11. Strat Bus Plan

The strategic
business plan
A guide to preparation for not-for-profit
sport and recreation organisations

Prepared by: Industry Consultant
NSW Department of Sport and
Recreation
Industry Development Unit
Locked Bag 1422
Concord West NSW 2138

Tel: 02 9006 3700

October 2001

THE STRATEGIC BUSINESS PLAN – A GUIDE TO PREPARATION NSW D E P A R T M E N T OF S P O R T AND R E C R E A T I O N 1

Contents

1) Introduction and Aim

2) The Elements of a Strategic Business Plan

3) Outline of Contents

4) The Body of the Strategic Business Plan

i. The Management Plan/Section

ii. The Marketing Plan/Section

iii. The Operational Plan/Section

iv. The Financial Plan/Section

5) The Strategic Business Plan – A Self Paced Activity For Your Board Or Committee

6) Understanding the Environment – S.W.O.T. Analysis

7) Evaluation

8) Glossary of Terms

9) Sample Draft Strategic Business Plan

THE STRATEGIC BUSINESS PLAN – A GUIDE TO PREPARATION NSW D E P A R T M E N T OF S PORT & RECREATION 2

1) INTRODUCTION AND AIM

The following guide has been produced to assist your sporting or recreation organisation in
the preparation of its Strategic Business Plan.

It has been formulated to provide you with a step by step process to be used as an aid when
developing your plan in conjunction with the fact sheets and funding guidelines.

It also includes a template of a Strategic Business Plan which can be customised to suit the
needs of your individual organisation.

The aim being that, after having worked through this guide, your volunteer board, or
committee, with your paid or volunteer managers should be able to:

• Understand the role of the Strategic Business Plan

• List several reasons for developing a Strategic Business Plan

• Identify sources where you can get help in developing your Strategic Business Plan

• Identify the type of information to include in the Strategic Business Plan

• Prepare an outline for a Strategic Business Plan.


2) THE ELEMENTS OF A STRATEGIC BUSINESS PLAN

There are seven (7) key elements of a good Strategic Business Plan for a not-for-profit
sporting and recreation organisation:

1. Vision – it is essential for a your organisation have a vision. Without vision, a
your organisation may have nothing to strive towards.

2. Commitment – every organisation needs to be committed to its vision, otherwise it is
unlikely to succeed. Commitment is also required from both the
organisation and its employees.

3. Timelines – every organisation needs to have timelines, which indicate when
particular milestones will be achieved.

4. Objectives – an aim or set of goals to be achieved.

5. Reporting – organisational reports should focus on performance and trends and
help in determining change.

6. Contingencies – every set-back cannot be anticipated however, it is possible
to account for the risks that may be faced and work out a
contingency plan. It is also important to learn from mistakes, and the
Strategic Business Plan needs to be changed to reflect the new
learning.

7. Change – it is important that any major changes affecting the
organisation are reflected within the Strategic Business Plan. A
Strategic Business Plan is an evolving document, and it will change as
a business develops.


3) OUTLINE OF CONTENTS

The contents of a Strategic Business Plan for sporting and recreation organisations will vary
according to:

 The size of the organisation;
 The structure of the organisation;
 The impact of the business environment on which the organisation operates;
 The number of personnel involved in the conduct of the business of the organisation;
 The influence of key personnel;
 The influence of internal and external forces including: member and government;
 The commitment of the organisation to an on-going planning process.

There are typically up to fourteen (14) sections that you could chose to include in your
Strategic Business Plan, much will depend upon the size and nature of your sporting or
recreation organisation.

If your organisation is very small you may wish to exclude a particular section (s). It is
entirely up to you. However, those sections highlighted in bold should be considered for
inclusion.

The fourteen (14) sections include:

1. A cover sheet
2. A signature page
3. An executive summary
4. A table of contents
5. A list of major assumptions
6. A list of critical success factors and issues facing your organisation
7. Organisation history
8. The vision of the organisation
9. A list of goals and objectives over the long term
10. Tables identifying key performance areas, goals, objectives, strategies, action plans
11. Management structure
12. SWOT analysis
13. Financial data
14. Appendices

Detail to include in each of the above sections is as follows:

1) A cover sheet should include:

a) Name of the organisation and logo (of applicable)
b) Organisations address
c) Contact information – telephone, facsimile and e-mail
d) Principal i.e. the directors
e) Date

2) A signature page – is where directors or key participants to the plan sign their
commitment to the ownership of your plan.


