Corporate Governance - strategic business planning

Strategic business plan purpose
Benefits of a strategic business plan
What's in the strategic business plan?
How to produce the plan
Checklist

Strategic business planning is probably best described as a summary and evaluation of "where your sporting or recreation organisation wishes to go and the steps taken to get there".

Strategic business plan purpose

Planning the business of your organisation is an integral part of the role of your Board, Committee and management to provide the strategy direction necessary for long-term growth and prosperity of the organisation.

It allows you to think through all facets of your business, examining strategies and their implications. By writing down your plan you are forced to think about details and focus on the big picture rather than day to day to issues. top of page

Benefits of a strategic business plan

• It shows your stakeholders that you understand your business,
  
• It establishes a decision making framework for management,
  
• Can foster cohesion amongst members of the organisation,
  
• Sets out a clear path to help the organisation take opportunities you have identified to match goals and objectives,
  
• Allows decision-makers within your organisation to anticipate future events and to identify any pitfalls in advance,
  
• Allows you to communicate clearly and concisely the organisation performance and priority expectations to all levels of the organisation,
  
• Identifies the strengths, weaknesses, opportunities, and threats for the organisation,
  
• Can educate and motivate key personnel,
  
• Allows for more effective interaction with external bodies,
  
• It should provide information required by financial institutions when finance is being sought, and
  
• Allows potential sponsors, and government funding agencies to see that you know your business.

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What's in a strategic business plan?

There are seven (7) elements of a good strategic business plan;

1. Vision - its is essential for a business to have a vision. Without vision, the organisation has nothing to strive towards.
   
2. Commitment - the 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 indicates when particular milestones will be achieved.
   
4. Objectives - an aim or set of goals to be achieved.
   
5. Reporting - organisational reports should focus on organisational performance and trends and help in determining change.
   
6. Contingencies - every contingency cannot be anticipated, however, it is possible to account for the risks that may be faced and to work out a contingency plan.
   
7. Change - it is important that any major changes affecting the organisation are reflected within the business plan.

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How to produce the plan

Step 1: Assemble a team of key personnel and collect information

• Schedule a separate meeting and form a planning committee,
  
• Identify key people that should be involved in the planning process and workshop,
  
• Determine a planning process - the process is on-going so consider the format of the workshop, the role of the planning committee pre and post workshop,
  
• Collect and disseminate relevant information including questionnaires for the planning workshop, and
  
• Appoint an external facilitator! The process needs to be driven by an experienced facilitator preferably not involved in the organisation.

Step 2: Analysis

• The planning agenda, preparatory questionnaires and background papers should be provided to all involved in the process,
  
• Compile a statement of past outcomes and present position of the organisation including a review of the organisations mission statement and corporate values,
  
• Undertake an analysis of trends within the sport or recreation industry,
  
• Do an analysis of your client group or member needs,
  
• Undertake a unified planning approach - develop organisational values, your vision, and mission statement,
  
• Undertake a SWOT analysis, that will:-
  
• 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
  
• Develop SMART specific goals, measurable objectives and achievable strategies,
  
• Establish realistic and timely performance indicators,
  
• Draft action plans; assign responsibilities to each strategy and action, and
  
• Conduct financial analysis including forecast balance sheet, cash flow, profit and loss should be clearly documented.

Step 3: Strategy formulation
There are three parts that make up a comprehensive plan:

(1) The operational section identifies key performance areas in relation to administration, human resource management i.e employment matters, volunteers recruitment/training/maintaining, coaching and athlete development, high performance, participation - membership, social justice issues, sports science, education and training, facilities and equipment. Include others specific to your organisation.

(2) The marketing section identifies key performance areas in relation to promotions and media relations, sponsorship and fundraising, merchandising, product development and service delivery, market positioning etc.

(3) The financial section should include revenue and supply sources, financial plan - a budget for all operational and marketing items, and forecast balance sheet, cash flow, profit and loss statement.

Remember:

• It is important that stakeholder groups feel involved in the process and contribute "without fear or favour",
  
• Goals, strategies, performance indicators, strategic issues and achievements should be clearly documented and circulated to relevant people and bodies, and
  
• Keep a sense of purpose and control over the progress of your plan - the outcomes of the planning process requires on-going monitoring and review. top of page

Checklist

• Leadership from the board/committee chair is essential,
  
• Participation at all levels in the planning process is vital,
  
• The collection of data and market research is an important 1st step,
  
• SMART, goals, objectives, strategies, performance indicators, action plans and financial analysis needs to be documented in draft form and communicated for feedback,
  
• Designating responsibilities to the implementation of strategies and actions is critical,
  
• Designate realistic timelines for the implementation of action plans,
  
• Monitoring, reviewing and reporting progress and up dating the plan are considered best practice,
  
• The entire plan should be evaluated and updated annually, preferably just prior to the budget setting process. However, regular evaluation of your entire plan is always beneficial,
  
• Targets should be evaluated quarterly,
  
• Financial plans should be evaluated monthly,
  
• Action plans should be evaluated monthly, weekly and daily,
  
• The sooner you identify that you are deviating from your plan, the sooner you can take corrective action before great damage is done, and
  
• Routine time for planning and evaluation should be built into your calendar.
  

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