Total business planning

©Robere & Associates (Thailand) Ltd. 1

"Total Business Planning: "Total Business Planning: Road Map to Success"Road Map to Success"

Phase IPhase I

--IntroductionIntroduction-philosophy-philosophy-vision-vision-mission-mission

Presented by:Presented by:Paul Robere, Managing Director, Paul Robere, Managing Director, Robere & Associates (Thailand) Ltd.Robere & Associates (Thailand) Ltd.

©Robere & Associates (Thailand) Ltd.

2

If you If you failfail to to plan, you can plan, you can plan to plan to fail.fail.


Class Schedule Today:Class Schedule Today:

Class rulesClass rules

Program overviewProgram overview

ObjectivesObjectives

Introduction to business planningIntroduction to business planning

Vision, Philosophy and MissionVision, Philosophy and Mission


Class RulesClass Rules

Class starts and ends on timeClass starts and ends on time

There will be a break from 2:45 to There will be a break from 2:45 to 3:003:00(Break specification: 15 minutes +0, -15)(Break specification: 15 minutes +0, -15)

No telephones or pagers pleaseNo telephones or pagers please

No SmokingNo Smoking

Participate and Ask QuestionsParticipate and Ask Questions

There There willwill be homework be homework


A six session program:A six session program:Session 1: Session 1: 26 July 199926 July 1999 Vision, Philosophy and Mission Vision, Philosophy and Mission

Session 2:Session 2: 29 July 199929 July 1999 Strategic PlanningStrategic Planning

Session 3:Session 3: 3 August 19993 August 1999 Corporate Objectives and Corporate Objectives and

Planning Unit Planning Unit GoalsGoals

Session 4:Session 4: 9 August 19999 August 1999 Tactics, Projections and Tactics, Projections and BudgetsBudgets

Session 5:Session 5: 6 Sept 19996 Sept 1999 Coordination and Coordination and ImplementationImplementation

Session 6:Session 6: 20 Sept 199920 Sept 1999 Selling the plan to your Selling the plan to your companycompany


ObjectivesObjectives Understand the nine phases of business planning Understand the nine phases of business planning Understand how to document the business planUnderstand how to document the business plan Understand how the "Philosophy, Mission and Understand how the "Philosophy, Mission and

Strategic Plan contribute to an overall planning processStrategic Plan contribute to an overall planning process Understand how Corporate Objectives and unit goals Understand how Corporate Objectives and unit goals

work together to form our action plan for improvementwork together to form our action plan for improvement Understand how Tactics, projections and budgeting Understand how Tactics, projections and budgeting

provide us with the future planning and the budget to provide us with the future planning and the budget to ensure successensure success

Understand the Implementation and follow-up activities Understand the Implementation and follow-up activities necessary for successful planning.necessary for successful planning.


The Nine Level Planning ProcessThe Nine Level Planning ProcessLevel 1Vision

Level 1Vision

Level 2 Philosophy & Mission


Level 3Strategic Plan

(Competitive Analysis)



Level 4Corporate Objectives


Level 5Planning Unit Goals


Level 6Tactics andProjections


Level 7Budgeting

Level 7Budgeting

Level 8Coordination

Level 8Coordination

Level 9Implementation and

Follow-up


Follow-up


Session OneSession One Vision, Philosophy and MissionVision, Philosophy and Mission

A determination of the roles and A determination of the roles and responsibilities of each of the senior members responsibilities of each of the senior members of the organization. The questions of of the organization. The questions of Who, Who, What, When, Where, How LongWhat, When, Where, How Long, , are asked to are asked to specifically create an action plan for future specifically create an action plan for future business planning. Worksheets and business planning. Worksheets and exercises will help the participants determine exercises will help the participants determine corporate mission statement for their corporate mission statement for their company.company.


Who you are makes a difference Who you are makes a difference in your plan..in your plan..

sizesize

typetype

businessbusiness

marketmarket

customerscustomers


Business Planning SummaryBusiness Planning Summary

1.1. Plans developed to tell those Plans developed to tell those who do not who do not have directhave direct control over you, what you control over you, what you intend to do—possibly with help from them.intend to do—possibly with help from them.