3) Executive summary

Provides an overview of the sport and recreation organisations business, briefly mentions
major events and identifies the strategic direction of the organisation over the time frame
of the plan.

4) Table of contents – needs to be accurate to reflect the details of the document to the
reader.

5) Major assumptions – all strategic business plans should identify assumptions made,
which in turn are used to determine goals, objectives, strategies and action(s) plans.
Assumptions that are central to the success of the plan need to be clearly stated and what
contingencies identify that will be implemented if an assumption (s) is verified.

6) A list of critical success factors and issues facing your organisation – these are helpful
both to the organisation and to the reader in identifying those issues that may be peculiar
to your organisation but which are critical to the success of the plan.

7) Organisation history – details a history of milestones, past successes in meeting
objectives of the organisation.

8) The vision of the organisation – refers to the philosophies and the mission statement.
The philosophies are the beliefs that shape the culture of the organisation and its people.
The aspects of the philosophy may include:

a) Members
b) Planning
c) Commitment
d) Integrity and ethics
e) Volunteers
f) Management
g) Growth and participation.

The mission statement refers to what your organisation hopes to achieve.

9) A list of goals and objectives over the long term:

a) Goals can be best described as the ‘destination points” being aimed for. They act as
the reference guide for the decision making. They give you a clear picture of where
your organisation wishes to be in the long term.
b) Whilst, objectives are specific and represent shorter term ‘measuring posts’ for the
organisation progressing towards achieving the goals.

10) Tables identifying key performance areas, goals, objectives, strategies, action plans;
The plan needs to be set out in such a way that makes it logical and easy to read and
understand. Tables provide a way to achieve this – see the Strategic Business Plan
template.

11) Management structure; - this section can be in the front part of the plan or, in the
addendum. It contains an organisational chart showing the corporate governance
structure of the organisation – i.e relationship between board/committees/management in
larger organisations. Whilst also identifying key people in your organisation.


12) SWOT analysis - see The Marketing Plan/Section and ‘Understanding the environment’.

13) Financial data – see The Financial Plan/Section

14) Appendices.- see next section


4) THE BODY OF THE STRATEGIC BUSINESS PLAN

This can then be divided into four distinct sections incorporating all of the above fourteen
items as follows:

i. The Management Plan/Section

Describes the business of the sporting or recreation organisation and includes:

• Cover sheet title and time frame
Example: NSW Widgets Strategic Business Plan 1999-2003

• Table of Contents

• A statement of purpose

• An Executive summary that, in a nutshell, reports past achievements, outlines future
challenges and performance targets

• A signature page for decision-makers and those other responsible for implementation
and review to sign

• A mission statement; that focuses the organisation to put its goals into writing so
that they can be reviewed and analysed periodically

• A strong unified sense of direction incorporating vision of both a State and National
Example: a vision statement

• An organisational chart
Example: Management structure etc,. Could be included as an addendum

• Organisational values; (if appropriate)
Example: what are the internal and external values of NSW Widgets.

ii. The Marketing Plan/Section

Details a market analysis and statement of issues which are facing the organisation and also
identifies key performance areas in relation to promotions and media relations, sponsorship
and fundraising, merchandising, product development and service delivery, market
positioning etc.

Marketing plays a vital role in any successful organisation. How well you market your
organisation, along with a few other considerations, will ultimately determine your degree of
success or failure. The key element of a successful marketing plan is to know your members
– their likes, dislikes, expectations. By identifying these factors, you can develop a
marketing strategy that will allow you to arouse and fulfil their needs.

Identify your members by their age, sex, income, educational level and residence.

Develop marketing strategies by answering these questions below:


1. Who are your members? Define your target market(s).
2. Are your markets growing? Steady? Declining?
3. What membership pricing strategies have you devised?
4. What will attract prospective sponsors to your organisation?
5. What competitors does my organisation have that will impact on membership
growth?

Remember to:
• Include the key performance areas
• Identify realistic and achievable goals and objectives
• Establish strategies
• Develop detailed action plans
• Formulate time lines
• Assign responsibility to strategies and actions steps
• Forecast budgeted cost
• Identify performance outcomes

Much of this information can be included in the work sheets as shown in the template.

iii. The Operational Plan/Section

Identifies key performance areas in relation to administration and human resource
management which includes:

• Employment matters
• Volunteers recruitment/training/maintaining
• Coaching and athlete development
• Participation – membership, social justice issues – gender equity, disadvantaged groups
• Sports science
• Education and training
• Facilities and equipment

Much of this information can also be included in the work sheets as shown in the template.

iv. The Financial Plan/Section

Includes revenue and supply sources, financial plan - a budget for all operational and
marketing, forecast balance sheet, cash flow, profit and loss statement.

