Start change business planning workshop May 2012

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James Cashmore delivers the 'what, why and how' of business planning for social and environmental enterprises.

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  • Introductions:JCProfessor Roger Mumby-CroftMartin Clark
  • Check audience split between groups 1, 2 and 3
  • Future is not entirely predictable. We don’t have perfect knowledge or foresight.
  • Planning is not accounting – accounting goes backwards from today in increasing detail, planning does forward from today in increasing aggregation. Planning = future focussedAccounting = providing “an account” – a record - of what has happened. Accountants amongst you may be saying, what about forecasting? Forecasting is about the future but is also not the same as planning – will but will come back to that later.
  • Asda example: best value weekly shopping for ordinary working people and their familiesNike: To Bring Inspiration and innovation to every athlete in the worldThe mission of The Walt Disney Company is to be one of the world's leading producers and providers of entertainment and information. Using our portfolio of brands to differentiate our content, services and consumer products, we seek to develop the most creative, innovative and profitable entertainment experiences and related products in the world.Unilever We meet everyday needs for nutrition, hygiene and personal care with brands that help people feel good, look good and get more out of life.Not for profit: NFF's mission is to serve as a development finance institution for nonprofit organizations, working to fill their overall need for capital through financing and advisory services. NFF supports its nonprofit clients' multi-faceted contributions to communities, advances community and economic development goals, and works to fill the overall need for capitalization of organizations in this sector.The Rainforest Alliance works to conserve biodiversity and ensure sustainable livelihoods by transforming land-use practices, business practices and consumer behavior
  • Greek Military term strategos – means general. Overview role.Porter – competitive strategyWhere to competeHow to competeGeneric strategies: cost, differentiation, focus(niche)
  • Aligning cost to value
  • Waste could be people, time, money
  • Who plans? in an org (ask for views)Part of leadership – value in the process as much as in the outcome – come back to that topic before lunch.Way to generate ownership and understanding – planning cycle/process.
  • Don’t think of planning as creating one document
  • Who are they? - customers, employees, suppliers, investors, beneficiaries, regulators, etcConcept of externalisation of costs doesn’t really work for social/enny enterprise – so add communities and society, the environment.
  • Literature tends to use balance as key concept – but actually stakeholders can have similar interests
  • BP Deepwater HorizonTesco riots in BristolFairtradeSunday openingAre interests opposing or aligned?
  • Summary of section:Why plan – 6 reasons – Vision, Strategy, Anticipation, Effectiveness, Tracking, EnergyWho for
  • Divide group into syndicatesHand out case study briefs (x3), and syndicate exercise 1Get them to introduce themselves within their syndicates
  • There are occasions when you need “the complete plan” e.g presenting to potential investorsManagement team/people section missing“Operations” – could mean customer service in a services business Purpose of funds section – could be included in an investor presentation
  • 1-3 starter4-7 main course8-9 dessert
  • 1-3 starter4-7 main course8-9 dessert
  • Just examplesNot to include the tools in the business plan, but to help the thinking
  • The engine room of the enterpriseGive examples – factory, dairy, Service examples – customers often participate in the process – are an input and an output. Hairdresser, workspace, bank, retail
  • The engine room of the enterpriseInputs – access, quality, reliability, costTransformation process – supporting infrastructure (incl IT)Outputs – logistics, stock managementRetailer, dairy, web company - examplesQualities of the operations function - reliability, resilience, quality, cost-effectiveness, flexibility, responsiveness, innovation, continuous improvement
  • Management team – aim = give confidence that they can deliver the BPOrg structure- describe and explainOrg capability – an audit – do we have have the skills to do the job? What hires do you need to make? What future capabilities are you going to need?
  • Example of non-financial KPIs in social enterprise (call centre route back into employment)Number of jobs created% of hires that come from NEET background/socially disadvantaged% of hires remaining in full time employment with CB or elsewhere
  • Introduction to the idea of "good planning" and "bad planning" (process perspective versus pure content perspective).Case study – 2 plansSole effort, aiming for content perfectionTeam effort, aiming for motivation, understanding, alignmentWhich is more effective?
  • Story of speaking without notes – process of thinking that writing the notes down is what’s importantPlanning is a process of organisational engagement and decision making
  • …..otherwise it won’t work for your organisation
  • Adapting the content and style of the plan (and the planning process) to different organisational cultures. 
  • Answering these questions will give you some big clues on how to embark on your planning process
  • Setting strategy is often about debate and judgment – and building foresight. Hard to do without conversationOperational tactical plan – can potentially be devolved to create ownership – built bottom-up – most annual budgeting processes are like thatFinancial only – to bring financial coherence to what you are doing anyway – even if created by a finance function, needs to be shared, understood and owned
  • Is any plan ever really implemented?Judge on goals not pathProgress towards?
