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The Canadian Society of Club Managers
Strategic Planning: Your Club, Your Future
Christian Stephan
Tuesday, August 12 , 2008
Christian Stephan Consulting Inc.-Tel: 416-710-0665. E-mail: [email protected]
2
Strategic Planning
Internal Assessment
External Assessment
SWOT Analysis
How do you build your Strategic Plan ?
Components of the Plan
Value Proposition
Strategic Initiatives
Evaluation, Prioritization and Timing
What is Strategic Planning?
Why Strategic Planning for a Club?
Ag
end
a
3
Strategic Planning
Internal Assessment
External Assessment
SWOT Analysis
How do you build your Strategic Plan ?
Components of the Plan
Value Proposition
Strategic Initiatives
Evaluation, Prioritization and Timing
What is Strategic Planning?
Why Strategic Planning for a Club?
Ag
end
a
• Strategic planning is an organization’s process of defining its Strategy or direction, and making decisions on allocating its resources to pursue this strategy, including its capital and people.
• Strategic planning is the formal consideration of an organization's future course. All strategic planning deals with at least one of three key questions:
• For whom do we work?• Where do we want to go?• How can we excel at doing what we do?
• In most organizations, this is viewed as a process for determining where an organization is going over the next 3 to 5 years. Today’s rapidity of evolution does not allow to go much beyond that.
4
What is Strategic Planning ?
Where we are
Where we
want to be
How do we get there ?
Str
ateg
ic P
lan
nin
g
5
Why Strategic Planning for a Club ?
• No position is guaranteed for ever
• Rapidly evolving environment creates increasing uncertainty about the future:• Evolution in cultural tastes• Evolution in life styles – Health, health foods• Evolution in technologies
• Evolution of potential members profile • The challenge posed by retiring boomers• The coming of age of Generation X• The emergence of Generation Y
• Evolution in the economic environment• Globalization• Economic cycles• The impact of rising energy and resources costs
Impact how Clubs are perceived and how they operate
Str
ateg
ic P
lan
nin
g
6
Strategic Planning
Internal Assessment
External Assessment
SWOT Analysis
How do you build your Strategic Plan ?
Components of the Plan
Value Proposition
Strategic Initiatives
Evaluation, Prioritization and Timing
What is Strategic Planning?
Why Strategic Planning for a Club?
Ag
end
a
7
How do you go about building your Strategic Plan ?
InternalAssessment
External Assessment
STRENGTHS, WEAKNESSES, OPPORTUNITIES, THREATS (SWOT)
DEVELOPMENT AND EVALUATION OF STRATEGIC INITIATIVES
STRATEGIC PLAN
Bu
ildin
g t
he
Pla
n
Objectives: To establish an understanding on how efficient and effective the current organization and operations of the Club are.
8
The Internal Assessment should address Five key dimensions:In
tern
al a
sses
smen
t
Organization structure and People
Business andOperations Processes
Financial and ManagementInformation
Technology
Space
9
Internal Analysis: Organization and People
Inte
rnal
Ass
essm
ent
• Top down Interviews:• Board members• CEO and other executives• Lead Heads• If necessary and depending on the size of the Club, all full-time staff members on a
function by function basis• Review job descriptions (if they exist) • Review internal Communication flows• Review HR policies• Review current skills set
• Determine if the club objectives and goals are clearly communicated and understood throughout the organization
• Understand roles and responsibilities and identify possible causes of dysfunctions• Evaluate the effectiveness of the existing structure• Identify areas of concern and potential improvements• Identify possible limitations in skills sets and/or headcountO
BJEC
TIVE
SPR
OCE
SS
10
Internal Analysis:Business and Operations Processes
Inte
rnal
Ass
essm
ent
• Main areas reviewed:• Procurement• Kitchen• Foods and beverage services• Facilities management and maintenance• Event Planning and event management• Club specific activities (e.g. fitness, sport activities)• Security• Marketing and Communication• HR
• Identify applicability of best practices
