Governance 2 – Getting Down to Business.

In the previous Governance post I talked about the basics required to establish a Trust or other Non-Profit. Things like Trust Deeds which contain the Organisation’s Rules and Legal Purpose, Mission Statement, Policies and Procedures.

In this post we move on to the Business aspect of the Organisation – where the first necessity is a Business Plan. We use a templates provided by MBIE on their website which contains everything an auditor or inspector from IRD, Investors or other stakeholders will want to see when assessing your credibility. It will also serve as a guide for your Governing Body, Management and Staff as they go about their duties.

This is another area in which many small non-profit organizations have room for improvement. Some have no Business Plan at all – others have a “Business Plan” consisting of only five or six pages and is little more than a setting out of broad goals.

The MBIE Business Plan consists of around 30 pages. Rather than work from start to finish in completing you Business Plan, I find it helpful to set the blank pages out on a wall – much like a “mood board”. Each page is headed with its name as per the “Table of Contents” and ideas which come at random can be noted or attached using “Post It” messages as and when they come.

The Business Plan should contain the following sections which should all be noted in the Table of Contents:

  1. The Front Page of Cover Page. This should contain graphics or photos as well as the title “Business Plan”, the name of the Organisation, the date of publication and the author. Write or sketch ideas on this sheet and attach clippings of suggested photos and fonts etc.
  2. The Contents Page and page numbers. The Contents are the Sections we are listing here. Leave the page numbers until the Plan is finalized as some Sections might take more than one page.
  3. The Executive Summary. Do this last – it is a Summary of the Business Plan and tells the reader what is inside. It also explains the purpose of the Document and the uses it will have in the various stages of Business Development.
  4. Business Details. Legal name, trading name, date established, structure (partnership, Company, Non-Profit), NZ Business Number if Registered, Contact Details, Social Media links.
  5. The Purpose or Nature of the business. What you will do. A brief explanation of how you will do it (your full Strategy will be more set out later). Who is your product or service aimed at? Is anyone else doing it and how is your business better or different?
  6. Your Business History. Is it a new business or has it evolved from a previous enterprise. Give a timeline or provide highlights if this is the case. What was the inspiration if a new enterprise.
  7. Your Situation at present. Do you have locations, customers, employees, assets, intellectual property, resources. Do you have funds – if so provide balances and details. Provide a short overview narrative.
  8. Your Mission or Purpose as per your Trust Deeds but more fully explained. Your Broad or Long- Term Goals spelt out as Outcomes. Your SMART, short-term goals (Specific, Measurable, Achievable, Realistic & Time-bound) set out in relation to each Broad Goal – each with target dates and accountabilities.
  9. Your Strategy in relation to each of your Broad Goals including Key Steps and actions. Your Strategy required to achieve your SMART goals. You might want to set out these steps and completion dates using a Project Management progress chart.
  10. Your Existing Team. Provide Organisational Chart. Include brief bios explaining experience and qualifications. Provide proposed Job titles and responsibilities. Provide Job Descriptions if available. Provide Job Descriptions for Roles not yet filled.
  11. Your planned team. Relate to Organisational Chart again – list all Roles planned showing accountabilities and relationships.
  12. Your consultants, advisers, mentors and other external advisers. Give planned Role Titles and responsibilities.
  13. Your Employment related Policies and Procedures ie Engagement, Retention, Induction, Training etc.
  14. Market Research – demonstrate knowledge of the relative markets and trends.
  15. Identify Market Gaps or Opportunities. Where are uour opportunities?.
  16. Market Structure and Positioning. Where do you sit or where are you aiming to be.?
  17. Target Market – size, demographics etc.
  18. Marketing Analysis – prospective customer base – what are their current mindsets and behaviors?
  19. Competitor Analysis – name each competitor and provide SWOT for each. How will your product or service differ?
  20. Complete SWOT in relation to your internal processes, culture, and relationships.
  21. Complete SWOT in relation to external forces ie regulatory limitations, environmental considerations, community views etc.
  22. Marketing Plan and Budget. Attach.
  23. Launch or Relaunch Strategy and budget. Attach.
  24. Ongoing marketing strategy and budget. Attach.
  25. List of Assets including Intellectual Property.
  26. Financial Planning – years 1,2 and 3.
  27. Break-even forecast and date
  28. Cash flow and Balance Sheet forecasts first 5 years
  29. Business Continuity Planning. List potential risks and challenges and how you will overcome these.
  30. Legal and Regulatory Planning. List the compliances you will need to address.

