1. Business Planning
Hossam Weiss, PE, PMP, PgMP

2. Hossam Weiss
Over 20 years of progressive experience in project management,
program management, portfolio management, general
management and business planning.
Experience working with several companies including Siemens
Corning - Siecor, Automated Prescription Systems, Nestle
Purina, Kraft Foods, Cargill Foods, Katakit, MGC, Russell
Stover Candies, and Zodiac Aerospace.

3. Education and Qualifications
 MBA - University of Texas at Arlington. Expected 2016
 Bachelor of Science Degree, Mechanical Engineering – University of Texas
at Arlington. 1991
 Licensed Professional Engineer – State of Texas board of professional
engineers, USA (#96339)
 Project Management Professional PMP (#474047) – PMI, Pennsylvania,
USA
 Program Management Professional PgMP (#1259842) – PMI,
Pennsylvania, USA
 First place winner of "JCI Best Business Plan" competition in 2008. JCI –
Syria
 Completed a mini MBA and attended a large number of management and
soft skills training events (List Available)
 Instructed project management and business related courses in several
occasions

4. Objectives
 Give the attendants all necessary basics to
perform business planning activities within
Zodiac.
 Explain how business planning can help the
organization and the key points to ensure
success.
 An introduction to the basics of business
planning process including analyzing, deciding,
planning, implementing, and monitoring and
control.

5. Outline
 Introduction and terminology
 Mission Vision and Values
 Performing situational analysis
 SWOT
 PEST
 Porter’s Five
 Strategy formulation / global goals / objectives / budget
 Measurements / KPIs / Balanced Scorecard
 Roles and responsibilities
 Conclusion

6. Introduction and terminology

7. Business Planning
A process which enables your organization to act
in unison to achieve company-wide goals in all
areas of the business.
Unison = Unity or Harmony

8. Key planning questions
 Where are we now?
 How did we get here ?
 Where would we like to be?
 How do we get there?
 Are we on course to achieve our targets?

9. Business Planning
The real value of doing a business plan
is not having the finished product, but
the process of research and thinking
about the company’s business in a
systematic way.

10. Business Planning
The act of planning helps the company
to think things through thoroughly,
study and research when the
company is not sure of the facts, and
look at ideas critically.

11. Strategic Planning
Core
Values
Vision
Strategy
.
.
Mission
Project Portfolio
planning and
management
Management of
Authorized programs
and projects
Management of on-
going operations
High level operations
planning and
management

12. Sequence of Strategic
PlanningAnalyse
Decide
Plan
Implement
Monitor & learn

13. Strategic Plan
The strategies converted into business
plans - responsibilities, actions,
resource requirements, measurable
deliverables - shown as KPIs.

14. Synergy
In general, synergy (pronounced SIN-ur-jee ,
from Greek sunergia , meaning
"cooperation," and also sunergos ,
meaning "working together") is the
combined working together of two or more
parts of a system so that the combined
effect is greater than the sum of the efforts
of the parts.

15. Synergy
 In business the term describes a hoped-for ,or real,
effect resulting from different individuals,
departments, or companies working together and
stimulating new ideas that result in greater
productivity. Synergy in terms of management and
in relation to team working, refers to the combined
effort of individuals as participants of the team.
 Positive or negative synergy can exist. An easy way
to interpret and understand both positive and
negative synergy (Antagonism) is: Positive: 2 + 2 =
5, Negative: 2 + 2 = 3

16. What is the business plan for?
 A business plan will help the company
clarify its goals and focus on defining
every detail of the company’s business
opportunity.
 Have a clear focus as what we need to
do in the next annual plan.
 It helps the company avoids costly
mistakes later.

17. What is the business plan for?
 Help raise money to implement the plan.
 Help get needed human resource to
implement the plan.
 Determine future projects within the
organization.
 Determine all other needs throughout the
company in order to have a balanced plan.
 It will be revised every year.
 The plan should be organized, complete and
factual.

