Developing Your Institutional Plan

Joan GillmanDirector, Special Industry Programs Small Business Development Center

UW Madison School of Business608-262-9982

jgillman@wisc.edu

Small Business Answer Line

Statewide Help!

608-263-7680(800) 940-7232

Mon - Fri: 8:30 am - 4:30 pm

Planning

The secret of success is to be ready

for opportunity when it comes

Disraeli

Planning

Plans are nothing.Planning is everything!

Dwight D. Eisenhower

What is a business/institutional

plan?“The finest memory is not so firm as written

ink.” — Lao-Tse1.A short written document.2.A working model of your business.3.A process of learning more about your

business.4.A tool to communicate to staff and BOD.

EAB Institutional Plan The Mission/Vision The Market

– What is your business?– Who are your existing and/or potential customers and

what motivates them to enroll in your institution?– How do you let customers know you are in business?– Who are your competitors and how are you different

from them? The Management

– Who is in your management team and what each one’s strength?

– Who is on your advisory board?

EAB Institutional Plan Conduct a SWOT analysis (strengths-

weaknesses-opportunities-threats)– Write

• 3-5 goals from the SWOT analysis for strengths/weaknesses and how your institution will address them.

• 3-5 goals for opportunities-threats and how you will address them.

– Include a time line for completion and metrics for success -evaluation/measurement.

EAB Institutional Plan Future Think

– Describe your institution 5 years from now and how it will be positioned in the market place.

EAB Institutional Plan

The Institutional Plan should be roughly three (3) pages. Accredited schools should adapt their corporate/accreditation institutional plan to fit the above requirements and have the Institutional Plan focus on its Wisconsin operation and students.

Mission Statement Worksheet

Customers Products and/or

Services Markets Economic

Objectives

Beliefs, Values and Aspirations

Distinctive Competence Competitive Advantage Public Image Concerns for

Employees

Upstart’s definition evolves...

Upstart is a publishing company. Upstart publishes useful and applicable

business management books for small business owners.

Upstart profitably publishes useful and applicable how-to material for motivated small business owners, would-be owners, and organizations interested in making small business owners succeed.

UW-Madison SBDC Mission

To enhance the success of small business owners and managers in our three county service area of Dane, Sauk and Columbia counties and to encourage growth in our economy.

To be a valuable and innovative resource for business, recognized by the business and economic communities as a major contributor to the economic health of our service area.

To achieve our mission through practical, customer-focused management education, training, counseling and networking.

The Market

The number of people and their total spending (actual or potential) for your product/service within the geographic limits of your distribution ability.

The Market – What is your business?

What business are you in? Why will you succeed in this business? What is your experience in this

business? Why is your business profitable? What is happening in the industry?

Convince the reader (and yourself) that you have a solid knowledge of the business and industry.

What are you selling?

Product or service:Perfume

Features:ExpensiveAromaticFrench

Benefits:HopeStatusLove

Who are your existing and/or potential

Customers? Consumers Businesses Manufacturers Institutions Government

Market Analysis Find potential customers who

want/need your product. Identify customers who are ready to

buy. Let the customers know that you can

fill their need. Find the customers who will pay---you!

What motivates them to enroll? Your customer’s

point of view Benefits Features conveying

benefits Competitive

advantage of your products or service

Needs or desires they satisfy

Check insights with customers

“What’s in it for me?”

Product and/or Service What are you selling? What are the benefits of your products and

services? What benefits are you selling? What is special about your products and services? Which products are rising stars? Cash cows? In

decline or investments in owner’s ego? What’s different about your goods and services? What are your advantages over the competition? Why will people buy from you?

Features versus Benefits

Sample Features:Size

ShapeWeight

Made of cottonUsed by LauraAs seen on TV

Green

Sample benefits:Convenience

SafetyGuaranteed

Needs no replacementSurety

Sex appealBrings love, wealth

and happiness

BASICS

BASIC MOTIVES DON’T CHANGEThere are always the general wishes to

become an attractive person, to love and be loved, to be part of exciting groups, to be

viewed positively, to create a desirable home environment, to be a productive worker, to be

in the know.

BUT...The ways to satisfy these wishes change over time and differ among market segments

You have to know:

Who are the individuals in your target market?

What, when and why do they buy from you?

What benefits do you provide them?