  • Wrap up for the dayFeedback forms
  • Start change business planning workshop May 2012

    1. 1. - Overall objective for the day – to provide you with inspiration, tools, benchmarks and “practice opportunities” to build effective business plans for your social and sustainable enterprises- Designed for: 1. leaders of existing social enterprises who have done some business planning but need to develop their skills and experiences further 1. individuals currently leading start-up social enterprises or values-led business, who want to develop a plan for the first time 1. individuals thinking about setting up a social enterprise or values-led business- Overall format – a combination of taught sessions, and practical group work, including a detailed case study.
    2. 2. 1. Why plan? – the benefits of business planning (1 hour)  Whole group taught session (20 minutes)  Group work - the role of planning in defining the purpose and overall goals of the enterprise2. What to plan – key elements of the business plan (1.5 hours, incl coffee break)  Whole group taught session (30 minutes)  Group work - focussing on 2-3 of the key elements per group3. How to plan - how to run a planning process and to make it work for your enterprise (30 mins)  Whole group taught sessionLunch (60 minutes)4. Case study (2 hours) ◦ Preparation (in syndicate streams) (60 mins) ◦ Presentation (45 mins) ◦ Wrap-up and summary of the day (15 mins)
    3. 3. 1. A social enterprise business hub, based in central Cambridge2. A community dairy, based either in the Cotswolds or in rural India3. An on-line volunteering exchange for the UK4. OR, a real business known to one of the group
    4. 4. 1. Why plan? – the benefits of business planning (1 hour) ◦ Whole group taught session (20 minutes) ◦ Group work - the role of planning in defining the purpose and overall goals of the enterprise2. What to plan – key elements of the business plan (1.5 hours, incl coffee break) ◦ Whole group taught session (30 minutes) ◦ Group work - focussing on 2-3 of the key elements per group3. How to plan - how to run a planning process and to make it work for your enterprise (30 mins) ◦ Whole group taught sessionLunch (60 minutes)4. Case study (2 hours) ◦ Preparation (in syndicate streams) (60 mins) ◦ Presentation (45 mins) ◦ Wrap-up and summary of the day (15 mins)
    5. 5.  Changes in: ◦ Broader external environment ◦ Immediate market/competitor environment ◦ Internal “environment” – within organisation, supply chain, customers, other immediate stakeholders
    6. 6. 1. Vision (long term direction)2. Strategy (choice of route)3. Anticipation (short term path)4. Effectiveness (making the right choices – e.g. resource allocation)5. Action planning and monitoring (staying on plan)6. Motivation (building team alignment and energy around common goals)
    7. 7.  Creating a goal and bringing clarity to it Understanding core purpose ◦ What we are about ◦ What we aren’t about Creating unity and understanding Acts as a reference point – a “true north”
    8. 8.  Making the right choices, all things considered Sets “orientation” with regard to key stakeholders: ◦ Customers ◦ Suppliers ◦ Competitors ◦ Investors
    9. 9.  When we get “just around the corner”, what are we going to be faced with? What’s just ahead of us? ◦ Decisions ◦ Milestones ◦ Disruptions and step-changes ◦ Opportunities ◦ And how are we going to respond (in broad terms)? – (contingency planning)”
    10. 10.  What is our resource? – is it infinite? If not, how can we deploy the resources we have most efficiently and effectively? What’s the likely investment (econ/soc/envt) and return (econ/soc/envt)?