18. Planning process
1. Understand the business
2. Pre-planning analysis
3. Global goals setting
4. Aligning and lower level strategy formulation
5. Tactical plans and objectives setting and
budget
6. Build in procedures for monitoring and
controlling including risk management

19. Understanding The Business
“Mission Vision and Values”

20. Mission
 Why do you exist?
 A concise statement of the purpose of the
organization.

21. Vision
 What will success look like?
 What we want to be?
 A concise statement that
defines the ambitions of the
organization.
 Often in somewhat
“visionary” and usually in
non-measurable terms.

22. Values
 What do you stand for?
 What is important to us?
 What values should guide our behavior?

23. Why Do we Need Mission &
Vision?
Executive - It drives the strategy
Middle management - It focuses decision making
Operating staff - It guides action in all areas of
the business

24. Visions - Good and Bad
 Covers the breadth of the
business for Shareholders,
Customers & Staff
 Stretching & inspirational
yet achievable
 Meaningful to Staff,
Customers & Shareholders
 Specific to your business
 Competitive
 Sets clear expectations for
detailed Strategies, Plans &
Actions
 Sets out some key
standards of performance
 Capable of being measured
 Wishful statements /
Unrealistic
 Generic in thought and word
 Could be anybody’s
 Mere words on paper
 For the outside world, but
not the people who work in
it
 Complacent (Self satisfied)
 Cannot translate into Plans
& Actions
 Is “Nice” but harmless (to
the competition)!!
A Good Vision... A Poor Vision...

25. Missions & Visions simple check-
points
If:
 Majority of employees do not understand the
organization ambition
 Majority of employees do not believe in it
Then:
 Something is missing
 Management are not giving effective leadership

26. Values simple check-points
Do you live all your values?
 Management live it.
 Decisions made based on it.
 Employees believe in it.

27. Organizational culture
Organizational culture describes the psychology,
attitudes, experiences, beliefs and values
(personal and cultural values) of an
organization.
It has been defined as "the specific collection of
values and norms that are shared by people and
groups in an organization and that control the
way they interact with each other and with
stakeholders outside the organization."[

28. Planning process
1. Understand the business
2. Pre-planning analysis
3. Global goals setting
4. Aligning and lower level strategy formulation
5. Tactical plans and objectives setting and
budget
6. Build in procedures for monitoring and
controlling including risk management

29. Performing Situational Analysis

30. Situational Analysis
The classic approach at longer-term
"strategic" planning starts with an analysis
of the current and expected future
situation - both the external situation ( over
which the organization has no effective
control ) and the internal situation ( over
which the organization SHOULD have
effective control ...).

31. Levels of depth of analysis
1. Good judgement – instinctive
2. Careful and deliberate analysis

32. Situational Analysis
Understanding the organisation, the market, and the competition.
 Where we are now?
 What factors will condition our future options?
Requiring :
 Honest – Remember Tsun Zu (Know your self and the enemy)
 Real (not modest).
 Careful thought
 Willingness to use in planning decisions

33. Internal Analysis Tools
1. SWOT
2. Trend analysis
3. Vision / Mission / Values / Culture
4. Lessons learned

34. External Analysis Tools
1. SWOT
2. PEST
3. Porter’s 5
4. Other

35. Appraisal of the competitor
 Who are your competitors?
 Why are they competitors?
 What do you know about them?
 What do you need to know about them?

36. Appraisal of the competitor
 How he thinks?
 What are his strengths?
 What are his weaknesses?
 Where he can be attacked?
 Where the risk of his attack is greatest?

37. Sources of Competitor Information
 Published report & accounts
 Internet
 Product / service advertising
 Benchmarking
 Staff movement
 Others ...

38. SWOT
Strengths, Weaknesses, Opportunities,
Threats:
A recognized international standard
methodology for analyzing current and
future business prospects.
A management tool for "strategic analysis &
thinking“

39. Strength
 What advantages do you have?
 What do you do well?
 What relevant resources do you have access to?
 What do other people see as your strengths?
If you are having any difficulty with this, try writing down a list of
your characteristics. Some of these will hopefully be
strengths! In looking at your strengths, think about them in
relation to your competitors - for example, if all your
competitors provide high quality products, then a high quality
production process is not a strength in the market, it is a
necessity.