2.2. Plans developed fort the purpose of Plans developed fort the purpose of helping helping you determineyou determine what you want to do and to what you want to do and to justify the feasibility of it.justify the feasibility of it.

3.3. Plans developed as an Plans developed as an operating operating guidelineguideline and measurement tool for and measurement tool for everyone connected with the organizationeveryone connected with the organization


Frequently Asked Questions Frequently Asked Questions about business planningabout business planning

1.1.If we don’t have a vision, philosophy, mission If we don’t have a vision, philosophy, mission or plan, what can middle managers do?or plan, what can middle managers do?

2.2.Can we have successful planning in this case?Can we have successful planning in this case?3.3.If middle managers cannot get a vision, can If middle managers cannot get a vision, can

they start at level four and call it a “plan”?they start at level four and call it a “plan”?4.4.Can each department/division have their own Can each department/division have their own

plan in addition to the company?plan in addition to the company?5.5.What happens when planning starts at the What happens when planning starts at the

bottom or middle of the organizationbottom or middle of the organization


FAQ about planning – Part 2FAQ about planning – Part 26.6. Are there other planning models and what do you Are there other planning models and what do you

do with them?do with them?7.7. My company is doing pretty well, and we have My company is doing pretty well, and we have

never had a business plan. How do I convince never had a business plan. How do I convince senior management that we need one?senior management that we need one?

8.8. Is the business plan for a “non-revenue-Is the business plan for a “non-revenue-generating” division (like Human resources) the generating” division (like Human resources) the same as for a revenue generator?same as for a revenue generator?

9.9. We don’t have time to plan. Things happen too We don’t have time to plan. Things happen too quickly and a plan would be obsolete before it quickly and a plan would be obsolete before it could be implemented. Do we really need a plan?could be implemented. Do we really need a plan?

10.10. How will business planning help us?How will business planning help us?


Business Planning TermsBusiness Planning Terms

VisionVision

PhilosophyPhilosophy

MissionMission

StatusStatus

StrategyStrategy

ObjectiveObjective

GoalGoal

TacticTactic

ProjectionProjection

Do you understandDo you understandthese terms?these terms?


Business Planning provides Business Planning provides management with a realistic and management with a realistic and systematic process.systematic process.1.1. To evaluate the present and desired status of To evaluate the present and desired status of

the companythe company

2.2. To evaluate the present and expected status To evaluate the present and expected status of the competitionof the competition

3.3. To identify assumptions on which to operateTo identify assumptions on which to operate

4.4. To reconcile conflicting viewsTo reconcile conflicting views

5.5. To arrive at agreed-upon: strategies, To arrive at agreed-upon: strategies, objectives, goals, tactics and projections.objectives, goals, tactics and projections.


A Business Plan ....A Business Plan ....

1.1. Is the written product of the business Is the written product of the business planning processplanning process

2.2. Integrates strategic, operational, and Integrates strategic, operational, and financial (budgeting) planningfinancial (budgeting) planning


Elements of a Elements of a Good Plan!Good Plan!May 25, 1961, US President May 25, 1961, US President

John F. Kennedy said: John F. Kennedy said:

““I believe this nation should I believe this nation should commit itself to achieve the commit itself to achieve the goal, before this decade is goal, before this decade is out, of landing a man on the out, of landing a man on the moon and returning him moon and returning him safely to Earth.”safely to Earth.”


Elements defined:Elements defined: Vision: Vision: “A man on the moon....”“A man on the moon....” Commitment: Commitment: “And returning him safely...“And returning him safely... Timelines: Timelines: “Before this decade is out...”“Before this decade is out...” Phasing: Phasing: We had Mercury, Gemini, and We had Mercury, Gemini, and

Apollo...Apollo... Contingencies: Contingencies: Whatever can go wrong, Whatever can go wrong,

will, and at the worst time.will, and at the worst time. Reporting: Reporting: “One small step for man, one “One small step for man, one

giant leap for mankind.”giant leap for mankind.” Change: Plans that can and do change will Change: Plans that can and do change will

last...last...


