BUSINESS PLAN OUTLINE ONLINE

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					                                          The strategic
                                          business plan
                  A guide to preparation for not-for-profit
                     sport and recreation organisations




             Prepared by:                                                                       Industry Consultant
                                                                                                NSW Department of Sport and
                                                                                                Recreation
                                                                                                Industry Development Unit
                                                                                                Locked Bag 1422
                                                                                                Concord West NSW 2138

                                                                                                Tel: 02 9006 3700



                                                                                                                            October 2001




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             Contents

             1)          Introduction and Aim

             2)          The Elements of a Strategic Business Plan

             3)          Outline of Contents

             4)          The Body of the Strategic Business Plan

                                     i.          The Management Plan/Section

                                     ii.         The Marketing Plan/Section

                                     iii.        The Operational Plan/Section

                                     iv.         The Financial Plan/Section



             5)          The Strategic Business Plan – A Self Paced Activity For Your Board Or Committee

             6)          Understanding the Environment – S.W.O.T. Analysis

             7)          Evaluation

             8)          Glossary of Terms

             9)          Sample Draft Strategic Business Plan




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             1)          INTRODUCTION AND AIM

             The following guide has been produced to assist your sporting or recreation organisation in
             the preparation of its Strategic Business Plan.

             It has been formulated to provide you with a step by step process to be used as an aid when
             developing your plan in conjunction with the fact sheets and funding guidelines.

             It also includes a template of a Strategic Business Plan which can be customised to suit the
             needs of your individual organisation.

             The aim being that, after having worked through this guide, your volunteer board, or
             committee, with your paid or volunteer managers should be able to:


                        Understand the role of the Strategic Business Plan

                        List several reasons for developing a Strategic Business Plan

                        Identify sources where you can get help in developing your Strategic Business Plan

                        Identify the type of information to include in the Strategic Business Plan

                        Prepare an outline for a Strategic Business Plan.




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             2)          THE ELEMENTS OF A STRATEGIC BUSINESS PLAN

             There are seven (7) key elements of a good Strategic Business Plan for a not-for-profit
             sporting and recreation organisation:


             1. Vision –                         it is essential for a your organisation have a vision. Without vision, a
                                                 your organisation may have nothing to strive towards.

             2. Commitment –                     every 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 indicate when
                                                 particular milestones will be achieved.

             4. Objectives –                     an aim or set of goals to be achieved.


             5. Reporting –                      organisational reports should focus on performance and trends and
                                                 help in determining change.

             6. Contingencies – every set-back cannot be anticipated however, it is possible
                                 to account for the risks that may be faced and work out a contingency
                                plan. It is also important to learn from mistakes, and the Strategic
                                Business Plan needs to be changed to reflect the new learning.

             7. Change –                         it is important that any major changes affecting the organisation are
                                                 reflected within the Strategic Business Plan. A Strategic Business Plan
                                                 is an evolving document, and it will change as a business develops.




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             3)          OUTLINE OF CONTENTS

             The contents of a Strategic Business Plan for sporting and recreation organisations will vary
             according to:

                  The size of the organisation;
                  The structure of the organisation;
                  The impact of the business environment on which the organisation operates;
                  The number of personnel involved in the conduct of the business of the organisation;
                  The influence of key personnel;
                  The influence of internal and external forces including: member and government;
                  The commitment of the organisation to an on-going planning process.

             There are typically up to fourteen (14) sections that you could chose to include in your
             Strategic Business Plan, much will depend upon the size and nature of your sporting or
             recreation organisation.

             If your organisation is very small you may wish to exclude a particular section (s). It is
             entirely up to you. However, those sections highlighted in bold should be considered for
             inclusion.

             The fourteen (14) sections include:

             1. A cover sheet
             2. A signature page
             3. An executive summary
             4. A table of contents
             5. A list of major assumptions
             6. A list of critical success factors and issues facing your organisation
             7. Organisation history
             8. The vision of the organisation
             9. A list of goals and objectives over the long term
             10. Tables identifying key performance areas, goals, objectives, strategies, action plans
             11. Management structure
             12. SWOT analysis
             13. Financial data
             14. Appendices

             Detail to include in each of the above sections is as follows:

             1) A cover sheet should include:

                   a)    Name of the organisation and logo (of applicable)
                   b)    Organisations address
                   c)    Contact information – telephone, facsimile and e-mail
                   d)    Principal i.e. the directors
                   e)    Date

             2) A signature page – is where directors or key participants to the plan sign their
                commitment to the ownership of your plan.


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             3) Executive summary

                   Provides an overview of the sport and recreation organisations business, briefly mentions
                   major events and identifies the strategic direction of the organisation over the time frame
                   of the plan.

             4) Table of contents – needs to be accurate to reflect the details of the document to the
                reader.

