Business Plan Templates

Proven Pool Hall Business Plan

Pool Hall Startup Guide for New Pool Room Or Bar Entrepreneurs. Understand what makes a great Pool Hall Business Plan that will get you funded. Understand how to objectively evaluate locations for your pool hall. Learn the mistakes so you save time and money. Included in the plan is: Executive Summary. Customer Segmentation. Management Summary. Personnel Plan. Marketing Summary. Start-up Costs. 5 yr. Sales and Expense Projections. Delivered in Pdf, Business Plan Pro, MS Word and Excel Formats. Read more...

Proven Pool Hall Business Plan Summary


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Develop Project Business Plan

The project business plan identifies and supports the business reasons for conducting the project. In some organizations, this item is known as the business case. It integrates the project's strategic alignment information, and it introduces the project definition and other project information elements. The project business plan is the governing document in the portfolio management process by which project selection and project continuation decisions can be made. Business plan development may be a part of the project management methodology process. Otherwise, project business plan development can be conducted and managed by the PMO or by the portfolio management team (or portfolio administrator). In addition, it should be noted that in some organizations the business plan is created by the business advocate or sales manager, and this option can be incorporated into the process used. The project business plan is constructed to contain certain businessrelevant project information, which...

Validate the Business Plan

The business plan review focuses on different elements as it progresses through the portfolio management process. These different elements support the different decision requirements of a particular project management phase. In general, after initial selection, the validation of the business plan is accomplished according to a review of elements associated with the project phase decision points encountered Solution planning phase. The business plan review focuses on any changes to scope, cost, schedule, resources, risk, and other initial selection criteria. Solution implementation phase. The business plan review focuses on project financial performance and resource utilization (assignment) consistent with the resource allocation plan. Project closure phase. Projects can be closed for a variety of reasons. The business plan review focuses on the achievement of project objectives and lessons learned that can be applied to business decisions on similar future projects. The executive...

Integration of the Business Plan Product Development and Production

The integration of the corporate business plan, product development plans, production plan, master production schedule, material procurement plan, and production control involves the role of a general manager with accountability across the whole process. It is difficult for a project manager to look beyond the project deliverable and it is difficult for the manufacturing control manager to see the project inputs and outputs and their impacts on production scheduling. The linkage of business plan, product development, and manufacturing is made even more challenging when configuration management serves as the basic linkage between the two. In other words, configuration management often works at the interface of designed products and production schedules if the production department does not know what is being designed and released by project managers who are conducting product development, and therefore do not know what they are going to produce. If they have no access not to bill of...

Types of Knowledge and Experience in RD

Figure 16-1 shows the different types of R&D knowledge and experience contained within our hypothetical company's (CRI's) R&D knowledge management system, such as business plan templates, sample business plans, financial models, and so on. These are illustrated as being attached to a specific step in a project plan, in this case the business plan step, which is why the examples illustrated are associated with a business plan. This is also the first concept of context-based knowledge management organizing knowledge and experience around a specific project step. Knowledge related to other steps in development would be attached to those steps.

Experience Gained from Previous Projects

Experience is packaged in a variety of ways. Using samples of past work is an obvious method. CRI attaches sample business plans to its standard business plan step, but then goes even further. Each sample is annotated with the backgrounds of specific approaches, explaining why it was done that way, enabling the project team referring to the sample to understand it better. At the end of each project, the manager of knowledge management invites the project team to submit their experience, their business plans in this example, to be considered as a future best practice. The team annotates these submissions, and the best are selected based on an impartial judging committee. Those examples selected are attached to the appropriate standard steps in the knowledge management system, but more importantly CRI recognizes the team for its contribution to CRI's Body of R&D Knowledge. The appropriate team members are given an award and stock options. CRI puts its money where its mouth is when it...

Integration gateway Portfolio development and management

The process of producing and managing a portfolio of projects is an integrative function from beginning to end. Portfolio development, vertical integration process, involves aligning new projects to align up the organization with top-level strategic and business plans. The integration of projects with business direction is a key high-level activity that begins the portfolio process. In this case, integration means that projects are made part of the fabric of the business projects are seen as instruments of the business plan, focused on business growth and expansion. The way integration is accomplished at this level involves the following steps

When are projects identified

The way in which many organisations choose to achieve their vision is to put in place a combination of business-as-usual and change initiatives to deliver step-by-step improvements and value along the way. Once a year, those organisations develop their business plans, the result of which is usually a combination of old and new initiatives that will help achieve the business strategy. Continuity is at the heart of the argument for a form of management of business change. Projects are being identified all the time, so there is a significant risk that initiatives can be identified and initiated that have little or no reference to the business plan, its sponsors or the organisation's vision for the future. In recognising that a relationship exists between a project and the business plan, it should be possible to confirm that the list of projects being proposed or undertaken will substantially deliver the company's change agenda. So if an organisation wishes to know its true destination,...

