The Essential Management Toolbox E-Book

Simon Burtonshaw-Gunn

• Herausgeber: John Wiley & Sons
• Kategorie: Fachliteratur
• Sprache: Englisch

Seitenzahl: 257

Veröffentlichungsjahr: 2009

Beschreibung

A must have for all practising and aspiring consultants and strategists, this book covers a wide range of consultancy tools and techniques that are well displayed, well described and well referenced. The tools and techniques are helpfully divided in to twenty recognisable skills sectors within management consultancy fields and specialisms.

The depiction of the content with diagrams aids the process of quick reference and ease of understanding. The tools and techniques can be utilised across the whole range of organisational sectors, both private and public. The purpose is not to short cut formal learning, but to provide easy access to a ‘toolbox’ of tried and tested management approaches through a collection of models, tools and occasional brief notes which consultants, managers and scholars can use in a practical way.

Leseprobe

Table of Contents

Title Page

Copyright Page

Dedication

Foreword

Introduction

Acknowledgements

CHAPTER 1 - BUSINESS PLANNING

TRADITIONAL APPROACH TO STRATEGIC IMPLEMENTATION AND BUSINESS PLANNING

THE PLANNING CYCLE

UNDERSTANDING THE PRODUCT/SERVICE

TYPICAL BUSINESS PLAN CONTENTS

PRODUCING THE BUSINESS PLAN

CHECK ON BUSINESS PLAN FEASIBILITY

FACTORS INFLUENCING COMPETITIVE SUCCESS

CHAPTER 2 - CHANGE MANAGEMENT

PATTERNS OF STRATEGIC CHANGE

STRATEGIC DRIFT

TWO EXTREMES OF MANAGING CHANGE

THE CHANGE CURVE (OR LOSS TRANSITION CURVE)