             5) Major assumptions – all strategic business plans should identify assumptions made,
                which in turn are used to determine goals, objectives, strategies and action(s) plans.
                Assumptions that are central to the success of the plan need to be clearly stated and what
                contingencies identify that will be implemented if an assumption (s) is verified.

             6) A list of critical success factors and issues facing your organisation – these are helpful
                both to the organisation and to the reader in identifying those issues that may be peculiar
                to your organisation but which are critical to the success of the plan.

             7) Organisation history – details a history of milestones, past successes in meeting
                objectives of the organisation.

             8) The vision of the organisation – refers to the philosophies and the mission statement. The
                philosophies are the beliefs that shape the culture of the organisation and its people. The
                aspects of the philosophy may include:

                   a)    Members
                   b)    Planning
                   c)    Commitment
                   d)    Integrity and ethics
                   e)    Volunteers
                   f)    Management
                   g)    Growth and participation.

                   The mission statement refers to what your organisation hopes to achieve.

             9) A list of goals and objectives over the long term:

                   a) Goals can be best described as the „destination points” being aimed for. They act as
                      the reference guide for the decision making. They give you a clear picture of where
                      your organisation wishes to be in the long term.
                   b) Whilst, objectives are specific and represent shorter term „measuring posts‟ for the
                      organisation progressing towards achieving the goals.

             10) Tables identifying key performance areas, goals, objectives, strategies, action plans;
                 The plan needs to be set out in such a way that makes it logical and easy to read and
                 understand. Tables provide a way to achieve this – see the Strategic Business Plan
                 template.




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             11) Management structure; - this section can be in the front part of the plan or, in the
                 addendum. It contains an organisational chart showing the corporate governance structure
                 of the organisation – i.e relationship between board/committees/management in larger
                 organisations. Whilst also identifying key people in your organisation.

             12) SWOT analysis - see The Marketing Plan/Section and „Understanding the environment‟.

             13) Financial data – see The Financial Plan/Section

             14) Appendices.- see next section




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             4)          THE BODY OF THE STRATEGIC BUSINESS PLAN

             This can then be divided into four distinct sections incorporating all of the above fourteen
             items as follows:

             i.          The Management Plan/Section

             Describes the business of the sporting or recreation organisation and includes:

                        Cover sheet title and time frame
                         Example: NSW Widgets Strategic Business Plan 1999-2003

                        Table of Contents

                        A statement of purpose

                        An Executive summary that, in a nutshell, reports past achievements, outlines future
                         challenges and performance targets

                        A signature page for decision-makers and those other responsible for implementation
                         and review to sign

                        A mission statement; that focuses the organisation to put its goals into writing so
                         that they can be reviewed and analysed periodically

                        A strong unified sense of direction incorporating vision of both a State and National
                         Example: a vision statement

                        An organisational chart
                         Example: Management structure etc,. Could be included as an addendum

                        Organisational values; (if appropriate)
                         Example: what are the internal and external values of NSW Widgets.


             ii.         The Marketing Plan/Section

             Details a market analysis and statement of issues which are facing the organisation and also
             identifies key performance areas in relation to promotions and media relations, sponsorship
             and fundraising, merchandising, product development and service delivery, market
             positioning etc.


             Marketing plays a vital role in any successful organisation. How well you market your
             organisation, along with a few other considerations, will ultimately determine your degree of
             success or failure. The key element of a successful marketing plan is to know your members
             – their likes, dislikes, expectations. By identifying these factors, you can develop a
             marketing strategy that will allow you to arouse and fulfil their needs.




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             Identify your members by their age, sex, income, educational level and residence.

             Develop marketing strategies by answering these questions below:

                    1.   Who are your members? Define your target market(s).
                    2.   Are your markets growing? Steady? Declining?
                    3.   What membership pricing strategies have you devised?
                    4.   What will attract prospective sponsors to your organisation?
                    5.   What competitors does my organisation have that will impact on membership
                         growth?

             Remember to:
              Include the key performance areas
              Identify realistic and achievable goals and objectives
              Establish strategies
              Develop detailed action plans
              Formulate time lines
              Assign responsibility to strategies and actions steps
              Forecast budgeted cost
              Identify performance outcomes

             Much of this information can be included in the work sheets as shown in the template.


             iii.        The Operational Plan/Section

             Identifies key performance areas in relation to administration and human resource
             management which includes:

                   Employment matters
                   Volunteers recruitment/training/maintaining
                   Coaching and athlete development
                   Participation – membership, social justice issues – gender equity, disadvantaged groups
                   Sports science
                   Education and training
                   Facilities and equipment

             Much of this information can also be included in the work sheets as shown in the template.

             iv.         The Financial Plan/Section

             Includes revenue and supply sources, financial plan - a budget for all operational and
             marketing, forecast balance sheet, cash flow, profit and loss statement.

