Renewals, New Beginnings, And Closing Out Chapters

Taking the drama out of annual planning

Insider

Contributing Writer

By the time this article is published in December, most of my annual planning for RCN Capital’s marketing department will be complete. After years of trying to figure out the best way to tackle department budgeting and annual planning, it still isn’t something that necessarily comes easily. However, there are ways to handle the process that can reduce some of the associated stress. So, when it comes to planning for the upcoming year, how can you ensure that you are making the right decisions so that your future self will end up thanking you?

The Answer is All in the Data

One of the first courses of action you should take when planning out the year to come is to review all of the initiatives that you have completed over the past year. Starting the process by analyzing what worked and what didn’t work in the last year allows you to prioritize what initiatives should be renewed and what can be axed. This can give you a much better idea of where your budget will sit in the new year and how much needs to be allocated on renewals vs. what you can spend on new items.

Take time to analyze the KPIs you set for each initiative and your return on investment. If you are considering renewing certain initiatives, you’ll want to also determine if you want to renew at the same level, a lesser level, or a greater level based on performance over the past year. Finally, if you have items that were set up on a recurring contract basis, make sure you are carefully reviewing the stipulations of your contracts to determine if all deliverables were provided within the specified time frame and if there are specific time frames that you need to adhere to for renewals or opt-outs. If there are time-sensitive contracts that need to be addressed first, you know that is where to focus on first.

Spending this time upfront will ultimately make your renewal conversations with outside partners as smooth as possible because you will know what needs to be tackled first, what to ask for, and what price points make sense based on past performance. Once you have all of this information determined and laid out, it’s time to schedule your renewal calls.

It’s Not Me, It’s You

Having renewal calls can be one of the most nerve-wracking parts of the annual planning process, especially if you’re planning on not renewing with certain vendors, which will be inevitable. To reduce some of the anxiety associated with these conversations, prepare your talking points, asks, or general feedback for each call.

Analyzing what worked and what didn’t work in the last year … can give you a much better idea … [of] how much needs to be allocated on renewals vs. what you can spend on new items.

For renewals, make sure you have a list of requested deliverables, the general budget you want to spend for the year, and the goals you are looking to accomplish from your requested efforts. Be prepared to go through a few rounds of discussions as vendors often have new initiatives they may be offering for the upcoming year and additional recommendations for items that could help you hit the goals you discuss with them which could both affect your final budget.

For the harder conversations when you plan to cut ties and not renew with a vendor, be prepared to provide your reasoning for why you won’t be renewing. End the existing contract gracefully but try to keep the door open for future opportunities. There is always a chance that the vendor will improve their initiatives in the future or offer new initiatives that better align with your goals so you may want to re-engage.

Discover New Opportunities

Once you have completed your rounds of renewals and opt-outs, it’s time to review your goals for the upcoming year and identify new channels and opportunities that may be beneficial to helping you achieve those goals. Whether its expanding market share, reaching new audiences, or increasing brand awareness, identify potential vendors or partners, and initiate calls to see where they could fit into next year’s plan. Approach these calls in a similar manner to how you worked through renewals by discussing the goals you are trying to achieve as well as a general idea of what you are looking to spend to see what solutions these prospective partners propose. If a proposal looks good, make sure you outline objectives and KPIs that you will be tracking to see if the initiative will be successful or not before proceeding with a contract. You want to be sure you can easily identify if a new initiative has been successful for future planning purposes.

Leave a bit of a buffer in your annual budget in case an initiative or event pops up during the year that you want to allocate money to.

At this point, between renewals and new initiatives, you should be at a comfortable point where most of your planning for the upcoming year is in a good spot. Anecdotally, it can be useful to leave a bit of a buffer in your annual budget in case an initiative or event pops up during the year that you want to allocate money to. It is always better to give yourself a bit of wiggle room rather than have no ability to commit to something later in the year. You never know what may come up that is an offer you feel like you can’t refuse.

Annual Planning Doesn’t Have to Be Painful

When it comes down to it, annual planning is a necessary part of any organization to prepare for initiatives in the coming year. While the idea of trying to pin things down three to six months before the start of the new year can seem daunting, there are steps you can take to make the entire process more methodical and less painful. It is also one of those things that if you can take care of it sooner rather than later, you can breathe a sigh of relief once it hits the new year, and most importantly, your future self will thank you for all of the careful coordination and meticulous planning.