyers, and your concept. To create it, consider jotting down bullet points for the following:

• Competitors : What companies currently dominate the market?
• Company weaknesses: Where does your company struggle?
• Company strengths: Where does your company excel?
• Buyer personas : Who is your target audience?
• Marketspace: What does the industry look like?
• Go-to-market plan : How will you promote your solution?

Set Product Goals

Next, set product goals for your strategy. Make them both time-bound and numbers-oriented, so you can measure progress and success throughout the process. To start, write down a few notes for the following:

• Timeline: Is it flexible or rigid? How volatile is the market?
• Metrics: What metrics does your business care the most about? What does your business hope to achieve with the product?
• Teams: What internal stakeholders should be in the know? How can you best keep them informed?

Create Product Initiatives

Product initiatives require less specificity than product goals — but they complement each other. You want to understand your company’s big picture. So, look through your goals and see how they relate to more high-level aspirations.

To help you get started, try these different methods:

• Collaborate with stakeholders: Ask others in the organization. What areas do they want to prioritize? Where do they see the company investing its time and resources in?
• Look at buyer personas: What do they care about most? Where do you foresee them having problems using your product?
• Analyze your company: What does your company need the most? Money? Users? Publicity?

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A product strategy is a high-level plan that defines your product goals throughout its life cycle and how it will support the organization’s goals.  The product strategy will also answer who the product will serve and how it will benefit them. These plans are then brought to life on the roadmap.

There’s no single blueprint for a product strategy, but the good ones have a handful of things in common.

1. They have a purpose. Building a product just for the sake of creating and maintaining something isn’t a strategy; that’s busywork. Products should have a raison d‘être and exist for something beyond themselves. Figuring out what that is and getting the entire organization to buy into that is step one.

2. Understand customer needs and how they’re evolving. All products need customers, so any product strategy should be based on meeting their requirements. Since customers don’t always know exactly what they want, the product strategy must bridge the gap between what customers say and what they need. Just as importantly, customer needs aren’t static. They change over time, and the product must adapt to match.

3. Understand your value chain and how it’s evolving. Products don’t exist in a vacuum. Neither do its users. The product strategy must incorporate how it fits into the larger ecosystem, determining where it adds value and where friction points remain. As that ecosystem changes, the product’s role within it may also evolve.

4. Determine what change is likely to happen. Although strategic thinkers don’t possess psychic powers, they should cast an eye toward the future and anticipate likely disruptive forces that limit or expand the product’s opportunities for growth and usage.

5. Define actions against those changes. With a view on the horizon, what must be included in the product strategy to mitigate those disruptions or seize upcoming opportunities?

The Power of Product Strategy

Your product strategy is the key to connecting business objectives with the product. Companies have many different types of strategies, all built on one another to align the team properly. Making a great product strategy requires understanding where it sits in the middle of the high-level corporate vision and roadmap initiatives.

Starting from the top, most companies create a corporate vision. It is the entire outfit’s reason for being. In a company’s early stages, the company and the product may be viewed synonymously. But that should rapidly change as the product rolls out and the business becomes more complex and diversified.

A corporate vision is the highest-level view of what the company wants to be. LinkedIn wants to “create economic opportunity for every member of the global workforce.” IKEA’s vision “is to create a better everyday life for many people.” Nike wants to “bring inspiration and innovation to every athlete* in the world. (*If you have a body, you are an athlete.)”

These visions are fuzzy on the details and big on inspiration. They intend to motivate employees, excite consumers, and boil down their philosophy into an extremely brief sentence or two.

A product vision statement is a static, aspirational statement about what the product aims to achieve. It’s who we are today and where we want to be.

Product visions are short and sweet. They don’t need ongoing updates because they’re also (relatively) timeless. Google wants “to organize the world’s information and make it universally accessible and useful.”

Just beneath the corporate vision is the company mission. Now we start getting into tactics, albeit at an extremely high level. The mission talks about how the company will make that vision a reality.

These aren’t exactly actionable business plans, but they at least give some sense of how a vision might be realized. From a mission statement, you can then create a strategy, and that is where the product comes into play.

Product missions are also extremely brief. Think StubHub’s “Where fans buy and sell tickets.” Everyone reading it understands the big idea behind the product, but it isn’t limiting how to fulfill that mission.

Missions spell out the product’s overall purpose and what you want to do with your team. It can come before in-depth customer research and persona development , as it’s still not specifying implementation.

With a defined product vision and mission, a product strategy can then take shape. The product strategy is the art of finding and exploiting leverage in the competitive landscape to achieve your purpose (as defined in the product vision/mission).

Ambition is not a strategy; it must be more tactical. Strategies need a sense of realism, representing accomplishable outcomes.

However, product strategies also seldom include numbers or metrics because those make it too specific. Being No. 1 isn’t a strategy, either. That’s fodder for a mission or vision.

In the webinar below, we discuss how to treat your strategy as a product.

Product plans or initiatives

Residing one level below a strategy are plans for the product. Far more granular and specific, these are where the rubber meets the road, resources get allocated, budgets are defined, and schedules set. Project plans are all about actual execution, with no wiggle room for intent and targets.

With this hierarchy now defined, it’s time to get into what this means for products.

Product strategies aren’t easy to create… if they were, every entrepreneur would be a smashing success, and all startups would turn into unicorns. But following a simple playbook ensures you haven’t forgotten anything.

Here are five steps to a winning product strategy :

Factor in the rest of the field

Just like a product manager shouldn’t devise an entire product strategy all by themselves, a product strategy can’t ignore what else is out there. Rare is the case where a product doesn’t face direct competitors or viable alternatives for the services and functions it provides.

Conducting a competitive analysis takes a disciplined approach to evaluating the other players vying for potential customers. This exercise should cast a wide net in terms of what solutions prospects are using or considering.

Each alternative’s attributes must be assessed, along with which features and capabilities resonate with the target market. Not every checkbox on the feature matrix matters the same to actual buyers and users, as organizations want to avoid becoming feature factories in their quest to “catch up.”

Pricing strategies must also take competitors into account. The product strategy may entail a premium price point or undercutting the competition, but it’s hard to come up with a price tag without knowing what the rest of the market charges.

Additionally, product managers shouldn’t be fooled or talked out of playing a role in the pricing strategy. Despite what sales or business development might say, product management has the best understanding of a product’s COGS (cost of goods sold), and its real value to different customers.

Instead, product management should play an active part in the product’s pricing strategy , collaborating with other parts of the business to devise a model that drives growth and hits the company’s revenue and profitability goals.

From a product’s conception until its final sunset, product management’s role must adapt to the different lifecycle stages . Strategy never goes away, but it does have two distinct phases.

Product management throughout the product lifecycle

There is the initial strategy development, which begins with ideation. The strategy goes through rapid evolutions as research rolls in, MVPs are designed and built, feedback is collected, and the product morphs and changes while trying to find product-market fit.

Product managers spend far more of their time developing and refining the strategy during this stage than at any other time. There is just so much learning occurring and unknown variables to define.

Once the product gets traction, product managers take on a different set of responsibilities. Attention shifts to growth and retention, usually followed by managing a decline or reinvention. Here the product strategy itself shouldn’t see as many significant shifts, although there’s never a time when the topic isn’t part of a product manager’s portfolio.

Staffing up

These lifecycle stages also influence the makeup of the product team itself. Different phases require varying skills, not to mention the volume of work to be done. With this in mind, product management must take a strategic approach to staffing.

Hiring product managers isn’t as straightforward as some other disciplines. There’s no ideal resume or degree for product management, and the role requires a unique combination of soft skills, creativity, and technical acumen.

Because these demands differ throughout the product lifecycle, product managers must carefully consider when is the right time to scale their team . The ideal team size is also highly dependent on the complexity of the products, the number of products in the overall portfolio, and which areas deserve more dedicated attention.

Collaborating with other teams

Despite building out a product team, product strategy meetings must involve other parts of the organization. No matter how many great ideas and talented individuals comprise the product management ranks, input from other departments is crucial.

Keeping these product strategy meetings from going off the rails is yet another challenge product managers face. Everyone brings their biases, pet projects, favorite shiny objects, and anecdotal evidence to the table.

While a viable product strategy must encompass more than a series of measurable targets, metrics play a vital role in defining and executing the product strategy.

Product managers don’t have to reinvent the wheel when it comes to defining product metrics. There’s an existing set of well-understood and valuable metrics at their disposal, assuming the instrumentation and reporting are in place. The fun/tricky part is deciding which ones to concentrate on .

The product’s maturity will also dictate which metrics are most relevant to that phase of the product strategy. Once a product is getting used and the analytics are rolling in, product managers can use metrics to adjust and enhance the product strategy . The data provides a valuable feedback loop and can quantify the anecdotal observations.

The product roadmap is the primary vehicle for transforming product strategy from theory to reality. It lays out how the product will evolve to achieve its key goals and communicate to everyone the priorities.

But translating a strategy and aligning the roadmap underneath it isn’t a trivial undertaking. It requires a lot of work in advance to identify what matters most to key organizational stakeholders and extensive planning and prioritization .

One of the biggest mistakes product managers can make in this area is thinking they can—or should—do it alone. Failing to conduct critical strategic conversations ahead of time can spell doom for a product roadmap and tarnish product management’s reputation.

Incorporate stakeholder concerns into the process and product managers shouldn’t assume they know what each person cares about until they’ve discussed it personally with everyone. Not only is this a fact-finding opportunity for the roadmap makers, but it also provides another opportunity to reinforce the details of the product strategy with those stakeholders.

Building the roadmap

Much like a product strategy can only come after its vision and mission have been defined, it’s also logical to adopt a top-down strategy for the roadmap itself. This process intrinsically links everything in the roadmap to the high-level goals the organization established for the product. The strategy becomes a common, universal thread running through everything on the roadmap.

Strategy-based roadmapping also makes for a better team experience. It clears up any “why” questions and uncertainties. It allows the team to focus on what will have the most significant impact on executing the strategy everyone’s on board with.

Playing the numbers game.

One method is letting the numbers call the shots. In this case, that means adopting a data-driven approach to roadmapping by prioritizing projects that improve specific key metrics.

Data-driven product roadmaps embrace this quantifiable attitude by basing every decision on how it will influence particular measures of success. This tactic is great for building consensus since it’s hard to argue with data. But the “art” of a data-driven product roadmap is figuring out which metrics matter with regards to the product strategy .

Narrowing the field down to just a handful of measures of progress and success keeps the organization focused. Without a select few metrics—or a single North Star metric —to guide the way, the picture can get cloudy.

Vanity metrics can obscure the numbers that matter, as can metrics that were once critical but are now less relevant and meaningful. And if the obsession with specific measures goes too far, decision-making can ignore the customer experience itself, not to mention product managers’ sanity and happiness.

Results While a data-driven roadmap intends to move the needle on KPIs, sometimes the desired results are a little less measurable. Here’s where outcome-riven roadmapping can play a rol

Results-oriented roadmapping

Instead of saying the goal is improving a specific KPI, these product roadmaps value what will be possible after each initiative is complete. It gets out of the feature-specific mindset, leaving the implementation details intentionally fuzzy as the focus shifts toward the result. It could be anything from saving customers time when completing a task to unlocking an entirely new market for the product by adding additional functionality.

Outcome-driven roadmaps don’t ignore metrics, but they continually reevaluate which measurements are most important to track success against specific objectives. Outcomes determine the KPIs, not the other way around.

Forgoing features for themes

Product roadmaps have long been synonymous with features and delivery dates. Here’s what we’re building. Here’s when it will be ready. Things were sometimes grouped, but in general, it’s typically just a laundry list of what’s next on the docket.

But product roadmaps can and should be so much more than high-level project plans. A product roadmap is a unifying artifact that can get an entire organization excited about how the product vision and mission will unfurl. But the more specific a product roadmap gets, the less useful it becomes.

Instead of telling a story, it spells out a schedule. And that schedule is full of things for people to question, debate, and complain about. Plus, they’re outdated almost as soon as they’re exported, causing additional drama when false expectations are set and not met.

Moving to feature-less roadmaps spares everyone in the organization from drowning in details and nitpicking over dates and specifics. By basing product roadmaps on themes , the focus stays on strategy, goals, and outcomes. It’s far easier to align stakeholders and keep coworkers motivated and excited about the future this way than with a chronological litany of enhancements.

Theme-based roadmaps also require fewer updates and revisions. Since they’re less granular by definition, minor adjustments to dates and specific implementation details don’t warrant a modification.

A product strategy’s viability and performance reflect directly back on product management and its credibility . If it seems out-of-step with reality or isn’t delivering results, the blame and finger-pointing will always land on product managers.

With this in mind, product managers should be fully confident in their product strategy. If there’s anything shaky in its foundation, they have to immediately investigate and mitigate any shortcomings, errors, or oversights.

Inherited product strategies

Not everyone is there from Day One, so some product teams find themselves managing products where someone else created the initial strategy. However, this doesn’t mean it should be scrapped, and everyone should start from scratch.

The team should unpack for themselves, ensuring any misunderstandings aren’t personal. The current strategy’s meaning to stakeholders should be determined, as historical drivers and beliefs fuel it.

Most importantly, revisit the assumptions used to craft the existing strategy, challenging them when appropriate. Markets evolve, new research uncovers additional things, and the current strategy’s underlying basis may no longer be valid.

Avoid stale strategies

Product strategies should be revisited regularly (monthly or quarterly is a good cadence). Start with the assumptions and then bounce alternatives and new things against them. If the strategy stands up to this scrutiny, it’s still in good shape. If not, it’s probably time for a refresh.

Frequent strategy revisions and mid-course, minor corrections are more accessible than making a full-scale change after not revisiting it for a while. Persistent reevaluation also protects product management’s trust and reputation as the strategy isn’t drastically changing all the time.

It’s also prudent to revisit user personas. As usage grows, it may turn out the people using the product may not exactly match the initial crop of personas used in earlier strategy development. Plus, there may be entirely new markets finding value in the product that wasn’t part of the original plan.

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6 Steps for Implementing a Successful Product Quality Management Program

Abby Jenkins , Product Marketing Manager

April 3, 2020

Consistent quality is central to improving warehouse efficiency, efficiently managing inventory levels and delivering on customer expectations. Relying on an ad hoc approach to quality might have worked in good times but, in times of crisis, a comprehensive and systematic approach to quality can help minimize costs and maximize productivity.

An effective quality program encompasses both quality assurance and quality control. Quality control identifies flaws in a finished good before it is shipped to a customer, but without quality assurance you can’t easily identify where the problem originated. Quality assurance monitors the production process, such as ensuring quality of incoming raw materials or components, adhering to defined production processes and product testing. A successful quality program must oversee both control and assurance.

Here are six steps to implementing an effective quality program:

• Define what should be inspected.  Not only do you need to define which items should be inspected but also what should be reviewed about those items. Because each item serves a unique purpose, the inspection criteria is likely unique as well. Using NetSuite Quality Management there are two main inspection types:
• Qualitative inspections  - verifies that the item is in good overall condition
• Quantitative inspections  - allows you to define multiple, measurable elements along with criteria for acceptance, i.e. diameter, width, length, temperature or chemical composition
• Establish pass/fail criteria . Once you know what should be tested, you must define the standards that quality engineers will use to test against. You will define acceptable levels of variance for each element as well as anything that should automatically result in a failure. Documenting the standards is crucial to ensuring inspections are consistent.
• Define the parameters of the inspection . Next you will define what each inspection should look like. It will likely be a combination of qualitative and quantitative inspections. At what frequency do you want inspect? Will you conduct a 100% quality inspection – checking each item individually? This takes time and is expensive, but if it is a component from a new vendor or a new product launch, this might be the necessary. For the majority of products however, you may decide to inspect using sample sizes and lots. Using NetSuite Quality Management, you can define rules for inspecting specific sequences of lot or serial tracked items, set the sample size you want to inspect and establish how many lots should to inspect. You can set inspection rules specific to vendor or location – allowing you to easily keep a closer eye on components coming from a new or higher risk vendor.
• Design an inspection process and workflows.  Using a system to communicate to the quality engineers exactly what you want inspected ensures no matter who is conducting the inspections, you will get consistent results. With NetSuite Quality Management, once an item has been identified as requiring inspection, it is added to the inspection queue, and a quality engineer is assigned the task. Workflows walk the inspector through the inspection and prompt them to capture the results. Using a mobile app enables quality engineers to perform inspections, review standards, record data and submit data for analysis directly from the inspection area.
• Create a procedure for handling defects.  What happens when an item fails inspection? How many failures can you have per lot before the inspection fails? You should set up a workflow that defines what to do with the failed item as well as the associated lot. This could be further inspection of the lot, trigger a return to the vendor, or a quarantine and release strategy. Using NetSuite Quality Management, this process is customizable, allowing you to have a unique process for each item.
• Review the program and improve.  Once you’ve implemented a quality program, it’s time to review your results and make improvements, to both the program itself as well as the product. Product innovation and production teams can use quality test results to identify weaknesses in the supply chain, reoccurring product defects and inefficiencies in the production cycle. Likewise, quality teams can proactively identify reoccurring failures, resulting in decreased waste, defective goods and returns.

Quality doesn’t happen by accident. A quality management system enables companies to proactively address inefficiencies in the manufacturing process before the goods are complete. Identifying defective componentry and raw materials and flawed processes as they happen enables production to proactively make changes, and ultimately increases customer satisfaction.

Learn more about NetSuite Quality Management features and functionality in the  NetSuite 2020.1 Release (opens in new tab) .

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What Is Product Strategy? Framework & Examples

Build a product that aligns with your vision and goals by creating and adhering to a well-defined product strategy.

Product strategy is the plan created by a company to define the vision for a product and identify how that vision will be realized. A product strategy is built with the “big picture” of a product in mind, helping companies justify why their product should exist and how users stand to benefit. A well-tuned product strategy ensures that everyone is working in sync toward the same high-level business goals.

Your product strategy prioritizes the most important aspects of your product such as features and timetables over the course of product development . It keeps your business’ collective product management efforts focused on customer needs, market positioning, and your ultimate business goals. This focus on value enables your team to deliver a product launch with every feature in alignment with your original vision.

• Product strategy is the process of defining why a product should exist, who it will benefit, and how a company plans on developing it.
• Key elements for a successful product strategy often include leveraging a framework, diagnosing the problem, and envisioning the solution.
• There are several models companies can base their product strategies around, including differentiation, quality, cost, and focus models.

What is product strategy?

Product strategy bridges the gap between the conceptualization of a product and creating a set development plan. You may have a terrific idea for the next big product. However, odds are you’d find it difficult to jump straight from “dreamt up” to “drawn out on paper.”

A product strategy outlines the principles that justify the creation of the product and the work required to make it successful. It helps companies answer three essential questions about their product:

• Who is the customer base?
• How will the product address these customers’ pain points?
• How will the product benefit the company?

The answers to these questions will inform the broad-strokes planning of the product. These big-picture strategies include the types of features the product will contain, a general blueprint of product development, and the measurable objectives the company hopes to achieve.

Product strategy is often confused with the product roadmap . However, a roadmap is a timeline of action items that outline how exactly a product will come together. Successful roadmaps require the established vision, timelines, and goals set forth first in a clear product strategy.

Product strategy serves as a reference point as the product roadmap changes throughout development. Deadlines, tasks, and goals are all bound to shift or change altogether during product development in response to feedback, testing, and unexpected obstacles. A company that adheres to a set strategy is better equipped to handle changes and devise solutions in line with the ultimate vision for the product.

The importance of product strategy to your business

Product strategy benefits businesses by keeping a product’s trajectory aligned with both customer and internal expectations. A strategy is so vital to a product’s success that 84% of product managers identify ownership of their product strategy as one of their top responsibilities. A quality product strategy:

Defines your product’s niche

A well-researched product strategy provides companies with a clear sense of what niche their product will occupy when it goes to market. This awareness allows teams to make decisions during development that speak to the product’s niche and thus to its intended audience.

Imagine your product’s niche as a triangle. At one point, you have the customers you want to serve. On another point, you have the profit-minded goals of your company. On the third and final point, you have the various functions and features of your product that differentiate it from the competition.

A product strategy defines each of these points and helps to balance them against each other. You won’t sell a product that has a thousand features but no audience. You also won’t capture an audience by setting goals that force you to charge far more than comparable competitors.

Informs your product roadmap

Your product roadmap acts as the official game plan for developing, releasing, and growing your product. It’s a company’s ultimate resource for task management and helps ensure that deadlines are being met. Hiccups in the development process may change action items on the roadmap, but those changes are visible to and respected by all parties involved.

Product strategy directly informs your product roadmap by setting a sturdy foundation. Your strategy sets high-level deadlines and phases of your product’s development while your roadmap will detail the specific methods for execution. The roadmap you start out with is likely to look much different than the one you wind up with. However, a roadmap based on a clearly defined product strategy is likely to require fewer changes than one based on a bad strategy or no strategy at all.

Provides direction and clarity for internal teams

Your product team won’t be the only people within your company who need to be in sync with your goals. Everyone within your company works to bolster the success of your product. Sales teams need to know how to talk about its value to high-impact prospects. Marketers must develop a plan for marketing your product strategy to the broader public. IT and customer service teams need to understand how it works so they can anticipate the questions they’ll be fielding from users. Internal policies and plans for interfacing with customers should all focus on the points outlined in your product strategy to maintain consistent messaging in communications.