• Determine if main processes are efficiently executed in terms of;• Resources and Costs• Time required• Quality of output
• Identify areas for improvementOBJ
ECTI
VES
B-010Perform
Constituent SetUp
B-020Receive Claim
Notice
B-030Triage / Assign
Claim
B-040Initial Claim Setup
B-050Perform
Investigation
B-060Manage Claim
Reserves
B-070Negotiate andSettle Claims
B-080Manage Litigation
B-090Issue Payment
B-100DetermineSalvage
B-110Determine
Subrogation
B-120Determine
Reinsurance
B-130Evaluate Fraud
B-140Perform Reporting
B-150Manage / Review
Billing
B-160Perform Claims
Audit
B-170Manage Claim
Department
B-180Manage VendorRelationships
B-190Manage Exposure
B-200Determine Loss
Control
BManage Benefits & Claims
B-010Perform
Constituent SetUp
B-020Receive Claim
Notice
B-030Triage / Assign
Claim
B-040Initial Claim Setup
B-050Perform
Investigation
B-060Manage Claim
Reserves
B-070Negotiate andSettle Claims
B-080Manage Litigation
B-090Issue Payment
B-100DetermineSalvage
B-110Determine
Subrogation
B-120Determine
Reinsurance
B-130Evaluate Fraud
B-140Perform Reporting
B-150Manage / Review
Billing
B-160Perform Claims
Audit
B-170Manage Claim
Department
B-180Manage VendorRelationships
B-190Manage Exposure
B-200Determine Loss
Control
BManage Benefits & Claims Process
Sub-Process
ActivitiesManage Benefits and Claims
Manage Litigation B-050
Return toPrevious Level
Gather RelevantInformation and Reports
Interview Insured/Claimant/Witness
Assess Potential Fraud
Assess PotentialSubrogation
Assess SalvagePotential
Update Claim File
Determine LiabilityCan A LiabilityDecision Be
Made?
No
Is there anyInsured Liability?
Communicate ClaimDenial
No
Close Claim File
Review ReinsuranceAgreements
Yes
Does reinsuranceapply?
FraudInvestigation
Required?
Potential Exists?
Salvage PotentialExists?
Yes
Yes
Yes
Yes
Yes
B-120DetermineReinsurance
B-130Evaluate Fraud
B-110DetermineSubrogation
B-100DetermineSalvage
B-060Manage ClaimReserves
B-050PerformInvestigation
IndustryPrintTM
Insurance IndustryOperational Processes
Manage Benefits and ClaimsManage Litigation B-050
Return toPrevious Level
Gather RelevantInformation and Reports
Interview Insured/Claimant/Witness
Assess Potential Fraud
Assess PotentialSubrogation
Assess SalvagePotential
Update Claim File
Determine LiabilityCan A LiabilityDecision Be
Made?
No
Is there anyInsured Liability?
Communicate ClaimDenial
No
Close Claim File
Review ReinsuranceAgreements
Yes
Does reinsuranceapply?
FraudInvestigation
Required?
Potential Exists?
Salvage PotentialExists?
Yes
Yes
Yes
Yes
Yes
B-120DetermineReinsurance
B-130Evaluate Fraud
B-110DetermineSubrogation
B-100DetermineSalvage
B-060Manage ClaimReserves
B-050PerformInvestigation
IndustryPrintTM
Insurance IndustryOperational Processes
CProvide Customer
Service
DDevelop & Manage Products/
Services
CProvide Customer
Service
DDevelop & Manage Products/
Services
B-010Perform
Constituent SetUp
B-020Receive Claim
Notice
B-030Triage / Assign
Claim
B-040Initial Claim Setup
B-050Perform
Investigation
B-060Manage Claim
Reserves
B-070Negotiate andSettle Claims
B-080Manage Litigation
B-090Issue Payment
B-100DetermineSalvage
B-110Determine
Subrogation
B-120Determine
Reinsurance
B-130Evaluate Fraud
B-140Perform Reporting
B-150Manage / Review
Billing
B-160Perform Claims
Audit
B-170Manage Claim
Department
B-180Manage VendorRelationships
B-190Manage Exposure
B-200Determine Loss
Control
BManage Benefits & Claims
B-010Perform
Constituent SetUp
B-020Receive Claim
Notice
B-030Triage / Assign
Claim
B-040Initial Claim Setup
B-050Perform
Investigation
B-060Manage Claim
Reserves
B-070Negotiate andSettle Claims
B-080Manage Litigation
B-090Issue Payment
B-100DetermineSalvage
B-110Determine
Subrogation
B-120Determine
Reinsurance
B-130Evaluate Fraud
B-140Perform Reporting
B-150Manage / Review
Billing
B-160Perform Claims
Audit
B-170Manage Claim
Department
B-180Manage VendorRelationships
B-190Manage Exposure
B-200Determine Loss
Control
BManage Benefits & Claims Process
Sub-Process
ActivitiesManage Benefits and Claims
Manage Litigation B-050
Return toPrevious Level
Gather RelevantInformation and Reports
Interview Insured/Claimant/Witness
Assess Potential Fraud
Assess PotentialSubrogation
Assess SalvagePotential
Update Claim File
Determine LiabilityCan A LiabilityDecision Be
Made?
