BUSINESS IMPROVEMENT PLAN: Templates & Best Easy Guide In 2023

business improvement plan

When it comes to composing a business improvement plan in a firm, it is primarily because of the need to encourage struggling employees to do better or to improve the way an organization works into better working strategies. A sample of how a business improvement plan works is by identifying a company’s operations, employee skills, or enabling technologies that can improve the overall performance of either a small home business or a physical one. The essence of this article is to help you create this plan and as a bonus, you will also get to use our well-composed business improvement plan example template for your company. 

To avoid wasting more time, let’s dig in!

What is a Business Improvement Plan?

A business improvement plan is those mapped out sample strategies that can reduce barriers and enhance a constant workflow and efficiency in a home or physical company. To understand this form of business plan better, it is best to know that it comes in two forms. An example of this plan is the business performance improvement plan while the other is the business process improvement plan. 

Read Also: BUSINESS CONTINGENCY PLAN: Easy How-to-Create Guide

A business performance improvement plan is a formal business document that sets out problems with an employee’s performance and the strategies that can be taken to correct them. When used in the right manner, they can serve as an effective tool for solving problems amongst team members. 

A business process improvement plan is also a document that identifies sample steps and strategies necessary to enhance the efficiency of processes and procedures in a home or physical company. In summary, it generally improves the way an organization works. 

How To Write a Business Improvement Plan

To write either of the above business improvement plans, some key considerations should not be ignored. These sample key points will serve as necessary guides that can help one to compose a business improvement plan for either a home or an onsite business. Let’s analyze these steps below. 

#1. Identify the Current State of the Company

This is a very important step that should not be ignored. Before you start creating a business improvement plan, you will need to identify the particular fault, employee, or process that needs to be tackled. This step will help you visualize how information and knowledge flow between your team and the organization. You can solve a problem only when a process has been broken down into little constituencies.

#2. Assess the Process

With proper identification of the problems your organization is experiencing, you will then need to carefully analyze each of them. Try to discover the cause of the problem and why it is happening. Is there a lack of support amongst the team members? Where do bottlenecks and delays occur? While trying to answer these questions you will also need to analyze other sublayers because each problem has a deep origin. So do your due diligence to sniff out the root of your company’s inefficiency. 

#3. Rebuild the Process

When you get to this section of creating your business improvement plan, you should be able to list actions that can improve the condition of the employees and the organization as a whole. This solution should be in response to what you discovered about your company. While deciding the new fate of your business, you should not do it in a vacuum. You will need to consult your team to also get their idea since they will be the ones to carry out the processes. They need to be aware that new development is about to be implemented. 

#4. Outline Roles and Resources

After consulting with your primary team on the new project, you will also need to inform other teams and departments of your decisions. This is because the new process may require additional resources outside of your team. If that is the case, then make out time to have a conversation with those department heads or managers when assigning roles and allocating resources for the new plan. 

#5. Execute the New Process

Just after assigning the roles and responsibilities to the designed bodies, it is now time to communicate and execute. In this section, you will need to enforce a little pressure to see that the newly mapped process is being carried out. You will also need to ensure that every team has their hands on deck and meet up with their roles. Failure to get everyone on the same page might lead to a snag in the execution phase. 

#6. Monitor and Adjust the Process 

Monitoring the performance of your business improvement plan is a critical step that should not be ignored. Carefully detect if the new process is more efficient and effective than the old one. You can either analyze the available data to get answers or talk to the primary team involved. Your team would give you a clear analysis of how the new process has affected the company, which can have a positive or negative impact. From this information, you will then decide if you need adjustments or not. 

Benefits of a Business Improvement Plan

Having a business improvement plan will enable employee mobility and the company’s growth. Therefore this plan can benefit both the employee and employer in general. Let us look at more benefits of a business improvement plan. 

#1. Enhances Accountability

Having a business improvement plan does not only improve the performance of a firm, it also shows the employees that the company has their best interest at heart. And instead of letting them go, the company decided to provide measures that can help them level up. This will encourage the employees to make necessary changes and engage more with the company. 

#2. Increased Resource Efficiency

Another benefit of having a business improvement plan is to identify parts of a process that requires some level of resources. After the initial research is been carried out, you will get more insights into the necessary changes and resources that your business needs to attain.

#3. Saves Time

When a company faces some level of setback, there is always a lot of guesswork to do to determine where the issue is from. Most of the time, constant trial and error tend to worsen the situation. But with a business improvement plan, you can easily make the necessary changes without jumping through multiple hoops and in essence saving time and energy. 

Business Improvement Plan Template

While composing your business improvement plan, you will also need to work with an example template. The essence of using an example template on your business improvement plan is to get a clear guide on how best to make your improvement strategies go as smoothly as possible. To make the utmost use of this template checklist, you will need to follow the guideline with due diligence. 

  • Make a business improvement plan
  • Listen to your employee
  • Find the root cause of the problem
  • Emphasize the importance of being positive
  • Provide guidance
  • Check-in-regularly

A Business Contingency Plan Can Also Do the Magic

Aside from having a business improvement plan for your company, you should also consider getting a business contingency plan. A contingency plan can guarantee your business continuity and save you from the risk and disaster of facing a breakdown. 

For an improvement plan to work, then you will need to secure the safety and future of your company. So while crafting an improvement plan, you should have a contingency plan set aside. Just to save you the stress of composing another plan, we have composed a professional pre-made business contingency plan you can implement in your business. 

At Businessyield, our mission is to help entrepreneurs like you with valid business plans that can enhance the growth of their companies. Avoid missing out on this offer and grab this opportunity now!


Whether it’s to solve a setback amongst the employees or work to improve the growth of a company, a business improvement plan is essential in an organization. Remember that while creating this plan, be sure to involve those who are directly affected by any changes. 


When is a business improvement plan not appropriate?

Regardless of the important factors of having a business improvement plan, there are also some scenarios where it might be insignificant in a firm. For example, when an employee’s performance is affected by an unreasonable task, when the problem the company is trying to solve has been in existence for a long time, or when dealing with an issue of fraud. 

How does an employee respond to a business improvement plan?

For an employee to set up their game and improve their performance to serve the company well he/she will need to be honest with themselves. They will also need to make their jobs a priority, ask for directions when needed and stay positive. By doing this, an employee will be able to cope with a new improvement. 

Is a business improvement plan bad?

It tends to be bad when used in the wrong context. Imagine having to use a performance improvement plan on an employee because you want it to serve as a superficial step before the termination of a contract. However, unpleasantly using this plan might attract consequences. Thus, it is better to use it to listen to an employee’s perspective and analyse how your company’s growth will be attained. 

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