Post on 11-Oct-2020
transcript
Strategy & Business Planning
September 2018
Uday Thakkaruday@redochre.org.uk
© Red Ochre 2018
What is strategy
A set of decisions designed to deliver a specific long-term significant impact or result
Now FutureAction
Impact
© Red Ochre 2016
Strategic Drivers & Influencers
© Red Ochre 2016
Drivers A – Improving outcomes for Beneficiaries B - Improving and sustaining yourself to achieve A
Influencers C - External conditions D - Competitors
Steps to success
Framework Implication
AspireWhere do we want to go
VisionStrategic objectives/ targets, culture
AssessHow ready are we to go there
Capability platformIdentify/diagnose ability to achieve vision
ArchitectWhat do we need to do to get there
Portfolio of initiatives(to deliver outcomes & improve performance)
ActHow do we manage the journey
Delivery modelExecution and correct approach
AdvanceHow do we keep moving forward
Continuous improvement infrastructure & culture
© Red Ochre 2018
Strategy Process
www.redochre.org.uk
Strategic Journey
© Red Ochre 2016
Mission – discrete quantifiable delivery
Vision
Strategic Horizon
Current state
Strategic scope
Capabilities
Values
Not quantifiable
Foundation of social benefit activity
© Red Ochre 2018
PROBLEM
DESIREDCHANGE
VISION
SOLUTION
DREAM
REALITY
Identifying the Problem
Can you describe the problem? What is the cause of the problem?
How does it affect people? How do they manage the problem currently?
Have you got evidence for this? Why has no one solved the problem yet? Is it possible to solve the problem?
What change do you want to make?
© Red Ochre 2018
Love the problem
Charities succeed because they: Constantly think about the problem Ask “Can the problem be approached in a new way?” Ask “Has the customers needs change?” Fall in love with the problem
Because if they keep improving the solution they will keep making money
© Red Ochre 2018
Identifying the People
Who has the problem? Age/ economic class/ gender etc.
Where are they? How many people are affected? How many people are you going to help? How do you access them? Are there gate keepers? Do you need premises/ transport/ can they come to you Is there a cost associated with the engagement?
© Red Ochre 2018
Target population
© Red Ochre 2018
Total population of potential beneficiaries
Accessible population
Target beneficiaries/problem aspect
Building inwards out
WHAT
HOW
WHY
BUSINESS MODEL
MISSION
VISION
© Red Ochre 2016
The Importance of having a Vision
A Vision is a dream of a better future It explains why the social enterprise exists It is a focus for strategy – the strategy has always to be to fulfil
the vision The vision acts as a motivator for You Employees Supporters Stakeholders Investors
© Red Ochre 2018
Practicalities
Vision May never be achieved This does not matter
May not be measured In most cases it is subjective “We want Khartoum to become a happier and healthier
city”
© Red Ochre 2018
Strategy choices
www.redochre.org.uk
Invest in innovation
Invest in outreach
Sustain
High risk
Strategy identification
www.redochre.org.uk
Customer’s perception
Measuring & Reporting
© Red Ochre 2016
Know what you want to change What is your starting point – benchmark What does the end process look like? What are the step changes How will you know you are getting there How will you measure this How will you report this Who needs to be reported to What do they want to “hear”
Build this into your strategy
Mission definition
© Red Ochre 2018
The “How” of the journey towards your Vision What you want to achieve in the short to medium
term Short term strategic targets/ objectives (3 years?) Practical Simple Directive
Measurable outcomes – indicates you are on the right path
Specific time frame The Mission may change frequently
Values
© Red Ochre 2016
Value Statement ImplicationTransparent We are open about what we do Make public disclosures,
benefit statements, outputs, outcomes,governance implications
Ethical Supply chain and customers are ethical, we behave ethically
Cultural and organisational behaviour changes and enforcement
Beneficiary focussed We put the interest of our beneficiaries at the centre of what we do
Proof of this, systems and procedures, cultural changes and enforcement
Other
SWOT
© Red Ochre 2016
Strengths WeaknessesHow effective is your managementHow effective are your operationsHow good is your governanceHow good are your relationships with funders
How ineffective is your managementHow dysfunctional are your operationsHow poor is your Board/system of governanceHow poorly are you regarded by funders
Opportunities ThreatsAre your beneficiary numbers growing or new ones appearingWill new technology improve your service delivery Are there partnership opportunities