             A. Financial Data
                   Balance Sheet
                   Pro-forma income projections (profit & loss statements)
                   Three year summary
                   Detail by month, first year


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                              Detail by quarters, second and third years
                              Assumptions upon which projections were based
                              Pro-forma cash flow

             B.      Supporting Documents (FOR banking institutions ONLY if requiring loans)

                              Tax returns of principals for last three years
                              Copy of proposed lease or purchase agreement for building space
                              Copy of licenses and other legal document
                              Copy of resumes of all principals
                              Copies of letters of intent from suppliers, etc.

             Remember:


                          List a summary of performance measures;
                          Details financial plan/budgets/targets/;
                          Review and evaluation.
                          Strategic Business Plans should be a user friendly/reader friendly document, which
                           drives the business. It should be a useful management tool used by the organisation
                           to identify its future direction and measure its performance.
                          All Strategic directions should be clearly defined, outcomes focussed and
                           measurable.
                          The performance of the organisations using the above systems can be reviewed
                           weekly, monthly, quarterly, annually.


             Sound financial management is one of the best ways for your organisation to remain
             profitable and solvent.

             How well you manage the finances of your organisation is the cornerstone of every
             successful business venture.

             To effectively manage your finances, plan a sound, realistic budget by determining the actual
             amount of money needed to operate your organisation (operating costs).

             The operating budget will reflect your priorities in terms of how you spend your money, the
             expenses you will incur and how you will meet those expenses (income).
             It should allow for the following expenses.

             Operating Budget:
                Personnel
                Insurance
                Rent
                Depreciation
                Loan payments
                Advertising/ promotions
                Legal/ accounting
                Miscellaneous expenses



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                        Supplies
                        Payroll expenses
                        Salaries/ wages
                        Utilities
                        Dues/ subscriptions/ fees
                        Taxes GST (if applicable)
                        Superannuation
                        Repairs/ maintenance

             The financial section of your Strategic Business Plan should include any loan applications
             you have filed, a capital equipment and supply list, balance sheet, breakeven analysis, pro-
             forma income projections (profit and loss statement) and pro-forma cash flow.

             The income statement and cash flow projections should include a three-year summary, detail
             by month for the first year, and detail by quarter for the second and third years.

             Your financial adviser will assist your board or committee in determining the accounting
             system that best suits your organisation.

             Questions that you will need to consider are:
                 What type of accounting system will you use?
                 What financial projections will you need to include in your Strategic Business Plan?

             Your plan should include an explanation of all projections. Unless your are thoroughly
             familiar with financial statements, get help in preparing cash flow and income statements and
             your balance sheet.

             Your aim is not to become a financial wizard, but to understand the financial tools well
             enough to gain their benefits. Your accountant or financial adviser can help you accomplish
             this goal.

             Sample balance sheets, income projections (profit and loss statements) and cash flow
             statements are included in the Strategic Business Plan in this guide.

             For a detailed explanation of these and other more complex financial concepts, seek advise
             from your financial adviser or accountant.


             5)          THE STRATEGIC BUSINESS PLAN – A SELF PACED ACTIVITY FOR
                         YOUR BOARD OR COMMITTEE

             Answer these questions:

                  Briefly describe what goes into a Strategic Business Plan.
                  Why is a Strategic Business Plan important for your organisation?
                  Identify advantages of developing the marketing, management, operational and
                   financial management goals, objectives and strategies.
                  List financial projections included in the financial management plan.
                  Sketch an outline for a Strategic Business Plan.



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              What sort of information do you think is relevant for the strategic business plan?
             
             
             Once you have a clearly understood and committed mission statement, then all actions and
             decisions of the organisation can be measured against that mission statement.

             “An organisation mission statement – one that truly reflects the deep shared vision and
             values of everyone within the organisation – creates a great unity and tremendous
             commitment. It creates in people‟s hearts and minds a frame of reference they have bought
             into the changeless core of what the business is about.” (S. Covey, The seven habits of
             highly effective people, page 143)
             
              Our Mission
             
             Where we are now
             Where do you think your organisation is now? How would you describe in a few sentences
             to someone who knows nothing of your business what it is about?

             Our mission encapsulates

              the overall objective of our organisation
              our unanimity of purpose
              attitudes and outlook
              reason our organisation exists
              our philosophy and purpose
             
             Understanding the uniqueness of our organisation

             It is important that we have some understanding of the things which help to set our
             organisation apart from other sporting or recreation organisations.

             Some of these things may be positive and others may be negative and we will want to plan to
             change those.

             These factors will help formulate our mission and our vision.

             Make some notes on the following:


             The culture of your organisation.




             The organisational norms




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             What the organisation stands for



             Our vision

             The vision is our determination of “where we want to be”The vision is a statement of our
             future. It sets the objectives to motivate our focused efforts.

             List some of the general things you would like your organisation to achieve in the future.