No
Is there anyInsured Liability?
Communicate ClaimDenial
No
Close Claim File
Review ReinsuranceAgreements
Yes
Does reinsuranceapply?
FraudInvestigation
Required?
Potential Exists?
Salvage PotentialExists?
Yes
Yes
Yes
Yes
Yes
B-120DetermineReinsurance
B-130Evaluate Fraud
B-110DetermineSubrogation
B-100DetermineSalvage
B-060Manage ClaimReserves
B-050PerformInvestigation
IndustryPrintTM
Insurance IndustryOperational Processes
Manage Benefits and ClaimsManage Litigation B-050
Return toPrevious Level
Gather RelevantInformation and Reports
Interview Insured/Claimant/Witness
Assess Potential Fraud
Assess PotentialSubrogation
Assess SalvagePotential
Update Claim File
Determine LiabilityCan A LiabilityDecision Be
Made?
No
Is there anyInsured Liability?
Communicate ClaimDenial
No
Close Claim File
Review ReinsuranceAgreements
Yes
Does reinsuranceapply?
FraudInvestigation
Required?
Potential Exists?
Salvage PotentialExists?
Yes
Yes
Yes
Yes
Yes
B-120DetermineReinsurance
B-130Evaluate Fraud
B-110DetermineSubrogation
B-100DetermineSalvage
B-060Manage ClaimReserves
B-050PerformInvestigation
IndustryPrintTM
Insurance IndustryOperational Processes
CProvide Customer
Service
DDevelop & Manage Products/
Services
CProvide Customer
Service
DDevelop & Manage Products/
Services
PRO
CESS
11
Internal Analysis:Financials and management Information
Inte
rnal
Ass
essm
ent
Proc
ess
Perform Balance Sheet Analysis• Determine Acid test ratio : Short term Assets/Short term liabilities. Should be higher than 1.• Determine Debt/Equity ratio. If significantly lower than 1, there may be room for long term
debt.Perform P&L Analysis• Evolution of revenues and costs by areas/departments: Dining rooms, Bar, Events, etc.• How is profitability of operations determined i.e what are the profit and cost centers and how
are costs allocated to each profit center?• Identify unprofitable areas and related causesEvaluate Budget and reporting processEvaluate Cash forecasting process
• Determine to what degree the Financial situation of the Club allows for investment and/or indebtedness.
• Determine if reporting provides the appropriate information to Management and to the Board in an accurate, timely and suitably frequent manner.
OBJ
ECTI
VES
Improvement Calculations:Reduction in unit cost = A*ECost of downtime, due to supplier incidence = B*C*F*GCost of ensuring RM quality = D*H
FIT Attachment:[EXCEL WORKSHEET ICON]
Potential Net Impact: A 40% improvement in supplier performance may lead to annual savings equivalent to 5% of the average annual purchase cost.
Additional/Intangible Effects: + Increased supplier and employee morale+ Increased trust in raw materials+ Increased perception of product reliability
Related Management Issues:Management Issue Name -Management Issue Link -
Supporting Evidence:
Improvement Calculations:Reduction in unit cost = A*ECost of downtime, due to supplier incidence = B*C*F*GCost of ensuring RM quality = D*H
FIT Attachment:[EXCEL WORKSHEET ICON]
Potential Net Impact: A 40% improvement in supplier performance may lead to annual savings equivalent to 5% of the average annual purchase cost.