MANAGEMENT OF CHANGE WITHIN AN ORGANIZATION

MANAGEMENT OF CHANGE - CHANGES IN SELF-ESTEEM DURING TRANSITION

CHANGE AND SECURITY

CHANGE PYRAMID

VECTORS OF CHANGE MANAGEMENT

SKILLS MANAGERS NEED FOR HANDLING CHANGE

FOUR CHANGE OPTIONS FOR INDIVIDUALS

RESISTANCE TO CHANGE - LESSONS FROM HISTORY

PLANNING ORGANIZATIONAL CHANGE

MANAGING RESISTANCE TO CHANGE

CONSIDERATION OF CHANGE STRATEGIES

SIX APPROACHES TO DEALING WITH RESISTANCE

A BUSINESS TURNAROUND MODEL

CHOICE OF CHANGE STRATEGIES

ERRORS IN COPING WITH CHANGE AND CONFLICT

ASSESSING READINESS TO CHANGE

FOUR TYPES OF CHANGE ʹJOURNEYSʹ

FOUR KEY CHANGE COMPONENTS

THE EVOLUTION AND REVOLUTION CURVE

KEY ACTIVITIES FOR SUCCESSFUL IMPLEMENTATION

FORCE-FIELD ANALYSIS

CATEGORIES OF RESISTANCE BEHAVIOUR

REACTIONS TO CHANGE

CHAPTER 3 - CUSTOMER RELATIONSHIP MANAGEMENT

A CUSTOMER-FOCUSED ORGANIZATION

CUSTOMER DESIRES

THE POWER OF EXISTING CUSTOMERS

THE SERVICE/PROFIT CHAIN

OBSERVING CUSTOMER BEHAVIOUR

CUSTOMER INTERACTION

LISTENING TO CUSTOMERS

CUSTOMER CARE TRAINING

COMMUNICATIONS WITH STAKEHOLDERS

CUSTOMER BEHAVIOUR

INTEGRATED CUSTOMER RELATIONSHIP MANAGEMENT

PARETO ANALYSIS

CHAPTER 4 - DECISION MAKING AND PROBLEM RESOLUTION

DECISION MAKING, PROBLEM SOLVING AND CONTINGENCY PLANNING

STEPS IN PROBLEM ANALYSIS AND DECISION MAKING

TRADITIONAL FOUR STEP MODEL TO PROBLEM SOLVING

PROBLEM SOLVING PROCESS FROM INDUSTRIAL MANAGEMENT/WORK STUDY

CAUSE AND EFFECT (FISHBONE) DIAGRAM

RELATIONSHIP BETWEEN INNOVATION AND CREATIVITY

MODELS OF DECISION MAKING: TYPES OF UNCERTAINTY

DECISION-MAKING PRESSURES ON THE MANAGER

DECISION MAKING - BERNHARD-WALSH MODEL

CONTINUOUS IMPROVEMENT METHODS - THE 4M CHECKLIST

DECISION-MAKING STYLES

CONTINUOUS IMPROVEMENT METHODS

CONTINUOUS IMPROVEMENT METHODS

NATURE OF KNOWLEDGE

FINDING AND ANALYSING PROBLEMS IN AN INNOVATIVE SYSTEM

MANAGING INNOVATION

FACTORS THAT UNDERPIN A FIRMʹS ABILITY TO RECOGNIZE THE POTENTIAL OF AN INNOVATION

ROADBLOCKS TO ADOPTING AN INNOVATION

INNOVATION MANAGEMENT MATRIX

CREATIVITY IN STRATEGY

CREATIVE THINKING - ‘MIND MAPPINGʹ

DISCOVERY

INNOVATION

IMPLEMENTING NEW IDEAS

TEORIYA RESHENIYA IZOBREATATELSKIKH ZADATCH - ‘TRIZ’

A LIST OF WAYS TO IMPROVE SOMETHING

THE FIVE PRINCIPLES OF LEAN THINKING

CREATIVITY ASSESSMENT GRID

CHAPTER 5 - FINANCIAL MANAGEMENT

ACCOUNTING AND FINANCE

SIMPLE ECONOMIC MODELS

CAPITAL INVESTMENT DECISION PROCESS

UNDERSTANDING THE PRODUCT/ SERVICE - STRATEGIC FOCUS MODEL

CONTRACT CASH FLOW PROJECTION - MILESTONE MANAGEMENT

FINANCIAL RATIO ANALYSIS

APPROACHES TO COST REDUCTION

CHAPTER 6 - INTERNATIONAL MANAGEMENT

THE DEVELOPMENT OF INTERNATIONAL BUSINESS

KEY INFLUENCES ON INITIAL INTERNATIONAL INVOLVEMENT

DIFFERENT WAYS OF BEING GLOBAL

REASONS FOR FOREIGN DIRECT INVESTMENT

INTERNATIONAL ENTRY STRATEGIES

RISK CONSIDERATIONS OF INTERNATIONAL BUSINESS

DEVELOPMENT OF INTERNATIONAL ADVERTISING OBJECTIVES

GLOBAL STRATEGY AND INDUSTRY STRUCTURE

INFLUENCE OF INTERNATIONAL CULTURE ON TASK PERFORMANCE

EXPORT MARKETS - DEMAND AND OPPORTUNITIES

CHAPTER 7 - MARKETING MANAGEMENT

STEPS TO THE PRODUCTION OF A MARKETING STRATEGY

NATURE OF DEMAND

STAKEHOLDER MAPPING: THE POWER/INTEREST MATRIX

MARKETING INFORMATION SYSTEM

PRODUCT - MARKET GROWTH STRATEGIES

STRATEGY DEVELOPMENT DIRECTIONS

PESTLE

MARKETING COMMUNICATIONS

APPROACHES TO PROMOTION

THE MARKETING STRATEGY

THE ‘MARKETING MIX’

USING THE ‘MARKETING MIX’ TO MATCH CUSTOMER NEEDS

DEVELOPMENT OF THE MARKETING STRATEGY (1)

DEVELOPMENT OF THE MARKETING STRATEGY (2)