A. Financial Data
• Balance Sheet
• Pro-forma income projections (profit & loss statements)
• Three year summary
• Detail by month, first year
• Detail by quarters, second and third years
• Assumptions upon which projections were based
• Pro-forma cash flow


B. Supporting Documents (FOR banking institutions ONLY if requiring loans)

• Tax returns of principals for last three years
• Copy of proposed lease or purchase agreement for building space
• Copy of licenses and other legal document
• Copy of resumes of all principals
• Copies of letters of intent from suppliers, etc.

Remember:

• List a summary of performance measures;
• Details financial plan/budgets/targets/;
• Review and evaluation.
• Strategic Business Plans should be a user friendly/reader friendly document,
which drives the business. It should be a useful management tool used by the
organisation to identify its future direction and measure its performance.
• All Strategic directions should be clearly defined, outcomes focussed and
measurable.
• The performance of the organisations using the above systems can be reviewed
weekly, monthly, quarterly, annually.

Sound financial management is one of the best ways for your organisation to remain
profitable and solvent.

How well you manage the finances of your organisation is the cornerstone of every
successful business venture.

To effectively manage your finances, plan a sound, realistic budget by determining the
actual amount of money needed to operate your organisation (operating costs).

The operating budget will reflect your priorities in terms of how you spend your money, the
expenses you will incur and how you will meet those expenses (income).
It should allow for the following expenses.

Operating Budget:
• Personnel
• Insurance
• Rent
• Depreciation
• Loan payments
• Advertising/ promotions
• Legal/ accounting
• Miscellaneous expenses
• Supplies
• Payroll expenses
• Salaries/ wages
• Utilities
• Dues/ subscriptions/ fees

THE STRATEGIC BUSINESS PLAN – A GUIDE TO PREPARATION NSW D E P A R T M E N T OF SPORT & RECREATION 10

• Taxes GST (if applicable)
• Superannuation
• Repairs/ maintenance

The financial section of your Strategic Business Plan should include any loan applications
you have filed, a capital equipment and supply list, balance sheet, breakeven analysis, pro-
forma income projections (profit and loss statement) and pro-forma cash flow.

The income statement and cash flow projections should include a three-year summary, detail
by month for the first year, and detail by quarter for the second and third years.

Your financial adviser will assist your board or committee in determining the accounting
system that best suits your organisation.

Questions that you will need to consider are:
• What type of accounting system will you use?
• What financial projections will you need to include in your Strategic Business Plan?

Your plan should include an explanation of all projections. Unless your are thoroughly
familiar with financial statements, get help in preparing cash flow and income statements
and your balance sheet.

Your aim is not to become a financial wizard, but to understand the financial tools well
enough to gain their benefits. Your accountant or financial adviser can help you accomplish
this goal.

Sample balance sheets, income projections (profit and loss statements) and cash flow
statements are included in the Strategic Business Plan in this guide.

For a detailed explanation of these and other more complex financial concepts, seek advise
from your financial adviser or accountant.

5) THE STRATEGIC BUSINESS PLAN – A SELF PACED ACTIVITY FOR
YOUR BOARD OR COMMITTEE

Answer these questions:

• Briefly describe what goes into a Strategic Business Plan.
• Why is a Strategic Business Plan important for your organisation?
• Identify advantages of developing the marketing, management, operational and
financial management goals, objectives and strategies.
• List financial projections included in the financial management plan.
• Sketch an outline for a Strategic Business Plan.
• What sort of information do you think is relevant for the strategic business plan?
•
•
Once you have a clearly understood and committed mission statement, then all actions and
decisions of the organisation can be measured against that mission statement.


“An organisation mission statement – one that truly reflects the deep shared vision and
values of everyone within the organisation – creates a great unity and tremendous
commitment. It creates in people’s hearts and minds a frame of reference they have bought
into the changeless core of what the business is about.” (S. Covey, The seven habits of
highly effective people, page 143)
•
• Our Mission
•
Where we are now
Where do you think your organisation is now? How would you describe in a few sentences
to someone who knows nothing of your business what it is about?