Conduct Strategic Business Collaboration

Strategic business collaboration conveys and relates to the exchange of business policies and guidance within the relevant organization and across the enterprise. This business level generally can be associated with executives and senior managers formulating business strategy and setting the course for business pursuits. In the project management environment, this is represented by the PMO charter and subsequent development of PMO functionality to serve the business interests of the relevant organization. In other business environments, it represents the development, approval, and implementation of business unit operating and business plans.

Business and strategic planning integration issues

Integration at the highest level, business and strategic planning, involves the coordination of company and business planning with project selection and financial planning. This means that the beginning of project integration is making sure the project itself is aligned with the company's strategy and plan for growth, whether written or simply a shared vision of company leadership. Analysis of weaknesses in the strategic planning process, for instance, would be performed in the light of past company performance and market analysis. Integration of business plans with marketing plans means that a project is selected with a full view of how the project will serve the company in its growth objectives. From a personal standpoint, this means that the company leadership coordinates and communicates with program and project managers, and has access to information that facilitates project integration management.

Program or multiproject management

Program managers typically hire and supervise other project managers. They are responsible for developing the company's project manager workforce, building and advancing project managers into higher levels of responsibility. They coach project managers. Program managers serve as the interface between projects and broader company strategies and business plans, thus they are called on to communicate broad purpose to individual project managers and to report individual project results to corporate executives in high-level program reviews.

The Business Development Department

The Business Development Department, separate from Marketing Sales, functions as a steering group for deciding which new products or customer requests are to be pursued and which are to be dropped. Factors which they consider in making these decisions are (1) the company's long- and short-term business plans, (2) current sales forecasts, (3) economic and industry indicators, (4) profit potential, (5) internal capabilities (both volume and technology), and (6) what the customer is willing to pay versus estimated cost.

Benefits of project risk management

The benefits of risk management are not confined to large or risky projects. The process may be formalized in these circumstances, but it is applicable for all scales of project and procurement activity. It can be applied at all stages in the project cycle, from the earliest assessments of strategy to the supply, operation, maintenance and disposal of individual items, facilities or assets. It has many applications, ranging from the evaluation of alternative activities for budgets and business plans to the management of cost overruns and delays in projects and programmes.

The Voice of the Skeptic

I find my skepticism to be directly proportional to the PPM software hype curve. The root of my skepticism lies in the benefit and benefit-risk side of PPM. I see bubble charts and Web forms as too simple and shallow to support the depth needed to analyze significant undertakings. Significant undertakings require in-depth business plans with market positioning, detailed financial models, trade-off studies, and competitive analysis. This analysis takes place well before any projects are initiated and continues throughout the life cycle. The approval process is interactive and face-to-face with many PowerPoint briefings. Now, one could argue that the PPM discipline embraces all this, but this embracing is more a declaration of hoped-for ownership rather than value-added. Nothing in the PPM process precludes preparing traditional business plans and analyses. In fact, they are strongly endorsed. Where PPM helps is in dealing with multiple business plans and opportunities.

Validate Project Selection

The project business plan and project resource allocation plan are subjected to a final review by the executive portfolio owner. If project selection actions precede executive portfolio owner review, the relevant executive or board may opt to examine an abbreviated project selection recommendation document, with access to the actual project business plan and resource allocation plan, as needed. The executive portfolio owner then signs the business plan (and accompanying resource allocation plan) to assert the following

Reconfirm Final Business Case

This is one more pass through the business case to prepare for project review. This task finalizes the business plan and business case to reflect any changes from beta testing results, or from analysis of business or brand impacts from the last business plan update. This final review of the business plan anticipates approaching market execution and thus must ensure that the business plan reflects all changes up to this point in product development. Special attention is paid in this task to financial performance, updating forecasts of cash flow and net present value of the product over its life cycle. Issues reviewed for freezing the business plan include market definition, competitive assessment, marketing positioning, customer-internal linkage, brand trademark linkage, commercialization plan, regulatory agency plan, financials, intellectual property plan, financial performance, and strategy for supplier. All of these task outputs are once again reviewed to ensure that any changes or...

