Business and Financial Planning Finance for Growth: 10/11 March 2015

Transcription

1 Business and Financial Planning Finance for Growth: 10/11 March 2015

2 Jim Cahill Engineering Graduate turned Accountant Worked at Senior Level in Multinationals to 1998 Finance, Lean, IT, Business Development Roles Business Advisory in 98 Business Process Improvement Training and Coaching Team Development Business Planning Part Time FD EI Lean Advisor Panel, Mentor Panel, BIM Bus Dev Panel Accredited Mindshop Facilitator 2

3 About Mindshop Network of 500 Independent Advisors in 7 Countries Sharing of Experiences and Best Practices Professional Development Support Tools, Training, and Support Online Resources Off the Shelf or Bespoke Training Courses Online Coaching Support Platform 3

4 Roadmap Introductions Framework Challenging the Plan Executing the Plan Summary 1 2 Business Planning Financial Modelling Modelling Tools Case Study 5

5 Business Planning What s the Purpose of Planning Current Trends/Issues Effectiveness of Planning Action Plan Narrative Financials Outputs 6 6

6 Typical Narrative Content Executive Summary HR Review Product or Services Executive Team Market Analysis and Plan Financials (as Appendices) Operations Review If for Funding, How Funds Will Be Used 7

7 Pointers on Plans Begin With the End in Mind Users Users Getting Buy-in Clear Action Items - Responsibility and Accountability Coherence Narrative with Financials, Financials with Historics Demonstrate the Ability to Implement Management of Risk Management Funders 8

8 Strategic Planning Process Sustainable Competitive Advantage Marketing Strategy Operations Strategy Innovation Strategy HR Strategy Financial Strategy 9

9 Using the Strategic Planning Process HOW do we get there? How Where Prepare, Consider the SPP Elements, 3 Voices Identify Gaps between Now and Where Prioritise the Key Issues Now Create Action Plans WHERE will we be in the future? Improving Change Success 10

10 Force Field Analysis VE 1. Training a. Research best practice techniques b. Up-skill quickly online 2. Sales Management a. Engage a new sales manager b. Identify KPI s to measure c. Weekly sales meetings 3. Sales Process a. Review last 10 sales successes b. Document a simple process c. Review industry best practice 4. Product / Service a. Reduce product lines of poor sellers b. Introduce new service to A customers 5. Innovation a. Social media campaign development b. Gather best customer testimonials c. Use You Tube videos to promote products P O S I T I V E S A L E S G R O W T H N E G A T I V E 1. No Accountability a. Weekly reporting of sales activity b. Each sales person explains results 2. No CRM a. Implement Salesforce.com b. Engage virtual assistant to enter new names 3. Leadership a. Owner needs to attend each sales meeting b. Paper outlining vision development for business 4. Customers a. Segment customer base by loyalty b. Identify low hanging fruit opportunities 5. Reward/Bonuses a. Research best practice b. Implement a new bonus structure VE 11

11 Financial Modelling Framework: Activities Resources Financials Who to involve Incorporating trends Importance of Assumptions 12

12 Example of Projection Calculations Comment P&L Balance Sheet Cashflow Opening Balance, (Known/Calculated) 825 Activity (Projection) 500 Closing Balance (Calculated Based on a Rule) 775 Collections (Calculated)

13 Challenging the Plan What-if Conversations Risk Analysis? Scenario Planning 14

14 Risk Minimisation Risk Degree of Severity Lo 1 -> Hi 10 Probability of Occurrence Lo 1 -> Hi 10 Probability of Detection Hi 1 Lo 10 Risk Priority Number = S x O x D Fail to get regulatory approval Loss of Key Developer Existing Product Sales slow sooner

15 Scenario Planning Scenario an internally consistent view of what the future might turn out to be - not a forecast, but one possible future outcome Scenario Planning Steps (Porter, 1985) Identify 4 Scenarios Develop Responses Integrate the Key Ideas Prepare the Base Plan Evaluate the Scenarios Identify Warning Bells Repeat as Required 16

16 Modelling Tools X Profitscout Winforecast (now obsolete) Business Plan Pro Castaway Forecast5 Excel Software 17

17 Executing the Plan Identifying Milestones & KPIs Identify Key Elements of the Plan Identify Completion Dates Decide on Phasing Set Milestones Monitoring Outcomes PDSA Responding to the Unexpected What to watch for? 18

18 Case Study Instructions Review the Case Study Discuss the Case Study Against the Framework Elements: Sustainable Competitive Advantage Marketing Operations People Innovation Finance Consolidate Report Back 19

19 Strategic Planning Process Sustainable Competitive Advantage Marketing Strategy Operations Strategy Innovation Strategy HR Strategy Financial Strategy 20

20 Thank You Jim Cahill www ie.linkedin.com/in/accountsplus 22