Our mission encapsulates

• the overall objective of our organisation
• our unanimity of purpose
• attitudes and outlook
• reason our organisation exists
• our philosophy and purpose
•
Understanding the uniqueness of our organisation

It is important that we have some understanding of the things which help to set our
organisation apart from other sporting or recreation organisations.

Some of these things may be positive and others may be negative and we will want to plan
to change those.

These factors will help formulate our mission and our vision.

Make some notes on the following:

The culture of your organisation.

The organisational norms

What the organisation stands for

Our vision


The vision is our determination of “where we want to be”The vision is a statement of our
future. It sets the objectives to motivate our focused efforts.

List some of the general things you would like your organisation to achieve in the future.

From determining our mission and our vision we can then move on to forming a mission
statement.
Many organisations have a central mission statement, then each department may write their
own individual mission statement in keeping with that central mission statement.


6) UNDERSTANDING THE ENVIRONMENT

The next thing to do before actually writing your plan is to understand the environment in
which the organisation operates. One technique for doing this is called SWOT analysis.

S.W.O.T ANALYSIS

Step One: The Evaluation and Review of the S.W.O.T Analysis
• Identify all the strengths that the organisation possesses in its internal environment
• Identify all the weaknesses in the internal environment.
• Identify all the opportunities in the external environment that are facing the
organisation
• Identify all the threats in the external environment that are facing the organisation
Environmental Analysis Worksheet

Strengths Weaknesses

Opportunities Threats


7) EVALUATION

The business planning process is ongoing. Although the plan is prepared with a three to five
year period in mind, it must be updated on a yearly basis. Once you have prepared or
updated your plan for the year, it should become your organisation’s blueprint – a document
which should be referred to regularly for guidance and direction.

As the evaluation table shows, parts of the business plan need to be assessed and updated
frequently, but the entire business plan should be reviewed and updated annually. The
annual evaluation requires that each part of the business plan be reviewed, starting with the
values, vision and mission statement, followed by environmental analysis, the strategy, and
so on. You may find that your vision and mission statements don’t change much, and that
your strategy also remains pretty much the same, or you might decide that the strategy
which you implemented one year is not applicable for the next year.

The best time for this evaluation is just prior to the budget setting process, so that it runs
concurrently with the financial year.

Although an annual evaluation process is recommended (where you might find you
completely rewrite your business plan), this does not exclude regular evaluation of each
stage of the planning process. You need to be constantly alert to changes which may affect
your organisation. For example, a recent change in the external environment might pre-
empt a particular strategy, forcing you to alter your strategy so that you can take advantage
of the new environmental conditions.

Financial plans need to be prepared annually and evaluated monthly. You should have
produced financial statements by the second week of the next month, ready for analysis.
You need to have your finger constantly on the pulse of the organisation, paying particular
attention to cashflow. If the warning bells are ringing, take action NOW.

Targets and action plans need to be evaluated more frequently. Targets should be reviewed
quarterly, and action plans monthly, weekly and even daily (by the person carrying them
out). By setting targets and action plans, you are in effect breaking down your
organisation’s vision into more obtainable, measurable, short-term parts. By regularly
evaluating your targets and action plans, your are ensuring progress toward that vision. It is
far easier to correct performance early in the process, rather than a year down the line when
the damage is almost irreparable.

Steps In The Evaluation Process

1. Annually evaluate your entire business plan, looking at each part of the plan in
detail, and making the appropriate changes.

2. Quarterly evaluate the targets of your key people at progress review meetings. Do
this by looking at the targets and action plans that have been set, and assess whether
the targets were achieved. If targets were not achieved, analyse why not. Then
develop a new plan of action or alter the existing one to hold operations in line, or to
return operations to an in-line state after deviation.
3. Update and evaluate your financial plans monthly by comparing planned against
actual. If things are not going as you had hoped, analyse why and take corrective
action immediately.


Constantly evaluate your action plans for your own targets, preferably on a daily basis. The
sooner you realise that you are going off track (or can’t achieve a target), the better.

Summary

S The business planning process is ongoing.

T The entire business plan should be evaluated and updated annually, preferably just
prior to the budget setting process. However, regular evaluation of your entire
business plan is always beneficial.

b Targets should be evaluated quarterly.

T Financial plans should be evaluated monthly.

