Where do we start indeed!

What I do with my corporate clients and NFP and government organisations that I work with is the following:

1. I secure clarity and agreement on the purpose of the corporation or organisation. If it's a for-profit organisation, then this comes from shareholders (refer: my book on the subject http://www.jacobyconsulting.com.au/books/business.htm). If it's an NFP, then it comes from its Constitution, Articles or other chartering document. If it's a government department or organisation, it will usually come from an Act of Parliament.

2. I then workshop the board and/or owners/shareholders to identify the outcome metrics associated with each of the organisation's objectives. This is stated in terms of $, %, # or some other quantifiable form.

3. The board or managing authority of the organisation then interprets those metrics in terms of the organisation's context, it's capabilities, opportunities, competitors, industry structure, status of the economy etc. The nuancing of the metrics then represent's the corporation or organisation's Statement of Purpose. In order words, it exist to deliver those outcomes.

We then start to drill these metrics down the organisation. The method is outlined at (http://www.jacobyconsulting.com.au/knowledge/planning_schematic.htm)

4. Once the metrics are understood, we then determine the market that will deliver those metrics. For example, some markets can only deliver an ROI of 10% while others can deliver 25%.

5. Once we have resolved the nature of our market, we then determine the products and services that need to be placed into that market in order to extract those outcomes (metrics).

6. Once we know what products and services we will use, we then need to determine the optimal manner in which those products and service will be delivered to market (channels); what level of product and service support is required; and how we will communicate and promote the products and services to the consumers / market.

7. Once these issues are resolved, and only then, can the organisation determine what sort of people it needs and what sort of systems (eg I.T., processes, procedures) it needs to enable all of the above to operate efficiently and effectively.

8. Only then can the organisation determine what management is required and what board skills are required. This is the organisation structure stage. Unfortunately, most companies mistakenly start here.

9. All of the above decisions, when accurately modelled, will deliver a set of outcomes. When these outcomes equal or exceed the Statement of Purpose, they can be finalised and formalised into a Business Plan.

This hierarchy of decision-making is really important. Making decisions out of their logical sequence commits the organisation to strategies and structures that are sometimes illogical and harmful to owner and corporate interests.

This process works for private, listed, NFP, government, large and small organisations.