    11. 11.  Co-ordination Minimising waste Monitoring and tracking Taking corrective action
    12. 12.  Common goals and purpose? Common strategies? Tactics understood? Then let’s begin....(together)
    13. 13. Vision StrategyAnticipationEffectiveness Tracking Energy
    14. 14.  There are different stakeholders to the plan… In a social/sustainable enterprise, key stakeholders often includes people and/or the planet
    15. 15.  Concerns differ Stakeholder balance But also stakeholder interconnectedness
    16. 16. 1. Shareholders vs environment2. Communities vs shareholders3. Customers vs suppliers4. Employees vs customers
    17. 17.  Plan needs to consider all stakeholders But plan view needs to “sliceable” for the perspectives of different groups
    18. 18. 1. A social enterprise business hub, based in Cambridge 2. A community dairy, based either in the Cotswolds or in rural India 3. An on-line volunteering exchange for the UK 4. OR, a real business known to one of the groupSame choice for the whole dayBut - it’s the overall thinking that’s important, not the business specifics
    19. 19. 1. Why plan? – the benefits of business planning (1 hour) ◦ Whole group taught session (20 minutes) ◦ Group work - the role of planning in defining the purpose and overall goals of the enterprise2. What to plan – key elements of the business plan (1.5 hours, incl coffee break) ◦ Whole group taught session (30 minutes) ◦ Group work - focussing on 2-3 of the key elements per group3. How to plan - how to run a planning process and to make it work for your enterprise (30 mins) ◦ Whole group taught sessionLunch (60 minutes)4. Case study (2 hours) ◦ Preparation (in syndicate streams) (60 mins) ◦ Presentation (45 mins) ◦ Wrap-up and summary of the day (15 mins)
    20. 20.  Different types of plan Enterprise vs functional/team Strategic vs operational
    21. 21. 1. Executive Summary2. Background (to the enterprise)3. Purpose and proposition4. The market: competitors, sales and marketing5. Operations6. Management team/people7. Projections (including financials, and non- financial impacts). Also use of funds.8. Risks9. Plan/timelines
    22. 22. 1. Executive Summary2. Background (to the enterprise)3. Purpose and proposition4. The market: competitors, sales and marketing5. Operations6. Management team/people7. Projections (including financials, and non- financial impacts). Also use of funds.8. Risks9. Plan/timelines
    23. 23.  Aims ◦ Demonstrate that there is a market for the product/service proposition that can support the projections ◦ Show that the competition is known and understood ◦ Define the target customer ◦ Demonstrate your advantage versus competitors ◦ Summarise the likely marketing mix ◦ Demonstrate the sales process (differs for B2B vs B2C)
    24. 24.  Potential tools 1. SWOT analysis, with key implications (SWOT + “so what”) 1. Competitor analysis (e.g. Porter’s 5 forces for assessing industry competitiveness, Porter’s generic strategies for a firm or enterprise) 2. Product and market analysis (Ansoff)
    25. 25.  Management team ◦ Experience and skills ◦ Motivation and reward Organisational structure and capability assessment (incl. strategic hires) Employees (incl. volunteers etc.) ◦ Recruitment and training ◦ Motivation and reward ◦ Development and progression ◦ Performance management
    26. 26.  Key assumptions ◦ The value added model (unit revenues and costs) ◦ Volumes (incl. breakeven analysis) Financial statements ◦ Profit and loss ◦ Cashflow forecast ◦ Balance sheet Risks and sensitivities KPIs – financial; social/environmental
    27. 27. 1. Why plan? – the benefits of business planning (1 hour) ◦ Whole group taught session (20 minutes) ◦ Group work - the role of planning in defining the purpose and overall goals of the enterprise2. What to plan – key elements of the business plan (1.5 hours, incl coffee break) ◦ Whole group taught session (30 minutes) ◦ Group work - focussing on 2-3 of the key elements per group3. How to plan - how to run a planning process and to make it work for your enterprise (30 mins) ◦ Whole group taught sessionLunch (60 minutes)4. Case study (2 hours) ◦ Preparation (in syndicate streams) (60 mins) ◦ Presentation (45 mins) ◦ Wrap-up and summary of the day (15 mins)
    28. 28.  Typical outcomes of a plan What would being “well planned” feel like? What would being unplanned feel like? What would you see/hear in a planned environment?
    29. 29.  Like anything, planning can be done badly or well. What really makes the difference? Is there a right or a wrong way? – or does it depend on the organisation?
    30. 30.  The process of creating the plan is as important as the plan itself Different plan elements require different approaches and mindsets
    31. 31.  Participating in, or leading, a planning process requires an understanding of: ◦ Why are we planning? – what’s the emphasis (e.g, between the 6 dimensions) ◦ Who are we planning for? (stakeholders) ◦ What are we planning? (scope) ◦ What are the outcomes we are seeking?
    32. 32. 1. 3.2.
    33. 33. - How important is my planning process? (as opposed to theplan outcome/content). Which of the following are going tohelp me: - Wide awareness of the plan -Commitment to the plan from others who will help deliver it - Validation/checking of the plan- Who do I want to create the plan? And who will review it?And who will use it? Me Me + Senior team Everyone
    34. 34. - An event?- A one–off process? (e.g. over several weeks/months)- A continuous/cyclical process?Choosing the right process also depends on the kind of planyou want/need- strategic- operational/tactical- financial
    35. 35.  Metrics Tracking Accountability – linked elements How will I know if I have implemented my plan?
    36. 36. - Overall objective for the day – to provide you with inspiration, tools, benchmarks and “practice opportunities” to build effective business plans for your social and sustainable enterprises1. Why plan – the benefits of business planning2. What to plan – key elements of the business plan3. How to plan - how to run a planning process and to make it work for your enterprise4. Case study

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