             From determining our mission and our vision we can then move on to forming a mission
             statement.
             Many organisations have a central mission statement, then each department may write their
             own individual mission statement in keeping with that central mission statement.




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             6)          UNDERSTANDING THE ENVIRONMENT

             The next thing to do before actually writing your plan is to understand the environment in
             which the organisation operates. One technique for doing this is called SWOT analysis.

             S.W.O.T ANALYSIS

             Step One:     The Evaluation and Review of the S.W.O.T Analysis
                  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

             Environmental Analysis Worksheet

                                                 Strengths                                                         Weaknesses




                                              Opportunities                                                           Threats




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             7)          EVALUATION

             The business planning process is ongoing. Although the plan is prepared with a three to five
             year period in mind, it must be updated on a yearly basis. Once you have prepared or
             updated your plan for the year, it should become your organisation‟s blueprint – a document
             which should be referred to regularly for guidance and direction.

             As the evaluation table shows, parts of the business plan need to be assessed and updated
             frequently, but the entire business plan should be reviewed and updated annually. The
             annual evaluation requires that each part of the business plan be reviewed, starting with the
             values, vision and mission statement, followed by environmental analysis, the strategy, and
             so on. You may find that your vision and mission statements don‟t change much, and that
             your strategy also remains pretty much the same, or you might decide that the strategy which
             you implemented one year is not applicable for the next year.

             The best time for this evaluation is just prior to the budget setting process, so that it runs
             concurrently with the financial year.

             Although an annual evaluation process is recommended (where you might find you
             completely rewrite your business plan), this does not exclude regular evaluation of each stage
             of the planning process. You need to be constantly alert to changes which may affect your
             organisation. For example, a recent change in the external environment might pre-empt a
             particular strategy, forcing you to alter your strategy so that you can take advantage of the
             new environmental conditions.

             Financial plans need to be prepared annually and evaluated monthly. You should have
             produced financial statements by the second week of the next month, ready for analysis. You
             need to have your finger constantly on the pulse of the organisation, paying particular
             attention to cashflow. If the warning bells are ringing, take action NOW.

             Targets and action plans need to be evaluated more frequently. Targets should be reviewed
             quarterly, and action plans monthly, weekly and even daily (by the person carrying them out).
             By setting targets and action plans, you are in effect breaking down your organisation‟s
             vision into more obtainable, measurable, short-term parts. By regularly evaluating your
             targets and action plans, your are ensuring progress toward that vision. It is far easier to
             correct performance early in the process, rather than a year down the line when the damage is
             almost irreparable.

              Steps In The Evaluation Process

             1.          Annually evaluate your entire business plan, looking at each part of the plan in detail,
                         and making the appropriate changes.

             2.          Quarterly evaluate the targets of your key people at progress review meetings. Do
                         this by looking at the targets and action plans that have been set, and assess whether
                         the targets were achieved. If targets were not achieved, analyse why not. Then
                         develop a new plan of action or alter the existing one to hold operations in line, or to
                         return operations to an in-line state after deviation.




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             3.          Update and evaluate your financial plans monthly by comparing planned against
                         actual. If things are not going as you had hoped, analyse why and take corrective
                         action immediately.

             Constantly evaluate your action plans for your own targets, preferably on a daily basis. The
             sooner you realise that you are going off track (or can‟t achieve a target), the better.

             Summary

                        The business planning process is ongoing.

                        The entire business plan should be evaluated and updated annually, preferably just
                         prior to the budget setting process. However, regular evaluation of your entire
                         business 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 better for you can
                         take corrective action before great damage is done.

                        Routine time for planning and evaluation should be built into your calendar.

             The table below set outs a review timetable for State sporting and recreation organisations

       Strategic Business                   Update                                           Total Review                                 Responsibility
           Planning
   Values, Vision, Mission                  Six-monthly, but only if                             Annually                                Board/management
                                                  required
   Environmental Analysis                            Six-monthly                                 Annually                                Board/management
                                                                                                                                            Committees
     Strategy Formulation                   Six-monthly, but only if                             Annually                                Board/management
                                                  required                                                                                  Committees

               Targets                                  Monthly                       Quarterly and Annually                             Board/management
                                                                                                                                            Committees

          Financial Plans                               Monthly                                  Annually                                Board/management
                                                                                                                                            Committees
   Resource Requirements                            Weekly, daily                                 Monthly                                Board/management
    and Action Planning                                                                                                                     Committees
      Entire Business Plan                             Annually                                  Annually                                Board/management
                                                                                                                                            Committees




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             8)          GLOSSARY OF TERMS


             GOAL - WHAT IS A GOAL?

             A Goal is the overall organisational aspirations which the organisation strives to achieve.
             While usually difficult to measure and quantify, they set the direction of the organisation and
             support the mission statement

             OBJECTIVE - WHAT IS AN OBJECTIVE?