Additionally, every team within your business undoubtedly supports your product, but they may not always agree on the best way to get there. These teams should refer back to the product strategy when faced with uncertainty or disagreement. Potential decisions should be compared against the product strategy to determine which way forward speaks best to the intent of the product.

Components of a successful product strategy framework

In the simplest terms: write your product strategy down. It needs to be visible to every employee tasked with building, selling, and supporting your product-to-be. When you set your product strategy in stone, you create a resource for teams to refer back to at every stage of development. It also helps keep your product and company vision at the heart of every decision your team makes for your product.

The basic framework for an effective product strategy looks the same whether you’re building an ecommerce site or a crypto trading app. It must consist of more than a few empty platitudes and lofty goals for your product. Product strategy frameworks typically include the following steps:

• Evaluate where you are today. What does your product do now? What are its strengths and weaknesses?
• Define your product vision. What would you like your product to do, and why?
• Identify your target audience and their needs. Whose problems are you solving?
• Perform competitor research. How will we differentiate our product from what’s already out there?
• Analyze market trends. How well are existing options performing? What market changes should you anticipate?
• Set quantifiable goals. What does success look like? How will you define it?
• Create your product roadmap. How will we get there?
• Prioritize your initial actions. What steps must we take to ensure a successful start?
• Set guidelines for product strategy evaluation. Is product development still aligned with your initial strategy?

The use of a product strategy template can greatly aid in fleshing out the steps of a product strategy. Amplitude has developed a three-step product strategy template to help companies jump-start the creation of their own strategies. The template is designed specifically to inform your product strategy with insights from your own data. In it, you’ll find resources for:

• Delighting your customers
• Planning for growth
• Differentiating your product from the competition

Download the product strategy template to start creating your strategy.

3 key elements of a successful product strategy

The details of the final strategy will look different from every other business because your company’s values and objectives are unique. However, the foundation for every product strategy should include these elements:

1. Identify your audience

An alarming amount of products go to market without any discernible audience. Companies mistakenly believe that every great idea will equate to a well-received product. They never stop to think about whether their idea addresses the existing pain points of any prospective customers.

Companies must do the research before moving forward with crafting their product strategy to ensure that there’s an actual audience for their product. Research will also identify existing competitors and help you determine how you will need to position your product against them to be successful.

2. Embrace your data

At the heart of product strategy is a single question: “What are customers looking for in a product?” This question is more easily answered by companies well-acquainted with their product data. Behavioral analysis of your product data will reveal what features of your existing offerings provide the most value to your customers. These insights should then provide a basis or frame of reference for defining your new product, user base, and initiatives.

Even new businesses will find data-informed product strategies superior to the alternative. However, many companies haven’t achieved true data democracy . Data is often siloed in different departments, limiting visibility to valuable marketing, sales, or product insights across teams. Since product strategy is informed and adopted by every team in a company, it pays to use a unified data management system like Amplitude for maximum data accessibility.

3. Establish goals

You can’t solve a customer’s problems with a hypothetical product. Goal-setting establishes a timetable for the development of your product and synchronizes expectations for delivery across teams. Companies should start with their long-term goals for the product, like the dates for the official start of development and the product launch . Once these big picture goals have been established, the timetable should be divided into shorter phases so more focused goals and expectations can be created.

Goals are only helpful if they are measurable. As such, you need to have a method of gathering the metrics and data required to determine your progress toward each goal. Your goal for your music streaming service may be to have a million active users by the end of your first year. A data analytics solution like Amplitude would help you track your users from their first visit to your website all the way through the user onboarding process and beyond.

An example of Amplitude’s Pathfinder chart . Try it yourself for free .

Common metrics and KPIs used by companies to measure product strategy goals include:

• Customer acquisition cost (CAC)
• Customer lifetime value (CLV)
• Monthly recurring revenue (MRR)
• Monthly usage
• Retention rate

Examples of effective product strategy models

There isn’t a single product strategy example that fits every company’s goals. Several models have developed over time that align a company’s vision with the realities of their target market:

Differentiation strategy

This product strategy example works best for unique products compared to existing offerings on the market. Customers are drawn in by special features or capabilities they may not have even known they were missing. The cell phone industry has long been a battleground for companies who have touted everything from wireless charging to bendable screens to differentiate themselves from their competitors.

The key to differentiation strategy is to develop a product that stands out, and there are multiple ways to do so:

• The development of an entirely new feature. The appeal to customers is that no other product offers what yours does.
• The inclusion of as many related features as possible. Products that offer a comprehensive experience save customers from having to purchase multiple digital solutions.
• A focus on increasing a product’s usability. Sometimes existing products are unwieldy, overly technical, and not particularly friendly for beginner users. Some companies approach their products as the “easiest” way to get desired results.

Quality strategy

Another example of a specific product strategy is to create the best possible product in terms of reliability, capabilities, and experience. A quality strategy positions your product as the premium option against inferior competition. Apple enthusiasts continue to buy devices from the company because they are accustomed to the high-end aesthetics, OS, and digital ecosystem the company offers with great consistency.

Products built with quality in mind can’t afford to focus on pricing. Hiring the brightest minds and building the best products requires money and resources, and those costs are reflected in the product’s final pricing point. However, a product that delivers on its promise of quality is often positioned against “lesser” products as either a necessity or the first name in luxury.

For example, a data security product could ask customers whether providing anything less than the best digital protection is worth the risk. A company like Lamborghini doesn’t compromise the quality of their cars to appeal to a lower pricing point—which only makes the product even more desirable despite hefty price tags.

Cost strategy

Cost strategy focuses on making a good yet inexpensive product. Products built using this strategy are made as cost-effectively as possible so they can go to market at a lower pricing point than competitors. This strategy works best when your new product can’t be differentiated from existing offerings through new features, UI/UX improvements, or other value-centric aspects.

For example, a company in the business of making plastic forks would prioritize making the highest volume of functional forks for as little as possible. Customers are unlikely to nitpick the aesthetics or brand of their forks so long as they work.

Cost strategy works best if your improvements deal largely with improvements to the development process. The cheaper it is for you to develop a competitive product, the lower you can price your product while still remaining profitable. However, a pricing race to be the bottom often elicits bias from skeptical customers. Many believe an inexpensive product can’t be one of high quality and will pay more for something they believe to be of higher value.

Focus strategy

This popular approach to product strategy focuses on building a product to appeal to a hyper-specific market. Focus strategy allows companies to dedicate their resources to developing features for a well-defined segment. The end result is a product that performs exceptionally within a niche market instead of underwhelming a broader market with just a little bit of everything for everyone.

Examples of potential product niches include:

• A particular demographic: Your product could target users within a certain age bracket, vertical, or gender.
• A specific geographic area: Sometimes regionality is at the core of a product’s appeal. If you develop a product specifically designed to assist house flippers in Omaha, you should keep your focus on users from Omaha.
• A unique persona: Your product might appeal to a group of like-minded users who don’t fit neatly into demographic or geographic boxes. For instance, a persona-focused strategy would be the choice for a product aimed at tech founders or one built as a resource for new parents.

Focus strategy narrows your field of competition and allows you to focus on satisfying the specific needs of a small group. Consider this: 10% of people are left-handed. However, scissors have been made for right-handed users exclusively for most of human history. The company that released lefty scissors in 1967 went from competing for the whole market to owning 10% of it by focusing on the needs of a single group.

Product strategy over the product development lifecycle

A product strategy is meant to provide stability to the product development process. Constant changes to a strategy undermine its ability to provide consistent guidelines and expectations for your teams over the course of development. You should take time in the initial planning stages to ideate and revise your strategy so that your long-term vision holds up across the product development lifecycle.

That’s not to say that your product strategy should never be evaluated. Even the best-laid plans veer off course from time to time. Quick and routine assessments of how your current product roadmap aligns with your product strategy provide opportunities to correct “strategy drift.”

Additionally, product strategy should always be an iterative process. Your latest product strategy should be evaluated once your most recent product plan has run its course. The insights gained through a careful analysis of what worked and what didn’t will help build even more effective future strategies and thus even more successful products.

• Amplitude. Product Management Best Practices (Updated for 2022).
• Amplitude. How to Get into Product Management in 2022.
• Appcues. How to create a product roadmap in 6 steps.
• Wired. The Future of Phone Design: Flexible Screens That Roll Up.
• LinkedIn. Product Strategy vs. Product Roadmap: What’s the Difference?
• Feedback Loop. 2020 Product Management Insights Report.

Thinking through your next product strategy? Leverage product strategy worksheets from The Product Strategy Playbook: A Guide to Flywheels  and make sure you’re measuring the right goals by following the North Star Playbook .

About the Author

More best practices.

What makes a great product quality plan?

June 13, 2022

Tags: quality plan

A PQP is a blueprint for how you will maintain quality from beginning to end as products are developed, tested, manufactured, and shipped to your customers.

A Product Quality Plan (PQP) is a tool that will allow you to effectively communicate what you expect from your suppliers, your in-house workforce, or external contractors. It covers all areas of the production process from first concepts to the finished product.

It is essential to understand that when developing your PQP, it firstly has to address the needs and demands of your customer for that particular product or product category.

First steps with the customer include:

• review of the initial concept, prototypes or samples
• the customer issues their approved specs / drawings
• discuss milestones, budgets, scheduling
• don't forget to maintain records, e.g. meeting minutes

Design and development of the product and production process can happen in parallel, since each one influences the other:

• Review & optimise product design for manufacture, assembly
• Identify potential design issues / possible failure modes in product
• Develop control plan for prototyping, first-off validation
• Review manufacturing process
• Identify potential design issues / possible failure modes in process
• Review plant/equipment, tooling, gauges to plan for purchasing or changes

Validation of the product and process is an important step before production:

• Initial sample production
• Verify/validate measurement systems

Get final approvals to release for production:

• Produce initial batch and submit for final approvals
• Maintain quality control records

At all of these stages you need to review documents and maintain records.

As it develops, sharing the PQP with your customer will definitely aid communications and better facilitate the resolution of any corrective actions needed.

The PQP is a road map or guide that defines the quality standards that you expect for all your product development projects. It provides a framework or blueprint for how the products are developed, tested, manufactured, and shipped to your customers. A great PQP (Product Quality Plan) will be clear, simple, and flexible.

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Excellence in Execution: Developing a Comprehensive Quality Plan

October 8, 2023 - 10 min read

A quality plan is an integral part of any business strategy. It helps organizations define and maintain high standards in their processes, products, and services. By developing a comprehensive quality plan, businesses can ensure excellence in execution, improve customer satisfaction, and drive overall success. In this article, we will explore the importance of a quality plan, key elements to include, steps to develop it, and how to monitor and continually improve it.

Understanding the Importance of a Quality Plan

Quality is a fundamental aspect of business execution. It encompasses the ability to consistently deliver products and services that meet or exceed customer expectations. With the ever-increasing competition in today's market, businesses must strive for excellence in execution to remain competitive. A quality plan provides a structured framework to guide organizations in achieving their quality objectives and maintaining consistency in execution.

Its Role in Business Success

Implementing a quality plan requires a collaborative effort from all levels of the organization. It involves setting clear quality objectives and aligning them with the overall business strategy. It requires effective communication and coordination among different departments and functions to ensure that everyone is working towards the same goal.

A quality plan also involves establishing robust processes and systems to monitor and control quality throughout the organization. It includes regular audits, inspections, and reviews to identify any deviations from the established standards and take corrective actions. It also demands investing in training and development programs to enhance the skills and knowledge of employees, so they can contribute to delivering quality.

Lastly, a quality plan enables organizations to stay ahead of the competition. By continuously improving their products and services based on customer feedback and market trends, organizations can differentiate themselves and create a competitive advantage. It allows them to anticipate and respond to changing customer needs and preferences, securing long-term success in the market.

Key Elements of a Comprehensive Quality Plan

To develop an effective quality plan, several key elements must be considered. These elements provide a framework for organizations to manage and monitor their quality initiatives. Here are some important components to include:

Setting Quality Objectives

The first step in developing a quality plan is to set clear, measurable objectives. These objectives should be aligned with the organization's mission, vision, and strategic goals. Setting realistic and attainable objectives provides a clear direction for quality improvement efforts and helps prioritize resources.

When setting quality objectives, involve key stakeholders from different departments within the organization. This ensures that the objectives are comprehensive and reflect the needs and expectations of all relevant parties. Additionally, considering industry benchmarks and best practices can help organizations set ambitious yet achievable objectives. Once the quality objectives are established, communicate them effectively throughout the organization. This ensures that all employees understand the goals they are working towards and can align their efforts accordingly.

Identifying Key Performance Indicators

Key performance indicators (KPIs) are measurable metrics that reflect the organization's performance in relation to its quality objectives. These indicators enable businesses to monitor and track progress, identify areas for improvement, and make data-driven decisions. Some common quality-related KPIs include customer satisfaction ratings, defect rates, on-time delivery performance, and employee training hours.

When identifying KPIs, consider both lagging and leading indicators. Lagging indicators provide insights into past performance, while leading indicators help predict future outcomes. By monitoring a combination of both types of indicators, organizations can gain a comprehensive understanding of their quality performance.

It is also important to establish targets or benchmarks for each KPI. These targets should be challenging yet realistic, motivating employees to strive for continuous improvement. Regularly reviewing and analyzing KPI data allows organizations to identify trends, patterns, and areas that require immediate attention.

Establishing Quality Standards

Quality standards define the specific requirements and criteria that must be met to ensure high-quality products or services. These standards can be industry-specific, regulatory, or internally developed. By establishing clear standards, businesses can ensure consistency, improve customer satisfaction, and minimize the risk of defects or non-compliance.

When establishing quality standards, consider relevant regulations, industry best practices, and customer expectations. Conducting thorough research and benchmarking against competitors can help identify areas where the organization can differentiate itself through superior quality. Don't forget to involve cross-functional teams in the development of quality standards so that all perspectives are considered. This collaborative approach helps to identify potential challenges and ensures that the standards are practical and achievable.

Once the quality standards are established, communicate them effectively to all employees. Providing training and resources to support compliance with the standards is essential so that everyone understands their roles and responsibilities in maintaining quality.

Steps to Develop a Quality Plan

Developing a comprehensive quality plan requires careful planning and execution. Here are the essential steps to follow:

Conducting a Quality Assessment

Before implementing a quality plan, it is crucial to assess the organization's current quality practices and identify areas for improvement. This assessment involves reviewing existing processes, collecting data, conducting audits, and seeking feedback from both internal and external stakeholders. The findings from this assessment serve as a baseline for developing the quality plan.

During the quality assessment, gather information from various sources to gain a holistic understanding of the organization's quality practices. This may include conducting interviews with key personnel, analyzing customer complaints and feedback, and reviewing historical data on product or service defects. By gathering this comprehensive information, organizations can identify patterns and trends that need to be addressed in the quality plan.

Furthermore, the quality assessment should take into account any external factors that may impact the organization's quality practices. This may involve analyzing industry standards and regulations, benchmarking against competitors, and considering customer expectations. By taking these external factors into account, organizations can ensure that their quality plan is aligned with industry best practices and customer demands.

Creating a Quality Assurance Process

A quality assurance process outlines the procedures and activities that ensure products or services meet the established quality standards. This includes defining quality control checkpoints, conducting inspections, implementing testing protocols, and developing protocols for handling non-conformities. A robust quality assurance process helps monitor and verify compliance throughout the execution of business activities.

When creating a quality assurance process, consider the specific requirements of your respsective industry and the nature of the products or services. For example, in industries where safety is critical, such as aviation or healthcare, the quality assurance process may include stringent testing and validation procedures. For industries where speed and efficiency are key, such as software development or logistics, the quality assurance process may focus on continuous integration and automated testing.

Lastly, the quality assurance process should establish clear roles and responsibilities, so that everyone involved in the execution of business activities understands their role in maintaining and improving quality. By clearly defining roles and responsibilities, organizations can foster a culture of accountability and ownership, which is essential for the success of the quality plan.

Implementing a Quality Control System

A quality control system focuses on preventing defects, identifying deviations from standards, and taking corrective actions. This involves implementing quality control measures at each stage of the production or service delivery process. It may include inspection procedures, statistical process control techniques, employee training, and the use of quality control tools such as Pareto charts, control charts, and fishbone diagrams.

When implementing a quality control system, consider the specific requirements of your products or services. For example, in manufacturing industries, quality control measures may involve conducting regular inspections on raw materials, monitoring production processes for deviations, and performing final product inspections. In service industries, quality control measures may mean monitoring customer interactions, conducting service quality assessments, and implementing feedback mechanisms.

What's more, the success of a quality control system relies on the competence and training of employees. Organizations should invest in providing comprehensive training programs to ensure that employees understand the importance of quality and are equipped with the necessary skills to implement quality control measures. This may include training on quality standards, inspection techniques, data analysis, and problem-solving methodologies.

Additionally, organizations should continuously monitor and evaluate the effectiveness of their quality control system. This can be done through regular data analysis, performance metrics tracking, and customer feedback analysis. By identifying areas of improvement and taking proactive measures to address them, organizations can continuously enhance their quality control system and ensure the delivery of high-quality products or services.

Monitoring and Improving the Quality Plan

Developing a quality plan is not a one-time effort; it requires ongoing monitoring and continuous improvement. Here are some key activities to ensure the effectiveness of the quality plan:

Regular Review of the Quality Plan

Periodic reviews of the quality plan are essential to assess its relevance, identify areas for improvement, and incorporate any changes in the business environment. These reviews can involve input from key stakeholders, evaluating KPIs, analyzing customer feedback, and conducting internal audits. Overall, regularly reviewing the quality plan helps organizations stay proactive in maintaining high standards of execution.

Continuous Improvement of Quality Standards

To achieve excellence, businesses must continuously strive to improve their quality standards. This can be done through various methodologies such as Six Sigma, Lean, Total Quality Management (TQM), or continuous improvement frameworks like Plan-Do-Check-Act (PDCA). Continuous improvement meanas identifying opportunities for enhancement, implementing changes based on data-driven insights, and fostering a culture of learning and innovation within the organization.

Adapting the Quality Plan to Business Changes

Businesses operate in dynamic environments, and change is inevitable. As the organization evolves, so should the quality plan. It is important to periodically assess the impact of internal or external changes on the quality plan and make necessary adjustments. This can include revising quality objectives, modifying quality standards, adapting processes, or reallocating resources.

Achieve Excellence in Execution with Wrike

Developing a comprehensive quality plan for excellence in execution is like having a detailed blueprint for a building. It outlines the standards, procedures, and measures to ensure quality. However, managing these quality plans across multiple projects can be challenging.

This is where Wrike steps in. Within Wrike, you can easily create folders for each project or quality plan. These folders can serve as a place where you can store plan details, quality metrics, and even your audit reports. This structured approach brings excellence and comprehensiveness to your execution, much like a detailed blueprint guides a building's construction.

And when it comes to the other documents and workflows your business needs — whether it's quality management or project tracking — Wrike has you covered with robust project management features and ready-to-use templates. Ready to achieve excellence in execution? Start your free trial of Wrike today.

Note: This article was created with the assistance of an AI engine. It has been reviewed and revised by our team of experts to ensure accuracy and quality.

Occasionally we write blog posts where multiple people contribute. Since our idea of having a gladiator arena where contributors would fight to the death to win total authorship wasn’t approved by HR, this was the compromise.

