Business Planning inAssociationsa theoretical approach and a practical case:The BP of ESTROAlessandro Cortese, ESTRO CEOES...
Profit Potential+Social ImpactPotential+−Old SchoolCorporationOld SchoolNot for Profitx−Profit with a PurposeSocial entrep...
Paths to growth are not idiosyncratic butstrategicAny organization that wants to berelevant, to deliver value at scale, ...
Dual FocusChallenges in Social ProfitCultivate a distinct set of fundersIdentify beneficiaries and createvalue through p...
Identify beneficiaries and makedifference for them with programs→Beneficiaries usually fund only part of yourmissionKey d...
Some elements to define a Business Plan• The business plan is not abstract, uninformative, theoretical ormysterious• It’s ...
Definition• A business plan is a formal statement of a set of business goals, thereasons why they are believed attainable,...
FUNDAMENTALS
FUNDAMENTALSMulti-year Plan:• Financial forecast over 3 to 5 years• Key Performance Indicators forecast over the same peri...
From Strategy to Business PlanningMissionVisionStrat.LTPlanSTPlanStrategic PlanBusiness Plan
THE PRINCIPLE OF DELEGATION OF POWERSAND REPORTINGTransfer of authority by one person or group toanother person or group:•...
Why is strategic planning important?• to bring everyone on board – to engage and to mobilizetowards the vision• to be proa...
Business Model: the step to business planningMissionVisionStrat.LTPlanSTPlan
Stakeholders SegmentsFor who are we creating value?Who are our most important stakeholders?
Value PropositionWhat value do we offer to the Stakeholders? Which one of ourstakeholders problem / need are we helping to...
ChannelsThrough which channel do our shareholders want tobe reached? How do we reach them? Which channelswork best and whi...
Shareholders relationshipWhat type of relationship does each of our stakeholders segmentsexpect us to establish and mainta...
Revenue StreamsFor what value are our shareholders and customers really willing topay? For what do they currently pay? How...
Key ResourcesWhat key resources do our value proposition require? Our distributionchannels? Stakeholders relationships? Re...
Key ActivitiesWhat key activities do our value proposition require? Revenuestreams? Stakeholders?
Key PartnersWho are the key partners? Who are the key suppliers? What keyresources do we retain from partners? What key ac...
Cost StructureWhat are the most important costs inherent in our business model? Whichkey resources are most expensive? Whi...
Architecture of the value creation, delivery, and capture mechanismsThe 9 building blocks of a business modelStakeholder S...
Fundamental Questions• Where are we now? (Assessment)Where are we now? (Assessment)• Where do we need to be? (Gap / Future...
MissionVisionStrat.LTPlanSTPlan
Created in 1980No little changes in StatutesEnvironmental Changes in OncologyFrom ‘Grocery store’ to ‘Supermarket’ …. ...
Clear vision & mission of the social profit organisationClear strategy to involve stakeholders in the realisation of the...
From Strategy to Business PlanningMissionVisionStrat.LTPlanSTPlanStrategic PlanBusiness Plan
 WP1: Review current organizationand governance model WP2: Review of laws and bye laws(legal perspective) WP3: Review f...
VISION: New Statement
VISION: New StatementESTRO Vision for 2020VisionEvery cancer patient in Europe will have access to state of the art radiat...
Business Model: the step to business planningMissionVisionStrat.LTPlanSTPlan
Vision Linked to theBusiness Model
Vision Linked to theBusiness Model• vision linked to modelEconomical InformationInfluence PracticesProtection Practices
Vision Linked to theBusiness Model• vision linked to modelEconomical InformationInfluence PracticesProtection Practices
Vision Linked to theBusiness Model• vision linked to modelEconomicalInformation
Vision Linked to theBusiness Model• vision linked to modelEconomical InformationInfluence PracticesProtection Practices
Vision Linked to theBusiness ModelProtection Practices:•Patents•Contracts•IT platforms•Membership•…•Legislation
Vision Linked to theBusiness Model• vision linked to modelEconomical InformationInfluence PracticesProtection Practices
Vision Linked to theBusiness ModelInfluence Practices:•Lobbying•Marketing•Professional Practice standards•Organizational m...
Vision Linked to theBusiness Model• vision linked to modelEconomical InformationInfluence PracticesProtection Practices
Focus on ‘Vision initiatives’ with budgetary impact on reference period:Action 2:•To implement a renewed ICT platform To ...
