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Softskills
- 2. Business Etiquette 1.7 Planning 2 Progress Check Types of Plan
- 3. Business progress check Performance measurement system A system that assists organization in tracking the implementations of business strategy by comparing actual results against strategic goals and objectives Comprises systematic comparative methods that indicate progress (or lack thereof) against goals
- 4. • Key performance indicator (KPI) A KPI represents a strategic objective and metric that measures performance against a goal • Distinguishing features of KPIs Performance Measurement KPIs Strategy Targets Ranges Encodings Time frames Benchmarks
- 5. • Key performance indicator (KPI) Outcome KPIs vs. Driver KPIs (Lagging indicators (Leading indicators e.g., Revenues) e.g., Sales Leads) • Operational areas covered by driver KPIs • Customer performance • Service performance • Sales operations • Sales plan/forecast Performance Measurement
- 6. • Problems with existing performance measurement systems • The most popular system in use is some variant of the balanced scorecard (BSC) • 50-90% of all companies implemented BSC • BSC methodology is a holistic vision of a measurement system tied to the strategic direction of the organization and based on a four-perspective view of the world: • Financial measures supported by customer, internal process, and learning and growth metrics Performance Measurement
- 7. • The drawbacks of using financial data as the core of a performance measurement: • Financial measures are usually reported by organizational structures and not by the processes that produced them • Financial measures are lagging indicators, telling us what happened, why not it happened or what is likely to happen in the future • Financial measures are often the product of allocations that are not related to the underlying processes that generated them • Financial measures are focused on the short term returns Performance Measurement
- 8. • Good performance measures should: • Be focused on key factors. • Be a mix of past, present, and future. • Balance the needs of all stakeholders (shareholders, employees, partners, suppliers, etc.). • Start at the top and trickle down to the bottom. • Have targets that are based on research and reality rather than be arbitrary. Performance Measurement
- 10. 2 types of risks: 1) Business Risks: Types of Business Risks Description Examples Transferable Risks Risk that can be transferred to another party. Insurance scheme that cover fire, stolen stocks and accident at work. Controllable Risks Risk that can be somewhat controlled by an entrepreneur. Cannot fully control the situation involving market expectations, labor turnover, product quality & machine breakdown. Uncontrollable Risks Risk that cannot be controlled by an entrepreneur. Economic downturn, natural disaster e.g tsunami.
- 11. 2) Financial Risks: Types of Business Risks Description Examples Liquidity level Low liquidity – problem of setting short term debt; Too high liquidity – overspending. Lack of stocks, too much cash in hand Loan Risk due to non-servicing of financial loan. Finance business through bank’s loan – still have to pay bank monthly despite no profit. Credit Risk when company give credit facility to customers. Buy on installment - potential to be bad debt if not able to recover from customer for a long period of time. Foreign exchange Risk due to increase or decrease of foreign currency rate. Import/Export business – RM foreign product expensive; RM our product becomes cheap => Profit Margin 2 types of risks:
- 12. Depending on your business and your intended use, you may need a very different type of Business Plan: Mini-Plan: Less emphasis on critical details. Used to test your assumptions, concept, and measure the interest of potential investors. Types of Business Plan
- 13. Depending on your business and your intended use, you may need a very different type of Business Plan: Working Plan: Almost total emphasis on details. Used continuously to review business operations and progress. Types of Business Plan
- 14. Depending on your business and your intended use, you may need a very different type of Business Plan: Presentation Plan: Emphasis on marketability of the business concept. Used to give information about the business to bankers, venture capitalists, and other external resources. Types of Business Plan
- 15. Depending on your business and your intended use, you may need a very different type of Business Plan: The What-If Plan: A plan based on the worst-case scenario that you can imagine your business surviving. A pro forma business plan. A what-if plan can help you spot the increased needs for space, equipment, personnel and other variables so you can make good decisions. Types of Business Plan
- 16. Assume that you are going to start a business Prepare a plan for the following points Identification of business opportunities Gathering information Analysis Determining Selecting Plan Activity
- 17. Recap Planning 2 Progress Check Types of Plan
Editor's Notes
- Talk about our organization
- In Business etiquette 1.6, we have covered , Planning 1 In that the following topics are covered Identification of business opportunity Gathering Information Analysis Determining Selecting the Plan. In this session Business Etiquette 1.7, we are going to cover progress Check and Types of planning for business.