PRODUCT LIFE CYCLE

UNDERSTANDING PRICE

COMPETITION

ESTABLISHING A PRODUCT/MARKETING MATRIX

SEGMENTING CUSTOMER MARKETS

PRODUCT PERFORMANCE ANALYSIS

INTERNATIONAL MARKET STRATEGY

MARKET ANALYSIS PROCESS - OVERVIEW

BUSINESS INTELLIGENCE FROM MARKET RESEARCH

CHAPTER 8 - ORGANIZATIONAL DEVELOPMENT

THE BASIC MANAGEMENT ORGANIZATION

SYSTEMS THEORY

ELEMENTS OF AN ORGANIZATION

TRADITIONAL (AND EXPANDED MODEL OF) IDENTIFIED MANAGEMENT FUNCTIONS

LINKAGE BETWEEN HR AND ORGANIZATIONAL DEVELOPMENT

UNDERSTANDING ORGANIZATIONAL ACTORS

INFLUENCES ON ORGANIZATIONAL CULTURE

ELEMENTS OF CULTURE

KNOWLEDGE MANAGEMENT

THE PERFORMANCE MANAGEMENT PROCESS

HUMAN RESOURCES STRATEGY - ʹCOPSʹ

CHAPTER 9 - PEOPLE-FOCUSED PERFORMANCE MANAGEMENT

A MODEL OF HUMAN RELATIONS

INDIVIDUAL LEARNING

SELF-MANAGED LEARNING

ACHIEVEMENT OBJECTIVE

ACTION-CENTRED LEADERSHIP

COACHING AND MENTORING

HUMAN RESOURCE PLANNING PROCESS

CORE SKILLS FOR PERFORMANCE MANAGEMENT

EMPOWERMENT

TYPICAL PERFORMANCE MANAGEMENT PROCESS

CONTINUUM OF LEADERSHIP STYLES

THE BASIC MOTIVATIONAL MODEL

UNDERSTANDING CONFLICT - FIVE LAYERS

MODEL OF CONFLICT BEHAVIOUR

THE ALIGNMENT MODEL

MOTIVATION

NEEDS AND EXPECTATIONS OF PEOPLE AT WORK

CULTURE AND PERFORMANCE

MUTUAL OBJECTIVE SETTING AND PERFORMANCE MANAGEMENT

COMMUNICATIONS

MASLOW’S HIERARCHY OF NEEDS - MOTIVATION MODEL

ANOTHER MOTIVATION MODEL - HERZBERG’S TWO-FACTOR THEORY

THEORY X AND THEORY Y - DOUGLAS MCGREGOR

REVIEWING COMMUNICATION EFFECTIVENESS

TYPES OF STAFF

COMPETENCIES

THE JOHARI WINDOW

TEAMWORK AND LEADERSHIP

THE TEAM LIFE CYCLE

STRESS MANAGEMENT

THE LEADERSHIP GRID

GIVING AND RECEIVING FEEDBACK

TRUST

OBJECTIVE SETTING

CHAPTER 10 - PROCESS IMPROVEMENT

THE RE-ENGINEERING SPECTRUM

BUSINESS PROCESS RE-ENGINEERING STAGES

PROCESS MAPPING

PROCESS IMPROVEMENT

STAGES IN THE RE-ENGINEERING PROCESS

STAGES IN BENCHMARKING

EFQM EXCELLENCE MODEL

CHAPTER 11 - PRODUCT MANAGEMENT

THE TECHNOLOGICAL LIFE CYCLE

MANAGEMENT OF DESIGN

LEAN THINKING - WASTE

EMBODIMENT AND DESIGN

OPERATING EFFICIENCY: CYCLE OF PRODUCTION

SEVEN WASTES

VALUE ANALYSIS

PRODUCT LIFE CYCLE COMBINED MATRIX

LEAN PRODUCTION

CHAPTER 12 - PROJECT MANAGEMENT

TRADITIONAL PROJECT MANAGEMENT VARIABLES

PROJECT MANAGEMENT PARAMETERS AND BENEFITS

PRINCIPLES OF PROJECT PLANNING AND MANAGEMENT

PROJECT PLANNING CHARTS

TIME AND COST RELATIONSHIP

PROJECT MANAGEMENT - PROJECT ACCOUNTING TERMINOLOGY

MONITORING AND CONTROL PROCEDURE

THE LIFE CYCLE OF A PROJECT

THE PROJECT AS A CONVERSION PROCESS

PROJECT CASH FLOW PROFILE

NETWORK ANALYSIS

NETWORK NOTATION

NETWORK LOGIC

PROJECT PLANNING NETWORKS

CONTROLLING THE PROGRAMME - CLOSED LOOP FEEDBACK SYSTEM