What is your plan?What is your plan?

Team Exercise: 30 MinutesTeam Exercise: 30 Minutes

Using the Appendix form 001, each team Using the Appendix form 001, each team will fill out that they think the various will fill out that they think the various elements of elements of vision, commitment, vision, commitment, timelines, phasing, contingencies, timelines, phasing, contingencies, reporting and change to be.reporting and change to be.

Have your team combine your answers and Have your team combine your answers and put them on the transparency provided.put them on the transparency provided.


Level One: Vision Level One: Vision (use Appendix 0101 to take notes)(use Appendix 0101 to take notes)

WhoWho: The Top: The Top

WhatWhat: A picture of the future: A picture of the future

WhenWhen: Never ending: Never ending

WhereWhere: Go away...far, far away...: Go away...far, far away...

How LongHow Long: For some...never. Work on : For some...never. Work on it daily, all the time. Keep it always a it daily, all the time. Keep it always a top agenda.top agenda.


Planning Process Assumptions for Planning Process Assumptions for your visionyour vision

Probability of AssumptionProbability of Assumption

AssumptionAssumption Being ViolatedBeing Violated Impact if Assumption Violated Impact if Assumption Violated

1. The company has the opportunity for new customer

2. Raw materials will remain available at about current level.

1. Low

2. Low

1. Other options for new customer base is available. Possible off-shore marketing considerations

2. Alternate inputs are available that will not change product from customer view


"Total Business Planning: "Total Business Planning: Road Map to Success"Road Map to Success"

Phase IPhase I

--IntroductionIntroduction-philosophy-philosophy-vision-vision-mission-mission

Presented by:Presented by:Paul Robere, Managing Director, Paul Robere, Managing Director, Robere & Associates (Thailand) Ltd.Robere & Associates (Thailand) Ltd.


The Nine Level Planning ProcessThe Nine Level Planning ProcessLevel 1Vision

Level 1Vision













Level 7Budgeting

Level 7Budgeting

Level 8Coordination

Level 8Coordination


Follow-up


Follow-up


What do you want from this What do you want from this class?class?

1.1. As a team, discuss the As a team, discuss the important items that important items that you would like to learn you would like to learn from this class. from this class.

2.2. What questions to you What questions to you have that you want have that you want answered?answered?


Our Plan (Recommended)Our Plan (Recommended)

1.1. Create a companyCreate a company2.2. Establish a productEstablish a product3.3. Create a “Business Plan” Create a “Business Plan”

based on assumptionsbased on assumptions4.4. Follow the steps in the Follow the steps in the

development of the plandevelopment of the plan5.5. Finish with a completed Finish with a completed

plan to use as a reference plan to use as a reference or for our future use.or for our future use.


Level Two: Philosophy and Level Two: Philosophy and Mission Mission (use Appendix 0201 to take notes)(use Appendix 0201 to take notes)

WhoWho: The Senior team: The Senior teamWhatWhat: A statement of the : A statement of the philosophy and mission of the philosophy and mission of the organizationorganizationWhenWhen: Must be done first. Normally : Must be done first. Normally about 6 months before planabout 6 months before planWhereWhere: Go away...far, far : Go away...far, far away...from the officeaway...from the officeHow LongHow Long: Should be done within : Should be done within two hard days of concentrated work.two hard days of concentrated work.


What is a Philosophy?What is a Philosophy?

Our Our philosophy philosophy is the is the set of basic beliefs set of basic beliefs which establish the which establish the parameters for our parameters for our business and its business and its personnel. It is a personnel. It is a statement of what statement of what we do and what we we do and what we do not do.do not do.