- The business process check to be done with performance measurement system A system that assists organization in tracking the implementations of business strategy by comparing actual results against strategic goals and objectives
- Key performance indicator (KPI) A KPI represents a strategic objective and metric that measures performance against a goal. Distinguishing features of KPIs Strategy Targets Ranges Encodings Time frames Benchmarks The above progress check will help the business perform very well with quality standards
- Operational areas covered by driver KPIs Customer performance Service performance Sales operations Sales plan/forecast
- Balanced scorecard (BSC) A performance measurement and management methodology that helps translate an organization’s financials, customer, internal process, and learning and growth objectives and targets into a set of actionable initiatives "The Balanced Scorecard: Measures That Drive Performance”
- The drawbacks of using financial data as the core of a performance measurement: Financial measures are usually reported by organizational structures and not by the processes that produced them Financial measures are lagging indicators, telling us what happened, why not it happened or what is likely to happen in the future Financial measures are often the product of allocations that are not related to the underlying processes that generated them Financial measures are focused on the short term returns
- Good performance measures should: Be focused on key factors. Be a mix of past, present, and future. Balance the needs of all stakeholders (shareholders, employees, partners, suppliers, etc.). Start at the top and trickle down to the bottom. Have targets that are based on research and reality rather than be arbitrary.
- Performance measurement on the basis of Financial, Internal business processes, Customer and Learning & Growth towards Vision & Strategy of the business plan
- Read and explain to the students with proper examples
- Read and explain to the students with proper examples
- Types of business plan Depending on your business and your intended use, you may need a very different type of Business Plan: Mini-Plan: Less emphasis on critical details. Used to test your assumptions, concept, and measure the interest of potential investors. The mini-plan is preferred by many recipients because they can read it or download it quickly to read later on their iPhone or tablet. You include most of the same ingredients that you would in a longer plan, but you cut to the highlights while telling the same story. For a small-business venture, it’s typically all that you need. For a more complex business, you may need the longer version.
- A working plan is a tool to be used to operate your business. It has to be long on detail but may be short on presentation. As with a mini-plan, you can probably can afford a somewhat higher degree of candor and informality when preparing a working plan. In a plan you intend to present to a bank loan committee, you might describe a rival as “competing primarily on a price basis.” In a working plan, your comment about the same competitor might be “When is Jones ever going to stop this insane price-cutting?” A plan intended strictly for internal use may also omit some elements that you need not explain to yourself. Likewise, you probably don’t need to include an appendix with resumes of key executives. Nor would a working plan especially benefit from product photos. Internal policy considerations may guide the decision about whether to include or exclude certain information in a working plan. Many entrepreneurs are sensitive about employees knowing the precise salary the owner takes home from the business. To the extent such information can be left out of a working plan without compromising its utility, you can feel free to protect your privacy. This document is like an old pair of khakis you wear to the office on Saturdays or that one ancient delivery truck that never seems to break down. It’s there to be used, not admired.
- The advent of PowerPoint presentations changed the way many, if not most, plans are presented. And while the plan is shorter than its predecessors, it’s not necessarily easier to present. Many people lose sleep over an upcoming presentation, especially one that can play a vital role in the future of their business. But presenting your plan as a deck can be very powerful. Readers of a plan can’t always capture your passion for the business nor can they ask questions when you finish. But in 20 minutes, you can cover all the key points and tell your story from concept and mission statement through financial forecasts. Remember to keep your graphics uncluttered and to make comments to accentuate your ideas rather than simply reading what's in front of your audience. While a presentation plan is concise, don’t be fooled: It takes plenty of planning. The pertinent questions who, what, where, why, when and how all need to be answered.
- When you face unusual circumstances, you need a variant on the working plan. For example, you might want to prepare a contingency plan when you're seeking bank financing. A contingency plan is a plan based on the worst-case scenario that you can imagine your business surviving—loss of market share, heavy price competition, defection of a key member of your management team. A contingency plan can soothe the fears of a banker or investor by demonstrating that you have indeed considered more than a rosy scenario. Your business may be considering an acquisition, in which case a pro forma business plan (some call this a what-if plan) can help you understand what the acquisition is worth and how it might affect your core business. What if you raise prices, invest in staff training and reduce duplicative efforts? Such what-if planning doesn’t have to be as formal as a presentation plan. Perhaps you want to mull over the chances of a major expansion. A what-if plan can help you spot the increased needs for space, equipment, personnel and other variables so you can make good decisions. What sets these kinds of plans apart from the working and presentation plans is that they aren’t necessarily describing how you'll run the business. They're essentially more like an addendum to your actual business plan. If you decide to acquire that competitor or grow dramatically, you'll want to incorporate some of the thinking already invested in these special purpose plans into your primary business plan.
- The activity can be conducted for a maximum of 15 minutes. Each group is given a time of 7 minutes for the preparation . 5 minutes for presenting the plan. A person from each group may present their plan. Each group can take only 1 minute for their presentation. The trainer can take 3 minutes time for the evaluation and debriefing of how identification of a business opportunity can be successful. Students are to be divided into 5 groups. Students should consider the following points Students have to identify a potential business opportunity ( using creativity, innovative ideas as mentioned in the previous session) Trainers for clear idea, please go through the previous ppt Business etiquette 1.6 Planning 1 They have to work on information needed for starting the business. What are all the analysis they will do for starting the business. What do they determine and select plan for the business?
- Trainer to do a recap.
- Thank you slide