CONFLICTING FACTORS IN PROJECT RESOURCE SCHEDULING

PRINCE ® AND PROJECT ORGANIZATION

CHAPTER 13 - QUALITY MANAGEMENT

DEMING CYCLE

KEY ELEMENTS IN THE CONCEPT OF QUALITY

QUALITY AND PROFIT - THE PRICE PERFORMANCE GRAPH

QUALITY AND PROFIT - BALANCING OPERATIONAL AND STRATEGIC EFFECTIVENESS

DEMING’S 14 POINT LIST

CONTINUOUS IMPROVEMENT

PERFORMANCE DETERIORATION

FOUR LEVELS OF QUALITY

THE QUALITY IMPROVEMENT PROCESS MODEL

THE QUALITY IMPROVEMENT PROCESS MODEL, QUADRANT 1 DETAILS: IDENTIFICATION

THE QUALITY IMPROVEMENT PROCESS MODEL, QUADRANT 2 DETAILS: ANALYSIS

THE QUALITY IMPROVEMENT PROCESS MODEL, QUADRANT 3 DETAILS: IMPLEMENTATION

THE QUALITY IMPROVEMENT PROCESS MODEL, QUADRANT 4 DETAILS: EVALUATION

EFQM THE EXCELLENCE MODEL

CHAPTER 14 - RISK MANAGEMENT

RISK MANAGEMENT - THE TRIPLE DEFINITION

CONSEQUENCES OF FAILING TO MANAGE RISK

RISK MANAGEMENT

RISK MANAGEMENT AS PART OF CONSTRUCTION PRIME CONTRACTING

THE STAGES OF RISK ANALYSIS AND MANAGEMENT

INTEGRATING RISK MANAGEMENT WITH OTHER PROJECT MANAGEMENT FUNCTIONS

RISKS ON CONTRACT CONSIDERATIONS

BALANCING RISK AND CONTROL

BUSINESS CONTINUITY PLANNING

PROBABILITY VERSUS IMPACT

RESPONSE TO RISK

CONSIDERING RISKS FOR CONTRACT SELECTION

CHAPTER 15 - STRATEGIC MANAGEMENT

INTER-RELATED STRATEGIES

A SUMMARY MODEL OF THE ELEMENTS OF STRATEGIC MANAGEMENT

THE FAMILY OF PLANS

SWOT ANALYSIS

SWOT ANALYSIS - POTENTIAL FEATURES

PORTERʹS ʹDIAMONDʹ THEORY

A MODEL FOR STRATEGIC ANALYSIS

STRATEGIC MANAGEMENT AND ENVIRONMENTAL PRESSURES

UNDERSTANDING THE LEVELS OF STRATEGY

STRATEGY FORMULATION PROCESS

7S FRAMEWORK (SOMETIMES CALLED MCKINSEY 7S MODEL)

IMPLEMENTING STRATEGY - KEY FORCES

IMPLEMENTING STRATEGY - A WORKING MODEL

THE LINK BETWEEN STRATEGY AND PLANNING

A PERSPECTIVE ON BUSINESS STRATEGY AND HR STRATEGY INTERDEPENDENCE

MOTIVES FOR GOING ʹGREEN ʹ

CHAPTER 16 - SUPPLY CHAIN MANAGEMENT

A SUMMARY MODEL OF THE ELEMENTS OF SUPPLY CHAIN MANAGEMENT

ADVERSARIAL VERSUS PARTNERSHIP APPROACHES

RISKS AND SUPPLY CHAIN MANAGEMENT

ENVIRONMENTAL FRAMEWORK FOR THE SUPPLY CHAIN

FACTORS ON THE DESIGN OF A LOGISTICS SYSTEM

SUPPLIER/BUYER RELATIONSHIP

STOCK ORDERING STRATEGY

VARIATION OF COST WITH ORDER SIZE

TYPES OF STOCK

JUST IN CASE STOCK

SUPPLY CHAIN ANALYSIS

TYPICAL RESULTS OF A SUPPLIER REALIGNMENT PROCESS

SUPPLY AND DEMAND MISALIGNMENT

INPUTS INTO MASTER PRODUCTION SCHEDULE

SUPPLY CHAIN POSITIONING MATRIX

MATERIAL REQUIREMENTS PLANNING

STAGES IN THE BUYER/SUPPLIER RELATIONSHIP LIFE CYCLE

THE PURCHASING CYCLE

MODEL OF COLLABORATIVE WORKING/ PARTNERING COMPONENTS

‘Above ground’ components

MODEL OF PARTNERING IN ACTION

ELEMENTS OF A PURCHASING ORGANIZATION FOR A CAPITAL PROJECT

CHAPTER 17 - TIME MANAGEMENT

‘TIME STEALERS’