This is a broad outline of a full Business Plan. If you are just starting out you might not need all of them at once. List your priorities and complete the Plan over time. The fact that you have a concrete plan for you Business Plan will, in itself, give you brownie points. Good Luck!

Governance – who’s minding the minders?

After more than 20 years working with Non-Profit Organizations- in the Arts, Community and Social Services industries – this is a question that comes to mind time and time again.

Sad to say, there are frequent failures in almost all of the important areas for which Governance is responsible. Here are three of the most basic and the most important.

1. Lack of Purpose. One of the first obligations of a Trust or Society is to state, in its founding documents, the legal purpose of the Organisation. But it’s not enough to have this tucked away in the Trust Deeds where nobody will ever see it. It needs to be summed up in a Mission Statement which will serve as a motivation to staff. It should also be stated as a Pledge to the customer.

2. Lack of focus on the Mission Statement. There’s no point having one if nobody knows what it is. It should be known to everyone in the Organisation. It should be written – on stationery, displayed on walls. One of the prime indicators of a loyal, contented and consolidated workforce is the sense of working together for a clearly stated common cause.

Stated as a Pledge, of course, it should be known to the customer and the community or demographic in which potential customers live. It should appear on letterheads, websites, office walls etc. and be foremost in mind in everything that everyone in the organization does.

3. Lack of a comprehensive and accessible Policies and Procedures Manual. This is yet another prerequisite for excellence in staff performance and is necessary to the sense of competency and job security which fosters loyalty and ambassadorship.

There should be Policies covering legal compliances, financial management, reputation management, employment, customer services, product quality, accountabilities, ethics, stakeholder relationships, internal communications and relationships complaints procedures, and environmental policies for a start.

Each Policy statement should be underwritten by a set of procedures or practices which staff can refer to when carrying out their work. These should be reviewed at least annually and procedural reviews should involve the input of those who are actually carrying out the work.

These are the very basics that establish and continue to inform the “What you are doing”, (your purpose), “Why you are doing it” (your mission), “How ethically you are doing it” (your standards, or policies, by which you will do it), and the “How you are doing it” (ie the procedures and actions which will result in the success of your mission).

Only when these basics are in place can you move forward.

The inside story..keeping it all together

If there’s one area of communications which has had to make a particular effort to remain strong during this period of lockdowns and enforced isolations it is that of internal communications.

Internal relationships are the glue that holds an organisation together. They are the strength of an organisation’s culture and the building blocks of its reputation. Members with a strong sense of belonging and involvement in an organisation will sing its praises far and wide while those who feel disconnected, disenfrachised or dis-satisfied will be just as loud in expounding its every shortcoming.

Many good organisational systems and practices have been developed over the years to ensure that relationships and reputations remain strong as motivating and binding forces. Fast forward to the current environment, however, with staff working remotely and choosing to minimise face to face interation, and many organisations find themsleves struggling to maintain relationships at a time when they are more important than ever. Technology has just not proven adequate as a replacement for all of our face to face meetings.

Perhaps the most important communication channel that has been lost is the “grapevine” – along with the lunchroom, restroom or “water cooler conversations” which once supported it. It is at the very time that informal peer support is most needed that it has been lost – along with the ability to “stay up with the goss” which is essential to maintaining a strong sense of “belonging”.

Now that things are finally getting back to normal, we need to re-affirm our internal relationships and one of the best tools for this is the good old office picnic.

Held, in accordance with tradition, at a location of natural beauty, the picnic provides opportunities for as much closeness or distancing as one feels comfortable with while still fostering the “group” atmosphere.

Some can gather together around picnic table, those who feel more comfortable doing so can keep themsleves a little distant – though still within earshot of the conversation and a part of the group. Some may pair up and wander away for a private “tete a tete” – others might wander off alone to gather their thoughts – the view providing a perfect excuse to do so. Someone is bound to bring out a ball to kick around – just the thing to unwind and recharge the batteries.