             An Objective is a set of clear statements of obtainable results or ends within a defined term.
             They are expressed as SMART - specific, measurable, achievable, realistic, and time bound,
             and are consistent with the organisations goals. A good objective will have its own
             performance indicators.

             STRATEGIES - WHAT ARE STRATEGIES?

             Strategies are activities which are implemented towards the achievement of stated
             measurable objectives. They describe the actions that need to be taken by the organisation in
             order to achieve each objective.

             OUTCOMES - WHAT ARE OUTCOMES?

             In the context of the Business Plan, each strategy as an OUTCOME(S) by which the
             consequence of the organisations goals, objectives and strategies can be measured. Note:
             The Outcomes must be measurable to indicate the success of implementing the plan.

             MISSION STATEMENT and CORPORATE GOALS

             Is a statement of your organisations purpose and what it wants to achieve in the larger
             environment. These are normally specified in the Constitution.

             KEY PERFORMANCE AREAS

             The specific areas of operation which the organisation wishes to categorise its desired
             achievements..FOCUS AREAS are those specific operational sub - areas.




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             SAMPLE
             STRATEGIC
             BUSINESS PLAN
             Change this strategic business plan to suit the requirements of your sporting or recreation
             organisation

             Remember!

             What goes in a Strategic Business Plan for sporting and recreation will vary according to:

                  The size of the organisation

                  The structure of the organisation

                  The impact of the business environment on which the organisation operates

                  The number of personnel involved in the conduct of the business of the organisation

                  The influence of key personnel

                  The influence of internal and external forces including: member and government

             And - the commitment of the organisation to an on-going planning process.




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                                                                                     DRAFT MK 1 – DATE: _________________

                                                                                     NAME OF THE ORGANISATION Inc.




                               STRATEGIC BUSINESS
                                            PLAN
                                                                                                                 Period of the plan




             Business Contact Details:
             Telephone:
             Facsimile:
             Website:

             Principles:
             Name:                                                                          Telephone
             President
             Executive Director

             Date of Plan:




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             It is always important that key personnel are committed to the plan. Empower them by
             having them have direct input into the planning process and signing this signature page
             once the contents are agreed upon.

             Signature Page
             The Strategic Business Plan has been developed at length and agreed to and signed off by the
             following stakeholders of the name of the organisation:

             The Board:                                                          Portfolio
             1. Name:                                                     Position: President (Director)
             2. Name:                                                           Position: (Director)
             3. Name:                                                           Position: (Director)
             4. Name:                                                           Position: (Director)
             5. Name:                                                           Position: (Director)
             6. Name:                                                           Position: (Director)

             Management                                                         Position
             1. Name:
             2. Name:
             3. Name:
             4. Name:
             5. Name:
             6. Name:

             The Council (IF APPLICABLE)
             1. Name:                                                                 Councilor representing:
             2. Name:                                                                 Councilor representing:
             3. Name:                                                                 Councilor representing:
             4. Name:                                                                 Councilor representing:
             5. Name:                                                                 Councilor representing:
             6. Name:                                                                 Councilor representing:


             Date:




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             1. Executive Summary
             The Strategic Business Plan will play an integral role in managing the Association and
             achieving its goals over the next three (3, 4, or 5) years.

             It will be used extensively by the Board

             When necessary, it will be modified to reflect the ongoing development and needs of the
             sport/association.

             The Executive Summary can outline past achievements, future goals/objectives, and
             recommendations




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              Table of Contents
             3.                 Issues facing the Sport

             4.                 Environmental and marketing analysis

             5.                 Short and long term objectives and Key performance areas

             6.                 Strategic Business Plan (3, 4, or 5 yr period)
                                List your Key Performance Areas:


             7.                 Financial Assessment

             8.                 Monitor and Review

             9.                 Management Structure

             10.                Organisational Flowchart

             11.                Appendices including a history of your organisation




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             2. Mission Statement
             A clear statement of what the organisation does




             Corporate Vision
             Is a vivid picture of where the members want the organisation to be




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             3. Issues facing the organisation
              The Name of the organisation is faced with a number of issues that are likely to have a direct
              impact on the implementation of the plan. These issues have been addressed in this Strategic
              Business Plan.
             SAMPLE ISSUES SHOWN BELOW
             Issues
              Decrease levels of funding from sources such as sponsorship, fundraising, government
              Issues corporate governance – role of the board, regions, committees, directors,
                relationship between Executive and management/staff, reporting lines between
                Executive/management/committees.
              Servicing of member organisations
              Implementation of education and training programs
              The decline in volunteers
              Lack of a unified approach to strategic planning and co-ordination
              Regional development
              Allocation and management of human resources
              Marketing and promotion of Sports Council to corporates, government, and the general
                community
              SAMPLE below