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Additionally, advancements in technology have made demand forecasting more accurate and efficient. Companies can now leverage sophisticated algorithms and machine learning techniques to analyze large volumes of data and identify patterns and trends. This enables them to make more precise predictions and adjust their production schedules accordingly. Resource Allocation Resource allocation involves assigning the necessary resources, such as labor, machinery, and raw materials, to each production task. This ensures that the right resources are available at the right time, minimizing downtime and maximizing productivity. When allocating resources, companies must consider various factors, such as the availability and skill level of their workforce, the capacity of their machinery, and the availability of raw materials. They must also take into account any potential bottlenecks or constraints that may impact the production process. For instance, a car manufacturer may need to allocate specific workers with specialized skills to perform certain tasks, such as welding or painting. They must also confirm that the necessary machinery and equipment are in good working condition and properly maintained to avoid any disruptions in the production schedule. Time Management Efficient time management plays a vital role in production scheduling. Time estimates for each task are essential for creating a realistic and achievable schedule. This includes considering factors such as setup time, processing time, and lead times for procuring materials. To effectively manage time, companies often use various techniques and tools. They may employ project management methodologies, such as the Critical Path Method (CPM) or the Program Evaluation and Review Technique (PERT), to analyze the sequence of tasks and identify the critical path that determines the project's overall duration. What's more, companies can leverage technology to streamline time management in production scheduling. They may use software systems that automate the scheduling process, allowing for real-time updates and adjustments. These systems can also provide visibility into the progress of each task, enabling managers to identify any potential delays or bottlenecks and take corrective actions. Steps to Master Production Scheduling Mastering production scheduling requires a systematic approach and adherence to certain steps. Let's explore each of these steps: Identifying the Production Needs The first step in production scheduling is to identify the production needs. This involves reviewing customer orders, sales forecasts, and inventory levels to determine the required production output. Remember to consider factors such as market demand, customer preferences, and production capacity. Additionally, involve key stakeholders such as sales teams, production managers, and supply chain experts in the process. This collaborative approach helps in gathering valuable insights and aligning production schedules with overall business objectives. Prioritizing Tasks Once the production needs are identified, it is essential to prioritize tasks based on various factors such as customer deadlines, order importance, and resource availability. This way, critical tasks will be completed on time and with the necessary resources. Prioritization plays a vital role in production scheduling as it helps in allocating resources effectively. By giving priority to high-value orders or time-sensitive projects, businesses can enhance customer satisfaction and maintain a competitive edge in the market. Moreover, effective task prioritization requires a deep understanding of the production process, resource capabilities, and potential bottlenecks. By considering these factors, businesses can make informed decisions and optimize their production schedules. Scheduling Resources After prioritizing tasks, the next step is to schedule the required resources. This includes assigning manpower, equipment, and materials to each task in a way that optimizes their utilization and minimizes idle time. Resource scheduling involves careful consideration of factors such as skill sets, availability, and capacity. By matching the right resources to each task, businesses can ensure efficient production processes and minimize the risk of delays or inefficiencies. In addition to human resources, technology also plays a crucial role in resource scheduling. Advanced production planning software and automation tools can help in optimizing resource allocation, reducing manual errors, and improving overall productivity. Monitoring and Adjusting the Schedule Production scheduling is an ongoing process that requires constant monitoring and adjustment. It is crucial to regularly review the schedule, track progress, and make necessary adjustments to accommodate unforeseen events or changes in demand. Monitoring the production schedule involves tracking key performance indicators (KPIs) such as production output, cycle time, and resource utilization. By analyzing these KPIs, businesses can identify areas for improvement, address bottlenecks, and optimize their production schedules. Additionally, flexibility is essential in production scheduling. Businesses should be prepared to adapt their schedules based on market dynamics, customer demands, or unexpected disruptions. This adaptability allows businesses to maintain operational efficiency and meet customer expectations even in challenging circumstances. Implementing Technology in Production Scheduling Advancements in technology have revolutionized production scheduling. The introduction of production scheduling software has simplified and enhanced the efficiency of this critical process. Role of Production Scheduling Software Production scheduling software provides businesses with comprehensive tools and features to streamline and automate the scheduling process. It enables real-time visibility into production activities, resource availability, and order status, allowing for better decision-making and effective coordination. With production scheduling software, businesses can easily create and manage production schedules, assign tasks to specific resources, and track progress in real-time. The software also provides notifications and alerts so that production activities are completed on time and according to plan. This level of visibility and control helps businesses optimize their resources, reduce downtime, and improve overall productivity. Benefits of Automated Scheduling Automated scheduling offers numerous benefits, including increased accuracy, reduced manual errors, and improved overall efficiency. It eliminates the need for manual calculations, reduces scheduling conflicts, and enables quick adjustments to accommodate changing priorities or production requirements. Overall, mastering production scheduling is a crucial aspect of running an efficient and successful manufacturing operation. Understanding the basics of production scheduling, incorporating key elements, and following a structured approach can help businesses optimize resources, meet customer demands, and achieve higher levels of productivity. By embracing technology, such as production scheduling software, businesses can further enhance efficiency and stay ahead in today's competitive marketplace. Master the art of production scheduling with Wrike's advanced scheduling tools. Sign up for a free trial today, enhance efficiency, optimize resource utilization, and maximize output. Note: This article was created with the assistance of an AI engine. It has been reviewed and revised by our team of experts to ensure accuracy and quality.

Key Sales Pipeline Metrics to Monitor for Business Success

Every business should strive to have a clear understanding of their sales pipeline metrics. These metrics provide valuable insights into the effectiveness of the sales process, allowing you to identify areas for improvement and drive business success. By monitoring key sales pipeline metrics, you can make data-driven decisions that ultimately lead to increased revenue and sustainable growth. Understanding the Importance of Sales Pipeline Metrics Sales pipeline metrics are quantitative measurements that track your sales activities and their corresponding outcomes. They provide a snapshot of your sales process, from lead generation to closing deals. These metrics can be categorized into various stages of the sales process, which include lead generation, sales activity, sales conversion, and revenue. Why Monitor Sales Pipeline Metrics? Monitoring sales pipeline metrics provides numerous benefits to your business: Identify Bottlenecks and Inefficiencies: Pinpoint areas where deals often get stuck or take longer to close. This allows you to address these bottlenecks and optimize your sales process. Forecasting Accuracy: Predict future sales with greater precision and plan your resources accordingly. Spotting Trends and Patterns: Identify trends and patterns in your sales process to adapt your strategies, replicate successful approaches, and avoid repeating ineffective practices. Align Sales and Marketing Efforts: Line up your sales and marketing efforts by flagging which marketing initiatives generate the highest-quality leads and result in the most closed deals. Continuous Improvement: Foster a culture of continuous improvement within your sales organization and motivate your sales team to do better every day. Now, let's delve deeper into each category of sales pipeline metrics to gain a more comprehensive understanding. Lead Generation Metrics Lead generation metrics provide insights into the effectiveness of your lead generation efforts. These metrics help you evaluate the quantity and quality of leads entering your pipeline, enabling you to assess the success of your marketing campaigns and lead nurturing strategies. Here are a few of them: Number of leads generated: Gauges the total number of leads generated within a specific time period. It helps you measure the effectiveness of your marketing initiatives and identify potential areas for improvement. Lead conversion rate: Measures the percentage of leads that convert into opportunities or move to the next stage of the sales process. It refers to the quality of your leads and the effectiveness of your lead nurturing efforts. Cost per lead: Calculates the average cost incurred to generate a single lead. It helps you evaluate the efficiency of your lead generation strategies and allocate resources effectively. Sales Activity Metrics Sales activity metrics focus on measuring the activities carried out by your sales team. These metrics provide insights into the productivity and effectiveness of your sales representatives, helping you identify areas for improvement and optimize their performance. Here are several of them: Number of calls made: Tracks the total number of calls made by your sales team. It assists you in assessing their level of activity and the effort put into prospecting and engaging with potential customers. Number of meetings scheduled: Measures the total number of meetings scheduled with prospects or existing customers. It indicates the level of engagement and the effectiveness of your sales team in moving leads through the pipeline. Number of presentations delivered: Calculates the total number of presentations delivered by your sales representatives. It aids you in evaluating their ability to effectively communicate your product or service value proposition. Sales Conversion Metrics Sales conversion metrics assess how well your leads progress through each stage of the sales process and ultimately convert into closed deals. These metrics provide insights into the effectiveness of your sales strategies, allowing you to identify areas for improvement and optimize your conversion rates. Here are some examples: Opportunity-to-win ratio: Measures the percentage of opportunities that convert into closed deals. It helps you evaluate the efficiency of your sales process and the ability of your sales team to successfully close deals. Time to close: Calculates the average time it takes for a lead to progress through the sales pipeline and convert into a closed deal. It assists you in flagging bottlenecks and optimizing your sales process to reduce the time-to-close. Win rate: Records the percentage of opportunities that result in closed deals. It aids you in assessing the effectiveness of your sales strategies and the ability of your sales team to win deals. Revenue Metrics Revenue metrics track the financial impact of your sales efforts. These metrics provide insights into the overall performance and profitability of your sales organization, helping you make data-driven decisions to maximize revenue. Here are a few key ones: Deal size: Measures the average value of closed deals. It helps you understand the revenue potential of each deal and optimize your pricing strategies. Average revenue per customer: Calculates the average revenue generated per customer. It lets you assess the profitability of your customer base and identify opportunities for upselling or cross-selling. Overall revenue generated: Tracks the total revenue generated by your sales team within a specific time period. It provides an overview of your sales performance so that you can evaluate the effectiveness of your sales strategies. Essential Sales Pipeline Metrics for Business Success Now that we understand the importance of sales pipeline metrics, let's explore some key metrics you should definitely monitor for business success: Lead Quantity and Quality The quantity of leads entering your pipeline is essential, but quality is equally important. Track the number of leads generated from various sources and assess their conversion rates. Identify patterns and characteristics that are common among your most valuable customers, as these can be useful in current and future marketing efforts. For example, you may find that leads generated from social media campaigns have a higher conversion rate compared to leads from email marketing. This insight allows you to invest more resources in social media campaigns and refine your email marketing strategy to improve its effectiveness. Sales Cycle Length The length of your sales cycle directly affects your revenue and cash flow. Measure the time it takes for a lead to move through each stage of the pipeline and convert into a paying customer. Identify areas where deals get delayed or stalled and take proactive measures to streamline the process. Remember to study the sales cycle length to predict revenue and manage your cash flow more effectively.  For instance, you may find that leads spend a significant amount of time in the negotiation stage, causing delays in closing deals. This insight prompts you to implement strategies to accelerate the negotiation process, such as providing clearer pricing options or offering additional incentives. Conversion Rates Conversion rates provide valuable insights into the effectiveness of your sales efforts. Monitor the percentage of leads that successfully convert into customers at each stage of the pipeline. Track conversion rates to evaluate your sales team's performance. For example, you may notice that a significant number of leads drop off during the product demonstration stage. This observation prompts you to analyze the effectiveness of your demonstrations and make improvements, such as enhancing the presentation or addressing common objections more effectively. Deal Size and Revenue Monitor the average deal size and overall revenue generated from your sales efforts. Identify which types of deals have the greatest impact on your bottom line and focus your resources accordingly. Analyze the return on investment (ROI) of your marketing and sales activities. If you find that a particular marketing campaign consistently generates a high revenue, you can allocate more resources to scale that campaign and maximize its impact. For example, you may find that deals with larger companies tend to have a higher average deal size. Armed with this information, you can allocate more resources to target larger companies and tailor your sales approach to meet their specific needs. Tools and Techniques for Monitoring Sales Pipeline Metrics Now that you understand the essential metrics to monitor, let's explore some tools and techniques that can help you effectively track and analyze your sales pipeline: CRM Systems  A Customer Relationship Management (CRM) system is a powerful tool that enables you to manage and track your sales pipeline metrics. CRM systems allow you to capture and analyze data related to leads, opportunities, and deals. They provide insights into each stage of the sales process and help you identify areas for improvement. By leveraging CRM systems, you can automate your sales workflow, streamline communication, and gain a holistic view of your sales pipeline. These systems provide real-time visibility into your sales performance, allowing you to make data-driven decisions and drive business success. Data Visualization Data visualization tools can help you transform complex data into intuitive visuals. By creating charts, graphs, and dashboards, you can easily interpret and communicate your sales pipeline metrics to stakeholders. Data visualization enables you to spot trends, identify patterns, and make informed decisions quickly and effectively. Regular Sales Pipeline Audits Conducting regular sales pipeline audits is crucial for maintaining the accuracy and integrity of your pipeline metrics. By thoroughly reviewing your pipeline, you can identify discrepancies, outdated information, and potential areas for improvement. Regular audits help verify that the data on which you base your decisions is reliable and up to date. How to Improve Your Sales Pipeline Metrics Monitoring your sales pipeline metrics is only the first step. To drive business success, you must continually improve these metrics and optimize your sales process. Here are some strategies to enhance your sales pipeline metrics: Enhancing Lead Generation Strategies Focusing on high-quality leads can significantly impact your sales pipeline metrics. Continuously review and refine your lead generation strategies to attract leads that are more likely to convert into customers. Consider leveraging data-driven marketing tactics, conducting thorough market research, and optimizing your website for lead generation. Streamlining the Sales Process Identify areas in your sales process that can be streamlined. Look for tasks that can be automated or eliminated to reduce the time it takes for leads to move through the pipeline. By removing unnecessary steps and improving efficiency, you can accelerate your sales cycle and increase conversion rates. Training and Development for Sales Teams Invest in training and development programs for your sales team to enhance their skills and knowledge. Provide them with the tools and resources they need to effectively engage with leads and close deals. By continually developing your sales team's capabilities, you can improve their performance and drive better sales pipeline metrics. Overall, monitoring key sales pipeline metrics is vital for your business's success. By understanding the importance of these metrics, utilizing the right tools and techniques, and implementing strategies to improve them, you can optimize your sales process, increase revenue, and achieve sustainable growth. Monitor key sales pipeline metrics using Wrike’s advanced analytical tools. Register for a free trial today and align your sales strategies with solid data for guaranteed business success. Note: This article was created with the assistance of an AI engine. It has been reviewed and revised by our team of experts to ensure accuracy and quality.

Catalyzing Business Growth: Strategies for Expansion

Expanding a business is an exciting and challenging endeavor. It requires careful planning, strategic thinking, and a deep understanding of the market. In this article, we will explore the key strategies for business expansion and how to catalyze growth effectively. Whether you are a small startup or an established company, these strategies will provide valuable insights into achieving your growth goals. Understanding Business Expansion Business expansion offers numerous benefits, such as increased market share, higher revenues, and improved brand recognition. It allows businesses to tap into new markets, gain a competitive edge, and attract a larger customer base. However, expanding without a well-thought-out plan can be risky and may lead to financial instability. Therefore, it is essential to carefully consider all aspects of expansion before embarking on this journey. The Importance of Business Growth Vital for long-term success and sustainability: Stay ahead of the competition, adapt to changing market trends, and take advantage of new opportunities. Attract potential investors and strategic partnerships.  Improves company culture: Boost employee morale and provide career advancement opportunities. Platform for innovation and creativity: With a larger customer base, you have the opportunity to gather valuable feedback and insights, enabling you to refine your products or services and meet the evolving needs of your target audience. Access to new markets and geographical locations: Diversify your customer base and reduce dependency on a single market. Establish a global presence and build a strong network of partners and suppliers, facilitating further growth and expansion. Key Factors in Business Expansion Several key factors play a crucial role in successful business expansion: Market Demand: Before expanding, assess the market demand for your products or services. Conduct market research and analyze customer preferences and buying patterns to confirm that there is a sustainable demand in the new market. Identify potential gaps in the market that your business can fill, offering unique value propositions to attract customers. Competitive Analysis: Understand the competitive landscape in the target market. Identify key competitors and analyze their strengths and weaknesses. This analysis will help you position your organization and differentiate it from the competition. Develop a compelling value proposition that highlights your unique selling points and conveys why customers should choose your business over others. Operational Capacity: Evaluate your operational capacity to handle expansion. Verify that you have the necessary infrastructure, resources, and systems in place to meet the increased demand without compromising product quality or customer service. Consider factors such as production capacity, supply chain management, and distribution channels. Implement scalable processes and invest in technology that can support your growth objectives. Financial Planning: Expansion requires significant financial resources. Develop a comprehensive financial plan that includes projected revenues, expenses, and cash flow forecasts. Assess your funding options, such as internal sources (retained earnings) or external sources (loans, investments). Consider the potential risks and uncertainties associated with expansion and have contingency plans in place to mitigate them. Talent Acquisition and Development: Expanding your business may require additional workforce. Evaluate your current talent pool and identify any skill gaps that need to be filled. Develop a recruitment strategy to attract and hire qualified individuals who align with your company's values and objectives. Additionally, invest in training and development programs to upskill existing employees and ensure they are equipped to handle new responsibilities and challenges. Formulating a Strategic Plan for Growth Expanding a business requires careful planning and consideration of various factors. In order to oversee a smooth and successful expansion, it is important to set clear business objectives and conduct a thorough analysis of the internal and external environment. Setting Clear Business Objectives Clearly define your business objectives for expansion. Are you aiming to penetrate a new market, launch new products, or expand geographically? Remember to consider the current market conditions, customer demands, and competitive landscape. Conducting a SWOT Analysis Identify internal strengths and weaknesses, as well as external opportunities and threats. This analysis will help you capitalize on your strengths, address weaknesses, seize opportunities, and mitigate potential risks. Remember to involve key stakeholders from different departments within your organization, for a holistic view of your business and access to diverse perspectives.  During the analysis, consider your company's strengths, such as a strong brand reputation, talented workforce, or innovative products. These strengths can be leveraged to gain a competitive advantage in the new market or industry segment you are targeting. Identifying weaknesses is equally important, as it allows you to address any internal limitations that may hinder your expansion efforts. This could include areas such as outdated technology, lack of skilled personnel, or inefficient processes.  Opportunities and threats in the external environment should also be carefully evaluated. This could include emerging market trends, changes in consumer behavior, or new technological advancements. Similarly, by recognizing potential threats, such as increased competition or economic downturns, you can develop strategies to mitigate their impact. Financial Considerations for Business Expansion Expanding a business requires sound financial planning to guarantee long-term viability and success. Consider the following financial aspects when formulating your expansion strategy: Budgeting for Growth Develop a detailed budget that accounts for all expansion-related expenses, such as marketing campaigns, additional staff recruitment and training, infrastructure investments, and increased operational costs. Verify that your projected revenue growth aligns with your planned expenses. When creating your budget, consider both short-term and long-term financial goals. Short-term goals may include immediate expenses related to the expansion, while long-term goals may involve planning for future growth and sustainability. Additionally, factor in potential risks and uncertainties that may impact your financial projections. Conducting a thorough risk assessment can help you identify and mitigate potential financial challenges, so that your budget remains realistic and achievable. Exploring Financing Options Consider various financing options to fund your expansion. These may include bank loans, venture capital, crowdfunding, or seeking partnerships with strategic investors. Carefully evaluate the pros and cons of each option to determine the most suitable financing strategy for your business. When exploring financing options, assess your business's current financial health and creditworthiness. Lenders and investors will evaluate your financial statements, credit history, and cash flow to determine the level of risk associated with providing funds. Furthermore, seek professional advice from financial experts, such as accountants or financial advisors, who can guide you through the process and help you make informed decisions. They can assist in analyzing the financial implications of different financing options and provide recommendations based on your specific business needs. Remember that securing financing for expansion is not just about obtaining the necessary funds; it also involves understanding the terms and conditions associated with each financing option. Consider factors such as interest rates, repayment terms, collateral requirements, and potential impact on your business's ownership and control. Lastly, maintaining open communication with potential lenders or investors is crucial. Clearly articulate your expansion plans, demonstrate your business's growth potential, and provide a comprehensive financial proposal that highlights the expected return on investment. Building trust and credibility with financial stakeholders can increase your chances of securing the necessary funds for your business expansion. Human Resources and Business Growth Efficiently managing human resources is crucial during business expansion, as shown by the factors below. Staffing for Expansion Assessing the current workforce is not only about identifying the need for additional staff members, but also about evaluating the existing employees' potential for growth and development. By recognizing the talent within the organization, businesses can provide opportunities for internal promotions and career advancement. This not only motivates employees but also fosters loyalty and commitment to the company. When hiring new employees, take into account diversity and inclusion. By creating a diverse workforce, businesses can benefit from a wide range of perspectives, experiences, and ideas. This can lead to increased innovation, creativity, and problem-solving capabilities, which are essential for business growth. Training and Development for Growth Investing in training and development programs is crucial to making sure that employees have the necessary skills and knowledge to support the expanded operations. By providing continuous learning opportunities, businesses can enhance the capabilities of their workforce, leading to higher productivity and better customer service. Training programs can include a variety of methods, such as workshops, seminars, online courses, and on-the-job training. These initiatives can focus on developing technical skills, leadership abilities, communication skills, and other competencies that are essential for business growth. Moreover, businesses can also consider partnering with external training providers or educational institutions to offer specialized programs tailored to their specific industry or market. By providing employees with access to industry-leading training, businesses can stay ahead of the competition and see to it that their workforce remains up-to-date with the latest trends and best practices. Marketing Strategies for Business Expansion Effective marketing strategies are essential for creating brand awareness and driving customer acquisition during business expansion. Branding and Expansion Review and refine your brand strategy to align with the expanded market and target audience. Confirm that your brand positioning, messaging, and visual identity convey the unique value proposition of your business in a way that resonates with the new market. Digital Marketing for Growth Leverage the power of digital marketing channels to reach your target audience and generate leads. Invest in search engine optimization (SEO), social media marketing, content marketing, and targeted online advertising to expand your reach and drive traffic to your website or physical location. Catalyze Your Business Growth with Wrike Business growth requires effective strategies and the right tools. With Wrike, you can easily manage your growth strategies. Wrike allows you to create individual folders for each growth initiative, serving as a central hub for all relevant information and updates, fostering effective growth management. Beyond just growth management, Wrike offers a comprehensive suite of tools designed to streamline your workflows, foster collaboration, and drive productivity. From real-time communication to intuitive task management features, Wrike provides everything you need to catalyze your business growth and drive expansion. Ready to catalyze your business growth and drive expansion? There's no better time to start than now. Get started with Wrike for free today. Note: This article was created with the assistance of an AI engine. It has been reviewed and revised by our team of experts to ensure accuracy and quality.

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QA 101: how to manage product quality right from the start

‍ Being the only Quality Assurance (QA) manager on a project is challenging. If you are the only QA and the project is brand new — it may be an unbearable combo. Still, even such a project can pass smoothly if you know how to act and what to look at. You need a good action plan.

This post — based on the experience of QA engineer Olya Kolyada — provides a simple set of instructions to start a project and survive it. You'll also learn what blockers you may stumble upon in the process and how to avoid these obstacles.