Project identification by business objective

Projects are not allocated to departments but identified independently after analysis of the business plan's objectives. They are distinguished by their ability to help achieve an objective, and there are fewer of them because they are not multiplied by the number of departments involved in delivering them.

Terms of Reference TOR Template

The TOR documents the rules that project participants must follow. This document includes the vision, mission roles and responsibilities, project goals, budget, project control and QA processes, and escalation procedures, among other factors. It is prepared specifically to describe goals, activities, and scope of work to be undertaken. It should also provide an outline for the business plan, prototype site, evaluation, and readiness. The TOR should usually be limited to 10 to 15 pages.

Educational Materials

In our business plan example at CRI, the standard step provides multiple links to useful books and training materials. For those doing a business plan for the first time, CRI has an online training program developed by an outside consultant that is linked to the standard business plan step. It also has links to dozens of educational articles on business planning for new products, categorized by topic, along with direct links to several recommended books on business planning available through with CRI's discount. Finally CRI's context-based knowledge management system provides a link to the online version of several books with individual links to sections.

Develop Project Resource Allocation Plan

The project resource allocation plan can be developed separately or incorporated as part of the project business plan. It also should be noted that this activity can be performed as an auxiliary step to the development of a project staffing management plan that is prepared by the project manager as a part of project planning activities.

Who should be involved in managing a project

Projects are a means to create value or achieve desired change and should not exist independently from the business that commissions them. Once its business plan has been developed, the company needs a management team to oversee the whole portfolio of projects. During the year it should

Linking Knowledge to Tasks and Roles

Let's look at this in the context of the Fast-Food Robot project at CRI, as illustrated in Figure 16-3. The business plan step has eight high-level tasks, and one of them is determining the preliminary price for the new product. Attached to that high-level pricing task is CRI's accumulated knowledge and experience in preparing a new product price, and this information is further narrowed down to what will be helpful for the marketing manager, Richard Salisbury, who is working on pricing. When Richard begins working on the pricing task as planned, he sees a lot of uselul knowledge and experience on pricing attached to the task and directed specifically at him.

Incorporation of Financial Information in Project Documents

In some development chain management systems, financial information for a project is treated as a data object and might be automatically incorporated into all project documents that use that information. For example, data from a revenue forecast may be incorporated into a new product business plan, an upcoming management presentation, a summary of new product revenue, and the financial analysis for the project. When the revenue forecast is revised, all of the documents using it are automatically revised as well.

Confirm Project Position in the Portfolio

Projects in the portfolio are examined and considered on their own merit as decisions are made regarding the business plan, project performance, and resource allocation. Now the executive portfolio owner must examine each project to determine whether its current project position in the portfolio is still valid.

Project Definition Document

The project definition document can stand alone but is presented here as an integral part of the business plan. The project definition contains the information and initial guidance used by the project team when conducting detailed project planning activities. Most organizations recognize that the project manager and project team should prepare the project definition, and so it is often completed per guidance contained in the project management methodology.

The portfolio management team

Typically, at the beginning of a financial year, the portfolio management team will be put in charge of a range of projects, including those identified in the business plan and possibly others that have run over from the previous year. This mix of projects is known as the portfolio, which, in common with the wider business, has to flex and change throughout the year. As it does so, the portfolio management team is responsible for commissioning and delivering a value-adding mix of projects within a budget, aligned with the imperatives set out by the business. e identify candidate projects (from the business plan or elsewhere) e commission business cases

The portfolio Procedures in development

This building project would first appear in the business plan as a marketing concept or program objective to enter into a commercial building project consistent with the company's growth plans. Integration of portfolio issues with other company processes requires a planning information system with the following characteristics

Evaluate Resource Allocations

These reviews are conducted in conjunction with business plan reviews and enable the executive portfolio owner to evaluate the status of resource allocation for a particular project, as well as the status of resource allocation for the entire portfolio. The reviews described below should be accomplished according to the decision point encountered at project phases. Conduct solution planning resource review. Detailed project planning begins during the solution planning phase, and adjustments are made to the project business plan and resource requirements based on the refined project scope. Further definition and specificity are provided, and the following considerations should be part of the resource allocation plan review at the project solution planning point

Integrate Projects in the Portfolio

A final executive-level reviewer signs off on the business plan as the approved approach for conducting the project. The executive reviewer also signs off on the resource allocation plan, if presented as a separate document, as the approved approach for staffing the project.