F Action plans should be evaluated monthly, weekly and daily.

A The sooner you identify that you are deviating from your plan, the better for you can
take corrective action before great damage is done.

t Routine time for planning and evaluation should be built into your calendar.

The table below set outs a review timetable for State sporting and recreation organisations

Strategic Business Update Total Review Responsibility
Planning
Values, Vision, Mission Six-monthly, but only if Annually Board/management
required
Environmental Analysis Six-monthly Annually Board/management
Committees
Strategy Formulation Six-monthly, but only if Annually Board/management
required Committees

Targets Monthly Quarterly and Annually Board/management
Committees

Financial Plans Monthly Annually Board/management
Committees
Resource Requirements Weekly, daily Monthly Board/management
and Action Planning Committees
Entire Business Plan Annually Annually Board/management
Committees


8) GLOSSARY OF TERMS

GOAL - WHAT IS A GOAL?

A Goal is the overall organisational aspirations which the organisation strives to achieve.
While usually difficult to measure and quantify, they set the direction of the organisation
and support the mission statement

OBJECTIVE - WHAT IS AN OBJECTIVE?

An Objective is a set of clear statements of obtainable results or ends within a defined term.
They are expressed as SMART - specific, measurable, achievable, realistic, and time bound,
and are consistent with the organisations goals. A good objective will have its own
performance indicators.

STRATEGIES - WHAT ARE STRATEGIES?

Strategies are activities which are implemented towards the achievement of stated
measurable objectives. They describe the actions that need to be taken by the organisation in
order to achieve each objective.

OUTCOMES - WHAT ARE OUTCOMES?

In the context of the Business Plan, each strategy as an OUTCOME(S) by which the
consequence of the organisations goals, objectives and strategies can be measured. Note:
The Outcomes must be measurable to indicate the success of implementing the plan.

MISSION STATEMENT and CORPORATE GOALS

Is a statement of your organisations purpose and what it wants to achieve in the larger
environment. These are normally specified in the Constitution.

KEY PERFORMANCE AREAS

The specific areas of operation which the organisation wishes to categorise its desired
achievements..FOCUS AREAS are those specific operational sub - areas.


SAMPLE
STRATEGIC
BUSINESS PLAN
Change this strategic business plan to suit the requirements of your sporting or recreation
organisation

Remember!

What goes in a Strategic Business Plan for sporting and recreation will vary according to:

 The size of the organisation

 The structure of the organisation

 The impact of the business environment on which the organisation operates

 The number of personnel involved in the conduct of the business of the organisation

 The influence of key personnel

 The influence of internal and external forces including: member and government

And - the commitment of the organisation to an on-going planning process.


DRAFT MK 1 – DATE: _________________

NAME OF THE ORGANISATION Inc.

STRATEGIC BUSINESS
PLAN
Period of the plan

Business Contact Details:
Telephone:
Facsimile:
Website:

Principles:
Name: Telephone
President
Executive Director

Date of Plan:


It is always important that key personnel are committed to the plan. Empower them
by having them have direct input into the planning process and signing this signature
page once the contents are agreed upon.

Signature Page
The Strategic Business Plan has been developed at length and agreed to and signed off by the
following stakeholders of the name of the organisation:

The Board: Portfolio
1. Name: Position: President (Director)
2. Name: Position: (Director)

Management Position
1. Name:
2. Name:
3. Name:
4. Name:
5. Name:
6. Name:

The Council (IF APPLICABLE)
1. Name: Councilor representing:

Date:


1. Executive Summary
The Strategic Business Plan will play an integral role in managing the Association and
achieving its goals over the next three (3, 4, or 5) years.

It will be used extensively by the Board

When necessary, it will be modified to reflect the ongoing development and needs of the
sport/association.