MAKING TIME: IMPORTANCE VERSUS URGENCY

CHAPTER 18 - UNDERTAKING RESEARCH

TYPICAL RESEARCH PROCESS

SELECTION OF RESEARCH STRATEGIES

SOURCES OF EVIDENCE

SELECTING THE RESEARCH APPROACH

SELECTING THE RESEARCH STRATEGY

METHODOLOGICAL TRIANGULATION

RESEARCH CONSIDERATIONS

CHAPTER 19 - WORKING AS A MANAGEMENT CONSULTANT

SEVEN C CONSULTING PROCESS

THE ROLE OF THE MANAGEMENT CONSULTANT

VALUE ADDED OF CONSULTANCY TO THE CONSULTANT ORGANIZATION

VALUE ADDED OF CONSULTANCY TO THE CLIENT ORGANIZATION

CONSULTANCY MODELS FOR HELPING ORGANIZATIONS

TYPES OF CONSULTANT

GENERIC CONSULTANCY PURPOSES

CONSULTANTʹS CHECKLIST FOR CONTRACTING

A RANGE OF CONSULTANCY SERVICES

THE CONSULTING PROCESS

TEN TIPS TO ENHANCE ORGANIZATIONAL CONSULTING SUCCESS

MAXIMIZING THE VALUE OF PROFESSIONAL NETWORKING MEETINGS

TWELVE STEPS OF CONSULTING

CHAPTER 20 - WORKSHOP FACILITATION

THE THREE COMPONENTS OF FACILITATION

THE ROLE OF THE FACILITATOR

THE ROLE OF THE WORKSHOP ATTENDEE

MODES OF FACILITATION INVOLVEMENT

RELATIONSHIP BETWEEN FACILITATOR, GROUP AND THE TASK

FORCE-FIELD ANALYSIS

FACILITATORʹS CHECKLIST

GUIDELINES FOR FACILITATING SMALL GROUPS: 4 TO 12 ATTENDEES

GUIDELINES FOR FACILITATING LARGE GROUPS: MORE THAN 12 ATTENDEES

THE WORKSHOP LIFE CYCLE AND ITS FOUR CONTENT PHASES

REFERENCES

INDEX

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British Library Cataloguing in Publication Data

Library of Congress Cataloging-in-Publication Data

Burtonshaw-Gunn, Simon A.

The essential management toolbox : tools, models and notes for managers and consultants / Simon A. Burtonshaw-Gunn. p. cm.

Includes bibliographical references and index.

eISBN : 978-0-470-68743-7

1. Management. I. Title.

HD31.B - dc22 2007050374

A catalogue record for this book is available from the British Library

eISBN : 978-0-470-68743-7

Typeset in 11.5/15pt Bembo by SNP Best-set Typesetter Ltd., Hong Kong

Printed and bound in Great Britain by TJ International Ltd, Padstow, Cornwall, UK

To ‘The B-Gs’ - Carole, Alex and Edward

FOREWORD

This book from Simon Burtonshaw-Gunn will be of great use to management consultancy practitioners at all levels. It covers a wide range of consultancy tools and techniques that are well displayed, well described and well referenced. The reader will find the tools and techniques helpfully divided into 20 recognizable skill sectors within management consultancy fields and specialisms. There is no reference source available currently that concisely lists and briefly describes management consultancy tools and techniques across such a wide range of sectors. The contents are written up by the author with the accuracy and brevity of the unique blend of an experienced practitioner and a seasoned educator. This is also reflected in the author’s unerring choice of safe, reliable, robust and instantly recognizable models, principles and practices. The method of depiction of the content, mainly in diagrammatic form, aids the process of quick reference and ease of understanding. The tools and techniques can be utilized across the whole range of organizational sectors and both the private and public sectors.

The tools described will be useful to the inexperienced management consultant to explain the working of tried and tested interventions and relating them back to solid and trusted reference books. The value of this is for the beginner to have a quick reference source and then, if necessary, undertake further and deeper research into the methodology from the identified source. There are clear benefits in this to contribute towards the professional and personal development of the management consultancy practitioner.

For the more experienced management consultant there is always an advantage in having a ‘quick reference’ source of tools and techniques to remind them of the specifics of a principle or to enable a common understanding to be established in a consultancy team or with a client.

Thus, I can envisage that this book, with the simple idea of being a repository of the ‘bare bones’ of management consultancy tools and techniques, will be of great value to all management consultants (and managers) in the field.