Food is expected at a picnic but to eliminate any stress regarding sharing or comparing it could be “bring your own pizza” or something similar. No need for formal speeches if it doesn’t feel right. Mother nature will say all that needs to be said.

An Ounce of Prevention….

The “communications” role  isn’t just about resolving problems – it’s about ensuring, as far as possible, that they don’t occur in the first place.

Employment is a prime example of where the prevention of issues is easier than the cure. While the resolution can be complicated and have financial repercussions, prevention could usually have been effected simply by ensuring that job descriptions, employment agreements, codes of conduct, communications processes, complaints procedures and performance review processes are all documented and form part of employment policy and procedure.

When we develop policy and procedure documentation our aim is that employees know exactly what is expected of them and know how to communicate any issues that might be impacting on their ability to perform. The benefits go further than the employment relationship. Knowing that they will be listened to, that their feedback will be valued and their concerns taken seriously builds a sense of “belonging” and loyalty which can turn employees into an organisation’s greatest ambassadors.

 

 

 

 

 

On the hospitality front…

The 10 things most likely to put off your customers

A lot of our work involves the hospitality sector and so eating out is always an excercise in market research. “It’s a tough job but somebody has to do it”,  as they say.

Hospitality can be tough these days. Drinking laws and the economy have conspired to do away with the “office lunch” and the “Friday night drinks”. At the same time there is a new generation of “money rich but time poor” who may make up in revenue for the lost business but who demand far higher standards in terms of food, drinks, environment and service than would have been the norm a couple of decades ago. This is where many start up businesses are struggling.

We talked to a range of contacts and came up with the ten most common reasons customers won’t return to a cafe or restaurant:

1. A lukewarm reception.

Customers nowadays expect to be welcomed in the same way you would invite someone to your house. Greet them with a smile and make them feel special. If they feel at home – that this is “their place” – they’ll come back again.

2. Uncomfortable seating.

This might be overcrowding, woven wicker chairs that snag stockings or clothing, wobbly tables, tables too high to eat off easily etc. Make sure that they’re comfortable and they won’t want to leave – and will be sure to return.

3. Unserviced restrooms.

It only takes one inconsiderate customer a couple of minutes to create a bad impression of your venue. Check the restrooms often. Are they clean? Is there plenty of paper? And before each shift – do the toilets flush? Are the taps and handryers working? Is there soap in the dispenser? These plus the addition of extra little touches – ie flowers – will ensure that they feel special and want to come back.

4. Indifferent or unhelpful service.

A lot of people have food intolerances nowadays or are on limited diets. Facing a list of questions from customers can be frustrating for staff – especially if it’s busy. Take some time to ensure that your staff know the menu – what’s in the food, what is and isn’t organic or GM free. If there’s a lot to remember give them a written sheet to take home or to look at during quiet periods. Have as much information as possible on the menu so that customers don’t have to ask and staff don’t have to remember all the answers.

5. Poor selection of non-alcoholic drinks.

There are still places that only offer a choice of orange juice or “splits” for the person who is “designated driver” just doesn’t want a “drink”. A good profit can be made by adding fruit cocktails – ie a pina colada without the rum – or healthy alternatives like spirulina, egg nog, banana smoothies or liquefied vege drinks to the menu. Someone who is compelled to stick to orange juice or lemonade througout a special meal might not return.

6. Lack of healthy food options.

If everything on the menu comes out of the deep fryer or is served between great slabs of bread or bun there are many who would prefer not to eat at all and will not come back. Have at least some menu items that are low on carbs and fat and make sure there are vegetarian and vegan protein options.

7. Impossible plating

It is currently fashionable to be creative when it comes to receptacles on which to plate food and that can indeed add to the visual appeal of a dish. In some cases, unfortunately, the result is that the actual eating of said food is rendered all but impossible. Mini breadboards the same size as the food so that most of the food ends up on the table during the process of eating. Desserts served in drinking glasses with openings too small for the dessertspoon they are served with. These are just two recent examples we have come across.  Before approving a dish for the menu make sure that staff try it for themselves – eating it just as it is served to customers.