40. Weakness
 What could you improve?
 What do you do badly?
 What should you avoid?
Again, consider this from an internal and external basis: Do
other people seem to perceive weaknesses that you do
not see? Are your competitors doing any better than
you? It is best to be realistic now, and face any
unpleasant truths as soon as possible.

41. Opportunities
 Where are the good opportunities facing you?
 What are the interesting trends you are aware of?
Useful opportunities can come from such things as:
 Changes in technology and markets on both a broad
and narrow scale
 Changes in government policy related to your field
 Changes in social patterns, population profiles,
lifestyle changes, etc.

42. Threats
 What obstacles do you face?
 What is your competition doing?
 Are the required specifications for your job,
products or services changing?
 Is changing technology threatening your
position?
 Do you have bad debt or cash-flow problems?
 Could any of your weaknesses seriously
threaten your business?

43. PEST
Stands for the Political, Economic, Social and
Technological issues that could affect the
strategic development of a business.
Identifying PEST influences is a useful way of
summarizing the external environment in which
a business operates.

44. Porter's Five Forces
1. The threat of substitute products
2. The threat of the entry of new competitors
3. The intensity of competitive rivalry
4. The bargaining power of customers
5. The bargaining power of suppliers

45. The threat of substitute products
 The existence of substitute products outside of
the realm of the common product competitors
which increases the propensity of customers to
switch to alternatives
 Buyer propensity to substitute
 Relative price performance of substitutes
 Buyer switching costs
 Perceived level of product differentiation

46. The threat of the entry of new competitors
 Profitable markets that yield high returns will draw firms. This
results in many new entrants, which will effectively decrease
profitability. Unless the entry of new firms can be blocked by
incumbents, the profit rate will fall towards a competitive level.
 The existence of barriers to entry (patents, rights, etc.)
 Economies of product differences
 Brand equity
 Switching costs or sunk costs
 Capital requirements
 Access to distribution
 Absolute cost advantages
 Learning curve advantages
 Expected retaliation by incumbents
 Government policies

47. The intensity of competitive rivalry
 For most industries, this is the major determinant of the
competitiveness of the industry. Sometimes rivals compete
aggressively and sometimes rivals compete in non-price dimensions
such as innovation, marketing, etc.
 Number of competitors
 Rate of industry growth
 Intermittent industry overcapacity
 Exit barriers
 Diversity of competitors
 Informational complexity and asymmetry
 Fixed cost allocation per value added
 Level of advertising expense
 Economy of scale
 Sustainable competitive advantage through improvisation

48. The bargaining power of customers
 Also described as the market of outputs. The ability of customers to put the
firm under pressure and it also affects the customer's sensitivity to price
changes.
 Buyer concentration to firm concentration ratio
 Degree of dependency upon existing channels of distribution
 Bargaining leverage, particularly in industries with high fixed costs
 Buyer volume
 Buyer switching costs relative to firm switching costs
 Buyer information availability
 Ability to backward integrate
 Availability of existing substitute products
 Buyer price sensitivity
 Differential advantage (uniqueness) of industry products
 RFM Analysis

49. The bargaining power of suppliers
 Also described as market of inputs. Suppliers of raw
materials, components, labor, and services (such as
expertise) to the firm can be a source of power over the
firm. Suppliers may refuse to work with the firm, or e.g.
charge excessively high prices for unique resources.
 Supplier switching costs relative to firm switching costs
 Degree of differentiation of inputs
 Presence of substitute inputs
 Supplier concentration to firm concentration ratio
 Employee solidarity (e.g. labor unions)