The Executive Summary can outline past achievements, future goals/objectives, and
recommendations


Table of Contents
3. Issues facing the Sport

4. Environmental and marketing analysis

5. Short and long term objectives and Key performance areas

6. Strategic Business Plan (3, 4, or 5 yr period)
List your Key Performance Areas:

7. Financial Assessment

8. Monitor and Review

9. Management Structure

10. Organisational Flowchart

11. Appendices including a history of your organisation


2. Mission Statement
A clear statement of what the organisation does

Corporate Vision
Is a vivid picture of where the members want the organisation to be

3. Issues facing the organisation
The Name of the organisation is faced with a number of issues that are likely to have a


direct impact on the implementation of the plan. These issues have been addressed in this
Strategic Business Plan.
SAMPLE ISSUES SHOWN BELOW
Issues
• Decrease levels of funding from sources such as sponsorship, fundraising, government
• Issues corporate governance – role of the board, regions, committees, directors,
relationship between Executive and management/staff, reporting lines between
Executive/management/committees.
• Servicing of member organisations
• Implementation of education and training programs
• The decline in volunteers
• Lack of a unified approach to strategic planning and co-ordination
• Regional development
• Allocation and management of human resources
• Marketing and promotion of Sports Council to corporates, government, and the general
community
SAMPLE below

OUTCOMES
The following OUTCOMES reflect what the sport wants to achieve over the next three (3)
years.
To;
 Financial stability and growth
 The sport to have strong market position
 Recognised as leader in best governance and management
 Increase support to member organisations
 Member organisations to implement the strategies of the Association
 Increase levels of sponsorship and fundraising
 Effective Governance and management practices in place
 Effective volunteer management plan
 Athlete membership growth and participation
 Effective sport education programs
 Greater level of support from sporting organisations


4. Environmental and Marketing Analysis
The SWOT analysis has two targets:

1. to help identify where the Sport is NOW? and,

2. to prepare the Sport to develop a strategy that will utilise the organisations strengths,
manages its weaknesses, take advantage of opportunities, and minimise the impact of
those threats that become real.

The Goals, objectives and strategies in this Strategic Business Plan aim to bridge the gap
between where the (name of the organisation) is NOW, and the vision of where the
organisation wants to be in the future.

Environmental Analysis
Example shown below
Strengths Weaknesses

Our STRENGTHS in the internal Our WEAKNESSES in the internal environment;
environment;  Lack of funds to reach all areas to broaden
 People – Executive Officer and staff participation
 Venue  Not enough staff power
 Skills and expertise  Not enough volunteers
 Events  Ineffective structure
 Athletes  Ineffective governance and management
 Training and development practices
 Ineffective Regions
 Poor strategic direction, planning and review
 Communication
 Internal conflicts

Opportunities Threats

Our OPPORTUNITIES in the external THREATS in the external environment;
environment;  Lack of revenue;
 Increase in athlete membership  Declining membership
 Marketing and promotion  Decline in corporate support
 Strategic alliances with other  Rising costs
Organisations including entrepreneurs,  Market presence
government;
 Current venue to raise revenue
 Products and services that can promote
revenue
 Olympic legacy
 Increase support from government
 Internet, promoting the Sport


5. Short and long term objectives and key
performance areas

Objectives
Key performance areas
Key Performance Areas are those general areas of operation within an organisation e.g. Marketing,
where a desired outcome is required over the period of the Strategic Business Plan and beyond.

Focus areas are those specific operational areas within a key performance area. For example, a focus
area within the KPA of Marketing would be sponsorships.

Name of the organisation have identified the following Key Performance Areas (KPA’s) and focus
areas as follows:-

Examples shown below:
KPA Focus areas
Management Plan Administration, Management operations, Corporate Governance
Structure, Management practices and improvement programs,
education for directors/committee members, quality management
improvement programs, human resources, management volunteers,
paid staff

Marketing Plan Sponsorships, fundraising, merchandising, promotions,
communications, Member services support and assistance

Operational Plan Participation Development, Athlete membership education
junior/schools, Events Conduct and management of all local,
regional, and state events, facilities, equipment, sport science,
high performance – elite and non elite programs, disadvantaged
groups, Training and education, Athlete Development,
Coaching, Accreditation, non-accreditation, elite programs

Financial Plan Forecast cash-flow, balance sheet, profit and loss, operational budgets
& management


6. Name of the organisation Inc.
STRATEGIC BUSINESS PLAN (Period i.e .___________ )
Sample Only – feel free to amend
NOTE: if you are a large organisation you could have a worksheet for each focus area. Most small organisations may have one worksheet only for
each KPA and combine their focus areas - the choice is yours.