8. Failure to cater for solo customers.

A significant proportion of diners nowadays are dining alone. These are often business people who will recommend an establishment to others if they are well catered for. Have some “tables for two” – these will make couples as well as the solo diner feel more at home than a bigger table. Have newspapers and magazines available.

9. Main meals of different sizes

Something else we have experienced recently. Everybody in our group ordered a different item from the menu. Three of us received a nice big plateful of food but one of the group – the biggest and hugriest – received a much smaller portion and, quite understandably, felt ripped off. Every meal should look about the same size. A half portion option at half price, however, would be appreciated by many we spoke to.

10. Bad first impressions

Our final reason that clients won’t come back is that they were put off  before they even came in the door. A big no-no is to locate the “smoking area” outside the front door so that would-be clients have to “walk the gauntlet” to get to the door. Dirty windows, a run-down exterior, rubbish strewn on the pavement outside, clumsy handwritten signage – these will all deter customers.

Make sure you take the time to look after your “front door”. Would you want to enter..?

 

 

 

 

 

 

 

 

Internal Communications Audit – formulating a questionnaire!

Internal Communications Audit – the sort of thing some might use a Template for! Just fill in the gaps – and we all do that to some extent. After all – there are some questions you’re going to have to ask everybody.

We decided, though, that it was time for a fresh look so, for our latest project, we started from scratch. Mega brainstorming session – what should we ask in our questionnaire to our client’s staff? What are the questions we want answered?

We got lots of suggestions! And most of them already on our current generic “ask” list in one form or another – a good reaffirmation of the existing framework!

And now – rather than “lose” the list – and to save you a little brainstorming time next time you take a fresh look at the state of your internal communications, or your internal communications questions – here they are (in no particular order although we’ve deleted some that were duplicated):

  • What is the information you require to do your job? What is the information you require to feel an integral part of the company?
  • What is the source of the information you require? What are the channels through which you receive this information? The channels you use to send information?
  • Does the information you require flow upward from the “shop floor”?  Does it come downward from management? Does travel horizontally from another department ?
  • Through what channels does the information flow?  Do you consider these channels effective in regards to this information? Easy to use?
  • Is there anything you can think of that would improve the flow of communications in regards to each channel?
  • How do you rate each channel in regards to the type of information you need. And in regards to each source of information?
  • How much information do you receive from each source? Not enough? Just enough? Plenty? Too much ie information overload?
  • What sort of information is communicated ie job duties? Logistics? Procedures?
  • What channels do you consider effective? Ineffective? How could they be improved?
  • Did you understand all communications? What additional communications could help you function in your job?What do others need from you?
  • How do you know your communications have been received? and understood? How do you know they’ve been received by the right people?
  • What barriers exist in regards to the use of each channel?
  • What external barriers can you identify ie language? Noise? Relationships? Communication skills?
  • What training needs can you identify?

Hope this saves some time – and maybe opens up new questions?

Communication starts here!

One of the most important first steps in any communications plan is the situation analysis – ie what is the current situation? What is client/customer/stakeholder behaviour, or belief, or thinking, that we wish to change? Why do they act, feel, or think that way? Who are these people? Etc etc.

Too often, however, these steps are barely touched on and we get a campaign that is full of enthusiasm for a perceived end result but is a complete waste of time as it is based on an incorrect precept. Take, for example, a Fire Service campaign to have working fire alarms in homes.

“Why risk your family for the sake of the price of a new battery”, or something along those lines, the slogan goes. But is there reliable research to show that it is the price of a battery which is the issue? Perhaps people just don’t have a ladder with which to reach this darn thing which apparently needs to be located way up on the ceiling! If one has no other use for a ladder then it’s more than the price of a battery that’s involved! Where would one keep a ladder if one lives in an apartment? If it turns out that this is the reason that people aren’t replacing their batteries the campaign has totally missed the mark by suggesting that people are allowing the $5 cost of a new battery stand in the way of their families’ safety.

The moral is – do your groundwork! Just like building a house – if it’s got solid foundations it’s got a much better chance of standing up!