50. Areas of competitor strengths and weaknesses …
Porter Competitive Strategy
Products product range and reputation
Dealer / distribution channel coverage, relationships & ability to serve
Marketing and selling market research, product development, sales
Operations technology, scale, vertical integration
Research and engineering patents, R&D capability
Overall costs overall cost efficiency
Financial strength cash-flow, development financing, profitability
Organisation alignment to strategy, focus on purpose
General managerial ability CEO, team co-ordination, depth, adaptability
Corporate portfolio corporate strength v. individual business units
Core capabilities competitors strengths & weaknesses
Ability to grow capacity & capability, market share projections
Quick response capability financial, R&D, operational
Ability to adapt and change fixed costs, exit barriers, major externals
Staying power financial, shareholders, management

51. Planning process
1. Understand the business
2. Pre-planning analysis
3. Global goals setting
4. Aligning and lower level strategy formulation
5. Tactical plans and objectives setting and
budget
6. Build in procedures for monitoring and
controlling including risk management

52. Strategic Plan
The strategies converted into business
plans - responsibilities, actions,
resource requirements, measurable
deliverables - shown as KPIs.

53. Choosing the Core Strategy
 Maximize profit
 Growth
 Diversification
 Partnerships / alliances
 Consolidation
 Innovation

54. Global Goals
 Goals set by top management in view of the
strategic direction that the business must take.
 Defined statement of what we want to achieve -
measurable by amount and time.
 “SMART“- Specific, Measurable, Attainable,
Realistic or Relevant, Time related.
 Sometimes called a "destination statement“.

55. Global Goals
 Clear and consistent with Vision / Mission
 Measurable
 Realistic
 Understood by all who need to know

56. Global Goals
Decide what are the measurable
ambitions of the organisation
within the context of the Vision
“Validate” – whether the ambitions
are mutually achievable and realistic

57. Strategies
The chosen route(s) to achieve the Goals.
This should involve choice, for example,
competing on price, or product range, or
quality, or availability etc.

58. Strategy versus tactics
 Strategy: the broad approach to
achievement of objectives over the long
term
 Tactics: detailed filling-in of measures
designed to contribute to the strategy
Designed to achieve short term goals

59. Cause & effect …
Teamwork
Internal
service
standards
Customer
service
standards
Customer
satisfaction
Customer
retention
PROFIT
Cross‐sell

60. Thinking process

61. Developing a “strategy map”
Two approaches:
 “Post-it” approach:
 Brain storm all the critical factors
 assemble as one map
 Construct simplified map for each global goal or main
strategic theme then consolidate

62. Strategy Map
Financial
Customer
Process
Learning
Introduce
new sources of
revenue
Strengthen
Cash flow
Maximize
the use of existing
assets
Create
professional services
organization
Offer more
products for
consumersBuild
developer
network
Reduce
time to
market
More
granular market
segmentation
Improve
hardware
performance
Develop
leadership
skills
Develop needed
workforce skills and
competencies

63. Lower level strategies
Based on global goals:
 Developing Explicit / Aligned Strategies
 Products
 Customer / market segments
 Distribution
 Financial management
 Etc.
 Strategies for Supporting Functions

64. Typical departmental or functional
plan
1. Executive summary
2. Functional SWOT analysis
3. Other analysis if applicable
4. Objectives and related projects
5. HR plan
6. Budget
7. Assumptions
8. Function related risks if any

65. Objectives
Set by each owner to best achieve the
needs of the global goals.
Objectives represent the lower level
strategies needed to meet the upper level
strategies outlined in the global goals.
Objectives may require projects to be
completed to achieve the objectives.

66. Management By Objective
 Management by objective is about setting
yourself objectives and then breaking these
down into more specific key results.
 (MBO) is a process of agreeing upon
objectives within an organization so that
management and employees agree to the
objectives and understand what they are in
the organization.