              OUTCOMES
              The following OUTCOMES reflect what the sport wants to achieve over the next three (3)
              years.
              To;
               Financial stability and growth
               The sport to have strong market position
               Recognised as leader in best governance and management
               Increase support to member organisations
               Member organisations to implement the strategies of the Association
               Increase levels of sponsorship and fundraising
               Effective Governance and management practices in place
               Effective volunteer management plan
               Athlete membership growth and participation
               Effective sport education programs
               Greater level of support from sporting organisations




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             4. Environmental and Marketing Analysis
             The SWOT analysis has two targets:

             1.          to help identify where the Sport is NOW? and,

             2.          to prepare the Sport to develop a strategy that will utilise the organisations strengths,
                         manages its weaknesses, take advantage of opportunities, and minimise the impact of
                         those threats that become real.

             The Goals, objectives and strategies in this Strategic Business Plan aim to bridge the gap
             between where the (name of the organisation) is NOW, and the vision of where the
             organisation wants to be in the future.

             Environmental Analysis
             Example shown below
                                                      Strengths                                                     Weaknesses

                                Our STRENGTHS in the internal environment;                   Our WEAKNESSES in the internal environment;
                                 People – Executive Officer and staff                        Lack of funds to reach all areas to broaden
                                 Venue                                                          participation
                                 Skills and expertise                                        Not enough staff power
                                 Events                                                      Not enough volunteers
                                 Athletes                                                    Ineffective structure
                                 Training and development                                    Ineffective governance and management
                                                                                                 practices
                                                                                              Ineffective Regions
                                                                                              Poor strategic direction, planning and review
                                                                                              Communication
                                                                                              Internal conflicts

                                                    Opportunities                                                      Threats


                                Our OPPORTUNITIES in the external                            THREATS in the external environment;
                                environment;                                                  Lack of revenue;
                                 Increase in athlete membership                              Declining membership
                                 Marketing and promotion                                     Decline in corporate support
                                 Strategic alliances with other                              Rising costs
                                     Organisations including entrepreneurs,                   Market presence
                                     government;
                                 Current venue to raise revenue
                                 Products and services that can promote
                                     revenue
                                 Olympic legacy
                                 Increase support from government
                                 Internet, promoting the Sport




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             5. Short and long term objectives and key
                   performance areas

       Objectives
       Key performance areas
         Key Performance Areas are those general areas of operation within an organisation e.g. Marketing,
         where a desired outcome is required over the period of the Strategic Business Plan and beyond.

         Focus areas are those specific operational areas within a key performance area. For example, a focus
         area within the KPA of Marketing would be sponsorships.

         Name of the organisation have identified the following Key Performance Areas (KPA‟s) and focus
         areas as follows:-

         Examples shown below:
         KPA                                                  Focus areas
         Management Plan                                      Administration, Management operations, Corporate Governance
                                                              Structure, Management practices and improvement programs,
                                                              education for directors/committee members, quality management
                                                              improvement programs, human resources, management volunteers,
                                                              paid staff

         Marketing Plan                                       Sponsorships, fundraising, merchandising, promotions,
                                                              communications, Member services support and assistance

         Operational Plan                                     Participation Development, Athlete membership education
                                                              junior/schools, Events Conduct and management of all local,
                                                              regional, and state events, facilities, equipment, sport science,
                                                              high performance – elite and non elite programs, disadvantaged
                                                              groups, Training and education, Athlete Development,
                                                              Coaching, Accreditation, non-accreditation, elite programs

         Financial Plan                                      Forecast cash-flow, balance sheet, profit and loss, operational budgets
                                                             & management




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6. Name of the organisation Inc.
STRATEGIC BUSINESS PLAN (Period i.e .___________ )
Sample Only – feel free to amend

NOTE: if you are a large organisation you could have a worksheet for each focus area. Most small organisations may have one worksheet only for
each KPA and combine their focus areas - the choice is yours.

KEY PERFORMANCE AREA:                                  Management Plan
Focus Area:                                            Corporate Governance Structure, and management practices

Goal:           To introduce best governance and management practices
Objectives:     To optimise the performance of the organisation

ACTION PLAN
                                                                                 Time Line
Strategies             Actions                          Who
                                                        Resp.                                      Forecast   Performance Outcome         Priority
                                                                       01   02     03    04   05
Review DSR report on   Executive and management to      Executive                                  Nil        To improve organisational   High
governance             meet with Board                  EO                                                    effectiveness




Develop a governance   Executive to discuss             Executive                                  TBD        To have written policy      Priority
manual                 Attend DSR Workshop              EO




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                                                                                        KEY PERFORMANCE AREA:                       Marketing Plan
Focus Area:                                            Sponsorship

Goal:          Financial stability and viability
Objectives:

ACTION PLAN
                                                                                 Time Line
Strategies            Actions                           Who
                                                        Resp.                                      Forecast   Performance Outcome        Priority
                                                                       01   02     03    04   05




