Business Planning: Building the Plan and the Buy-in

1. 1 Business Planning: Building the Plan and the Buy-in Jane Dysart & Rebecca Jones Dysart & Jones Associates December 2003 RJRJ

2. � Dysart & Jones Associates 2 Welcome Jane Dysart and Rebecca Jones are principals of Dysart & Jones Associates (D&J). They have been librarians for more than 22 years, and, during the past 12 years their consultancy has assisted organizations in corporate, academic and public sectors. D&J is recognized as a leader in library and information service consulting, focusing on assisting information service organizations in the areas of strategic and direction planning and reviewing and recreating their services.

3. � Dysart & Jones Associates 3 Objective Discuss business planning: Its relationship with strategic planning & the critical need for both The requisite tools & processes Provide you with a starting point for doing your organization�s business plan: An overview of the planning process Tips for gaining buy-in & support RJ How to do it without the �bp� for business planning becoming bp for burn-out process!RJ How to do it without the �bp� for business planning becoming bp for burn-out process!

4. � Dysart & Jones Associates 4 Business Planning Myriad of models, processes & templates for you to choose from, most of which are very similar What�s critical is to use a process & format that matches your culture For more ideas regarding templates, look at some of the sites: http://www.businessplans.org/business.html www.bplans.com www.inc.com - Taught in a- Taught in a

5. � Dysart & Jones Associates 5 Business Planning is BIG Basic premise, without being trite: B - Business reflect that you are a client-focused business I - investors� interest initiate stakeholders interest G - growth clarify how & why you plan to grow & sustain your business, & what�s in it for your clients and stakeholders

6. � Dysart & Jones Associates 6 A business plan is simply a written document that describes the future path of a business. A good business plan explains the business concept, summarizes the objectives of the business, identifies the resources (both in terms of money and people) that will be needed by the business, describes how those resources will be obtained, and tells the reader why the business will succeed.

7. � Dysart & Jones Associates 7 The critical success factors: A written document Explains business concept Describes future path Summarizes the objectives of the business Tells the reader why the business will succeed Identifies the resources (both in terms of money and people)

8. � Dysart & Jones Associates 8 Strategic Plan or�Business Plan? What�s the relationship? Is this a chicken & egg issue? Both are dynamic, business-critical processes Long-term strategies are essential for clarifying an organization�s direction Near-term business actions are essential for implementing those strategies

9. � Dysart & Jones Associates 9 Strategic planning AND business planning? Strategic plans look ahead 3 -5 years Business plans look at 12 � 18 months Strategic plans are your roadmap to the future Business plans map your exact route, identifying mileage, stops, expected terrain and detours for the next 12 months

10. � Dysart & Jones Associates 10 Strategic planning AND business planning? �But doesn�t strategic planning take forever???� �Can�t we just do the business plan??� When you face 100 opportunities & demands for your time every day, how else are you going to decide which 20 to do? why do you need a clear strategy? Because, as 500 opportunities/day & things to do that day fly at you, you need to know which 50 you choose to do why do you need a clear strategy? Because, as 500 opportunities/day & things to do that day fly at you, you need to know which 50 you choose to do

11. � Dysart & Jones Associates 11 Business planning rationale Forces you to think about: Your parent organization or environment your fit & alignment within it Your market & specific clients Your service & product offerings & options Your growth potential, opportunities & risks why do you need a clear strategy? Because, as 500 opportunities/day & things to do that day fly at you, you need to know which 50 you choose to do why do you need a clear strategy? Because, as 500 opportunities/day & things to do that day fly at you, you need to know which 50 you choose to do

12. � Dysart & Jones Associates 12 Business planning rationale Provides a structured process in which to: Identify specific ways of securing support for your business Engage employees in planning, for informing stakeholders & clients of your plans Analyze your progress & performance

13. � Dysart & Jones Associates 13 Polling Question Does your parent organization do regular, formal strategic and business planning? Yes No Don�t know

14. � Dysart & Jones Associates 14 Best article you can read �How to Write a Great Business Plan,� Harvard Business Review, July-August, 1997, pp. 98+ Entrepreneurial mindset: Context Opportunity People Risk & Reward

15. � Dysart & Jones Associates 15 Consider reading �Business Plans: Roadmaps for Growth & Success,� Information Outlook, Dec 2000, pp.22+

16. � Dysart & Jones Associates 16 Purpose of Your Business Plan The acid test: what your investors or stakeholders want to know: Should this business or organization exist? Is there a future for it? A market? Is this market growing? Does it have viable strategies? Do the people involved know what they are doing?

17. � Dysart & Jones Associates 17 Planning Process: Phase 1�

18. � Dysart & Jones Associates 18 Planning Process: Phase 2�

19. � Dysart & Jones Associates 19 Planning Process: Phase 2�The middle

20. � Dysart & Jones Associates 20 Planning Process: Phase 3�to implementation

21. � Dysart & Jones Associates 21 Basic business planning framework Purpose: Why should the business exist? Direction: Where is it headed? What�s its potential? What are it�s strategies? Market: Who is its market? Who will �buy� the products - either with cash or support? Services & Products: What does it offer? Why would this market want these? What compels them to �buy�? Capabilities: How will it deliver these? What technologies, resources & processes must you have?