KEY PERFORMANCE AREA: Management Plan
Focus Area: Corporate Governance Structure, and management practices

Goal: To introduce best governance and management practices
Objectives: To optimise the performance of the organisation

ACTION PLAN
Time Line
Strategies Actions Who
Resp. Forecast Performance Outcome Priority
01 02 03 04 05
Review DSR report on Executive and management to Executive Nil To improve organisational High
governance meet with Board EO effectiveness

Develop a governance Executive to discuss Executive TBD To have written policy Priority
manual Attend DSR Workshop EO

THE STRATEGIC BUSINESS PLAN – A GUIDE TO PREPARATION NSW DEPARTMENT OF SPORT & RECREATION
27

KEY PERFORMANCE AREA: Marketing Plan
Focus Area: Sponsorship

Goal: Financial stability and viability
Objectives:

ACTION PLAN
Time Line
01 02 03 04 05

28

KEY PERFORMANCE AREA: Operational Plan
Focus Area:

Goal:
Objectives:

ACTION PLAN
Time Line
01 02 03 04 05

29

KEY PERFORMANCE AREA: Financial Plan
Focus Area: Accounting and Management practices

Goal:
Objectives:

ACTION PLAN
Time Line
01 02 03 04 05

30

7. Financial Assessment
The Annual Program Budget Summary for the period is below.

Both the Annual and the three, four, or five Yearly Program Budgets provide an instant recognition
of the forecast costs associated with the conduct of the business of name of sporting organisation
Inc. The financial assessment is an important reflection of the funds needed in order to achieve a
given level of results. They are also important as an input into the organisations budgetary process
and should be regularly updated.

Example:
The Annual Program Budget summary for the period..(provides a slapshot of the forecast budget
requirements for a given period).

Estimated Expenditure $ Estimated Income $

Key Performance Area
 Management Plan
 Marketing Plan
 Operational Plan
 Financial Plan
Total Expenditure Total Income
Surplus/(Deficit

Explanatory notes
Two examples of financial models are given. A Cash flow forecast budget and operating budget
forecast.

Note: Most for profit corporates (companies) use forecast models for profit and loss, balance sheet
and cash flow.

Your organisation may use computerised accounting systems ie. MYOB –products such as this
produce format forecast budgets, therefore, you may wish to include these.

Seek advice from your financial adviser or accountant

The Cash flow forecast
For any business, the cash flow forecast is a must do document that needs to be prepared on a
regular basis. In the sport and recreation industry Directors of the Board and managers need to
know the amount of cash coming into the organisation and whether the organisation can meet its
obligations when due.

The Operating Budget forecast
Provides the forecast of assumptions of income and expenses and includes the previous years
figures as a means of comparison. .


31

NSW SPORTING ORGANISATION Inc. CHANGE MONTHS ACCORDING TO FINANCIAL CYCLE
CASHFLOW FORECAST BUDGET FOR THE YEAR ENDED 30 TH JUNE
Months Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec
INCOME
Registration fees
Event income
Merchandising
Sponsorship
Interest Received
Grants
Other Income
TOTAL INCOME

EXPENSES
Affiliation Fees
Accountancy & Auditing Fees
Bad Debts
Bank Charges
Computer Expenses
Capital Expenditure
Electricity
General Expenses
Insurance
Interest
Leasing
Legal Fees

32

Motor Vehicle Expenses Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec
Newsletter
Office Expenses
Printing & Stationery
Promotions
Purchases (merchandising)
Registration Fees
Rent
Repairs & Maintenance
Salaries & Wages
Staff Training
State Team Expenses
Subscriptions
Superannuation
Telephone & Fax
Travel & Accommodation

TOTAL EXPENSES

NET INCOME

CASHFLOW ($

33

NSW SPORTING ORGANISATION INC.
OPERATING BUDGET FOR YEAR ENDING

ACTUALS
LAST YEAR $ INCOME This year being ASSUMPTIONS
Registration fees
Event income
Merchandising
Sponsorship
Interest Received
Grants
Other Income

TOTAL INCOME

EXPENSES
Affiliation Fees
Accountancy & Auditing Fees
Bad Debts
Bank Charges
Computer Expenses
Capital Expenditure
Electricity
General Expenses
Insurance
Interest
Leasing

34

ACTUAL
LAST YEAR EXPENSES This year being ASSUMTPIONS
Legal Fees
Motor Vehicle Expenses
Newsletter
Office Expenses
Printing & Stationery
Promotions
Purchases (merchandising)
Registration Fees
Rent
Repairs & Maintenance
Salaries & Wages
Staff Training
State Team Expenses
Subscriptions
Superannuation
Telephone & Fax
Travel & Accommodation

TOTAL EXPENSES

NET INCOME

35

8. Monitor and review of the plan
The STRATEGIC BUSINESS PLAN should be monitored and reviewed on a monthly,
quarterly, and yearly basis by the Board.