67. MBO Principles
 Cascading of organizational goals and
objectives.
 Specific objective for each member
 Participative decision making
 Explicit time periods
 Performance evaluation and feedback

68. Item Definition
Department / Section / Unit
The department that is the main owner for this objective
Global Goal
The global goal which this objective is related to.
Objective priority
Business priority:
High=1
Medium=2
Low=3
Objective Weight
HR prospective - The percentage that this objective weight comparing to all the other objectives. All
the weights for each department objectives must equals 1. This must be completed in cooperation
with HR.
Objective Primary Owner
The objective owner that have the most percentage of owning this objective
Owner Percentage
The percentage that the owner owns this objective
Shared with
The objective owner that have less percentage of owning this objective
Shared with Percentage
The percentage that the shared with owns this objective
Objective
The detailed objective which needs to be SMART
Performance Indicator
The indicator(s) that can measure if this objective is performed as requested or not. The method of
measurement.
Critical success factors (Assumptions)
Any assumptions that must be considered to achieve the objective if applicable.
Objective Deadline
The deadline to achieve the objective
Action Steps
The action steps that needs to be done to achieve the objective
By whom
The action step owner.
Action Steps Deadline
The deadline to achieve each action step

69. Risk Plan
A plan that outlines risks associated with the
business plan and that can affect the
outcome of the plan.
Each risk is monitored, controlled, and
specific response to it is planned during
the year.

70. Building a project portfolio from strategy
Projects should be designed and implemented
to meet objectives.
Strategic
Objective
Target
Measurement
Project

71. Benefits of integration projects into
overall plan
 More relevant, actionable strategic plans
 Fewer failed projects
 Increased visibility for project management
 A stronger, smarter company

72. Budget
A detailed financial statement of the
projected financials for the next year.
Often shown with individual monthly or
quarterly targets.
Must be aligned with the global goals and
objectives.

73. Budget
Budget includes:
 Organization chart review.
 Expenses.
 Capital spending.
 External costs.
 Others.

74. Measurements

75. Planning process
1. Understand the business
2. Pre-planning analysis
3. Global goals setting
4. Aligning and lower level strategy formulation
5. Tactical plans and objectives setting and
budget
6. Build in procedures for monitoring and
controlling including risk management

76. Monitor and control
1. Monitor performance of the annual
business plan - Quarterly reviews
2. Risk register
3. Key assumptions
4. Control changes to plan

77. Monitor and control
 The results of a business should be monitored to
determine whether or not the plan is being
implemented on schedule and within the
budgeted resources allocated to it
 If senior managers are to retain control (whilst
delegating detailed implementation) there must
be an efficient data collection system feeding
back information on progress

78. Measurements
 What gets measured – gets managed
 What can be counted does not always
count
 What counts cannot always be counted

79. Reporting
Examples:
1. KPIs
2. Dashboard
3. Monthly management reports
4. Quarterly update report

80. Key Performance Indicators
Key Performance Indicators are quantifiable
measurements, agreed to beforehand, that
reflect the critical success factors of an
organization .

81. KPIs
 Measure performance of the business plan
 They focus on the aspects or areas of our
organization's performance that are critical
or vital for our ongoing and future success
 They measure out success in key areas
and processes that affect our customers,
our employees and our shareholders or
other stakeholders

82. KPIs
They can be developed for our:
 Total Organization
 Departments or units / sections
 Functions
 Projects
 Teams (processes)

83. KPIs
KPIs need to be in line with overall company
global goals.
KPIs can come from the vision of the
company
The goals for a particular Key Performance
Indicator may change as the organizations
goals change, or as it get closer to
achieving a goal.

84. How will we introduce KPIs?
 Through consultation and involvement of
our employees
 Global critical success factors for the total
organization will be reviewed by the
management
 Team KPIs will be developed by team
members with assistance of a facilitator

85. KPIs will not used to:
 Monitor individual performance
 Discipline employees

86. Example: HR Department
KPI: Workforce Turnover
Description:
Turnover performance and cost impact upon the organization
Measures:
 % of total workforce terminating (70%)
 Total $ cost of turnover (30%)
Associated report:
Workforce Turnover Report

87. Example: HR Department
KPI: Workforce absenteeism
Description:
Absenteeism performance and cost impact upon the organization
Measures:
 Total hours lost to due to absenteeism (% of total)
 Total $ cost of absenteeism
Associated report:
Workforce Absenteeism Report

88. Example: PMO
KPI: Program payback
Description:
Tracked payback of all completed programs
Measures:
Total actual payback of program compared to planned payback ($ and
%)
Associated report:
EAC Report