QA at the start of the project

It’s common knowledge that it’s better to assign a QA to a product team as soon as possible. The attentive eye and sharp mind of a QA engineer can greatly help the team from day 1. Here are just a few advantages:

• The QA will be introduced to the team and the founder(s) right away and will be able to describe the QA's importance on the project.
• QA presence at the meetings to discuss design, deadlines, technical realization, and requirements will help to cover some controversial issues and take testing into account to set realistic expectations.
• QA will help with thorough preparation for future reviews and extensive testing. It will give more time to think over test cases and checklists, prepare complete test documentation and conduct requirements testing.
• In the early stages, QAs can organize their work based on their working routine. It’s an inspiring part of the job that tests their strengths by setting up QA processes, prioritizing test cases, and making choices in testing methods. Of course, if necessary, there will always be a mentor and PM nearby, so QA can safely turn to them for help.

As you can see, the advantages to introduce QA to the project early are numerous. So what exactly must your QA start with?

Organizing QA work

Set up and follow a list of steps to begin working on the project. It will help your engineers to be more confident and to better understand their work. Here’s the process we use:

• Stage 1: Learn and ask questions
• Stage 2: Document and plan
• Stage 3: Be prepared and think it over
• Stage 4: Test and show your results

🎁 Bonus — find the full step-by-step checklist at the end 🎁

Stage 1: Understanding the new product

Imagine you just joined the team, were introduced to your teammates, and learned the name of the project. Your next step is to review the existing documentation, understand the goals of the project , and start asking questions.

The answers may be not needed at this exact stage of product development, but you will need them later during testing.

Start with these steps:

1. listen to a project manager’s (or pdms, or bas) presentation about the project..

After the presentation, it will be way easier to navigate the project documentation and see what’s missing.

2. Review the existing requirements and other documents about the project.

This information gathering will help you understand the product faster. Start with sources created right at the beginning of the project because they can provide you with context and the initial goals.

It’s important to check all the details, no matter if it's formal documentation, the product itself, or similar products and competitors. Note any inconsistencies in the information, so you can sort them out later.

There is no need to plan how exactly the testing will take place yet! It’s more important to build initial models of what needs to be tested and what may be important to evaluate the quality of the product.

Later, these sketches form the basis of the future QA vision. If you’re a visual person, you can present testing ideas and various related blocks of the project in the form of mind maps with tools like Miro or Mindmeister .

3. Get acquainted with the founders to show them what you are going to do on the project and find out their testing expectations. This step is optional but preferable.

To some founders, it’s important to meet the whole team, find out all the details for each stage of work, and delve into all the complexities. For others, brief reports are enough.

Still, if you have the opportunity to meet them and briefly explain what exactly you will do on the project, be sure to use it.

Closer contact let's you clarify important points for your work in the future such as priorities, testing deadlines, overall project deadlines, defects, and gaps in requirements. Speaking directly also helps you to avoid any possible miscommunication issues.

Of course, if communication with founders is limited, you still will be able to receive all the details from PM and BA.

4. Discuss the project’s timeline, testing deadline limits, priorities, and possible risks.

Joining the project early brings you into important discussions about the exact timing and estimates of development and testing, the architecture of the future application, priorities for the main modules, potential risks, and limitations.

Most likely there will be several meetings, and you, as a QA, will be protected by your team and allowed to skip some discussions. But if you have free time, it’s better to join the discussions to understand the full scope of the project.

Stage 2: Document and plan your QA strategy

In the second stage, the QA needs to work on project documentation.

5. Write a QA vision.

Let’s assume that from now on all the necessary information for the QA vision will be in your hands. If some issues on the project — exact priorities or deadlines — are not yet completely clear, you can add them later.

The main goal of the QA vision is to gather all the detailed information about the project to help choose the right approaches for organizing testing and working with the founder. The QA vision may serve as a full-fledged replacement for a test plan, if the project is short-term.

Remember, once written, the document must be reviewed and approved by the PM and stakeholders.

6. Create a testing strategy and plan.

At this stage, you should have a good understanding of the project, its architecture, and its domain. It's time to understand how exactly you will perform tests.

• Review your notes and decompositions from the documentation — add or supplement as needed.
• Compile and prioritize a list of modules that will be tested later or will be excluded from the scope of work.
• Confirm the testing scope with the product manager.
• Form a testing strategy to determine the approaches and depth of testing to highlight the necessary techniques.
• Review and form the limitations and risks of the project, create strategies for their resolution.
• Determine the criteria for starting and ending testing, and criteria for evaluating the results.

7. Write a test plan.

If you’re working on a long-term project, writing a test plan is mandatory. In the end, it will become the main document regulating the work of the QA team on the project. The purpose of the document is to provide a general plan to conduct testing, based on the system requirements, processes, and other important features of the project. Details of the plan may depend on the context of the project and the requirements of the customers.

Remember that the test plan is more dynamic than QA vision, and can be changed during the life cycle of the project. It is also subject to agreement with the PM, founders, and the whole team.

Stage 3: Prepare your QA tools and tests

It’s finally time to prepare for the actual development stage!

8. Prepare all the necessary tools and environments for testing.

First of all, you need to prepare and verify all your management tools. Will you have Jira, Trello, or Linear? Then prepare the test management tools, and documentation tools (Sitechco or Notion?). Is there anything else you need? Are there any problems with access? Are all the documents you’ve created already placed in the right sections?

Make sure that you have installed the browsers and tools necessary for testing, such as Postman. You will also probably need a database, so set up your access in advance. Check that the test environment is stable and ready for you to actively use it.

9. Analyze and design all the necessary test cases and checklists.

Based on the priorities and strategy that you thought through and possibly described in the test plan, it should be easier to determine where to start and how to design tests. Depending on the duration of the project, its specificity, and other factors, you will need to choose the preferred format — test cases or checklists.

Remember to properly break tests into chunks and assign them the correct priority. In addition to checking the new functionality, you will need to generate test sets for Smoke, Basic, Regression, and Sanity tests (if this is relevant to your project).

If you find defects in the requirements when designing test cases, you need to report them in the bug tracking system in the same way as ordinary defects.

In addition to test documentation, you can work on a requirements coverage matrix that helps to trace test scenarios to functional requirements and ensures that all requirements have appropriate checks. However, the coverage matrix will only be relevant if the requirements are fully covered.

Stage 4: Test the product and show your results

Everything is ready for the testing process. Always look into the documentation you've created, make changes when needed, and ask the right people the right questions. It’s all that matters to do it properly. The only step we need to cover more is reporting results.

10. Create reports on intermediate results and share them with the team and stakeholders.

At the very first stage, when meeting with stakeholders, it would be nice to clarify with them what kind of information they need from you and how often to provide it. Without waiting for an answer, you can initially offer a specific option yourself, for example, monthly or weekly QA reports, Regression statuses, and Root Cause Analysis of defects in production. Perhaps you will be asked to provide some information by the founders themselves.

If you are given the freedom of choice, then it’s better to decide first on which reports you will work on and how often. As a result, all QA Reports must be provided to the team and customers.

Possible difficulties and solutions

Problem 1: not enough detail in the project documentation, and much is still unclear..

What do you do if some details of the project are clarified on the go? Follow the steps above, but perhaps in a slightly different order, or repeat some steps twice. For example, editing and adding something to the documentation when more details become available.

Be sure to write down all open questions and clarify them afterward. Do not forget to mark the current gaps in the project with the TBD (to be determined) comment, so that you can quickly find and add them later.

Problem 2: Founders have almost no contact with the team or contact the team rarely via PM only.

It’s better not to simply wait if stakeholders take a long time to answer important questions about deadlines, priorities, and requirements.

Check everything you can with the project manager. Voice your decisions on strategy, documentation, and reports to the team and mentor. Collect important questions in a group and send them to stakeholders to get answers to all questions at once — this option is always better than asking one question at a time.

Problem 3: No requirements or incomplete requirements on the project.

Rely on design and mockups for the test documentation. Also, your experience and logic can help you to solve this particular problem — you can probably guess what results to expect with specific checks. If you know the competitors, then you can analyze them to better understand the future logic of your project.

Problem 4: The project is complex and there is a fear of not figuring the testing out.

Always start with a self-study — find available information, make important notes, and mark all the questions to return to them later. It is also important to consult with developers and learn the details of feature implementation and integrations. Have a call with your PM, PdM, and BA to discuss technical requirements in more detail.

The main thing to remember is that you are not alone! Your team and your mentor are here to help you. There are no problems that can’t be solved.

Checklist to start QA work on a product

It’s always important for a beginner QA to become confident on any type of project no matter when the QA is assigned to it. The bottom line is to read, listen and ask questions to get it done right.

To start working on the project, QAs can always follow these steps:

🔳 Listen to the project presentation made by PM/BA

🔳 get to know your team, 🔳 get to know your founder/stakeholders.

• 🔳 briefly describe your work (if needed)
• 🔳 agree upon the timing and content of QA Reports

🔳 Begin studying project information

• 🔳 test requirements and study mockups
• 🔳 decompose a system into logical chunks
• 🔳 build a model of interactions for these chunks (if needed)
• 🔳 participate in grooming with the team, and discuss the requirements with BA
• 🔳 create a list of all unclear issues and questions being missed
• 🔳 check similar projects and ideas
• 🔳 sketch out a list of future test cases and checks

🔳 Participate in organizational meetings with a team

🔳 write qa vision.

• 🔳 send QA vision to the team, stakeholders, and mentor for a review

🔳 Form a testing plan and strategy

• 🔳 discuss your ideas with the team, mentor, and customers
• 🔳 write a test plan (if needed)
• 🔳 send test plan to the team and stakeholders to review (if needed)

🔳 Prepare and configure the necessary tools for testing

• 🔳 check if the testing environment is ready

🔳 Design all the necessary test cases and checklists

• 🔳 group all checks into sets
• 🔳 create a coverage matrix (if needed)

🔳 Prepare templates to use later for reports

• 🔳 send reports to the team and stakeholders on time

Thanks for reading and we wish you a great project start as QA! Want more QA tips and tricks — learn how to test time zones without going crazy ! ‍

Meet the author

Olya Kolyada is a lead QA engineer and mentor at our yearly QA training courses — learn more about her in the interview below 👇

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THE VEEVA INDUSTRIES BLOG

What is quality planning the ultimate guide.

April 05, 2022

Mohamed Chittach

Mohamed Chittach is the Director of QualityOne Consumer Products Strategy and has 20 years of experience in the quality field. He is a certified QHSE lead auditor and regularly performs certification audits for the main ISO certification body in France in order to stay informed in the industry.

Visit our Quality Solution Page to learn more about QualityOne.

Quality is a non-negotiable in your business success. A product or service that delivers on quality is one that pleases your preferred customers, causing them to return for more and spread the word to others that your business is worth patronizing. No quality...no customers...no business.

That much is obvious. The standards of quality you need to meet and the process of ensuring you meet them are less so. That’s particularly true in today’s rapidly evolving business climate where regulations, the application of technology, product standards, and customer tastes are moving targets.

Change is not likely to slow down in the future, though, so the best way to cope is by basing your quality management program on a strong quality plan. Quality planning is one of the critical components of an effective Quality Management System , no matter your organization’s size or industry.

What is a Quality Management Plan?

Quality planning is the first of four components of Quality Management, which also encompasses quality assurance, quality control, and quality improvement.

Quality Planning Process Summary Quality planning is the process of making all the decisions necessary to ensure the quality of your product or service when it reaches your customers. A quality plan is a document or set of documents that, together, define a company’s quality goals, standards, practices, resources, specifications, and procedures. It connects the overall strategic plans of an organization with actionable steps for designing quality into its deliverables and confirming that customers receive the quality experience that is intended.

Quality planning occurs at the very beginning of the total quality management process, but it should not be thought of as a “one-and-done” activity. An effective quality plan should be regularly reviewed and enhanced over time to keep pace with industry and regulatory changes as well as to improve your organization’s competitive position.

Related Post: Quality Acronym Reference Guide

The Quality Planning Process

Every organization will need to approach quality planning from the unique perspective of its own goals and capabilities. Some plans may be more detailed than others, and some areas within a company’s plan will be more exhaustive than others. However, there are general steps that lead to an effective plan. Every company needs to:

• Define the experience you want to provide to customers. Think about your customer’s needs, requirements, and preferences. Analyze the potential risks to their satisfaction. What should go right? What could go wrong? Be detailed. Incorporate information about industry regulations in this step too.
• Consider how best to deliver this perfect experience. This is about design. What kind of product will fulfill your customers’ wants and needs? Or what do your employees need to do to deliver an “exceeds-expectations” service experience?
• Define procedures for confirming your quality goals are met. Inspections? Testing? Customer feedback?
• Designate resources. Who carries out quality procedures? Who is ultimately responsible for their success? How will you tie quality goals to compensation and rewards? Also, consider training and funding in the resource section.
• Provide a blueprint for continuous improvement. How often will the quality plan be reviewed? By whom? How can incremental changes be incorporated between scheduled reviews?
• Have the plan reviewed by stakeholders. Be sure to gain the input of the people involved in implementing the plan, both at the beginning and during periodic reviews, to ensure it is realistic, actionable, and comprehensive.

Many companies have both strategic-level quality plans and project-level quality plans for specific orders. The resulting documents may be quite different, but the process is basically the same.

Quality Plan Elements

The concept is to plan in advance, as much as possible, what you want and expect from your people and products, how everyone will work together to make that happen, and what will be done to correct any mistakes that do happen. The elements in your organization’s quality plan(s) will depend on your industry and your specific needs and goals. However, here are some examples of items you could include:

• An overview of the products, services, or project with detailed quality criteria
• Details and analysis of applicable regulations
• Organizational chart with internal and external team members, their tasks and responsibilities
• Training processes
• External supplier standards, if applicable
• Performance standards — specifications, use, aesthetics, life cycle, etc..
• Performance documentation
• Inspection/testing procedures and timing
• Acceptance criteria
• Customer feedback procedures
• Corrective actions
• Reporting guidelines for specific problems and overall quality performance analysis
• Document modification procedures

Related Post: 4 Must-Have Components for Effective QMS Software

The Overall Benefits of Quality Planning

Think of quality planning as a way of managing the risk of unpleasant surprises. A good quality plan can:

• Help ensure conformance to internal and external standards and regulations
• Increase the level of customer satisfaction
• Minimize problems and complaints
• Make it easier to trace the source of any quality issues
• Provide objective data for evaluation and improvement of quality processes
• Make it easier to detect when improvements are needed, and how and where

Make Your Planning Count—Use the Right Technology to Implement Efficiently

Once you’ve developed a quality plan, you need to execute it effectively. If you’re ready to ensure compliance and agility in your quality management program, a unified cloud-based application like Veeva’s QualityOne can help you make that happen — faster and at less total cost..

QualityOne is intuitive and easy to use, unlike cumbersome on-premise legacy programs, so your staff will be able to easily and effectively use it to manage document control, training, quality processes, and HSE events.

• Reduce the cost of quality management
• Quickly and easily find and fix quality issues
• Access your files & dashboards from any device
• Visualize all product or quality data in one system
• Ensure your suppliers meet your quality standards
• Be audit-ready, anytime an auditor calls

Ready to revolutionize your quality management approach? Learn how QualityOne, Veeva's all-in-one quality management, training, and HSE solution, can help by visiting our product page.

Further Reading

March 18, 2024

By Ed Van Siclen

January 18, 2024

By Geert Van Kempen

By David Maher

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Creating a Culture of Quality

• Ashwin Srinivasan
• Bryan Kurey

Financial incentives don’t reduce errors. Employees must be passionate about eliminating mistakes.

In most industries, quality has never mattered more. New technologies have empowered customers to seek out and compare an endless array of products from around the globe. Shoppers can click to find objective data compiled by experts at organizations such as Consumer Reports and J.D. Power and go online to read user-generated reviews at sites such as Amazon; together, these sources provide an early warning system that alerts the public to quality problems. And when customers are unhappy with a product or service, they can use social media to broadcast their displeasure. In surveys, 26% of consumers say they have used social media to air grievances about a company and its products. And this issue isn’t limited to the consumer space—75% of B2B customers say they rely on word of mouth, including social media, when making purchase decisions.

• AS Ashwin Srinivasan is a managing director, and Bryan Kurey is a senior director, at CEB.
• BK Bryan Kurey is the Senior Vice President of Research at SBI Growth Advisory.

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Elevating Expectations: 5 Ways Product Quality Affects Your Brand

Table of Contents

Product quality can make or break your brand’s success and profitability — however, determining what makes a quality product depends on the end user. Each consumer has their own idea of what constitutes a valuable product; for some, a fancy and durable product demonstrates quality, while others may look for something unpretentious and easy to use. 

Although what one person views as luxurious may appear simple to others, what’s important is creating a product of quality that is right for your target market. Here’s how to determine what constitutes quality, why caliber is important and how to improve your products .

What constitutes product quality?

Product quality describes a product’s capability to meet user standards. Here are some questions to consider when evaluating a product’s caliber:

• Does it solve a problem? No product would exist if it weren’t solving or improving something. The extent to which it fixes the intended problem helps to determine its quality.
• Is it easy to use? A high-quality product shouldn’t be complicated to use. Customers shouldn’t have to spend too much time trying to figure out how to assemble or work it.
• Is it polished? Colors, dimensions, fonts (if applicable) and other elements of design should be in alignment. The product shouldn’t appear cheap in any way.
• Is it efficient? The product should not only get the job done, but it should do so efficiently. In other words, it should deliver quickly and require minimal effort from the consumer.
• Is it tailored to your customers? The product should be tailored specifically to users’ needs, showing that you understand your customers and are willing to accept the recommendations they voice.

If your product doesn’t check off the boxes above, it likely won’t be worthwhile to your customers. In that case, it’s worth revisiting your product idea before bringing it to market to ensure you are producing something valuable.

5 reasons product quality is important

Improving your product quality is paramount to preserving your business’s bottom line. Here are five reasons product quality is important:

1. It builds trust with your customers.

Most businesses won’t succeed if they can’t build customer trust ; potential sales are lost when brands fail to make deeper connections with prospective buyers. In contrast, when you gain the confidence and loyalty of consumers, you have more freedom to make decisions such as raising prices. Ensuring high-quality products and services is one way to help you get consumers to appreciate and believe in what you have to offer.

Humanizing the company also can help customers connect with your brand. One way to do this is to create newsletters or social media posts that show updates and photos of what employees are working on. If customers begin to associate faces with your company, it will help them connect with your organization more than they would with a faceless corporate entity. Another way to build loyalty and appreciation is to establish a rewards program. Understanding the value of customer loyalty is crucial when trying to establish repeat business.

2. It fuels recommendations.

Most people trust recommendations from friends and family above all other forms of advertising when making a purchase decision. This is why nothing beats word of mouth when you’re trying to gain customers.

Word-of-mouth recommendations can be a persuasive factor in both online and offline purchasing decisions. Friends and family want to know if someone similar to them had a good experience with a product. The higher-quality product a company has to offer, the better chance they’ll have at driving positive reviews, recommendations and shares between consumers.

Starting campaigns to get people buzzing about a product is a great way to spread recommendations by word of mouth. You can also respond to complaints or compliments online to show that you provide good customer service , which is another aspect of high product quality.

3. It results in fewer customer complaints and returns.

Marketing studies have proven again and again that companies that produce high-quality products obtain more repeat business. Spend more time and money upfront to perfect a product before it hits the market if you want to minimize customer complaints and returns.

It’s common for sellers of high-quality brands to spend more to persuade consumers to try their goods. The more successful companies are at pleasing customers during their initial experience with a product, the more likely they’ll be to see repeat purchases from those customers. 

Testing products with potential customers or a market research group can help to produce a great product. Most people in these groups will give brutally honest opinions, and companies can use that feedback to make improvements to their products.

4. People care about aesthetics.

One dimension of quality is the aesthetics — or how a product looks, feels, sounds, tastes and smells. For example, MrTakeOutBags pays close attention to these qualities, and it shows in the company’s bakery cupcake boxes. The colors, prints, shapes, textures and features (such as handles) make all the difference, and it’s what sets the brand apart from its competitors. Customers notice these details, and they can make or break a sale.

Customizable features also allow you to give customers exactly what they want while tacking on a few dollars to the price.

5. It produces a higher ROI.

Studies show a strong positive association between quality and profitability. In fact, high quality produces a higher return on investment (ROI) for any given market share. According to MIT Sloan Management Review, having fewer defects or field failures results in lower manufacturing and service costs. As long as these gains exceed any increase in expenditures by the firm on defect prevention, profitability will improve. In addition, improvements in performance, features or other dimensions of quality lead to increased sales and larger market shares.

If you have produced a quality product and marketed it effectively, it’s time to see if you can cut costs without sacrificing quality.

How to ensure product quality

Here are five tips to ensure high product quality:

1. Implement a quality management system.

A quality management system is a set of business practices comprising the planning and execution of delivering a product. The system includes principles that help to prepare a product for its launch, such as customer focus, leadership, research and evidence-based decision-making .

2. Build a product strategy.

A product strategy details information about a product and the company’s vision for it. Its key points should include the target customers, market, competitors and business goals. This strategy serves as a roadmap for your product’s journey, from creation to launch.

3. Consider competitors.

Thinking about your competitors is an important part of developing your product. What are they doing that you aren’t (and vice versa)? How are their products performing? What works for them and why? Answering these questions will put you in a better position to compete with similar businesses in the market.

