11. Strat Bus Plan

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

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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:

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•

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 plan. It is also important to learn from mistakes, and the Business Plan needs to be changed to reflect the new

contingency Strategic learning. 7. Change –

organisation are Strategic Business Plan business develops.

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it is important that any major changes affecting the reflected within the Strategic Business Plan. A is an evolving document, and it will change as a

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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) b) c) d) e)

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

Members Planning Commitment Integrity and ethics Volunteers Management 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. 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.

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

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Develop marketing strategies by answering these questions below: 1. 2. 3. 4. 5.

Who are your members? Define your target market(s). Are your markets growing? Steady? Declining? What membership pricing strategies have you devised? What will attract prospective sponsors to your organisation? 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 • Detail by quarters, second and third years • Assumptions upon which projections were based

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• B.

Pro-forma cash flow

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 • Supplies • Payroll expenses

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• • • • • •

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: • • • • • • • •

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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. What sort of information do you think is relevant for the strategic business plan?

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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

What the organisation stands for

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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

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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. 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.

3.

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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 Planning

Update

Total Review

Responsibility

Values, Vision, Mission

Six-monthly, but only if required

Annually

Board/management

Environmental Analysis

Six-monthly

Annually

Board/management Committees

Strategy Formulation

Six-monthly, but only if required

Annually

Board/management Committees

Targets

Monthly

Quarterly and Annually

Board/management Committees

Monthly

Annually

Board/management Committees

Resource Requirements and Action Planning

Weekly, daily

Monthly

Board/management Committees

Entire Business Plan

Annually

Annually

Board/management Committees

Financial Plans

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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: President Executive Director

Telephone

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: 1. Name:

Portfolio Position: President (Director)

2. Name:

Position: (Director)

3. Name:

Position: (Director)

4. Name:

Position: (Director)

5. Name:

Position: (Director)

6. Name:

Position: (Director)

Management 1. Name:

Position

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

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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

3. Issues facing the organisation The Name of the organisation is faced with a number of issues that are likely to have a direct

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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;  People – Executive Officer and staff  Venue  Skills and expertise  Events  Athletes  Training and development

Our WEAKNESSES in the internal environment;  Lack of funds to reach all areas to broaden participation  Not enough staff power  Not enough volunteers  Ineffective structure  Ineffective governance and management practices  Ineffective Regions  Poor strategic direction, planning and review  Communication  Internal conflicts

Opportunities

Threats

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

T HE

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THREATS in the external environment;  Lack of revenue;  Declining membership  Decline in corporate support  Rising costs  Market presence

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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 Management Plan

Marketing Plan

T HE

Focus areas 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 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: Focus Area: Goal: Objectives:

Management Plan Corporate Governance Structure, and management practices

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

ACTION PLAN

Strategies

Actions

Who Resp.

Review DSR report on governance

Executive and management to meet with Board

Develop a governance manual

Executive to discuss Attend DSR Workshop

Time Line

Forecast

Performance Outcome

Priority

Executive EO

Nil

To improve organisational effectiveness

High

Executive EO

TBD

To have written policy

Priority

01

02

03

04

05

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KEY PERFORMANCE AREA: Focus Area: Goal: Objectives:

Marketing Plan

Sponsorship Financial stability and viability

ACTION PLAN

Strategies

Actions

Who Resp.

Time Line

01

02

03

04

Forecast

Performance Outcome

Priority

05

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KEY PERFORMANCE AREA:

Operational Plan

Focus Area: Goal: Objectives: ACTION PLAN

Strategies

Actions

Who Resp.

Time Line

01

02

03

04

Forecast

Performance Outcome

Priority

05

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KEY PERFORMANCE AREA: Focus Area:

Financial Plan Accounting and Management practices

Goal: Objectives: ACTION PLAN

Strategies

Actions

Who Resp.

Time Line

01

02

03

04

Forecast

Performance Outcome

Priority

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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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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NSW SPORTING ORGANISATION INC. OPERATING BUDGET FOR YEAR ENDING ACTUALS LAST YEAR $

INCOME Registration fees Event income Merchandising Sponsorship Interest Received Grants Other Income

This year being

ASSUMPTIONS

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 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

This year being

ASSUMTPIONS

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 Planning

Update

Total Review

Responsibility

Values, Vision, Mission

Six-monthly, but only if required

Annually

Board/management

Environmental Analysis

Six-monthly

Annually

Board/management Committees

Strategy Formulation

Six-monthly, but only if required

Annually

Board/management Committees

Targets

Monthly

Quarterly and Annually

Board/management Committees

Monthly

Annually

Board/management Committees

Weekly, daily

Monthly

Board/management Committees

Annually

Annually

Board/management Committees

Financial Plans Resource Requirements and Action Planning Entire Business Plan

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: Competitions Committee Primary role: Liaise with clubs in accordance with the strategies of the Strategic Business Plan. THE STRATEGIC BUSINESS PLAN – A GUIDE TO PREPARATION NSW DEPARTMENT OF SPORT & RECREATION

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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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10. Organisational Flowchart The Board MANAGEMENT

The Counci Standing Committees

MEMBERS ASSOCIATIONS or Clubs

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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 Did you find the Strategic Business Plan Guide to be (please circle): Excellent

Good

OK

Poor

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

Area(s) of Improvement

What additional information/support do you feel The Department of Sport and Recreation 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.

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