Membership• The objective of ESTRO is to increase significantly its representation factor bygrowing its membership reachin...
Education: Teaching Courses• The educational offering of ESTRO is one of the most important “stars” of theSociety, having ...
Multi year and annual PlansMissionVisionStrat.LTPlanSTPlan
FINANCIAL PLANNING : THE CONCEPTStarting point of the model:• Input = budget based on actual figures and averages on long ...
In order to be a working instrument, the model should be made dynamic, allowing to:1. Verify the financial impact of strat...
• The budget of the plan has been based on historic data (accounting data for previousyears or meetings)• Assumptions are ...
New dynamic budgeting and controlling tool:• Starts from historic and audited data• Consolidates data against a structure ...
Q&A
Alessandro Cortese - Business planning in associations, a theoretical approach and a practical case the business plan of t...
Alessandro Cortese - Business planning in associations, a theoretical approach and a practical case the business plan of t...
Alessandro Cortese - Business planning in associations, a theoretical approach and a practical case the business plan of t...
Alessandro Cortese - Business planning in associations, a theoretical approach and a practical case the business plan of t...
Alessandro Cortese - Business planning in associations, a theoretical approach and a practical case the business plan of t...
Alessandro Cortese - Business planning in associations, a theoretical approach and a practical case the business plan of t...
Alessandro Cortese - Business planning in associations, a theoretical approach and a practical case the business plan of t...
Alessandro Cortese - Business planning in associations, a theoretical approach and a practical case the business plan of t...
Alessandro Cortese - Business planning in associations, a theoretical approach and a practical case the business plan of t...
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Alessandro Cortese - Business planning in associations, a theoretical approach and a practical case the business plan of the european society for radio therapy and oncology

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  • Business models as key for the transition Difference: re-invest to stakeholders In this sense, little difference in tools between for and not for profit.
  • Paths to growth in social profit are not different from for-profit organisations – any organisation that creates , delivers and captures value needs a business model Reference to evolution of ESTRO in this process: Estoril: define mission, vision & strategy going forward : responsibility of Board –> translate outcome into business plan (management) -> report back to Board
  • Context of a social profit organisation: (in general) balance between beneficiaries of your services and funders of your mission. In context of ESTRO, both beneficiaries and funders are the same: Beneficiaries: members & service recipients Funders: Members, Industry: Membership Education: Registrations, exhibition, advertising, FR Congresses: Registrations, exhibition sales, sponsorship & advertsing Donor – Individuals that contribute something, such as money, to a cause or fund in order to allow the organisation to achievce its goal (not a member of the organisation) Funder – Who provides “funds” (financial support) for something  expects service in return (e.g. government/companies/etc.) ESTRO – high focus on recipients of their services (members & non-members) – need to make sure you provide sufficient value/ answer needs of corporate partners as well. (cfr. Business Plan 2010 – 2012) Fundraising often addressed on an ad hoc (year-by-year) basis, which does not allow to build a sustainable model and to foster growth.
  • Refer to structure of the presentation (fil rouge): Focus on: Funding Model Testimonial – Bridge between funding model and governance model theory Governance Model
  • Paths to growth in social profit are not different from for-profit organisations – any organisation that creates , delivers and captures value needs a business model Reference to evolution of ESTRO in this process: Estoril: define mission, vision & strategy going forward : responsibility of Board –> translate outcome into business plan (management) -> report back to Board
  • ESTRO: Stakeholders – members & service recipients – what do we offer for each of them What does a typical business model look like – what elements does it comprise? A business model describes the rationale of how an organization creates, delivers, and captures value (economic, social, or other forms of value) In theory and practice the term business model is used for a broad range of informal and formal descriptions to represent core aspects of a business, including purpose, offerings, strategies, infrastructure, organizational structures, trading practices, and operational processes and policies. Hence, it gives a complete picture of an organization from a high-level perspective. Social profit organizations have a viable way to create, deliver, and capture value, therefore they have a business model
  • Paths to growth in social profit are not different from for-profit organisations – any organisation that creates , delivers and captures value needs a business model Reference to evolution of ESTRO in this process: Estoril: define mission, vision & strategy going forward : responsibility of Board –> translate outcome into business plan (management) -> report back to Board
