DIPLOMA IN CLUBMANAGEMENT
Strategic Planning
DIPLOMA IN CLUBMANAGEMENT
Pedro Correia
DIPLOMA IN CLUBMANAGEMENT
01. MSc in Marketing and Strategic Management
• Católica Lisbon School of Business and Economics
• ISCTE and Macao University
02. Working in sports and events for over 20 years
• 5 FIFA World Cups• 4 UEFA European Championships
• Summer Olympic Games, Rugby World Cup, etc.
• Secretary-General Portuguese Football League
• FIFA, UEFA, FIBA, CIES and other entities
03. International Sports Consultant
Lecturer profileINTRODUCT ION
DIPLOMA IN CLUBMANAGEMENT
01 02The evolution offootball
The importance ofhaving a strategy
AgendaI n t roduc t ion
03The basics ofstrategicmanagement
04 05The strategic plan The strategic and
operational planningcycles
06Examples fromthe footballworld
4
SUN TSU
“Every battle is won before it is fought.”
BENJAMIN FRANKL IN
“By failing to prepare, you are preparing to fail.”
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5
01The evolution of football
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Changes over last 30 yearsEvo lu t ion o f footba l l
Player costs Style of play Competitions profile
Broadcasting Sponsorship approach Professionalisation structures
Training methodology Player development Technology & science
Attendances Globalisation Fan engagement
Other aspects Multiple club ownership
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Value drivers in club managementEvo lu t ion o f footba l l
Competition(s) format
Club revenues
T H E T R A D I N G L O O P
H I G H R I S K / H I G H R E T U R N
T H E F I N A N C I A L L O O P
L O W R I S K / F I X E D R E T U R N
Attendances / sponsors
• Number of matches• Matches of meaning• Matches of balance• Matches of quality
Matchday & commercial
T H E P E R F O R M A N C E L O O P
H I G H R I S K / H I G H R E T U R N
League position
Broadcast money
International performance Prize money
Squad strength Player transfers
• Player purchase• Player retention• Player development
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Football nowadaysEvo lu t ion o f footba l l
EXCITMENT
PASSION
ENTERTAINMENT
BRAND
COMPETITION
BUSINESS
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02The importance of having a strategy
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Importance of having a strategy
• Make future decisions easier & allocation resources
• Reduction uncertainty & risk management
• Increase internal understanding and focus
• Motivate employees and fans
• Increase legitimacy and identification
• Setting yourself apart
• Allows to measure performance
Provide direction
Business aproach
Reduce uncertainty
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Strategy types in football industry
Different strategy perspectivesImpor tance o f hav ing a s t ra tegy
Corporate strategies
Follow the leaderOffensive
Fortify and defendDistinctive image
DefensiveOur-is-better
Niche specialist
CommercialMarketing
BrandFan engagement
eSportsFinancial
GrassrootsTechnology
Organisational Strategy
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The organisational strategyImpor tance o f hav ing a s t ra tegy
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03The basics of strategic management
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The strategic drivers modelBas i c s o f s t r a teg i c management
Monitoring
Vision
DriversConstraints
Critical success factors
Current situation
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The four questions of strategic managementBas i c s o f s t r a teg i c management
Where are we currently?
Where do we want to go?
How do we get there?
Are we getting there?
Internal assessment
External Assessment
Strategic Plan
Resources, Budget, Structure
Monitoring
Evaluation
Vision and Mission
Values
Goals
Objectives
Assessment
Implementation
Monitoring
Strategy
Critical Success Factors
DIPLOMA IN CLUBMANAGEMENT
The strategic pyramidBas i c s o f s t r a teg i c management
VisionAspiration of the organisation
MissionReason for being of the organisation
StrategyWhere the organisation is, where it aims to go and how to reach it
Goals & objectives - Strategic PlanBased on identified pillars, targets that the organisation aims for
StructureTo implement the strategy, based on responsibilities, timings and resources
Stakeholders
Values
Critical Success Factors
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Long-term – 5 years
Future tense
Directional
Original
Foundational
Connection staff
Audacious Memorable
VISION – Where ? MISSION – Why ?