Alan Beckley

Alan Beckley is a company director of several management consultancy companies that hold ISO 9001 accreditation and IBC Recognized Practice status; he is an operational management consultant. He is also the External Verifier for management consultancy qualifications provided by the Chartered Management Institute (CMI) and an Assessor for the Institute of Business Consulting (IBC) for the Certified Management Consultant (CMC) award. He has been the managing editor of the IBC’s Professional Consultancy web-based quarterly management consultancy magazine for several years.

INTRODUCTION

With a technological background the use of engineer’s tables and formulae has for me been a common occurrence to help both in my student days and as a practising professional. In progressing a career in management it seems that a similar reference book is absent despite a relentlessly growing list of management and business publications. Even a brief scan of the bookshelves will reveal that there is a wide spectrum from specialist publications to generalist ‘Bluff your way in . . .’, ‘Dummies guide to . . .’ and others claiming to provide MBA knowledge from a day’s reading.

In the same way as providing engineers with a formula that relies on a level of prior knowledge and competence, the purpose of this book is not to short-cut any formal learning and understanding of the use of established and practical management tools and techniques but to provide an easy access to various management approaches through a collection of models and occasional brief prompting notes. The intention of this book is to provide a set of tools and models from tried and tested sources which can be used by scholars, practising managers, experienced consultants or newcomers to the profession to use in a practical way.

Just like the typical craftsman’s toolkit rarely are more than a few tools used on a single project; nevertheless, the advantage of a full set of tools at least provides the opportunity to select the correct, efficient and safe tool - even if this is no guarantee of the proficiency of the user! While there will always be specialist tools for an expert - rarely needed by the majority of users - the generalist tools provided in this book cover a range of generic management themes. There is a widely held view that many management consultancy tools feature the use of a two by two matrix - and while this book does seem to support this view, these should be considered to be the equivalent of a set of spanners as each one may have the same appearance but will differ in its application. Where possible I have made reference to the origin of the models and tools in this book to guide the reader to where further information and detailed ‘operating instructions’ may be gained. Full details of the material used are provided in the References section.

So often the various topics of management are interwoven: for example, some of the tools described in strategic management are also of use in marketing, business planning, HRM and international business. In many ways the massive topic of ‘management’ itself can be thought of as a giant jigsaw of many interlocking pieces and as such the tools described in each alphabetically arranged section of this book can often be directly used or adapted for use in other management areas.

Many of the tools shown here are from works published over the last 30 years which coincide with the move to specialization and the jigsaw analogy of the field of management with the development of specialist topic areas. Indeed this trend for greater specialization continues as managers have to understand newer developments such as e-commerce and advances in business to business (B2B) and business to customer (B2C) relationships.

ACKNOWLEDGEMENTS

Following the concept of the ‘engineers’ formula handbook’ described in the Introduction I am not claiming to present anything new but from my own experience have tried to compile a useful book for a number of users. Naturally this would not have been possible without the fine efforts from all those management authors, research publications and course notes, etc. which I have collected over the years. As such I am greatly indebted to all whose work appears in the book, and also to my own teachers and mentors who have aided my own journey through many management topics.

As time progresses and new tools, models and techniques become used there is opportunity for us all in the ‘management community’ to develop this further, indeed if you have any comments on the models so far identified or wish to add more for a future edition then I would be very happy to hear from you. My contact details are: [email protected]

I am very grateful to the following publishers, individuals and copyright holders who gave their permission to allow previously published work to be used in this book. Every effort has been made to ascertain copyright and seek permission; however, any omissions will be corrected in any future edition.

• Academy of Management Review

• Christopher Ahoy, Iowa State University, USA

• American Association of Marketing

• American Psychological Association

• Michael Armstrong

• Ashgate Publishing

• Professor Henry Assael, Leonard N. Stern School of Business, New York, USA

• Association of Project Management Group Ltd

• Dr Mike Baxter

• Berrett-Koehler Publishers Inc.

• Blackwell

• Boston Consulting Group Inc.

• Butterworth-Heinemann

• Chartered Management Institute, UK

• Chartered Institute of Management Accountants

• Professor Colin Coulson-Thomas

• Professor Michael Czinkota, McDonough School of Business, Georgetown University, USA

• Department for Work and Pensions, UK

• Edwards-Deming Institute, MIT

• Elsevier

• European Foundation of Quality Management

• Nick Eve, Elements Ltd

• FT Prentice-Hall

• Gower Press

• HarperCollins

• Jean Harris

• Harvard Business Review

• Julie Hay

• Institute for Sport, Parks and Leisure

• Institute of Management Consultants

• Kogan Page

• Liverpool Academic Press

• Dennis Lock

• Professor Simon Majaro

• McGraw-Hill

• New York Productivity Press

• Open University Press

• Oxford University Press

• Palgrave Macmillan

• Pearson Education Inc.