  • Paths to growth in social profit are not different from for-profit organisations – any organisation that creates , delivers and captures value needs a business model Reference to evolution of ESTRO in this process: Estoril: define mission, vision & strategy going forward : responsibility of Board –> translate outcome into business plan (management) -> report back to Board
  • Paths to growth in social profit are not different from for-profit organisations – any organisation that creates , delivers and captures value needs a business model Reference to evolution of ESTRO in this process: Estoril: define mission, vision & strategy going forward : responsibility of Board –> translate outcome into business plan (management) -> report back to Board
  • Alessandro Cortese - Business planning in associations, a theoretical approach and a practical case the business plan of the european society for radio therapy and oncology

    1. 1. Business Planning inAssociationsa theoretical approach and a practical case:The BP of ESTROAlessandro Cortese, ESTRO CEOESAE Vice President
    2. 2. Profit Potential+Social ImpactPotential+−Old SchoolCorporationOld SchoolNot for Profitx−Profit with a PurposeSocial entrepreunership
    3. 3. Paths to growth are not idiosyncratic butstrategicAny organization that wants to berelevant, to deliver value at scale, and tosustain itself must clearly articulate andevolve its business modelTranslate mission, vision, strategy andbusiness model into business plan→Multi-year Plan (Long Term)→Year Plan (Short Term)Paths to growthChallenges in Social Profit
    4. 4. Dual FocusChallenges in Social ProfitCultivate a distinct set of fundersIdentify beneficiaries and createvalue through programsHowever, what is the differencebetween shareholders andstakeholders?Provide clarity about→how you will fund your mission→how to deliver your programmaticimpact Often main focus on beneficiaries ↔fundraising on an ad hoc basis
    5. 5. Identify beneficiaries and makedifference for them with programs→Beneficiaries usually fund only part of yourmissionKey drivers to growthChallenges in Social Profit Cultivate a distinct set of funders→ Building and scaling sustainable financialsupportKey drivers to growth in non profit→Choose right business model that is a natural match for your mission→Choose transparant governance model to achieve your goals
    6. 6. Some elements to define a Business Plan• The business plan is not abstract, uninformative, theoretical ormysterious• It’s a document that convincingly demonstrates that yourbusiness can sell enough of its products or services to make asatisfactory social profit and be attractive to potential backers• it is a selling document• The plan writers should have an in depth understanding of financialpro forma statements, cost and cash flow analysis and revenuemodeling.
    7. 7. Definition• A business plan is a formal statement of a set of business goals, thereasons why they are believed attainable, and the plan for reaching thosegoals.• In non-profit organizations, creative tensions may develop in the effort tobalance mission with "margin”.• a 3 to 5 year business plan is essential to any organization…
    8. 8. FUNDAMENTALS
    9. 9. FUNDAMENTALSMulti-year Plan:• Financial forecast over 3 to 5 years• Key Performance Indicators forecast over the same period• Detailed Program PlanAnnual Plan:• Budget• Description of key processes and procedures• Include a cash flow analysis next to the P&L (costs & revenues)Processes and Procedures:• Standardization of operational activities• Definition of accountabilities and controls
    10. 10. From Strategy to Business PlanningMissionVisionStrat.LTPlanSTPlanStrategic PlanBusiness Plan
    11. 11. THE PRINCIPLE OF DELEGATION OF POWERSAND REPORTINGTransfer of authority by one person or group toanother person or group:• Authority• Accountability• Responsibility12
    12. 12. Why is strategic planning important?• to bring everyone on board – to engage and to mobilizetowards the vision• to be proactive vs reactive to external forces of the environment• to guide decision making at all levels• to be accountable to the key stakeholders and to the public• to improve organizational learning and capacity• to communicate to the public what is important
    13. 13. Business Model: the step to business planningMissionVisionStrat.LTPlanSTPlan
    14. 14. Stakeholders SegmentsFor who are we creating value?Who are our most important stakeholders?
    15. 15. Value PropositionWhat value do we offer to the Stakeholders? Which one of ourstakeholders problem / need are we helping to solve? What bundle ofproducts and services are we offering to each stakeholders segment?
    16. 16. ChannelsThrough which channel do our shareholders want tobe reached? How do we reach them? Which channelswork best and which ones are the most cost-efficient?
    17. 17. Shareholders relationshipWhat type of relationship does each of our stakeholders segmentsexpect us to establish and maintain with them? Which ones have weestablished? How are they integrated with our model?
    18. 18. Revenue StreamsFor what value are our shareholders and customers really willing topay? For what do they currently pay? How much does each revenuestream contribute to the overall revenues?