Directors of the Board will be responsible for their designated portfolio and must prepare a
short written report on the activities of their Standing Committees or Ad hoc Committees at
meetings of the Board.

The Chair in accordance with the Constitution should have overall responsibility to members
for the implementation and review of the Strategic Business Plan and other functions of the
Association.

The yearly review will take place prior to the end of each financial year 30 June or calendar
year as determined by the Board in accordance with the Constitution and the Act.

The table below sets out an example of a review timetable for State sporting and recreation
organisations:

Strategic Business Update Total Review Responsibility
Planning

Values, Vision, Six-monthly, but Annually Board/management
Mission only if required

Environmental Six-monthly Annually Board/management
Analysis Committees

Strategy Six-monthly, but Annually Board/management
Formulation only if required Committees

Targets Monthly Quarterly and Board/management
Annually Committees

Financial Plans Monthly Annually Board/management
Committees

Resource Weekly, daily Monthly Board/management
Requirements and Committees
Action Planning
Entire Business Annually Annually Board/management
Plan Committees

9. Management Structure (sample shown)
Role of Name of Organisation Incorporated
Council and Board

The Council
Primary role: Stakeholders forum, oversight Strategic Business Plan, legislative control.
Composition:
Meet:
President:

The Board of NSW SPORTING ORGANISATION Incorporated.
Primary role:
Composition:
Meet:
President:

Role of Standing and ad hoc Committees

Standing Committees

The rules by which the standing committees operate are outlined in the Constitution
of name of the organisation.

Finance Committee

Primary role: Provide sound financial management advice to The Board of NSW SPORTING
ORGANISATION Inc preparation of budgets

Composition:
Meet:
Convenor:

Marketing and Promotion Committee

Primary role: Develop and implement marketing strategies in accordance with the Strategic
Business Plan.

Composition:
Meet:
Convenor:

Coaching and Referee Management Committee

Primary role: Develop and implement coaching and referee education strategies in accordance
with the Strategic Business Plan.

Composition:
Meet:
Convenor:

Competitions Committee

Primary role: Liaise with clubs in accordance with the strategies of the Strategic Business Plan.

37

Composition:
Meet:
Convenor:

Representative Selection Committee

Primary role: Develop selection policy for the selection and appointment of Representative
teams in accordance with the strategies of the Strategic Business Plan

Composition:
Meet:
Convenor:

Schools Committee

Primary role: Develop a schools feeder system policy in accordance with the strategies of the
Strategic Business Plan

Composition:
Meet:
Convenor:

• Ad Hoc Committees
Ad hoc Committees are to be established on short term basis for specific purposes as follows:.

Sponsorship

Primary role: Develop and implement sponsorship strategies in consultation with the Marketing
and Promotions Committee and under the direction of the Board of NSW
SPORTING ORGANISATION Incorporated.

Composition:
Meet:
Convenor:


38

10. Organisational Flowchart

The Board
MANAGEMENT

The Counci
Standing
Committees

MEMBERS
ASSOCIATIONS or Clubs


39

11. APPENDICES


40

Customer Feedback survey
Finally, help us to help you by completing this Customer Feedback Survey and returning to:
NSW Department of Sport and Recreation
Industry Development Consultant
Locked Bag 1422 Concord West DC NSW 2138
Telephone: 9006 3700 Facsimile: 9006 3800

Did you find the Strategic Business Plan Guide to be (please circle):

Excellent Good OK Poor

Please comment (area(s) you found most useful/ in need of improvement)?

Most useful

Area(s) of Improvement

What additional information/support do you feel The Department of Sport and Recreation
could provide that would be useful in assisting your organisation to complete its Strategic
Business Plan?

Support and advice

The NSW Department of Sport and Recreation can assist your organisation in strategic
business planning. If you are a state or peak industry body contact us on (02) 9006 3700.
Alternatively, if you are a club contact your closest regional office on 13 13 02.

Disclaimer
This Strategic Business Planning Guide contains comments of a general nature only and is not intended to be
relied upon, nor as a substitute for specific professional advice. The NSW Department of Sport and
Recreation or the authors, can accept no responsibility for loss occasioned to any person doing anything as a
result of any material in this publication. This Guide can be copied without prosecution in respect to
copyright.


41

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