• Pearson Education Limited

• Penguin

• Peter Honey Associates

• Kate Piersanti

• Pitman Publishing

• Praeger

• Prentice-Hall

• Project Management Institute Inc., USA

• Psychological Bulletin

• Kit Sadgrove

• Dr Malik Salameh

• Simon & Schuster Inc., New York

• Dr Stuart Slater

• SPCK Publishing

• Springer Science and Business Media

• Taylor & Francis

• Thompson Learning

• University of Virginia Darden School Foundation

• University of Salford

• John Wiley & Sons

I would also like to record my sincere thanks to those that have supported my efforts in reviewing my draft manuscripts and providing such encouragement. Finally, but not least, my thanks go to Francesca, Jo, Emily, Sam and Natalie and all at John Wiley & Sons for their support and help in bringing this project into reality.

CHAPTER 1

BUSINESS PLANNING

This chapter covers the task of business planning which is applicable to all businesses whether a sole trader or a multinational conglomerate. The production of a business plan is needed to describe the business, its objectives, its strategies, the market it is in and its financial forecasts. It is often used as a tool for measuring the performance of the organization against that intended over a short- or medium-term period, typically three to five years. For many new businesses the business plan may be used as a tool to promote an interest in the business and to secure external funding and as such needs to be undertaken as a serious task. In addition to this, a business plan has several other purposes as it:

• Prompts management to logically examine the business in a structured way and consider what it currently does and what it wishes to do in the future.

• Encourages management to set future business objectives and then monitor progress against the plan.

• Identifies the resources and time needed to implement the business plan.

• Can be used to communicate the key features of the business plan to employees and provide them with an awareness of the business’s direction.

• Provides links to the detailed, short-term functional strategies.

This chapter also shows the basic stages in producing a business plan and the planning cycle which also looks at past performance and what needs to be addressed as new targets and objectives. Indeed the focus on the business plan is likely to be on three areas: setting realistic goals for the business to aim for, demonstrating how its objectives will be met and finally identifying what resources in terms of people, plant and investment will be required by the organization to achieve the plan.

Although there is no set formula for the contents of a business plan, a typical layout is provided in this chapter as a good starting model for those embarking on its production. For those who do so with an external reader in mind - bank, shareholders, etc. - then adopting a common format is likely to convince the lender that the organization at least knows how to portray its business and ambitions in a professional and recognizable way. On completion of the task a checklist on the business plan feasibility is also included, this covers the key questions on the management, marketing and financial aspects of the plan which need to be addressed either directly or indirectly in the plan.

For new businesses the business plan should also describe how the company will operate from its launch until it has established itself in the market. In practice there should be a detailed narrative on the first six months as this is when costs in establishing the business are being incurred - in developing a market, recruiting staff, negotiating with suppliers, etc. - contrasted with no or low income, particularly if part of a supply chain, when customers’ terms of payment are unlikely to be favourable in terms of timescale and hence the subject of cash flow needs to be described. Having invested time, effort and some cost in producing the business plan with its objectives clearly articulated, this should not be limited to senior management or shareholders but should be used in the business and updated as new environmental opportunities and threats arise. This tool will help to keep track of current performance and development plans. The final point to consider is that business planning is not a on/off isolated event; it needs to be used, reviewed and periodically repeated to ensure that the business is achieving its desired level of performance.

TRADITIONAL APPROACH TO STRATEGIC IMPLEMENTATION AND BUSINESS PLANNING

While this model presents the ideal approach, in practical terms this is a much more inter-related process; however, the benefit of the model is to illustrate that determining the Vision and Mission are important steps in strategy formulation and in setting the business plan.

THE PLANNING CYCLE

This simple model has links into research and data gathering, analysis and options studies, strategic management in the form of setting objectives and finally in performance management often related to people performance objectives. While this is shown here in a business planning context it also has applications at an individual level as part of career appraisal and personal development and in training needs identification.

UNDERSTANDING THE PRODUCT/SERVICE

This is a typical approach which can be used to understand a product or service business with a client organization to demonstrate and promote the planning process.