4. Listen to your customers.

Don’t be afraid to ask your customers how you can improve your products. Use any negative customer feedback to learn more about your consumers and help your products better meet their needs.

5. Always test your products.

It’s essential to test every product before launch so you can anticipate how buyers might react and see what changes you might need to make before you release it to the public.

Sean Peek contributed to this article. ​​

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• Quality Management

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What is Quality Management? A Complete Guide

• Written by Contributing Writer
• Updated on September 29, 2023

The importance of quality cannot be overstated when it comes to businesses, their success and their longevity. When there is quality, it translates to value for customers, streamlined processes, and continual growth.

We often hear the term “quality control” in the context of how a business produces goods or services to the satisfaction of its customers consistently. However, there’s a larger concept at play, which covers quality control and other quality-related strategies. It’s called quality management.

So, what is quality management?

If you’re a project manager or aspiring to be one, you’ll want to understand how quality management works. This article comprehensively examines what it is, how it works, the methods, and everything you need to know about quality management.

We’ll also discuss how you can better understand quality and other project management concepts through a Lean Six Sigma course .

Quality Management: Definition & Examples

In short, it involves management tasks and roles focused on defining and executing quality policies through strategies like quality planning, assurance, and control.

Let’s understand this through an example.

Consider running a bakery on your street. Sales are good, but you notice some areas for enhancement. The nearby shop has fresher flour, and your oven isn’t heating evenly. You decide to upgrade. You monitor the results and plan further refinements.

In essence, this illustrates quality management (QM). It’s the act of assessing and refining quality throughout an organization. It is the act of combining quality assurance (QA) with process enhancement.

QM sets objectives, identifies shortcomings, and makes necessary adjustments. In short, it’s the strategy to improve operations and bridge experience gaps.

Also Read: What Is Lean Management, and Why Is It Worth Mastering?

History of Quality Management in a Nutshell

Quality Management started with Walter Shewhart at Bell Laboratories in the early 20th century. He introduced statistical quality control (SQC), focusing on process improvement over the end product.

During World War II, the U.S. applied SQC for military production. However, post-war civilian manufacturers lagged in adopting these improvements. Then, engineers Deming and Juran traveled to war-torn Japan. Their approach emphasized ‘Total Quality,’ a holistic approach to improvement. Their efforts transformed Japan into a manufacturing titan.

By the 1980s, recognizing Japan’s success and shortcomings, the U.S. adopted Total Quality Management (TQM). 1987, the ISO 9000 standard was introduced, becoming a global quality benchmark.

As the 21st century rolled in, with globalization and technology at the forefront, approaches like Motorola’s Six Sigma emerged, emphasizing near-perfect outputs.

Today, quality management isn’t limited to manufacturing; it’s a universal pursuit, spanning sectors from healthcare to cutting-edge technologies like Blockchain.

What is Quality Management: Four Stages

The four Quality Management (QM) stages are often described as part of the Plan-Do-Check-Act (PDCA) cycle, also known as the Deming Cycle or Shewhart Cycle.

Here’s a brief overview:

This is the initial stage where you identify an opportunity and plan for change. This involves setting objectives, defining processes to meet the objectives, and determining the resources needed.

In this stage, you implement the plan on a small scale, ideally in a controlled environment. This is where the changes are tested, and data is collected for the next step.

Here, you assess your test results, comparing them against the expected outcomes to determine any differences. You’ll analyze the data collected during the “Do” phase to understand whether the change has led to improvements.

You take corrective action Based on the “Check” phase results. If the implemented change leads to the desired improvement, you can scale up the implementation. If not, you must revisit the “Plan” phase to identify new or refined solutions.

This cycle keeps repeating, always aiming to make things better. When one cycle finishes, it helps set up the next, ensuring we’re always checking and improving our methods for the best results.

Also Read: What Is Process Mapping & How to Create It?

Most Popular Quality Management Methods

Four essential quality management methods stand out. Each offers unique benefits and challenges; the best fit depends on a company’s structure, needs, and goals.

Standardized Systems

Set by the government, these standards, like ISO certifications, are mandatory for certain products (e.g., baby car seats). Some firms adopt these standards voluntarily to enhance their reputation or align with their vision.

Total Quality Management (TQM)

This aims to boost quality throughout a company. It assesses the firm’s overarching quality goals and then evaluates every process and factor affecting quality for improvement.

A detailed, data-centered approach, Six Sigma focuses on defining, measuring, analyzing, enhancing, and maintaining quality. Predominantly used by large manufacturers, it necessitates thorough training. For deeper insights, consider enrolling in a boot camp.

Continuous Quality Improvement (CQI)

As the name suggests, the enhancement never stops. Recognizing perfection is a journey, CQI prioritizes people over processes, using the Plan, Do, Check, Act framework to improve quality.

What are the Main Quality Management Principles?

Quality management revolves around several guiding principles. Adopted by the International Standard for Quality Management, these principles enable organizations to refine their processes for optimal results:

Prioritizing Customers

Every organization’s main goal should be to understand and surpass the needs and expectations of its customers. By recognizing and fulfilling both current and future customer needs, businesses ensure customer loyalty, leading to increased revenue. Effective and efficient processes enhance quality, satisfying more customers.

Importance of Leadership

The success of any organization is directly linked to its leadership. Effective leaders foster unity, setting clear goals that engage employees and stakeholders. A positive organizational culture helps employees achieve their potential and work towards company goals. Engaging employees in goal-setting often leads to heightened productivity and commitment.

Engaging Employees

Active employee involvement is crucial. All staff should be empowered to contribute value regardless of their employment status or role. Constant skill improvement and consistent performance should be promoted. Empowerment, decision-making involvement, and recognition motivate employees, ensuring they feel valued and responsible for their contributions.

Adopting a Process-Centric Mindset

Organizational performance hinges on efficient and effective processes. Recognizing that superior processes lead to consistency, efficiency, and ongoing improvement is vital. Organizations thrive when they can effectively manage inputs and the processes that yield outputs.

Commitment to Ongoing Improvement

An enduring focus on improvement can transform organizations, enhancing flexibility, performance, and adaptability. A proactive stance on creating and evolving processes is crucial to stay competitive.

Data-Driven Decision Making

Grounding decisions in analyzed and validated data offers a clearer understanding of the market dynamics. Such a factual approach ensures businesses can execute strategies that yield desired outcomes while providing a basis for past decisions. It aids in understanding the interconnected nature of actions and their consequences.

Building Strong Relationships

Effective relationship management, especially with suppliers and stakeholders, is paramount. Recognizing that various parties can influence an organization’s trajectory ensures better supply chain management. By cultivating and maintaining these relationships, businesses enhance their chances of long-term success and collaboration.

Also Read: What Is Lean Six Sigma? A Comprehensive Guide to Understanding the Methodology

What is a Quality Management System (QMS)?

Let us look at how the principles of quality management are implemented through the QMS or Quality Management System.

A Quality Management System (QMS) ensures that products are made to meet quality standards. It monitors products from start to finish, ensuring they align with industry and regulatory norms.

QMS can be manual or software-driven and comprises two main parts: quality assurance and quality control.

While quality assurance focuses on inspecting processes during production, quality control evaluates the end products using customer feedback and on-site inspections. Quality assurance maintains consistent quality during production, and quality control verifies the final product’s quality.

The Importance of Quality Management Systems in Business

Why do businesses need QMS? Here is a breakdown of what it means to the business processes:

Product Oversight

The QMS constantly monitors products, beginning with acquiring raw materials and continuing to ship finished goods. It’s vigilant about tracking the quantity of products made and promptly identifying faulty ones.

Vendor Product Evaluation

This aspect of the QMS ensures that products sourced from vendors align with predetermined quality benchmarks. Vendor products can be quickly identified and returned if they fall short of these standards.

Scheduled Evaluations

Regular assessments are scheduled for staff, products, and equipment, ensuring ongoing quality compliance.

Error Tracking and Rectification

One vital feature of a QMS is its ability to spot and record current errors within the system. Beyond identifying them, it establishes strategies to both rectify present issues and devise mechanisms to prevent similar problems in the future.

Supplier Performance Assessment

A QMS employs key performance indicators (KPIs) to evaluate suppliers’ efficiency and reliability critically.

Policy and Procedure Updates

An effective QMS stays updated with any changes to company policies and procedures.

Moreover, it provides detailed and actionable reports on all facets of the quality management process.

Things to Remember When Choosing a Quality Management System

When choosing a QMS, numerous options can be overwhelming. Here’s a condensed guide to making an informed decision.

Industry Experience

It’s essential to check if the QMS provider has experience in your sector. They should have worked with similar businesses and be conversant with your specific quality requirements. Moreover, they should offer reliable references and display deep industry knowledge in software, installation, and training.

Functionality Needs

Determine if the software aligns with your business requirements. Key functionalities to consider include:

• Meeting industry-specific quality compliance standards
• Integration capabilities with other systems
• Tracking non-conformities and offering a comprehensive audit trail
• Features like Correct and Preventative Action (CAPA) management to address root causes
• AQL and RQL sampling throughout processes
• Efficient document control to log all quality endeavors
• Display of KPIs for supplier performance evaluation
• Flexibility to gather data from various sources, including mobile devices or the web

Real-time visibility into quality events is crucial. A robust QMS provides insights across the enterprise, allowing proactive issue resolution. It should offer the ability to monitor vendors and employees for compliance and training needs.

Master Quality Management for Better Project Outcomes

Quality management is paramount in every industry. For project managers, it’s critical to ensure streamlined processes that lead to the desired level of quality and performance.

If you want formal training in quality management, enrolling in a professional Lean Six Sigma certification can be a great starting point.

You might also like to read:

Six Sigma Principles: A Comprehensive Guide to Implementing and Optimizing Your Processes

Six Sigma vs. Lean Six Sigma: Which Methodology Is Right for Your Business?

What is Lean Methodology?

Six Sigma in Healthcare: Concept, Benefits and Examples

The Top 24 Lean Six Sigma Interview Questions for 2023

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How to Develop a Simple Quality Control Plan for Your Product

by Insight Team | Nov 16, 2021 | Quality Assurance , Quality Control

Are you building a new consumer brand and putting your products out into the market? If your goods fail to meet consumer expectations, it can lead to poor reviews, reduced sales, and even business failure.

To avoid disastrous product quality issues, you need to have a quality plan — a document that, according to ASQ , outlines “quality standards, practices, resources, specifications, and the sequence of activities relevant to a particular product.”

But if you’re a small company without the resources to hire a full-time quality control and assurance team, how do you develop this plan? Here we will explain the essential elements required to create your quality plan.

Table of Contents

What Goes Into a Simple Quality Control Plan? (8 Elements)

If we follow ASQ’s guidelines for a quality plan, it should generally include:

• Objectives to be Obtained
• Steps, Operating Practices, and Procedures
• Allocation of Responsibilities
• Specific Documented Quality Standards
• Inspection, Testing, and Audit Programs
• Procedures for Modifying Your Plan
• A Method for Measuring Success/Failure
• Other Actions for Meeting Objectives

Let’s cover each of these bullet points and discuss how you might incorporate them.

#1 Objectives

If you don’t set clear objectives, how will you assess your performance effectively? Quality can mean different things to different businesses, so the process of defining what it means for your brand and target customers is essential.

Product design and specifications play a crucial role in defining objectives. So what materials go into your product, and what performance standards does it meet? If we assume that your product’s design is already finished (and it is designed well), you need to include its detailed specifications in your quality plan.

For example, if your product is a plastic cup, you might specify that it should measure 4 inches tall, 3 ½ inches across the opening, 2 ½ inches in diameter at the bottom, and the color of the cup should be cherry red. It might be made of a specific type of plastic and have a particular pattern printed on it.

Include anything relevant in your specifications, such as volume, size, shape, measurements, components, materials, colors, printing details, and more.

Think of it this way: the more detailed your specifications are, the more clear of a target the factory has. Only by defining your product specifications clearly will you be able to hold your manufacturer accountable to them. Without detailed specifications, you leave yourself open to modifications at the factory’s discretion, leading to quality fade .

#2 Steps, Practices, and Procedures

Operating your business as efficiently as possible is a worthwhile goal. So document the steps you will follow to ensure quality. For example, after placing an order with the factory, the next step might be to notify your third-party inspection company of the date the factory finishes production, so they know when to inspect.

What happens when an inspector checks your goods and discovers an issue? Your quality plan should answer this question. For example, you might agree in advance with the factory that they are responsible for the cost of reinspection after they rework the goods.

Think about all the quality-related steps you need to take and include these in your plan. Doing so will give you steps to follow so that things don’t get missed.

#3 Responsibilities

The way you divide responsibilities will depend on the size of your company — you might be a solopreneur, work with partners, have employees, or be an employee yourself. Whatever the case, you should determine who will manage the factory and third-party QC relationships day-to-day.

When issues come up, it will be clearer who is responsible for handling them. That way, you can avoid issues getting dropped due to miscommunication.

#4 Quality Standards

In section #1 (Objectives), we mentioned that you should include product specifications. Of course, you want your factory to meet these as closely as possible. But if you’re going to hold your manufacturer accountable to them, you need to have well-defined quality standards.

If you want to manage quality, it is vital to understand sampling standards for product inspections. And the most commonly used statistical tool is called Acceptance Quality Limit , or AQL.

When conducting AQL inspections, many consumer product brands consider the following to be acceptable:

• A 2.5% defect level for “major” defects
• A 4.0% defect level for “minor” defects
• A 0% defect level for “critical” defects

You need to determine what makes a defect major vs. minor vs. critical when it comes to your specific product. You also need to decide whether the 2.5/4.0/0 defect levels are appropriate for your situation . Once you’ve determined your defect classifications, AQLs, and inspection levels, you should include them in your quality plan.

#5 Inspection, Testing, and Audits

You should have three essential tools in your QA/QC toolbox to help you manage supplier quality. They are:

• Product Quality Inspections – This is where an inspector travels to the factory and verifies that products meet your quality standards. You can conduct an inspection before, during, or after a production run.
• Factory Audit – An auditor assesses your new or existing supplier’s systems and production facility. Their report helps you determine how well the manufacturer meets your needs, and you can evaluate their quality systems, social responsibility, environmental friendliness, and anything relevant.
• Laboratory Testing – The factory sends your product to a laboratory for analysis. The resulting test report helps you determine its properties — such as whether it contains harmful substances. Testing can also assess how well the product meets performance standards.

You should decide how often you will use these three tools and include this information in your quality management plan. For example, you might audit your factory before the first purchase order and then once a year after that. You also might conduct an inspection after every other production run and lab test your product once a year.

#6 Making Modifications

As your situation changes, you may need to update your quality plan. Perhaps you change a component or material in your product specifications. Or maybe your factory has been consistently hitting its quality targets, and you want to modify your acceptable defect levels or inspect less frequently. Make a note of all situations in which you will need to alter your quality plan.

#7 Measuring Success/Failure

Your inspection, audit, and lab test reports provide insight into success or failure. Reviewing these is one way to ensure that your shipments and suppliers meet your needs.

Aside from reviewing reports individually, you should track trends over time. Determine how you will use these reports and include this information in your quality plan.

You can include anything else you think is relevant to managing quality. For example, you might decide on steps you’ll take to maintain good relationships with your suppliers and quality service providers, such as scheduling check-ins with your contacts at a predetermined frequency.

Conclusion: Putting it All Together and Getting Results

Good quality management is essential to the health of your business, and a well-written quality plan can help you achieve your desired results. To develop your quality plan, consider each of these eight elements carefully.

By fleshing out the key points we’ve listed, you’ll have the information you need to develop a simple quality plan. It may not be perfect at first, but you should treat it as a living document and update it periodically as you learn more about what it takes to manage product quality.

We recommend the following guide if you plan to conduct AQL inspections and want to understand how they work.

the link to AQL Inspections 101 doesn’t work…

Hello Irvine,

The page is now live again at https://insight-quality.com/aql-inspections-101/ . Apologies for the temporary disappearance.

Thanks for sharing this information.

We’re glad you found it helpful, Aidan.

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How to describe your product and service in a business plan like a pro

It’s deceiving.

You’d think that this part of a business plan does exactly what it says on the tin–describe your product & service offering– right ?

And yes, you are partially right. 

But there’s a very specific way in which this description should be written to make sure that your business has the best chance of succeeding – in real life and under the eagle eye of a potential backer (if you’re preparing a business plan for external financing purposes).

Keep reading to find out the secret sauce to writing a winning product and service description:

WHAT is the Product and Service Description in a Business Plan?

This business plan section is also known as:

• Product and/or Service Overview

HOW Do You Write a Product and Service Description in a Business Plan?

So, what should a good product/service overview contain?

Here are some items to consider including into this section:

1.     Portfolio:

The range of products and/or services that a business offers to potential and current customers.

2.     Features and benefits (value proposition):

Explain what the product/service does and how it works.

3.     Problem and solution (value proposition cont.):

The problem(s) the product or service solves. Every business needs to solve a problem that its customers face. Explain what the problem is and how the product or service solves it.

4.     Innovation:

If the company is doing something new and different, explain why the world needs the innovation.

5.     Proprietary advantages:

Any proprietary features that contribute to a competitive advantage. This could include: intellectual property (e.g., copyright, trademark, patent filings, trade secret), exclusive agreements with suppliers or vendors, exclusive licenses (e.g., for a product, service or technology), company’s own research and development activities.

6.     Development stage:

Current stage of development of the product / service (e.g., idea, development, testing, prototype, already on the market).

7.     Product life-cycle:

Estimate the life span of the product or service.

Specify whether the product or service under consideration is a short-lived fad or has a long-term potential.

8.     Future:

Mention plans for changes and new additions to the current portfolio of products / services.

Describe any plans to move into new markets in the future (e.g., serving different types or sizes of customers, industries, geographic areas).

Make your best guess at when the business will be ready to address these markets and what it needs to do first to be ready.

9.     Limitations:

If applicable, explain any risks or limitations associated with the product (e.g., liability issues like guarantees or returns), along with any legal advice received regarding these issues.

10.  Visual aids:

Use photos, images, diagrams and other graphics to help the reader visualize and learn about the products / services.

If the business is tackling several distinct problems through different products / services, describe the solutions individually .

However, for a large line of products / services, there is no need to list each one, just identifying the general categories will suffice.

How LONG Is the Product and Service Chapter of a Business Plan?

This part of a business plan can be very short, just a couple of paragraphs, or it can spread over multiple pages, depending on how many products/services you offer and how much explanation they require.

If your products or services are particularly complex , technical , innovative , or proprietary , you will want to provide more information and spend considerable time describing them.

This is especially true if you are seeking funding for a new product or service, particularly one that is not immediately understandable to the business plan readers, and if potential funders are likely to be motivated by the specifics.

In any case, when describing a product or service, provide just enough information to paint a clear picture of what it is and does . A brief explanation of what you will be making, selling or doing is appropriate here.

Excessive detail makes this section cumbersome for a reader to wade through. Reserve detailed descriptions (e.g., production processes) for the Appendix.

In any case, it is a good idea to first summarize the value proposition of each product or service into a one short sentence, and only then continue with a more detailed description of the product or service.

If any images or graphics are available that would contribute to the understanding of the product or service, the writers of a business plan should use them.

Otherwise, include any product or service details , such as technical specifications, drawings, photos, patent documents and other support information, in the Appendix section of the business plan document.

TOP 4 TIPS for Writing a Product and Service Overview

Tip #1: features v. benefits.

Don’t just list the features of the product / service.

Instead, describe the specific benefits it will offer to customers – from their perspective.

Make it clear what your customers will gain through buying your product or service. Include information about the specific benefits of your product or service – from your customers’ perspective.

Features are not the same thing as benefits. And you need to understand both.

Confused? Let’s clarify:

What Is the Difference Between Features and Benefits?

Tip #2: problem v. solution.

If at all possible, present the information in the Problem >> Solution format.

Start by describing the key problem that your customers have, immediately followed by the solution with which you will address this need for your target market.

Tip #3: Competitive Advantage

You should also comment on your ability to meet consumers’ key problems or unmet needs in a way that brings your product or service advantages over the competition.

For example:

• If you have a common business, such as a restaurant:

Explain why your customers need your particular restaurant. Do you offer lower prices? More convenient hours? A better location? A different concept, such as a vegan ice-cream pop up store? A specialty that is not otherwise available in your area, such as a Peruvian ceviche or Hungarian goulash?

• If your company is doing something new and innovative :

What is it about the existing solutions that is subpar? Maybe you are improving on a mediocre product category, such as creating better medical uniforms for healthcare workers (e.g., more flattering cut, trendy designs, sustainable materials). Or perhaps your new blockchain solution has the potential to entirely eliminate the middle-men in an entire industry.

Although the subject of competitive advantage regarding the business as a whole will be fully explored in the Market and Competitor Analysis part of a business plan, it is advisable to touch on it here also – in the context of the company’s products and service.

Tip #4: Validating the Problem and Solution

Speaking of which, when you are doing market research and analysis for your business plan, remember to validate the problem and solution your product or service is addressing.

