Effective Business Planning: developing, writing - & implementing! Jane Dysart Dysart & Jones...

Effective Business Planning: developing, writing - & implementing!

Jane Dysart

Dysart & Jones Associates

CALL, May 2003

© Dysart & Jones Associates

Objective

Discuss business planning: why it’s critical for service development & securing

information centre’s future how to do it without burning yourself or the centre’s staff

out Provide you with a starting point for doing your

organization’s business plan draft template tips on gaining buy-in


Agenda Rationale, various approaches A process & template

Establish the context: Scan, Swot Mission Vision Market Offerings Capabilities

Communicating, writing & presenting Implementing ideas


Why this session?

What brought you here today?


Business Planning Myriad of models & formats for you to choose from Use a model & a template that matches your culture Canada Business Service Centres:

http://www.cbsc.org/ibp/doc/intro_bp.cfm


Canada Business Service Centres A business plan is simply a written document that

describes the future path of a business. A good business plan explains the business concept, summarizes the objectives of the business, identifies the resources (both in terms of money and people) that will be needed by the business, describes how those resources will be obtained, and tells the reader why the business will succeed.

http://www.cbsc.org/ibp/doc/intro_bp.cfm


Business Plan is BIG Basic premise, without being trite:

B - Business reflect that you are a client-focused business

I - investors’ interest initiate stakeholders interest

G - growth clarify how and why you plan to grow your business,

and what’s in it for your clients and stakeholders


Business Plan: Benefit The bottom line:

Business plans are critical for funding, support, & for clarifying what your organization’s

opportunity, for shareholders and clients,

really is.


Strategic Plan or…Business Plan? Chicken & Egg?

Not really – Strategies are critical for assessing growth potential &

determining organization’s direction

Determine your direction, set your strategies Win support for these & prove you can

implement them with a business plan


Strategic planning???????Is it really worth it?When you face 100 opportunities & demands for

your time every day, how else are you going to decide which 20 to do?


Business planning???????

Is it really worth it?

Forces you to think about: Your organization, your fit & alignment within it How well you know your market & specific clients Consider service & product options Recognize & investigate opportunities & risks


Business planning???????

Is it really worth it? Helps you identify specific needs & ways of securing

support for these Provides a communication venue for engaging

employees in planning, for informing stakeholders & clients of your plans

Gives an opportunity to benchmark your centre, & analyze your progress & performance


Best article you can read “How to Write a Great Business Plan,” Harvard

Business Review, July-August, 1997, pp. 98+ Entrepreneurial mindset:

Context Opportunity People Risk & Reward

“Business Plans: Roadmaps for Growth & Success,” Information Outlook, Dec 2000, pp.22+


Purpose of a Business Plan The acid test: what your investors or

stakeholders want to know: Should this business or organization exist? Is there a future for it? A market? Is this market

growing? Does it have viable strategies? Do the people involved

know what they are doing? Set the ContextClarify the Opportunity


Planning Process: the beginning

Initiate Planning

Stakeholders

External Environment

EstablishPlanning Context

Draft timeline& milestones

Strawman of Outcome(s)

InternalEnvironment

SWOT

Primary Clients


Planning Process: Phase 1…phase 2…

SWOTAnalysis

Mission

Values

Vision

Strategy

Strategy

Strategy

Strategy

Plans & Programs

Capabilities

Capabilities

Capabilities

CapabilitiesPlans &

Programs

Plans & Programs

Plans & Programs

Plans & Programs

Client Analysis

KeyOfferings


Planning Process: The middle

SWOTAnalysis

Mission

Values

Vision

Strategy

Strategy

Strategy

Strategy

Client Analysis

KeyOfferings

Document

Test

Communicate

Refine


Planning Process: Phase 3…& implementation

SWOTAnalysis

Mission

Values

Vision

Strategy

Strategy

Strategy

Strategy

Plans & Programs

Capabilities

Capabilities

Capabilities

CapabilitiesPlans &

Programs

Plans & Programs

Plans & Programs

Plans & Programs

Client Analysis

KeyOfferings

•MeasurePerformance

•FinancialPlanning

•UnitPlanning

•IndividualPlanning


Business planning model

Purpose: Why should the business exist? Direction: Where is it headed?

What’s its potential? What are it’s strategies?

