Strategy & Business Planning - Directory of Social Change · Strategy & Business Planning. September 2018. Uday Thakkar. [email protected] © Red Ochre 2018

Strategy & Business Planning

September 2018

Uday [email protected]

© Red Ochre 2018

What is strategy

A set of decisions designed to deliver a specific long-term significant impact or result

Now FutureAction

Impact

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Strategic Drivers & Influencers

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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

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Strategy Process

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Strategic Journey

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Mission – discrete quantifiable delivery

Vision

Strategic Horizon

Current state

Strategic scope

Capabilities

Values

Not quantifiable

Foundation of social benefit activity

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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?

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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

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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?

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Target population

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Total population of potential beneficiaries

Accessible population

Target beneficiaries/problem aspect

Building inwards out

WHAT

HOW

WHY

BUSINESS MODEL

MISSION

VISION

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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

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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”

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Strategy choices

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Invest in innovation

Invest in outreach

Sustain

High risk

Strategy identification

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Customer’s perception

Measuring & Reporting

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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

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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

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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

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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

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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

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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

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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

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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

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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

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IMPACT

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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

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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

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Risk – PI Matrix

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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

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Usually for external readers Why do they need one? To understand your enterprise To take decisions Support Fund Partner

What is it?

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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

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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

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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

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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

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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

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Financial forecasts Assumptions Management resumes Market research Stakeholder/ customer references/ praise Marketing material Anything that will help your cause

B P Framework 1

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2

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3

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