Defining Interim Deliverables

You may find that some interim deliverables represent very large chunks of work. Try to break these down further (see Figure 6.2). For example, suppose you have to produce a business plan as an interim deliverable for your project. You could break this down into a series of interim deliverables such as an outline, the rough draft, final text

Integration Gateway Global Team Composition and Development

This stage involves setting up partnerships and team relationships in all areas necessary to achieve the global objectives of the business and to support candidate programs and projects. The composition of the team must be aligned with business direction. Teams are composed of team members who possess the competencies and interests globally, across functions, suppliers, and customers that support the broad business plan. Teams are set up at each gateway level of the program, beginning with worldwide partnerships down to program and project teams. The stage is important because integration at every level requires commitments and trusting relationships between key company stakeholders.

Project Plans and Step Planning

Standard steps can also include resource estimates. Resource estimates for a step are the estimated time requirements for each resource required, e.g., a business plan is expected to require 50 person-days for a project manager, 25 for the marketing manager, 50 for the financial manager, and 25 for an electrical designer. We saw this illustrated in Chapter 7, when we discussed resource requirements planning with resource requirements guidelines.

Project Value Proposition

In this sense, for the sponser of a project, the project starts with planning. For clients and sponsers, a project is a means for achieving their business. A project starts with being drafted as a business plan, and whether a project can be started depends on whether the plan has business value or brings profit to the company.

Closed Loop Time Collection

CRI implemented a closed-loop time-collection system in its implementation of Stage 4 capabilities. The time collection for a typical week is illustrated in Figure 8-2 for Richard Salisbury's time. His time-entry form shows his scheduled time for the three steps he was assigned to for the first week in February on the Fast-Food Robot project 10 hours for project management, 20 hours for the market study, and 10 hours for the business plan. Richard recorded his actual time by day on the time-entry form for each step four hours on project management on Monday, eight hours on the market study on Tuesday, etc. He also recorded the time he spent on customer support, even though he wasn't scheduled on it. Business Plan

The True Cost of Security

So, rather than fall victim to decreasing IT budgets, let's discuss a proactive stance. As discussed in How to Cheat at IT Project Management , one of the keys to success in the IT world is understanding the company's business plan. No one is going to hand you a blank check you have to be savvy. To that end, we look at some quantifiable and verifiable numbers that can be used to develop a strategy for getting your IT security budget approved.

Program lifecycle and integration of plural projects

Architecture is frequently used in buildings and system designs. It refers to the grand design, rather than the detailed one, to put the holistic plan forward in the three aspects of structuring, functionality and behavioral expressions (Ohara, 1999). To further clarify the architecture, KPM offers a 3S modeling of Scheme, System and Service. Scheme means the business plan which overlaps with the profiling management, but also encompasses the large scope from scenario, justifications and feasibility to the master plan. System is a very comprehensive concept applicable to technical, business and social domains, but here, in program lifecycle, it comes second to scheme with an intent of more or less technical systems of hardware and software to be applied for the scheme intent. The Service model handles the service of operating and maintaining the system to get capital recovery. This is out of the scope of the orthodox type of project management, but the model is critical in other...

Step Identify project infrastructure

Step 2. 7 Identify relationship between the project and strategic planning As well as identifying projects to be carried out, an organization needs to decide the order in which these projects are to be carried out. It also needs to establish the framework within which the proposed new systems are to fit. Hardware and software standards, for example, are needed so that various systems can communicate w ith each other. These strategic decisions must be documented in a strategic business plan or in an information technology plan that is developed from the business plan.

An Introduction to Value Management

The firm shown in Figure 3 has multiple business units and must produce business plans or a program. This program is equal to strategic action plans including multiple projects. If we try to classify programs into two types, one would be a transformation program and the other would be a regular or current program. The difference between transformation and regular programs is the following the former is a new action plan to change the total structure of value chains, whereas the latter is to change task contents or structures. This radical change is related to new markets or new products.