Business Philosophies (1)Business Philosophies (1)

Integrity:Integrity:We We believebelieve integrity is the integrity is the cornerstone of all our business cornerstone of all our business relationships; relationships; thereforetherefore, we will , we will expect all of our employees to be expect all of our employees to be honest and forthright with our honest and forthright with our customers, our vendors, and with all customers, our vendors, and with all others whom they may contact in the others whom they may contact in the name of the businessname of the business



Management:Management:We We believebelieve management is the art of management is the art of leading people to accomplish stated leading people to accomplish stated objectives; objectives; thereforetherefore, leadership , leadership qualities and demonstrated ability to qualities and demonstrated ability to accomplish objectives will be primary accomplish objectives will be primary criteria by which we select and criteria by which we select and evaluate managersevaluate managers


Business Philosophies (3)Business Philosophies (3)PlanningPlanning

We We believebelieve planning is the art of preparing planning is the art of preparing for change; for change; thereforetherefore, we will use planning , we will use planning as a management tool to keep us prepared as a management tool to keep us prepared for those changes that must come.for those changes that must come.

CustomersCustomersWe We believebelieve that nothing happens until you that nothing happens until you make a sale, and sales are made only to make a sale, and sales are made only to customers; customers; thereforetherefore, we will place the , we will place the satisfaction of our customers above every satisfaction of our customers above every other business consideration.other business consideration.



Employees:Employees:We believe well-trained, highly motivated employees are the most important means of serving our customers; therefore, we will select, train, and reward employees who place customer satisfaction first.

Profit:Profit:We We believebelieve our ability to properly service our our ability to properly service our customers depends on long-term profitability; customers depends on long-term profitability; thereforetherefore, we will manage our business to , we will manage our business to create a responsible return on assets.create a responsible return on assets.



Growth:Growth:We We believebelieve growth is a logical consequence for growth is a logical consequence for a well-managed company; a well-managed company; thereforetherefore, we will , we will evaluate management on the profitable, evaluate management on the profitable, orderly, controlled growth the company orderly, controlled growth the company sustains.sustains.

Community:Community:We We believebelieve a profitable, growing business a profitable, growing business should, from its abundance, invest in the should, from its abundance, invest in the community that sustains it; community that sustains it; thereforetherefore, we will , we will individually and corporately invest in selected individually and corporately invest in selected philanthropic activities of our community.philanthropic activities of our community.


What do What do you you believe?believe?

Team Activity: 45 minutesTeam Activity: 45 minutes

Using the form on Appendix 0203, Using the form on Appendix 0203, rank the elements, and then rank the elements, and then compose the guiding principles to compose the guiding principles to sustain each one.sustain each one.


What do we do best?What do we do best?

Example:Example:Airlines move Airlines move people and things people and things from airport to from airport to airport. FedEx airport. FedEx moves packages moves packages from where they from where they are to where you are to where you want them.want them.


What Need do we Meet?What Need do we Meet?

Example:Example:The The endend was light was light control. The control. The meansmeans was curtains. It is was curtains. It is important to important to understand customer understand customer needs from the needs from the endsends, , not only the not only the meansmeans, , point of view.point of view.


Whose need do we meet?Whose need do we meet?

Example:Example:At an Amusement At an Amusement park, the owners park, the owners realized that realized that mothersmothers, , not not kidskids, , had the had the needneed. . Who Who purchases, or the purchases, or the most visible most visible customer, may not customer, may not be the real buying be the real buying influenceinfluence


What Business are We In.What Business are We In.

Team Exercise: 45 Minutes Team Exercise: 45 Minutes Using the Appendix Form A0207 list:Using the Appendix Form A0207 list:• What We do best?What We do best?• What need do we meet?What need do we meet?• Whose need do we meet?Whose need do we meet?• What business are we in?What business are we in?

meet the needs of our clientmeet the needs of our client


End of Session One:End of Session One:

What questions do What questions do you have?you have?What are we doing to What are we doing to do for next time?do for next time?What did we learn What did we learn today?today?What did I enjoy What did I enjoy today?today?What do we need to What do we need to improve for next time?improve for next time?

Total business planning

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