Target Markets Geographic

Distance Time Traffic patterns Topography Social & cultural factors

Target Markets Consumer Demographics

Age Income Social Class Gender Employment Education Residence Family Status Race Religion

Target MarketsPsychographics

Values, Interests and Lifestyles Benefits Hobbies Reading Occasions Usage Rates Loyalty

Keys to Marketing Success

Good product or service Meeting a perceived need Enough potential buyers Advantageous timing Brand name awareness Differentiation Saleable at a profit Persuasive communication

How do they know about you?

Promotions Advertising

PublicityPublic relations

“Word of mouth”

Promotion The means by which a

customer obtains information to make a purchase decision about your product.

Promotion Examples

A web site Brochures Press releases Direct mail Seminars

Conference presentations

Trade show displays Radio/TV

appearances Ads in trade journals

Promotion

What is your advertising budget?

How do you promote your business?

Do your markets know what business you are in?

Competitors

Direct:1.2.3.4.5.

Indirect:1.2.3.4.5.

MarketingCompetition

Compare to your competition on: Quality and performance Warranty-guarantee Service Selection Convenience-availability Price

MarketingCompetition

Compare to your competition on: Quality and performance Warranty-guarantee Service Selection Convenience-availability Price

You can’t compete on all these areas and make a profit!!

Competitive Research

Advertising Yellow Pages Patronize Ask your customers Ask your suppliers Start a file for each competitor, clippings, notes,

copies of ads, filings, legal proceedings. Shop the competition.

The scouting reports. Strategic alliances.

The Price/Quality GridHigh Price

Low HighQuality Quality

Low Price

Management Functions

Planning Organizing Staffing Leading Communicating Controlling Innovating

Management

Who comprises the management team?

What are their qualifications?

Board of Directors Advisors,

consultants and others

What is a “SWOT” Analysis?

Internal:External:

StrengthsOpportunities

Weaknesses Threats

Industry Analysis

Major players Size of the market Environment

– Technological developments– Economic Developments– Regulatory Developments– Demographic Developments

Major trends

GoalsSpecific

Measurable

Achievable

Relevant & Reasonable

Timely

Future Think

What is your institution going to look like in 3-5 years.

How are you going to get there?

AAPPPPRROOVVEEDD SSCCHHOOOOLL IINNSSTTIITTUUTTIIOONNAALL PPLLAANN Wis. Stats. 38.50 EAB X.XXX (Rev. 11/08)

STATE OF WISCONSIN EDUCATIONAL APPROVAL BOARD

30 W. MIFFLIN STREET, 9TH FLOOR MADISON, WI 53703

(608) 266-1996

1. BACKGROUND AND OVERVIEW As the Educational Approval Board (EAB) moves from a compliance-based regulatory model to one that is also based on institutional effectiveness, the EAB is requiring schools to submit an institutional plan during the annual renewal process. Although similar to a strategic or business plan, the plan schools must submit will enable the EAB and school officials to discuss improving the school over time. Institutions that already have a strategic or business plan (e.g., schools that have corporate or accreditation plans) must adapt them to the following requirements and focus on Wisconsin operations and students. Although the EAB has elected not to prescribe a specific template that schools must use, institutional plans must include the five elements identified below and provide the information requested.

II. INSTITUTIONAL PLAN ELEMENTS 1. MISSION Describe your school’s mission and vision, which identifies the school’s purpose and its core values.

2. MARKET Discuss the nature of your school and the business in which it is engaged. Describe who your existing and/or potential customers are and what motivates them to enroll in your school. Explain how you let these customers know you are in business. Finally, identify who your competitors are and how you are different from them.

3. MANAGEMENT Describe your management team and how it functions to lead, administer and position the school. If your school has advisory boards, identify the types of individuals who serve on them.

4. SWOT ANALYSIS Based on a SWOT analysis identify the school’s strengths, weaknesses, opportunities and threats. Also, provide the following:

3 to 5 goals for strengths/weaknesses and how they will be addressed by your school. 3 to 5 goals for opportunities/threats and how they will be addressed by your school.

In addition, include a timeline for completing the goals identified and metrics (some type of evaluation or measurement) for their success.

5. FUTURE THINK Describe your school five (5) years from now and how it will be positioned in the market place.

Focus!

Focus!

Assignment

Finish the Business/Institutional Plan

BE SUCCESSFUL AND HAPPY, GO FORTH AND PROSPER