Additional/Intangible Effects: + Increased supplier and employee morale+ Increased trust in raw materials+ Increased perception of product reliability
Related Management Issues:Management Issue Name -Management Issue Link -
Supporting Evidence:
Improvement Calculations:Reduction in unit cost = A*ECost of downtime, due to supplier incidence = B*C*F*GCost of ensuring RM quality = D*H
FIT Attachment:[EXCEL WORKSHEET ICON]
Potential Net Impact: A 40% improvement in supplier performance may lead to annual savings equivalent to 5% of the average annual purchase cost.
Additional/Intangible Effects: + Increased supplier and employee morale+ Increased trust in raw materials+ Increased perception of product reliability
Related Management Issues:Management Issue Name -Management Issue Link -
Supporting Evidence:
Improvement Calculations:Reduction in unit cost = A*ECost of downtime, due to supplier incidence = B*C*F*GCost of ensuring RM quality = D*H
FIT Attachment:[EXCEL WORKSHEET ICON]
Potential Net Impact: A 40% improvement in supplier performance may lead to annual savings equivalent to 5% of the average annual purchase cost.
Additional/Intangible Effects: + Increased supplier and employee morale+ Increased trust in raw materials+ Increased perception of product reliability
Related Management Issues:Management Issue Name -Management Issue Link -
Supporting Evidence:
Improvement Calculations:Reduction in unit cost = A*ECost of downtime, due to supplier incidence = B*C*F*GCost of ensuring RM quality = D*H
FIT Attachment:[EXCEL WORKSHEET ICON]
Potential Net Impact: A 40% improvement in supplier performance may lead to annual savings equivalent to 5% of the average annual purchase cost.
Additional/Intangible Effects: + Increased supplier and employee morale+ Increased trust in raw materials+ Increased perception of product reliability
Related Management Issues:Management Issue Name -Management Issue Link -
Supporting Evidence:
Improvement Calculations:Reduction in unit cost = A*ECost of downtime, due to supplier incidence = B*C*F*GCost of ensuring RM quality = D*H
FIT Attachment:[EXCEL WORKSHEET ICON]
Potential Net Impact: A 40% improvement in supplier performance may lead to annual savings equivalent to 5% of the average annual purchase cost.
Additional/Intangible Effects: + Increased supplier and employee morale+ Increased trust in raw materials+ Increased perception of product reliability
Related Management Issues:Management Issue Name -Management Issue Link -
Supporting Evidence:
12
Internal Analysis:Technology
Inte
rnal
Ass
essm
ent
• Members Data base• Reservations• Events planning• Food and beverage services• Accounting, Finance, Management Reporting and Control• Inventory control• Fixed assets controls• Scheduling• Document editing• Web site application (ease of update, user friendliness, etc.)
• Determine if the applications used by the Club adequately support the various business and operations process.
• Identify missing functionalities• Identify required improvements
OBJ
ECTI
VES
PRO
CESS
13
Internal Analysis:Space
Inte
rnal
Ass
essm
ent
• Two step approach • Preliminary high level review to assess possibilities, without getting in detailed analysis• Review and feasibility assessment by specialists once options have been defined .
• Understand what constraints if any are posed to operations by the current available space• Determine if the space of the club is adequately used and if there are opportunities to
reallocate space or to expand space.• Identify possibility of alternative use of space
OBJ
ECTI
VES
PRO
CESS
14
External Analysis:Trends
Ext
ern
al A
sses
smen
t
• Understand the elements of the environment that may impact the club and its membership
OBJ
ECTI
VES
• Economic Factors• Economic growth• Cost of materials• Labour laws• Other Regulations
• Socio-Cultural factors • Demographics• Life style trends• Evolution in technologies
PRO
CESS
15
External Analysis:Members
Ext
ern
al A
sses
smen
t
• Analysis of membership evolution over time : composition, attrition rate , etc.• Members survey – on-line, off-line; • If possible organize focus groups• Analysis of survey according to various criteria : age, gender, behavioral characteristics linked
to the use of the Club Services• Conduct in-depth interviews with a limited number of members to gain insights into member’s
needs, motivation and evaluation criteria.