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                                                                                     KEY PERFORMANCE AREA:                          Operational Plan
Focus Area:

Goal:
Objectives:

ACTION PLAN
                                                                                 Time Line
Strategies            Actions                           Who
                                                        Resp.                                      Forecast   Performance Outcome         Priority
                                                                       01   02     03    04   05




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KEY PERFORMANCE AREA:                                  Financial Plan
Focus Area:                                            Accounting and Management practices

Goal:
Objectives:

ACTION PLAN
                                                                                 Time Line
Strategies            Actions                           Who
                                                        Resp.                                      Forecast   Performance Outcome   Priority
                                                                       01   02     03    04   05




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7. Financial Assessment
The Annual Program Budget Summary for the period is below.

Both the Annual and the three, four, or five Yearly Program Budgets provide an instant recognition
of the forecast costs associated with the conduct of the business of name of sporting organisation
Inc. The financial assessment is an important reflection of the funds needed in order to achieve a
given level of results. They are also important as an input into the organisations budgetary process
and should be regularly updated.

Example:
The Annual Program Budget summary for the period..(provides a slapshot of the forecast budget
requirements for a given period).

Estimated Expenditure                  $                      Estimated Income        $

Key Performance Area
     Management Plan
     Marketing Plan
     Operational Plan
     Financial Plan
Total Expenditure                                             Total Income
                                                              Surplus/(Deficit

Explanatory notes
Two examples of financial models are given. A Cash flow forecast budget and operating budget
forecast.

Note: Most for profit corporates (companies) use forecast models for profit and loss, balance sheet
and cash flow.

Your organisation may use computerised accounting systems ie. MYOB –products such as this
produce format forecast budgets, therefore, you may wish to include these.

Seek advice from your financial adviser or accountant

The Cash flow forecast
For any business, the cash flow forecast is a must do document that needs to be prepared on a
regular basis. In the sport and recreation industry Directors of the Board and managers need to know
the amount of cash coming into the organisation and whether the organisation can meet its
obligations when due.

The Operating Budget forecast
Provides the forecast of assumptions of income and expenses and includes the previous years
figures as a means of comparison. .




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                                                                                                  31
 NSW SPORTING ORGANISATION Inc. CHANGE MONTHS ACCORDING TO FINANCIAL CYCLE
                          CASHFLOW FORECAST BUDGET FOR THE YEAR ENDED 30 TH JUNE
  Months                        Jan       Feb        Mar       Apr       May       June     July   Aug   Sept   Oct   Nov   Dec
  INCOME
  Registration fees
  Event income
  Merchandising
  Sponsorship
  Interest Received
  Grants
  Other Income
  TOTAL INCOME


  EXPENSES
  Affiliation Fees
  Accountancy & Auditing Fees
  Bad Debts
  Bank Charges
  Computer Expenses
  Capital Expenditure
  Electricity
  General Expenses
  Insurance
  Interest
  Leasing
  Legal Fees




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 Motor Vehicle Expenses       Jan        Feb       Mar       Apr       May        June      July   Aug   Sept   Oct   Nov   Dec
 Newsletter
 Office Expenses
 Printing & Stationery
 Promotions
 Purchases (merchandising)
 Registration Fees
 Rent
 Repairs & Maintenance
 Salaries & Wages
 Staff Training
 State Team Expenses
 Subscriptions
 Superannuation
 Telephone & Fax
 Travel & Accommodation


 TOTAL EXPENSES


 NET INCOME


 CASHFLOW ($




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                                                                                                                                  33
NSW SPORTING ORGANISATION INC.
OPERATING BUDGET FOR YEAR ENDING

 ACTUALS
 LAST YEAR $                    INCOME                                           This year being   ASSUMPTIONS
                                Registration fees
                                Event income
                                Merchandising
                                Sponsorship
                                Interest Received
                                Grants
                                Other Income

                                TOTAL INCOME

                                EXPENSES
                                Affiliation Fees
                                Accountancy & Auditing Fees
                                Bad Debts
                                Bank Charges
                                Computer Expenses
                                Capital Expenditure
                                Electricity
                                General Expenses
                                Insurance
                                Interest
                                Leasing




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 ACTUAL
 LAST YEAR                      EXPENSES                                         This year being   ASSUMTPIONS
                                Legal Fees
                                Motor Vehicle Expenses
                                Newsletter
                                Office Expenses
                                Printing & Stationery
                                Promotions
                                Purchases (merchandising)
                                Registration Fees
                                Rent
                                Repairs & Maintenance
                                Salaries & Wages
                                Staff Training
                                State Team Expenses
                                Subscriptions
                                Superannuation
                                Telephone & Fax
                                Travel & Accommodation

                                TOTAL EXPENSES

                                NET INCOME




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             8. Monitor and review of the plan
             The STRATEGIC BUSINESS PLAN should be monitored and reviewed on a monthly,
             quarterly, and yearly basis by the Board.