Descriptive
Short and concise
Vision and missionBas i c s o f s t r a teg i c management
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04The strategic plan
DIPLOMA IN CLUBMANAGEMENT
§ Used to define how human, financial and physical resources will be allocated to achieve short-term goals and tactical objectives over the course of the next 12 months
OPERATIONAL PLANNING
§ Used to set long-term goals and objectives following an internal and external situation analysis
§ Articulated Plan
§ Strategic differentiation
§ Organisational engagement
§ Organisational transformation
STRATEGIC PLANNINGOPERATIONAL PLANNING
Strategic planning vs operational planningS t ra teg i c p l an
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A 4 year strategic plan requires 4 operational plans funded by 4operating budgets
Strategic elementsS t ra teg i c p l an
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Desired outcomesClear
objectivesQuality standards
Activities to be delivered
Staffingrequirements
Resourcerequirements
Leadership approval
Implementationtimetables
Monitoring process
Characteristics of a successful strategic planS t ra teg i c p l an
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TIPS
No more than 5 to 6 objectives per goal – modular approach
Use RACI approach
Linked to budgets
Yearly approach works best
SMART objectivesS t ra teg i c p l an
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Statement of strategy
Annual operational
plans & budget
Departmental objectives
Individual objectives
Impact of strategic planningS t ra teg i c p l an
DIPLOMA IN CLUBMANAGEMENT
ACTIVITIES
Means by which objectives are implemented
Specify what will be done, when it will be done, who will do it, what it will cost and what it will achieve
Typically of one year orientation
Allocation of resources
Links to the setting of annual budgets
Action planS t ra teg i c p l an
DIPLOMA IN CLUBMANAGEMENT
Values: Transparency, accountability, integrity, solidarity, courage, justice and democracy
Vision:Making football truly global
Mission: Ensure a clean sport where fair-play and the core values are applied
throughout the pyramid structure from FIFA to the grassroots of football
04Education,
Football Development &
Social Responsibility
030201
Competitionsand events
Corporate governance
Footballgovernance
4 Core Areas
11 Goals
44 Objectives
4 yearly plans
Strategic House Model – FIFA Strategic Plan 2020-23S t ra teg i c p l an
DIPLOMA IN CLUBMANAGEMENT
Communication planS t ra teg i c p l an
• Is an important part throughout the planning and implementation processes
• Involve the stakeholders in disseminating the message
• Report in a timely manner• Report progress and successes• Consider adapting the message to the
target group
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PDCAcycle
DO
PLAN
ACT
CHECK
Establish the Strategic Plan
Plan processes, resources and timings
Corrective actions
Analyse the differences
Develop and implement the plan
Execute the processes
Study the actual results
Compare against the expected results - baseline
Monitoring and reportingS t ra teg i c p l an
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Communication planS t ra teg i c p l an
• Timely progress monitoring• Quantitative & qualitative information• Link project & budget• Detail adequacy• Adapt when necessary • As automated as possible• Stakeholder engagement• Communication plan
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05The strategic and operational planning cycles
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The Strategic planning cycleP lann ing cyc l e s
STRU
CTU
RE
S t r a t e g i c p l a n n i n g c y c l e( 4 - 5 y e a r s ) – B o a r d l e v e l
OUTPUT
INITIAL
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The Operational planning cycleP lann ing cyc l e s
A n n u a l o p e r a t i o n a l p l a n n i n g c y c l e – M a n a g e m e n t l e v e l
OPERATIONALPLAN
• Functional structure
• Projects / pillars• Goals• SMART
objectives• Activities
OPERATIONAL BUDGET
• Revenues vs costs• Statutory vs
managerial• Top-down vs
bottom-up• Cost centres• Cost drivers• Expense nature• Cash-flow
ACTIVITY REPORT
• Functional structure
• Projects• Achievements• Explanation
deviations• Hints next
operational plan• etc
YEAR END FINANCIAL ACCOUNTS
• Revenues vs costs• Statutory vs
managerial reporting
• Compliance laws and regulations
• Financial result• Cash flow• Deviations• etc
Aligned
STRU
CTURE
Aligned
Compare and evaluate
32
DIPLOMA IN CLUBMANAGEMENT
06Examples from the
football world
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The world of football - VISIONExamp les
To be the best football club in the world both on and off the pitch, and to help us achieve this we live by the UNITED values:
• United• Non-discriminatory
• Innovative
• Team-orientated• Excelling
• Determined
Become the most admired, loved and global sports institution in the World
• Sporting excellence • Social impact • Commercial development
A chance to change the World of sport
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The world of football - VISIONExamp les
More than a club – we want it to be a community
We envisage the consolidation of the club in the highest category through promotion and strengthening in the sporting, economic and infrastructural dimensions and having a strong emphasis on social aspects
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The world of football - MISSIONExamp les
A club which is a world leader in football and basketball that, through its sporting achievements, fulfils the expectations of all of its supporters both nationally and internationally, that preserves its important historical legacy, that manages its heritage with rigour and transparency to benefit its members, and that acts with social responsibility and good corporate management
To facilitate the development of sporting activities in Hong Kong
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The world of football - MISSIONExamp les
1. The name of our club is and will remain Football Club Gelsenkirchen-Schalke 04 e.V. It is and will remain a club within the meaning of the German law on clubs, societies and associations.
2. Our club colours are and will remain blue and white. Whenever possible, this should also be the playing kit of the club’s teams.
3. As Schalker we reject discrimination and violence. We show racism the red card and actively promote tolerance and fairness.
4. Our collective goal is sporting success. In pursuit of this goal, however, no one may endanger the existence of our club or violate the values set forth in this mission statement.
5. The roots of our future lie in our past. We wish to actively shape them, especially in the areas of:
• Sporting development • Retention of members, fans, employees and sponsors
• Business development • Social responsibility
A sense of proportion, responsibility and endurance are the prerequisites for ensuring Schalke remains our Schalke in the future.
DIPLOMA IN CLUBMANAGEMENT
Sportsmanship Sporting excellence Team philosophy & professionalism
Innovation Developing young people
Social & economical responsibility
Respect Transparency & integrity
Acceptance & inclusion
The world of football - VALUESExamp les
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The world of football – GOALS & OBJECTIVES
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The world of football – GOALS & OBJECTIVESExamp les
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The world of football – IMPLEMENTATION FRAMEWORKExamp les
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KEY LEARNINGS
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DIPLOMA IN CLUBMANAGEMENT
The need and importance of strategic management in the football industryThe steps necessary to define and implement a strategy
The interaction between strategic and operational planning
The key elements of strategic planning
Key learningsS t ra teg i c p l ann ing
The structure should follow strategyThe importance of communication
The examples from the football industry
DIPLOMA IN CLUBMANAGEMENT
Thank you!
DIPLOMA IN CLUBMANAGEMENT