There is a plethora of minor issues out there that people are perfectly fine with just tolerating. To build a solid business, though, you need a problem that a sufficient number of people are motivated to solve. That is, that they recognize it as a problem that’s worth paying you to solve. Even if they didn’t realize it was solvable until they were presented with your solution.

So, how do you get evidence that prospects are willing to pay for your solution?

Validation of Problem

Describe what you’ve done so far to confirm that the problem you are focused on is a real problem for your customers.

• Existing Business:

For an established business, this is probably just a matter of recapping your success in the marketplace. Your customers have already voted with their wallets.

• New Business:

For a startup, it is important to survey and have conversations with as many potential customers as possible about where they are having problems, how they solve them today, and validate that they are interested enough in addressing those problems to pay for a good solution.

Validation of Solution

Describe how you have tested your ideas with existing or potential customers to confirm that there is a good market for the products or services you plan to offer. Summarize the positive customer feedback or market traction that you have achieved with your solution so far.

For an established business, the answers probably lie in your paying customer base – their existence itself, combined with their repeat business, word-of-mouth referrals, follow-up customer surveys, and other indicators of customer satisfaction.

For a new business, you can start validating your solution immediately by trying it out with potential customers, even informally or at no charge, to get their opinion. If your product or service does not exist yet, talk to prospects about what you plan to offer and measure their feedback.

In summary, this section should answer the million dollar question:

What makes you think that people will buy, be satisfied with, and recommend your products or services?

Related Questions

What are products and services.

Products and services are items that businesses offer for sale to a market. While services are intangible, meaning that they do not exist in a physical form, products are of tangible nature, in other words – you can touch them.

What is a Product Line?

Product line is a group of related products that are all produced or sold by one entity and typically marketed under one brand name.

What is a Service Line?

Service line is a group of related services that are all produced or sold by one entity and typically marketed under one brand name.

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What Is Quality Planning & Why Is It Important?

Projects are successful when they end on time and within budget. But if you don’t meet the quality expectations of your stakeholders, it doesn’t matter how fast you delivered—you failed.

To avoid this, focus on quality planning. Create a quality plan before you start your project to consistently meet the expectations of your stakeholders.

What Is Quality Planning?

Quality planning is the method of deciding what’s most important to the project. This occurs during the planning stage, where you determine the critical factors for a successful project. This includes the resources needed to deliver the project, what steps to take and specifications that have to be met.

The quality plan itself includes:

• Roles and responsibilities
• Applied standards
• Metrics to measure quality

Project management software can save these documents and set milestones in your project plan to make sure you meet benchmarks. ProjectManager’s online Gantt chart can organize your quality planning and measure your progress in real time. Try ProjectManager free today!

Why Is Quality Planning Important?

Quality planning is important because neglecting quality makes it harder to deliver a successful project. Before the execution of the project, the project manager sets the standards to meet in order to qualify the project as a success.

Not only does the project manager define the standards for success, but also the steps necessary to meet those standards. That’s why quality planning is part of the overall project planning phase; it also impacts other areas of the plan, such as costs, scheduling, etc. Without taking this extra step when planning a project, you increase the risk that your stakeholder will not be satisfied with the final deliverable.

A project manager also needs to determine the scope of what will be measured, and the metrics to measure. That quality assurance includes audits, testing, peer review and other measures. All of this requires interviewing stakeholders to understand what their expectations are.

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Quality Control Template

Use this free Quality Control Template for Excel to manage your projects better.

Who Benefits from Quality Planning?

The short answer is that everyone benefits from quality planning. If you don’t understand and meet stakeholder expectations, they’re not going to be happy—and unhappy stakeholders mean the project has failed. That’s a lot of time, money and effort wasted.

Certainly, stakeholders benefit from quality planning. They’re the ones who are invested in the success of the project. But the project manager and project team also benefit from quality planning, because there’s less reworking, higher productivity and more efficiency when following a quality plan.

Last but not least, the customer or end-user benefits from quality planning. You design your product for the end-user or customer. If they’re not satisfied, you’re not only going to have a failed project on your hands but a tarnished brand.

How to Make a Quality Management Plan

You use a project quality management plan to document all the necessary information to manage the quality of a project . This includes the policies, procedures, criteria, roles and responsibilities. You create it during the planning phase for the project team and stakeholders.

• Determine what is meant by “quality” within the project: This involves discussions with the team to come up with a shared understanding of the acceptable level of quality. Detail this as specifically as possible to avoid confusion during the project. In effect, you create a quality baseline.
• Conduct a gap analysis: Here, you identify the gap between where you are and where you need to be. This leads to the creation of a quality team, which is comprised of people across all departments and levels.
• Define the roles and responsibilities for quality management: These people are accountable for each step in the quality management plan.
• Establish Quality Control Procedures: Once you’ve defined what your quality standards are, you’ll need to establish procedures to measure whether those standards are being met or not, which is known as quality control .
• Create acceptance criteria: This is tied to how you’ll do testing and review. Once you identify weaknesses, brainstorm with your team and integrate the needed quality improvements to your product or service.

Things to Avoid When Quality Planning

Quality planning is an ongoing process. Reviewing and revising the quality plan throughout the project is essential to ensure it remains effective. Sometimes people create a plan and feel as if it’s chiseled in stone, but it’s better to think of it as a dry-erase board.

You might want to make major changes throughout the project. Maybe these changes are necessary, but such big steps are best done in smaller increments. Take small steps that lead to a larger change, as it’ll help see if you’re going in the right direction. If they’re not, it’s easier to fix a small change than a larger one.

Most of all, stay objective. It’s easy to scapegoat an individual and lay the entirety of the blame at their feet. Before you do, step back and look at the whole picture. Having a clear head and putting things in context will let you avoid stigmatizing your team and leads to better overall quality.

Once you have a quality management plan, you’re ready to manage the quality of your project. This free quality control template for Excel will help you inspect your products or deliverables and log any quality issues that are found along with other quality control information such as the date when the issue was found, who found the issue, who will be assigned to fix it and the date when the issue is expected to be fixed.

How ProjectManager Can Help With Quality Planning

Quality planning is only the start. You need to execute that planning effectively and monitor the project to catch issues and address them. ProjectManager is cloud-based software that delivers real-time data to help you meet your quality baseline.

Create Quality Plans on Gantt Charts

Before you can monitor your project, you have to have a plan to execute it. ProjectManager’s online Gantt chart helps you schedule the entire project, including quality planning. You can set up quality targets, assign them to your team, which can work together better on our collaborative platform.

Monitor and Track Your Project’s Status

Monitor the project for quality control in real-time with dashboards. Unlike lightweight software that makes the user configure the dashboard, ours are installed and ready to go from the start. You get a high-level view of progress and performance to manage any issues and resolve them before they impact the project.

Create Instant Status Reports for Stakeholders

Stakeholders want to stay informed. ProjectManager’s one-click reporting features let you filter data for a deeper, more targeted look at progress and performance. Generate reports on project and portfolio status, time, costs and more. Then, easily share the reports with stakeholders to keep them in the loop.

ProjectManager is award-winning software that organizes, plans and monitors quality planning. Our robust feature set helps you manage the project from initiation to close while helping teams collaborate no matter where they work. Manage your budget, timeline and resources to deliver on schedule, under budget and meeting quality expectations by trying ProjectManager for free today.

Deliver your projects on time and under budget

Start planning your projects.

How to Write a Business Plan: Step-by-Step Guide + Examples

Noah Parsons

24 min. read

Updated April 17, 2024

Writing a business plan doesn’t have to be complicated. 

In this step-by-step guide, you’ll learn how to write a business plan that’s detailed enough to impress bankers and potential investors, while giving you the tools to start, run, and grow a successful business.

• The basics of business planning

If you’re reading this guide, then you already know why you need a business plan . 

You understand that planning helps you: 

• Raise money
• Grow strategically
• Keep your business on the right track 

As you start to write your plan, it’s useful to zoom out and remember what a business plan is .

At its core, a business plan is an overview of the products and services you sell, and the customers that you sell to. It explains your business strategy: how you’re going to build and grow your business, what your marketing strategy is, and who your competitors are.

Most business plans also include financial forecasts for the future. These set sales goals, budget for expenses, and predict profits and cash flow. 

A good business plan is much more than just a document that you write once and forget about. It’s also a guide that helps you outline and achieve your goals. 

After completing your plan, you can use it as a management tool to track your progress toward your goals. Updating and adjusting your forecasts and budgets as you go is one of the most important steps you can take to run a healthier, smarter business. 

We’ll dive into how to use your plan later in this article.

There are many different types of plans , but we’ll go over the most common type here, which includes everything you need for an investor-ready plan. However, if you’re just starting out and are looking for something simpler—I recommend starting with a one-page business plan . It’s faster and easier to create. 

It’s also the perfect place to start if you’re just figuring out your idea, or need a simple strategic plan to use inside your business.

Dig deeper : How to write a one-page business plan

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• What to include in your business plan

Executive summary

The executive summary is an overview of your business and your plans. It comes first in your plan and is ideally just one to two pages. Most people write it last because it’s a summary of the complete business plan.

Ideally, the executive summary can act as a stand-alone document that covers the highlights of your detailed plan. 

In fact, it’s common for investors to ask only for the executive summary when evaluating your business. If they like what they see in the executive summary, they’ll often follow up with a request for a complete plan, a pitch presentation , or more in-depth financial forecasts .

Your executive summary should include:

• A summary of the problem you are solving
• A description of your product or service
• An overview of your target market
• A brief description of your team
• A summary of your financials
• Your funding requirements (if you are raising money)

Dig Deeper: How to write an effective executive summary

Products and services description

This is where you describe exactly what you’re selling, and how it solves a problem for your target market. The best way to organize this part of your plan is to start by describing the problem that exists for your customers. After that, you can describe how you plan to solve that problem with your product or service. 

This is usually called a problem and solution statement .

To truly showcase the value of your products and services, you need to craft a compelling narrative around your offerings. How will your product or service transform your customers’ lives or jobs? A strong narrative will draw in your readers.

This is also the part of the business plan to discuss any competitive advantages you may have, like specific intellectual property or patents that protect your product. If you have any initial sales, contracts, or other evidence that your product or service is likely to sell, include that information as well. It will show that your idea has traction , which can help convince readers that your plan has a high chance of success.

Market analysis

Your target market is a description of the type of people that you plan to sell to. You might even have multiple target markets, depending on your business. 

A market analysis is the part of your plan where you bring together all of the information you know about your target market. Basically, it’s a thorough description of who your customers are and why they need what you’re selling. You’ll also include information about the growth of your market and your industry .

Try to be as specific as possible when you describe your market. 

Include information such as age, income level, and location—these are what’s called “demographics.” If you can, also describe your market’s interests and habits as they relate to your business—these are “psychographics.” 

Related: Target market examples

Essentially, you want to include any knowledge you have about your customers that is relevant to how your product or service is right for them. With a solid target market, it will be easier to create a sales and marketing plan that will reach your customers. That’s because you know who they are, what they like to do, and the best ways to reach them.

Next, provide any additional information you have about your market. 

What is the size of your market ? Is the market growing or shrinking? Ideally, you’ll want to demonstrate that your market is growing over time, and also explain how your business is positioned to take advantage of any expected changes in your industry.

Dig Deeper: Learn how to write a market analysis

Competitive analysis

Part of defining your business opportunity is determining what your competitive advantage is. To do this effectively, you need to know as much about your competitors as your target customers. 

Every business has some form of competition. If you don’t think you have competitors, then explore what alternatives there are in the market for your product or service. 

For example: In the early years of cars, their main competition was horses. For social media, the early competition was reading books, watching TV, and talking on the phone.

A good competitive analysis fully lays out the competitive landscape and then explains how your business is different. Maybe your products are better made, or cheaper, or your customer service is superior. Maybe your competitive advantage is your location – a wide variety of factors can ultimately give you an advantage.

Dig Deeper: How to write a competitive analysis for your business plan

Marketing and sales plan

The marketing and sales plan covers how you will position your product or service in the market, the marketing channels and messaging you will use, and your sales tactics. 

The best place to start with a marketing plan is with a positioning statement . 

This explains how your business fits into the overall market, and how you will explain the advantages of your product or service to customers. You’ll use the information from your competitive analysis to help you with your positioning. 

For example: You might position your company as the premium, most expensive but the highest quality option in the market. Or your positioning might focus on being locally owned and that shoppers support the local economy by buying your products.

Once you understand your positioning, you’ll bring this together with the information about your target market to create your marketing strategy . 

This is how you plan to communicate your message to potential customers. Depending on who your customers are and how they purchase products like yours, you might use many different strategies, from social media advertising to creating a podcast. Your marketing plan is all about how your customers discover who you are and why they should consider your products and services. 

While your marketing plan is about reaching your customers—your sales plan will describe the actual sales process once a customer has decided that they’re interested in what you have to offer. 

If your business requires salespeople and a long sales process, describe that in this section. If your customers can “self-serve” and just make purchases quickly on your website, describe that process. 

A good sales plan picks up where your marketing plan leaves off. The marketing plan brings customers in the door and the sales plan is how you close the deal.

Together, these specific plans paint a picture of how you will connect with your target audience, and how you will turn them into paying customers.

Dig deeper: What to include in your sales and marketing plan

Business operations

The operations section describes the necessary requirements for your business to run smoothly. It’s where you talk about how your business works and what day-to-day operations look like. 

Depending on how your business is structured, your operations plan may include elements of the business like:

• Supply chain management
• Manufacturing processes
• Equipment and technology
• Distribution

Some businesses distribute their products and reach their customers through large retailers like Amazon.com, Walmart, Target, and grocery store chains. 

These businesses should review how this part of their business works. The plan should discuss the logistics and costs of getting products onto store shelves and any potential hurdles the business may have to overcome.

If your business is much simpler than this, that’s OK. This section of your business plan can be either extremely short or more detailed, depending on the type of business you are building.

For businesses selling services, such as physical therapy or online software, you can use this section to describe the technology you’ll leverage, what goes into your service, and who you will partner with to deliver your services.

Dig Deeper: Learn how to write the operations chapter of your plan

Key milestones and metrics

Although it’s not required to complete your business plan, mapping out key business milestones and the metrics can be incredibly useful for measuring your success.

Good milestones clearly lay out the parameters of the task and set expectations for their execution. You’ll want to include:

• A description of each task
• The proposed due date
• Who is responsible for each task

If you have a budget, you can include projected costs to hit each milestone. You don’t need extensive project planning in this section—just list key milestones you want to hit and when you plan to hit them. This is your overall business roadmap. 

Possible milestones might be:

• Website launch date
• Store or office opening date
• First significant sales
• Break even date
• Business licenses and approvals

You should also discuss the key numbers you will track to determine your success. Some common metrics worth tracking include:

• Conversion rates
• Customer acquisition costs
• Profit per customer
• Repeat purchases

It’s perfectly fine to start with just a few metrics and grow the number you are tracking over time. You also may find that some metrics simply aren’t relevant to your business and can narrow down what you’re tracking.

Dig Deeper: How to use milestones in your business plan

Organization and management team

Investors don’t just look for great ideas—they want to find great teams. Use this chapter to describe your current team and who you need to hire . You should also provide a quick overview of your location and history if you’re already up and running.

Briefly highlight the relevant experiences of each key team member in the company. It’s important to make the case for why yours is the right team to turn an idea into a reality. 

Do they have the right industry experience and background? Have members of the team had entrepreneurial successes before? 

If you still need to hire key team members, that’s OK. Just note those gaps in this section.

Your company overview should also include a summary of your company’s current business structure . The most common business structures include:

• Sole proprietor
• Partnership

Be sure to provide an overview of how the business is owned as well. Does each business partner own an equal portion of the business? How is ownership divided? 

Potential lenders and investors will want to know the structure of the business before they will consider a loan or investment.

Dig Deeper: How to write about your company structure and team

Financial plan

Last, but certainly not least, is your financial plan chapter. 

Entrepreneurs often find this section the most daunting. But, business financials for most startups are less complicated than you think, and a business degree is certainly not required to build a solid financial forecast. 

A typical financial forecast in a business plan includes the following:

• Sales forecast : An estimate of the sales expected over a given period. You’ll break down your forecast into the key revenue streams that you expect to have.
• Expense budget : Your planned spending such as personnel costs , marketing expenses, and taxes.
• Profit & Loss : Brings together your sales and expenses and helps you calculate planned profits.
• Cash Flow : Shows how cash moves into and out of your business. It can predict how much cash you’ll have on hand at any given point in the future.
• Balance Sheet : A list of the assets, liabilities, and equity in your company. In short, it provides an overview of the financial health of your business. 

A strong business plan will include a description of assumptions about the future, and potential risks that could impact the financial plan. Including those will be especially important if you’re writing a business plan to pursue a loan or other investment.

Dig Deeper: How to create financial forecasts and budgets

This is the place for additional data, charts, or other information that supports your plan.

Including an appendix can significantly enhance the credibility of your plan by showing readers that you’ve thoroughly considered the details of your business idea, and are backing your ideas up with solid data.

Just remember that the information in the appendix is meant to be supplementary. Your business plan should stand on its own, even if the reader skips this section.

Dig Deeper : What to include in your business plan appendix

Optional: Business plan cover page

Adding a business plan cover page can make your plan, and by extension your business, seem more professional in the eyes of potential investors, lenders, and partners. It serves as the introduction to your document and provides necessary contact information for stakeholders to reference.

Your cover page should be simple and include:

• Company logo
• Business name
• Value proposition (optional)
• Business plan title
• Completion and/or update date
• Address and contact information
• Confidentiality statement

Just remember, the cover page is optional. If you decide to include it, keep it very simple and only spend a short amount of time putting it together.

Dig Deeper: How to create a business plan cover page

How to use AI to help write your business plan

Generative AI tools such as ChatGPT can speed up the business plan writing process and help you think through concepts like market segmentation and competition. These tools are especially useful for taking ideas that you provide and converting them into polished text for your business plan.

The best way to use AI for your business plan is to leverage it as a collaborator , not a replacement for human creative thinking and ingenuity. 

AI can come up with lots of ideas and act as a brainstorming partner. It’s up to you to filter through those ideas and figure out which ones are realistic enough to resonate with your customers. 

There are pros and cons of using AI to help with your business plan . So, spend some time understanding how it can be most helpful before just outsourcing the job to AI.

Learn more: 10 AI prompts you need to write a business plan

• Writing tips and strategies

To help streamline the business plan writing process, here are a few tips and key questions to answer to make sure you get the most out of your plan and avoid common mistakes .  

Determine why you are writing a business plan

Knowing why you are writing a business plan will determine your approach to your planning project. 

For example: If you are writing a business plan for yourself, or just to use inside your own business , you can probably skip the section about your team and organizational structure. 

If you’re raising money, you’ll want to spend more time explaining why you’re looking to raise the funds and exactly how you will use them.

Regardless of how you intend to use your business plan , think about why you are writing and what you’re trying to get out of the process before you begin.

Keep things concise

Probably the most important tip is to keep your business plan short and simple. There are no prizes for long business plans . The longer your plan is, the less likely people are to read it. 

So focus on trimming things down to the essentials your readers need to know. Skip the extended, wordy descriptions and instead focus on creating a plan that is easy to read —using bullets and short sentences whenever possible.

Have someone review your business plan

Writing a business plan in a vacuum is never a good idea. Sometimes it’s helpful to zoom out and check if your plan makes sense to someone else. You also want to make sure that it’s easy to read and understand.

Don’t wait until your plan is “done” to get a second look. Start sharing your plan early, and find out from readers what questions your plan leaves unanswered. This early review cycle will help you spot shortcomings in your plan and address them quickly, rather than finding out about them right before you present your plan to a lender or investor.

If you need a more detailed review, you may want to explore hiring a professional plan writer to thoroughly examine it.

Use a free business plan template and business plan examples to get started

Knowing what information to include in a business plan is sometimes not quite enough. If you’re struggling to get started or need additional guidance, it may be worth using a business plan template. 

There are plenty of great options available (we’ve rounded up our 8 favorites to streamline your search).

But, if you’re looking for a free downloadable business plan template , you can get one right now; download the template used by more than 1 million businesses. 

Or, if you just want to see what a completed business plan looks like, check out our library of over 550 free business plan examples . 

We even have a growing list of industry business planning guides with tips for what to focus on depending on your business type.

Common pitfalls and how to avoid them

It’s easy to make mistakes when you’re writing your business plan. Some entrepreneurs get sucked into the writing and research process, and don’t focus enough on actually getting their business started. 

Here are a few common mistakes and how to avoid them:

Not talking to your customers : This is one of the most common mistakes. It’s easy to assume that your product or service is something that people want. Before you invest too much in your business and too much in the planning process, make sure you talk to your prospective customers and have a good understanding of their needs.

• Overly optimistic sales and profit forecasts: By nature, entrepreneurs are optimistic about the future. But it’s good to temper that optimism a little when you’re planning, and make sure your forecasts are grounded in reality. 
• Spending too much time planning: Yes, planning is crucial. But you also need to get out and talk to customers, build prototypes of your product and figure out if there’s a market for your idea. Make sure to balance planning with building.
• Not revising the plan: Planning is useful, but nothing ever goes exactly as planned. As you learn more about what’s working and what’s not—revise your plan, your budgets, and your revenue forecast. Doing so will provide a more realistic picture of where your business is going, and what your financial needs will be moving forward.
• Not using the plan to manage your business: A good business plan is a management tool. Don’t just write it and put it on the shelf to collect dust – use it to track your progress and help you reach your goals.
• Presenting your business plan

The planning process forces you to think through every aspect of your business and answer questions that you may not have thought of. That’s the real benefit of writing a business plan – the knowledge you gain about your business that you may not have been able to discover otherwise.