Project identification by department

Editable Baseball Diamond Lineups

How a company identifies projects usually depends on its structure. In the example, the annual business plan starts with the board and cascades through the departments. Each layer of management looks at the plan from its own perspective, identifying activity for which it will be responsible and which will help achieve the board's objectives. This is likely to be a combination of business as usual and a portfolio of several projects. The desired outcome is that by the time the plan has percolated through every layer of management, everyone knows what part they have to play in it. This traditional approach to identifying projects is spectacularly inefficient and demonstrates the importance of managing projects differently. Figure 2.2 shows that there are many interdependencies between the projects. For example, Projects 2, 8, 17, 18 and 22 must all be delivered successfully to meet Objective 2 in the business plan. However, successfully delivering those projects may require joint...

Manage Portfolio Attrition

Executives are responsible for establishing the strategic direction of the organization. That strategy provides the purpose, expectations, goals, and action steps necessary to guide business pursuits. Day-to-day application of the business strategy narrows the range of possible business opportunities to only those distinctly aligned with business objectives. It also ensures that valuable resources are assigned only to those efforts that further the objectives set forth in the strategic business plan. If the PMO represents a business unit (e.g., a department or agency), then the parts of the strategic plan that are applicable to its relevant organization should be considered in lieu of the overall organizational business plan. Keep in mind that a business strategy exists in some form in any viable organization, although it may be called by different names. Part of this PMO effort may be to discern what business strategy documents exist, and this effort could include discussions with...

Lean Production Smoothing

Erp Lean Management

Business Plan Production Plan Business Plan Production Plan Business Plan Production Plan BUSINESS PLAN BUSINESS PLAN BUSINESS PLAN The first element of production smoothing (heijunka) is Customer TAKT, which is the frequency of customer demand and ultimately the frequency at which a product must be produced by the final physical process in order to meet that demand. If it hasn't been said often enough, there would be no need for production smoothing if the customer demand were to be rock-steady at a fixed quantity of demand for each period of execution. Alas, that is not and will not be the case, unless of course the planned economy ever takes root, and production and consumption are dictated by higher authority. Anyone who is familiar with the rise and fall of the planned economy of communism does not expect that to occur. In the S&OP in Lean Commerce, Customer TAKT is calculated from the sales forecast and customer orders, incorporating and allowing for adjustments that are...

Integration with Project Planning Standards

Product Development Project Management

With enterprise project management, these cycle-time standards can be easily maintained in step libraries and automatically applied in project planning. This is illustrated in Figure 10-4. The project manager selects the appropriate step from the step library and positions it in the project plan. In this example, the project team leader selects the step for version C of the business plan step. Similarly, she selects other steps from the step library. In a development chain management system, step libraries can provide a number of benefits beyond accurate, standard, cycle-time calculations. Keep that point in mind, since we'll be revisiting step libraries later on.

Rolling Portfolio Forecasting and Alignment Process

Projects that are already in the portfolio should have a fair and balanced consideration when compared competitively with newly proposed projects. Since sunk costs on the existing projects are unrecoverable, they no longer count against the project and thus should not penalize it. This approach helps to ensure that projects already in place are not unfairly compared to new projects being considered. It also recognizes that the future investment in ongoing projects is likely to be less than for new projects and that killing ongoing projects that are meeting their original business plans but may not be as competitive as newly proposed projects may kill morale.

Resource Requirements Management

The top-down aspect of resource requirements management starts with the project manager and team members distributing project assignments for each person to specific project steps. Anne Miller's assignment distribution for Richard Salisbury is illustrated in Figure 7-8. Richard is assigned as 1.0 FTE (full time) for the first two months, 0.5 FTE (half time) for three months, and 1.0 FTE for June. There are five steps in this phase, but he is only working on three of them Project Management, the Market Study, and the Business Plan. Business Plan Anne uses some comparisons to guide this distribution. She references the estimates that were done in resource requirements planning and the standards established for this resource skill from earlier step guidelines. For example, she assigned Richard to the business plan for 28 days compared to the previous resource requirements planning estimate of 25 and the standard from the step guidelines of 30. There is a significant difference in the...

