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Is a Business Plan Really Necessary? Presented By : Michael Carr ©Carr Management Consultants 2011

Topics For Discussion What do you mean by Strategy? Business Plan Content Notable Examples of strategy What works and what doesn’t? Is your Organisation aligned to your Strategy? Test Point – KPI’s ©Carr Management Consultants 2011

What Do You Mean By Strategy? How far ahead do you think? What constraints do you operate under? Do you have ownership of the plan? Are you an influencer or stakeholder? What tools do you use? ©Carr Management Consultants 2011

Organisation Strategy Business Plan Content Organisation Strategy Financial Plan Operational Plan Sales & Marketing Plan ©Carr Management Consultants 2011

Notable Examples Of Strategy “These are organisations that take an active note of the competitive landscape and then determine a strategy that has been thought through, to deliver the most thorough and potentially positive realisation to the stakeholders benefit” “A Business Plan is just an articulation of that strategy” ©Carr Management Consultants 2011

Notable Examples Of Strategy China $3t Liquid Assets and applying that cash to :- Security – Purchased Secondhand Ukrainian Aircraft Carrier Manufacturing – Purchasing bankrupt industrial plants – e.g. MG and SAAB Investment in supply chain e.g. Raw Minerals - Africa Hedging – protecting their investments - e.g. Eurobonds and Italy USA HP – Withdrawing from hardware manufacture Purchased Autonomy Cambridge UK software house for £7.1b Microsoft & Nokia Seeking to gain market share invested in Nokia with $1b investment ©Carr Management Consultants 2011

Notable Examples Of Strategy Arcadis/Geraghty & Miller publicly state their position on strategy 2000   Strategic review and course change 2005   Strategy 'Choices for Growth' 2008   Strategy 'Building Global Leadership' 2010   Strategy 'Leadership, Balance, Growth' ©Carr Management Consultants 2011

Notable Examples Of Strategy Permison Homes The Group’s financial and operational performance is subject to a significant number of risks, which are subject to continual assessment by management to mitigate and minimise these risks. There are also many risks which are outside of our control which can affect our business. Our principal risks are: Strategy - The Board has adopted its present strategy as it believes it is the one most likely to add the greatest value for shareholders and stakeholders. It is possible that, with time, factors become known that indicate that the strategy currently being pursued is not the most effective……. ……all employees have a clear understanding of the potential benefits and risks of the strategy. ©Carr Management Consultants 2011

How Should You Be Planning? Additional Tools Cluster Modelling Portfolio Management Product Life Cycle Integration into TOP ©Carr Management Consultants 2011

Cluster Modelling $ Attributes Example Speed MHZ Competitor H Competitor X Competitor Z Competitor M Speed MHZ Competitor H Competitor K ©Carr Management Consultants 2011

Portfolio Management Boston Box PROBLEM RISING STAR CHILD +ve & -ve DOG -ve RISING STAR +ve & -ve PROBLEM CHILD -ve CASH COW +ve ©Carr Management Consultants 2011

Profit Improvement £ Product Life Cycle 2010 2014 Sales Margin TIME ©Carr Management Consultants 2011

Value Analysis/Engineering Commonly used within engineering e.g. Motor manufacture will strip down a competitor vehicle Equally applicable to the supply chain – the point at which value is added or removed for the end user/consumer. This is the model used by Direct Line in establishing it’s insurance service in 1990 ©Carr Management Consultants 2011

Today is Thursday – what are the actions? What are you trying to achieve? Are your three core elements aligned? Examine current profit stream management Evaluate opportunity risk/reward methodology Write it down ©Carr Management Consultants 2011

Summary Don’t get bogged down – Keep it simple. Think long-term but insure against the short- term Stay focused Use your KPI’s and if you don’t know ask. Use your mind and trust your instincts. ©Carr Management Consultants 2011

Yes-A Business Plan Really Is Necessary ! ©Carr Management Consultants 2011

Thank You For Your Time www.carr-consultants.co.uk ©Carr Management Consultants 2011