23. � Dysart & Jones Associates 23 The strawman outcome: Written document Sample #1: Summary Purpose & Strategies Client Groups Portfolio of Services Budget: Capital & Operating Personpower Appendices JD � start hereJD � start here

24. � Dysart & Jones Associates 24 The strawman outcome: Written document Sample #2: Summary The Business: Background Management Products & Services Market Production & Supply Financial Performance JDJD

25. � Dysart & Jones Associates 25 The strawman outcome: Written document Sample #3: Background & Summary Strategic Imperatives Market Positioning Offerings Organization Marketing Finances JDJD

26. � Dysart & Jones Associates 26 Q & A

27. � Dysart & Jones Associates 27 Establishing the Context Essentially, this is your preparation & background research You must establish the context in which your business is & will be operating: RJRJ

28. � Dysart & Jones Associates 28 Establishing the Context Provides insights for SWOT Internal review Internal situation Environmental Scan External factors & forecasts Strengths & Weaknesses = internal Opportunities & Threats = external RJ � go until MandateRJ � go until Mandate

29. � Dysart & Jones Associates 29 Establishing the Context: Environmental Scan �Scan the horizon� Environment in which you are/want to operate Trends regulatory, industrial, suppliers, competitors list competitors & suppliers by name size, market share, growth, track records, potential what are THEIR directions? THEIR learnings?

30. � Dysart & Jones Associates 30 Polling Question We spend much more time identifying threats rather than opportunities. Which of these opportunities do you see as something you might pursue in your organization: Delivering content via PDA�s Key player in your organization�s training/learning programs Facilitating communities of practice Embedding content into clients� workflow Involvement in new product development or R&D

31. � Dysart & Jones Associates 31 Establishing the Context: Internal Review �SW� of the SWOT - no matter how it hurts Assess your situation: How are you perceived as an information solution by your market, both current & potential client groups? What�s your market size? Market share? Which client groups are using your services? How? Which client groups are not, or show declining use? What are your staff roles, competencies, strengths? What about your technologies & facilities?

32. � Dysart & Jones Associates 32 Establishing the Context: Stakeholders Begin conversations with those who can provide a supportive �stake� & those who can put a stake through the heart of your plan Senior management & Clients: What are their plans? How can you align your business with their goals & objectives? What ideas do they have for your business?

33. � Dysart & Jones Associates 33 Establishing the Context: Ideas & Assumptions Articulate & document the base assumptions Staff: What are their ideas? Their personal goals & objectives? Blend in people�s ideas and interpretations The result

34. � Dysart & Jones Associates 34 Analyze this context: what opportunities & threats are emerging? what strengths & weaknesses should be highlighted?

36. � Dysart & Jones Associates 36 The critical success factors: A written document Explains business concept Describes future path Summarizes the objectives of the business Tells the reader why the business will succeed Identifies the resources (both in terms of money and people)

37. � Dysart & Jones Associates 37 Mandate: Business concept Mission, mandate, role, purpose What business are you in? What will be missing if this business does not exist? What gap are you filling? How does what you do benefit your organization�s clients? Use the approach that best fits your culture JD start here � go to marketJD start here � go to market

38. � Dysart & Jones Associates 38 Direction: Future Path Vision Preferred future state that is desired & compelling Recognized by many futurists Joel Barker Hamel & Prohalad What�s Wacker Leader initiated Positive & inspiring Detailed & comprehensive Shared & supported Why so important -- an analogy Great trip? How did you get ready? Scan -- found out into Decided what youwhere exactly you wanted to go and what you wanted to do Specifics of how -- care �.. Helps you make decisions along the way Recognized by many futurists Joel Barker Hamel & Prohalad What�s Wacker Leader initiated Positive & inspiring Detailed & comprehensive Shared & supported Why so important -- an analogy Great trip? How did you get ready? Scan -- found out into Decided what youwhere exactly you wanted to go and what you wanted to do Specifics of how -- care �.. Helps you make decisions along the way

39. � Dysart & Jones Associates 39 Direction: Future Path �In 2005 we will be �.� �Our clients/market will be�� �Our offerings (products & services) will be�� Ensure it is specific for everyone involved �I will be �.�

40. � Dysart & Jones Associates 40 The more explicit your strategy The easier it is to identify new opportunities & to sort among a �bewildering array of technologies,� options and needs Michael Porter, Fast Company, March 2001

41. � Dysart & Jones Associates 41 Summarizes objectives of the business Strategies are decisions Decision-making isn�t easy; requires decision criteria Decide, up front, how you will make the decision regarding your key strategies: Consensus? Veto power? What criteria will you apply to strategies? Client-driven? Global or local scope? What makes sense in your environment?