Project Resource Requirements Planning RRP

In preparation for the Phase 0 review, Anne started planning the major steps for Phase 1, using the standard guidelines for a project of this type. Phase 1 consists of the six steps illustrated in Figure 7-2. Project management is a step that continues throughout the entirety of Phase 1. The first major step is a market study, which included the requirements definition for the product. Anne thought this step would take approximately three months. Marketing had already done a lot of strategic work, but her project team needed to translate that work into specific product characteristics. She expected that those on the project could start developing the business plan in February, once work was already under way for the market study. She also expected to spend most of the first phase refining the business plan, which was the major deliverable of Phase 1.

Identifying and Deploying Lean Business Policies

Lean Business Policies express the views of the lean sponsor or champion of the Lean Performance project. Typically, this is the chairman or CEO of the business. Lean Business Policies define the lean business mission. Lean Business Policies drive the development of lean project strategies. Lean business policies are often expressed by executive management in business plans that are delivered to the business organizational level or in existing company policy communications vehicles such as business plans and strategic planning documents, including the previously mentioned Lean Vision Statement. The project sponsor champion should also incorporate the lean business policies developed during the Lean Performance Assessment. Figure 7.1 illustrates a sampling of Lean Business Policies. We will track the deployment and eventual project process team implementation of these Lean Business Policies throughout the project text that follows.

Business System Calculator

The business systems calculator is a spreadsheet program that can be downloaded from Instructions are contained in the program, under the first tab. As input, you will use values typically contained in the business plan. This includes project cost and duration, as well as the starting price and cost, and the price and cost erosion, of the project outcome. Input concerning the market is also required. This includes an estimate of the total market volume over the POL, the time the market for the outcome will begin, and estimates of your market share for entering the market at various times. The WACC is also input. Output includes the net present value for the entire venture as well as a graphical representation of the venture's contribution to shareholder value over the life of the project. Project decisions can then be evaluated by estimating the decision's impact on any of the input variables and then calculating the resulting effect on shareholder value.2

What Is Lean Commerce

Employed in management decision processes such as business planning and sales and operations planning (S&OP), integrated to central ERP system data. Lean Commerce practices synchronize the entire Virtual Lean Enterprise, creating significant benefit and competitive advantage for all virtual partners. The Lean Commerce model deployed through the Lean Performance methodology integrates lean process improvement with lean supply-chain integration, resulting in the emergence of the multi-enterprise Virtual Lean Enterprise. Business Plan Business Plan Business Plan

Perform Project Selection

The project selection process ensures that all projects are bona fide business efforts and that every project is selected and conducted to implement a business strategy or to support a business objective. A project selection decision has two important implications for the relevant organization. First, it indicates that a project business plan, sometimes called a business case, has been developed, reviewed, and approved to show an acceptable fit with strategic business interests, and to serve as a basis for conducting the project. Second, project selection indicates that an adequate number of qualified project resources have been allocated for assignment to the project. These two aspects of project selection remain prevalent factors for the ongoing project portfolio management effort. 1. Conduct project screening. This activity is conducted to provide an indication of whether or not initial project planning, particularly business plan development, should be pursued. 2. Develop project...

The Uncertainty of Scheduling the Future

Chance And Uncertainty Worksheets

Recognize the uncertainty principle at work (see Chapter 14). The planned schedule is just the team's best guess of the future. It does have some allowance for uncertainty management with time reserves built into it, just as management builds cost reserves into their business plans. But you and the team are not psychic and cannot predict the future with accuracy (if management or your customer can, then you and your project team can remove the uncertainty buffers and contingencies from your schedule, and management and the customer can absorb any overruns ). If they are better than most at predicting future events, then they should probably retire and just trade in the stock and commodity markets.

Allocating Resources Predictably

Once the portfolio is defined in advance and projects have business plans with granular data, it becomes possible to see much further ahead for required project resources. This can then enable bulk sourcing of resources that will be needed in large quantities across projects, or on a human capital level, and can enable training and staffing plans to be put in place so that the project needs can be met without costly and resource-intensive expediting procedures. The further ahead you can see, the further ahead you can plan, and the cost of surprises are minimized.

Denial Is Our Biggest Enemy

Evaluate the potential profitability of the new venture. As a normal part of the business plan procedure, three business cases were analyzed the most probable case, a potential upside case, and a potential downside case. This is all consistent with good business practice. But then, the general manager, when presenting the business plan to the board, said, Here is the most likely scenario, a potential upside and a potential downside. However, we can ignore the downside case because it will never happen.

