Resources and Tools to Measure and Implement Objectives and Strategies - Business Context Flashcards
What is a Business Plan Characteristics? (1)
An assessment on the visibility of the business and how it will be managed.
What are the characteristics of a Business Plan?
Simple, clear and concise
Realistic and truthful
Accurate, feasible estimates
Supported by data and figures
Used for management decisions
Used for decisions by banks/investors
Why use a Business Plan? (1)
One of the first things any financial institutions/ investors will ask when raising finance, especially new businesses with no trading record.
What should a Business plan contents contain? (9)
Executive summary - quick overview
Statement of business objectives
Products/services and how you will sell
Resources needed - finance, people
Analysis of your skills/experience
Market analysis - size, segment, value
Marketing plan - with own objectives
Production plan (if you make products)
Location of the business
What is a business plan in measuring success? (1)
The business plan is a working document, it is used to drive the business to achieve its short-medium- and long-term objectives.
It is reviewed, updated and changed constantly, as objectives are achieved, and new goals are set.
What functional plans should a Business plan inform in each department? (5)
Financial plans
Marketing plans
Human resources
Production planning
Research and development
What is KPI’s? (1)
KPI are quantifiable measure of performance to evaluate achievements of an organisation’s objectives over a period.
What is the purpose of KPIs? (3)
Set organisational targets
Milestones to gauge progress
Insights to inform decision making
What are the common types of KPIs? (7)
Productivity
Cost efficiency
Customer satisfaction
Customer retention rate
Revenue growth (sales)
Customer lifetime value
Return on investment (ROI)
KPI Must be measurable to track progress against set milestones in business plan.
What are the KPI management types?
(4)
Strategic
Functional
Operational
Leading versus lagging
What is Leading in KPIs?
Leading KPIs strategically track what is most important/urgent to proactively make any changes that may be required
What is Lagging in KPIs?
Lagging KPIs track what has already happened on a daily/weekly/monthly basis to inform the manager and give them time to adjust activities.
Why is KPIs important?
KPI important to ensure everyone across organisation is working towards achieving its strategic goals.
List the importance of KPIs (7)
Departments and teams stay aligned
Keep everyone moving in the right direction
Realistic checks on progress and risk factors
What works - make adjustments and do more of
What doesn’t work - do less of or make changes
Accountability - ensure everyone is doing what they should
KPI make everyone do what it is they are paid for.
This section is the Implementing and Embedding Strategies
What strategy activities are used for successful implementation? (5)
Communicate vision, values and objectives
Set accountability measures
Focus on the purpose
Action-based plans
Track and share progress
What is the implementation process?
Implementation process of any king of strategy is when the organisation turns its plan into action and activities to achieve the desired objectives.
Why is Cooperation and Collaboration essential? (1)
Cooperation and collaboration are essential, bringing all the factors of the organisation into play
What are the factors for Implementation? (5)
Human resources
Organisation structure
Management process
Operation systems resources
Organisational culture
What happens if there is no cooperation? (3)
Without the cooperation of the people in the organisation there can be no implementation.
All other factors are static.
Human resources are key to success
What are the other factors that are key to success? (5)
Education and training
Ongoing support
Customers front and centre
Quality of product/services
Use of technology/automation
Why can implementation strategies cannot be totally inward focused? (1)
The needs of other stakeholders, especially customers, suppliers and investors must be considered.
Or the organisation could lose sight of why it exists in the first place.
What are the implementation process of turning plans into actions? (8)
Set corporate and functional objectives
Delegate roles and responsibilities
Set the action plan and milestones
Delegate the activities to staff
Execute the plan, monitor progress
Measure performance against KPIs
Take corrective action when necessary
Review implementation process on completion.
Is implementation business plans an ongoing process?
Yes, as organisations will set annual 5-10, and even 25 years business plans with regular reviews.