89. Balanced Scorecard

90. Balanced Scorecard Perspectives
RESULTS
FOUNDATION
Financial
Cash flow, ROI, sales growth, market share
Customer satisfaction
Lead times, quality, performance, service, costs
Internal Process
Cycle time, quality, productivity
Employee growth and learning
Create value, improve operating efficiencies

92. Scorecard – example ( 21 measures )
Finance
Profit ( EVA )
Profit margin on sales
Overhead cost ratio
Capacity / space utilisation
Customers
Volume of business
Customer satisfaction
Customer repeat business
Income from new services
Business in “pipeline”
Market Share
Internal Processes
Quality Index score
IT Systems performance
INT standards of performance
Internal communication
Supplier performance
HSE compliance
People & Learning
Skills
Motivation
Staff turnover
Policy compliance
Empowerment / delegation

93. Sample measurements:
Employee Learning and Growth
 Training investment per employee or customer
 Average years of service
 Turnover
 Number of applications for employment
 Productivity
 Ethics violations
 Leadership development

94. Sample measurements:
Internal Business Processes
 Average cost per EC seat
 On-time delivery
 Average lead time
 Inventory turnover
 Ratio of new products to total offerings
 Defect and rework percentage
 Research and development
 Time to market

95. Sample measurements:
Customer Satisfaction
 Customer attrition rates
 Market share
 Response time
 Customer acquisition rates
 Marketing cost as a percentage of sales
 Brand recognition
 Customers per employees

96. Sample measurements:
Financial
 Total assets per employee
 Profits as a percent of total assets
 Return on assets
 Gross margin
 Profit per employee
 Revenue
 Cash flow
 Debt to equity

97. Roles and Responsibilities

98. What would business planning
function be involved in?
1. Planning
2. Reporting
3. Monitoring and control
The Business side that is!

99. Key
A – Accountable for successful completion
of task.
R – Responsible for completion of task.
(Task can be delegated to this person.)
S – Supports task.
C – Requires communication about the task.

100. Analysis
Internal –
Business
level
External
(Market and
Customer)
Departmental or
functional area –
Internal & External
CEO A C C
Business
Planning Function
R S S
Marketing and
Sales VP
C A A
Other Department
VPs
C C A
Managers /
Others
C R R

101. Global goals setting
CEO A
Business Planning Function R
Other Department Heads S + C
Managers / Others S + C

102. Budget
CEO A
Business Planning Function S
CFO R
Other Department Heads S + R
Managers / Others S + R

103. Risk Management
CEO A
Internal audit department R
Business Planning Function R
Other Department Heads S + C
Managers / Others S + C

104. Strategy is everyone’s job

105. Conclusion

106. Planning process
1. Understand the business
2. Pre-planning analysis
3. Global goals setting
4. Aligning and lower level strategy formulation
5. Tactical plans and objectives setting and
budget
6. Build in procedures for monitoring and
controlling including risk management

107. Re-enforce
 Goal = Destination
 Strategy = route
 KPI = Measure how to reach destination

108. Other prospective
 Planning for change.
 Managing change. Effective
implementation is key.
 Monitoring and controlling

109. Barriers to success
 No incentive linked to success of plan
 Weak communication of plan and strategy
 No buy in / No alignment / No will
 Unrealistic plan
 No understanding of strategy
 Budget not linked to strategy
 Too much work outside of plan
 No monitoring

110. The six components of Success -
objectives
competencies actions resources incentives
actions
actions
actions
actions
resources
resources
resources
resources
incentives
incentives
incentives
incentives
+
+
+
+
+
+ + +
+
+
+
+
+ + +
+
+
+
+
=
=
=
=
=
=
confusion
fear
failure
frustration
little
change
chaos
actions resources incentives+ + + + =
planned
results
information+
+
+
+
+
information
information
information
information
+ information
objectives
objectives
objectives
objectives
objectives
competencies
competencies
competencies
competencies
competencies

111. Sequence of Strategic
PlanningAnalyse
Decide
Plan
Implement
Monitor & learn

112. Thank you