Reference Documents

CRI's knowledge management system contains tens of thousands of reference documents, since everyone is allowed to post them. Each posting must be linked to at least one standard project step. In the business plan example, CRI has more than a hundred reference documents. Many of these are articles that previous teams found useful when they were formulating business plans. Some of these articles are copies of documents on the system, while others are links to articles on other internal or external web sites. CRI also includes miscellaneous documents such as memos and working notes as references. feedback and regularly conducts voice-of-the customer sessions. All of this valuable marketing information is organized into a marketing web site for internal use. The web site provides access to all the marketing information by guiding users through a marketing portal. The standard business plan step links developers directly to this marketing portal.

Integration issues

Integration at the highest level, business and strategic planning, involves the coordination of company and business planning with project selection and financial planning. This means that the beginning of project integration is making sure that the project itself is aligned with the company's strategy and plan for growth, whether written or is simply a shared vision of company leadership. Analysis of weaknesses in the strategic planning process, for instance, would be performed in the light of the company's past performance and market analysis. Integration of business plans with marketing plans means that a project is selected with a full view of how the project will serve the company in its growth objectives. From a personal standpoint, this means that the company leadership coordinates and communicates with program and project managers, and has access to information that facilitates project integration management.


There are many guidelines about what should be in a business plan. Each organisation will probably have something that it uses year after year. As a result, each example will vary in its ability to describe effectively how the company's targets can be met. Whatever the format of the business plan, a common starting point is needed. It should be possible to express the business plan as a series of statements that both summarise the content and help to identify projects. The following list, which took no more than an hour to compile, is a summary of a real organisation's wordy business plan. The company will This may seem a random set of statements drawn from a document. It may be true that the business plan lacks focus or may fail across a range of success criteria. So before identifying projects that can contribute to its success, the business plan should be balanced.

Figure b continued

Implement Centralized Integrated Data Support, Processing Monitoring the Business Plan Business Plan Performance Status Implement Centralized Integrated Data Support, Processing Monitoring the Business Plan Business Plan Performance Status Implement Centralized Integrated Data Support, Processing Monitoring the Business Plan Business Plan Performance Status

External Information

The Internet also contains a great deal of information on competitors that can be very useful to project teams. CRI provides links to the product information of its competitors in the business plan step, encouraging developers to access this information periodically as they prepare the business plan.

Financial Analyses

The organization will likely already have robust financial analysis models in place as a fundamental aspect of business management. A representative list of financial analysis models is contained in the discussion about project selection mechanisms, as presented previously in this chapter. Executives and senior managers need to identify the particular financial analysis models that can be applied to project business plan development. Financial analyses are then included in the project business plan to round out the complement of information needed to make project selection and continuation decisions.


Example, CRI's business plan document template includes text such as Price is expected to change by_percent In the business plan example, the business plan document is the primary template. It would typically contain the outline for a business plan as section and subsection headings. Each section would include boilerplate where helpful, as well as instructions and guidelines for that section, which would be deleted as the section is completed. Most companies will find it useful to create multiple templates for different types of projects needs. For example, CRI has five business plan templates that a project manager can select from, depending on the project.

Strategic Planning

The Eastern case (Chap. 10) deals with global strategic planning, integration of risk into the business planning process, and the articulation of the company's approach to implementing its strategic objectives. The integration message of this case is that integration starts very early in the business planning and portfolio development process and that projects that are generated out of an integrated process at the top tend to have higher probabilities of project success. This is because one of the key reasons for project failure has been the lack of top management support integration at the business plan level assures more visibility

Concept definition

Initially some kind of documented idea generation process produces a pool of concepts for consideration in developing the company's portfolio of potential new product projects. Resources are allocated to explore the concept as part of the funding of a portfolio of projects, along with ballpark deliverables and timelines. The concept is framed in the company's strategic and business plan and related to favorable and unfavorable developing market trends.

Step Libraries

Step libraries work in a similar way. When a step is selected from a step library to be included in a project plan, all of the knowledge and experience attached to that step is automatically transferred to the project. Figure 16-2 illustrates this for a business plan step. In most cases, the link to the document is transferred, rather than the actual document. So there is still just a single incidence of each document, but it is linked to many projects. If changes are made to the document, then all projects accessing it can be confident that they're getting the current version. The exception to this may be templates and models, which are intended to be modified as they're used by projects.