Market: Who is its market? Who will ‘buy’ the products - either with cash or support; no market =

no business

Portfolio of Services & Products: What does it offer this market? Why would this market want these? What compels them to ‘buy’?

Capabilities: How will it deliver these? What technologies, resources & processes must you have?

WHY?ORGANIZATION’S PURPOSE

Why does it exist?

WHERE?ORGANIZATION’S VISION

Where is the organization headed?

WHAT?ITS OFFERINGS

What are its key products & services?

WHO?ITS MARKET

Who are its primary & secondary clients?

HOW?ITS CAPABILITIES

How will it create & deliver products & services?What technologies & resources does it need?

Business Planning Framework


The Plan: Sample #1 Summary Purpose & Strategies Client Groups Portfolio of Services Budget: Capital & Operating Personpower Appendices


The Plan: Sample #2 Summary The Business: Background Management Products & Services Market Production & Supply Financial Performance


The Plan: Sample #3 Background & Summary Strategic Imperatives Market Positioning Offerings Organization Marketing Finances


Establishing the Context Essentially, this is your preparation &

background research You must establish the context in which your

business is &will be operating:

What will impact, positively or negatively, your ability to operate & to move forward?


Establishing the Context Environmental Scan

External factors Internal review

Internal factors Provides insights for SWOT Strengths & Weaknesses = internal Opportunities & Threats = external

Strengths

Weaknesses

Opportunities

Threats


Context: Scans & Swots

Scan the horizon environment in which you operate trends

regulatory, industrial, suppliers, competitors list competitors & suppliers by name

size, market share, growth, track records, potential

what are THEIR directions? THEIR learnings?

© Dysart & Jones Associates Remote

Scanning for competitors

Indirect

Direct


Context: The SWOT SWOT - no matter how it hurts Assessing your strengths & weaknesses:

Your market assessment: How are you perceived as an information solution by your

market, both current & potential client groups? What’s your market size? Market share? Which client groups are using your services? How? Which client groups are not, or show declining use?

Strengths: what’s going to help you accelerate? Weaknesses: what’s going to hinder you?


Assessing S & W Your technology & operational capabilities:

Do you have gaps or vulnerabilities in your systems, technologies, processes, equipment, etc?

Your staffing & organizational capabilities: Are you positioned properly within the enterprise? Are your staff trained? Motivated? Do you have a

succession plan?


Pulling the SWOT together Looking at the Scan, what opportunities &

threats are emerging? Looking at the internal review, what strengths

& weaknesses should be highlighted?

WHY?ORGANIZATION’S PURPOSE

Why does it exist?

WHERE?ORGANIZATION’S VISION

Where is the organization headed?

WHAT?ITS OFFERINGS

What are its key products & services?

WHO?ITS MARKET

Who are its primary & secondary clients?

HOW?ITS CAPABILITIES

How will it create & deliver products & services?What technologies & resources does it need?

Business Planning Framework


Opportunity: Mandate -- Why Mission, mandate, role, purpose

what business are you in? what will be missing if this business does not exist? what gap are you filling? How does what you do benefit

your organization’s clients? use the approach that

fits your culture What is it that makes

you distinct?


Opportunity: Direction -- Where Vision Preferred future state; desired; compelling A journey

The Preferred Future


Opportunity: Direction -- Where Vision Create by standing in the future “In 2005 we will be ….” Our clients/market will be… Our offerings (products & services) will

be… I’ll be ….

The Preferred Future


Strategies are decisions Decision processes need clear decision

criteria: Decide how you will make the decision regarding

your key strategies: Consensus? Veto power?

Brainstorm the criteria that your strategies must meet to be selected:

Client-driven? Global or local scope? Measurable? What makes sense in your environment?


Opportunity: Direction Long-term strategies, Imperatives, Priorities

short-term, near-term, annual strategies, objectives, goals, targets

“To get there, we’ll be concentrating on:” 1 2 3

“This year, we will:” x,y,z


Of course strategy is hard -- it’s about making tough choices.

Michael Porter,

Fast Company, March 2001


Opportunity: Market -- Who In the actual plan, this section begins to catch

stakeholders’ attention

No organization can be all things to all people Segment your market to focus on those targets

most critical to your organization


Market Segmentation

Defining “like” groupsto be targeted


Market segmentation Determine your potential market

How big? Where? Who? What?