             Directors of the Board will be responsible for their designated portfolio and must prepare a
             short written report on the activities of their Standing Committees or Ad hoc Committees at
             meetings of the Board.

             The Chair in accordance with the Constitution should have overall responsibility to members
             for the implementation and review of the Strategic Business Plan and other functions of the
             Association.

             The yearly review will take place prior to the end of each financial year 30 June or calendar
             year as determined by the Board in accordance with the Constitution and the Act.

             The table below sets out an example of a review timetable for State sporting and recreation
             organisations:

          Strategic Business                          Update                          Total Review                                Responsibility
              Planning

             Values, Vision,                   Six-monthly, but                           Annually                             Board/management
                Mission                         only if required

              Environmental                       Six-monthly                             Annually                             Board/management
                Analysis                                                                                                          Committees

                  Strategy                     Six-monthly, but                           Annually                             Board/management
                Formulation                     only if required                                                                  Committees

                    Targets                          Monthly                          Quarterly and                            Board/management
                                                                                       Annually                                   Committees

              Financial Plans                         Monthly                             Annually                             Board/management
                                                                                                                                  Committees

               Resource                          Weekly, daily                            Monthly                              Board/management
           Requirements and                                                                                                       Committees
            Action Planning
            Entire Business                          Annually                             Annually                             Board/management
                  Plan                                                                                                            Committees




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9. Management Structure (sample shown)
Role of Name of Organisation Incorporated
Council and Board

The Council
Primary role: Stakeholders forum, oversight Strategic Business Plan, legislative control.
Composition:
Meet:
President:

The Board of NSW SPORTING ORGANISATION Incorporated.
Primary role:
Composition:
Meet:
President:

Role of Standing and ad hoc Committees

Standing Committees

The rules by which the standing committees operate are outlined in the Constitution
of name of the organisation.

                                      Finance Committee

Primary role: Provide sound financial management advice to The Board of NSW SPORTING
              ORGANISATION Inc preparation of budgets

Composition:
Meet:
Convenor:

                            Marketing and Promotion Committee

Primary role: Develop and implement marketing strategies in accordance with the Strategic
              Business Plan.

Composition:
Meet:
Convenor:

                      Coaching and Referee Management Committee

Primary role: Develop and implement coaching and referee education strategies in accordance
          with the Strategic Business Plan.

Composition:
Meet:
Convenor:
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                                                                                            37
                                   Competitions Committee

Primary role: Liaise with clubs in accordance with the strategies of the Strategic Business Plan.

Composition:
Meet:
Convenor:

                             Representative Selection Committee

Primary role: Develop selection policy for the selection and appointment of Representative
              teams in accordance with the strategies of the Strategic Business Plan

Composition:
Meet:
Convenor:

                                      Schools Committee

Primary role: Develop a schools feeder system policy in accordance with the strategies of the
              Strategic Business Plan

Composition:
Meet:
Convenor:

 Ad Hoc Committees
Ad hoc Committees are to be established on short term basis for specific purposes as follows:.

                                          Sponsorship

Primary role: Develop and implement sponsorship strategies in consultation with the Marketing
              and Promotions Committee and under the direction of the Board of NSW
              SPORTING ORGANISATION Incorporated.

Composition:
Meet:
Convenor:




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                                                                                            38
     10. Organisational Flowchart
                                          The Board
MANAGEMENT




     Standing                              The Counci
    Committees




                                            MEMBERS
                                      ASSOCIATIONS or Clubs




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                                                                                                 39
11. APPENDICES




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Customer Feedback survey
Finally, help us to help you by completing this Customer Feedback Survey and returning to:
NSW Department of Sport and Recreation
Industry Development Consultant
Locked Bag 1422 Concord West DC NSW 2138
Telephone: 9006 3700 Facsimile: 9006 3800


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  Excellent                Good                       OK                         Poor


Please comment (area(s) you found most useful/ in need of improvement)?

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could provide that would be useful in assisting your organisation to complete its Strategic
Business Plan?




Support and advice

The NSW Department of Sport and Recreation can assist your organisation in strategic
business planning. If you are a state or peak industry body contact us on (02) 9006 3700.
Alternatively, if you are a club contact your closest regional office on 13 13 02.

Disclaimer
This Strategic Business Planning Guide contains comments of a general nature only and is not intended to be
relied upon, nor as a substitute for specific professional advice. The NSW Department of Sport and Recreation
or the authors, can accept no responsibility for loss occasioned to any person doing anything as a result of any
material in this publication. This Guide can be copied without prosecution in respect to copyright.




THE STRATEGIC BUSINESS PLAN – A GUIDE TO PREPARATION NSW DEPARTMENT OF SPORT & RECREATION


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