Cash Flow

As illustrated in Figure 10.1-1, this is a fairly complex system of variables and does not lend itself to a set of recipe answers on how to maximize shareholder value. Decision making within the project is based on a sound business case that justified the project in the first place. The case is constructed to make all assumptions explicit and to explore the dynamics of the relationship in the business system of the project. This is in stark contrast to the numbers game that is often played out using a business case purely for gaining project approval. You know it well What numbers do I have to fill in to get this project approved During the project, the business case is further researched, fleshed out, and turned into a detailed business plan so that the project team can continuously check assumptions about projected results with actual results. Decisions about duration, cost, and outcome are then made in relation to how they interact with each other and how this interaction affects...

And development

This stage involves setting up partnerships and team relationships in all areas necessary to achieve the business global objectives and to support candidate programs and projects. The composition of the team must be aligned with the business direction. Teams are composed of team members who possess the competencies and interests globally, across functions, suppliers, and customers that support the broad business plan. Teams are set up at each gateway level of the program, beginning with worldwide partnerships down to program and project teams. The stage is important because integration at every level requires commitments and trusting relationships between key company stakeholders.

A programme

In any portfolio there may or may not be technical, strategic or commercial dependencies between the projects - it has not been constructed with them in mind. Instead, the grouping of projects is characterised by their being funded from a common budget or being overseen by a defined part of the organisation. A programme, however, is a portfolio of technically, strategically and or commercially interlinked projects where the dependencies must be identified and managed if an objective in the business plan is to be met. Furthermore, the nature of programmes suggests that there will often be a degree of business-as-usual management required from within the programme to prepare the business for a new way of working.

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Case 2 COTS Software Selection for Information Technology Systems Case 3 Legacy Software Re-engineering Problems for Review Visit the Case Study Appendix C. Creating the Business Plan The Technology Business Plan as the Company's Meta-Plan What Is the Technology Business Plan Why Build a Technology Business Plan Technology Business Plan Contents Making the Business Case Cost Benefit Analysis in a Technology Business Plan Problems for Review Visit the Case Study Web Pages for Further Information Appendix D. Understanding Systems Engineering Where We Are in the Project Management Life Cycle Learning Objectives for Appendix D Classical Systems Engineering Model Reguirements Engineering Types of Product Systems Problems for Review Visit the Case Study References


Table 2.3 Grouping business plan statements Table 2.3 Grouping business plan statements This is a simple and early example of a business plan expressed as a Because the quadrants are linked by this logic, the list of statements must be checked for consistency. Engaging in fixed-price or shared-risk initiatives may not permit increased margins developing junior staff may be a challenge while using new and innovative technologies that may create redundancies. Some objectives may be beyond the organisation's control the most important clients may not buy the wider range of products. An organisation must ask itself Which would matter most client engagement or product leadership If the statements are inconsistent, so may be the business plan from which they were derived and the portfolio of projects that stem from it. Table 2.3 is not complete, however. There are no measures. If these statements are to be used to confirm the portfolio's contribution to the business plan, each must be...

Overall Scheduling

As discussed earlier in the chapter, you can gain some flexibility in determining the schedule by controlling the staffing level, but this flexibility is limited. Because of this possible flexibility, building strict guidelines for scheduling may not be desirable strict guidelines forfeit the advantage of the flexibility to be passed to the project or the customer. Furthermore, the project schedule is usually determined in the larger context of business plans, which impose some schedule requirements. Whenever possible, you should exploit your schedule flexibility to satisfy such requirements. One method is to use scheduling guidelines more for checking the feasibility of the schedule than for determining the schedule itself.


Lack of effective communications may be a major reason why R&D does not include functional managers in project planning, and why, once plans are established and approved, functional managers are not aware of the progress of a project. There is no doubt that functional managers need to be aware of potential and real changes in schedules, resources, and work scope that may affect their department. Without effective communications neither the project manager nor the functional manager knows what the other is doing, or what the current problems are. In fact, planning, coordination, and management cannot be performed effectively and efficiently without effective communications. However, communication on the horizontal or project level is not the only problem that the informal project management system has all communication with upper management is filtered through the director of R&D. This may be an effective route for upward communication, but in downward communication two problems are...

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To Build Your Business It Is Crucial That You Have The Correct Info And Tools And Learn How To Build A Correct Business Plan! This is one area you must pay attention to… There are many areas of a business plan that you may not know about but need to know about. For instance... you may have no idea about an executive summary.

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