The questions shown below, together with establishing a view of the future for the organization and identifying barriers or constraints, can be linked to a workshop format to maximize the amount of involvement, creative thinking and agreement to a way forward.

TYPICAL BUSINESS PLAN CONTENTS

While there is no set format for a business plan the majority of these follow a typical presentation format; this is mostly because companies looking for investors will want to show that the business is being professionally managed and investors will want to understand the business activities, its future aspirations and the potential that the business wishes to address. Thus a typical layout of a what may be regarded as an extended business plan is shown below:

Executive summary

Company description

Industry analysis

Market analysis

Competition

Marketing and sales

Operations

Management and organization

Capitalization and structure

Development and milestones

Risks and contingencies

Financial projections

Summary and conclusions

Appendices

PRODUCING THE BUSINESS PLAN

Producing a business plan must cover four basic stages of business development:

The management’s best estimate of future operations is set out in a logical and organized way. This should crystallize ideas and identify any problems and areas for further analysis.

To determine when money is required and whether it needs to take the form of loan capital or other forms of funding.

This provides the management with guidelines for running the business efficiently.

To allow the management to assess and control the company’s progress by comparison with financial projections in the plan.

CHECK ON BUSINESS PLAN FEASIBILITY

Having completed the production of a business plan, its success in business depends on three crucial elements:

• The management of the business

• Its approach to marketing

• The money that the business needs and will generate

These three elements are detailed below and testing them against these questions will provide the organization with a level of confidence before it faces any external investor, bank or stakeholder.

Management

• Does the management team have the motivation and skills to deliver the products/services you envisage?

• Does the management team have the skills to look after the administration side of the business, including all of the money matters?

• Has the organization the ability to sell the services to the potential clients identified?

• Are you prepared to modify the business plan in the light of what people want?

• Is the company confident that it is able to manage skills and time to full effect?

• Does it need any new people to make this plan work?

• Does it need ‘different’ people to make the plan work?

• Can the plan work and the business carry on if current key people leave the company for another job, retire, win lottery, etc.?

Marketing

• What is so special about the services that the company intends to provide?

• How do you know that anyone will want to buy them?

• How often will they buy from you?

• How much will you charge for the services and are people/ companies prepared to pay those prices?

• Are you sure that you can provide these services at these prices, make a profit and manage the cash flow?

• Why should anyone buy from the company rather than others in the market?

• Is this the right time to start providing the services that you have in mind?

• Will you be able to develop them as the market develops?

• Have you considered how you will advertise or promote the company’s services and how much will this cost? (See also Money)

• Where will you advertise or promote?

• Do you know who the competitors are and what services/ products they are selling?

• Have you spoken to any potential customers about the company’s services that you provide or intend to provide?

Money

• Will the business make a profit?

• Will you be able to pay each bill as it arrives?

• What financial resources will you need to be successful?

• Are you confident that you can pay back any loans over a reasonable period, and pay the interest?

• Have you researched, listed and costed the expenditure items that you will incur?

• When will income start to flow?

• Which part of the market provides the revenue? Is this secure or high risk?

• What are customers prepared to pay for the company’s services?

• What revenue can we expect from new markets?

• What revenue can we get from repeat business?

• What is the cost of acquiring new business, in bidding, making contacts, marketing, presentations, etc.?

FACTORS INFLUENCING COMPETITIVE SUCCESS

Business performance is determined not just by income from the company’s services and products but also by how it manages its relationship with a number of factors. The model below shows these factors, some of which are outside of the control of the organization. For those tasked or advising on the production of an organization’s business plan, consideration of the model will help to ensure that the major factors have been addressed and planned.

From Edgar P. Hibbert, International Business - strategy and operations, 1997, Macmillan Business. Reproduced with permission of Palgrave Macmillian.

CHAPTER 2

CHANGE MANAGEMENT

All organizations are destined either to perish through business failure from being left behind by the competition or to accept that undertaking change is a natural part of business life in order to keep in line with customer requirements, the need for improvements or customer or fashion demands. While this chapter provides a number of models around managing change, it is stressed that any change management plan is destined to fail unless supported by a main sponsor, often the senior management of the organization. The organization’s stakeholders have to accept that such change is seen as being appropriate for the specific organization and its customer base will respond positively to the change. There are a number of reasons for change, through either incremental drift of lagging behind others or the need for a more large-scale change initiative through evolution or revolution.