    19. 19. Key ResourcesWhat key resources do our value proposition require? Our distributionchannels? Stakeholders relationships? Revenue streams?
    20. 20. Key ActivitiesWhat key activities do our value proposition require? Revenuestreams? Stakeholders?
    21. 21. Key PartnersWho are the key partners? Who are the key suppliers? What keyresources do we retain from partners? What key activities are performedby partners?
    22. 22. Cost StructureWhat are the most important costs inherent in our business model? Whichkey resources are most expensive? Which key activities are mostexpensive?
    23. 23. Architecture of the value creation, delivery, and capture mechanismsThe 9 building blocks of a business modelStakeholder SegmentsStakeholder RelationsChannelsRevenue StreamsCost StructureKey PartnersKey ResourcesKey ActivitiesValue Proposition
    24. 24. Fundamental Questions• Where are we now? (Assessment)Where are we now? (Assessment)• Where do we need to be? (Gap / Future EndWhere do we need to be? (Gap / Future EndState)State)• HowHow will we close the gap (Strategic Plan)will we close the gap (Strategic Plan)• HowHow will we monitor our progress (Balancedwill we monitor our progress (BalancedScorecard / KPIs)Scorecard / KPIs)• HowHow will we integrate all components of thewill we integrate all components of theorganization in one model.organization in one model.BusinessModel)
    25. 25. MissionVisionStrat.LTPlanSTPlan
    26. 26. Created in 1980No little changes in StatutesEnvironmental Changes in OncologyFrom ‘Grocery store’ to ‘Supermarket’ …. To chain of supermarketsFrom ‘ad hoc’ planning to growth modelingESTRO in 2009Starting Prespective
    27. 27. Clear vision & mission of the social profit organisationClear strategy to involve stakeholders in the realisation of the organisation’s goalsClear roles & positioning of the different functionsClear delimitation of tasks between the different functionsBalanced and educated Board of DirectorsClose attention for the decision-making processComplementary tasks to the members of the BoardIntegrity of managementRecommendations receivedKey Paths to Growth
    28. 28. From Strategy to Business PlanningMissionVisionStrat.LTPlanSTPlanStrategic PlanBusiness Plan
    29. 29.  WP1: Review current organizationand governance model WP2: Review of laws and bye laws(legal perspective) WP3: Review future objectives WP4: Consolidate observations andpresent recommendations WP5: Draft action plans and provideplan for implementationMISSION: Organizational Audit and New Articles ofIncorporation and Internal Rules
    30. 30. VISION: New Statement
    31. 31. VISION: New StatementESTRO Vision for 2020VisionEvery cancer patient in Europe will have access to state of the art radiation therapy, as part of amultidisciplinary approach where treatment is individualised for the specific patient’s cancer, takingaccount of the patient’s personal circumstances.Vision 1.1: Optimal individualised patient care will be achieved byintegrating, new clinical and preclinical evidence from biology,molecular/functional and anatomic imaging, and the use of novel systemicagents together with the delivery of high-precision radiation therapy in asafety-aware environment.Vision 1.2: The majority of patients will live cancer free with minimaltoxicity following the use of radical radiation therapy when used as a singlecurative modality of treatment or when used in combination with surgery,systemic chemotherapy and/or systemic targeted therapeutics….Every cancer patient in Europe will have access to state of the artradiation therapy, as part of a multidisciplinary approach wheretreatment is individualised for the specific patient’s cancer, takingaccount of the patient’s personal circumstances.In order to achieve this vision ESTRO will support the followinginitiatives and model of clinical care as part of the future strategicdevelopment of the Society:1. All patients are entitled to access healthcare systems thatenable the highest quality radiotherapy delivered within a safehealthcare environment, and on completion of treatment haveaccess to appropriate long term follow-up, advice and supportfrom members of the clinical radiation oncology team.2. All patients are entitled to receive full information on theprimary benefit, and where unavoidable, the potential side effectsassociated with their proposed radiation therapy treatmentprogramme.