• Understand current members’ needs and use of the Club facilities• Assess members levels of satisfaction with services and facilities• Identify typology of members
OBJ
ECTI
VES
PRO
CESS
16
External Analysis:Prospective members and Ex- members
Ext
ern
al A
sses
smen
t
• Survey or limited number of In-depth Interviews (anonymity should be assured)
• Understand how the Club is perceived outside of its membership:• Awareness • Image
• Identify motivation to join or not to join a club, and more specifically your club• Identify why ex-members have left the club O
BJEC
TIVE
SPR
OCE
SS
17
External Analysis:Peers
Ext
ern
al A
sses
smen
t
PRO
CESS
• In-depth interviews in person or by phone • Secondary research utilizing the Internet• Areas under review:
• Management of attrition• Use of Space• Procurement• Kitchen• Foods and beverage services• Facilities management and maintenanceEvent Planning and event management• Club specific activities• Security• Marketing and Communication • Etc.
• Understand how other clubs are addressing similar issues • Identify best –or at least better – practice• Benchmark the operations
OBJ
ECTI
VES
18
SW
OT
An
alys
is
The SWOT analysis summarizes the results of the Internal and External Assessment and sets the basis for the development of initiatives
StrengthsFully Exploit Weaknesses Correct or Minimize
OpportunitiesTake advantageGet Prepared
Threats Fend off or prepare contingencies
19
Strategic Planning
Internal Assessment
External Assessment
SWOT Analysis
How do you build your Strategic Plan ?
Components of the Plan
Value Proposition
Strategic Initiatives
Evaluation, Prioritization and Timing
What is Strategic Planning?
Why Strategic Planning for a Club?
Ag
end
a
20
Co
mp
on
ents
of
the
Pla
m The strategic initiatives open to the Club are a direct function of its Value Proposition
• All clubs have a Mission, which is their Raison d’être or why they exist, and Values which are shared among members
• To define a strategy the club needs:• a Vision of where it wants to be in the future:
• Size• Location• Financial position• Etc.
This will allow to set objectives for the future
•And a value proposition for its members• The value proposition is characterized by a clear statement of what the offering
of the Club should be and what value it brings to the members.• The value proposition must bring a clear differentiation from what other clubs
offer:• Go beyond fine wines and exquisite food• Go beyond classy surroundings and luxurious settings• What does/should your club offer that is truly different?
• The value proposition is the first yardstick by which strategic initiatives must be evaluated
21
Co
mp
on
ents
of
the
Pla
n Strategic initiatives usually cover between 5 and 7 key areas
• Revenue Enhancement• Membership fees• Type of Events and programs• Prices• Fundraiser
• Members• Acquisition of new members• Targeted action plan• Actions for current members
• Service Offerings• New services• Improvement in current services
• Marketing and Communication• Staff• Marketing Initiatives• Website
• Operations• Kitchen• Dining rooms• Bars• House• Sports activities• Procurement
• HR• Facilities Improvements and renovation
StrategicPlan
22
Eva
luat
ion
an
d P
rio
riti
zati
on
Strategic Initiatives must be evaluated and prioritized
Strategic Initiatives Feasibility Costs ROI Duration Priority
Revenue Enhancement
Members
Service Offering
Marketing and Communications
Operations
HR
Facilities improvements
Yes/No Hi/Med/Lo
Strategic Initiative 1
Actions2009
A S O N D J F M A M J J A S O N D
2008
Top 10 accounts 2009 Plan
Priority
Very High
Very High
Very High
High
Very High
Very High
High
High
Medium
High
Low
Establish a timelineT
imin
g
Very High
Very High
High
Strategic Initiative 3
Strategic Initiative 4
Strategic Initiative 2
Strategic Initiative 5
Strategic Initiative 6
Strategic Initiative 7
Strategic Initiative 8
Strategic Initiative 9
Strategic Initiative 10
Strategic Initiative 11
Strategic Initiative 12
Strategic Initiative 13
Strategic Initiative 4
24
Qu
esti
on
sQuestions ?