With all of this knowledge, you’re well prepared to convert your business plan into a pitch presentation to present your ideas. 

A pitch presentation is a summary of your plan, just hitting the highlights and key points. It’s the best way to present your business plan to investors and team members.

Dig Deeper: Learn what key slides should be included in your pitch deck

Use your business plan to manage your business

One of the biggest benefits of planning is that it gives you a tool to manage your business better. With a revenue forecast, expense budget, and projected cash flow, you know your targets and where you are headed.

And yet, nothing ever goes exactly as planned – it’s the nature of business.

That’s where using your plan as a management tool comes in. The key to leveraging it for your business is to review it periodically and compare your forecasts and projections to your actual results.

Start by setting up a regular time to review the plan – a monthly review is a good starting point. During this review, answer questions like:

• Did you meet your sales goals?
• Is spending following your budget?
• Has anything gone differently than what you expected?

Now that you see whether you’re meeting your goals or are off track, you can make adjustments and set new targets. 

Maybe you’re exceeding your sales goals and should set new, more aggressive goals. In that case, maybe you should also explore more spending or hiring more employees. 

Or maybe expenses are rising faster than you projected. If that’s the case, you would need to look at where you can cut costs.

A plan, and a method for comparing your plan to your actual results , is the tool you need to steer your business toward success.

Learn More: How to run a regular plan review

Free business plan templates and examples

Kickstart your business plan writing with one of our free business plan templates or recommended tools.

Free business plan template

Download a free SBA-approved business plan template built for small businesses and startups.

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One-page plan template

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How to write a business plan FAQ

What is a business plan?

A document that describes your business , the products and services you sell, and the customers that you sell to. It explains your business strategy, how you’re going to build and grow your business, what your marketing strategy is, and who your competitors are.

What are the benefits of a business plan?

A business plan helps you understand where you want to go with your business and what it will take to get there. It reduces your overall risk, helps you uncover your business’s potential, attracts investors, and identifies areas for growth.

Having a business plan ultimately makes you more confident as a business owner and more likely to succeed for a longer period of time.

What are the 7 steps of a business plan?

The seven steps to writing a business plan include:

• Write a brief executive summary
• Describe your products and services.
• Conduct market research and compile data into a cohesive market analysis.
• Describe your marketing and sales strategy.
• Outline your organizational structure and management team.
• Develop financial projections for sales, revenue, and cash flow.
• Add any additional documents to your appendix.

What are the 5 most common business plan mistakes?

There are plenty of mistakes that can be made when writing a business plan. However, these are the 5 most common that you should do your best to avoid:

• 1. Not taking the planning process seriously.
• Having unrealistic financial projections or incomplete financial information.
• Inconsistent information or simple mistakes.
• Failing to establish a sound business model.
• Not having a defined purpose for your business plan.

What questions should be answered in a business plan?

Writing a business plan is all about asking yourself questions about your business and being able to answer them through the planning process. You’ll likely be asking dozens and dozens of questions for each section of your plan.

However, these are the key questions you should ask and answer with your business plan:

• How will your business make money?
• Is there a need for your product or service?
• Who are your customers?
• How are you different from the competition?
• How will you reach your customers?
• How will you measure success?

How long should a business plan be?

The length of your business plan fully depends on what you intend to do with it. From the SBA and traditional lender point of view, a business plan needs to be whatever length necessary to fully explain your business. This means that you prove the viability of your business, show that you understand the market, and have a detailed strategy in place.

If you intend to use your business plan for internal management purposes, you don’t necessarily need a full 25-50 page business plan. Instead, you can start with a one-page plan to get all of the necessary information in place.

What are the different types of business plans?

While all business plans cover similar categories, the style and function fully depend on how you intend to use your plan. Here are a few common business plan types worth considering.

Traditional business plan: The tried-and-true traditional business plan is a formal document meant to be used when applying for funding or pitching to investors. This type of business plan follows the outline above and can be anywhere from 10-50 pages depending on the amount of detail included, the complexity of your business, and what you include in your appendix.

Business model canvas: The business model canvas is a one-page template designed to demystify the business planning process. It removes the need for a traditional, copy-heavy business plan, in favor of a single-page outline that can help you and outside parties better explore your business idea.

One-page business plan: This format is a simplified version of the traditional plan that focuses on the core aspects of your business. You’ll typically stick with bullet points and single sentences. It’s most useful for those exploring ideas, needing to validate their business model, or who need an internal plan to help them run and manage their business.

Lean Plan: The Lean Plan is less of a specific document type and more of a methodology. It takes the simplicity and styling of the one-page business plan and turns it into a process for you to continuously plan, test, review, refine, and take action based on performance. It’s faster, keeps your plan concise, and ensures that your plan is always up-to-date.

What’s the difference between a business plan and a strategic plan?

A business plan covers the “who” and “what” of your business. It explains what your business is doing right now and how it functions. The strategic plan explores long-term goals and explains “how” the business will get there. It encourages you to look more intently toward the future and how you will achieve your vision.

However, when approached correctly, your business plan can actually function as a strategic plan as well. If kept lean, you can define your business, outline strategic steps, and track ongoing operations all with a single plan.

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Noah is the COO at Palo Alto Software, makers of the online business plan app LivePlan. He started his career at Yahoo! and then helped start the user review site Epinions.com. From there he started a software distribution business in the UK before coming to Palo Alto Software to run the marketing and product teams.

Table of Contents

• Use AI to help write your plan
• Common planning mistakes
• Manage with your business plan
• Templates and examples

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What Is Quality Control (QC)?

• Understanding QC
• Difference With Quality Assurance

The Bottom Line

• Business Essentials

Quality Control: What It Is, How It Works, and QC Careers

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and behavioral finance. Adam received his master's in economics from The New School for Social Research and his Ph.D. from the University of Wisconsin-Madison in sociology. He is a CFA charterholder as well as holding FINRA Series 7, 55 & 63 licenses. He currently researches and teaches economic sociology and the social studies of finance at the Hebrew University in Jerusalem.

Quality control (QC) is a process through which a business seeks to ensure that product quality is maintained or improved. Quality control requires the company to create an environment where management and employees strive for perfection. This is done by training personnel, creating benchmarks for product quality, and testing products to check for statistically significant variations.

A significant aspect of quality control is the establishment of well-defined controls . These controls help standardize both production and reactions to quality issues. Limiting room for error by specifying which production activities are to be completed by which personnel reduces the chance that employees will be involved in tasks for which they do not have adequate training.

Key Takeaways

• Quality control (QC) is a process through which a business seeks to ensure that product quality is maintained or improved.
• Quality control involves testing units and determining if they are within the specifications for the final product.
• The quality control used in a business is highly dependent on the product or industry, and several techniques exist for measuring quality.
• The food industry uses quality control methods to ensure customers do not get sick from their products.
• Quality control creates safe measures that can be implemented to make sure deficient or damaged products do not end up with customers.

Ryan Oakley / Investopedia

Understanding Quality Control (QC)

Quality control involves testing units and determining if they are within the specifications for the final product. The purpose of the testing is to determine any need for corrective actions in the manufacturing process. Good quality control helps companies meet consumer demands for better products.

Why Is QC Needed?

Creating a product is costly, time-consuming, and can be unsafe without controls in place. Additionally, if a company sends defective products out for purchase, it could be held liable for injuries or issues that arise from using its products. Quality control inspectors ensure that defective or unsafe products are identified , and the causes are corrected.

How Is It Done?

Quality testing is generally completed in each step of a manufacturing or business process. Employees often begin by testing raw materials , pulling samples from the manufacturing line, and testing the finished product. Testing at the various stages of manufacturing helps identify where a production problem is occurring and the remedial steps it requires to prevent it in the future.

In a non-manufacturing business, quality testing can involve customer service evaluations, questionnaires, surveys, inspections, or audits. A business can use any process or method to verify that its end product or service meets the customer's needs and is safe and legal.

QC Is Different by Industry

The quality control used in a business is highly dependent on the product or industry. For example, in food and drug manufacturing, quality control includes ensuring the product does not make a consumer sick, so the company performs chemical and microbiological testing of samples from the production line.

In aircraft manufacturing, quality control and assurance is of the utmost importance. Manufacturers are required to document, track, inspect, and reinspect all items and phases of a build to build evidence that everything is completed to very strict standards.

In automobile manufacturing, quality control focuses on parts meeting specifications and tolerances. QC ensures engines, drive trains, and other mechanical parts operate smoothly, efficiently, safely, and as designed.

In electronics, quality testing might involve using meters that measure the flow of electricity and stress testing.

Quality Control vs. Quality Assurance

Quality control and quality assurance are terms often used to define the same thing, but there are distinct differences. Quality control focuses on quality requirements, such as ensuring a part meets specifications. Quality assurance refers to the sum of all actions and processes needed to demonstrate that quality requirements are fulfilled.

What this difference means for quality professionals is that as you move through a quality control career, you might transition from quality control to quality assurance. Quality control is part of quality assurance, which consists of programs and departments that assure upper-level management, customers, and government inspectors that products meet all quality requirements and safety standards .

Quality Control Methods

There are several methods quality control uses to communicate and track inspections and issues. For instance, a quality control chart is a graphic that depicts whether sampled products or processes are meeting their intended specifications—and, if not, the degree by which they vary from those specifications.

When one chart analyzes a specific product attribute, it is called a univariate chart. A chart that measures variances in several product attributes is called a multivariate chart. Tracking variances allows businesses to see how many defects per production unit they produce and what types of defects are occurring. Here are a few examples of some methods used.

X-Bar Chart

Randomly selected products are tested for the given attributes the chart is tracking. A common form of a quality control chart is the X-bar chart, where the y-axis on the graph tracks the degree to which the variance of the tested attribute is acceptable. The x-axis tracks the samples tested. Analyzing the variance pattern on this chart helps you determine if defects are occurring randomly or systematically.

Taguchi Method

The Taguchi Method of quality control is another approach that emphasizes the roles of research and development, product design, and product development in reducing the occurrence of defects and failures in products. The Taguchi Method considers design more important than the manufacturing process in quality control and tries to eliminate variances in production before they can occur.

100% Inspection Method

This 100% inspection method is a quality control process involving looking at and assessing all product parts. This type of quality control is done to rule out flaws in products. This method is often used to evaluate valuable metals. The 100% inspection method calls for data about the manufacturing process and software to analyze inventory.

The challenge of using this method is that looking at every single item used to build a product is expensive and could destabilize or render the product unusable. For example, if you use this method to examine organic strawberries, you risk damaging the berries, rendering them unsellable.

Quality control methods help standardize production and reactions to quality issues in various industries, from food production to automobile manufacturing.

Quality Control Careers

Quality control can be a rewarding career if you enjoy working with people, communicating, presenting results, and working to make products better and safer. To become a quality control inspector, you'll need (depending on the industry):

• A high school diploma for entry-level positions
• A bachelor's degree, depending on the industry
• Experience in an industry
• Licenses and certifications for some industries and businesses

Other qualities that are necessary for quality control professionals are:

• Attention to detail
• Mechanical and math skills
• Physical abilities and strength
• Technical skills
• Performance under pressure

Career Path

The route to a career in quality control and assurance varies by industry, so there may be differences. However, you'll generally need several years of experience in your industry. Typically, you begin by being hired as a quality assurance or control associate after meeting educational and work experience requirements.

Once you gain work experience as a quality specialist or associate, you may move into a senior specialist position and begin managing teams of quality control specialists. You may attend professional development courses sponsored by your employer or be required to gain certifications such as Six Sigma. You might also need to earn a professional designation such as Certified Quality Inspector.

Moving up the career path, you have more options. You may be able to choose from or be selected to be a:

• QA Systems Manager
• QA Operations Manager
• QA Compliance Manager

These positions can lead up to upper-level management or executive levels within quality control:

• Director of Quality
• Head of Compliance
• Vice President of Quality

Quality Control Salaries

The average pay for quality control professionals differs by industry, experience, and position. Pay increases as you gain more experience and move into management positions. As of May 2022, the Bureau of Labor Statistics reports average salaries as:

• Professional, scientific and technical services: $47,480
• Manufacturing: $44,900
• Wholesale trade: $40,560
• Administrative and support services: $34,190

What Does Quality Control Mean?

Quality control means how a company measures product quality and improves it if need be. Quality control can be done in many ways, from testing products, reviewing manufacturing processes, and creating benchmarks. This is all done to monitor significant variations in a product.

What Are the 4 Types of Quality Control?

There are several methods of quality control. These include an x-bar chart, Six Sigma, 100% inspection mode, and the Taguchi Method.

Why Is Quality Control Important?

Quality control ensures that defective goods do not go out to the public. Companies that have quality control methods in place often have employees who pay close attention to their work.

In food and drug manufacturing, quality control prevents products that make customers sick, and in manufacturing, quality control can ensure that accidents don't happen when people use a product.

What Are 3 Examples of Quality Control?

Three examples of quality control could be in the food industry; overseeing the ingredient specifications, reviewing supplier lists, and ensuring the facility where the food product is made is sanitary.

Having quality control in place within a business helps ensure product quality and the overall success of a business. The quality control environment influences employees' attitudes about the workplace and creates a sense of ownership of the products and company.

Quality control can be done in various ways, from training personnel to creating data-driven tools to test products and set standards. Quality control methods help create a safe work environment and products that are safe to use and meet customers' needs. Additionally, it is a rewarding career for someone who enjoys investigating issues and improving outcomes.

American Society for Quality. " Quality ASSURANCE & Quality control ."

Bureau of Labor Statistics. " How to Become a Quality Control Inspector ."

Proclinical. " Quality Assurance Career Path ."

U.S. Bureau of Labor Statistics. " Quality Control Inspectors | Pay ."

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Small Business Trends

How to create a business plan: examples & free template.

This is the ultimate guide to creating a comprehensive and effective plan to start a business . In today’s dynamic business landscape, having a well-crafted business plan is an important first step to securing funding, attracting partners, and navigating the challenges of entrepreneurship.

This guide has been designed to help you create a winning plan that stands out in the ever-evolving marketplace. U sing real-world examples and a free downloadable template, it will walk you through each step of the process.

Whether you’re a seasoned entrepreneur or launching your very first startup, the guide will give you the insights, tools, and confidence you need to create a solid foundation for your business.

Table of Contents

How to Write a Business Plan

Embarking on the journey of creating a successful business requires a solid foundation, and a well-crafted business plan is the cornerstone. Here is the process of writing a comprehensive business plan and the main parts of a winning business plan . From setting objectives to conducting market research, this guide will have everything you need.

Executive Summary

The Executive Summary serves as the gateway to your business plan, offering a snapshot of your venture’s core aspects. This section should captivate and inform, succinctly summarizing the essence of your plan.

It’s crucial to include a clear mission statement, a brief description of your primary products or services, an overview of your target market, and key financial projections or achievements.

Think of it as an elevator pitch in written form: it should be compelling enough to engage potential investors or stakeholders and provide them with a clear understanding of what your business is about, its goals, and why it’s a promising investment.

Example: EcoTech is a technology company specializing in eco-friendly and sustainable products designed to reduce energy consumption and minimize waste. Our mission is to create innovative solutions that contribute to a cleaner, greener environment.

Our target market includes environmentally conscious consumers and businesses seeking to reduce their carbon footprint. We project a 200% increase in revenue within the first three years of operation.

Overview and Business Objectives

In the Overview and Business Objectives section, outline your business’s core goals and the strategic approaches you plan to use to achieve them. This section should set forth clear, specific objectives that are attainable and time-bound, providing a roadmap for your business’s growth and success.

It’s important to detail how these objectives align with your company’s overall mission and vision. Discuss the milestones you aim to achieve and the timeframe you’ve set for these accomplishments.

This part of the plan demonstrates to investors and stakeholders your vision for growth and the practical steps you’ll take to get there.

Example: EcoTech’s primary objective is to become a market leader in sustainable technology products within the next five years. Our key objectives include:

• Introducing three new products within the first two years of operation.
• Achieving annual revenue growth of 30%.
• Expanding our customer base to over 10,000 clients by the end of the third year.

Company Description

The Company Description section is your opportunity to delve into the details of your business. Provide a comprehensive overview that includes your company’s history, its mission statement, and its vision for the future.

Highlight your unique selling proposition (USP) – what makes your business stand out in the market. Explain the problems your company solves and how it benefits your customers.

Include information about the company’s founders, their expertise, and why they are suited to lead the business to success. This section should paint a vivid picture of your business, its values, and its place in the industry.

Example: EcoTech is committed to developing cutting-edge sustainable technology products that benefit both the environment and our customers. Our unique combination of innovative solutions and eco-friendly design sets us apart from the competition. We envision a future where technology and sustainability go hand in hand, leading to a greener planet.

Define Your Target Market

Defining Your Target Market is critical for tailoring your business strategy effectively. This section should describe your ideal customer base in detail, including demographic information (such as age, gender, income level, and location) and psychographic data (like interests, values, and lifestyle).

Elucidate on the specific needs or pain points of your target audience and how your product or service addresses these. This information will help you know your target market and develop targeted marketing strategies.

Example: Our target market comprises environmentally conscious consumers and businesses looking for innovative solutions to reduce their carbon footprint. Our ideal customers are those who prioritize sustainability and are willing to invest in eco-friendly products.

Market Analysis

The Market Analysis section requires thorough research and a keen understanding of the industry. It involves examining the current trends within your industry, understanding the needs and preferences of your customers, and analyzing the strengths and weaknesses of your competitors.

This analysis will enable you to spot market opportunities and anticipate potential challenges. Include data and statistics to back up your claims, and use graphs or charts to illustrate market trends.

This section should demonstrate that you have a deep understanding of the market in which you operate and that your business is well-positioned to capitalize on its opportunities.

Example: The market for eco-friendly technology products has experienced significant growth in recent years, with an estimated annual growth rate of 10%. As consumers become increasingly aware of environmental issues, the demand for sustainable solutions continues to rise.

Our research indicates a gap in the market for high-quality, innovative eco-friendly technology products that cater to both individual and business clients.

SWOT Analysis

A SWOT analysis in your business plan offers a comprehensive examination of your company’s internal and external factors. By assessing Strengths, you showcase what your business does best and where your capabilities lie.

Weaknesses involve an honest introspection of areas where your business may be lacking or could improve. Opportunities can be external factors that your business could capitalize on, such as market gaps or emerging trends.

Threats include external challenges your business may face, like competition or market changes. This analysis is crucial for strategic planning, as it helps in recognizing and leveraging your strengths, addressing weaknesses, seizing opportunities, and preparing for potential threats.

Including a SWOT analysis demonstrates to stakeholders that you have a balanced and realistic understanding of your business in its operational context.

• Innovative and eco-friendly product offerings.
• Strong commitment to sustainability and environmental responsibility.
• Skilled and experienced team with expertise in technology and sustainability.

Weaknesses:

• Limited brand recognition compared to established competitors.
• Reliance on third-party manufacturers for product development.

Opportunities:

• Growing consumer interest in sustainable products.
• Partnerships with environmentally-focused organizations and influencers.
• Expansion into international markets.
• Intense competition from established technology companies.
• Regulatory changes could impact the sustainable technology market.

Competitive Analysis

In this section, you’ll analyze your competitors in-depth, examining their products, services, market positioning, and pricing strategies. Understanding your competition allows you to identify gaps in the market and tailor your offerings to outperform them.

By conducting a thorough competitive analysis, you can gain insights into your competitors’ strengths and weaknesses, enabling you to develop strategies to differentiate your business and gain a competitive advantage in the marketplace.

Example: Key competitors include:

GreenTech: A well-known brand offering eco-friendly technology products, but with a narrower focus on energy-saving devices.

EarthSolutions: A direct competitor specializing in sustainable technology, but with a limited product range and higher prices.

By offering a diverse product portfolio, competitive pricing, and continuous innovation, we believe we can capture a significant share of the growing sustainable technology market.

Organization and Management Team

Provide an overview of your company’s organizational structure, including key roles and responsibilities. Introduce your management team, highlighting their expertise and experience to demonstrate that your team is capable of executing the business plan successfully.

Showcasing your team’s background, skills, and accomplishments instills confidence in investors and other stakeholders, proving that your business has the leadership and talent necessary to achieve its objectives and manage growth effectively.

Example: EcoTech’s organizational structure comprises the following key roles: CEO, CTO, CFO, Sales Director, Marketing Director, and R&D Manager. Our management team has extensive experience in technology, sustainability, and business development, ensuring that we are well-equipped to execute our business plan successfully.

Products and Services Offered

Describe the products or services your business offers, focusing on their unique features and benefits. Explain how your offerings solve customer pain points and why they will choose your products or services over the competition.

This section should emphasize the value you provide to customers, demonstrating that your business has a deep understanding of customer needs and is well-positioned to deliver innovative solutions that address those needs and set your company apart from competitors.