Describe distinct primary & secondary target markets what do you know about how these targets?

How do they work? How do/will they apply your products/services in

their work? If they don’t ‘apply’, they won’t continue to ‘buy’.


Opportunity: Offerings -- What Products & Services

list these clearly & succinctly show where these fit on the target market

segments’ radar screen why are these offerings compelling for these

client groups? Why will they purchase or support these offerings, over others?


Products & Services Alert service; Industry scan Desktop access: dbs, websites, search engines Internet training Intranet content & organization (taxonomies) Communities or Knowledge Exchanges Research Online bookstore or article bank


Opportunity: Capabilities -- How Determine the resources required to produce

& deliver offerings to targeted client groups & meet specific strategies

Should be the most time-consuming Opportunity to engage all concerned in

determining capabilities, & gaining buy-in to strategies


The more explicit your strategy

The easier it is to identify new opportunities & to sort among a “bewildering array of

technologies,” options and needs

Michael Porter,



What do you need to make this happen?

Organizational structure Technology Equipment, facilities Finances Marketing & communication Production & delivery processes


What do you need to make this happen? Organizational structure:

What roles or jobs will be critical? What skills & experiences do people need to successfully fulfill

those roles?

How should people within these roles be organized? What person power is needed? What will facilitate the best workflow & communication?

What training & opportunities are needed? Recruitment? Succession planning?


What do you need to make this happen? Technology:

What technology & systems do you need? Equipment, facilities

Where should people be located? Is any special type of ‘stuff’ needed?

Product/Service Development & Management how will offerings be developed? Enhanced? Quality

assured? Delivered?


More capabilities Finances

Operating & capital budgets, revenue, expenses, cash flow

Marketing & communication What marketing channels are in place to be

leveraged? How do you want to be positioned in your targets’

minds?


How do you prevent burn-out? Take it one step at a time A first try should be just that – a first try Concentrate on where the opportunities or

threats lie: Should you look at products & services more? At client groups? Organizational structure?


Gaining buy-in: rules of thumb Do it & document it

The process forces you to test your assumptions, reflect on your true business drivers & identify opportunities

Write an executive summary – last - & communicate it Details are important, & belong in the appendix

Involve key stakeholders throughout the process Engage all or as much of your whole team as possible in

the process


What’s lurking in their minds?“I just don’t think the dogs will eat the dog

food.”

Your back ground work come up front context setting primary market research where DO you fit in your clients’ range of

information solutions? what ARE your entry barriers? Why SHOULD they support you?

Carve your nicheSegment

TargetKnow


Writing & presenting the plan The executive summary is the most critical

piece Can only be completed when the entire plan is

written Short, precise, in their language & their

format


Plan your business Your strategies & plan will not please

everyoneWalk on water & someone will say that you’ve splashed them


Narrowing the path Focus on a few things & do them well Keep moving by removing


Visions fail to reach reality because people are held back by:

Dirty windshield Mechanical difficulties Insufficient fuel; no specific milestones Old – or worse – no map Overweight loads Being trained & licensed to drive a sedan, but ½ way thru

the trip, they’re expected to drive an 18 wheeler


That won’t be your excuse Your strategies will not please everyone

Walk on water & someone will say that you’ve splashed them

You will seize those opportunities that fit best with your strategy

Choose small & experiment; ask ‘what’s the worst thing that can happen?’, & if you can live with the answer – go for it


You will be distinct, not extinct

Of course strategy is hard -- it’s about making tough choices.

Michael Porter,



Back to HBR – same issue Different article: 10 Deadly Mistakes of

Wanna-Dots, cites Moss Kanter’s research on top barriers for orgn’s changing to e-business

Guess what? #1 – lack of technical skills needed #7 – employees not embracing change #8 – leaders don’t know how to make choices


No plan? No direction No decisions No path

Just dangerous underbrush that will entangle you, trip you up, slow you down & eventually

choke you


• Seize those opportunities that fit your mandate & vision• Determine how you are distinct• Set your direction• Ask ‘what’s the worst thing that can happen?’, &

if you can live with the answer – go for it


Thank you Let us know how you are doing!

Jane Dysart

Dysart & Jones Associates

416 484 6129

[email protected]

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