42. � Dysart & Jones Associates 42 Summarizes objectives of the business Call them what you will: Objectives, strategies, imperatives, priorities, short-term, near-term, annual strategies, objectives, goals, targets �To reach our future, we�ll be concentrating on:� 1 2 3 �This year, we will:� X Y Z

43. � Dysart & Jones Associates 43 Of course strategy is hard -- it�s about making tough choices. Michael Porter, Fast Company, March 2001

44. � Dysart & Jones Associates 44 Q & A

45. � Dysart & Jones Associates 45 Market: Tells why the business will succeed In the actual plan, this section begins to catch stakeholders� attention No organization can be all things to all people Segment your market to focus on those targets most critical to your organization RJ � start hereRJ � start here

46. � Dysart & Jones Associates 46 Market Segmentation

47. � Dysart & Jones Associates 47 Market segmentation Determine your potential market How big? Where? Who? What? Describe distinct primary & secondary target markets what do you know about how these targets? How do they work? How do/will they apply your products/services in their work? If they don�t �apply�, they won�t continue to �buy�.

49. � Dysart & Jones Associates 49 Offerings: Tells why the business will succeed Products & Services List these clearly & succinctly Describe in terms of applications & benefits, not features Explain why are these offerings compelling for these client groups Why will they purchase or support these offerings, over others?

50. � Dysart & Jones Associates 50 The critical success factors: A written document Explains business concept Describes future path Summarizes the objectives of the business Tells the reader why the business will succeed Identifies the resources (both in terms of money and people)

51. � Dysart & Jones Associates 51 Capabilities: Identifies the resources Determine the resources required to produce & deliver offerings to targeted client groups & meet specific strategies Should be the most time-consuming Opportunity to engage all concerned in determining capabilities, & gaining buy-in to strategies

52. � Dysart & Jones Associates 52 Capabilities: Identifies the resources So, what is it going to take to deliver those offerings to that market in terms of: Organizational structure? Technology? Equipment, facilities? Finances? Marketing & communication? Production & delivery processes?

53. � Dysart & Jones Associates 53 Capabilities: Identifies the resources Organizational structure: What roles or jobs will be critical? What skills & experiences do people need to successfully fulfill those roles? How should people within these roles be organized? What person power is needed? What will facilitate the best workflow & communication? What training & opportunities are needed? Recruitment? Succession planning?

54. � Dysart & Jones Associates 54 Capabilities: Identifies the resources Technology: What technology & systems do you need? Equipment, facilities: Where should people be located? Is any special type of �stuff� needed? Product/Service Development & Management: How will offerings be developed? Enhanced? Quality assured? Delivered?

55. � Dysart & Jones Associates 55 Capabilities: Identifies the resources Finances What are your revenue sources? How much is needed for operating & capital budgets? Marketing & communication What marketing channels are in place to be leveraged? How do you want to be positioned in your targets� minds?

56. � Dysart & Jones Associates 56 Gaining buy-in: rules of thumb Do it & document it The process forces you: to talk with superiors, stakeholders, staff & clients test your assumptions reflect on your true business drivers identify opportunities Business planning can�t be done in isolation

57. � Dysart & Jones Associates 57 Gaining buy-in: rules of thumb Buy-in begins at the beginning Involve staff, senior management & clients or potential clients in establishing the context Engage all or as much of your whole team as possible in the process Write an executive summary last & communicate it first Details are important but belong in the appendix

58. � Dysart & Jones Associates 58 Gaining buy-in: rules of thumb Remember that your strategies & plan will not please everyone Walk on water & someone will say that you�ve splashed them You can�t over-communicate Ask, tell, ask, tell, ask, tell Make people feel a part of the process & that they are being listened to & valued I often wonder if we size opportunities or seize opportunitiesI often wonder if we size opportunities or seize opportunities

59. � Dysart & Jones Associates 59 What�s lurking in their minds? �I just don�t think the dogs will eat the dog food.� Your back ground work come up front context setting primary market research where DO you fit in your clients� range of information solutions? what ARE your entry barriers? Why SHOULD they support you? - Your biggest fear is that mgmt won�t buy in to your business plan; if you�ve done your homework, carved your distinctive niche, selecting your primary clients, targetted them with priority services & know what you want � they�ll buy in- Your biggest fear is that mgmt won�t buy in to your business plan; if you�ve done your homework, carved your distinctive niche, selecting your primary clients, targetted them with priority services & know what you want � they�ll buy in

60. � Dysart & Jones Associates 60 What�s the worst that can happen? Not doing it Moss Kanter lists the top 10 barriers for organizations changing to e-business Guess what #8 is? �Leaders don�t know how to make choices�

61. � Dysart & Jones Associates 61 No business plan? No direction No decisions No steps to follow No path Just dangerous underbrush that will entangle you, trip you up, slow you down & eventually choke you

62. � Dysart & Jones Associates 62 Thank you Questions? Let us know how you are doing! jane@dysartjones.com rebecca@dysartjones.com

63. � Dysart & Jones Associates 63 Our next seminar is on� Date: January 23, 2004 Time: 2:00 � 3:30 p.m. ET Topic: Building Communities of Practice (COPs) for Knowledge Exchange: Roles for Information Professionals Speaker(s): Deb Wallace & Linda Pauloski