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Start/Change: Business Planning for Social and Sustainable Enterprise
Workshop Day 10 May 2012James Cashmore
Welcome
- 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
2. individuals currently leading start-up social enterprises or values-led business, who want to develop a plan for the first time
3. 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.
Summary of the day
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 enterprise
2. 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 group
3. How to plan - how to run a planning process and to make it work for your enterprise (30 mins) Whole group taught session
Lunch (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)
Overall flow of the day
1. A social enterprise business hub, based in central 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 group
Syndicate stream - case study business options
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
enterprise
2. 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 group
3. How to plan - how to run a planning process and to make it work for your enterprise (30 mins)◦ Whole group taught session
Lunch (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)
Overall flow of the day
Why plan?
Changes in:
◦ Broader external environment
◦ Immediate market/competitor environment
◦ Internal “environment” – within organisation, supply chain, customers, other immediate stakeholders
Business (including social business) is dynamic
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)
In a changing world, why plan?
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”
Planning as envisioning
Making the right choices, all things considered
Sets “orientation” with regard to key stakeholders:◦ Customers◦ Suppliers◦ Competitors◦ Investors
Planning as strategy
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)”
Planning as anticipation
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)?
Planning as resource allocation
Co-ordination
Minimising waste
Monitoring and tracking
Taking corrective action
Planning as action planning and progress monitoring
Common goals and purpose?
Common strategies?
Tactics understood?
Then let’s begin....(together)
Planning as an energising tool
Vision
Strategy
Anticipation
Effectiveness
Tracking
Energy
So planning is multi-faceted
There are different stakeholders to the plan…
In a social/sustainable enterprise, key stakeholders often includes people and/or the planet
Who to plan for?
Concerns differ Stakeholder balance But also stakeholder interconnectedness
What are the likely concerns of each stakeholder?
1. Shareholders vs environment2. Communities vs shareholders3. Customers vs suppliers4. Employees vs customers
What happens to an organisation when stakeholders get out of balance?
Plan needs to consider all stakeholders
But plan view needs to “sliceable” for the perspectives of different groups
Implications for planning
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 UK4. OR, a real business known to one of the group
Syndicate stream - case study business options
Same choice for the whole dayBut - it’s the overall thinking that’s important, not the business specifics
End of section
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
enterprise
2. 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 group
3. How to plan - how to run a planning process and to make it work for your enterprise (30 mins)◦ Whole group taught session
Lunch (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)
Overall flow of the day
What to plan?
Different types of plan
Enterprise vs functional/team
Strategic vs operational
What to plan
Contents of a plan
The plan as a series of components
Some suggested plan contents
Some suggested plan contents (2)
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
Key elements of a “whole business” plan
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
Key elements of a “whole business” plan
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)
The market: competitors, sales and marketing
Potential tools
1. SWOT analysis, with key implications (SWOT + “so what”)
2. Competitor analysis (e.g. Porter’s 5 forces for assessing industry competitiveness, Porter’s generic strategies for a firm or enterprise)
3. Product and market analysis (Ansoff)
The market: competitors, sales and marketing
Operations: adding value by turning inputs into outputs
Operations: the value-adding process
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
Management team/people
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
Projections
What to plan? – syndicate exercise 2
End of section
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
enterprise
2. 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 group
3. How to plan - how to run a planning process and to make it work for your enterprise (30 mins)◦ Whole group taught session
Lunch (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)
Overall flow of the day
How to plan?
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?
Plan outcomes
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?
How to plan
The process of creating the plan is as important as the plan itself
Different plan elements require different approaches and mindsets
Planning is a process of alignment and sharing
The plan needs to fit the organisational context
The plan needs to fit the organisational context
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?
How to plan
Stages of a typical planning process
1.
2.
3.
Decisions to make before you start planning
- How important is my planning process? (as opposed to the plan outcome/content). Which of the following are going to help 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?
MeMe + Senior teamEveryone
Choosing your planning process
- 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 plan you want/need- strategic- operational/tactical- financial
Metrics Tracking Accountability – linked elements How will I know if I have implemented my
plan?
Living with your plan
Case study – syndicate exercise 3
End of section
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
1. Why plan – the benefits of business planning
2. What to plan – key elements of the business plan
3. How to plan - how to run a planning process and to make it work for your enterprise
4. Case study
Summary of the day