    32. 32. Business Model: the step to business planningMissionVisionStrat.LTPlanSTPlan
    33. 33. Vision Linked to theBusiness Model
    34. 34. Vision Linked to theBusiness Model• vision linked to modelEconomical InformationInfluence PracticesProtection Practices
    35. 35. Vision Linked to theBusiness Model• vision linked to modelEconomical InformationInfluence PracticesProtection Practices
    36. 36. Vision Linked to theBusiness Model• vision linked to modelEconomicalInformation
    37. 37. Vision Linked to theBusiness Model• vision linked to modelEconomical InformationInfluence PracticesProtection Practices
    38. 38. Vision Linked to theBusiness ModelProtection Practices:•Patents•Contracts•IT platforms•Membership•…•Legislation
    39. 39. Vision Linked to theBusiness Model• vision linked to modelEconomical InformationInfluence PracticesProtection Practices
    40. 40. Vision Linked to theBusiness ModelInfluence Practices:•Lobbying•Marketing•Professional Practice standards•Organizational models•Patients awareness
    41. 41. Vision Linked to theBusiness Model• vision linked to modelEconomical InformationInfluence PracticesProtection Practices
    42. 42. Focus on ‘Vision initiatives’ with budgetary impact on reference period:Action 2:•To implement a renewed ICT platform To provide a solution for internal and external communication (in terms of responsibility,management and affordability) according to state of the art modern technologyAction 3:•To create a new structure (committee) that will enable an oncology intelligence /horizon scanning &monitoring function for the societyAction 4:•To create new categories of membership offering an expanded range of choicesAction 6:•To invest in a stable, affordable and reliable engagement of young inside the ESTRO organisationSTRATEGY: 13 Actions
    43. 43. Membership• The objective of ESTRO is to increase significantly its representation factor bygrowing its membership reaching a higher percentage of the total RadiationOncologists, physicists, radiobiologists and RTT in Europe, focusing on providingrelevant benefits and services, and linking those to the ESTRO activities.• ESTRO can count on a basis of around 4.400 members in good standing and on abase of over 8000 persons which every year attend an event or a teaching courseor are members without participating to any activity.• Three Membership programmes exist today: individual, joint and corporate. Anew Programme will be launched to meet the growth opportunity with a revisedset of categories.•  • Based on the previous considerations, ESTRO aims at reaching the ambitious goalof 8000 members in a three to five years timeframe.STRATEGY: 3 years KPIs, translating vision in measurable objectives
    44. 44. Education: Teaching Courses• The educational offering of ESTRO is one of the most important “stars” of theSociety, having grown steadily in the last years.• Over the years the number of Teaching Courses offered by ESTRO hasn’t stoppedincreasing. For 2010, 31 courses and 4 pre-meeting courses are scheduled. Out ofthose, 3 are new courses.• The faculty of ESRO is today made of over 190 teachers. Plateau?• The offering of teaching courses is planned to grow to 33 in 2011 and to 35 in2012.STRATEGY: 3 years KPIs, translating vision in measurable objectives
    45. 45. Multi year and annual PlansMissionVisionStrat.LTPlanSTPlan
    46. 46. FINANCIAL PLANNING : THE CONCEPTStarting point of the model:• Input = budget based on actual figures and averages on long term• Explanations for the deviations between the budget and the actualfiguresTo facilitate decision making, the model should:• Allow working with changing assumptions• Allow measuring the expected revenues and costs of a single scenario• Include a cash flow analysis next to the P&L (costs & revenues)
    47. 47. In order to be a working instrument, the model should be made dynamic, allowing to:1. Verify the financial impact of strategic choices2. Verify the actual economic investment and return of a single action3. Allow assumptions and scenario changing4. Allow variable input5. Allow comparison with actuals6. Payroll cost is normally split over different levels7. Allocation of indirect costs is normally on a more activity basedprinciple8. Include measurements for KPI’s, both qualitatively and quantitatively9. Include both P&L and cash flow analysisFINANCIAL PLANNING : OBJECTIVES
    48. 48. • The budget of the plan has been based on historic data (accounting data for previousyears or meetings)• Assumptions are based on the strategic choices made by the board or are based onassessing specific information by management, such as:• Clustering activities, and their respective revenues and costs• Indirect costs (overhead)• Growth of the organization (FTE)• Specific information (eg: estimation of forum costs and revenues, negotiations withElsevier…)• Indirect costs:• Based on historical data• Calculated as an amount per FTE• Together with salary costs, fixed at 110 Keur / FTE• Evolution in FTE and turnover is possibleFINANCIAL PLANNING : PRINCIPLES
    49. 49. New dynamic budgeting and controlling tool:• Starts from historic and audited data• Consolidates data against a structure to accomodate new strategic plan• Defines assumptions for each component of the budget• Defines a growth model through dynamic scenarios51FINANCIAL PLANNING : OUTCOME
    50. 50. Q&A

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