Example: EcoTech offers a range of eco-friendly technology products, including energy-efficient lighting solutions, solar chargers, and smart home devices that optimize energy usage. Our products are designed to help customers reduce energy consumption, minimize waste, and contribute to a cleaner environment.

Marketing and Sales Strategy

In this section, articulate your comprehensive strategy for reaching your target market and driving sales. Detail the specific marketing channels you plan to use, such as social media, email marketing, SEO, or traditional advertising.

Describe the nature of your advertising campaigns and promotional activities, explaining how they will capture the attention of your target audience and convey the value of your products or services. Outline your sales strategy, including your sales process, team structure, and sales targets.

Discuss how these marketing and sales efforts will work together to attract and retain customers, generate leads, and ultimately contribute to achieving your business’s revenue goals.

This section is critical to convey to investors and stakeholders that you have a well-thought-out approach to market your business effectively and drive sales growth.

Example: Our marketing strategy includes digital advertising, content marketing, social media promotion, and influencer partnerships. We will also attend trade shows and conferences to showcase our products and connect with potential clients. Our sales strategy involves both direct sales and partnerships with retail stores, as well as online sales through our website and e-commerce platforms.

Logistics and Operations Plan

The Logistics and Operations Plan is a critical component that outlines the inner workings of your business. It encompasses the management of your supply chain, detailing how you acquire raw materials and manage vendor relationships.

Inventory control is another crucial aspect, where you explain strategies for inventory management to ensure efficiency and reduce wastage. The section should also describe your production processes, emphasizing scalability and adaptability to meet changing market demands.

Quality control measures are essential to maintain product standards and customer satisfaction. This plan assures investors and stakeholders of your operational competency and readiness to meet business demands.

Highlighting your commitment to operational efficiency and customer satisfaction underlines your business’s capability to maintain smooth, effective operations even as it scales.

Example: EcoTech partners with reliable third-party manufacturers to produce our eco-friendly technology products. Our operations involve maintaining strong relationships with suppliers, ensuring quality control, and managing inventory.

We also prioritize efficient distribution through various channels, including online platforms and retail partners, to deliver products to our customers in a timely manner.

Financial Projections Plan

In the Financial Projections Plan, lay out a clear and realistic financial future for your business. This should include detailed projections for revenue, costs, and profitability over the next three to five years.

Ground these projections in solid assumptions based on your market analysis, industry benchmarks, and realistic growth scenarios. Break down revenue streams and include an analysis of the cost of goods sold, operating expenses, and potential investments.

This section should also discuss your break-even analysis, cash flow projections, and any assumptions about external funding requirements.

By presenting a thorough and data-backed financial forecast, you instill confidence in potential investors and lenders, showcasing your business’s potential for profitability and financial stability.

This forward-looking financial plan is crucial for demonstrating that you have a firm grasp of the financial nuances of your business and are prepared to manage its financial health effectively.

Example: Over the next three years, we expect to see significant growth in revenue, driven by new product launches and market expansion. Our financial projections include:

• Year 1: $1.5 million in revenue, with a net profit of $200,000.
• Year 2: $3 million in revenue, with a net profit of $500,000.
• Year 3: $4.5 million in revenue, with a net profit of $1 million.

These projections are based on realistic market analysis, growth rates, and product pricing.

Income Statement

The income statement , also known as the profit and loss statement, provides a summary of your company’s revenues and expenses over a specified period. It helps you track your business’s financial performance and identify trends, ensuring you stay on track to achieve your financial goals.

Regularly reviewing and analyzing your income statement allows you to monitor the health of your business, evaluate the effectiveness of your strategies, and make data-driven decisions to optimize profitability and growth.

Example: The income statement for EcoTech’s first year of operation is as follows:

• Revenue: $1,500,000
• Cost of Goods Sold: $800,000
• Gross Profit: $700,000
• Operating Expenses: $450,000
• Net Income: $250,000

This statement highlights our company’s profitability and overall financial health during the first year of operation.

Cash Flow Statement

A cash flow statement is a crucial part of a financial business plan that shows the inflows and outflows of cash within your business. It helps you monitor your company’s liquidity, ensuring you have enough cash on hand to cover operating expenses, pay debts, and invest in growth opportunities.

By including a cash flow statement in your business plan, you demonstrate your ability to manage your company’s finances effectively.

Example:  The cash flow statement for EcoTech’s first year of operation is as follows:

Operating Activities:

• Depreciation: $10,000
• Changes in Working Capital: -$50,000
• Net Cash from Operating Activities: $210,000

Investing Activities:

•  Capital Expenditures: -$100,000
• Net Cash from Investing Activities: -$100,000

Financing Activities:

• Proceeds from Loans: $150,000
• Loan Repayments: -$50,000
• Net Cash from Financing Activities: $100,000
• Net Increase in Cash: $210,000

This statement demonstrates EcoTech’s ability to generate positive cash flow from operations, maintain sufficient liquidity, and invest in growth opportunities.

Tips on Writing a Business Plan

1. Be clear and concise: Keep your language simple and straightforward. Avoid jargon and overly technical terms. A clear and concise business plan is easier for investors and stakeholders to understand and demonstrates your ability to communicate effectively.

2. Conduct thorough research: Before writing your business plan, gather as much information as possible about your industry, competitors, and target market. Use reliable sources and industry reports to inform your analysis and make data-driven decisions.

3. Set realistic goals: Your business plan should outline achievable objectives that are specific, measurable, attainable, relevant, and time-bound (SMART). Setting realistic goals demonstrates your understanding of the market and increases the likelihood of success.

4. Focus on your unique selling proposition (USP): Clearly articulate what sets your business apart from the competition. Emphasize your USP throughout your business plan to showcase your company’s value and potential for success.

5. Be flexible and adaptable: A business plan is a living document that should evolve as your business grows and changes. Be prepared to update and revise your plan as you gather new information and learn from your experiences.

6. Use visuals to enhance understanding: Include charts, graphs, and other visuals to help convey complex data and ideas. Visuals can make your business plan more engaging and easier to digest, especially for those who prefer visual learning.

7. Seek feedback from trusted sources: Share your business plan with mentors, industry experts, or colleagues and ask for their feedback. Their insights can help you identify areas for improvement and strengthen your plan before presenting it to potential investors or partners.

FREE Business Plan Template

To help you get started on your business plan, we have created a template that includes all the essential components discussed in the “How to Write a Business Plan” section. This easy-to-use template will guide you through each step of the process, ensuring you don’t miss any critical details.

The template is divided into the following sections:

• Mission statement
• Business Overview
• Key products or services
• Target market
• Financial highlights
• Company goals
• Strategies to achieve goals
• Measurable, time-bound objectives
• Company History
• Mission and vision
• Unique selling proposition
• Demographics
• Psychographics
• Pain points
• Industry trends
• Customer needs
• Competitor strengths and weaknesses
• Opportunities
• Competitor products and services
• Market positioning
• Pricing strategies
• Organizational structure
• Key roles and responsibilities
• Management team backgrounds
• Product or service features
• Competitive advantages
• Marketing channels
• Advertising campaigns
• Promotional activities
• Sales strategies
• Supply chain management
• Inventory control
• Production processes
• Quality control measures
• Projected revenue
• Assumptions
• Cash inflows
• Cash outflows
• Net cash flow

What is a Business Plan?

A business plan is a strategic document that outlines an organization’s goals, objectives, and the steps required to achieve them. It serves as a roadmap as you start a business , guiding the company’s direction and growth while identifying potential obstacles and opportunities.

Typically, a business plan covers areas such as market analysis, financial projections, marketing strategies, and organizational structure. It not only helps in securing funding from investors and lenders but also provides clarity and focus to the management team.

A well-crafted business plan is a very important part of your business startup checklist because it fosters informed decision-making and long-term success.

Why You Should Write a Business Plan

Understanding the importance of a business plan in today’s competitive environment is crucial for entrepreneurs and business owners. Here are five compelling reasons to write a business plan:

• Attract Investors and Secure Funding : A well-written business plan demonstrates your venture’s potential and profitability, making it easier to attract investors and secure the necessary funding for growth and development. It provides a detailed overview of your business model, target market, financial projections, and growth strategies, instilling confidence in potential investors and lenders that your company is a worthy investment.
• Clarify Business Objectives and Strategies : Crafting a business plan forces you to think critically about your goals and the strategies you’ll employ to achieve them, providing a clear roadmap for success. This process helps you refine your vision and prioritize the most critical objectives, ensuring that your efforts are focused on achieving the desired results.
• Identify Potential Risks and Opportunities : Analyzing the market, competition, and industry trends within your business plan helps identify potential risks and uncover untapped opportunities for growth and expansion. This insight enables you to develop proactive strategies to mitigate risks and capitalize on opportunities, positioning your business for long-term success.
• Improve Decision-Making : A business plan serves as a reference point so you can make informed decisions that align with your company’s overall objectives and long-term vision. By consistently referring to your plan and adjusting it as needed, you can ensure that your business remains on track and adapts to changes in the market, industry, or internal operations.
• Foster Team Alignment and Communication : A shared business plan helps ensure that all team members are on the same page, promoting clear communication, collaboration, and a unified approach to achieving the company’s goals. By involving your team in the planning process and regularly reviewing the plan together, you can foster a sense of ownership, commitment, and accountability that drives success.

What are the Different Types of Business Plans?

In today’s fast-paced business world, having a well-structured roadmap is more important than ever. A traditional business plan provides a comprehensive overview of your company’s goals and strategies, helping you make informed decisions and achieve long-term success. There are various types of business plans, each designed to suit different needs and purposes. Let’s explore the main types:

• Startup Business Plan: Tailored for new ventures, a startup business plan outlines the company’s mission, objectives, target market, competition, marketing strategies, and financial projections. It helps entrepreneurs clarify their vision, secure funding from investors, and create a roadmap for their business’s future. Additionally, this plan identifies potential challenges and opportunities, which are crucial for making informed decisions and adapting to changing market conditions.
• Internal Business Plan: This type of plan is intended for internal use, focusing on strategies, milestones, deadlines, and resource allocation. It serves as a management tool for guiding the company’s growth, evaluating its progress, and ensuring that all departments are aligned with the overall vision. The internal business plan also helps identify areas of improvement, fosters collaboration among team members, and provides a reference point for measuring performance.
• Strategic Business Plan: A strategic business plan outlines long-term goals and the steps to achieve them, providing a clear roadmap for the company’s direction. It typically includes a SWOT analysis, market research, and competitive analysis. This plan allows businesses to align their resources with their objectives, anticipate changes in the market, and develop contingency plans. By focusing on the big picture, a strategic business plan fosters long-term success and stability.
• Feasibility Business Plan: This plan is designed to assess the viability of a business idea, examining factors such as market demand, competition, and financial projections. It is often used to decide whether or not to pursue a particular venture. By conducting a thorough feasibility analysis, entrepreneurs can avoid investing time and resources into an unviable business concept. This plan also helps refine the business idea, identify potential obstacles, and determine the necessary resources for success.
• Growth Business Plan: Also known as an expansion plan, a growth business plan focuses on strategies for scaling up an existing business. It includes market analysis, new product or service offerings, and financial projections to support expansion plans. This type of plan is essential for businesses looking to enter new markets, increase their customer base, or launch new products or services. By outlining clear growth strategies, the plan helps ensure that expansion efforts are well-coordinated and sustainable.
• Operational Business Plan: This type of plan outlines the company’s day-to-day operations, detailing the processes, procedures, and organizational structure. It is an essential tool for managing resources, streamlining workflows, and ensuring smooth operations. The operational business plan also helps identify inefficiencies, implement best practices, and establish a strong foundation for future growth. By providing a clear understanding of daily operations, this plan enables businesses to optimize their resources and enhance productivity.
• Lean Business Plan: A lean business plan is a simplified, agile version of a traditional plan, focusing on key elements such as value proposition, customer segments, revenue streams, and cost structure. It is perfect for startups looking for a flexible, adaptable planning approach. The lean business plan allows for rapid iteration and continuous improvement, enabling businesses to pivot and adapt to changing market conditions. This streamlined approach is particularly beneficial for businesses in fast-paced or uncertain industries.
• One-Page Business Plan: As the name suggests, a one-page business plan is a concise summary of your company’s key objectives, strategies, and milestones. It serves as a quick reference guide and is ideal for pitching to potential investors or partners. This plan helps keep teams focused on essential goals and priorities, fosters clear communication, and provides a snapshot of the company’s progress. While not as comprehensive as other plans, a one-page business plan is an effective tool for maintaining clarity and direction.
• Nonprofit Business Plan: Specifically designed for nonprofit organizations, this plan outlines the mission, goals, target audience, fundraising strategies, and budget allocation. It helps secure grants and donations while ensuring the organization stays on track with its objectives. The nonprofit business plan also helps attract volunteers, board members, and community support. By demonstrating the organization’s impact and plans for the future, this plan is essential for maintaining transparency, accountability, and long-term sustainability within the nonprofit sector.
• Franchise Business Plan: For entrepreneurs seeking to open a franchise, this type of plan focuses on the franchisor’s requirements, as well as the franchisee’s goals, strategies, and financial projections. It is crucial for securing a franchise agreement and ensuring the business’s success within the franchise system. This plan outlines the franchisee’s commitment to brand standards, marketing efforts, and operational procedures, while also addressing local market conditions and opportunities. By creating a solid franchise business plan, entrepreneurs can demonstrate their ability to effectively manage and grow their franchise, increasing the likelihood of a successful partnership with the franchisor.

Using Business Plan Software

Creating a comprehensive business plan can be intimidating, but business plan software can streamline the process and help you produce a professional document. These tools offer a number of benefits, including guided step-by-step instructions, financial projections, and industry-specific templates. Here are the top 5 business plan software options available to help you craft a great business plan.

1. LivePlan

LivePlan is a popular choice for its user-friendly interface and comprehensive features. It offers over 500 sample plans, financial forecasting tools, and the ability to track your progress against key performance indicators. With LivePlan, you can create visually appealing, professional business plans that will impress investors and stakeholders.

2. Upmetrics

Upmetrics provides a simple and intuitive platform for creating a well-structured business plan. It features customizable templates, financial forecasting tools, and collaboration capabilities, allowing you to work with team members and advisors. Upmetrics also offers a library of resources to guide you through the business planning process.

Bizplan is designed to simplify the business planning process with a drag-and-drop builder and modular sections. It offers financial forecasting tools, progress tracking, and a visually appealing interface. With Bizplan, you can create a business plan that is both easy to understand and visually engaging.

Enloop is a robust business plan software that automatically generates a tailored plan based on your inputs. It provides industry-specific templates, financial forecasting, and a unique performance score that updates as you make changes to your plan. Enloop also offers a free version, making it accessible for businesses on a budget.

5. Tarkenton GoSmallBiz

Developed by NFL Hall of Famer Fran Tarkenton, GoSmallBiz is tailored for small businesses and startups. It features a guided business plan builder, customizable templates, and financial projection tools. GoSmallBiz also offers additional resources, such as CRM tools and legal document templates, to support your business beyond the planning stage.

Business Plan FAQs

What is a good business plan.

A good business plan is a well-researched, clear, and concise document that outlines a company’s goals, strategies, target market, competitive advantages, and financial projections. It should be adaptable to change and provide a roadmap for achieving success.

What are the 3 main purposes of a business plan?

The three main purposes of a business plan are to guide the company’s strategy, attract investment, and evaluate performance against objectives. Here’s a closer look at each of these:

• It outlines the company’s purpose and core values to ensure that all activities align with its mission and vision.
• It provides an in-depth analysis of the market, including trends, customer needs, and competition, helping the company tailor its products and services to meet market demands.
• It defines the company’s marketing and sales strategies, guiding how the company will attract and retain customers.
• It describes the company’s organizational structure and management team, outlining roles and responsibilities to ensure effective operation and leadership.
• It sets measurable, time-bound objectives, allowing the company to plan its activities effectively and make strategic decisions to achieve these goals.
• It provides a comprehensive overview of the company and its business model, demonstrating its uniqueness and potential for success.
• It presents the company’s financial projections, showing its potential for profitability and return on investment.
• It demonstrates the company’s understanding of the market, including its target customers and competition, convincing investors that the company is capable of gaining a significant market share.
• It showcases the management team’s expertise and experience, instilling confidence in investors that the team is capable of executing the business plan successfully.
• It establishes clear, measurable objectives that serve as performance benchmarks.
• It provides a basis for regular performance reviews, allowing the company to monitor its progress and identify areas for improvement.
• It enables the company to assess the effectiveness of its strategies and make adjustments as needed to achieve its objectives.
• It helps the company identify potential risks and challenges, enabling it to develop contingency plans and manage risks effectively.
• It provides a mechanism for evaluating the company’s financial performance, including revenue, expenses, profitability, and cash flow.

Can I write a business plan by myself?

Yes, you can write a business plan by yourself, but it can be helpful to consult with mentors, colleagues, or industry experts to gather feedback and insights. There are also many creative business plan templates and business plan examples available online, including those above.

We also have examples for specific industries, including a using food truck business plan , salon business plan , farm business plan , daycare business plan , and restaurant business plan .

Is it possible to create a one-page business plan?

Yes, a one-page business plan is a condensed version that highlights the most essential elements, including the company’s mission, target market, unique selling proposition, and financial goals.

How long should a business plan be?

A typical business plan ranges from 20 to 50 pages, but the length may vary depending on the complexity and needs of the business.

What is a business plan outline?

A business plan outline is a structured framework that organizes the content of a business plan into sections, such as the executive summary, company description, market analysis, and financial projections.

What are the 5 most common business plan mistakes?

The five most common business plan mistakes include inadequate research, unrealistic financial projections, lack of focus on the unique selling proposition, poor organization and structure, and failure to update the plan as circumstances change.

What questions should be asked in a business plan?

A business plan should address questions such as: What problem does the business solve? Who is the specific target market ? What is the unique selling proposition? What are the company’s objectives? How will it achieve those objectives?

What’s the difference between a business plan and a strategic plan?

A business plan focuses on the overall vision, goals, and tactics of a company, while a strategic plan outlines the specific strategies, action steps, and performance measures necessary to achieve the company’s objectives.

How is business planning for a nonprofit different?

Nonprofit business planning focuses on the organization’s mission, social impact, and resource management, rather than profit generation. The financial section typically includes funding sources, expenses, and projected budgets for programs and operations.

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Comcast Launches NOW – a New Brand and Product Portfolio that Redefines Low-Cost Internet, Mobile and TV

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Key Takeaways

Philadelphia, PA

Today Comcast introduced NOW, a new brand of quality, low-cost Internet, mobile and streaming TV products that consumers can purchase month-to-month, whenever they want.

NOW Internet is a prepaid service that provides more reliability than fixed wireless options for a better price. NOW Mobile is a new prepaid service that includes unlimited 5G data combined with access to more than 23 million WiFi hotspots, unlike any other provider in the prepaid category.

WiFi hotspots accessible through NOW

Backed by the powerful Xfinity network and the most reliable 5G, NOW delivers a connection customers can rely on for Internet, mobile or streaming in their homes or on the go. NOW products are designed to be incredibly simple with all-in pricing, no contracts or credit checks. Customers can sign up, pause, or cancel online, anytime.

“Consumers have told us they want low-cost, easy-to-use connectivity and entertainment options that deliver the same reliability and consistency of our leading Xfinity services,” said Dave Watson, President and CEO of Connectivity and Platforms, Comcast.

With NOW, we’ve developed a new product construct from the ground up to be simple and easy for anybody who wants Internet, mobile or TV on their own terms without sacrificing quality. It rounds out our product offering to provide something for every consumer segment of the market and plays to our strengths in superior network capabilities, WiFi and streaming.

Unveiling the Full NOW Portfolio & Pricing

NOW Internet and Mobile join NOW TV and NOW WiFi Pass to create a comprehensive portfolio of quality, low-cost products that consumers can purchase month-to-month, whenever they want.

• NOW Internet customers will be able to choose between two prepaid options: 100 Mbps for $30/month, or 200 Mbps for $45/month. Each tier includes unlimited data and an Xfinity gateway.
• NOW Mobile will provide unlimited 5G data, talk and text for $25/line and will be the only prepaid wireless option that seamlessly connects customers to more than 23 million Xfinity hotspots.
• NOW TV  is a streaming offering for Xfinity Internet customers that includes live and on-demand programming from 40+ networks, more than two dozen integrated FAST channels, and Peacock Premium, all for $20/month.
• NOW WiFi Pass gives customers unlimited access to more than 23 million Xfinity WiFi hotspots for $20 for 30 days.

A New Option for Affordable Connectivity Program (ACP) Customers

The NOW portfolio is poised to be particularly impactful for Americans looking for cost-effective connectivity. The federal government recently announced that April is the last full month of the Affordable Connectivity Program (ACP) if it does not receive additional funding. NOW Internet and Mobile will provide customers enrolled in ACP with another option for affordable, reliable connectivity – supplementing Comcast’s longstanding low-income broadband adoption options Internet Essentials and Internet Essentials Plus , and Xfinity’s current suite of offerings .

Initial customer trials for NOW Internet and Mobile have already begun in Hartford – New Haven, Houston, and Miami, with a full-scale national launch across all Comcast service areas expected in the coming weeks. NOW TV and WiFi Pass are available today, everywhere Comcast provides service.

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