Are beneficiaries reducingDoes a competitor have a technology advantage over youAre competitors forming partnerships
Internal
External
Active Application
© Red Ochre 2016
Invest Defend
Clear matches of Strengths & Opportunities lead to competitive advantage
Areas of Threat matched by areas of Strengths indicate a need to mobilize resources either alone or with others/ partners
Decide Damage Control/ Divest
Areas of Opportunities matched by areas of Weakness require a judgement call. Invest or Divest or Collaborate
Areas of Threat matched by areas of Weakness indicate need for Damage Control or DivestWeaknesses
Opportunities Threats
Strengths
PEST
© Red Ochre 2016
Political Economic
Does existing or future legislation impact on youWhat activities will be disallowed by regulatorsWhat legal & ethical standards must you meet
How is financial situation affecting amount of grants/ contractsHow is demand for your service changingIs there pressure to cut costs because of competition
Social Technological
Is your target market growing or shrinkingHow are you perceived (brand)Are your beneficiary demographics changing
Is technology affecting your sectorHow is social media impacting on your operationsWill changes in technology increase or decrease demands for your services
Value Proposition
© Red Ochre 2018
Most marketing focussed on what is important to charity Features
Should focus on what is important to the beneficiary/customer Benefits
Explain the benefits of engaging with/ buying from you The Value Proposition
Compelling explanation of transactional & emotional benefits Could be a number of thingsWill be different for each customer segment
How to identify VP
© Red Ochre 2016
Observe beneficiary/customer What makes them unhappy What will make them happy What will make their lives easier
Design solution Creates happiness Takes away problem Makes life easier
Ask!
Benefits
Formulating Value Proposition
© Red Ochre 2016
Fundamentals: Makes money Saves money Stops a problem Takes away a pain
Prevents a problem Takes away a potential pain
Makes life/ job easier Makes user feel better/good
Theory of Change
Strategic Objectives Outcomes Outputs Resources
Required
Delivery trajectory
Planning trajectory
As a charity – want to deliver social benefit
© Red Ochre 2016
IMPACT
www.redochre.org.uk
Strategy into Business Plan
Deriving Strategy
Current model Future model
Getting you to your vision
Internal changes
External influences
Strategic change you want to create
Year 2 Year 3Year 1
© Red Ochre 2018
Areas of Risk (cross reference to SWOT to identify these)
People Information
Operational Property
Financial Reputation
Funding Regulatory
Social Technological
Competition Political
Management Governance
Strategic Natural
© Red Ochre 2016
Risk – PI Matrix
© Red Ochre 2016
High Impact/Low Probability
TRANSFER
High Impact/High Probability
TERMINATE
Low Impact/Low Probability
TAKE
Low Impact/High Probability
TREAT
PROBABILITY
IMPA
CT
Business Planning
© Red Ochre 2016
Usually for external readers Why do they need one? To understand your enterprise To take decisions Support Fund Partner
What is it?
© Red Ochre 2016
A way to create credibility Inspire confidence Convince reader that risk is minimal Excite the reader Inspire the reader to take action Convince the reader they will benefit from association
What it contains
© Red Ochre 2016
Statutory & regulatory information of the charity A summary of what your organisation does What it wants to do Why it wants to do it What it needs to achieve this How it intends to deliver change A clear understanding of operational environment
Strength of management Strength of governance & financial management
Tips & Tricks
© Red Ochre 2016
You are telling a story Nobody likes boring stories
People are lazy They don’t like reading long documents Not more than 20 pages Rest of information can be in annexe
Usually a decision is made just from reading the executive summary
This is the most important part of the document
Executive Summary
© Red Ochre 2016
1 to 1.5 pages long Exciting/ punchy/ engaging It is similar to your elevator pitch/ quick presentation You need the reader to: Buy into your vision Understand the change you want to make Your value proposition Your strengths What you need to create your dream
Structure
www.redochre.org.uk
Executive Summary Always at front but written last Summarises the document
What you want to do/ value proposition Legal information Marketing information Management & Governance Operational information Financials Appendices
Appendices
© Red Ochre 2016
Financial forecasts Assumptions Management resumes Market research Stakeholder/ customer references/ praise Marketing material Anything that will help your cause
B P Framework 1
© Red Ochre 2016
2
© Red Ochre 2016
3
© Red Ochre 2016