Knowledge Base

About Business Plans

Planning Document

Dr Jack Jacoby
DBA, MBA, BA, CMC, MIMC, AFAIM
Managing Director - Jacoby Consulting Group

This list is a generic table of contents of a typical Planning document prepared prior to the commencement of the planning process outlined in Step-by-Step. Each organisation has its own distinctive character, and as such, the Planning Guideline needs to be adapted to suit its context.

1.0 The Plan Development Project

1.1 Authorization from Executive

1.2 The purpose of this Procedures Document

1.2.1 uniformity of methodology

1.2.2 timing

1.2.3 agreement of basic fundamentals

1.2.4 manage process

1.2.5 achieve project objectives

1.2.6 define terms, expectations and objectives

1.3 Plan Development Process, inter-relationship and inter-dependencies

1.4 Project Timing, schedules and deadlines

1.5 The Steering Committee

1.5.1 its role

1.5.2 personnel

1.5.3 accountabilities

1.6 The Chairman of the Steering Committee

1.7.1 role

1.7.2 accountabilities

1.7 The Project Coordinator

1.8.1 role

1.8.2 accountabilities

1.8 The Ratification Committee

1.9.1 its role

1.9.2 personnel

1.9.3 accountabilities

1.9 External Consultants

1.10.1 their role

1.10.2 their personnel

1.10.3 contact point

1.10.4 accountabilities

1.10 Resource people available for assistance

1.11.1 strategy

1.11.2 marketing

1.11.3 finance

1.11.4 information technology

1.11.5 human resources

1.11.6 this project

2 Planning assumptions and guidelines

2.0 The purpose and function of the Planning Guidelines

2.1 Purpose of Guidelines

2.2 Corporate core objective

2.3 Corporate mission

2.1 Economic

2.1.1 Planning horizon

2.1.2 Demography

2.1.3 Interest Rates

2.1.4 Exchange Rates

2.1.5 Unemployment

2.1.6 Tax

2.1.7 Superannuation environment

2.1.8 Banking & Finance Industry

2.1.9 Socio-cultural

2.1.10 Politico-Legislative

2.1.11 Share Market

2.1.12 Inflation

2.1.13 Property Market

2.1.14 Other asset markets

2.1.15 Savings

2.2 Financial

2.2.1 Corporate Profitability and business unit contribution

2.2.2 Reserves and reserve ratio

2.2.3 Sales productivity

2.2.4 Operating costs

2.2.5 Service levels

2.2.6 Capacity to Pay

2.2.7 Commission structures

2.2.8 Investment returns and hurdle rates - Return on business unit capital

2.2.9 Sensitivity

2.2.10 Risk

2.2.11 Performance Measurement

2.2.12 General Fund and/or Group Fund repayments

2.2.13 Cash Flow

2.2.14 MIS

2.2.15 Benefit Smoothing account

2.2.16 Assets, Liabilities and hypothecation of assets

2.2.17 Gross earning rate

2.2.18 Property Investment margin

2.2.19 Mismatch Reserves

2.2.20 Administration

2.3 Marketing

2.3.1 Industry

2.3.1.1 Structure

2.3.1.2 Competitor status and market shares

2.3.1.3 Growth forecast (short, medium and long term)

2.3.1.4 Major external influences

2.3.1.5 Major overseas trends

2.4.1.6 Compliance

2.4.1.7 Consumerism

2.3.1 Product

2.3.1.1 Major groupings

2.3.1.2 Definition of acceptable product and planning flexibility

2.3.1.3 Pricing

2.3.1.4 Commission structures

2.3.1.5 Lifecycle

2.3.1.6 Development capital

2.3.1.7 Risk

2.3.1.8 Performance Measurement

2.3.2 Consumer

2.3.2.1 Identifiability

2.3.2.2 Accessability

2.3.2.3 Stabilty

2.3.2.4 Sufficiency

2.3.3 Distribution

2.3.3.1 Product-based and market justified

2.3.3.2 Productivity

2.3.3.3 Controls & standards

2.3.3.4 Cost reductions

2.3.3.5 Credit control

2.3.3.6 Performance Measurement

2.3.4 Service

2.3.4.1 Product-based and market justified

2.3.4.2 Productivity

2.3.4.3 Controls & standards

2.3.4.4 Cost reductions

2.3.4.6 Performance Measurement

2.3.4.7 Transaction turnaround

2.3.4.8 Administrative productivity

2.3.4.9 Customer satisfaction

2.3.5 Promotion

2.3.5.1 Product-based and market justified

2.3.5.2 Productivity

2.3.5.3 Controls & standards

2.3.5.4 Cost reductions

2.3.5.6 Performance Measurement

2.4 Informational Technology

2.4.1 Existing systems

2.4.2 New systems

2.4.3 Capital budget issues

2.4.4 Operating budget issues

2.4.5 Planning procedures

2.4.6 Budget allocations

2.5 Human Resources

2.5.1 Manning levels

2.5.2 Downsizing

2.5.3 Retraining

2.5.4 New Skill Acquisitions

2.5.5 Remuneration guidelines

2.6 Management and Organisational Structure

2.6.1 Rightsizing for performance

2.6.2 Process re-engineering

2.6.3 Cost reductions

2.6.4 Upgrading and Training

2.6.5 Performance Measurement

3.0 Deliverables

3.1 Content

3.1.1 Step 2 - Divisional Affirmation

3.1.2 Step 3 - Marketing Assumptions

3.1.3 Step 5 - Product/Strategy Synopses

3.1.4 Step 7 - Detailed Product Strategy Plans

3.2 Quality

3.3 Form

3.4 Performance Measures

3.5 Timing and deadlines

3.6 Deliver to...

4.0 Outcomes

4.1 Specific Board requirements

4.2 Cost Reduction Agenda

4.3 Upgrade, training, recruitment Agenda

4.4 Unity of purpose

4.5 Unity of understanding

4.6 Optimal use of resources, skills and processes

4.7 Organisational Flexibility

4.8 Greater market effectiveness

4.9 Inter-relational and inter-dependency mapping

4.10 Planning methodology established

4.11 Greater profitability and return to stakeholders

| top |